The Sun.
London, England, 1856-12-23 00:00:00

LON DON, TUESDAY EV 11 NING, DECEMBER 23, 1856.

VENEZUELAN BONDS.

Yesterday a meeting of the holders of these bonds was
keld at the London Tavern to receive and consider a
new proposition from the government of Venezuela for
the arrangement of the debt. Mr. YOWLER, the chairman
of the committee of Spanish American bondholders, by
whom the meeting had been called, was in the chair.
The CHAIRMAN stated that in consequence of the nego-
tiations between the committee and the agents of the
republic two commissioners had been accredited to this
country by the Venezuelan government with proposals
for the settlement of the bondholders' claims. After
some delay, consequent upon the necessity the commis-
sioners were under of proceeding to Paris, the commit-
' tee on Saturday last received the following communica-
tion from those gentlemen :.
" Great Western Royal Hotel, London,
"Dec. 20, 1856.
"Sir,—ln strict conformity Ns ith our instructions we
made to the committee the proposition contained in our
letter of the 16th inst. Being, however, convinced that
the Venezuelan government knows that the first neces-
sity for the republic is to re-establish its foreign credit,
we offer in its name to capitalise the interest up to the
Ist of April next, with 3 per cent, per annum from the
said date, and to pay 2i per cent. on the active, and 1
per cent, on the deferred, for a term of five years.
" If after that period the national duties at present in
force in the established custom houses should exceed
5,000,000 the creditors can ask for an arrangement that
may then be compatible with the growing wants of the
country.

"For the fulfilment of this offer there will be applied
25 per cent, of the duties of the five principal custom-
houses of he republic, to be received by an agent of the
committee at a commission of 1 per cent., without any
other charge or responsibility on the part of the republic
after the delivery of the said 25 per cent.
" The committee may rest assured that this offer will
be made into a definite agreement, receiving the appro-
bation of the Venezuelan Government, who will omit
no effort to re-establish the credit of tl,O reptihtir '
" We, on our part, shall distinctly inform the Govern-
nient about the matter, and about the imperative neces-
sity to re-establish the for.ign credit of the republic,
from which the country will derive great benefits.
"The approbation of any agreement whatever is abso-
lutely requisite for its validity.
" We are, sir, your respectful servants,
(Signed) " JUAN GIUSEPPE,
" MODESTO URBANEJA.
"A. D. Powles, Esq., Chairmao of the Corn- '
mittee lof panieh Bondholders."
The committee having in a conversation which took
place with the commissioners since expressed an opinion
that the proposal would not be likely to be accepted in
the form in which it was made, a second comniunicatien
had been addressed to the committee that moining, ex-
planatory of the previous one, and of which the following
was a copy : 7_

"Great Western Royal Hotel, London, Dec. 22.
" Sir,—ln amplification of our note of the 20th inst.,
and in proof of the lively desire of the Venezuelan Go-
vernment and of ours to establish the credit of the re-
public, we have the honour to state to you that the pro-
posals made in the said note shall be limited to the term
of five years, at the expiration of which, that is to say
from the Ist of April, 1862, the republic will pay 4 per
cent, annually on the arrears of interest, 3 per cent, on
the active debt, and 1i per cent, on the deferred.
"That the oominisi ion of 1 is offered for colleoting and
remission of the funds, and on this basis we will regulate
with the committee everything relative to the issue of
new bonds and payments of dividends, the amount of
which shall be placed in London, liquidating the account
every six months.

"We have to lay before you the following—That the
position of the Government admits of its complying reli-
giously with our proposal for the first five years, but to
offer more would lead to a failure, as it has to pay debts
which have been arranged by diplomatic interference on
the part of several nations, and which proceed from revo
lutions and the law of Eapera, and on these accounts
large sums have already been paid to British subjects.
These engagements will be paid off in five years.
"In proof of the sincerity of our proposals, and to
tranquillise any fears which the bondholders may have as
to their approval by Congress, which, by our laws, is
indispensable, we offer that one of us will return to
Caracas by the first steamer, accompanied by a commis-
sioner of the committee, if they deem it fit to name one
who way personally conclude definitively this negotiation.
" We are, sirs, your respectful servants,
(Signal) " JUAN GIUSEPPE,
" MODESTO TIRIANETA.
"A. D. Powlep, Esq., Chairman of the Committee
of Spanish Bondholders."
The meeting would see that these terms were in advance
of any previous offer. Wbat the committee proposed was
that for the arrears bonds should be given bearing 4 per
cent. for the first five years; the commissioners offered 3
for five years, and to increase afterwards to 4. The com-
mittee proposed that the current interest of the active
debt should be reduced to 3, the offer of the commis-
sioners was 2i, and with regard to the deferred debt the
committe's proposition and the offer of the commis-
sioners were the same. Then the committee demanded
25 per cent. of the customs receipts to be allocated
to these purposes ; the former commissioners having
offered 20 per cent , the present commissioners
agreed to the 25 per cent., and in the conversa-
tion the committee had had with them they consented
that the agreement should be ratified under the sanction
of the Foreign-office, which to that extent would give it
additional force, and that the committee should appoint
their own agents at the five ports to whom manifests of
the cargo of every ship should be delivered on its arri-
val, as a security that the duties were properly charged
and paid, and the 25 per cent. of the receipts forwarded
to London. This the commissioners considered would,
by imposing a check upon smuggling, increase the
amount of the duties.

A BONDHOLDER—The interest is never to increase be-
yond 4 per cent. ?

The CHAIRMAN--It has never been proposed that it
should. In reply to other questions, Mr. Powles added

that the total amount of the arrears on the active debt
to the 14 of April nerz, would be 587,8001. ; and on the
debt, 111,0801. ; together iu round numbers, 700,000/ ,
which it was proposed to pay in these bonds bearing 4
per cent. _ _ _

- A resolution having been moved, authorising the com-
mittee to conclude an agreement with the commis-ioners
on the terms proposed, several proprietors expressed a
very decided opinion that nothing less than 3 per cent.
upon the active debt ought to be accepted—and after an
ineffectual remonstrance from Mr. Hazlewood and Mr.
Mocatta, members of the committee, that the effect of
their insisting upon such a condition might be to post-
pone the settlement for a couple of years longer, which
would entail a sacrifice of mere than equal to the half
per oent„ Mr. Powles altered the resolution in accord.
ance with what appeared to be the general view of the
meeting on this point, and with a condition inserted, that
the committee should not conclude any agreement in
reference to the active debt on terms less favourable than
3 per oeht. It was carried unanimously.
Another resolution allocating 5 per ceet. on the arrear
bonds to defray the expenses incurred by the committee
was also passed, and after a vote of thanks to the chair-
man the meeting separeed.