The Sun.
London, England, 1845-12-30 00:00:00

TIM GOVERNMENT PROPOSAL.

Article 1. The circulation of notes from five to 500
milreis, shall be limited to a district of one or more pro-
vinces, the Government being authorised to unite or
that purpose those that have one common port for the
whole or a part of their commerce.
2. The notes now current in the metropolis, and in
the provinces which may be united to it, shall be exa-
mined and marked only, and put again in circulation ;
those of each of the other provinces, or union, shall be
substituted by other notes, distinguished from each other
by a different stamp, which shall indicate the union in
which they are to pass, signed by two respectable per-
sons resident in such union.
3. The mites shall be distributed amongst the provinces
or unions, in proportion to the revenue, public and pro-
vincial, collected therein ; the counterparts, or coupons,
of the new notes, remaining in the respective provincial
treasuries where they were issued.
4. The regulations contained in the law of the 6th of
October, 1835, are applicable to the present operation,
the Government undertaking the remittance of the re-
quisite funds, by means of bills of exchange, drawn by
the respective provincial treasuries on each other, or on
the national treasury, and vice ye, sa, cancelling imme-
diately the notes received by the province which draws,
and issuing others in the one drawn upon ; one per cent.
on the amount thereof to be paid by the parties for can-
celling and replacing the same.
5. On this operation being completed, no further sub-
stitution of notes shall take place, except that which is
established by this law, namely, the gradual one of notes
payable at sight, in gold or silver coin, at the option of
the holders, the Government being authorised for this
purpose :

Sec. 1. To establish a new system of gold and silver
moneys, whose denomination and fineness shall
be the same as those now extant, but the weight
of which shall be the following :—viz., those of
gold, of 5 and 21 " oitavas ;" and those of silver,
of 4 and 2 " oitavas," respectively ; but without
any fixed value.
Sec. 2. To establish, in the metropolis of the empire, a
bank of circulation and deposits, the capital of
which may be raised to 15,000 contos of reis, in

shares of 500 rnilreis each.

6. So soon as this law shall be duly passed, the Go-
vernment shall announce the sale of the shares, which
shall be effected, in the first instance, through the me-
dium of the public treasury, or by a commission consist-
ing of at least three merchants, appointed by the Go-
vernment; and the choosing of directors shall take place
whene►er 1,500 contos shall have been raised, in paper
money, from the sale of such shares.
7. The directors shall consist of three chosen by the
Government, and six elected by the shareholders, who
shall be called together for that purpose by public ad-
vertisement and individual summons.

8. The above nomination and election may take place
at any time, but afterwards it must be renewed on the
first Monday in the month of January in the next and
every succeeding year ; for the purpose only of chang-
ing three of the directors every year, one of those ap-
pointed by the Government, and two of those elected by
the proprietary, to be determined by lot, until such
time as it can be established by rotation, according to
seniority.
9. The directors must be Brazilian citizens, or fo-
reigners having a fixed residence in the empire, share-
holders not being employed in any other bank, nor
Members of the Imperial Legislature, whether general
or provincial.
10. In case any impediment should occur to the elec-
tion taking place on the day appointed by the present
law, it shall be done so soon after as such obstruction

shall have been removed ; the former directors con-
tinuing in the mean time to act ; any vacancies that may
occur between the elections, shall be filled up, ad interim,
by the remaining directors.
11. The directors shall elect a president from among
themselves, and select the officers, clerks, and servants
from able and respectable citizens ; as also agents re-

quisite for the outdoor department, granting them
reasonable salaries.

12. On the president and principal officers being ap-
pointed, the Company of " the Bank of Brazil" shall be
considered completed, and as such fully authorised to
receive and to manage the capital, income, and any pro-
perty the Bank may at any time have in its possessicn,
and to enjoy all the powers which can, by law, be con-
ceded to such companies, even to the making rules and
regulations for its internal management, being not con-
trary to the laws of the state.

