The Sun.
London, England, 1859-02-14 00:00:00

EXCHEQUE.R BONDS.

Among the Parliamentary papers just issued is
one furnishing the particulars of an application
made by the First Lord of the Treasury and the
Chancellor of the Exchequer to the Governor and
Deputy-Governor of the Bank for advances to Go-
vernment from the sth of Jan., 1858, to the sth of
Jan., 1869. It relates to the payment of
£2,000,000. Exchequer Bonds which fell due in
May, 1858, and to liquidate which the Chancellor
received authority to raise, if necessary, the same
amount on a similar security. As a document of
interest it may be appended. By another Parlia-
mentary return from the Bank, made up to and
dated the Bth of Feb., 1859, it appears the sum of
£1,000,000 has been advanced and remains unpaid
on Exchequer Bonds, redeemable the Bth of May,
1862.

"At a Court of Directors at the Bank, on Thursday,
April 29, 1858, the following letter from the Chancellor of
the Exchequer having been read, viz. :
" ' Downing-street, April 23, 1858.
" Gentlemen,---The resolution in committee of ways and
means, authorising her Majesty's Government to raise a
sum of £2,000,000, by Exchequer Bonds, having been
passed, I am anxious to complete the necessary arrange-
ments for the liquidation of the bonds due on the Bth of May
next, with the least possible delay.
'" If it were certain that the Government would require j
to exercise, to the full extent of two millions. the power
granted to them by the House of Commons of raising money
by the issue of Exchequer Bonds, it might be advisable to
offer to the present holders of the bonds falling duo the
option of receiving payment either iu new bonds or in
money; but as the Government are desirous of taking ad-
vantage of any improvement which may take place in the
public balances, arising either from an increase of revenue,
or a diminution of expenditure, or the repayment of monies
due to the public, in order to avoid if possible the necessity
of incurring the full amount of debt authorised by the reso-
lution of the House of Commons, it appears to me desirable
that the whole of the bonds due on the Bth of May next
should be paid off in money; and to enable her Majesty's
Government to effect that operation it is necessary that they
should raise the sum of one million sterling by an imme-
diate issue of Exchequer Bonds.
"' I have, therefore, to request that you will inform me
whether the Bank would be willing to take Exchequer Bonds
to be dated on the Bth May next, bearing interest at the rate
of £3 5s per centum per annum, and redeemable at par on
the Bth May, 1862, to the amount of one million sterling,
paying that sum to the account of the Exchequer ; and,
rurther, whether the bank would agree to take, later in the
year, but not earlier than November next, an additional
million of bonds, at the same rate of interest, to be dated
Bth November, 1858, redeemable at par on the Bth of May,
1863, with the condition that her Majesty's Government
should be at liberty to cancel the agreement as to the second
Million if they should consider, when the time arrives, that
it is not required for the public service.—l am, See.,
(Signed) it B. DISRAELI.
g To the Governor and Deputy-Govemor
of the Bank of England.'
"The court agreed thereto."