The Sun.
London, England, 1841-11-23 00:00:00

MORNING SUN

MEETING OF SPANISH BOND-

HOLDERS.

A meeting of the holders of Spanish Passive Bonds
took place yesterday at. the King's Head, in the Poultry,
for the purpose of taking into consideration the situa-
tion in which they were placed by the bad faith of former
Spanish Governments, and also to memorialise the Re-
gent of Spain, the Government, and the Cortes, with
the view of obtaining that measure of justice granted to
the holders of Active Spanish Bonds, which was most
solemnly pledged to the holders of Passive Spanish
Bonds, but withheld from them after the Spanish
Government had publicly advertised that they had
received orders to carry into effect the decree of Feb.
1836, and after their agents had issued and printed forms
for the purpose of converting the Passive debt into Active.
Mr. Hapnow, id proposing. that Richard Thornton,
Esq., should take the Chair, said that himself and friends
who were large holders of Spanish Bonds, had called
the present meeting to obtain Justice-from the Spanish
Government, and the simple means of doing so was by
calling upon them, to carry into etfect their own decrees
passed in their favour. They did not auk them to do
anything new, but merely to carry into effect their own
terms.—(Hear, hear.)
Mr. TrroaxToN, on taking the Chair, said that although
he was no party to calling the present meeting, yet in
compliance with their unanimous wish he was: very
happy to take the chair.—(Hear, hear.) He was quite
sure that every gentleman he had the honour to address,
would make up any deficiency on his part, by rendering
him his best advice and assistance.—(Hear, hear.)
Under these circumstances he ventured to accept
the honour conferred upon him in calling him to the
Chair. As to the justice of their cause, insisting on the
Spanish Government complying with the terms of their
contract entered into with them, there could ba no doubt.
—( Hear, hear.) He was not going to defend the Spanish
Government for not carrying the Passive Stock out as
the Deferred Stock had been ; there could be
no doubt they ought to have done it. Before
he sat down, with the permission .of the meeting,
he would read a correspondence that had taken
place between himself and the Earl of Aberdeen,
and also his Excellency Surra y Rull, the present Finance
.Minister of Spain. He had called the attention of the
Spanish Minister Surra y Rail more particularly to
Active Stock, believing the situation in which Spain
was placed would prevent her from dealing out a full
measure of justice.—(Hear, hear.) He thought with
respect to Passive Stock it ought not to have remained
Passive to the present hour. He had also a letter from
a friend of his, M. Zulueta, who was invited to attend
the present meeting but who had declined to do so.
That letter, with the permission of the meeting, would
be presently read. He felt bound to say with respect to
his Highness the Regent of Spain, he had the greatest
expectations that he would do as much for them as the
position of the country would warrant, or they could
possibly expect. With respect to his Excellency Surra
y Null, the Spanish Minister, he was a man of as great
integrity as ever lived—(Hear, hear)—and from
the correspondence he had had with him, lie
was quite sure, that had it not been for the
late insurrection in Spain, they would have had their ar-
rears of Active Bonds converted into 3 per cent. stock.
Unfortunately, however, a great personage in France
had supplied Don Carlos with the munitions of war ; and,
further, when he wss driven out of Spain, what was
done ? Why, a French army was placed on the Pyre-
nees tocover his retreat ; so also a French army was placed
to enable persons on his behalf again to cross them.
They were a eain driven out of Spain, and again there
was a French army to cover their retreat into France.
Had it not been for that great Personage in France—had
it not been for the civil war which had been fomented
there, they (the Bondholders) would have had their
money in their pockets.—(Hear, hear). Better days
were now dawning upon them; he had no hesitation in
saying that he had the highest opinion of the honour
and integrity of his Highness the Regent Espartero.—
(Cheers.) The Ministers whom he had chosen showed
that he understood what he was about.—(Hear, hear.)
The correspondence w hich had taken place between him
(the Chairman) and his Excellency Surra y Rail, and
Lord Aberdeen. would be read ; and he would seize the
opportunity of contradicting a report which had appeared
in a Morning Journal—viz., that Lord Aberdeen had
refused to receive their Chairman. That was .not true.
The Earl of Aberdeen, when he (the Chairman) waited
upon him respecting the Portuguese bonds, received him
in the most courteous manner, and did him the
honour to say that he should be happy to see
him at all times and upon all occasions, either upon the
claims of Bondholders upon the Portuguese or the
Spanish Governments. Ile was most happy to contra-
dict the false report. His Lordship not only received
him in the most flattering manner, but expressed his
cheerfulness and alacrity—nay, his anxious wish, to as-
sist the unfortunate Bondholders. His friend would now
read to them the letter, received that morning from M.
Zulueta. It was as follows

" 69, King William-street, Nov. 22, 1841.
" Sir,— I have received a letter from Mr. S. Hadlow,
requesting my presence at the meeting of Spanish Passive
Bondholders, to be held thi; day, and, as your Secre-
tary has expressed a similar desire, I think it
necessary to state the/ grounds upon which I consider
it my duty not to attend. Having been called upon by
the Spanish Government to advertise the conversion of
the Coupons due on the Active Stock, I replied on the
3d of March last, at once declining to give that or any
other public notice, without having in my possession a
sufficient guarantee of its present, and a fair prospect of
its future fulfilment. Whilst the advertisement which I
was unfortunately led to issue, by reiterated orders from
the Spanish Government, for the conversion of the Pas-
sive Stock remains a dead letter, and whilst my repeated
remonstrances, as well on this matter as in that of
the Treasury Bonds, continued to be disregarded, I
stated that if the Government insisted upon their new
project without coming to a satisfactory arrangement
regarding their former promises, I must be understood
to tender an irrevocable resignation. For, although I
originally opposed both measures, and strongly remon-
strated against both, when once they became the law I
could not help considering them as obligatory upon the
Government. Until a few days ago Mr. Murietta, a
gentleman whose well-known respectability does not re-
quire my testimony, had not accepted the appointmentvery
recently made, and to him I have delivered the Commission.

