The Sun.
London, England, 1834-12-01 00:00:00

MADRID, Nov. 22.

The news of this morning is considered favourable to the
cause of the young Queen. The spirit of the army in Na-
varre has grown better, i❑ consequence of the arrangements
of Mina. The organs of the Government. disclaim all idea,
on its part, of a foreign active intervention, as " not only
repugnant to the self-esteem, but injurious to the honour of
the nation, and disadvantageous and prejudicial to the in-
&spilt able right to the crown,w•hich the nation had solemnly
declared to be vested in its legitimate Queen, Isabel II."
It is an extraordinary fact, that of all the kingdoms in
Europe, where the old laws for centuries decided the ques-
tion of the succession to the throne as belonging to the
daughter of the King, and in no case to his brother, those
of the ancient Kingdom of Navarre" are the most explicit
on the point. Some intelligent Navarrese, whom I con-
sulted on the subject, have declared that it is the clergy,
and not Charles V., who are the cause of this civil war, for
they, for their own purposes, mislead the people. The igno-
rance and inexperience of the officers of the Queen's army
is a crying evil, for those young men having procured ad-
vancement through interest, have not found it useful to
learn the severer duties of the service. The soldiers arc
brave, but when guided by ignorant officers, can effect but
little. Mina was obliged, on former occasions, to resort to
rigid measures with such officers, and it is thought he will
again be compelled to adopt a similar course. Three sol-
diers who had been two days in the condemned
I,.,ing guilty desertion,. were shot yest4idkiy outside the
walls of the city, in the presence of all the garrison of
Madrid.

The Gazette published this morning a despatch from the
Captain-General of Valencia, from which it appears that on
the 18th the party of rebels and Carnicer, after a chace of
40 days, were surrounded, and in a state of such misery
that they must either disperse or surrender. In Catalonia
the Captain-General was employed in following a party of
the factious, who have for some time been expected from
France. They had arrived to the number of 200, under
the command of a leader named Tarragona. Having met
with a warm reception from the troops and militia under
the Captain-General, a party of 40 escaped into France,
and the others separated ; 30, however, joined the rebels
under the command of El Muchaco, whom the Captain-
General was pursuing. He states that he was ignorant of
the measures which the French authorities took for the ar-
rest of those marauders, who were easy to be known, as
they wore red jackets. General Llauder, although lately
appointed Minister of War, remained in Catalonia, where
he is Captain-General, in order to put down this incursion ;
he is expected to arrive soon in this city.
The Queen-Regent, who, during a considerable time, has
remained in seclusio❑ at the country palace of the Pardo, it
stated to have the intention of coming soon to Madrid, as
the Minister of Grace and Justice, who had remained there
on quarantine from the cholera, is about to come to the
capital, where the malady has wholly ceased.
There have been 14 propositions for the new loan, of
which ten being anterior to the decision of the Procu-
radores on the Bth inst., relative to the recognition of the
Cortes Bonds and the foreign debt, are said to have for
object rather the amortization or sinking of all the Spanish
debts, than the advance of money immediately. The other,
from having been made by persons resident here, at least
for a time, there was a report that the term would be pro-
longed, in order to allow foreign capitalists time to make
further offers. Three or four of the proposals were made
on Thursday night, after 11 o'clock : the first 10 have been
for some time in the hands of the Minister. The whole
were given over yesterday to the commission named last
month to investigate the security of the offerers as well as
the conditions. Proposals have come from Amsterdam,
Paris, from houses who state themselves connected with
London capitalists, from Cadiz, and from Madrid. The
committee was at first inclined to delay the decision, and to.
have the time prolonged ; but after a consultation with the
Minister, they agreed yesterday, as the Royal order of the
19th of October stated, to take the present tenders into
consideration ; and as they have a period of three days,
their deliberations, wnich began at six o'clock yesterday,
will not finish until Monday, when the preferred proposal
will be known, and a report made to the Council of Re-
gency, who will send the decision back to the Minister for
his ultimate sanction.

