The Sun.
London, England, 1840-12-04 00:00:00

EvEt4TING RDITIONI

MONEY MARKET and CITY NEWS.

(THURSDAY EVENING.)
CHRONICLE.— We proceed to give a brief detail
of the rise and progress of the transaction by which
Brazil stands indebted to Portugal and the creditors of
that country. By the convention of Augu.t, 182 a, by
Which the independence of Brazil from Portugal was
recognised, Brazil agreed to pay Portugal 2,000,000/.
sterling as an indemnity. Brazil accordingly, as a con
verrience, took upon herself the redemption of
1.300.0001., tontracted by Portugal in England in 1823,
of which IPO,OOO/. had been redeemed, and the balance,
500,0001., was to be paid by Brazil to Portuga lin cash.
In liJnsequence of this, Brazil assumed the payment
of the dividends of that loan (which was then inscribed
as z, Brazilian debt), and continued to pay them until
"0 r Miguel usurped the Crown of Portugal ; when,
Ur .der the pretence that there did not exist in Portugal
r 4 legitimate government to whom 13razil might continue
to pay legally the amount of the dividends on the loan
of 1823, the payment of them was suspended, and so
continued dui:ng the usurpation. The Brazilian Go-
vernmer c, however, continued to demand regularly in
their ledtiget the annual sums to discharge these divi-
dePta which were as rogularly granted.
V: hen the Portuguese B.,geney Loan was negotiated,
tll, Committee of the Stock Exchange demanded that
II reserve should be made of that lova to satisfy all the
'arrears of dividends due on the loan of 1823, without
which it was not to be admitted on the Stock Exchange :
and necessity trampelled the representatives of the Re-
ger.ey to aec-..de to that demand.
Soon after the Quern Donna Maria was restored to
the throe a, and, consequently, the pretext of Brazil for
non-pav meat vanished.
Po•au4al, therefore, demanded of Brazil the reim-
burr armour of the dividends thus paid upon her account.
Brazil then resumed payment of the future dividends,
Ir at put forward claims against the arrears, continuing,
-nevertheless, to present annually to the Legislature
those arrears as a debt to be paid off.
In 1836, Portugal, on the faith of this recognized
debt, contracted a loan with Mr. Goldsmid for 900,0001.,
secured on the revenues of the country generally, and
e..pecially on the amount of that debt set aside for the
-redemption el this loan.
Of this loan 200,000/. have been cancelled, and there
remain now 700,0001. only outstanding.
In June, 1837, the two Governments appointed
Commissioners to adjust a settlement of the transac-
tion, and a convention was concluded in London, by
which that power was declared to be indebted to Por-
tugal in the balance of about 488,0001., or, as we have
stated It before, 190,000/.

It this convention, the mode of payment Was agreed
to be is a new Broz;iian Five per Cent. Stock, at the
rate of 8.31. pr

An arrangement was entered into at the same time
by which this Stock was to "be secured, and to be bona
fide applied to the redemption and extinction of the
Purtuguese loan of 1836.
Portugal honestly adhered to the convention, and
waited the ratification of Brazil to carry its provisions
into effect, but Brazil has ever since evaded the com-
pletion of it.
The Brazilian Government may plead that they
ate no parties to the transaction with the bondhold-
ers, inanitich as that loan is a Portuguese loan, and
not a Brazilian one ; Brazil
this much is clear, that by
the line of conduct Brazil has followed, Portugal is
doubly a sufferer, first, in having been compelled to
create a ;rent amount of debt when the Regency
ioan was issued. the price of which was 48, from
which the commission and charges were deducted, to
provide for the payment of the arrears of the dividends
of the loan of 1828, left unpaid by Brazil, and which,
by the stipulations of the convention of 1837, is to be
repaid at the rate of 85 ; and, secondly, in being com-
pelled to provide, for the half dividend now in course of
payment on the 700,0001. Stock of the provisional loan,
secured especially on the debt owing by Brazil, which,
by the default of Brazil, continues in existence.
• Tile injustice towards the Portuguese bondholders is
manifest, and worthy of the consideration and protection
of the Committee of the Stock Exchange.
W.: arc very much mistaken in the estimate we have
formed of the representative of the Brazilian Govern-
men't, if lie would avail himself of any special pleading
to get rid of an obligation so clearly due by bis couetry.
We believe that it is only necessary to lay the facts fully
before him to iuduce his Excellency at once to acknow•
ledge the claims of the Portugeese bondholders to the
appropriati n of the balance due by Brazil to Portugal,
and that it is incumbent on Brazil to fulfil the terms of
the convention of 1837.