Under all these circumstances, my appearance at the
meeting—wkilst it cannot forsvard the object of it—
might be construed into an attempt to oppose the exist-
ing Government of Spain, and to embarrass their mea-
.

sures—a position which I am so far from desiring to
assume, that even the reasons for my resignation would
never have bzen publicly known, if a partial extract
from my own official despatch had not been published in
all the newspapers, as is well known.
" You are authorised to make such use or this letter
as your own discretion may suggest.
" I remain. Sir, your oedient servant, .
" P. F. DE ZULUETA.
" Richard Thornton, Esq., Chairman of the
Committee of Spanish Bondholders."
That was a letter which did great credit to the writer.—
(Hear, hear.) He had Once unwittingly led them into a
severe disappointment, and he did not feel warranted in

putting them- in the same situation again; therefore he
thought that the letter did great credit to his motives;
but still it would, perhaps, have been as well, had he
given more credit to the character of his Excellency
Stirra y hull. The letter, at least a translation of it, to
him as their Chairman, would now be read. It was as
follows :

Translati,)a.— (Confidential.)
" RICIIARD TIIORTON, ESQ., LONDON.

"Madrid, 31st August, 1841.
" Sir—By my last I offered to you to touch upon some
interesting points of Spanish finance, and its intimate
connection with and influence upon its debt. I haste to
fulfil that promise, confirming anew the idea that the de-
claration which the Committee,. so worthily presided
over by you,
,:nade at the meeting of the Gth instant, was
duly considered by rue a testimonial of the confidence
which the Spanish nation deserves of its creditors, and
of the deference which the representatives of a class so
worthy of attention vouchsafe to me.
66 I would wish to be nhle to convince you that it would
not have been possible, without grave danger to the pub-
lic service, to assign more than 3 per cent. to the capi-
talization of the interests overdue ; and that it would
have been an imprudence to go beyond that rate. Even
to p ay
it
will, cost some . effort; but and
the nation its
Government are disposed to c ffe
ct it at every cost, and
as tong as I form a part of the Administration, I will show
that example that
"In the meanpile u
the retrenchments effected will pro-
de
duce their fruits in season ; public Wealth will follow
the spontaneous impulse given to it' by peace, and the
epoch will arrive when the ' arnortization'* will absorb
the portion of the debt in excess of the means applicable
to the burden.of its interests.
"The first experiment of the sale of the ancient
.con-
vects, payable in the Nev i
Three per Cents., has been
most brilliant, and the quantityd of the same class' of
pro-
perties
remaining to be 501 is capable of absorbing an
enormous capital.
"The progressing state of the nation invites foreign
capital. which will find the most safe and advantageous
investment that can be offered. Foreigners who may
every protection;
with
come to be proprietors, will meet
be opened will
and the new communications about to
augment the value of landed propertyd
already relieve
from tithes. I make. this suggestion to
you in case you
your constituents
is, above all things, de-
sirous of offering advantages to its creditors, granting to
theM, at their own pleasure and choice, what they may
select amongst the great mass of properties appropriated
by the nation to pay they
them ; and in order that may
have a full knowledge of said properties, of their upset.
prices and their price after sale, lam contriving _
mea-
sures for their announcement in the periodical press of
that kingdom, which, I {latter myself will produce infi-
nite good, promoting the progress of `amortization,'
and stimulating foreign creditors to establish themselves
with estates in this country, where everything is still in
embryo, and where the e ant of circulating capital retards
the rapid progress of agriculture. commerce, and indus-
try. From this acknOwledged abstract arises the legiti-
mate consequence of its being indispensable to establish
a good system of provineid. bankS, based upon the Scotch
principles, an idea which forms an essential part of my
economical scheme, and which I will seize the
first opportunity to carry into practice, com-
bining its working with the administration and collection
of the taxes. From your enlightened mind it cannot be
concealed, that any plan of finance not embracing' as an
essential basis the reduction of the debt by the sales of
properties, will be incomplete and defective : for Spain,
4•4}; Wllleitott`eitastanding its natural resources, cannot possibly,
for some years, by its exports and imports alone, calcu-
lated at 500,000,000 of
peals, procure for itself any con-
o,
te.,,,4_
f `----- siderable,Sum in hard
.
`=.l
,C.let,., loss of a:passive exchange in
cash, augmented by the natural
passine• it abroad, there-
"—
"::'.4.,::•..with to ni:fet the interests ' X - would
on its ebt. NI, hat

~~~~

The word means the abso
a ment.--R. C. W. rption of bonds received in
y

N. .1