The highest proposition is that of Betrand de Lys, who
offers to take the whole loan at 67, with a per tentage, how-
ever, and to make advances before it be brought into the
market. He states himself to be supported by some lead-
ing capitalists, but as some doubt still exists of his capability
to fulfil the engagements, his proposal, which is remarkable
for clearness and arrangement, will not, it is thought, be
accepted.
The proposal of M. Ardouin is to take the whole loan of
the 4,000,0001. sterling, or rather 400,000,000 of reals, at
60, and if in three months the scrip rises above 66, to take
the second half at 66, which makes the whole contingently
at 63. This proposition will, it is thought, be accomplished,
as the credit of this capitalist, and his not being opposed,
but rather favoured, by Rothschild, vl ho has considerable
claims against the Spanish Government, is very great here.
There were two other propositions made also at the last
hour—one from an agent de change in Paris, whose name
is, I believe Petit, and the second from a commercial house
in Cadiz, of German extraction ; but I have not been able
to learn what are the nature of their tenders, which are
not however, considered likely to be ascepted.

The following is a translation of the law sanctioned by
the Cortes and Queen of Spain, relating to the foreign
debts of that country, and to the new loan of 4,000,000/.
sterling, as published officially in the Gazette of Madrid on
the 18th instant :

" Donna Isabel 11. by the grace of God, Queen of Cas-
tile, of Leon, of Arragon, of the two Sicilies, of Jerusalem,
of Navarre, of Granada, of Toledo, of Valencia, of Gali-
cia, of Majorca, of Seville, of Sardinia, of Cordova, of
Corsica, of Murcia, of Minorca, of Jacn, of the Algarves,
of Algesiras, of Gibraltar, of the Canary Islands, of the
Indies, eastern and western, of the islands and terra firma
of the sea ocean ; Archduchess of Austria ; Duchess of
Burgundy, of Brabant, and of Milan ; Countess of Aps-
purg, Flanders, Tyrol, and Barcelona ; Senora of Biscay,
and of Molina, &c., and in her royal name Donna Maria
Christina de Bourbon, as Queen Governess, during the
minority of my dignified daughter, to all those who shall
see and understand these- presents—know ye, that having
judged it convenient for the good of these kingdoms to pre-
sent to the General Cortes, with reference to the regula-
tions of the 33d article of the Royal statute, a project of

!am relative to the arrangement of foreign debts, and a
!can of 400,000,000 reales tS;fetivos ; and the said project
of law having been approved of by both Clambers, as it
is hereafter expressed, I have thought good, and having
heard the report of the Council of Government, and of
that of the Ministers, to give :t the Royal sanction, as
follows :

" The General Cortes of the kingdom, after having exa-
mined with due caution, and observing all the proceedings
and prescribed formalities, the subject of the arrangement
of the foreign debt and the loan of 400,000,000 reales
uTetivos, which, by the order of your Majesty of the 4th
of August last, and conformably to the contents of the 30th
and 33d articles of the Royal Statute, was submitted to their
examination and deliberation, present respectfully to your
Majesty the following project of law, in order that your
Majesty mly be pleased, if you think it good, to give to it
the Royal sanction

" Art. 1. All the debts contracted by the Government in
foreign countries, at different times, and especially the loans,
as well anterior as posterior to the year 1823, arc debts of tIo
state.

" Art. ‘2.. The examination and liquidation of the accounts
with the loanholders shall be immediately carried into effect.
" Art. 3. All the foreign
‘debt shall be distinguished in fu-
ture into active debt and passive debt; its conversion into
active debt and passive debt shall be effected in the proportion
of two-third parts into active debt, and one-third into passive
debt.

