Star.
London, England, 1829-08-12 00:00:00

-- VOA 1;1 put.,
diartltO Won Wog contracted

—.acted by parts, , ,an no ,
big 'due, imeept with reeve& to And not webs whole
the *ate el-credit. The Chamber hoe Wen k-a do-
The low of the 15th of November meta ken.
'of twelve nililient U. cantos (mildew of tees). Neither has this
Mali; which* has been realized by part., been afterwards °unplowed ;
nor balk the interests beets paid ea the total of the stew of the Imo
voted. Thus, with respect to what has been said on the &rot day of
&e dam', kt mime what wasthen said. The same Hes. Meaty, -
availing hinsdiff of the umiak of political economy, wished to show
that'll vibe naly in two oases allowable to contract loam, els. when a
souistrt 'was invaded or attacked by the boadlides et art sonny. and
when a coultry, being new, was destitute of the capitals requisite
for the development of its cultivadon, &c. Sven according to
them mailers, I aver that the loan light to take plate. Ainfoily
did one of the Deputies put the question, and that, tee. with a mi-
ldest show of rearms. if the existing paper. of the illank were or
were net as nicety of oars? In fact dlr. President, I ens of opi-
nion that the depreciation of the Irani paper is equitrakm co as M-
easles of oar' credit and prosperity by barbarians, Asd.witis re-
spite to the othermazhn, I •Inield say that the Brazils an. .
nay,-very deadest of capital, to Wag her vast quantity ammo
leak into culdestieo, 'and extract from her soit the skim which •
now Se there-Madan. The male Deputy analotains&liketvise she
that 'we might not to -commit A fresh Irma Deese (we had
pilaf
li
I tiff she debt which we owed already. , It woultLlin etty •
dealealfelhat miriade principle could be adeptedi bat While not
been lieladdled by the most enlightened notieneo.by astimismom
selkitina toldesiervi and uphold their credit. We mastobere-,
lbov",-afltnersrlidgir that it amueats Only so a line thesey.., 1114
pigung.:..a money which emstracted thiny.feer Wash.-mop •to
Wait be' Ike payownt of the lest lmo • before, she asnameted ear;
sultiksviewt ewes? Did oat the United States of.Ausesica (mad shep.•
WWI ab instance of great weight)' contract within ,a few..years,..
'Mao' iticeeedve 'loans?. The-Hestrairable Deputy., said likewise...
that the Moo would prove bellicaciourai asidem.—becameriamw-. •
distelfifter its being ioistrecud, bask-notes wwsid if.e ao par,
and tikat the Stem "mold, iu renseqsence thereof, Adler mai-
danektossei. ' What would we .give, Mr. President, that . the
ketesi,tttee*pettleato at tlhis. t.eprty idbeeld be realiaedd. .If
I dellstretbod k;lie assures us that the notes, will axe ire per thy •
diestry act of contracting doe loan; I believe, thereforft .that,he
and evert one Cl vinous,. and do already. appose/ the, lam• be
theft is nothing ate avemorediskOuv of than so (avowable and
ism afreadt. • Whit empect *to the toss which the, Statoseould •
JairerhY this r.perslioa;:l will tell biot that, wilateme 41t111 this •
bight anasodt to, it would he amply coolpensated by4thinsatit
which the same Stain would derive therefrom. It Win SIAM
fd 'ionskTei. that *the tererims of..this Court, which .enillidli
to BIZ U. tenni Ame Sit diamond mluioua .of ems. or
1,587,59111. sterling), Aut . which are at piewrit wily equal to
three meta (et .(how thosownd otzfelmi( 401075°L).
Iv/mid be dop 044 by skis ctfosettePtly,
occa-
don . 4.96tia11f 116e,FilPf1Pk• Alle.4or Ul7llll
likewise Pll,NSull?efil .114 Armpit, Airamard—
I'melYi pit ..o.sect ftplogs..i.Jhe ks mos.*, nmsney
*mold erect A rithipas qbartge,te prpvate fotteAssl.Ag,itelt 49 in
Public property. 4 aPl4tenflY. AtissanottnriA: UN Omit-
ting, 41 the /11el fe1e911..014 411441114/1
Oen neither will, not Fan be, I ectr.4 I asu htep. %e-
-lated, 1 shag show thauke said argumrtit wads to air Mug, and i.
therefore.o acre .avisseqtity. 31aily nations, Alt. President. have
aadc the'.4lltiMisorki.fla we r.IICIu
Vichatiea?4•lJAßd 404514 were
- which - '?ln r " - • -

