The Sun.
London, England, 1831-06-09 00:00:00

THE SPANISH DEBT.

(From the Morning Herald.)
The following observations and facts relative
to the Spanish debt are from the pen of a Mem-
ber of the Cortes of 1822. They appear to us
to-possess a good deal of interest, and to be
well worth the consideration of the holders of
Spanish Bonds. We shall probably take occa-
sion shortly to make a few remarks upon our
correspondent's article, but at present we submit
it to our readers without any further observation :
The question of Spanish Bonds being a matter of
deep interest in this country, information concerning
those securities, and the means of having them duly
paid, furnish the best materials by which to judge,
admit, or refuse any proposal that may be offered to
the holders by way of composition. The writer,
therefore, avoiding comments, will refer the public
to the account herewith annexed, which, if carefully
examined and compared, will lead to proper resolu-
tions. As far as !he memory can help, without any
documents to consult, the Spanish debt began to he
an object of interest in the reign of Charles the
Third; and although, at that time, every b,a•►ch of
the Administration was considered to be in a
prosperous state, yet enlightened Ministers and
Counsellors were calling for a Reform ; suggesting
various meliorations, of which some were adopted,
but without the least hlteration of the economical
principles of the Spanish policy. The succeeding
profligate and despotic Governments, guided by their
own uncontrolled will, and free from the opposition
of a liberal Press, instead of healing the national
calamity by economy and retrenchment, increased
the debt, supposing it to be necessary not only to
employ an excess of capital imported in specie from
America, but likewise to check the natural progress
towards a rational liberty, which could not advance,
binding the middle class to keep peace for the sake
of their own interest. The Spanish debt in 1820
was estimated as follows :

Philip the Fifth's Floating Debt Rs. 98,2!6,000
Turos, bearing 2y, a 4 per cent., the greatest part
held by the Nobility, Convents, Hospitals, and
Municipal Corporations 1,260,565,000
Deficit in the Revenue, or Floating Debt, including
Treasury Bills unpaid 2 760,000,000
Forced Loans, private property taken for Govern-
ment's use, and other contingencies 800,000,000
Vales Reales, bearing 4 per cent. interest 1,500,000,000
Messrs. Hope and Co., of Amsterdam, loan at 5 per
cent. and interest due 192,000,000
Liquidation of the Peninsul .r War 600,000,000
Ditto from 1814 to 1820 400,000,000

Total, previously to the Proclamation of the Consti-
tution, in 1820 7,610,781,000
Debt circulating in foreign countries, sanctioned by
the Cortes :
Messrs. Lafitte and Co.'s loan, bearing 5 per cent 300,000,000
National loan, ditto
Messrs. Ardoin and Co.'s Conversion, or Inscriptions
on the Great Book, at 5 per cent. 1 600,000,000
British Claims, at 5 per cent. 40,000,( 00

Total estimate ofthe Spanish Debt, interest excluded 9,590,781,000
'lids statement shows, Ist, that the Spanish debt,
excepting Messrs. Hope and Co.'s loan, was not in
ciiculation in fort ign countries till 1821.
2. That no notice is taken of Mr. Guebard's
Royal Loan, Rentes Perpetuelles, and French.
claims, the writer having no direct information as
regards the new debt.
3. That 4,102,000,000 are due in certificates
without interest, and that Messrs. Lafitte, Hope,
and the National Loans, were inscribed in the great
book by Messrs. Ardoin and Co.'s conversion—an
operation most likely intended now to have it re-
vived, and of which the public is to be cautious,
not losing sight of the loan of 140 millions con-
tracted under Vallejo's Administration in 1821,
carried by Sierra Pambley in 1822.
Since then the inscriptions and great book were
introduced in transactions of the Spanish Treasury
both began by a secret agreement, free from compe-
tition, and taking advantage of the most painful
circumstances. The principal points of this financial
operation were as follows
Ist. The privilege of inscribing in the great book
at five per cent. interest, the full amount of the
debt of Holland, or Messrs. Hope and Co.'s Loan,
including the unpaid dividends.
2d. To admit, on the same principle, Messrs. La-
fate's and National Loans, and the Lottery Tickets
of the former.
3d. To establish the Great Book and a Sinking
Fund.

