The Sun.
London, England, 1840-12-22 00:00:00

EVENING EDITION.

MONEY MARKET and CITY NEW S.

(MONDAY EVENING.)
CidliONlCLE.—Wit le the belliou in tie Bank of
Engleed is :tit rrajenere than one-half of what it ought
to br: to piece. thrrfflitution in a soutrd position, according
to the principles cf mantgemect declared by Mr. Horsley
Peliner ; on the other band, the securities held by the
Bank, according to the lest quarterly average, are nearly
one-third more than the rule of proportion prescribed by
that gectlernen would require. The bullion is 3.500,000!.
under the proper amount, and the securities about
6 8.39.0100/. above it. The surplus securities are the
result of the contracted state of the circulation, and s'iow
the! the Directors have ample mear.s of u.ing a Lather
restrictive action on the currency, if the state of the ex-
changes should require it, or obteinine" bullion by pledg-
ing securities as they did with iha deed weight last
year irt their transaction with the Bank of France. They
could, no doutet, sell securitie, for notes, and thus operate
further on prices. with a view of giving a favourable turn
so the exchauges ; but by doieg so they would increase
the exivieg pressure oe trade. We eheull liepo thet the
ii4ire• tore would rather employ their surplus securities
for the purpose of etnleavouring, to open sonic credit
acceuete abreed to 1.).! drewn irg inst, it order to produce
an it it ea of gold. Al teteesien et the cii-culetioe, in
order to m .ke the securities to, sere stn the rule of
arm:eget:tent expounded be Mr. Pafoter, is out of the
qesestion et present. It wriuli have e tendency to in-
eseese.: the eve by pa ices, and wouil piece Lie, pre-
rioe el still mere belaw. the rat o
ft to, Itewever, in the peer f,i the u:rectors to
reeenatwee pee of their seeuritii s fur stet k, in:tead
1.4 selling them for :tote:, or of pledging them as
a tuesu of procuring bullion ; but that would not
alter the amount of :ecuritie s heli,, it would merely
change their character and if such a step were re-
sorted to we should view it nyr..,iy as a preparatory move
tea the appearare of their broker as a seller of Consols.
We do trot go into the opiaiel eivee by Mr. Jne-s Loyd,
1144 the blueder of the Directors le regard to the manage-
anent of their secul'ltie: has been " the felly of suggesting
iitue-h a rule as that of keeping them,at a fixed amount, aed
*ex the deperture from it ;" bet rAile no one, we presume
to say,. -will assert that the prepor.len of bullion and coin
in the -Bank should be le e •.t r :e -third cf the circula-
tion aird deposits, and Li, t!i e AO,OOO/. now supposed
to be la die cotfas aro tree. t•-,,tesv what it ought to be,
there are certainly many who will say that it ie fully" to
keep se lergt an amount of securities in proportion to it.
11, thee, they could Wilt a part of these securities to ac-
-ceoirt is order Co obtain a supply of bullion, it would be a
judieioue teartsection; arid, if net, we suspect they must
,truer to the chapter of accidents to ereible thl'in to keep
what they have until the exchangee assume a more favour-
able aspact•
13esieess has been brisk to-day in Spanish Boyd:, which
base realise d an advance of t per cent. on the price of
Saturday. Th,, improvement was produced by the finan-
•eial decrees Which appeared in the Madrid Gazette of the
Ith instant, directing the daspocal of national and church
ieopertiee.
The Madrid Gazette of the above date contains an ex-
position frosts M Gamboa to the Council of Ltegency, de-
claratory of his intention, to do justice both to the home
and foreign creditors, through the sale of these properties,
which is followed by four decrees for carrying his plan into
.effect, and whereby the Regency, in aecerdai.ce with
Ipoaers formerly conferred upon the Clown by former
,Cottes, ordain :---
lat. 'that the purchasers of national property be allowed
to pay their instalments by one-third in bonds of the active
foreign and home debt, Five per Cents. ; oiie-third in
home sod foreign debt, without interest, and the payments
to extend over a period of year.
2d. That to parties who choose to pay up in full within
a s,tated time, discooct to be allowed uuou a scale from 5
to 24 per cent. upon the purchase price.
3d. Certain Government annuities arc ordered to be

