The Sun.
London, England, 1841-02-01 00:00:00

SPAIN.

MADRID, JAN. 22.—The following decrees for the ca-
pitalization of the interc,t due upon the Home and Fo.
reign Consolidated debt of Stain, have been issued this
morning in the Gazette:—

" DECREES.

" Queen Isabel the Second, and in her name the Pro-
visional Regency of the kingdom, decree as follows :
" Art. 1. In virtue of the authorization granted to the
Government by the fifth article of the law of the lith April,
1838, and also by the second paragraph of the law of the
21st Jane, 1840, paragraph the 2d, the interest due on the
Consolidated Debt, interior and exterior, for the half-
yearly payments anterior to the Ist January, of the cur-
rent year, are hereby capitalized, and the documents is.
vued instead will, from that date, bear 3 per cent, inte-
rest, payable half-yearly, on the 30th June and 31st
December.
" Art. 2. The holders of the Spanish Consolidated
Debt will present their Coupons for conversion in confor-
mity with the arrangement and notice of the Minister of
Finance. The holders of extracts of inscription ' will
present the originals to be stamped with the seal of the
payment of their proceeds, and for the issue of bonds equi.
valent to them.
" Art. 3. For the payment of the new interest, two
millions of reals a month arc to be set apart in the general
distribution of expenses ; the Minister of Finance ordering
that this sum he punctually deposited in the sinking fund,
under the personal responsibility of its Director. The
following month the sums delivered for this purpose are to
be published, with a view to the making public the fulfil-
ment of this project. In the event of the sums set apart
for this object not being sufficient when the half-yearly
payments become due, the deficit is to be made up by the
public treasury, in order to make good the entire payments.
If, on the contrary, there should be an excess, the surplus
will be employed in the amortization of the new documents
by purchases to be announced, admitting sealed proposals
for this purpose, and adjudging the purchase to the high.
est bidder. This operation will be entrusted to the Sink.
ing Fund office, which will execute it according to the in-
structions of the Minister of Finance.
" Art. 4. According to the state of the monthly re-
ceipts set apart for the payment of the new interest,
and deposited in the Sinking Fund, the Minister of
Finance may authorize the same, for the advantage
of credit and without injury to the holders of the new
conversion documents, to invite them to discount this in-
terest before due, under conditions favourable to both.
" Art. 5. The Government will also present to the next
Cortes a project of law, proposing the capitalization of
the interest of the whole consolidated debt, which is to
become due to the end of the year 1842, and in the same
terms, provided in this period the Government cannot pay
in money.
" Art. 6. The bearing of the interest of the new con.
version bonds is to be understood as commencing from the
Ist of the present month of January, for those who claim
the conversion before the 30th of June next. Those who
do not present their claims after this date, and to the lit
of December next of the present year, will not receive
interest for the first half year, and the same rule be ex-
tended to delays after the latter date.
" Duke DF. LA VICTORIA."
" To Don Augustin F. Gamboa.
Madrid, 21st Jan., 1841."
" The Queen Isabel 11., and, in her name, the Provi-
sional Regency of the kingdom decree as follows :
" First and only article :—The Minister of Finance will
present to the Cortes in the ensuing legislature, a project
of law founded upon the following bases :

" ' 1. The re-establishment of the second article of the
law of the 29th July, 1837, for the appropriation of the
property of the secular clergy to the uses of the State.
" 2. The administration of said property by the offices
of the finance department, the valuation and advertising
the sale of said property, in conformity with convenience
and the conditions of the decree of the 19th February,
183t3, and of the instruction of the Ist of March, of the
same year.

" The payment of the sums in %illicit the said property
may be sold us follows —4 per cent. in cash upon the net
value at the closing sales ; 10 per cent, in consolidated debt,
interior or exterior, or, if preferred, in 4 per cents. ; and
10 per cent. in coupons due, whether capitalized or not;
and binding the purchasers, at the time of closing the.sales,
to the following conditions :-Ist. To pay annually 4 per
cent: incent,
cent. in money, 10 percent. in consolidatted debt, and 10 per
coupons due, capitalized or otherwise ; 2d. To
pay in like manner the next two years 4 per cent. ef-
fective, 10 per cent. in consolidated debt, and 10 per
cent. in coupons ; and, 3d. To pay in like manner,
during the three years, 4 per cent. nm re in money, 10 per
cent. in consolidated debt, and 10 pc r cent, in coupons;
that is to say, to pay in the whole, 16 per cent. in
money, 40 per cent, in consolidated debt, interior or ex.

terior, and 44 per cent. in coupons, whether capitalized
or not.

" •t. Authorising the Government to allow as a ge-
neral rule tho purchasers to p.,y 24 per cent. of the
purchase-money the third year, in paper of the conso-
lidated debt.

" 5. To inntilize in the act of payment, and in
presence of the purchasers, the effects of the public debt
delivered in payment, in order that they may be after-
wards destroyed.

"' 6. Exemption for the term of the four succeeding
years from the payment of the tax called alcabala, as is the
case at present in the properties so purchased, so that the
transfer of such property during this period will not be sub-
ject to any taxation.

‘g • 7. the application to the support of the clergy and
public worship of the proceeds of this class of property as
long as it remains unsold

" DUKE DE LA VICTORIA."
To Don A. F. Gamboa.
Madrid, 21st Jan., 1831: "
The Finance Minister should take care that be is not upon
a wrong path for the re-establishment of Spanish credit.
The mixing, compounding, or manipulation of a debt fur-
nishes no means for paying it. Let him put it into whet
shape or form he may, the amount will be still the same.
The transformation, or arrangement, of a debt in this way
is little better than the occupation of a child in playing a
game of cards to his own liking, while there is nothing to
pay the imaginary stakes.
Five per Cents. Active, 29:14 cash to-day.