The Sun.
London, England, 1841-08-07 00:00:00

MONEY MARKET and CITY NEWS. ,

FROM THE MORNING FATERS OF THIS DAY.
TlME6.—Private letters received in the City from
Amsterdam describe the plan selected by M. Rochussen,
the Minister of Finance, for converting at once the im-
mense quantityof Dutch P4siire Debt, which, although
a conversion into Active Stock has been going on for the
last twenty-six or twenty-seven years, still amounts to
about 870,000,000 for Ms. Several plans have been
offered to the Minister for the desired conversion, and
he has now selected the following one, which he has sub-
mitted to the State Council, where it has been rstified,
so that the Bill which would be required to carry the
scheme into operation may already be considered as fit
to lay before the Chambers. The plan is that the whole
of the Passive Debt shall be at once converted into a 2i
per cent. Stock, to be calculated at 52 per cent., which is
about the present rate of the Active. This price is to
be reduced by a deduction of compound interest up to
the moment when, according to the existing regulations,
the conversion into Active Stock would have become due,
the interest to be calculated at 4 4-sths per cent., being
about the interest to be got by an investment in Dutch
Two-and-a-Half per Cents. at the present price. This
conversion would, it is estimated, augment the Active
Two-and-a-half per Cents, by the amennt of 70,000,000
guilders, and the expenditure of an annual interest of
1,700,000 guilders ; while at present 2,500,000 guilders
appears yearly in the Budget for cancelling as much
Active Stock as arisesfrom the conversion of the Passive,
besides an annual careening of Passive Stock at the rate
of about 3+ per cent.
To this plan an objection is raised, not on the ground
that it would not be advantageous to the Treasury, but
on that of justice! and equity. To explain this objec-
tion reference is made to the history of the Passive
Debt. The law of May, 1814, revived two-thirds of the
ancient Dutch debt, thus creating the Passive Stock un-
der the denomination of " Deferred Debt" and " Bills of
Chance," and likewise enacted that every year 4,000
" chance bills" should be selected by lot, and with
4,000,000 guilders of Deferred Debt, be converted into
Active Stock, this amount beingtafterwards altered to
5,000,000. Another law, of February, 1818, enacted
that, besides this conversion, another 5,000,000 guilders
of Deferred Stuck should be bought and cancelled, an
enactment which has been rigidly adhered to ; and. the
Passive,Debt, which originally amounted to the nominal
sum of about 1,200,000,000 guilders, has been - reduced
to the present sum of 870,000,000, which, • according` to
the present regulations, would cease to exist in 87 years.
Returning to Mr. Rochussen's plan, it is remarked,
that while the existing law of 1818 provides for the con-
version of the whole Passive Stock by the end of 87
years, the Minister has calculated his compound interest,
not according to that law, but the old law of 1814, ae
cording to which only 4,000,000 of Passive Stock was
annually to be converted, so that the conversion would
occupy 217 years ; thus putting the holders in the same
disadvantageous position as if the law of 1818 had never
existed. The conversion being thus against the interest
of the holder, it is remarked, that to be effectual it must
be rendered obligatory, and this would be attended with
the further injustice, that Bondholders would be forced
to accept it at the market price, while the nominal value
of the present stock is at par. Hence it is argued, that
the ingenuity of the scheme is so much counterbalanced
by injustice to the holders, that public credit in Holland
would rather suffer froin such a proposition being seri-
ously entertained, than be advanced by the benefits to be
derivedby the Treasury.
ADVERTISER.—The foreign exchanges were flat this
afternoon; the very unsettled state of the weather hav-
ing caused so considerable an advance in the market
value of Bonded. Wheat and an active speculative de-
mand, it is not to be expected but that remittances to
the Continent will increase, and that with them there
will be a fall in the rates offered for the pound sterling,
which if carried to any great extent, would make it more
profitable to ship specie.
The Port Philip settlement seems to have been pro-
gressing favourably, and the season, from certain at-
inospheric appearances, would, in the opinion of the
natives, prove to be tolerably abundant in rain, ao
that the drought which periodically occasions such
damage to the corn was not expected to be felt there
at least. Nevertheless provisions seem dear, bread
being 9d. the 21b. loaf, and wheat . 4s. to ss. per
bushel. 'Wages were high certainly, but some of the
newly arrived immigrants had formed very extravagant
notions as to the rates current ; a gentleman who ad-
yertised for a groom, for instance, having received a
visit from one modest applicant who demanded " 100/.
per annion, with board and lodging."
A very in; ortant resolution was adopted at a meeting
of the Committee of Spanish Bondholders, held to-day,
and which we haie exceeding pleasure in noticing, viz.,
the acceptance of the terms proposed by Surra, y Bull,
for converting the Coupons
,an arrear into a new stock,
bearing 3 per cent. interest, under the understanding, as
the Committee state, that every possible effort is to be
continued to reduce the mass of debt by the sales of
national properties, and to resume the payment of divi- ,
dends from the Ist Jan., 1843. This is at it should be.
CHRONICLE.—At the special meeting of the Com-
mittee of Spanish Bondholders, held this day, the fol-
lowing resolution ;were passed :
" Resolved—That this Committee continue persuaded
that ,even in the present position of Spain she is fully
able to allow five per cent. upon thenew stock into which
the Coupons in arrear are to be converted ; yet consider-
ing that his Excellency Senor Surra filial' proposes this
isra..g'exaent an a ungsana-t.e.- iteliewas tine 113roaaury front the
of the moment, while by pushing his
retrenchments and commercial reforms he is preparing
to resume the payment of tie regular five per cent. inte-
rest on the whole debt, from the Ist January, 1843, this
Committee having great confidence in the honour and
good faith of his Excellency, will endeavour to obtain
the general acquiescence of the Bondholders in the said
temporary arrangement, in the hope and under the un-
derstanding that every possible efibrt is to be continued
to reduce the mass of debt by the sales of national pro-
perties, and to resume the payment of dividends from
the Ist Jal.!iary, 1843, as aforesaid.
"Resolved, That the sentiments and professions of
his Excellency Senor Surra y Bull, expressed in his
letter of the 28th June to Mr. Thornton, Chairman of
this Committee, and in his speeches in the Spanish
Cortes on the 24th June, 22d, 23d, and 24th July, and
other occasions, are worthy of the Minister of a great
nation ; and that the extract from his Excellency's
speech communicated by the Correspondent of the Morn-
ing Post, under date of the 22d July, from Madrid, be
published for the satisfaction of the holders of Spanish
Bonds. "By order of the Committee,
" THOMAS THOR.NTON, Hon. Sec.
" Committee Rooms, Old Swan, Aug. 6, 1841."
We are much gratified to perceive that the Committee
have at last adopted the line of conduct that we have so
constantly advocated. We understand that in the course
of next week the Committee will publish a third Report,
and we hear that it will contain matter of great interest
to the holders of Spanish Securities.
POST.— We hear of Joint-stock Banks being under
advances to Joint-stock Trading Companies to large
amounts—companies, the success of which, in some in-
stances, would appear to be very questionable. The secu-
rity given may be thought commensurate with the risk,
but whether it be ,so or not is a point that can only be
ascertained when some crisis or other shall arise to put
the matter to the test. To us it seems highly injudicious
to be staking the capital of banks upon the prosperity of
any undertaking that may be interfered with by compe-
tition and numerous other contingent circumstances, nor
do we think this could very well ne done, did it not hap-
pen, unfortunately for the inconsiderate shareholders
who embark their properties in interests subject to the
control of they know not whom, that the leading and
influential Directors of the one thing are frequently the
leading and influential Directors of another. It is in
manufacturing districts such as Lancashire and York-
shire, and in great speculative communities like those of
London and Liverpool, that the greatest injury is to be
apprehended from the reckless combination of banks and
speculators, and the corrupt influences of Directors and
Manager.s of Joint-stock Companies.
SUN.—English Stocks were steadier to-day. Consols
were quoted 89+ to 89+, for Money, and 89+ to 89+ for
the Account, both closing at the highest rates. Exche-
quer Bills we 14s. to 16s. premium. The New Three-
and-a-Half per Cents. realised 98+ to the Three per
Cents. Reduced Annuities 89+ to 90, and the Old Three-
and-a-Half per Cents. 984 to j-. Bank Stock was dull
at 1691, and East India Stock at 247.
There was no rally in Foreign Stock to-day. At last
the Committee of Spanish Bondholders have attended to
the voice of their constituents, or at least of the ma-
jority of them, by accepting the proposals of the Spanish
Government for capitalizing the arrears of interest into
an Active Three per Cent. Stock, by which means we
may hope, ere long, to receive back a fraction,
at any
rate, of the immense sums loaned. The Active Bonds
.
were 191 to and the Deferred of 1839 at 15. Portu-
guese
New Five per Cents. were at 29i, and the Three
per Cents. at 18. Colombian were a shade better, viz..
201. Brazilian of 1839 were at 60+, Neapolitanat par,
Danish at 79, Russian at 114, and Dutch Five per
Cents. at 102+.
The Railway Shares were rather dull to-day. Great
Western shares were 191 to 184, the New 8 to 4 ; the
Fifths, 5 to + ; the Grand Junction, Half Shares, 50 ;
the London and Birmingham Quarter 17+ ; the York
and North Midland 29 ; and the South Western 13+
to 13+ premium. The Brighten were 6+ to 7 ; Chel-
tenham and Great Western 41+ ; and South Eastern 20i
discount. London Joint Stock Bank Shares were 2:i'
and Union Bank of Australia 6 to 54 premium.
The Foreign
Exchanges were flat this afternoon.
Bills on Paris were taken at 25f. 571 c. to 60e. ; °n Am-
sterdam at 12 34 to ; on Antwerp at 12 3+ ;on
Frankfort, at 1491 ;on Hamburg!' at 13 9+ ; and
on Trieste at 9 52 to 54.

