The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-13
Senior Sagasta Appointed Min
lister of Finance.
THE FINANCIAL DIFfIcUL TIES OF SPAIN,
Sixty-fiye Million Dollars to Pay, and Where
is the Money to Come From!
CAUSE or SENIOR MORETS RESIGNATION.
TELEGRAM TO THE NEW YORK HERALD.

MADRID July H. 1871.
A royal decree is published accepting the resig.
nation OF Senior Moret Minister OF Finance, and
appointing Senior Sagasta to the vacant portfolio.
MORE DESIGNATIONS TO FOLLOW.
The Secretary Of the Ministry of Finance and other
high officials Of the governme.s have also rendered
their resignation in consequence OF the retirement
OF NJ. Moret which generally regretted, and just
now very unfortunate for the government. Fears are
entertained that the new Minister OF Finance will
not able 10 face the great difficulties in the way
OF paying $685. DOC. 000 the amount Of interest now
due on the public debt.
SENIOR MoRET's RESIGNATION CAUSED BY THE
NARRowMINDEDNESS OF THE OPPOSITION.
The resignation OF Senior Moret, and the subse.
quent breaking up OF the Cabinet have been due to
the question before the Committee on the Budget,
of the terms to be granted 10 the Bank OF Paris to
rescind that part OF the contract Of 1870 for the
gotiation Of treasury bonds, not yet carried ont.
These bonds, guaranteed by national property
prOmissOry Obligations were negotiated to the bank
at siXSy-nine per cent, with other hard conditions,
which the government under the circumstances,
were forced TO accept. 1t appears that owing to
various causes all the stipulatons could not be
fulfilled by the Bank Of Paris which entered into
negotiation with the "Banco de Castillo" a new
establishment started in Madrid, TO which 1t trans
ferred the Treasury bonds and guarantees in its
possession; and SenOr Moret wishing to free the
nation from q contract which he qualified in the
Cortes ''entailnT great sacrifces,, took advan.
tage OF the opportunity to obtain an annulment OF
the unfulfilled portion on any terms that might be
practicable. These terms, subject the approval OF
the COrtes, were a compensation to the Bank Of
Paris Of about f300,OOO payable in the same
Treasury bonds, secured by an equal amount Of
mortgage promissory obligations, coupled with q
condition that about seven million pounds OF SINH
lar bonds in the hands OF the government being the
balance OF the Ella 600 600 created In 1870 taken
by The bank, should be cancelled forthwith Tley
were met, however, by strong opposition In the
committee, particularly as regards the required
canceling OF bonds calculated give to the bank
monopoly OF this security, which in constant de-
mand by the purchasers OF national property,
such property, and after several warm discussions
Senior Moret undertook to submit to the bank the
consideration Of the terms, which were amended as
follOws:-f1fst, the bank, instead Of Treasury
bonds ak per cent interest guaranteed to receive
for The amount Of the compensation only promssory
obligatlons OF natoRek property. which do not bear
any interest; seco1 p government to remain at
liberty TO Issue ana be OF the remaining Treasury
bonds as II may thtE 0nvcment; and third. as the
Banco de Castillo nasn0w IN hand the double guar
antee OF the Treasury bonds and prOmlssOry obga-
lions, Its operation In connection with them shall be
inspected nv a commissioner appointed BY the gov.
eminent. Even these notifications did not satisfy
the opposition; but the question having been put to
vote was carried by 10 TO 0, giving majority TO
the government The subject must still be sSbmit-
ted 10 the COrtes. Nevertheless SenOr MOret has
thought II proper to resign.