The Sun.
London, England, 1860-04-04 00:00:00

THE PORTUGUESE GOVERNMENT
AND SIR MORTON I'ETO.

The Portuguese Government are attempting to
mitigate the effect of the recent exposure of their
dealings in the matter of the railway concession
lately withdrawn from Sir Morton Peto and handed
over to M. Salamanca. They omit, however, as is
frequently the case in defences of this kind, to
touch upon the main point at issue. The Portuguese
Cabinet had a technical right to annul the conces-
sion to Sir Morton Peto, and therefore no formal
complaint can be raised against them on that score,
whatever may be the opinion of their conduct by
those well-informed of the details of the case. But
Sir Morton had a pecuniary claim for specific
expenses, and the allegation is that the Finance
Minister recently admitted the principle on which
this claim is based, but, upon being pressed to con-
firm in writing what he had stated verbally, de-
clined taking any steps, on the plea that it might
prejudice the success of the Ministry in certain
discussions pending in the Cortes. For a Govern-
ment to attempt to evade, or indefinitely to post-
pone, a money question with an individual to serve
political aims of its own would be looked upon in
England as highly discreditable, and it is in this
aspect the matter at present stands. Can the Por-
tuguese Government give it a different face ? If
so, they will have an opportunity, as the claim has
been placed in the hands of Lord John Russell.
Meanwhile, it will be useless for them •to seek to
raise a cloud by taunting Sir Morton Peto with the
fact that he was willing to undertake the railway
on condition of receiving Portuguese Bonds, and
that it is " a contradiction in terms " for him now
to say a word that would prejudice the character of
these securities. The English public have no con-
cern with Sir Morton's opinion about Portuguese
credit, but if they are to be asked for further loans
they have a considerable interest in ascertaining if
the Portuguese Government are at this very hour,
after all their past lapses, acting meanly and in bad
faith to any one who has placed trust in them.
Moreover, even if Sir Morton has experienced a
change of view, this is nothing more than com-
monly occurs with a creditor who fails to get his
bill. Possibly, also, Sir Morton was ignorant
of the fact that Portugal has for some time past
been in the habit of creating bonds and putting
them from time to time on the London market with
as much secrecy as possible, to avoid the honest
formality of an open loan. The correctness of the
belief professed by the Finance Minister, that
14,500,000 could now be raised in London at a
price, including all expenses, much higher than 33,
is, of course, a point to be settled only by actual
experiment. He considers that some measures lately
introduced for benefiting the Portuguese revenue
should impart confidence, but, as the first among
them appears to be " the suspension of the sinking
funds of all the loans," the prospect for fresh loans
seems not to be rendered more inviting. Something
is added about the benefits the railways themselves
will produce in the country. The railways, how-
ever, have yet to be made, and when made they will
be worked under Portuguese management. As to
the increase of commerce that is talked of, we must
bear in mind that the latest commercial fact in con-
nection with Portugal is that when she found the
English duty on her wines would be reduced, with-
out any stipulation on out part, she at once denied
an intention previously attributed to her of modi-
fying her restrictive system with respect to the
admission of English merchandize.— Times.