The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-11-19
SPAIN.
Provincial Government for Cuba as Defined by
Former Minis,ers-The Budget and
the Bonds Tax.
TELEGRAM TO The NEW YORK HERALD.

MADRID Nov. Is. 1871.
The United States Minister, Major General slckles,
has made statement which lie says is called forth
by the late debate in the spanish Cortes on the
subject Of Cuba. and which is also, he adds abso-
lutely necessary for the explanation Of certain
Spanish Official documents relative TO Cuban az
fairs which have been recently published here
General Slckles says it Is due the former Minis.
tiers Rivero Martos and Becerras. ana also TO the
late Marshal Prlm. TO state that they all and sever
ally assured him that Cuba should be justly treated
as province of Spain, entitled to all the rights
granted by the Constitution OF 1862"
General SicKes adds that 'these promises pre-
vented the American government from intervening
In Cuban affairs"
TREASURY BONDS TAX.
The committee OF the Cortes on the Spanish
Budget has agreed report in favor of the tax on
the interest OF Spanish bonds held at home and in
foreign countries
Spanisl, Bonds and the Interest.
This action OF the Cortes Budget Committee will
excite a very considerable degree Of agitation
among the holders of bonds of the Spanish nation,
particularly among the creditors of Amadeus gov.
eminent in London. 1t has been already anici-
pated with apprehension In the British capital, as
Will be seen from the following utterances made by
one who purports to present "a review OF the deal.
ings experienced by the foreign creditors OF Spain
during the thiry-seven years from 1884," The
writer says:-
No country has right to tax the interest upon its
debt, and much less that arising In many cases, as
In Spain, upon stocks issued on terms involving,
after years OF suspense cruel sacrifices TO the
creditor, IN lieu Of cash That ought 10 have been
paid upon sacred engagements. In May $780, the
precedence of the Spanish debt then consisted:
FGs'.-of the Cortes loans, 1921 g.
s. ond.-ihc loan 1854 per cent at tO per cent
F.noI.- The deferrel bonds, ISL,
F0ih.-The three per cent, ls67-6s'o.
The regulations reductions suspensions OF pay
ment, con6scalions and otner acts which have cma-
mated from all the successive governments, without
distinction OF party, have been so numerous and
extraordinary that perhaps no similar example can
De ionnd in the financial annals OF any country. In
1923 the wnoe OF the loans were repudated. In
1884 they were recognized out reduced-two-
thirds OF the capital IN a .s. per cent;
wears, arrearages OF dividends were converted
into deferred stock, without interest to be
drawn IN twelve years from 1888 INTO active per
cent. In 1886 a suspension Of payments took place.
In s4l the eight coupons 1887 10 s40, that should
have been pald IN Cas wsii n oriv,na active
per cent 1884; the deferred STOCK then issued, ana
which had been already drawn into per cent, anu
the hat or the arrears OF coupons IRON ls4l (the
other hall being conGscatedl were converted into
new deferred stock, with per cent interest and an
NJ s sS1 a up 70 tr per
were given for each flOo OF the nan 90 o,
the coupons coniscated In 1881. There was
gwen likewise fl5o 3 per cent bonds for each
Giv0 nominal OF passive, valued at 80 on f2s In
cash being PAID by the holder. AZ ,ie same .s,ne
sales OF similar three per cent STOCK I'd raise
Co 100000 electives were made by Messrs. Kotls-
child for account Of the government. IN loo9 ioan
was contracted IN part anu the remainder was sou
by the Bank OF Paris to realize fo,OOO0VO enectiVes
In 1870 the old three per cent ponds lS4l anu .le
aeferred OF 1851 were converted into three per cent
stock thus unifyng the foreign debt OF SPAN unuer
the denomination Of "Renta perpetual three per
cent? -, s,,o,,.r,
The sacrifices thus imposed on the bondnolders
have been as preJudicia to them as productive 70
the government In Maurlds