.it'-aii-iiilliao7.--tifi-fdie 11-1;;;;;in;cs which they look ? In mninark ...4.i.,umir4.o4cct
eilliviNlNi iibialgilt Etertami banloppoit , cluvl . voter. trio Rilagi Alpo thel did
9;02 illkiarbr local !Mat' meg is. it !RP OAR4l9PFC,44ll.wheolifio• Weed to
ly tivigi.aitd snore ter- ' tin At skiimipttOptiat, siigments
kit WA rdlibitiWilld ties* btri•iter .10.4 . ;, JO
had. •To them. wbo will' t. stadia *nor , % ..1 Y. ISM. which
ttiusi, the it' ere to cabstiMl4 Mekallisfisit ft _
.t4ot li OPlPFtracteMalit Pre-
iitifftlt. 4tO *NW lowa', °v. - ll*. drvirtistimiN. 4,4 4010#5,111w. thy Aftewmot
alFrze
a °Pawl .1a wVihath ' , 1,-5•••. , 11 T. PiFirittie, tillirligrif.iktbwlllk
sesit4; and it w • IT . ,y, 0,1. •, • i X .if
willi k *VI* *a 101. ;..., 0 . , aii AIL; ' cgrirk
xat, Amu,*
Pa* '• ' *et WWO dragothil, ik Ithilitie.

