The Sun.
London, England, 1841-01-08 00:00:00

were no less skilfully prepared than promptly carried
out. In this award of praise to whom praise is due, we
do not forget that the East Indian Government and
the Admiralty may fairly claim to enter for a large
proportion ; for without their hearty co-operation, the
splendid exploits of Syria and Acre, and the diplomatic
apparition and pacific victory of the " hungmaon," or
" red beards," in or near Pekin, would still remain to
be consummated But it must not be forgotten that
the efficiency of our glorious ❑avy, us now in a great
degree restored, but previously mismanaged and
dismantled so weakly and perilously by the Whig Go-
vernment is solely and wholly the meritorious result of
the constant vigilance and persevering excitements o:
the Conservative Opposition in Parliament, and of the
Conservative press without its walls.

MONEY MARKET and CITY NEWS.

(WEDNESDAT EVENING.)
CHRONIC LE —'l'ne near settlement of the China
question tollowing close upon the heels of the settlement
of the Syrian question, together with the surrender of
Dost Mohammed and the submission of the Beloochees,
brought by the overland mail, have produced very general
satisfiction, and given a renewed impulse to the English
Funds,

The statement that the Emperor of China has agreed •
to pay 3,000,0001., as an indemnity for the opium seized,
and fur the expenses of the expedition, has been much
looked to; but the mere expense of the expedition and in-
demnity of the opium are trines in comparison with the
extension which the trade and commerce of Great Britain
may derive front the completion of a treaty with the
Celestial Empire. The suoject is too vast and extensive
for us to discuss, but the results are likely to be mo-
mentous in the annals of civilization, and must present
themselves in a forcible manner to the minds of all.
What a noble field for British enterprise do we perceive
in contemplating the demand for British manufactures,
which would be produced by throwing open the m4rkets
of China—the supply of three hundred millions of s )uls I
Within the last few years (Mr. M.Gregor says) the
consumption of British cation has diminished to tise extent
of one-half in all the Rhenish Staten, and the consump-
tion is now supplied by the print manufacturers of Berlin,
Westphalia, and Sixony, and also by some very large ma-
nufacturers established in Wirtemberg and in the great
Duchy of Badeo,,and alssteby the Swiss manufacturers.
When the sprimrseitilon advinces, and the northern ports
re-open, we shall be able to judge how far the recent re-
strictive action of the Bank on the circulation has, by
forcing down prices, tended to improve the expo!t trade.
We cannot, however, expect that, under our existing sys•
tem of prohibitory and protective duties, the continental
trade will again resume its former importance. We must
look to our colonies, and the immense undeveloped regions
of the East, for the means of compensation.
The accounts of the Revenue for the year arc more en-
couraging than was generally expected, and the feeling
runs strongly in favour of the prosperity of 1841, as corn
pared with its predecessor. Tiie new year has certainly
an auspicious beginning.
Advice! from Rio Janeiro of the 29th of October have
been received ; the price of Stock had advanced to 77,
and the Exchange was 33 to 33i.