redc.eraed withio ninety days from the publication of the
'decrees ; and, in default thereof, their capital to be sold,
.according toe project of law which the Minister proposes
to lay before the Cortes. By the sale of these annuities
M. GAmboa expects to be able to cancel all the passive
and deferred debt, both external and internal.
4th. Sixty days are allowed the various municipalities
of Spain to make application to the Government, showing
what convent ed,fiees situated within their bounds they may

require for objects of public utility, and then the whole
.remaining convent and monastic edifices and lands agached
throughout Spain are directed to be sold by public auc-
tion, the payments to be taken exclusively in coupons of
the home and foreign debt at par.
The carrying out of these decrees cannot fail to be fa-
vtiurabla to the Spanish bondholders; and it is important
te observe that they place their borne and foreign credi-
tless, with one exception, upon an equal looting. By per-
severance in the same line of upright and enlightened
conduct, M. Gamboa will do much to improve the c‘mdi-
tion of his country, and be enabled, at no distant period,
to usdertake further measures to restore the national credit.
We stated some tisse since that the Chilien Minister had
reed to recognize 3 per cent. as a basis of sealement
f the arrears of interest due on the foreign debt ; but
tliao we had not heard when the interest was to commence
rf)bo paid, nor whether is was to be payable at the rate of
3 pee cent. at first or not. Letters now in London state
that die Minister of Chili has proposed that
stow for the arrears should remain without inter-
est for tee years. and then commence in an active 3 per
cent. rate ofinterest. It is not likely that these proposals
Will be accepted by the bondholders, or that they will be
maintained on Alba part of Chili.

is now understood with respect to the
Walsall, South j
raid
Bank, that all the claims
upon it will be paid in full, some of the more wealthy
.shatelsolders having prudently interfered, to save them-
sabres from worse en.Qequencts. The subject of its diffi-
cowl; is only worth recurring to for the purpose of men-
tioning the peculiar features of a "balance sheet" which
his 'been produced to the shareholders in consequence of
those einharrassinents. Though on a small scale, it is
-exceedingly instinctive as to the actual condition of some
tot these undertakings, more especially in the country, and
and the singularly shall means upon which they have corn-
vaaecod and continued to carry on their business. We find,
for eaimple, returned as the " capital" of the Walsall batik,
the 'important sum of 35,000/., a sum so small that pro-
belay no decent private banking-Luse with two or
three partners ever ventuved to begin business with it.
But ehe employment of this capital is as curious, if not
:quite so novel, as its small amount. since it i 3 shown by
:the document just referred to, that in the assets a sum of
W,OOOl-, or half as much again as the capital, is repro-
/gated by "overdrawn accounts." If these accounts could
he submitted to any strict analysis, the probability is, that
the flank could not be said in fact to possess any capital at
.ali, nor any resources beyond the liability of its share-
Lholilers.

