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

MONEY MARKET and CITY NEWS

(MONDAY EVENING.)
CHRONICLE.—The Share Market was flat to-day,
and prices were a shade lower.
Toe news from America, relative to the affairs of the
Bank of the United States, produced some anxiety among
those interested in American affairs; but, although there
seems to be no doubt that the accounts aro correct in so
far as they state that the American Money Market was
depressed, and that the shares of the Bank had fallen,
there is great reason to believe that the assertion, " of all
confidence in the institution being gone," is untrue, and
we have no difficulty in stating that the statement of the
immediate assets and liabilities is fallacisus.
The New York Herald, on whose authority alone the
statement stands in the meantime, is a paper notoriously
hostile to the Bank, and not particularly high in its cha-
racter for veracity on any subject. Looking, however, et
its figures, we see at once that the liabilities are put down
at the very highest amount possible, while the assets are
garbled and depressed to the utmost farthing; and the
whole of the large mass of securities held by the Bank
are thrown overboard by the sweeping appropriation, "that
they are daily becoming worse."
The liabilities arc put down at 511,205,022
The assets at

Leaving a deficiency of 57,636,541
Supposing every dollar in dep )sit and circu!a'ion to
be c.lled for, an event known by every banker to be so
very improbable that we might almost say it is impos-
sible.

But besides from the above deficiency of ,7,636,541
Must be deducted... 5,000,000

Leaving only s2 636,541
Because that amonnt, it is known to all parties interested,
was arranged to be taken in post notes at nine, twelve, and
eighteen months, by the other banks of the city of Phila-
delphia, and through the latter in part by the banks in New
York and Boston. Over and above all this it is known,
as we stated lately, that the Bank has funds in this
country at its immediate disposal to the extent of
$3,500,000 ; so that, in fact, the institution bad
tends instantly available for the payment cf every
farthing of its liabilities, if every dollar in circulation and
deposit had been called for, which, as we have already ob-
served, is almost impossible. These facts must satisfy the
public that there is no reason to apprehend that the re-
sumption of specie payments in January would be post-
poned, which is further strengthened by the quotation
given in the New York Herald, of the rates of discount in
New York for drafts on Philadelphia, which remained at
1 per cent. only, instead of from 3 to 5 per cent. discount,
being the rate before the resumption was contemplated.
There certainly dots appear to have been somethiag like a
panic at the date of the departure of the Cambridge from
New York,:from causes which the meagre accounts received
do not explain. Under these circumstances, we would advise
those concerned to remain quiet until the arrival of the
steamer of the Ist of February, which will be about the
15th of the month, as she will bring accounts sixteen days
later than the period fixed for the resumption of specie
payments.
It appears that the heaviness in the Consol Market has
been sufficient to depress Spanish bonds nearly per
cent,, notwithstanding the official publication of the
financial decrees, converting the Coupons into land warrants,
bearing 3 per cent. interest, with a prospect of their early
cancelment and resumption of the payment of the divi-
dends on the Active Bonds. Many persons, we under-
stand, consider the caFtitalising of the Coupons in the
light of a new creation of stock, and it certainly would
have been more desirable to have received payment of the
arrears duo in money ; but it would have been absurd to
expect such a settlement at present from an impoverished
exchequer, such as that of Spain. The next step was
for the Spanish Government to pay as much as they could
afford, and to acknowledge the balance in a legal form,
bearing interest until the means at their disposal should
redeem the obligations. This has been done, and cer-
tainly the position of the bondholders is pro Canto im•
proved.
The newspapers have only published the financial de-
crees themselves, and have not alluded to the report of
M. Gambea to the Regency, on which the decrees were
founded. This document is of a moat able and satisfactory
nature. It is published in the Madrid Gazette at length,
and we subjoin some extracts from its columns, which prove
distinctly the perfect bona fides of the measure, and the
honest feelings and principles by which the Minister of
Finance was actuated in proposing it for the consideration
and approval of the Regency.
He begins by alluding to his former exposd of the 4th of
November, when he proclaimed that the most imperious
obligation of Spain was that of paying all the arrears duo
and to become due of the national debt, which words, the
Minister says, he repeats now, to let the world know that
when he expressed them it was not with the only view to
silence the general clamour, but as a solemn promise,
which he considered himself bound to fulfil.
He then dwells on the great value of the several domains
of national property still remaining unsold, and which he
intends to publish for the knowledge of the creditors.
The Spanish finances, he observes, require a radical
reform, and the introduction of " econoraias," to ;bring
the Treasury to a state capable of meeting the national
exigencies.

lie considers the claims of the bondholders as of a most
sacred character, and in order to do justice to them as
circumstances will permit, proposes the conversion of all
the arrears of Coupons of the internal and external debt,
up to the end of 1840, into a new stock or land warrants,
receivable at par for the purchase of the national and
church properties, bearing three per cent. interest per
annum until extinguished. The other particulars of the
conversion our readers will have found in the decree.

