The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-09-11
PERU.
The New LOan-Great Popular Dissntisfac.
tion-RccognitiOn of the Independence of
Cuba-Itcvolutionary Matters.

The New LOau-Great Popular Dissntisfac.
tiOn-Rccogniti0n of the Independence of
Cubn-Ncvolutionary Matters.
LIMA. August %, 1869.
The absorbing topic of interest during the past
week has been the loan offered 10 and accepted by
the government from the French house of Dreyfus
Co. The last Congress authorized the President
to raise enough money to cover the dencit of
100000 soles voted In the budget for 1869 and
1870. Ten millions have already been borrowed
from the different gusno consigning companies
here and it was supposed that the remaining 900 900
would be supplied from the same source. But the
Minister Of the Treasury was more ambitious than
pr udent, and decided on sending ON agent
TO Eur ope to endeavor 10 secure sum
that would finally emo the financial trou
bes Of the nation ana put the country
out of the painful necessity of asking continually
for small sums. This agent recently returned with
the representative OF Mr.. Dreyfus and proposal
was Immediately made TO the government. Accord
ing to this plan the house Of Mr.. Dreyfus purchases
from Peru 100000 tons OF guano, giving price de-
pending upon the Whereabouts Of the article whether
In deposit or in transit, but averaging about thirty.
six American gold dollars per ton-nearly The true
value when all expenses are deducted. Az the dr.
fereht guano consignment companies here have pri
vegcs that run on for some years they are to sell
this guano on Ne ssrs. Dreyfus' account, the latter
on the expiration Of the monopoles enjoyed by the
companies, assuming the position Of agents for the
sale Of guano throughout Europe. Messrs. Dreyfus
now pay the government 5000 600 soles cash and
100000 soles monthly until the 1000 900 tons
shall have been Sold For this advance. made
at i've per cent discount five per cent yearly inter.
est Is charged. The debts OF the nation In Europe
VIII be paid gradually by Dreyfus, thus ieavng the
net proceeds OF the Guano in Europe to be appro-
priated by the companies In payment Of the ad.
vances already made by them to the government.
AS was to be supposed, the ratification OF this con-
tract has given rise TO an immense deal OF discus.
son, and viii probably be the cause OF serious trou.
bic In Congress- since the President has clearly over
stepped the authority conferred upon him. Never
theess, the country viii be, financially speaking,
comfortable and the great public works proposed
by Colonel Balta may now be carried out. The house
OF Dreyfus Is almost unknown here and Its proposal
was made by the Paris branch. backed by number
or European capitalists, who consider guano specu-
lati0ns as profitable Great faith has been shown In
the government as no guarantee was required or
given.
since writing the foregoing the discomfort exist
Ing concerning the loan Effected by the government
has greatly increased. number OF the wealihest
feruvans resident in Lima offered TO take the loan
at much more advantageous terms than those OF
Drcyfus, and the President, by reason OF q law
giving the preference TO natives Of the ,pu lie in
All negotiations OF this nature, in duty bound to
accept the last proposition, but, on the con-