New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1859-03-01
CANADA.
pum Ou o-~s Correspondent

sm,s in tse matter Of The HadsOn's Bag N )HoP)ly
A, important correspondence bet TeeD bnsel' AID
n. Company. OF the subject Of sub hitting the
Cempspy's charter - slegal tes. has been lad Do
fore our legislature. Lord CsrrarvoD, by difec'
ton OF Sir Edward, writes to Capt Bireno' Dep
uty Governor of the HudsOn's Bay Company pro
posipe an amicable reference of the question oi .n9
v,dify Of the ehsrter TO legal tribunals onofl's
10 bear all the expenses il the Company "'n ""'
only TO charge them with half the eo7'' i ,n''
hose Capt. BarenO replies ia tone aPpro'cH'"s
Ia dsfsuce; and addresses his reply direcuy 70 ."
E.B. Ly,toD. The Company, be declares VIII os
m Marty TO tire proposed proceedings. 'ey st"nd
uoon their rights and will be no party to calling
taem into question. Sir Edward had already
eaussd il TO be intimated TO them, through Lord
Carnarvop, that il the Company declined bis pro
nasal and could suggest no other practical mode
,orecment. L" Sir Z. Lytton must hold himself &C
.outed offurtber responsibility to the interests
the Company and will take the necessary steps for
closing controversy too long open, aud for secur
cling defniliye decisiOn, which is due TO the ma
cterial development Of British America, and the
requirements of an advancing civilization" Th5
Sir Edward caused the matter to be submitted last
Decs uber, report, " that the only course open for
the determination of the questions arising on
"tter charter is by Scirc fuchs, brought to re-
"ptal The charter" and that This proceeding may
be instituted by the Canadian Government in the
name Of every individual subject Of her Mtjesty.
Thus the doom of the last remaining laoded mon.
opoly created by Charles H., who gave away to his
creatures courtiers and favOrites the whole coun-
try from Nova Scotia 10 Florida. and even threw in
Tsxss and a large part Of Mexico, seems about TO
be pronounced
Our Government has succeeded in making an
arrangement with the Imperial Government, by
which we get the amount paid by the United
States for letters carried 10 the Canadian line of
Atlantic steamers. The POstmaster-General pro-
poses that the Legislature shall present an address
to the Imperial Government, praying that when
the recently renewed nail contraction seven
yems-wth the CuDard lOc shall expire, it shall
not spain be renewed without consulting Canada,
in order that that line may either make Quebec It's
destination or the Imperial subsidy be given to the
Canadian hne
The Inspectors General, in his visit to England
Totally failed To effect the conversion OF our public
The financial agents of the Province. If necessary,
and 10 issue ID per cent security for the purpose
Of paying off the outstanding debentures. File had
not authority however to dispose OF the a per
cents below par; and he found that nothing could
be done; as IL would take fll9 OF the proposed
new securities to pay of flOO OF the old per
cent debentures, which were at premium of 10
Ia II6. The financial agents of the Province re-
commend that authority be obtained to issus per
cent securities. A curious feature Of the new ac-
raugement il the proposal to follow the course pur-
sued with regard TO the English debt, and make
the new securities perpetual, the Government haV-
ing the option Of paying them OIL after twenty-O
years. This is nice way of STAYING on the pay
Inent Of public debt By-and.by our debentures
will be falling due; and il would be great relief
if, IN the mean Time they could be pad off with
perpetual securities, only payable at the option OF
the Government ia twenty years 1t Is part
Of the scheme 10 convert the Municipal Loan Fund
deheDiuTes at the same time Tor Wnich tue con-
sOlidatsd revenue fund is not liable. The Govern
ment, rs things stand, agrees 10 pay these deoen-
lures but only out of the Municipal Loan Fund
aud IL is question whether, by agreeing 10 pay
them in this way, it is not bound 10 pay them
at any rate and under any circumstances
Certain il is that those who have the sale at them
il London. are in the habit of pdlmiGg them of
upon the British public ss Canadian Government
debcntuTes. Mr.. Gait the Inspector General,
kLbWR, ID an Official correspondence lh1l lutg alN
scarcely 0istiDgpishabe from GOvernm mt deben'
lures in the minds of many persons; aud that the
fact ~ their selling at about par has bad effect oil
TIE Government debentures. But don't see that
be makes out hls csse; for he, at the same time,
adults that the Government debentures sell at
10 10 is premnm; and il is certain that they were
IeveT much bigger Cons, quently IT Is not exact
10 Say thst the Municipal Loan Fund debeotdres,
BY selling at par, have deprecated the Govern
ment dtbeutures Mr. Gait proposes to make
them the same in appearance IN the proposed new
is.ue, as the Government debenturcs aud surely
ills operation Wust iepreciate the latter. For If
the Municipal Loan Fund debentures now sell
Is 10 10 below those of the Government the
making Of them ali alike 10 appearance wl not add
t. the real value Of the former; aut they can only
obtain Fictitious value at the expense OF those of
the Government When they are all mixed ny
the average value will inevitably be- found. Thea
the operation of eltctlng the transfer will swallow
up 4 large sum in commissions. Great things are
expected from Mr.. Gait as fnancier; bat con
fees caDnot discover the profound wisdom of
these movements.
In 1912 We borrOwrd-it was almost the begin
ming Of our horrowings-tl 800 600 under the
guaranty of the Imperial Government, on the cou-
diion that we should pay, in addition to the inter
est, e3 rs. Sd. per ElO0, four per cent as a sink
ing fund with which u pay oil the debt, in the
course of ~ ytsrs. The money Sccruiag on ac-
count Oi the sinking fund has been invested IN three
per cent English securities; but, as they were
bought below par they produce more than that,
Mr.. Gait has got extension of ten years for the
payment o. the remainder of the sinking fund.- so
that, in future, we ,hsll pay two instead of four
per cent account OF il, the British Government
extending rs guaranty for ten years more, or in
Other words, renewing the note. IL is understood
HAT lbe amount at the or, DIT of the sinking fund
VII DC hereafter invested in Canadlan securities.