The Sun.
London, England, 1841-02-12 00:00:00

MONEY MARKET and CITY NEWS

(THURSDAY EVENING.)
TIME S.—The impression wearing off of warlike ap-
pearances, the Consol-market assumed buoyancy, which
was increasing in consequence of speculative purchas -a,
when a check was given by the Government broker, who,
taking advantage of the temporary briskness, effected
another of his operations in a sale of money stock to the
extent of about 30,0001.
It appears by some late returns of colonial produce that
in February, 1839, the stock of West India sugar in the
port of London wns 20,610 hogsheads, 2,701 tierces,
1,540 barrels: in February, 1840, it was 22,234 hogs-
heads, 2 454 tierces, 965 barrels, while in the present
month it is only 9,600 hogsheads, 775 tierces, 1,308 bar-
rels. This immense difference can hardly be accounted
for, unless by the supposition that the West Indians arc
directing their principal efforts and using a great part of
their produce for the manufacture of rum, finding that arti-
cle the most profitable while they are in full enjoyment
of the monopoly, and that therefore they send less sugar
to the market.

The measures proposed by the Commissioners on the
French Customs' law for regulating the importation of
Indian shawls seem to have excited great indignation
among the French merchants The proposition is to
prohibit their transit through the country, to subject
them to a stamp, and to authorize search and seizure in
the interior, which would involve a right to enter private
dwellings. These measures ere owing, it is said by the
French journals, to the makers of French shawls, and at
the same time a question is raised, as to whether they
have acted judiciously in enforcing measures so rigorous.
Though the French manufacture is an object of the greet-
esas it does 65000 worhmen, and
producing
the value of 20,000,000 per
t interest,
articlesoccu occupying
annum, and though thin branch of industry is not pros.
F
Frees at present, it is doubted whether the Indian
shawls are the cause of the decline, since 3,250,000 of
French shawls are fabricated annually, while the number of
Indian shawls imported does not exceed 1,200 or 1,500.
If fear is only entertained for the French cashmeres, it is
remarked that in this case it loses much of its generality,
while the manufacture of this particular article suffers
much more by imitations made with an inferior material
and the ordinary changes of fashion. However, with
respect to the prohibition of transit, the journalists,
that otherwise oppose the prohibitive measures, admit
the prevalence of smuggling, now that long cash-
meres are subject to a duty of 150 f., and sque:e
ones to 80f., it having been calculated that
in 1839, of 2,353 Indian shawls that entered the
warehouses only 209 paid duty. The merchants carry on
their contraband trade by choosing the shawls in the
warehouse, and then sending them to the frontier, whence
they are again introduced into France surreptitiously. A
lowering of the duty to prevent smuggling would, it is
considered, be found impossible, on account of the indigna-
tion it would excite among the French manufacturers, and
therefore it is proposed that the transit through France be
prohibited, which would annihilate the contraband prac-
tice. To this part of the proposed measure it does not
seem that any objection is made, but the right of search is
considered an unnecessary inquisition.

CHRONICLE.—We understand that the Committee
of Spanish Bondholders, at their meeting held to day,
which was very fully attended, approved of the principle
of capitalising the Coupons, as contained in the recent
financial decrees issued by the Spanish Regency, and that
they also expressed satisfaction with the exertions made
by M. Gamboa to restore the credit of his country. Tho
Committee at the same time agreed upon a memorial to
the Spanish Minister of Finance, to be transmitted through
Lord Palmerston and General Alava, suggesting the pro-
priety of making the interest on the Coupons 5
per cent.
instead of 3 per cent. ; and of the adoption of ulterior
measures to secure the payment of the monthly bank depo-
sits. The Committee could not with propriety, perhaps,
have acquiesced at once in so low a rate of interest as 3
per cent. without having drawn the attention of
the Spanish Government to the subject, and calling
upon them to come forward with better terms of
settlement. We can have no great difference of
opinion with them on that point, as our information
at first led us to believe and to state to our readers
that the rate of interest, in all probability, would be three
per cent., until the Coupons were cancelled by the sale of
Church properties. Tire memorial also suggested the
propriety of some alteration in the mode of applying the
proceeds of the sales of the Church properties ; and it was
stated, sse believe, by a gentleman present at the meeting,
that the Spanish Government contemplated the appoint-
ment of a commission, consisting partly of Englishmen, to
whom the whole of the secular Church properties should
be assigned, in order to secure the appropriation of the
proceeds fur behoof of the foreign creditors. The result
of the meeting appears to be so far satisfactory, and
if tho Committee can get a higher rate of interest for
their constituents, so much the better. It is well for the
bondholders, in the meantime, that they have admitted the
fairness of the principle of settlement in the decrees, and
abstained from all doubts as to the honest intentions and
means of fulfilment on the part of the debtors. The
points left open arc matters of detail, and if the steps
adopted in those respects do no good, they seem at all
events to be innocuous, and cannot do any harm.
It may be useful to remark, that by the convention of
commerce entered into by her Majesty and his Highness
the Imauni of Muscat, signed at Zanzcbar on the 31st of
May, 1839, and lately presented to both Houses of Parlia-
ment, by command of her Majesty, the (rude between the
dominions of her Majesty and those of his Highness the
Sultaun of Muscat is declared to be perfectly free, subject
only to a duty not exceeding & per cent., to be levied at
the place of entry in the dominions of his Highness, on
any goods the growth, produce, or manufacture of the do-
rainions of her Majesty, imported in British vessels, in full
of every charge upon the vessels, or upon the goods so im-
ported or exported, and no additional duty to be levied
upon the goods when transported from one place to another
within the dominion of his Highness. British vessels may
enter the ports of his Highness to refit or for refreshments,
without being subject to any charge. The right of ap-
pointing Consuls is reciprocally ackeowledgod, when re-
quired by the interests of commerce; and the suhjacts of
both countries are mutually declared to be entitled to re-
side in, trade with, and pass with their merchandise through
the territories of the two countries, and to enjoy all the
privileges and advantages, with respect to commerce or
otherwise, which are or may be accorded therein to the
citizens of the most favoured nations.