With regard to 1841 and 1342, he reserves to himself
full liberty to propose a measure to the Cortes, for their
conversion, as they become due, because it is possible that
at no very distant period Spain may be recovered so far as
to be able to pay some of them in full. From 1843 the
Minister entertains the hope of resuming payment of the
dividends, and we must confess that we appreciate the can-
dour with which this report is presented to the public; for
M. Gamboa distinctly says that he would be reluctant to
make such an offer if he had anticipated that the debt was
to be at that period of the same amount which it represents
at present. He expects the contrary, as the facilities and
encouragement which the Government intend to give for
the sales of national and church properties will reduce the
amount of it in a great degree. The church property is
expressly applied to the redemption of the Coupons and
capital of the debt, to be sold as specified by the
second decree, part in cash and part in Active Bonds and
Coupons. The valuation of this property is 20,000,0001 ,
but the Minister expects it will realise 30,000,0001, to be
received as follows :

£4,800,000 in Cash
112:20000
0:000::::
inin
Co
Active Stock
30

X3O, 000,000
The cash will be required to provide for the maintenance
of the church and clergy. The portions receivable in
Stock (ordered to be cancelled and burned on delivery)
will reduce the debt of Spain within such a compass as
will enable the Government to make provision for the fu-
ture dividends at an early date. The statement which we
made the other day as to the real amount of Coupons is
corroborated by the report of the Minister, and the home
and foreign creditors are placed upon a footing of entire
equality,

TIMES.—The accounts given in the New York
papers of the situation of the " United States" Bank, and
that, too, within one week of the period (the 15th ult.)
fixed for the resumption of specie payments, have struck
dismay among the parties interested in that concern, who
had been led to expect far different results, since it was
known that the agency in Europe had been undertaken
by Messrs. Morrison and Son. It should be observed,
however, that there are many circumstances connected
with these accounts which have led to the belief that
there is both exaggeration and misapprehension in them,
and the want of the papers of dates previous to the
Bth ult., which would contain the Annual Report of the
meeting of the Shareholders of the " United States "
Bank on the 4th, almost wholly precludes any just
conclusion on the subject. The affair may not, there-
fore, turn out quite so bad as it now appears to be,
but still there was enough known before to justifj great
doubts whether this bank could resume at all on the
15th, and still greater, if it did so resume, of its being able
to bear up against the run that would be made upon it, in
consequence of other recant disclosures, or to continue
specie payments for any lenoa of time. That a deadly
enmity exists in New York against this and other banks in
Philadelphia has long been apparent, and unfortunately,
besides the wish that the United States Bank should be
finally and totally overthrown, there exists a power in the
New York banks to aid in the accomplishment of that
wish, by a pressure for specie, as soon as cash payments
are resumed. On the other hand, non-resumption must
prove equally fatal, by causing a forfeiture of the charter,
unless the Legislature of Pennsylvania, which has peremp-
torilys
s fixedr a final" period for resumption, should stultify
e ro far as
further to suspend the execution of its own
law. Hence the proper inference seems to be, that what-
as published in the
papers .''
e 'l
for ti
° t a S
everk, the prospectsrexaggerationt of theherern
ay be in the accounts from New
York, parties here who are interested
in this bank arc of the most unfavourable description.
The theahoFwretitchhat the movements of the
funds,
Paris market have very much corresponded with those of
our owe, as far as concerns the effect of the Queen's
quotations of
Speech, and the debates en the Address. The first effect
of the omission caused in Paris, as it did here, a decline
in the public securities, but the last papers, which show
that the French arc in possession of the speeches in Par-
liament likewise, bring a slight advance in the prices of
stock, and although such a reaction did not take place
from a like cause in our own market, it was pretty gene-
rally admitted that such would have been the case had not
the paragraph about the public exigencies prevented it.
Money has been in more request, and this has caused
a greater continuation in the price of Consols for the ac-
count, as compared with the value for money, while also
the continued bringing ofstock
into the market has ope-
rated unfavourably to the maintenance of quotations gene-
rally.
The foreign securities have, in almost every instance,
given way, but the more particularly affected were those
connected with the Peninsular Governments, and for the
reason that it is here the impression that the bondholders
are not fairly dealt by in the proposed consolidation of in-
terest upon their debt, and the small payment to be made
upon it is also not thought worthy their consideration.
Private letters from Madrid contain several observations
respecting the Regency decree for the conversion of the
overdue dividend into a 3 per cent. stock, published in the
Gaceta of the 22d ult. The amount of outstanding over-
due dividends, it is observed, may - L
oe set down at
960,000,000 of reds veil",
so that the present debt will
be increased from 6,000,000,000 to 6,960,000,000, while
the balances due by the pet-cheers of the national property,
together with the value of that still unsold, and the value
of the church estates applied, as according to the same
Gazette, as well as of those belonging to Ordenes Mili-
tares, esc., are only supposed to amount to 4,865,000,000,
to say nothing of the circumstance that part of the