The proceedings of the Fr...
The pioceedings of the French Chamber of Deputies on Saturday last derive whatever int4rest belongs to them from the new project for reducing the five per cents., which then came under tiscussion. M. LABOURDONNAYg made a specch of some length in Gondemnation of -the measure. He began by objecting that the new plan would create so much more capital, and would so sensibly retard and em- barrass the operations of the sinking fund.-UIt fact, it iss. manifest that if a smaller interest,be paid under the Mi- nisterial pioject, it will, by. the greater scope for.a rise.in the funds thus granted, 'ontinueC to 'be paid fira tonger term than according to * the proportion in whicb the in. terest is reduced; that, for instance, the interest will be reduced by orie-fifth, but that the period during whieh the burden continues will be increased by one-fourth]-M. LABOUiRDONNAYE thel -alleged that the law wyould be in- jurious to the agricultural'interest: lLe fundholders having suffered so much from the diminttioi of their incomes, would fear to reduce them further by investmenls at a high rate of purchase in land. He finally quoted the words of M.CORVETTO in 1817, who, in presenting the plan of a loan, declared the Government to pledge itself to the pay- ment of a perpetual annuity to .the fundholders. cc The capital," said he, "will never be rcdeemed." After some intermediate speakers, the Minister of Finance rose to explain the motives and probable consequences of the project. From the great rise of the funds, they had got into the hands of speculators, and became- exposed to hazardous fluctuations. The Government, for the sake of the fundholders themselves, proposed a plan embracing a twofold object-Ist, to reduce the public -debt; and 2d, to subs,itute for a stock which could rise- no higher, one susceptible of a considerable rise, and not liable to the risk of any redemption but that to be effected by thcSinl.- ing Fund.A four percent. stQck -would not yield sucl advan- tages; no onc could iii that case lhave beetk found to engage sor the reaemption Qf the existing filvL. A 24 per cent. scheme had been equally unsuccessful. To effect any bar- gain, it was necessary to have the power of redeeming; to be able tQ releem, it was necessary to issue at once a stock which it would be possible to negotiate at such a price as would produce the means of redemption. The Treasury has the means of accomplishing the conversion of the fives into thrces at 75, for such fundholders as may i prefer that change to the repayment; and threes have been selectcd by Government, in order that they may not get into the hands of the great moniedl companies, until after the fundholders have refused them. As a concession to the companies thus restricted, and to providle snfflcient means for the redemption of the fives, the Government has post- poned, to the Istof January, 1826, the actual relief to arise t'rom a reduction of the interest. The Minister then pro- ceeded to-combat the objections urged against the project ; and after a speech which lasted an hour, the dliscussion was adjourned.