The Sun.
London, England, 1841-03-04 00:00:00

THE ARMY.

Colonel Webber Smith, commanding the Royal Artillery in
Ireland, has proposed the following arrangement for the relief
of the companies of the Artillery in this command, to com-
mence on the Ist of April next :
Major Whitty's company, from Island-bridge Barracks, to
relieve Captain Freers's at the outposts.
Major G. G. Palmer's company, from Charlemont Fort to
Island-bridge, to be replaced by Captain Freers and Major
Chalmers's corps at Island-bridge, and Captain Laws, at Clon-
mel, to exchange quarters.
The Lieutenant-General Commanding has approved of the
foregoing.
The troops employed at Tullamore, in aid of the civil power
in preserving the peace during the late election for the mg's
county, have returned to their former quarters, Newbridge and
Athlone.

LOAN SOCIETIES.—In a case brought before
Mr. Long on Tuesday at Marlborough-street, that Magis-
trate observed, that he very decidedly objected to the
system on Which the Loan Societies appeared to conduct
their business. They would lend to any needy person, pro-
vided that person could induce arty person of respectabi-
lity to give his name as surety. They did not appear at
all desirous of looking after the principal, but they imme-
diately proceeded to fix the surety.

CHILIAN BONDS.

A meeting of the holders of Chilian Bonds was held
yesterday, at two o'clock, at the London Tavern, Bishops-
gate-street. G. R. Robinson, Esq., the Chairman of the
Committee of Spanish American bondholder: in the chair.
The CHAIRMAN informed the meeting that it was as-
sembled for the purpose of taking into consideration the
new proposition of tbe Chilian Government for the ar-
rangement of the overdue interest on the debt. He had
the satisfaction of being able to inform the meeting that
the finances of the Chilian Republic were improsing, and
he must do the Noble Lord at the head of the Foreign
Department the justice to say, that although at a former
period be (the Chairman) had thought he had not exerted
himself as he ought to have done for the benefit of the
bondholders, he believed he was now doing all they could
dezire of him—(Hear, hear)—and that be would enforce
payment of the claims as soon as be was satisfied the Chi-
lien Government should be able to meet thern.—( Hear.)
These were consolatory circumstances, and to none more
so than to the Committee, Who had so long laboured with
so little effect. He was in possession of a very volu-
minous correspondence as to the progress of the
negotiations between Mr. CAldcleugh and the Chi-
lien Government, which, after various proposals and
counter-proposalF, and after going through the items of
expenditure, which Mr. Caldcleugh was permitted to do,
hal been broken off, and Mr. Caidcleugh had at last made
a proposal, not authorised indeed by the Committee, but
reserving powers for the bondholders to give or withhold
their sanction to it. His proposal was, to capitalize the
sr ears of interest at three per cent'. interest. The
payment of which should commence after a period of flue
years had elapsed. The proposal was declined, and the
Chilian Government, at the termination of these long ne-
gotiations, bad submitted to him, the proposition they
were then assembled to take into consideration. The
proposition was as follows :

1. The intere3t hereafter du6: on the loan of five mil-
lions of dollars will be paid in the form established.
2. The interest due, and not paid, at the da'e of the
arrangement, will be funded at the rate of

1 per cent. yearly fur the first ten veara.
.._

2 per cent. for the ten following years.
3 per cent thereafter,
provided the said capital be recognised in the internal
debt of Chile, when it will be paid off.
3. The primitive obligation relatinir to redemption is
extingoiibed, and the Government shall be free to effect
it, to the extent and at the time when it may ple-ise ; it
being well understood that the redemption may he made
ei;her of the original capital or of that of the interest
funded and acknowleaged in the internal debt.
4. The Government of Chile shall have power to rai•e
new loans, in Europe, without being prevented by the
conditions stipulated in the 6th article of the contract.

5. All the interest falling due aft,r the date of the new
arrangement shall be pH in Santiagl, allmiing to the
lenders the costs of carriage, insurance, and the differ-
ence in the exchan,;e, at present binding on the Govern-
ment.