NIP

rives necessity of attending to contracts of mortgages prior and sub
sequent to the depreciation. For it would have been unjust that
men should continue to receive in hard !Raney the amount of
mortgages advanced in a deteriorated cunency. These previsions
were directed to nothing less than to avoid the overturning of all
landed property, in the presence of the laws and institutioas of
the country; for these provisions Meted ealy to contracts. and
did not extend to the ordinary dealings mit comdsardel teatime-
tions on short terms. In the United States of Aintries, where, as
in Brazil, landed property is quite free ot allodlal—Aurbett the mort-
gaging system, customary in old commies, does not prevail—where
there are no contracts of many years. that can be feredkosed—and,
finally, where the circulation of property Is easy and rapid--there
is no occasion to attend to long-winded payments, and there, con-
sequently, no measure was adopted to prevent this chimerical
overturning of fortunes, because the country was placed under
different circumstances; and its circulating medium, which else-
where arrived*at the most terrible state of depreciation, was im-
proved by the establishment of a new bank. The only regula-
tion there was, which indicated the price of paper and of
metallic money, was only levelled at the payment of the shares
of this new bank, and at nothing else. It is written, and every
one know s how the Government of these States acted on an occa-
sion similar to our's, although our paper is less depreciated. I
shall now ask to which of the nations referred to do our circum-
stances bear the closest resemblance? Certainly to those of a
new nation like ourselves. An instance happened here of a
house sold at various payments, and it was shown that six centos
of MI in notes was the same thing as de canoe its metallic
money. In the first place, I doubt whether there are amongst us
many Contracts for the sale of property at terms of yearss
sad
especially of a great number of years, as has been assumed. Oar
transactions are rapid, at terms of some months, and very rarely
can they now.a-days be extended to two or three years and up-
wardi. But, granting a case which may be realised in some instances.
would it not perchance be cartel's, that we should have to employ
the same expense, the same labour sadingustry, to acquire the same
amount in metallic money which we have so acquired in notes?
The fall of some species of merchandise would be compensated by
the rise of others. Those who have already lost would gain, and
those who have already realized gains would suffer some loss.
General utility, and the happiness of a few, require—nay, de-
mand, some private and individual sacrifices. Another Honour-
able Deputy, who opposed the loan. Arils that it would be idle
to contract it, for it was already contracted.. This 14We/is much
applauded, and, in fact, it may be said that the loan is actually
contracted, because we owe to the holders of the notes their
amount, or value. But it does not follow from hence, that, in
order to better our actual condidun, which is a most melancholy
one .it Would be scarcely sufficient to apply and designate funds,
theas Honourable Deputy observed, for the recall and gradual
extinction of the notes. Let the Chamber reflect that the
already contracted loan, which, in the opinion of the Honourable
Deputy, and the holders of the notes, is a noxious, ruinous, and a
monstrous loan, as its policies (which are notes) have the privilege
of being current as money, and of being received as cash at all
public offices, as well as In trade and commerce. Considering that
many nations, renowned for their political economy and their cal-
culations of real interests, have contracted new loans upon fa-
vourable conditions, In order 'to pay off old. that were burden-
some, and that if England, France, and even the United States
of North America, have done so, and made similar operations,
in order to reduce their interests, and to liberate themselves
from a greater burden, Brazil bas greater reasons for con-
tracting a new loan, to extinguish an old one, which is fatal,
because its policies, hich are superabundant, have the character
of ready money. At all events, I believe that the argument of the
Honourable . Deputy, instead of opposing, favours the idea of a
new loan. The article of the proposed law, which treats of the
purchase of the notes in specie at the market price, was finally at-
tacked as unjust. Is it not unjust," says an Honourable Deputy,
" that the Government, having given me a note for one hundred
thousand rec., should afterwards come to give me fifty thousand
tees for the same note?" I should answer by asking the Ho-
Pourable Deputy if he does not purchase with these 50,000 ryes
the same quantity of goods which. he could buy with the 100,000
rev. ?—For assuredly this is the Cale. What Joined= is, therefore,
in this? Suck are the arguments by which I defend the article of
the proposed law against the opiplons that have been ventured.—
In the mean time, Mr. President, I declared immediately, on the
first day of the debate, to the Chamber, that, notwithstanding
ifs appearing advantageous to Government to obtain .a vote of
credit to an amount equal to three-fifths of the Bank circula-
tion, in order that there might be immediately a solid and 'lsl.
hie security of the notes being called in; nevertheless, the same
Government would not insist upon the total amount of the cre-
dit demanded in the proposed law being voted. I declared, more-
over, that I should not hesitate to conform to the reduction of
the credit to a metallic sum sufficient to withdraw from circula-
tion one-fourth part at least of the depreciated notes--establish-
ins at the same time a permanent fund for the gradual with-
thawing of the remainder from circulation during the following
years. This is the opinion I meats to support hereafter; for, I
believe that, by removing immediately one-fourth part from lls
mass In circulation, the premium and exchange must considerably
improve, and, consequently, the State most gain, and the public
must cease to suffer. The diminution of the premium amounts now
to the greatest possible economy in the actual public expenditure.
I beg the Chamber will reflect on this; and It is for the sake of
thiagreat economy that I now claim all its attention. It remains
for me to advert to the amendments of the Committee with respect
to the 7th Article. I shall frankly own that they do not answer
the end which the Committee, as well as all of us, desire. Re-
nouncing the remedy of a metallic loan, the Committee contented
Itself with the promise that the nation should pay, and with the esta-
blishment of a Sinking Fund, at the annual rate of live per cent.
on the existing mass of notes .in circulation. It is. evident that
hardly in five of six years we should obtain any improvement of
the credit of the circulating paper ; and shall we be able to Con-
tinue this for such a length of time, considering the state we are
now in? What effect would a mode of extiaction.produce, which
must *continue in operation for 30 or 40 years? It does not, how-
ever, appear to me that the amendments can pass in the state they
are now conceived ; it will establish the method of . redemption.
offered therein, but never renounce the means of a metallic loan,
which could 50 much the earlier diminish the superabundance of
the notes. Combining in this. manner the amendments with the
proposed law, I should be ofsopinion that they might pass.