13. The Bank being constituted in the manner above
prescribed, the Government shall enter into treaty with
it, for the cancelling of the paper money now in circula-
tion to the amount of 45,000 contos, in a period not ex-
__

ceeding twenty years, on the following terms, viz,:—
Sec. 1. The Government shall not issue any more paper
of a forced circulation.
Sec. 2. The Government shall take on the national ac-
count, shares in the Bank, to the amount of
5,000 contos at any time within the first ten
years, the dividends on which shall be ex-
clusively appropriated to the cancelling its
paper now in circulation, or to payment of the
interest thereon during the existence of the
Bank.
Sec. 3. The Government shall pay into the Bank, in the
first ten years of its establishment, 1,500 contos
in paper money, including the amount of divi-
dends due to the Government. The Bank shall
add to this an equal amount of notes, which it
shall purchase from the produce of the sale of
shares ; and reserving therefrom 500 contos,
shall publicly burn the remainder, issuing
directly 2,500 contos, by loans or discounts, in
(its own) notes, payable in gold or silver on
demand.
Sec. 4. In the following ten years the Government shall
raise its contribution to 2,000 contos, annually,
together with the dividends to which the Go-
vernment may be entitled, and the Bank shall,
in like manner, retain 600 contos from each of
these payments, burning the remainder, and
issuing an equal amount in (its) notes, as above
stated, by loans and discounts.
Sec. 5, The Bank shall, employ the 600 contos annu-
ally reserved in the purchase of gold and silver,
which they shall convert into coined money, of
a hew die, at the Mint, and deposit them in its
coffers, in order to form a fund for the discharge
of its notes, payable to bearer on demand.
Sec. 6. Prom and after the twentieth year the annual
contributions of the Government shall cease and
determine, and the tank shall apply the divi-
dends accruing due on the shares of the Govern-
ment to the payment of any debt. which may be
due from the latter to the former, on the expi-
ration of the last period of ten years. The
accounts shall be adjusted fbr the mutual and
definite Indemnity of both parties.
14. The Government shall likewise give the Bank
credit for one per cent. commission on the amount em-
ployed in exchange for the precious metals, and what
further may be required beyond the 500 contos in paper
money, to realise 500 contos in gold and silver during
the first years of the operation.
15. The following items of income shall be applied,
exclusively, over and above the dividends arising from
the Bank-shares held by the Government, to the cancel-
ling of its paper money, viz. :
Sec. 1. The produce of all lotteries which may take
place in the empire, exclusive of those already
granted, being comprehended therein, not only
the existing impost, but moreover the part which
appertains to those to whom the grant is con-
ceded.
Sec. 2. The produce from the sales of all national pro-
perty not required for the public service, as like-
wise that arising from gold raised, and any other
minerals, including the revenne derived from the
diamond district.
Sec. 3. The produce of 3 per cent. deducted from the
Bank dividends, from the exclusive privilege of
playing-cards, and from any new impost which
may for the future be derived from the manu-
facture and consumption of snuff.
_ _ -

16. In case the receipts above indicated shall no
amount to the sum of 1,500 centos in the first ten, and
of 2,0004 in the last ten years, that sum shall be made
good by a grand annually in the Budget Law.
17. No authority whatsover, from any motive, nor on
any pretext whatever, can or shall alienate the funds
destined for cancelling the Bank paper, nor shall the
Bank be a party in any transaction which may binder or
delay the cancelling the same, under pain of the greatest
responsibilty.
is. So soon as the Bank shall commence issuing its
notes, no payment shall be made in the several public
departments connected with the receipt or expenditure
of the empire, which does not consist in the first year of
one-twentieth part in notes of the Bank, or in gold or
silver, in the second year, of two-twentieth parts, in the
third year of the three-twentieth parts, and so on till it
amounts to twenty-twentieths.
The Government ordering that the "oitiva" of gold
of twenty-two carats, shall be received or paid at such
public offices, at th.e rate of four thousand reis and that
of silver at 250 r els, The Government during the first
years, and particularly in the remote provinces, may
authorise the entry or omi,sion of these quantities in
paper money with the 'agio of the day, or which they
.may fix on the core:meneement of every financial year.
19. The followi:og shall be fundamental rules and re-
g ulations of thr, Bank,
viz.:—
5 cct. I. No proprietor yr shareholder shall vote who
dons not hold five or more shares, and no one
sleAll have more than ten votes, let him hold
whatever number of shares he may.
51 et 2. No power of attorney of more than six moi:ths'
date, nor granted by any shareholder residing
out of the, country, or by any one employed in
the 11:iuk, shall be considered valid. No one
Pei:son can hold powers of attorney for more
than 300 shares; nor refuse to exhibit his powers;
and shall, on its being required by mi.,- other
shareholder on tendering his vote, swear that he
believes his principal to be bona fide possessed of
such shares.
Sect. 3. All agreements relative to the transfer of Bank-
shares shall be null and void, which may not be
paid is full, as likewise those entered into by
persons whose wames are not inscribed in the
Bank-books ; and no share shall entitle its
holder to vN
thereon, or to receive any dividend due
for 150 .ho has not been in possession thereof
jvs nrevious to that OR which the divi-