The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-11-27

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Pour le Drecteur de 10 Caisse Royale Amortissems
LIE Teaeur du Grand Livre
JOSE ANTONIO DE- URIARrE.
CONNIE Banquier du Governments,
A. AGUAD0.
By the famous decree Of Porte st. Marie, King
Ferdinand VII of Spain, declared all debts created
by the Cortes null and void. Consequently, those
loans negotiated in Europe, principally in London
and Paris, in the years 1920 to 1928 repudated
by the absolute government of Spain.
In the year 1881, that government, however, in
order to revive its credit at the d erent exchanges
in Europe proposed to acknowledge these loans and
offered to convert them in the following manner
For the FIVE per cent stock, one fifth in three per
cent stock, and four ths in deferred stock and for
the unpaid coupons, the whole in deferred stock
This proposition was refused with indignation by
the committees Of Spanish bondhclders in London,
and pronounced by them, on the 10th August,
1881, as most unjust, paltry, and contemplate"
In consequence of the English creditors declining
to accept the conversion-fOr which, however, they
obtained in 1884 an infinitely more advantageous
settlement-only moderate quantity ofthese secu-
rites were offered for conversion according to the
proposal Of 1884, and those offered we're principally
held by inhabitants Of the continent Of Europe
These consisted in
$lS.335 COO in bonds and obligations, four.
fths Of which is deferred debt S14 6s4 0e0
And 50 1888 500 unpaid coupons do do..... 933S,s00
Making total in deferred debt Of. s2ao22 500
The certificates issued for that deferred debt were
divided into
3ss27 certificates $500 each French ISSUE SIS $50 500
SOS SOS DO DO 5000 sSSS DO Engh ISSUE 5000 900
Forming the above mentioned. ....... $2i O22 800
According to the arrangement, one fortieth part
Of this Indebtedness should annually pass in active
three per cent stock, which, on an average, would
convert the whole in 1851 into active debt, bear
ing three per cent annual interest.
With this arrangement the government complied
during the years 1882, 1888 and 1884, and in
each of these years orteth part of the deferred
debt was converted into three per cent active secu
rites; and, consequently, deducting these three
years conversions the whole Of that deferred debt
consisted, in 1895, in
French Emission $14 1856 600
English Observation-Disclosures. 7485 100
Total. -...................s2 2 22o7o0
When, in 1884, general regulation of the Span
sh debt was organized, the question how this debt
should be treated was discussed by Count de Ray
neval, then French ambassador in Madrid, and by
the Count Toreno, at the time Minister Of Finances
of Spain. While discussing the question, the law of
10th November was adopted and promulga ted, where
not the least mention was made Of that particular
debt; and so the matter stood until 1851 when the
Spanish government again compelled its creditors to
new sacrifices, to which, with the exception Of this
debt, the holders Of its bonds had again to submit
The proposals. made in 1861, by the Spanish GO
vernment, in reference to this claim, which, to the
holders, cost over two hundred per cent, we're so
mean that at first most of them declined accept
ance of the same and have since publicly and ener
getically protested against it. But the protests
against the wrongs committed by European gov
eminent towards individuals if assisted by the
powerful aid Of such men as Lord George Bsntinek
nd Lord Palmerston-wh once most warmly ss.
oused the cause of these creditors-have hitherto
walled them but little; and, despairng of OBJ
aiming justice from the of Spain, the greater
part of these claimants submitted, within the last
months to the immense sacrifice of their property,
by converting eighteen millions Of dollars, which,
with interest added, cost them over double that
amount, into stock called an,orli-abes, which
brings about six per cent il the market. The latter
ecurity the government. of Spain promises to with
draw from circulation, by redeeming monthly GER
tain amount, at its own price, and which the Junta
in Madrid shall determine at the end of every
month.
In this manner the poor creditors of Spain have
been swndled its mt to the tune of nearly
thrtyfve millions Of dollars, in this particular debt
alone, since, by surrendering their original docu
ments, and accepting the compromise their claims
against Spain have virtually become extinct. The
remaining unconverted four millions of dollars,
however, are in the hands of parties in Europe and
in the United States, who will not submit to such
Wholesale robbery, and will never consent to com.
promise surrender their just claims against
government able, but unwilling, to redeem its ac-
knowledged liabilities, since it must be understood
that the Spanish government in way denies the
justice of the claim; but notwithstanding the i'm.
provement of the public finances within the last ten
years, that government is still pretending be I'M
able to fulfil its engagements towards its foreign
creditors.
EXODUS OF TIE REIGN OF TERROR The epoch
Of free thought in religion is this day, November
9th, to be inaugurated at the town Of Salem, in
the State Of Ohio. The Garrisons the Whipplss,
and the lesser lights Of spiritual progress and
laborers in the cause Of redeening this bsnighted
country, are "to come together, says the announce
nent, /" and sit down like brethren ia q communion