The passing of the I,:w for settling the estimates of the
lea r 1838 by the French Legislature has been discussed in
Le Commerce. According to the projected law, the ac-
counts for 1838 would be liquidated in a manner favour-
able to the Treasury. The ordinary and extraordinary
expenses would have been 1,133,000.000 f , and the re-
sow cea 1,149,000,000 f. so that the excess of the latter above
ithe former would be 14,000,000 r. At the sane time it is ob-
tas'vcd, that the account for 1838. considered by itself, far
frora.exhibiting a surplus, presents a deficit of 22,000,000 f ,
Since the surplus of 14,000,000 f. :s only obtained by
carrying' into the account for 1838 a surplus of
.30,000,000 f. arising from the accounts of 1836 and 1837,
csubtracting , the deficit of 22,000,000 f. will appear
as the result legitimately obtained from the &Uteri:cots
real uclonging to 1839. It is further remarked, that
this atarphis et the receipts arising from the :ccounts of
163 d &kJ 1837 proceeds in a great measure from the ex-
tranroistary resources ',ranted for the armaments of the
flrt.t tire years of the Government' of 1930 It is o`-.jetted
that :Ire discussion of the law has been mush too shunt for
the information which the Chamber might otherwise have
paltered trout it. and further, that the great volume con-
taining the naval and military accounts which is annually
presented to the Chamber does not aceot-npli:ili its pur-
wcse, but is undigested ma,+s, while the parties who
wive employe.' to draw it up ticeeive very large Ealaries.
re abe Mei:deur the statements for the year 1838 are
riven detail. In the. section headed " Public Debt"
ilia Viva per Cent. fixate,: arc set down (in round num-
ar 1.47,800.000 f. ; the Four-and-a-Half per Cents.,
at 1,00 ),000f ; the Four per Cents., at 12,000,000 f. ;
the Three per Cents. at 36,000,0001, ; and the eitikitT
Fand,, a t .0,000 000 f.

Po3l' —The meeting of Fri.:nisi] and Portuguese
'X: oaswry bondholders held to-day at the London Tavern
*nutacrously and most respectably attended, The fan-
gee employed upon the occasion, in characterising the
eSiteuet of the Government; of she Peninsula towards
tinek foreign creditors, was strong and energetic, though
mere'so than that conduct warranted, which was de-
tOred,.and admitted on all hands, to have been disgrace-
ftslibeyond all parallel. If there were, in one or two
an approach to intemperance, sod even tihe-
rerigeb,. on the part of the speak. Is, in alluding to the cool
ir,cilltilraee exhibited by the contractors of the loans
thane' which they have so grievously suffered, this too,
in oar ..311trlient, was perfectly natural, and no more
:ti %a thips‘t have been expected by that class of
long,, ago. Men are not to be entrapped
lat•
ti ,dosetilatians that provie ruinrus to themselves
nitie3, and see those by whom they have been
*Ong :ate fresh " cperations," as they are
anotriter class of dupes are to be simi-
.l747-tiad, without complaint. It is impossible, and
'ffelefertly uireasonable, to imagine that the indignation
of the persons so circumstanced is to bo confined to their
own batoms. Although the meeting was convened for the
pnipose more particularly of taking into consideration the
chime arising upon
_ the Treasury Bill issues of the two
Governments, the discussion soon diverged into the gene.
.ral breach of credit committed by Spain and. Portugal, the
distinct, separate, and especially binding cuaracter of the
is question being, however, first unanimously as-
seated to. It were, perhaps, 59nerfluous, therefore. on
onr. part to dwell upon this. ylortion of the subject.
We rennet refrain from hotscin;.f_ au ob;•erbation made
11 the Chaiiman (Mr. Joseph 'rstt`L',r)► the force of' •
which w.s fully recognised by the
that, now that he saw the new Spanish Milicii:tl!'nrC,oof.el4..o.ign'aannede
(Gamboa) directing his attention to the claims, 1
conceive(!, the
domestic, oil his country, this was,
time of all others to insist upon a line of distinction being
as he conceii
drawn between tho two classes of creditors, inasmuch as
the capital of the external debt was pared down to two-
thirds of its original amount, and the eleven years' ac-
=cumulation of interest converted into a deferred stock,
Ito be mains in twelfths by something of a contempti-
ble IOU?y scheme contrived by Toreno, the latter
being, was added, and most truly, by far the
most sacred part of the debt, and all this while
the borne claims were left wholly untouched. Mr. I
himself of the opportunity afforded
Tairn a decvai
laring in public the sense he enter-
tained of the obligation which the Spanish bond-
holders, particularly the holders of the Treasury Bonds,
are under to General Alava, his Excellency having ex-
erted himself to obtain a settlement for them with a zeal-
ousness worthy of his exalted character a character