The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-08-17

New Granada is indebted to foreign bond-holders
in the sum of thirty-three millions and half of
dollars; there is also due from that Republic to
domestic creditors the further sum of eight and
half millions of dollars-the public debt being in
the aggregate fortytwo millions of dollars, rrespec
tives the Secretary of Finance states, of various
other unliquidated claims. We may therefore
safely put down the total indebtedness of that petty
Republic, comprising population oftwo and quar-
ermillions ofinhabtanS, chiefly Indians and mixed
breeds, at five millions of dollars The receipts
of the government from all sources may be estimated
at four millions of dollars per annum. In 1891,
| the Congress Of New Granada agreed to appropri-
ate one-eghth of the import duties, one-haf of the
surplus revenues, and the net proceeds of the
tobacco monopoly to meet the interest annually
accruing TO foreign bond-holders 1t was doubt
less magnanimous on the part of New Granada to
make such ample arrangements for the purpose
of paying the interest on her public debt but
as the current expenses of government had
to be paid, and as the domestic creditors
were entitled to preference outsiders, it was
found desirable to make use of the receipts from
all sources and let the bondholders possess their
souls with patience as that was a virtue in which
they had long been well exercised Twenty years
have since elapsed, and during that period but a
mere modcum of interest has been paid. Within
the last sixty days. however New Granada has
sought to atone for her shortcomings but in so
characteristic way that we hardly know which
to admire most, her honest admission of her in
debtedness or the cool and nonchalant manner in
which she proposes to meet her annual liability
for interest on the amount As the interest on the
bonds has not been paid for many years, she now
desires to make known to her creditors the frank
ness and loyalty of the Republic, by informing
them what she and what she is unable to
pay The sum total of her acknowledged indebt-
edness she estimates as already stated at orty-two
millions of dollars bearing interest partly at three
and partly at five per cent. She now proposes
that the interest already due shall be added to the
principal, and to set aside in future for the pay
ment of the annual interest on the entire
debt the fourth part of the import duties
which would give the foreign bondhoders
about three-fourths of one per cent per an
mum on the gross amount of their investment
Lest, however, the bondholders should grow too
much elated with this extraordinary stretch of
generosity, the Congress of New Granada stipulates
that the interest due the domestic creditors shall
first be paid out of this fourth part of the import
duties, and then, if it should happen that sur
plus remained, that surplus shall be distributed
among the foreign creditors. As this proviso evil
IDENTIFY reduces the annual amount set aside for the
bond-holders TO a sum which would require a
microscope to determine its value the latter GER
tainly have not much to be thankful for after ALL
Feeling this to be the case, and sympathisng with
the sufferers, New Granada ventures to assure them
that the best system that be adopted bya credi-
tor to realize any claim whatever, is to assist his
debtor in the efforts he makes for that purpose and
for that reason the very worst of all to re-
duce him to helpessness by taking from him the
scanty resources necessary to meet his most
urgent necessities. Fearing nevertheless that
her creditors might fail to make proper applica-
ton of this excellent piece of morality, New Ora
| NADIA pathetically intimates that she is "a poor.
but honest debtor" As our government has also
claims upon New Granada growing out ofthe Pana-
ma riots it would be quite interesting to know in
what manner they are to be paid The two most i'm
portant stpulations in the CAss-HERRAN treaty have
been rejected. New Granada refuses to permit us
to establish coal depot of the islands in the
Bay of Panama and declines to acknowledge that
she is under any obligation to preserve peace and
good order on the nter-oceanic route across the
isthmus. Now there pass over this route annually
from twenty to twenty-five thousand Americans,
and treasure to the amount of fifty millions If
New Granada will not agree to protect the transit
that duty necessarily devoves itself upon our own
government but how it is to be accomplished with
out violating the sovereign rights of the 'poor but
honest Republic is question which is exceeding
~ diihcult to answer; and yet protection in some
way IS absolutely required not merely in view of
the present traffic, but still more by reason of the
immense increase in travel and traffic which is des-
tined to take the sthmus route in consequence ofthe
new gold discoveries in the North-West territory tn
station ships of war at Aspnwall and Panama
would doubtless produce good effect in nra-
serving the peace at both ends of the trons;,
but for any difficulty that might arioe
between those two points, they would of course
Irove utterly useless That the mixed popu-
lation of New Granada entertain any but
friendly feelings towards the Americans is well