4th. To advance to the contractors a capital
of 260,000,000 in Cortes Bonds, or 13 millions of
Renter, payments to be made by instalments.
stb. The last and most revolting condition, to
acknowledge, on the loan of 140 millions, as well as
in the agreed conversion of other securities, an in-
terest of 10 per cent. Fearing the remarks for
such unusual stipulation on one side, and Ministers
being pressed by another, they admitted the new
condition of giving two capitals for one, and thus,
reducing the interest to 5 per cent., increased the
rmer in the same ratio. It is surprising how the
Ministers could assent to those terms; and how can
it be supposed that no injury was done to the
Spanish Treasury ?
However, this plan was the source of the Spanish
Cortes Bonds of 1821, issued in payment of other
securities, and of 140 millions to be received in
cash. Those questions were warmly debated in the
Cortes, who considered it their duty to keep good
faith with the publ'c, and do justice to the bona Ale
holders. According to this principle, the debt was
sealed with the legitimacy of their acknowledgment
and approbation, leaving the Ministers' conduct sub..
ject to the responsibility which a legal accusation
could claim against them.
A similar plan, modified with a reduction of in-
terest, may be now in contemplation, and perhaps
the scheme has been already proposed, as the most
secure way to borrow money under the present cir-
cumstances. It is true that a reasonable consolida-
tion may restore the Spanish credit ; and such plan
was even suggested in October, 1822, having no
doubt of the possibility of redeeming the debt; and
further, in the supposition that a liberal and power-
ful Administration should be able to put some order
to the finances of the State, enforce the payment of
taxes, and recal the wrong policy of prohibitions,
opening the doors of plenty, and distributing the pro-
ducts of a rich soil in exchange for every kind of
commodity and comfort. To confirm this view and
moral possibility the writer begs to crave attention
to the following particulars :
Credits and property assigned by the Cortes to
pay the Spanish debt :
Uncultivated Lands belonging to the Crown Rs. 1,000,000,000
496 millions real Property, sold by public auction,
agreeably to the decrees of the Cortes, 1,388,000,000
567 millionsremaining Property, supposed to be sold
on the same proportion 1,617,000,00°
Property not incorporated, estimated in cash ... 8(X),000,000
Forfeited certificates, and other contingencies 760,000,100
Floating debt, supposed cancelled 600,000,000
Vales Rea'es ditto
Messrs. Hope's Loan, paid in inscriptions 140,030,000,,,„
Military liquidation of the Peninsular War . 400,000,0uu
Messrs. Latitte's and National Loan, paid in inscrip-
tions
Capital of Inscriptions, in hands of sundry Contractors 4240
00,01T0:0°1
0
Ditto French Funds of 1814
Almaden Mine of Quicksilver
Hellin ditto of 1 in
Ditto Rio Tinto of Copper 29 000,000
Ditto, sundries of Lead in the mountain of Gador 214,000,1,1,
Royal manufactures and Buildings 6o,ooo,uvu
The Lake of Albufera 40,000,e00
Sequestered States of the Prince de la Paz
The Revenue of one of the Dignitaries of each Ca-
thedral, granted by the Pope, representing, at
three per cad
Abatement on English claims
1440r0
0000

Total of the real property Rs. 8,539,80°0°
Balance to cover 20s. in a pound, considering cash
the incorporated property 1 0;;0,981,000
9,590,781,000
Producing twenty-two millions of rent, inde•
pendent of taxes, and excluding the property belong:7
ing to the Clergy.
The writer, confining his remarks to. this balance,
shall leave the comments to the parties interested in
the matter.