The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-06-05
riVh the Albany htla
MEXICAN BANKRUPTCY.

The London News, brought by the late steamer,
contains exposition Of the condition Of the Mex
lean finances, elected by the recent proposition of
an agent Of Paredes, to procure a new loan in the
English market, and consolidate the present debt,
outstanding there, at a discount Of 60 per cent
We state the substance Of the article, which reveals
state Of financial anarchy and weakness, truly
Mexican.
A sum OF II, SOC, 900 was obtained in the English
market in the years Of speculation, 1925, ono
half at s. the remainder at per cent Interest was
paid, out OF the principal retained in England
I'LL 1897, when even such dividends ceased On the
other hand, Goldscmidt & Co, the contractors for
the loan failed while they held balance OF sever
al hundred thousand dollars, and when sued sue
eessfully plead the usnnous rate Of per cent (uh-
der the English law,) as bar to the Mexican gov.
eminent. In 1887 a composition was effected by
the Mexican government, by which oLe-half the
debt was deferred, by the issue Of a new stock on
which interest was TO commence in l547, and the
other half fixed at an interest Of per cent secured
by pledge Of one-sixth afterwards one-fflh) Of
the custom-house receipts Of Vera Cruz and Tam
plco. These conditions were not carried out The
overdue interest, exclusive Of one half year for
which funds are in hand to nearly the amount.
The Mexican government now comes forward
again and asks for a new compromise OF It's debt
Il asks to be permitted to convert its three overdue
coupons into active stock at par and to cut down
the deferred stock about three-fftbs Of its capital
that is, to about 40 per cent proposes, also, TO
issue the stock OF a new loan TO the amount of the
difference here saved! As an inducement TO its
creditors to accept this composition, it offers the
Solemn and religious" pledge Of the tobacco reve-
nues arising from the government monopoly. The
moneyed men deride this solemn pledge Of reve-
nues, mortgaged already score of times to domes-
tic as well foreign creditors, and the sacredness
Of which would be to be forgotten in the next
revolution. They also intimate that the necessities
Of the government have already driven il into the
hands Of stock jobbers who will realize out OF the
contemplated new loan immense profit, which
might better be devoted to the payment Of interest
on the long deferred stock. or the sacrifices thus
demanded, the News says
"Now the bond-holders, whom it is proposed so
to oppress had been already called upon and agreed
to hold their stock without interest for ten
years. Upon e., 624 900 Of such stock, they con.
scented to foego claims for interest amounting the
aggregate sum of moro than 81, 800, 900-say SO
per cent. upon the deferred debt. The Mexican
government, but for such compact, would have been
liable at this present moment, exclusive of the
pound accumulation Of interest upon interest, to
about e. ,000, 900 Of debt on this head instead Of
"a, 900.
"The present proposal amounts to farther sacri-
fee of more than 60, 900 by annulling three
6fths of the nominal capital Of this deferred debt
In round numbers, therefore, the bond-hoders' &C
count Of loss may be thus wound up-saying moth
ing of compound interest
"Loss Of ten years back interest. 90 309 900
Loss by thrse-hs Of capital annihilaed. q 700 009