previous resolution agreed to at the meeting of Shareholders, they will never recognize any transaction whatsoever that the said Government or its Agents may have realized, or may yet realize, on the security of such property as had been awarded to the Bank by the law of the 19th November, 1846; and do, moreover, caution any individuals, companies, capitalists in general, against entering into any loan, monetary transaction, or contract whatsoever; for the Board of Directors are most decidedly determined on prosecuting such companies, capitalists, and individuals in general, until the Bank of Portugal shall have recovered the property of which it has been so unjustly spoliated.

"Lisbon, December 27, 1852.

"JOAQUIM PEREIRA DA COSTA, President.

"JOSE LOURENCO DU LUX,

A protest has also been issued against this new arrangement of the debt by the Chairman of the Committee of the Portuguese Bondholders, Mr. Richard Thornton, dated August 2nd, 1854.

This produced no effect upon the Financial Agent for the Portuguese Government, who gave public notice that such conversion would be effected by exchanging the old Bonds for the New Three per Cents. The only recourse left to the Bondholders was to prevent these new Bonds from being quoted in the Official List of the Stock Exchange; and a correspondence was entered into with that Committee upon the subject, and the following resolution was passed:

(Copy.)

"RICHARD THORNTON, ESQ., CHAIRMAN OF THE COMMITTEE OF PORTUGUESE BONDHOLDERS.

"Committee-Room, Stock Exchange, London, January 10, 1853.

"SIR,-Your letter of the 5th instant, addressed to the Chairman, has been laid before the Committee, together with a letter

addressed to me by the Directors of the Bank of Portugal, of which I herewith transmit you a copy; and both having been this day taken into deliberate consideration, I am instructed to forward you a copy of the resolution which was passed unanimously on the occasion.

"I have the honour to be, Sir,

"Your obedient servant,

"GEORGE WEBB, Secretary."

"Stock Exchange, London, January 10, 1853.

"The Committee of the Stock Exchange, at the request of the Directors of the Bank of Portugal and of the Chairman of the Committee of Portuguese Bondholders, having taken into consideration the iniquitous decree of the Portuguese Government, bearing date the 18th of December last, whereby a large portion of the property of the English Bondholders is confiscated,

66

Resolved,-That it is with deep regret they feel themselves constrained, out of consideration for the existing holders, to allow the Bonds of Portugal to be still quoted in the Official List of prices. They, however, pledge themselves that no pretended security of this Government, which by this infamous decree has placed itself in such a degraded position, shall be recognised on the Stock Exchange until that decree be annulled, or ample justice be rendered to the Bondholders of Portugal. By order of the Committee,

66

"GEORGE WEBB, Secretary."

By an official statement, dated January 26, 1854, from the Financial Agency in London, it appears that the total amount of the external debt of Portugal was £9,705,823. 10s. 5d. Of this amount the sum of £5,132,718. 78. 11d. had been converted into the New Three per Cents. under this decree, and £4,574,105. 38. 4d. remained to be converted.

In March last the following official notices were issued respecting the conversion of the external debt of Portugal:

"CONVERSION OF THE PORTUGUESE EXTERNAL DEBT.

"Notice is hereby given, that on the day of the date hereof there were cancelled and deposited by me, the undersigned, in the presence of his Excellency Count Lavradio, Envoy Extra

ordinary and Minister Plenipotentiary of his Most Faithful Majesty in London, and of G. C. X. de Brito, Esq., Financial Agent in London of the Portuguese Government, the following Portuguese Bonds, Debentures, and Capitalization Certificates, amounting together to the sum of £1,652,659. 38. 3d., which the said Agent declared to me had been received for conversion under the decree of 18th December, 1852, approved by law of the 1st June, 1853, between the periods of 16th August, 1853, and the 25th February in the present year, viz. :—

213 Debentures of various emissions 2,749 Five per Cent. Bonds of 1841 22 Provisional Certificates ditto 5,081 Four per Cent. Bonds of 1845 1,232 Three per Cent. Bonds of 1848 297 Provisional Certificates ditto 2,515 Capitalization Certificates

12, 109 Bonds, &c., amounting altogether to the sum of

:

WILLIAM W. VENN, Notary Public.

London, March 13, 1854.

CONVERSION OF THE PORTUGUESE EXTERNAL Debt.

Amount of Bonds, &c., cancelled and deposited on the 15th of November, 1853, by W. W. Venn, Public Notary

Ditto this day

Ditto, received from the 25th of February last till the 11th inst., viz. :

5 per Cent. Bonds and Cer

tificates of 1841

4 per Cent. Bonds of 1845. 3 per Cent. Bonds and Cer

tificates of 1848 Certificates of Capitaliza

O O

£3,100
27,350 O O

78 2 O

tion

New 3 per Cent. Bonds and Active Certificates issued up to the 26th January last Ditto, issued against the Stock received from that date to this day, viz.:

Bonds, Letter A, Nos. 1,552 to 1,619 £3,200 37,948 38,508 56,100

B,
C,

D,

Provisional Certificates of Active Stock issued in the same period

Ditto, redeemed for Bonds ditto

Total Certificates of Deferred Stock issued.

Total converted till the 26th of January last,
as announced on the 27th, including £37,729
into Internal Debt
Ditto, converted from that date to this day,
including £1,300 4 per Cent. Bonds, and
£3,402. 68. 3d. Capitalization Certificates
into Internal Debt

7 4 2,532 12 2

5,699,959 15 2 216,584 O 9

5,132,718 7 9

103,153 18 9

£4,574,105 3 4

3,345 19

The following is the estimated revenue and expenditure of Portugal, as given in the Budget for 1854-55:

Tobacco and soap contract

National property.

Revenue appropriated by the Decree

of August 30, 1852.

Interest of Internal Debt.

According to this estimate, there would be a surplus of £22,526. But the Budget for 1853-4 gave the receipts under the above heads at 11,580,358 milreis, and the expenditure at 11,784.471 milreis, being a deficit of

*The calculations adopted in Portuguese finance are generally expressed in contos of reis; but the milrei has been used here as being more easily understood. The milrei, which consists of 1,000 reis, is taken at 53d. sterling. The conto, or 1,000 milreis, at the same rate is equal to £220. 16s. 8d.