POST.—The funds have partially recovered from the
extreme depression to which they were subject yesterday,
in consequence of the gloomy anticipations indu►ged in
by many of the speculators, regarding the issue of the
M'Leod case. Acting upon the opinions of others, to a
certain extent, some of the number who had been operat-
ing for the fall, have, as we understand, brought back
their accounts, and hence the rally to which we have al-
luded.
The Money Market was much less practicable again
to-day. It is, indeed, some time since anything like the
same difficulty was experienced in procuring the necessary
accommodation. This, it is considered, may have arisen
in a measure from political causes, the existence of any
dispute of a nature that may possibly result in hostilities
being always found to have the effect of rendering capi-
talists thrifty in their advances ; but the scarcity is quite
as likely to have been produced mainly by the placing out,
for permanent objects, an excessive proportion of the
sums with which the market was glutted only a fair
weeks since.

With reference to the remarks made by us in our City
article of yesterday, on the subject of the arrest and deten-

on of Mr. INl'Leod by the State authorities of Nov
York, and the serious consequences that may by possi-
bility spring out of that affiir, we think it proper to throw
out the hint, for the consideration of our readers, as one
which may tend in some degree to allay the apprehensien
that prevails upon the question, that the litigious spirit
manifested by the Washington Government may very pro-
bably have its origin in the fact that the present men arc oil
the eve of being turned out of office. The political views
of the two great parties in America are so diametrically op-
posite, that the bitterest feelings have notoriously been en-
gendered in the minds of one of them by the adverse issue
of the late election for the Presidentship ; and the idea
is, both in the United States and here, that the die.
comliced Ministry are determined that, as they are to be
left to the enjoyment of tho emoluments and patronage
no longer, they will, at all events, so manage matters
for their successors, as that they shall find themselves
as little at their ease as possible. If such be the
truth the expedient of implicating them in a quarrel with
this country is, it will be admitted, one that is admirably
calculated to answer the purpose. It remains to be seen,
however, whether the intended legacy will be accepted or
not. Mr. Forsyth, we are reminded, has affirmed that the
trial of Mr. M'Leod conies exclusively within the province
of the State of New Yozlz, and that the matter is ono
that the Supremo Court of the United States has nothing
to say to. This view of the case cannot, it is considered,
and will not, ho maintained. Tho Caroline steamer was,
at the time of her destruction, under the flag of the United
States, her papers were issued from the Government (Alec
of the Custom House at Buffalo, and the vessel was her-
self destroyed in the navigable waters of the States, which
appertain as much to one part as to another of the republic.
All these circumstances being brought into review, the
belief is that the case will go to the Supreme Court, and
no fear whatever is entertained as to the manner in which
it would be disposed of by that tribunal.
The Committee of Spanish Bondholders had a length-
ened discussion this morning respecting the financial de-
crees lately issued by Senor Gamboa. Various sugges-
tions were made by the different members in attendance.
Some were for addressing the Lord Mayor, requesting
that lie would grant the use of the Egyptian Hill, and
himself be good enough to take the chair upon tits occe-
aion, and to lend an ear to the griavances'a number of his
countrymen hare suffered at the hands of the Spanish
and Portuguese Governments. Others proposed to go
at once to Parliament and solicit the protection of the
British Government and the Crown. It was, however,
at length determined to give Senor Gamle a time and
full opportunity to carry out practically the professions
of an honest intention which he has made public by de-
crees and otherwise. One important and most
essential modification in the project of the Minister
was, however, unanimously felt to be called for
as a sine qua non to the acceptance of it,
namely, that the new fund in stock to be formed
by the consolidation of the coupons accruing between the
Ist of May, 1837, and the Ist of May, 1841, amounting
to 201. per cent. should bear 51. per cent., instead of 31.
per cent. interest per annum. It was further considered
that, as the whole of the interest which had matured on
the home debt, and that on an intact, or unreduced capi-
tal, had been paid in cash, the Treasury Bonds with the
interest upon them of b per cent., should also be liqui-
dated by cash payments, as well as the uncinereoted cou-
pons which had become due on the Ist of November, 1836,
the dividends for that period arising upon the home debtin October and November, 183t3, having been long paid
off in hard money—if any
tice were to b recognised as so solemnly professed.
This
thatwas the more earnestly insisted upon, on the ground t
the foreign principle of evenhanded jus_
creditor had sustained a loss of 33 per
capital in 1834,
cent. on his through the operation of