The Sun.
London, England, 1841-01-01 00:00:00

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MONEY MARKET and CITY NEWS.

(WEDNESDAY EVENING.)
CHRONICLE—The subjoined communications,
being extracts from letters dated Ist of December, re-
ceived from a mercantile house at New York, agents for
the State of Illinois, will be satisfactory to the holders
of the Stock of that State, the credit of which was
shaken in consequence of the proceedings adopted by
the State against Mr. John Delatield, of New York.
Mr. Delafield had received from the Fund Commis
sioaers of Illinois a large amount of State Bonds, under
contract of the 7th May, 1839, to the extent of 283
sbonds, for 1,000 dollars each, which he was bound to
pay by instalments in terms of contract. It appears,
iisteever, that he only paid the two first instalments
az4irding to contract, and the Fund Commissioners,
therefore brought a suit against him in the Chan
edifies Court for breach of agreement. Mr. Delt
pleagied much in his defence on the berl
the State of Illinois, whereby the !Jah',
of the - bends tl been seriously depreciated. fit:,
plea wasifojandetlAg*Pe following resolution of a corn
mittee of the. Legislate of Illinois, of date the 30th,
January, 1840 :—" Resolved, That the contract trind::,
by MM. Rawlings and Charles Oakley, fond commis-
sioners of the State of Illinois, with John Delafield,
banker, New York, on the 7th day of May, 18;39, for
the sale of 283 State Bonds, for 1,000 dollars each, is
not made in conformity with law, and is hereby repu•
diated." It is important to observe that this resolution
was passed in consequence of the protest of the drafts
for the 11-cember and January instalments of Mr. De-
lafield's debt, and, above all, that it was rejected ulti-
mately by the Senate, and was ni..ver entertained by
the House; of Representatives of the State of Illinois.
It originated from the failure of agreement on the
part of Mr. Delafield, who passed the bonds of the
State into other hands without p rying the price,
ued in consequence of which illegal conduct on his
part, the State, after a long rind useless correspond, nee.
to effect a compromise, was ultimately compelled to
seek redress in a court of law. The object of the
suit, however, was not to repudiate the validity of the
bonds which Mr. Delafield had, by himself or agents,
passed to thirl parties. The State of Illinois never
meant to question their liability for the bonds ; they
only wished for an injunction to prevent Mr. Delafield
from passing those remaining in his hands away to
others, arid to make the proceeds of those which he
had sold answerable for his debt, under the contract
with the Sate. That such was the nature of the pro-
ceedim.a against Delafield is fully explained from the
following letters :
" On account of the unfavourable impression which has
l eon nude in the London market. in consequence of err.
tain proceedings of the State of Illinois against Mr. Johi,
D4lalicld of this city, we have thought it would be inter-
esting to you to receive the inclosed letter, addressed to us
by the Hon. Daniel Webster, who, you would perceive, was
one of the counsel employed by the Stare. We hope the
explanations contained in this letter will effectually remove
all further apprehensions on this subject.
" Since enclosing you the letter of Mr. Webster by this
conveyance, we have received the enclosed letter from
Mr. S. B. Ruggles, who was also engaged with Mr.
Webster as the solicitor of the State of Illinois:—

(Copy.)
" New York, Nov. 30, 1840.

" Gentlemen,—Mr. Ruggles has suggested to me that
some alarm has been excited among the holders of Illinois
Itauds by the Chancellor's decision in the suit of Illinois
against Delatield. I know no reason of alarm, arising
from anything decided, or contended for, in that case. It
was not suggested by the Counsel for the State of Illinois,
nor, as I understand, intimated by the Chancellor, that
the State could repudiate the bonds, or refuse their pay-
ment. On the contra,y, the ground insisted on for the
relict claimed was, that the bonds must be paid, in all
omits, to the holders, into whose hands they passed from
Delatield.--I am, &c.,
(Signed)

DANIEL WEBSTER."

(Copy.)
" New York, Nov. 28, 1840,

1. Gentlemen,—ln answer to inquiries made by your.
%chic.. and others, holders of Illinois bonds, as to the ob-
ject of the suit in Chancery, prosecuted by the State of
Itlinois against Mr. John Delafi.ild, and of which I have
charge as„Solicitor, I state that the object of the suit is,
not to repudiate, or in any way disavow the bond; of the
State, but merely the contract by which they were sold to
Mr. Delatield. The bonds are regarded throughout as
beinv, of and in themselve:,, valid and perfect aecuri,ies,
obligatory against the State in the hands of all persons
except the-kriginal parties to the contract, arid the main
objet of the I3iFl is to prevent Mr. Delatield from parting
with the bonds, and thereby placing them in hands where,
in ail events, they would be binding on the State.

