The Sun.
London, England, 1842-12-14 00:00:00

MONEY MARKET and CITY NEWS.

FROM THE MORNING PAPERS OF YESTERDAY.
TIMES.—The announcement of the Canada lean,
which was inserted in the Times of to-day, was also
posted up at the Stock Exchange, according to cus-
tom, and copies were sent to the Bank of England.
The members were not in the least taken by surprise,
as since the passing of the Act by which the loan is
authorised, the appearance of such an announcement
has been almost daily expected. The time of such
appearance is generally admitted to be remarkably
well chosen. At the present low rate of money any-
thing like a profitable investment, guaranteed by the
British Government, will probably be caught at with
avidity, and the present stock, which bears 4 per cent.
interest, will at the price of 106 yield .about 31.
Hence, though the price that will be tendered is
merely a matter of conjecture, it, is believed that the
tenders will range tolerably high. But, besides the
abundance of unemployed capital, there is another
cause for supposing that the present time is particu-
larly opportune for bringing forward a stock bearing
a high rate of interest. This is the belief which
pretty generally prevails, that a reduction of the
Three-and-a-Half per Cents. is contemplated by the
Government. Should such a measure take place, the
Canadian Four per Cents., which will not be redeem-
able till twenty years have elapsed, will be the only
Government stock in the market commanding an in-
terest above 3 per cent. The fear of a fluctuation in
the value of money, which might render it just as
scarce as it now is plentiful, will, it is believed, be the
only check on the eagerness with which the new loan
will be sought. The sum to be raised not exceeding
300,0001., it is thought no disadvantage will arise by
making the loan an open one, instead of disposing of it
by contract, though had it een for a large amount
difficulties might have arisen.
According to the advertisement, the bonds repre-
senting the loan will be " redeemable" in twenty
years. The capitalists, who are regarding the value
of the stock as a banking investment, observe that
there is a little ambiguity in this expression, us it does
not point out whether it shall be obligatory or optional
on the part of the Government to redeem at the end
of the specified time.
Mauritius papers to the 3d of September have ar-
rived in the city. These allude to the issue of one
dollar notes, rendered necessary, it appears, by the
absorption of specie by the banks, and other unfore-
seen circumstances which have contracted the cur-
rency of the island. The calling in of part of the
coinage had added to the serious inconvenience of the
mercantile community, who had made serious com-
plaints on the subject to the Government, who at last
consented that this new paper circulation should be
brought into vogue to give greater facilities for the
transaction of business. There is little else in these
papers worth notice. An Order in Council had been
published advising proper regulations for the import
of Coolie labour into the colony.
To the merchants here it is stated, as a matter of
fact worth knowing, that though in the new system
of business which has sprung up ik the market, two
and three months' credit is allowed buyers, they still
receive as heretofore the rates of discount, varying
from six to ten per cent. It is said there would be no
great deal done if these deductions were not conceded ;
and that, therefore, to keep business alive it is sub-
mitted to.
The prospects of Spain, in a financial point of view,
are manifesting some improvement. By letters of the
2d instant, received this morning from Madrid, it
appears that the money for the payment of the divi-
dends on the stock of. the capitalised coupons of the
Five per Cents. was sent forward the day before to
London. A competition has arisen in Madrid for the
quicksilver contract, the produce of the celebrated
mines of Almaden, in regard to which the Minister
has shown himself regardless of all private influence,
in consequence of which the Government is likely
to obtain much better terms than heretofore. The
project for conducting the sale of the quicksilver
through the Bank of San Fernando having gone off
on some point of form connected with the rules of that
institution, a tender is said to have been put in direct
to Senor Calatrava by the Messrs. Rothschild, with a
very considerable advance on their last contract, and
this had been followed by a proposal on the part of
some London capitalists, by an agent now in Madrid,
of still better terms. This latter had intimated his
readiness to bid at the public auction, to which the
Minister of Finance is bound to submit the produce
of these mines, as high as 65 dollars the quintal, and
for the whole net produce for the ensuing seven years,
which it is supposed will not be less than 140,000
quintals ; and further (which constitutes the great
novelty of this proposal), to pay for the whole in hard
cash, as follows :-40.0001. in six days after the Mi-
nister accepts the pro. position, and 6.0,000/. after the
auction has been announced by public advertisement;
further, if successful at the auction, he undertakes to
pay 900,0001. more in twelve monthly instalments.
Ile also engages to pay to the mining establishment
at Almaden during the seven years of the contract
560,0001., to provide the necessary funds for the
working of the mines, and the transport of the quick-
silver to Seville, making in all 1,560,0001. to be ad-
vanced in hard cash. As soon as his advances have
been equalised by the delivery of the quicksilver, he
is to pay for each new quantity in eight days after its
delivery at Seville. No doubt can exist, with the
vast natural resources which Spain possesses, of the
possibility of placing her on the footing of other civi-
lised countries in point of credit, and the main thing
now required for that purpose is the organisation of a
steady and powerful Government, calculated to attract
and to retain public confidence.
Inquiries are constantly making by Correspondents
respecting the transactions of the Committee of South
American Bondholders, and more especially what
they are doing in regard to Buenos Ayres and Peru,
States which obtained their loans on very high terms,
during the height of the loan mania in this country,
who got all their funds, moreover, regularly remitted
to them, and received them at a time when they were
of the most essential service. As to both of these
States, the evidence of ability to pay is of the most
clear and satisfactory nature. In the instance of
Buenos Ayres, it is established by official documents
published by that Government, and which have
been already referred to ; and in the case of Peru,
though not exactly supported by similar evidence,
the wealth and natural resources of the country
are notoriously much greater than Buenos Ayres,
while in both the debt to this country amounts
to a very insignificant sum indeed, viz., Buenos
Ayres, 1,000,0001.; Peru, 1,800,0001., with arrears of
interest of 16 or 17 years. The successful issue to
which the arrangements with the comparatively poor
state of Chili have been brought should certainly sti-
mulate the Committee to increase their exertions with
Buenos Ayres and Peru, since they may fairly hope
that the example of Chili, without using
.arguments
of a more cogent kind, would shame them into an act
of common honesty, leaving gratitude entirely out of
the question. For the reinstatement of Chilian credit
the creditors are mainly indebted, we believe, to the
continued exertions, during several years, of the
house which contracted the loan, in pointing out the
advantage as well as honesty of doing justice to Eng-
lish claims ; and it is but reasonable to expect the
same result, if the same means are used with the
other States. They would have the cordial support
of the Government, which possesses much power in
withholding commercial privileges, or otherwise, de-
pendent on the character and credit of the countries
which solicit them.
HERALD.--The loan opened for the service of
Canada; and for carrying on and completing certain
public works in the United Provinces, publicly . an-
nounced this morning, has naturally formed a topic of
conversation in City circles to-day. The whole
autho-
sura
proposed to be raised at intervals as wanted,
rised by the Canadian Legislature and the interest
guaranteed by the Imperial Government according to
Act of Parliament, is fixed at 1,500,0001 ; but the
amount of this loan now offered for public tender is