Star.
London, England, 1829-10-28 00:00:00

SPANISH FINANCES.

The Journal du Commerce, of the 24th inst. contains
the following remarks on some new plans df Spanish agents to raise
the credit of Spanish finances :
" Messrs. tiallrsterces, Burgos, Aguado, and Co. finding it no
longer in their power to coin money amongst us, and the markets
of London and Amsterdam thing obstinately inaccessible to thr sr
manoeuvres, they have in despair determined in attempt a financial
operaticn in Spain. These financiers, however, are nut such
pletoni as to imagine that they will succeed in laying hold °tali's&
piaster of Spanish money. It is at our purses they aim.
" The plan announced by these gentlemen •in the Madrid cor-
respondence of the Monitcur of the 19th, is as follows
" 1. To consolidate the internal debt (consequently to declare
bankruptcy in regard to the foreign debt.)
“ 2. To create I•uhlic tunds on the same principle as those of
France and England."

" For the execution of this plan, the Government is to authorize
the alienation of entailed property, on condition of placing the pro-
ceeds thereof in the public foods.
" 3. The convents and certain pious establishments are to re-
ceive payment in consolidated paper of the state, for the sums
with which almost all estates in Spain are burdened on their be-
halt. The prowl: tors may. by this mean% release their estates of
the mortgages on them.
" 4. These vatious
from the Treasury.
0 Were this plan to be put Into execution, or rather, were new
renter to spring up through this new mode of deception, we should
expect shortly to see their appearance on our market for the
purpose of making new dupes. The operation would be a
worthy imitation of the conversion of the Royal Loan into mars
perpetuelles.
Wr shall ptocteil to show why the Spaniard: themselves are
unwilling to. second any such operations, by referring to a case in
striking accordance with the present one.
" in the reign of Charles I.V. a consolidated fund was formed en
the principle. of a sinking fund, and the object of which was to
esdngui.h the debt of the State. Several private individuals were
compelled to sell their property, and to invest the proceeds thereof
in the consolidated fund. Property belonging to I uspitals and
other establishments of public charity, was sold, and the proceeds
also added to this fund. Well! the enormous capital produced by
this accumulation of funds was seized by the Government ,
thousand: of families were • ruined by that one blow, and all
public establishments were at once deprived of their resource-.

are to receive their revenue,

~ t

This lesson was quite sufficient to leave an everlasting impression
on the memory of Spaniards. It is not, therefore, without 1
Ho-
pod
reason that this saying has become common among them—
nour thy King, but lend him not thy money.'
" Were the Spanish financiers to limit the exercise of their ta-
lents to Spain, we should refrain front comment ; but seeing the
threats held out to the pockets of oar fellow-citizens by the an-
nouncement in the Moraiteur, we deem it our duty to place them
on their guard.
" Is it to this magnificent project that we are to attribute
the slight improvement which has lately taken place in the
rente porpetedelk, or has any one believed that the expedition
.against Mexico is to lead to the re-establishment of Spain's
finances? Had the 3,500 soldiers, whose landing has met
with a reception unquestionably hostile, succeeded in the
re-conquest of the vast provinces of America, many people
might have imagined that the galleons were already on their
way to the ports of the Peninsula, and that some of the riches
brought by them would be instantly spread among us in payment
of arrears. But even this supposition would be an illusion ; for at
the time when the provinces its question were under the dominion
of Spain, they hardly ever yielded as much as 500,000,000 of reals
in contributions, all which sum was absorbed by the internal Ad-
ministration.
" We may soon learn the secret of these intrigues, by means of
which the Spanish finances obtain credit on our market. Certain
disputes among themselves have already begun to transpire ; they
will most likely speedily lead to disclosures useful to the public."

It appears by the letters of the Bth inst. from Gibraltar, received
at Lloyd's yesterday, that His Majesty's ships Britannia and Mel-
ville had both passed the Straits for the Mediterranean. The
Dartmouth frigate, stationed at Gibraltar, got under weigh, and
communicated with the Melville. Thesr are the vessels respecting
which such absurd panics were raised in the city, u a great naval
armament to the 'Mediterranean.

THE EVENING STAR.

IIL

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