" It will ha seen that the decision of the Chancellor
plainly recognises thoprinciple, in attaching the proceeds
of such of the bonds as Mr. DelatlAd may have nego-
tiated ; and such, too, was the whole scope of the reason-
ing of ate eminent counsel ( Messrs. Witham Kent and
!)suit! Webster) who argued the cause in behalf of
before the Chancellor. The idea was never for a
won,eut thrown out or entertained, either by court. or -
evunsel, that the bonds once out of the possess'on of Dela-
field were not legally, as well as morally, binding on the
State, and this obligation was not only admitted, but it
was urged and relied on, as furnishing the sole ground for
seeking the aid of the Court. The opinion of the et,..-
eellur will show that he recognises this obligation as tine
vary basis of his decision.
" The question arising in the cause, as to the legality
of the original sale of the bonds to Delafield, by the fund
Commissioners, is a matter resting exclusively between
hicn and the State, in no way affecting third parties holding
the bonds, who are not bound either to prove, or know, or
inquire how, or by whom, the bonds were originally put
in circulation. " I am, &c..
(Signed) "SAMUEL B. RUGGLES."

Mr. Daniel Webster was counsel for the State of
Illinois, in the action against Delafield, and Mr.
Ruggles Was solicitor in the cause. The above com-
munications, therefore, which fully explain the nature
and object of the proceedings, cannot fail to give con-
fidence to those who may be holders of bonds of the
State of Illinois.

TlMES.—There have been frequent intimations of
Xitte of the approaching introduction of foreign loans
into this market, but they have died away again for the
wait part and been forgotten. All this implies, as
plainly as though it. had been publicly stated on unde-
niable authority, that the market has been examined
very carefully, and found not to be capable of receiving
coy additional supply to a large extent. This i 3 to bu
ascribed in part to the efforts of the Bank to make
emoney scarce ; but there exists another and more power-
ful cause for it, which is, that we have not at hand much
spare capital available for such purposes. Projects at
))erne of various kinds, but principally those connected
with railways. have absorbed money to an immense
amount, in permanent investment, for good or evil,
as the case might turn out to be ; while the
systematic dealers in money, who might he tempted,
while it was of little or no value in the
discs ant market, by the high rate of in-
terest on foreign loans, to lend their help at least in
setting them forth, have been able to derive all the
profit they could have derived, and of a safer kind
also, {rem the current rate of money on private loans,
to the profit on which there is, in fact, hardly any
limit, as the recent disclosures respecting souse of the
roan societies have proved. These circumstances,
joined with the discredit attaching to foreign loans gene-
rally from the quantity of dishonoured paper of that
kind now in circulation, will probably keep us free for
aotue time to come from any large introductions of that
kind.

The Coasol market was buoyant to-day with improv-
invsymptoms.

The arrangement of the account to-day in the sh,:re
market Ucing passed over easily, although much as 13
per curt. was paid for accommodation, the prices of the
*entral descriptions have been fully waintaiod, whilst
in some a further advance occurred.

By the usual official return published by the Custorni,
Ole, .4 xports of the precious inet,:ls frora the port of Lon-
don to foreign and colonial ports, for the week ending
*b 24th instant, was as under

Ounces.
Silver coin to Belgium 2,000
Mauritius
Connected with the desire which is gen,rally felt
for the introduction of a higher stamp for the postage
of forqigo letters, are a memorial to the Treasury
the Committee of the Bombay Chamber of Com-
merce, and an accompinying letter by the London
East India and China Association. The Bombay
memorialists represent that they. have observed with
'egret that the present impossibility of pre-paving
their letters to England prevents them availing th!rn-
aelves of the advantages of overland communication,
and go so far as to say, that many persons who would
otherwise open correspondences in England are do:
lerred from so doing by an unwillingness to entail
wevense on those parties with whom they might cor-
lewond.They therefore suggest that envelopes and
*amps similar to those in England, but specially stamped
for Indian letters, should be sold by the home post-office
to the English stationers, who would for a small per
contage transmit them Indict. for sale to Indict. In the letter
that accompanies this memorial the Committee of the
East India'and China Association, considering that stamps
of the present low denomination would, from the num-
ber that would be requisite for Indian communie.ition,

both disfigure the letters and increase their weight,

surcst; that Is. be the amount of the statnP %'made
for India, provided the wish of the Bombay
rialists is granted. As the Indians themselves are:-.
will-
ing to purchase these stamps, there seems no objection
at can be urged by the Government against a flea-
ha that would tend to increase the revenue, while pub_
the -tyenience was at the same time consulted. For on
Enghtamission of the pre-paid letters from India to
Governs loss could of course be sustained by the
delivery ; w did any accident prevent their safe
the loss of efas, under the present arrangement
to the party foer is a loss to the revenue as well as
suggest, in additiorilm it is designed. Some persons
' Indian public, that a this alteration in favour of the
the postage of the lettet4ar stamp should be made for
This would prevent much 'oen to India from England.
from the clerks who take tiiP delay which now arises
has n; to wait while their letters to the Post-office
taxed, and the cousequent crowd sere examined and
'h is found trA be so