HERALD.—The important news contained in the
Overland Mail from India, communicated to-day in the
Morning Herald by extraordinary express from Marseilles,
impartsd. as might be expected. an immediate impulse to
flume Stocks, the effect of which might perhaps have been
still greater but for the unsatisfactory exhibit of the quar-
terly returns of revenue made public this morning.
'1 be meeting of Portuguese bondholders to-day was the
meat numerously and respectably attended which was ever
witnessed perhaps en any similar occasion, and altogether
the feeling, as the proceedings and resolutions, were alio-
geteer of the most uunninsous, manly, and decided cha-
racter. It is not necessary to particularize what tell from
the speakers further than to remark that Mr. Tasker, tins
gentleman in the chair, went into and directed the sr hole
eusinese with a right-minded earriestness such as seldom
has been seen before, and which, followed up vigorous,y
hereafter by himself arid fellow members of the committee,
to all its consequences, will go farther to obtain
dress for past damage and grievance, and security for future
good faith than all the memorials ever presented to this
Government, negotiations with that of Portugal, or appli-
cations to and remonstrances with contractors, which nave
been imagined, tried, and hitherto reiulted in smoke.
But in the sense of tee general good much more importaes
consequences must follow. Fur the immoral and most
iniquitous system of loan-jobbing will come in such case to
be sifted to its cure, aed some of the body of loan contrac-
tors might find themselves perhaps not exactly on the bed
of roses, that is of loan premiums by the million, which
they may now be dreaming of, It is not enough that loan-
jobbing be legislated against and the public protected tor
the future against the system of loan plunder to which they
have se long been left a free prey, but that the past
should be raked into, and for the sake of justice public
exerneles made of delinquents whenever and in tviratever
station found.
The morality of foreign loans or of stock-jobbing need
not now be discussed, for it may be admitted that the surplus
capital, or industrial accumulations, of a foreign county
may be applied with advantage in loans to foreign coun-
tries, where the obligations of common honesty are under-
stood, sad adequate securities in the shape of public reve
nues or property are made patent and assigned, when a
higher rate of remuneration can be procured than similar
investments in home stocks •neeld yield, or when no other
advantageous eludes of employing surplus capital can be
conveniently met with at home.. For example, when
money can be profitably loaned on substantial foreign
security to pay 6or 7 per cent, interest, whilst Consuls
only yield a return at the rate of 3/, it is no disadvantage
to the community, but the reverse, whilst it is a pons
tive gain to the individual, to make his investment in
the foreign loan. He makes a clear surplus profit
upon his capital of 2/ or .31 per cent. beyond what the
British Funds would render, whilst so much more
annual income flowing in to the individual is so much
annual addition to the money steel, of the community
at large,inasmuch as the public fortune, so far as money
capital, is made up of a mass of individual mites, or capi-
tals, great or small. The 2. per cent. surplus of interest
profit thus made and regularly remitted by the foreign
debtor will, in a given number of years, repay the amount
of the original capital lent, to the lender, who then re-
mains in the fortunate position of having been in receipt
of the whole of the ai per cent., which he could only have
received from the British funds, of regaining the amount
of his capital lent by the accumulation of the 2f per cent.
surplus interest profits within a certain period, and finally-
the supplementary advantage afterwards, unless paid off at
par, of the original capital still out and bearing interest so
muck beyond what could be obtained at home. It is re-
ported of a certain wealthy individual, whose stake in Bra-
zilian funds is no doubt more considerable than that of any
other person here or in Brazil either, that by this process
the capital originally invested in these funds has been re-
turned to him twice over ; that is, by the ex-difference
in excess of interest received beyond what he could
have ";btained by tho employment of the same amount
of capital in British stocks. Thus his original invest-
ments of one, two, or three, or more, hundred thousand
pounds have in amount been paid back to him in surplus
interests alone beyond what
lduration. If the surplus in-
woultdhehasavme
ebeoeprieryaiteioldneodybey:
tt'oarthwith laid out in the same
the British funds, leering bins still with the same original
in-
terest largerrdaci.n t w i
receivedtni n
at eprweeers
ose permingdtoof
betcoqr
manner as the capital, the amount of profit would of course
be materially enlarged. In the example cited, it is fair to
say, that, as understood, the investmeete in Brazilian stock
many years ago were at considerably lower than present
rates, and to a large extent in stock of the domestic debt
bearing a higher rate of interest,
This is the fair and justifiable side of the foreign
loan system, and may suffice for explanation that no
vulgar or ignorant prejudice is entertained against a
system honestly understood which adds to the income
and of course the substantial wealth of the country.
To the Bank of England, when real capital only is
lent out thus, and not credit, that is bill drawing, re-
drawing and paper accommodation finessed in either ways
(which some of the loan contractors are quite at home
about), to the Bank in such case no damage can accrue
by tbe sudden abstractions of masses of bullion, because,
when real surplus capital, and not credit, is lent, it never
can be of more than moderate amount. When twenty
millions, for example, are loaned out to foreign States
within one year, it is clear the operations are based on
credit and bill-drawing, because there can be no such real
excess of industrial accumulation or unemployed capital
existing in the country. The lean-j ibber in taking the
contracts therefore is speculating upon futurity and the
easiness of credit. By that credit abroad and at home,
and by exchange combinations founded on aibitrations of
exchange, he can manage to procure funds, that is bullion,
to the value of hundreds of thousands, or perhaps millions,
without in reality being in advance of one pound of solid
money himself for a long period, for the round of ex-
changes, or bill accommodation, may be gone over again,
if not again and again, should no money crisis intervene.
Whilst the Bank by the regular incoming' of large inte-
rests on foreign loans punctually paid, is regularly placed
in receipt of bullion funds, because such interests would
generally be paid in bullion, or in the equivalent, by pre-
venting bullion being drawn away fur payment of balances
of trade abroad.
But the case is materialty different in respect of foreign
loans where no interest is paid by faithless or unfortunate
states. The capital is sunk irretrievably, whilst at the
smuts time not one sueldo of interest is receivable. Add to
principal thus wrecked, and interest unpaid.
the compound
interest which equitably may be surcharged to show lois as
well as profit, and the amount of actual loss to the coun-
try is incalculable upon this description of insolvent
foreign debt. It will hardly be credited, but the fact, as
stated by Mr. Talker, may be assumed to be approxi-
mately correct, that the amount of capital lent to the non-
paying foreign states, with the simple interest accruing
added, ascends to about one hundred millions sterling, sunk
and lost, that is yielding no returns or interest, except re-
cently so far as the unfortunate state of Mexico, whiz!'
gave a signal example of
Britain), thus sunk and lost,
comment, and Chile, which unwillingly has been forced
addition
into a compornise, Observegat niets) hundredent "omil-
lions (one•eighth of the whole national debt of Great
gared, and Spain and Portugal themselves of
any
for compound interest whatever. Such are the loan bene-
ha that
faitht
these
or
fits conferred upon this country by the Governments of
Spain and Portugal.
In the meantime whilst the bondholders have been beg-
, lees prejudiced by
masses of money easily obtained and profligatelY squandered
cr appropriated by successive Ministries, loan contractors
have grown into unwieldy fortunes from nothing. Their
profits way be reckoned by millions, and Aladdin's lamp
which with proper strokes gave out gold, silver and preci-
ous stones in heaps, was, in comparison with stock-job.
bing, but as a farthing rushlight. It may be supposed
these people ran mighty risks, and that realising millions
of profit they made advances out of their own particular
capitals by tens o froidions sterling to the state contract-
ing loans. Nothing of the Ewt—not a sou of their own,
and the Min who dines in Si, James's Park with Duke