The Sun.
London, England, 1845-04-17 00:00:00

PORTUGAL.

SOUTHAMPTON, APRIL 16 —The Peninsular and Oriental Com-
pany's steamer Montrose, Captain G. Wilson, arrived this morn-
ing, at half-past two o'clock, from the Peninsula, bringing the fol-
lowing mails :—From Gibraltar, Cadiz, Lisbon, and Vigo; the
Oporto mail could net be got off. Her dates of departure are as
follow :—From Gibraltar, April fith ; Cadiz, 7th ; Lisbon,
9th ; and Vigo, 11th. At Lisbon the Chamber of De-
puties had been engaged for some days in discussing
the following measures brought forward by the Government :-
Ist. The approbation of one contract entered into with the " Com-
pany of Public Works." 2d. The alteration of the law of July,
1643, for the formation and improvement of roads. 3d. The
establishment of the system of direct contributions. 4th, The
fixing of the amount of the new industrial, predial, and
personal contributions for the financial year 1845.1848.
sth. l'he granting of more ample powers to the Commie.
sioners for the assessment of the decima tax. Gth. The ap.
prove' of the contract for the conversion of the foreign
debt to a permanent Four per Cent. Stock. 7th. The ways
and means to meet the public expenditure up to the 30th of June
next, and the extraordinary expenditure for the year 1845.6.
Mr. Avila began by asking the Minister of Foreign Affairs whe-
ther it was intended to count as part of the four millions sterling
to be converted in the first instance, the bonds to the amount
of 548,9161., which had been deposited in pledge for
a much smaller sum, which the Government had been
obliged to raise on a former occasion; and, if so, whether
the contractors, Barons Folgosa an,* Junqueira, would be
allowed a commission of one per cent. on that amount too ;
which he said would be a most barefaced job, since the
interest paid was not upon the full sum of 548,9161., but only
upon 70,0001. for which they were deposited as a security. The
Minister, in reply, said that he was net prepared at that moment to
satisfy the curiosity of the honourable d• puty, but that he might
rest assured the questions should be answered in due time. Mr.
Avila then entered into a long discourse,the drift of which was to
prove that, If the Government, instead of effecting the proposed
conversion, were to apply the amount of the additional interest which
they would have to pay to the gradual redemption of the debt, the
onus weighing upon the country by the time the ascending scale
reached its highest point would be less than it would be by
the plan in contemplation ; and that, if such measures were taken
as should ensure the punctual payment of each half-year's divi-
dends up to the time when the rate of five per cent. is to cow.
mence, the Portuguese funds could easily be worked up to par,
and the Government would then be enabled to effect the conver-
sion of the whole debt without the necessity of making any sacrifice.
In the sitting of the 3d instant the Minister of Finance said
that when Mr. Florido went to London in 1843, he was instructed
to broach the subject of a conversation to the bondholders, but that
shortly after a, riving there, he wrote to say that such a proposal
would then be p-emature. That, subsequently, similar instruc.
Lions had been sent to the financial agency, who, however, never
took any steps towards that end ; and that it was in this con.
juncture that the contractors, Folgosa and Junqueira, had come
forward and offered to undertake it. He (the Minister) had at
first objected strongly to the contract, and only agreed to it on being
fully convinrel of its great utility in saving the country fromt he
crushing burden which the ascending scale of interest would, ere
long, bring down upon it. The Minister of Foreign Affairs argued
in support of the conversion, by means of which, he said, and of
the sinking fund forming part of its plan, the whole debt would be
cancelled at the end of sixty years.
On Saturday the debate was resumed, and brought to a close
rather abruptly. In answer to a question from Avila, the Minis.
ter of Foreign Aftleirs said, that by the conversion plan, the Go-
vernment would only be obliged to redeem the cepital of the debt,
and not 'he accumulated arrear of interest unpaid.
Messrs. Azevedo, Mello, and Carvalho spoke against the projects,
and Messrs. Ferrao and J. Cabral, the Minister of Marine, in sup.
port of them; and on being put to the vote collectively they were
carried by a large majority, In the course of the debate the Mi.
nister said that Mr. Thornton, the principal holder of Portuguese
stock, was opposed to the conversion, but that the Government had
hopes that he would be brought to agree to it, which was an im-
portant object, as that gentleman had much influence over the
smaller bondholders,—lierald,