The Sun.
London, England, 1825-07-27 00:00:00

[BRITISH ritEss.l

It is known that several of the Governments
of Europe at this time are meditating the reduction
of the charge of their public debts. As it has
been ascertained in the case of France, by far
the wealthiest and most prosperous State on the
Continent, that the stockholders will not volun-
tary abridge their income, it will be necessary
for these Governments to apply to the British
capitalist for his aid, in order that they may pay
off their present creditors, by a loan at a lower
rate of interest. The bargain may, perhaps, not
be concluded with an English house, but with Eng-
lish money undoubtedly the transaction must be
completed. In effect, therefore, the application
will be made to the British capitalist. Ile alone
can furnish the requisite means. As a great
amount of capital will be employed in these un-
dertakings, it is of some importance to consider the
individual advantages and general consequences of
this mode of investing capital. We have no hesi-
tation in affirming at once, that these loans to the
Powers of Europe are in every point of view
much less safe and beneficial than those made to
the new States of America. In the first place,
the old Governments of the Continent of Europe
are mostly burdened with excessive debts, which
they can never hope by fair means to liquidate.
All that they aim at doing is to pay the annual
charge in the shape of interest, and this ith dif-
ficulty they accomplish, in many instances, by
fresh additions to the capital. In case of war,
an event probably very remote, but still always
within the limits of possibility, no interest
could be received, and the principal could be
sold only at a ruinous depression. The new
States of America have vast and constantly
increasing resources, while their debts are very
trifling. They will, in a few years, be able to
reimburse their creditors to the last sixpence, and
they have manifested a deep sense of public mo-
rality and good faith in all their pecuniary trans-
actions. The honourable conduct of the Colom-
bian Government has repeatedly been panegy-
rized, but never more than it merited. The pro-
ceedings of the Mexican Government are not less
worthy of encomium. Such was their idea of the
sanctity of the public name, that they undertook
to repay a large amount of money deposited by
individuals in the Cnnsnlado, a sort of bank, ma-
naged by the Vice-regal Government, and from
thence fraudulently withdrawn by the Spanish au-
thorities. The present Government has also pledged
itself to repay another large sum belonging, to in-
dividuals, which was seized by 'turbid:during
his short and violent reign. The probability of
war with any of these new States is infinitely
more slight than with the powers of Europe. A
thousand circumstances may bring US into collision
with the latter, which can never occur in our in-
terconrse with the former. All the interests of
the American States must for a long succession of
years incline them to desire the friendship and
support of Great Britain. But if war should
take place the creditors of the American States
are not exposed to the same hazard and incon-
veniences that must attach to the bondholders
of the European Governments. It is expressly
provided in the conditions of the American
loans that the interest shall be paid during war
as regularly as during peace, and there is no rea-
son to dread that this or any other stipulation will
he violated by these States, in which public credit
reposes upon the secure foundation of the repre-
sentative system. Despots may trifle at will with
their obligations ; but the Legislative Assemblies
of the new States of America understand too well
the importance of maintaining their faith invio-
late. They feel the benefits of foreign capital
flowing into their countries, and they know, by
the example of Spain, the panishment that would
follow any act of political or financial dishonesty.