With respect to the first proposition, it was his duty to
mention that he thought there was some vagueness in its
expression. It might be interpreted as be (the Chairman)
interpreted it, to mean that the interest due on the original
loan would be paid in the form established by the bond—
that was, 6 per cent., in London. It had, heave. ee been
interpreted by some to comprise the whole interest on the
original loan and arrears. The second proposal varied
from that of Mr. Caldcleugh, inasmuch as he proposed
that these bonds should remain without interest for five
years, while the Chilian Government proposed ten years.
With respect to the third article, it proposed a most im-
portant change in tlee security they had on the old bond,
being no less than that the primitive obligation relating
to redemption should be extinguished, and that the Go-
vernment should be free to effect it to the eaten., and at the
time when it might please, which be (the Chairman) con-
sidered to mean, not at all.—( Hear.) The fourth proposal
spoke for itself, and exhibited a desire to set aside an
original contract; and it was for the bondholders
to consider whether they would sanction it. The fifth
proposal was an important one, and be begged to call
their attention to it. Such were the proposals received
from the Chilian Government through Mr. Caldcleugh,
and having received them, the Committee had deliberated
on them, and had come t cart lin resolutions, which they
would presently submit to the meeting, but which be would
beg leave to preface witn a few observations. First, it
was satisfactory as regarded the original debt to find the
resources of the country had been in a state of progressive
increase from the year 1833 to 1839. After paying all
the expenses incurred in the war with Bolivia, there was
an excess between these years of 616,192 dollars, and be
believed the Chilian Government was in a condition to pay 6
per cent. on the original debt, and 3 per cent. on the ar-
rears capitalized, and to commence payment immediately.
—( Hear, hear.) The receipts at the Custom-house of
Valparaiso for the first ten months of 1840 had exceeded
the receipts of all the Custom-houses of the Republic
for the preceding year.—( Hear, hear.) It was,
however, enough to state that the ability of the Chilian
Government f.ir the future must remain, as he feared, the
subject of contention. They would remember Mr. Cald-
cleugh proposed that the arrears of interest should be
capitalized, and that he hid made that proposal without
the authority of the Committee. It was not his (the
Chairman's) duty to offer then any opinion on the subject,
but having thought it his duty to pay every attention to
the subject, he hoped to be excused for offering a few sug-
gestions.—( Hear, hear.) The first thing to which he
would call attention was the delay that had attended these
negotiations from the want of authority on the part of their
agent there. From this reason eighteen months had now
elapsed without anything being done, and Colonel Wal-
pole said if they did not mind they would lose a like pe-
riod again. He knew there were many gentlemen who
overleaped all difficulties in the way, and said they would
have the bond, the whole bond, and nothing short of it.
! This he should be glad to get, being himself a large bond-
holder, but he thought they should consider now what was
practicable rather than what was right, and that if
they could not get all they claimed they should
get all they could. With respect to the arrears of
int2rest, if they were to bear so hard on the growing re-
sources of Chile, they might posssibly endanger the regu-
lar payment of the merest on the principal loan.--
(Hear, hear.) It was therefore his own opinion, that the
best course they could take would be to authorise Mr.
Caldcleugh to renew his offer of taking 3 per cent. at
the end of five
.years on the arrears of interest consoli-
dated.—( Hear, hear.) And he was the more disposed to
do this, seeing that this proposition had the entire concur-
rence of her Majesty's Envoy, who was of opinion that the
Chilian Government would be able to do this, and that
asking more mi;lot occasion interminable delay. These,
however, were questions for the meeting to determine,
and therefore, tnaiiking them for the attention they had
paid him, he would submit to them the resolut!ons.—
( Hear, hear.) The Chairman then read to the meeting
resolutions to the following effect :-
Ist. That this meeting having taken into consideration the
proposal made by the Government of the Republic of Chile,
in a letter dated sth September, 1840, addressed to Colonel
Walpole, her Majesty's Consul-General for Chile, fur the
liquidation of the arrears of interest on the Cbilian Loan,
contracted in May, 1822, decline acceding to such
proposals.
2d. That this meeting having taken into con-
sideration the proposal made by Alexander Cald-
cleugh, Esq., to the Government of Chile, on be-
half of the bondholders, do approve of the same,
and accordingly do hereby authorise the Committee to con-
clude arrangements wilt the Government of Chile for the
arrears of interest on the said loan, becoming due on the
30th of March, 1840, on the following basis :-_That
bonds shall be issued for the said arrears, being 81 per
cent., at par, and bearing interest at three per cent., the
first payment to be made on the sth of September, 1845 ;
the interest to be paid half-yearly in London. The
bondholders to have the option of merging the same in
the internal debt of Chile, in which case an addition of 10
per cent. shall be paid to the capital of such bonds, and
interest thenceforward payable only to the Republic of
Chile.
3d. That this meeting, having taken into consideration
the great improvement in the condition of the finances of
the Chinn Republic, feel persuaded that it must be ap-
parent to the Government of Chle that they cannot sanc-
tion any deviation from the basis laid down.
4th. That this meeting expressly declines any deviation
from the article of the contract on the loan of May, 1822,
except the arrears of the interest be arranged in the man-
ner herein provided.
sth. That this meeting returns its best thanks to Col.
Walpole for the able assistance be has rendered to the
bondholders in consequence of the instructions of the
Minister for Foreign Affairs.
6th. That the thanks of the bondholders be given to
Lord Palmerston for his strenuous and continued exertions
for the protection of their rights, and that the same be
communicated to him by the Chairman.
7th. That in consideration of the serfices of Alexander
Caldcleugh, Esq., a commission of 21 per cent, be allowed
to him out of the bonds to be issued, the said commission
to be paid out of the said bonds.
Bth. That this meeting cannot but be sensible of the
honourable conduct puraued by Messrs. Hullett. Brothers,
and Co., the contractors of the loan, in sustaining the
rights of the bondholders, and in bringing the same under
the notice of the Government of Chile,
A BONDHOLDER said he thought they ought not to in-
crease in their demands in proportion to the return of the
Chile Government to good faith.—( Hear, hear.) But
he thought it would be but fair that the 1 per cent. they
stated they could pay on the arrears should be applied to
the redemption of the existing bonds. He did not wish to
makeshoul d i t
hßeeaes
thought
occfo instructed n.
Chile
d WYLLIE,
dst
matterahi
ed
other
oohfeppraorrlaei lcpl
yeu lbt existedhiiecys
oog
ought
et ttow Southse
ueApn
pmtohe
er
thet
cd eenni
ttr agent,
could.
manner.hinaven no objection
h
addition,r
o bo
I.te
which
tdhpi
opi denehoantrtoech
dethhyit
esos dutytbhaotinmedd
bondholders
theyleedayecbrwhso
were
ldreea na db l
ei
requiringe
tdoelpp epa
Governmentnye
The opinions that had been expressed by the Chairman
were borne out by the arithmetical calculation ; that would
not admit of contradiction. The average increase of the
revenue during the last seven years was 102,000 dollars,
and there was a surplus revenue of 438,000 dollars. There
could, therefore, be no doubt of the ability of the Chile
Government; but, as a matter of expediency, he thought
they ought to support the proposition of Mr. Caldcleugh.
Mr. YOUNG thought some time ought to be limited for
the acceptance of their proposition.
A BONDHOLDER inquired if any sinking fund had been
established to pay the 3 per cent. stock. He thought
Mr. Caldcleugh should be instructed to apply to the Chile
Government to sanction its establishment.
theo:ln
tofthedebt
The CHAIRMAN said the subject should be taken into
communication, and communicated to Mr. Caldcleugb.
A BONDHOLDER asked if the Government of Chile
had not received
ofnromacc
Government
of Peru at the
due to England.
The CHAIRMAN said
nothing had been paid by Peru; if
close a c considerable
theid e rlaabslte
war, sum
it had been so, it would have been advantageous to them,
Mr. WYLLIE said he had documents which proved that
had been fro neatly blamed for
the Government of Chileq

