New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-04-03
FRANCE.
The New DecFees-Pofitical Tfials-Lamar-
zines Obituary upon Armand Marrast-Co-
lonial TroubIes

lonial Troubles.
Correspondence Of the >. Y. Tribune.
PARIS, Thursday, March is, 1852.
The Conversion of the Five Per Cents
has been the event of the week. This measure
was urged upon the President by M. Fould two
months ago, before his retirement from the
Ministry with Nj. de Momy. That gentleman
was exceedingly anxious 70 have the credit Of
effecting SO important financial revolution, and
from that time TO this the conversion has been
the subject of daily conversation at the Bourse.
The plan of NJ Fould to reduce the interest
paid by the Government upon its loan from i've per
cent at once to three Tha. of NJ. Bipesu is to effect
reduction to Al only, giving holders the option OF
accepting the reduced interest or selling out to the
Government at par. You are probably aware that
the French public debt consists in what are called
perpetual bonds, that is, the scrip bears simply the
promise Of the State to pay I've per cent. on the
amount taken by any one individual. Nothing is
said about ever reimbursng the principal. You In
vest thousand francs In the Five Fer Cents, and
you receive In return obligation to the effect that
the State will pay you fifty francs interest year.
No date is assigned for the extinguishment OF the
loan The loan 10 q permanent one, and the stock
il really rsnts psrpetiiss. Now the State claims
the privilege and tne right-which are in some
quarters denied-to refund the principal whenever
II finds il to its interest 90 to do Though it cannot
be forced to Qudate at the demand of its creditors
vet il can force its creditors TO receive back then
advance even against their inclination. The State
is now paving per cent on its debt of S75O0ooooo
francs. Five per cent. 10 more than money is nov
worth, OF than il can bring in the market. The
State therefore, 10 paying usurious interest, and by
a decree from the President it is enacted that In
20 days it will convert its per cent stock into Al
per cent, thus making reduction Of per cent out
Of 5, and efecsing an economy OF one-tenth OF the
annual interest it has hitherto paid Such as &C.
cept these conditions will receive IL per cent in.
stead Of S, and such prefer 20 seek another in
vessment for their money can draw their principal
nom the Treasury in the coming twenty days. The
budget Ia thus relieved OF burden Of eishseen mil
lions frsncs year an economy worth realizing
it can be done without injustice to the stockholders,
and without injury TO the credit of the State.
The opponents Of the measure take the ground
that the Treasury does in fact do injustice to the
ttochkolders-Ihst is. that such a course is Tile
asl-snd that i, does really peril the credit Of the
Stale, and create suspicious among the unlearned IN
affairs Of finance, Of the perfect solvency of the
Treasury. They have been compelled, however, TO
withdraw their arguments as 70 the legality OF the
measure, which seems to be unquestionable Every
debtor has the right to clear himself from debt II he
wishes and II he has the means. The State redeems
its obligations at par and refunds what received
II the stock holder imssines himself be llueated
and finds himself csvalieriy blutsed Oh from q COM
Portable investment his dissatisfaction simply proves
that he does not expect such favorable terms in any
other public stock and therefore that per cent ID
higher interest than the State ought to pay. The
risht to reimburse its creditors belongs, in fact, BY
tradition BY custom, by practice, to the State. II
Ia, been done in England and in other countries
IL vas done BY Colbert, Minister Of Louis XIV.
Three tunes did the Chamber Of Deputies under
Louis Philippe pass a bill nearly identical with
tho n,r,en, decree and three tines did the Exscu.