Year: 1870

Germany but will greatly strengthen the influence
of Count Bismarck.


The committee on the budget of the Chamber of
Deputies have, by vote of II against 49, agreed to
report. now before me- upon the fnancia policy OF
the new Minister Of Finances, which in every way
meets the appreciation of that minister. The object
OF his plan twOfold-to give to the national debt
more suitable form than that which at present
ISIS, and at The same time obtain the means for COW
tbearing interest the beginning of 1870 will
amount to f40O0000 thalers and is divided into not
less than 1l5 classes each with especial conditions
and prescribed mode of redemption and
the interest ranges from three to five per
cent the loans contracted during the lat
interest and at considerable discount For the year
1870 the amount to be redeemed ~ 100000 thalers,
than two per cent of the entire debt but for the
same year there is deficit of $4,000 thalers con-
sequently If the Government were not under the obl
CATION to redeem that amount the debt would have
an excess of more than three millions of thalers over
the expenditures The plan of the new Minister was
to convert the debt into consolidated rtHte and,


beginning, he proposed the conversion OF the entire
debt of Prussia under the former boundary and the
new boundary after 1865 which bears interest OF Al
per cent amounting to no. 1915 thalers, and at
per cent amounting TO 5267,6I thalers, in all 2,
436 thalers into rete at per cent interest," those
bonds bearing interest at four per cent were
TO be exchanged at the rate of nine thaleTs
TO eight thaars of the new ones. The result OF this
conversion would be debt of 2l7 Sol 600 thaers with
interest at a. per cent In order 10 induce the hold
ers TO exchange apremium was to be offered, amount
ing at the most TO one per cent of the consolidated
debt and new bonds were TO be issued to cover
that amount. An extension of this plan to other
loans especially the - per cent certificates of in
debtedness is regarded at the present time unad-
visabe IL all the holders of these obligations could
be induced by the premium offered to exchange them
for the new ones and so the new measure made a
success in the budget for 1870 there would be shown
TO be sum of three millions of thaleTs avail
able for the reduction of the debt, and of course,
the deficit would be extngushed, and the amount
SO applicable would increase year by year. by adding
TO the sinking fund the interest saved by the con-
version OF the capital. However 1T Is not
probable that this plan would have at so favor
able results, as far as the budget of 1870 is con-
cerned. Although the minister by no means pro-
posed an entire discOntinuance of TedemptiOn il was
the chief end of his plan that in upfavOurable
years. the necessity for the redemption Of a specified
amount should not exist. At present the obi cation
to redeem certain amount per annum is often a
serious obstacle In the way OF proper application OF
the receipts TO discharge the expenses of the State,
TO Obviate which i'll the bill il was proposed that the
redemption of the consolidated bonds should take
place soon there should he shown by the budget
of any year to be of the receipts the
expenses OF that year, and to the amount OF such
excess.


The minority in the committee was composed by a
coalition of interests which Will hardly be able TO
prevent the adoption of the measure by the two
Chambers. This coalition was composed on the one
side of members of the extreme right who hoped
Baron Won der Heydt replaced by member from
among themselves, and who were unpeaSantly sur
pIlsed by the appointment of Camphausen; on the
otherhand the coalition was made up of members from
the left side of the Chamber, OF liberals pleased with
the appointment of CamphaUsen, and even favOTlnp
the principle of consolidation, but who had some CON
sttutional objections TO oppose to its introduction
The opposition was also strengthened by the iniu.
ence OF some capitalists who objected to the bill
from purely personal grounds. IN committee no OBJ
lection whatever was made TO consolidation itself
but much debate upon the terms of conversion
The bill has however, been reported from the com
mttee with no very considerable notifications, and
as / have said, will probably be adopted by botl
Chambers.