the faults of their agents. They disclaimed sny intention
of contracting for a new loan.
The CHAIRMAN observed thelast resolution did not at all
commit the bondholders with respect to the disputes be.
tween the Chile Government and Messrs. Hullett.
The resolutions were then put to the =wing seriatim,
and unanimously adopted.

. -
A vote of thanks was then passed to the Chairman and
Committee, and the meeting separated.

LONDON AND WESTMINSTER

BANK.

year, in the same steady course which marked the progress of
former years.

The profits of the year, after defraying all the current ex-
penses, and making allowance for all had and doubtful debts,
amount to 48,951/. Bs. 10d. Out of these profits the Direc-
tors paid last September a dividend at the rate of six per
cent. per annum upon the half-year ending in June. And
they now declare a similar dividend, payable on Wednesday
next, upon the half-year ending in last December. After the
payment of these dividends, there will remain from the profits
of the year 13,114/. 12s. 10d., which added to 33,1001. Ils. Id.,
the unappropriated profits of former years, will make the sur-
plus fund arising solely from banking profits, amount to
46,215/. 3s. I Id.

The Directors being of opinion that it is desirable to in-
crease the capital of the Bank, have determined to issue ten
thousand more of the unappropriated shares. And as they
think that any additional value which these shares now pos-
sess fairly belongs to those who joined the undertaking in its
early stages, they will issue them without premium to the
present proprietors, in the proportion of one to every three
shares already held. The payments will be made by four in-
st'lments ofil. each. The details of this arrangement will be
communicated by a circular letter, addressed to each share-
holder. By this measure the paid-up capital of the Bank
will be increased to 800,0001.

I he Directors who retire from office on the present occasion
arc Sir Thomas Freetnantle, Bart.; William Haigh, Esq. ;
and Joseph Esdaile, Esq. ; but these gentlemen being eli;rible,
offer themselves for re-election.

During the past year the banking institutions of the coun-
try hive occupied a large portion of pubic attention. The
Directors trust that the events and discussions which have
taken place will have the effect of diffusing a correct knowledge
of the principles of joint-stock banking, and that institutions
like the London and Westminster Bank will he allowed to ex-
ercise the same legal rights and privileges which are accorded
to other banking estabishments.
PROFIT AND LOSS, 1840.

Payment of the dividend on the 10th Sep-
tember, 1840, at. the rate of 3/. per cent. £17,918 8 0
Payment of the dividend now declared, at
the rate of 31. per cent on the 10th
March, 1841
Balance cf unappropriated profits...

17,918 8 0
46,215 3 11

£82,051 19 11