CONVERSION OF PORTUGUESE STOCK. TO THE EDITOR OP THE SPECTATOR.

Cornhill, 28th July 1841.

Sin—In justice to the unfortunate creditors of Portugal, dissentients to the decree of the Portuguese Government dated 2d November last, I have to re- quest the favour of your giving publicity to the subjoined statement, contrast- ing the amount of Portuguese Stock unconverted with the amount which has undergone that operation, as published in your last number.

Loans, total Five per Cents.

1831 £2,000,000 1832 600,000 1833 2,000,000 1836 900,000 1837 1,000,000 £6,500.000

Arrears of interest 171. 10s. per cent 1,137,500

£7,637,500 3,540,000 Rothschild's Three per Cent Loan- 5,900,0001., reduced, according to the terms

of the decree, to 5 per cent

Arrears of interest 17/. 10s. per cent 619,500

4,159,500 96,000 Bonds bearing 6 per cent- 80,000/. reduced accordingly to 5 per cent.

Arrears of interest 17/. 10s. per cent 16,800

112,800

Total debt bearing 5 per cent interest

11,909,800 Amount Converted.

Five per Cents. £1,128,800

'Three per Cents, 2,509,4501., equal in Five pit...Cents to 1,505,670

Six per Cents, 49,1001., equal in ditto to 58,920

Debentures and Coupons 427,606

3.120,996

Leaving in the hands of dissentients to the conversion £8,788,804

I have no wish to question the motives for your seeming approval of a mea- sure which the Committee of Bondholders have so strenuously opposed and rejected ; but as it appears to me from the agents of Portugal persevering in their endeavours to effect the conversion under any circumstances, that mo- tives must exist in prospective from which that Government contemplates some advantage to itself, I cannot refrain (as a constant reader and regular sub- scriber to the Spectator) from asking what your candid impression is on the subject ? Why is Portugal so anxious to exchange new Bonds for old, when the simple capitalization of the overdue Coupons would answer every purpose, and save a world of trouble and expense in printing, &c., and might be rendered acceptable and satisfactory to the creditors generally ? Why cancel one obligation and incur another, which they allow to be an equal security, and of a nature equally sacred and binding? if you, Sir, are capable of giving satis- factory answers to these simple questions, 1 will at once become a convert to your implied recommendation to convert my old Bonds for new. Trusting to your candour and impartiality in giving this insertion in your next number,

[Our correspondent omits to notice the amount of stock redeemed by the Sinking-fund, amounting to 1,794,7001.: be is also wrong in reckoning the over-due dividends as part of the capital of the old stock, when they cannot become capital until converted into new stock. Deducting these two items, he will End the present amount of unconverted Bonds to be 5,220,304/. and not 8,788,8041. as he states it. We cannot advise as to the conversion of his Por- tuguese Stock ; our object in presenting to the notice of our readers the statis- tics of the conversion now going on, being to enable them to form their own opinions upon the subject from the returns thus given. Our correspondent must see that the decree of 2d November last cannot be carried into effect with- kut an issue of new Bonds.—En.]