The Sun.
London, England, 1834-09-02 00:00:00

DETAIL OF EACH LOAN.

First loan, contracted on the 6th of November, 1820.
The capital of the loan was in 300,000,000 reals vellon, di-
vided into 150,000 bonds of 2,000 reals vellon each.
The interest was 5 per cent., payable every six months in
Madrid, and beginning to run on the Ist of November, the
month already commenced.
Besides the interest of 5 per cent., the Government gave
an annual premium of 2 per cent., which made the interest
really 7 per cent.
The capital was to be repaid at par, in the space of 24
years.
The price at which the contractors took the loan made
therefore 30 per cent. of loss on the nominal capital, that
is to say, 70 per cent. It was payable in ten equal and
successive monthly portions, on the Ist of each month at
the public treasury, either in bills of exchange or in ingots
of gold or silver. The only exception was that the first
payment was to be made on the 15th of the current month
of November.

There were, moreover, created 150,000 billets de prime,
one for each bond. These premium bills had likewise their
premium, aitd th.,ir 'value wart fixed by the Government at
`3OO reals vellon for each.

The junta of public credit was bound to pay the interests
and half-yearly premiums of the loan. A§long as the junta
could command resources the payments were made ; but
means failed. It was agreed upon with the contractors that
they should take upon themselves the payment in Paris of
the interests and premiums, stipulating the exchange at 5
francs 40 centimes per piaster in specie. In their subse-
quent accounts the contractors paid into the Treasury, as
effective money, the coupons of interest and the bills of
premium which they had discharged.
Amidst these circumstances, in the sitting of the Cortes
of the 11th of October, 1820, the Committee of Finance
appointed to examine the conditions of this loan thus ex-
pressed itself :
" When the Committee of Finance had taken into consi-
deration the memorial read in the Cortes by the Secretary of
State for that Department, it immediately admitted the ne-
cessity of effecting the loan of 200,000,000 reals, which had
been proposed with the view of covering the deficit between
the receipt and expenditure of the public treasury. . . .
The committee will proceed to the examination of the pro-
position which the Minister may deem preferable . . . •
" The truly important point which must be kept in view
is to ascertain the interest which the loan in question annu-
ally costs us, at 12 57-000 per cent. Nevertheless, the
committee acknowledges that the interest is too high. -
" All being agreed that the capital of this loan, consist-
ing of 15,000,000 of piasters in specie, for the term of 24
years, at the annual interest of 7 per cent., and to be reim-
bursed by 20ths in the last 20 years, we shall have to pay
at the end of that period 30,225,000 piasters, in the fol-
lowing,manner :—the 15,000,000 for the reimbursement of
the capital, and the 15,225,000 piasters remaining for the
interest of the said capital, at the rate of 7 per cent. Those
who propose this negotiation undertake the risks and perils
of the sale of the actions in the foreign money-markets, un-
der the express condition of the Government recognising
and securing them the two following articles, viz., 4,500,000
piasters in specie for the 30 per cent. of reduction, by
means of which they purchase at the undertaking of the
Government the 15,000,000 of actions, the capital of this
loan, and 1,511,250 piasters for the commission of 5 per
cent. upon 30,22.5,000 piasters in specie, the amount of the
capital and interest."
The Junta of Public Credit, in the exposition which it
made on the 10th of May, 1832, on the scandalous result
of this loan, informed us In its account NO. 1, that in addi-

tion to the expense of the commission, the loan had cost
the Treasury the following sums :--
R. V. M.
Commission to receive the proceeds at frun 281,590 23
Conveyance of the proceeds from St. Sebas-
tian to Madrid 149,411 5
Ditto from Barcelona in gold ... 12,236 0
Expense of the first drawing of the lottery in
this capital
Cost of the composition and printing of the
actions and quittance,— - 409,140 32
Losses in the negotiation of the effects for the
replacement of the funds of the loan 3,677,682 25
Another loss different from the fcirmer upon
1,750,000 francs 275,392 15
Estimated loss on 37,306,190 reals vellon 11
maravedis of draughts on the Peninsula at
per cent. .. 559,592 28
For interest paid in advance before receiving
the proceeds, all bonifications deducted 5,163,811 0
Loss to the mint in striking the ingots 2,866,060 0
The commission of 5 per cent. on 30,225,000
piastres, capital and interest of the loan
amounting to 1,511,250 piastres in specie 30,225,000 0

Total expense of the loan 43,817,430 8
RESULT OF THE LOAN.

300,000,000 reals vellon at 70 per cent. are 210,000,000 0
Expense of the loan 43,817,430 8
Consequently there remains to the Government a net
sum of 166,182,569 reals vellon 26 mara.vedis, for which it
acknowledges itielf a debtor in the enormous sum of
604,.500,000 reals vellon—that is to say, that definitively
this loan has produced to the Government. only 27i per
cent. of nominal capital.
This is the first time, undoubtedly, that a commission has
ever been taken on the nominal capital of a loan, and at the
same time on the interest and reimbursement, which was
not to be effected until 24 years after.

SECOND EDITION.

SUN. OFFICE ~ Seven o'clock.

THE LONDON GAZETTE

tHIS!EVENING.

Commission by the Lord Lieutenant of the County of Northumber-

land.
11. St. Paul, Esq., to be Deputy Lieutenant, July 31.

DECLARATION OF INSOLVENCY.
WILLIAM ECCLES,. apothecary, 'Union-court, Old Broad-
street.

BANKRUPTS.

PH INEA S ISAACS, furrier, Union-street, Bishopsgate-street,
to surrender Sept. 16 and Oct. 14, at eleven, at the Court of Bank-
ruptcy. Hopwood and Foster, Chancery-lane ; Lackington, offi-
cial assignee, Basinghall-street ; Bennett, Manchester.
ROBERT KNIGHT VORLEY and JOHN WATLING,
drysa!ters, Bread-street-hill, Sept. 11, at twelve, and Oct. 14,
at eleven, at the Court of Bankruptcy. Broughton and Briggs,
Falcon-square ; Torquand, Copthall-buildings, official assignee.