" Art. 4. A new fund shall be created at -5 pet' cent., to
repre.?ent the active debt, into which the part of the old fo-
reiga loans contained in the active debt shall be converted.
The proportion of this reduction shall have for basis, not the
capital of the bonds as converted, but the interest accrued on
each of the said bonds. As the active debt proceeds in its li-
quidation, the payment of the said interest shall be effected.
Art. 5. Tke active debt shall embrace the debt with it 3
interest which the Government, in accord with the Cortes,
may create hereafter, and the part of the old.debt mentioned
in the 3d article, which is to participate in the payment of the
interest applicable to the active debt.
" Art. 6. The passive debt- is.cemposed of that part of the
debt mentioned in the 3d article which may not have been
converted into active debt. The unpaid interest of the old
'owns, as well as the billets de prime, shall be reimbursed in
securities of the passive debt. This part of the passive debt
shall successively become active in the space of 12 years, to
begin from the Ist of January, 1838, without prejudice to the
other means that may be applied to the repayment of the pas-
sive debt. The bonds of the passive debt shall not bear in-
terest ; ulterior proceedings shall be adopted for its amortiza-
tion and repayment.
" Art. 7. All the bonds and titles now representing the fo-
reign debt shall be exchanged for new ones within a period of
one year after the promulgation of this law. The Secretary
of State for the Financial Department shall take suitable
means that the said conversion or excl-_ange shall be verified
on the 'Changes of London, Paris, Amsterdam and Antwerp ;
after the expiration of the period above specified, all the old
bonds and titles which may not have been presented shall
thereby lose the interest. to which they may have a right.
" Art. 8. A sinking fund of a half per cer t. per annum shall
be provisionally applied to the whole of the new created fund,
which shall produce an interest of five per cent.
Art. 9. The sinking fund shall be exclusively applied to
the active debt ; but as soon as a certain sum, to be specified
her; after, shall have been purchased, this quantity shall be an-
nulled, and an equivalent sum of the passive debt shall by lot
be taken into the active debt, and shall consequently partici-
pate in the payment of the interest and of the amortization.
" Art. 10. No alteration shall be made in, nor is included
in any of those regulations, that part of the foreign debt cre-
ated to satisfy the French treasury in virtue of the treaty of
the 30th December, 1828, nor the English claims contained in
the treaty of the 28th October, 1828, nor those of the United
States of North America, to which the treaty of the 17th
February, 1834, refers.
" Art. 11. The Secretary of State for the Financial De-
partment is authorised to contract a loan of 400,000,000 of
reales effectivos, destined to cover the deficit in the Treasury,
and to defray the extraordinary expenses. „ He shall
contract it tinier the best conditions, and on the surest gua-
rantees.

" Art. 12. The Secretary of State for the financial De-
partment is authorized by this law to create a fund of 5 per
cent, corresponding to the amount of this loan, as also for the
amortization, which shall be fixed conformably to the basis
established by the Bth article.
" Art. 13. The same Secretary of State i 3 charged to form
the regulations required for the execution of this law, and
moreover to give it the greatest publicity.
" 1 sanction, and let it be executed,
• " 1, THE QUEEN GOVERNESS.
Signed by the Royal hand at the Pardo, Nov. 16, 1834.
As the Secretary of State, of Universal Despatch, of Grace
and Justice, of Spain and the Indies,
" NICOLAS MARIA GARELLY.

‘, Wherefore I command and ordain that the present law
shall be observed, fulfilled, and executed as a law of the king-
dom, it being promulgated with the accustomed solemnity,
that none may allege ignorance thereof, and that it be re-
spected and obeyed by all.
" Te the Count de '['oreno.
" Pardo, N0i..4-1.6."


MADRID, Nov. 20, THURSDAY NIGHT.—The ►Spanish GO•
vcrnment sends a courier to Bayanne to make some arrange-
ments respecting money which is to be paid to the army, and
I embrace the opportunity to state that several propositions
have to-night been submitted for the new loan, which are stated
to be advantageous. Nothing positive can be known respect-
ing them until to-morrow. _ _

It is thought that M. Ardouin, who is said to be supported
by Mr. Rothschild, as far as the claims of the latter are con-
cerned, will obtain the preference, in consequence of the high
credit of both houses here.

The news from Navarre is described as highly favourable.
Merino is said to have been totally routed, and the spirit of
Mina's army is stated to have changed for the best, as their
expectations of success are hourly more sanguine.
Several couriers are to start to-morrow, and I shall write at
length.