The New York herald., 1862-03-02
The French Loan CnncelIed in London.

from the london Post fcity article) Feb II.
Considerable astonishnent was caused this morning
when became known (as we stated last evening" .',
the recent financial operation between the Loaon anu
Paris bankers for loan advance Of from Il ~
Ga 900 00O deposit of rentes was understooa W o
cancelled by the French PARTY the transaction. we
learn that the eminent parties in this country ooo.
any such proceeding. having, on the ialIn vi m
ment supposed be binding, received appllcatl
probably depOsits-not only from parties IA the o'oSA
Exchange. but also capitalists, who nave iine
arrangements 10 take part with the contractors III .ne
transaction Communications have, we earn peen ues-
patched TO Paris the subject and ~ viii prooaeiy DC
some few DAYS before decisive action regarding
can take pIace In the meantime various in
circulation regarding this apparently unpleasant matter,
TO which is not necessary To aude, though we may
state that strong impression has gone abroad that the
cement been cancelled f IL is denitvely SOY
owing to the publicity obtained here-the intention in
Paris being that should be secret transaction with
the London contractors.
TFrom the London News (city article), Fob. 12.l
good deal Of surprise was occasioned this morning
by an ntmaton from Messs Earrings to the subscribers
the effect that the proposed loan France cannot bo
carried out. IL consequence Of the inability Of the French
condcogs TO supply he requisite securities 1t will be
very curious 10 learn exactly how the hitch has occurred
The view taken in London is that the affair in
quence of the udcous magnitude of the sum involved,
had attained publicity which defeated the peculiar OBJ
jecs aimed at by the government. II has been made
subject of damaging roproach 10 the ministry in tho
chambers in the course OF the debates on the conversion
scheme. The government has WINGED the more under
the criticism inflicted upon its policy, because the loan
is ayowedly and parcel of grand scheme Of Bourse
egerdt MAN, whereby the public TO be duped and
prices, for the time, bolstered up II is said that feel
ing OF extreme annoyance prevails in official circles
in Paris, and that to the strong impression enter.
tanned with reference to the matter in still exalt-
ted quarter the collapse Of the perfected nego
tion is mainly due. The original design probably,
raise money in England with complete privacy. The
inability OF the French contractors to supply the three
per cont renes which formed the stipulated security,
betrays plainly what was always pretty clear the origin
Of the negotiation, and helps bring out in stronger
relief the inscriptions mendacity "a milder word
does not meet the case) OF the government jour
nal The result shows that, the government is
prevented by high intervention from supplying the
requisite stock, no else do So But it was always
absurd to imagine that the transaction could be for
of the Bank of France, which, this hypcthe
sis would be carrying the very lucrative game OF bor
rowing at six per cent upwards, and lending at four.
The common of the public both sides OF the
Channel carries them straight to the only possible con-
cluson which is before remarked that the loan
mere manoeuvre TO srig the market for an interested
object and has failed from the nconvenent publicity
qured by it, There is some consolation in finding that
the structures Of the English press have influence
towards helping sraghton the tortuous course Of
French finance. II is now more than question
whether the government will be able force the pro-
posed conversion through, and whether instead Of try
ing for loan in hole andcorner fashion, it will not be
ultimately obliged to appeal the moneyed classes in tho
ordinary way To meet the deficit by means OF public
loan would be legitimate enough, as such matters
garded and il T2gld be attended with the important
advantage Of giving French capitalists that influence
which they ought TO have in the financial affairs VI
the State. In word, public loan would not go Off
well without the government consenting to what the
country wants more than anything-reduciion OF OK
penditure, particularly the military and naval de-
patments. For these reasons, the failure OF the pro-
posed loan Is fairly matter for congaulaion, apart from
the favorable effect which the event is calculated to
have upon money and stock markets.
There is minor mstter which be commended to
the consideration Of the French government and that is
the compensation due 10 the persons This country who
treated the proposals OF its agents serious, and who
have gone to large expenditure OF time trouble
addition TO realizing securities and calling ia loans in
order TO fulfil their part OF the bargain. would appear
that MeEsrs. Barngs absoived from blame, being
merely agents in the affair." and of responsible
for the vaaaries Of the Paris fnancers.
The withdrawal OF the r,snch loan has tended TO
strengthei .as siqek markets.