The Sun.
London, England, 1870-06-08 00:00:00

MORNING EDITION.

GOVERNMENT OF PERU.
ISSUE of £11,920,000 STERLING nominal Capital, 6
PER CENT, CONSOLIDATED BONDS, for the Construction of
RAILROADS.

Redeemable at Par by Half-Yearly Drawings, through the
operation of an accumulative Sinking Fund, of Two per Cent.
per Annum, commencing in 1880.

PRICE OF ISSUE 82} PER CENT.

In conformity with the Law of the National Congress, dated
the 15th January, 1869, which conferred upon the Supreme
Government of Peru the right of making contracts for the
construction of certain Railroads, and paying for the same by
the issue of Consolidated Bonds of the Republic of Peru, the
said Government has arranged for the issue of such Bonds, as
follows :

To the extent of
For the sonstruction of the Soles 27,600,000, or .5,520,000
Railroad from Callao to La Oroya „ 32,000,000, or £6,400,000
Total Soles 59,600,000, or 411,920,000
Messrs. J. HENRY SCHaonigh and Co., being duly authorised,
beg to offer the said Bonds for public subscription on the follow-
ing conditions :-
1. The Bonds will be in amounts of £l,OOO, £5OO, £2OO, £lOO,
£5O, and £2O, bearing interest at the rate of 6 per cent. per
annum, payable by Coupons half-yearly on the Ist January and
Ist July in each year (the first being payable on the Ist Jahuary
next).
The Coupons will be payable in London, in sterling ; in Paris,
at the exchange of 25 francs per pound sterling ; and in Amster-
dam, at the exchange of the day on London.
2. The redemption will be effected by half-yearly drawings at
par, commencing on the Ist April, 1880, by the operation of a
Sinking Fund of two per cent. per annum of the ehtire Capital,
plus the Interest on the redeemed Bonds, so that the entire
amount will be paid off at the end of 25 years from that date.
The Bonds so drawn will be paid off three months after the date
of drawing.
3. The Peruvian Government, however, reserves the right of
putting the Sinking Fund into operation before the date above
named, and of augmenting the amount to be drawn at any of the
half-yearly periods.
4. The Peruvian Government guarantees the exemption of
these Bonds from all Taxes or Imposts of any kind in Peru.
5. The Securities specially hypothecated for the due payment
of the Interest and Principal of these Bonds are as follows
Ist. The National credit of the Republic, solemnly pledged
by the Government of Peru, in the name of the Re-
public, with the general hypothecation of all its real
property and revenues.
2d. The Customs Dues of the Republic of Peru, amounting
annually to Soles 4,000,000, or £BOO,OOO.
3d. The Railways to be constructed from Calloa to La
Oroya, and from Arequipa to Puno, also the existing
. Railroad from Megia to Arequipa, with all their lands,
buildings, rolling stock, workshops, and appurtenances.
This latter Railroad has just been completed at a cost
to the Government of £2;400,000.
4th. The surplus proceeds of the Guano to be imported
into the United Kingdom of Great Britain and Ire-
land, her Colonies, to the Continent of Europe, and
to United States of America, after providing for the
existing 5 per cent. Government Loan of 1865 (of which
£7,192,200 is still in circulation), and of the guaranteed
Pisco-Ica Railway Loan of £290,000, The amount re-
quired for the annual service of the Loan of 1865 is
£1,000,000, that of the guaranteed Pisco-Ica Railway
Loan £20,800. The sales of Guano amount to 550,000
tons per annum, producing a nett Revenue of about
£4,400,000.
sth. After the Ist July, 1879 (the term fixed for the final re-
demption of the Loan of 1865), the present Bonds
become a first charge upon the entire proceeds of Guano
of the Republic of Peru (subject only to the guaranteed
Pisco-lca Railway Loan of £290,000), and no other Loan
can under any circumstance take precedence of these
Bonds.
6. The Subscription price is 82i per cent., payable in the fol-
lowing Instalments, via. :-
45 Os. on Application ;
£l2 10s. on Allotment ;
£l5 Os. on the 20th August, 1870 ;
£l5 Os. on the 20th October, „
£l5 Os. on the 31st December ~ Deducting £3 Coupon due
Jan. 1, 1871, less income tax
£lO Os, on the 20th February, 1871
£lO Os. on the 20th April ;
£l2 10s.

Subscribers have the option of paying in full all the Instal-
ments under discount, at the rate of 4 per cent. per annum, on
any day when an Instalment falls due.
Allowing for Discount on the Instalments the price is reduced
to Sli per cent.
The non-payment of any of the Instalments at their due dates
subjects all previous payments to forfeiture.
Scrip Certificates to Bearer will be issued against Allotment
Letters, to be exchanged for the definite Bonds as early as pos-
sible after payment of all the Instalments.
The Bonds will be signed on behalf of the Supreme Govern-
ment of Peru by a Special Commissioner appointed for that pur-
pose, and countersigned by Messrs. J. HENRY SCHRODER and
Co. Coupons for the half-yearly Interest due the Ist July of each
year will be attached.
Applications in the annexed form will be received by Messrs.
J. HENRY SCHRODER and Co.
The allotments will be made as early as possible after the close
of the subscription. In cases where the•amount allotted is less
than was applied for the balance of the deposit will be applied
towards payment of the next instalment, and, if more than suffi-
cient for that purpose, the residue will be returned to the
Subscriber.
Where no allotment is made, the amount of deposit will be
returned without delay. . _

Subscriptions will be opened simultaneously :
At the Offices of the Sociste Gensrale
In Paris pour favoriser le developpement du
Commerce et de l'lndustrie en
France.
In Amsterdam .. At Messrs. Lippman,Rosenthal & Co.'s.
At Messrs. Wertheim and Clompertz's.
At the Nord-Deutsche Bank.
In hamburg.... At Messrs. L. Behrens and Sons.
In Brussels ..... At Messrs. Cassel and. Co.'s.
In New York.... At Messrs. Baltzer and Taaks'.
but Scrip Certificates issued in respect of London Allotments can
only be paid on and exchanged for Bonds in London.
145, Leadenhall-street, London, 4th June, 1870.

[To be retained by the Bankers.]
GOVERNMENT OF PERU.

ISSUE OF £11,920,000 STERLING, NOMINAL CAPITAL, 6 PER
CENT. CONSOLIDATED BONDS, FOR THE CONSTRUCTION
OF RAILROADS.

To Messrs. J. Henry Schroder and Co., London.

Gentlemen,
Having paid to the London and Westminster
Bank, Lothbury, the sum of £ , being the required deposit
of 5 per cent., request that you will allot to the sum
of £ Nominal Capital of the above Bonds, and engage
to accept that amount, or any less amount which may be
allotted, and to pay the Instalments thereon, in conformity with
your Circular of 4th June, 1870.
Name.... .. . .......