BREAK DOWN OF SIR ROBERT REEL...—A
meeting of the Clarence Railway Company was
held at
the George and Vulture Tavern, Cornhili, London, on
Tuesday last, to inquire into the management and state
of affairs of the Company. The engineer, Mr. Child,
having been asked in the course of the inquiry whether
n,
during the past six months, coals the
inquiry lost for wat
.' Frequently ; but it tiros(
of engine power, replied,
from our having only a limited number of engines on
the road, many of them having to undergo extensive re-
pairs. We have the Coxhue, the Cornforth, and the Sir
Robert Peel in the shed. The. Coxhwa is undergoing a
thorough repair, and will -soon be ready for service."
A Proprietor : Is Sir Robert Peel in good repair ?---
Mr. Child : No ; Sir Robert Peel is always breaking.
down.—(Loud laughter.) So with the machine and so
with the man, ivlio, we verily believe, is likely to experi-
ence a greater break down before many weeks elapse
than he ever encountered before. i
yund thinger
LIBERTY OF THE PRESS.—Bonaparte held
awialesrlvlPgouesd tantacikts.
'the lilr.:rty of the press in the greatest horror ; and so
tolr illaebno lair"
f%ai ov!)cunrt, N %
thatas 1
il ii
(s. passionseemed
'Great lean as he was, lie wits sorely afraid of little pa-
ragraphs,
•