The case is as plain es sun light. Brazil cannot
appear as a borrower with clean hands until the ba-
lanc: due by her to Portugal in terms of that con-
vention ;s discharged. It has been admitted by Brazil,
and it should therefore be settled by the Government of
that country, before new credits are opened in their
name. It is of no avail to say that Portugal is in an
insolvent state, and Brazil a solvent one. We advocate
the cause of the creditors of Portugal, and the assumed
insolvency of their debtor only adds strength to our
plea. 'lf Portugal cannot pay her debts at present
in full, it is surely the more necessary that those in-
debted to 11,.r should not withhold the money belonging
t the creditors of Poti.ugal which they have in their

bands.
Since writing the above, we have learned that a de-
putation had an interview to-dly with the Brazilian
Minister, for the purpose of representing the hardship

of the case to his Excellency, and that the result has
Len such as we expected—satisfactory to the claims of
the deputation. We trust that we have :wen rightly
infot med, in being told that the matter is likely to
Le soon adiusted, ai it ought. Our remarks may have
been disagreeable to the Brazilian Minister, but we can-
not see cause to alter or modify what we have said,
being satisliad that our views were correct, and that we
have merely stated facts. We also understand that his
Excellency expressed to the deputation a desire to con-
solidate the various descriptions of Brazil Stock into
one demonstration, a measure which, we are confi-
dent will meet ohh general approbation, and we hope it
Will be followed out as soon as tile requisite arrange.
Incuts e .n be carried through.

TIMES —ln the Paris money-market much con-
j •eture is exercised respecting the forthcoming loan, the
amount of ir, and the form in which it is to be nego-
tiated. The total sum required is 600,000,000 f., or
24,000,000/. hut whether it is to take place
in Five or in Taree per Cents. seems undecided. If
in Three per Cent., the intention of the Minister is
understood to be to adopt something like the English
method of receiving tenders in loin contracts, that is,
to tix a e-rt,.;n amount in stock, and t•, allow the
bidding: to take place it) annuities. This mode was
adopted with our West India loan. the last contract
on a large scale entered into at the Treasury. This
impvading measure seems to he regarded with much
Mar in atnang the London capitalists, not that they
can dislike in themse.ives any transactions that tend
to (nhance the value of money, but because they think
that the Bank may take fright at it, and renew those
restrictive measures which they are but just beginning
to moderate a little, to the detriment of every man in
trade, ,vhatever commodity he may traffic in. Nothing
c.nt more hilly demonstrate the weakness of the Bank
,rt this sensitive feeling about foreign loans, which
ashen prudently entered into, and in a healthy state or
our enrainurce, have never done any harm. Let them
011ee get rid of their unav,.ilable securities, and they may
safely leave these things to take their own course.
It is understood that some further notices to is consi-
derable extent have been given to the East India Com-
pany fur repayment of the capital of their bonds. The
locking up of money for l•' month:, and that after
notice given, which the present plan renders necessary,
is the less liked the more it is considered.

SUN.—The business in the public securities, is neces-
sarily becoming more limited every day, as the transfer
books are gradually closing for all the principal Stocks.
Con.ols were shut to-day, and according to a recent
razulation of the Committee of the Stock Exchange,
tlie quotation for the opening is now made without
ineludiug the dividend due on the 15th of January next.
This judicious arrangement prevents the possibility of
error on the part of the public at large, uninitiated in
the art and mystery of St,,ck Exchange affairs. It
rimy be as well to -observe in this place, that there is
e‘ery expectaticin of a new loan being required by the
Chancellor of the Exchequer next year, and this too
for some considerable amount, seeing the great and ex-
pensive armaments England has been lately compelled
to set on foot. Ausatza:etirt:ent which has appeared in the
United Service to
havethe effect that several
large detachments of troops'
India, been ordered to
r nsgrai gives
aalsonti e
igpoaotde
prepare for embarkation to
ground for supposing that our Go,,
eat, neces3ify of maintaining a
,lawrgilelrevenutautdaiinigfnhrce in
that part of the world, which, although present put
to the charge of the Company,
aye to
be provided for, in a greet measure, out of thenationalthe
e
revenue of England. The Money Markets in t.
t o iy' , a t o :
aala.
culacturing districts are understood to
be
- improving
little. and here there was less pressure di
the Unfunded Debt did not rally from its previous de-
pression. The transactions in the Funds were, how_
ev of, iilto4et her unimportant, and such as to precltule
almost any material alteration in prices. Consols
ranged from 89 to *9.; ex dividend, for the Account. ;
Exchequer Bills brought Is. to 4s. premium ; India
Stock receded from 241), to •)41 ; Bank Stock was dull
at 158 to 159 ; the New Three-and -I-Half per Cents.
ranged from 99 to 991- ; the Reduced Three-an/1-a-
-"all per Cents. from' 971 to 971 ; the Three. per
Cents.,. from 89i to 891 • and the Long Annuities,
from 14 15-16ths to 13 8 '
There,,
Foreign
tiou
was, late in the d4y, more animation in the
sep,zeattended, however, by any particular
fluctuation in Spanish were forced up to '24 and
2.44, but became
eatest.enr,wards quite neglected ; Portuguese
New five per
nod
were rather higher, viz., 34,-1 to
34i1 for Money, no to ;34a for the Account ;
Mexican Consolidated
,IS44tlotcok improved to 301, and
Colombian Bonds of 18
t 26-
_to 2.6 .1. The New
Belgian Scrip was quoted 1, premium. Brazil
Bonds gave way again to ili.
have IL I ,',
ss.ian were firm at 113.
tb.- .Q•aifway Shares we c had rather less ac-