Star.
London, England, 1822-02-15 00:00:00

LEGHORN, JANUARY 45.

A National Government has at last been established
in the Pelopo►►nesus. Each village chooses one or two
Electors, who choose others, to form the Government
of each district; and the Elders of each district no-
minate the Ephori to constitute the principal Go-
vernment.
Attica and Livadia having been restored to liberty,
Greece has been divided into eastern and western.—
The capital of eastern Greece is Salona, and that of
western Greece, Uracori. These two provinces have
elected Deputies, who will repair with Mavocoroato
to the National Congress at Argos, accompanied by
those of the Suliots, and by two Deputies of the Al-
banese allies, Tacri Avasi and the nephew of the
Aga Vesniar.
The Parguinotes, who have been expelled from
the lonian Wands, have taken Chetica and Linder,
and cut off the communication by sea with Prevesa,
which is in a bad condition.

ON PAYING OFF THE NAVY FIVE PER

CLA 7'S.

Whenever the Government have borrowed money
by creating Navy Five per Cents. it has been stipu-
lated that, when able, they should have the right
to pay thein off at the late of £lOO in money for £lOO
in Five per Cents.
The capital of this Navy Stock is about £141,826,249
Is. 9d. which sum would be required to pay it off in
money ; but to avoid the raising a loan, the Govern-
ment will offer an option to the holders of Navy, by
giving them the alternative of taking £lOO in money,
or £lOO in some stock, either Four per Cents. Three
and a Half per Cents. or Three per Cents.
It is evident that the holders will take money, un-
less the market price of the offered stock be above
100 per cent.; consequently the practicability of pay-
ing off the money, depends upon the price of the of-
fered stock being above 100 per cent. unless the Go-
vernment also offer a bonus, which, with the £lOO
offered stock, shall be worth more than £lOO money.
As it appears the Four per Cents. are the stock in
which it would be most advantageous to the Nation
to effect the operation, therefore, I shall consi-
der the subject in connection with the Four per Cents.
By changing the Fives into Fours, a saving of a
fifth part of the interest now paid on the Fives would
be obtained ; and this saving would amount to about
£1,418,262 9s. 10d. per annum. To assist the realer
in estimating the importance of such a saving, it is
only necessary to mention, that the accounts laid be-
fore Parliament up to the sth of January, 1821, state
the amount of the Civil List at £1,194,092 per ann.
and of the Ordnance, at £1,401,585 for one year.
The Nation would save this £1,418,262. 9s. 10d.
per annum by the operation ; the Navy holders would
lose it. There is no injustice in this, because, when
the Five per Cents. were created, the Nation paid to
the Navy purchaser, a larger interest than it would
otherwise have paid, for the express purpose of having
the right to pay them off at par.
While now writing, the price of Navy is about 106
per Cent.—of Fours, about 98. The Navy holder,
who fears that he may be forced to take £lOO of
Fours for £lOO of Fives; or that, when the option of
that or £lOO in money shall be offered to ham, the
Frice of Fours will be above £lOO per cent. sells his
ives and buys Fours, considering himself thereby as
saving eight per cent. While, therefore, this scheme
hangs in terrorem over the Five per Cents. it will
tend to bring the price of Fives, and also of Fours,
to 100 per cent.
Ab many Navy holders might be disposed to take

, •
the ,lOM money, it wenl4l he necessary for the
I Government to.rane that sue: tint as the loan
which then would be raised would sot create more
stock, and would lessen the infinal expenditure, it
ought not, provided the Government had PAIR PLAY,
to COW more than a very trifling fall in the prices
of tl* Public Funds. But in spite of the jockeyship
which would probably be resorted to, I do not think
that the whole operation alone could cause a fall of
more than five per cent. and it ought to produce a
rile in the general prices of the Public Funds, ascom-
pared with the existing prices in the market.
Taking the price of Four per Coke. at about 98, it
might be necessary for the Government to offer a
bonus of five per cent. to the Navy holders as a suffi-
cient inducement for them to take £lOO of Fours for
£lOO of Fives, so as to secure the success of the
scheme. This bonus would amount to the sum of
£7,091,312. 9s. ld. equivalent, nearly, to the product
for five years of the saving to be obtained.
Should the Government think that the price of
Four per Cents. is likely to rise over 100 per cent.
they will perhaps wait, and, in so doing, they will
probably benefit the Nation.
Should they attempt to bolster up prices by any
artificial tricks, it is easy to prophecy to them what
will be the result. When the party by whose agency
they may act, find that the prices have risen to what,
they deem the full effect of the hocus-pocus, they
will turn round uponsthe Government, as they have
done before, and, having served themselves with the
cat's paw,. to sell their own Stock, while they are
wearing a Bills mask, and persuading every gull they
can that he will rob his family of twenty per cent.
should he sell at the then existing prices—when this
party have effected this their purpose, they will throw
off the bull's mask, blaze out in the full terror of real
Bears, hang down the Stocks, roar at the Finance Mi-
nister that the monied interest do not take the thing
kindly, and that prices will not permit the execution
of his darling plan, while they hug their old friends,
the Bills, with a fraternal embrace that will squeeze
their pockets lank and dry.
Should the Government effect the change in the
Three and a half per Cents.they will, unless it be done
at £lOO Fives for £lOO Three-and-halves, which
would require a rise of fifteen per cent. above exist-
ing prices, rob the Nation of full 1:709,131.45. 11d.
per annum for ever.