!

The following Law was passed by the National Congress in December last :

[Translation.]

ARTICLE I. The Moratorium granted to the Hypothecary Bank of the Province of Buenos Ayres, by Law No. 3,874, of November 18th, 1899, is extended until the expiration of the term of the Moratorium granted to the Banco de la Provincia of the same Province, by Law No. 3,201, of January 5th, 1895.

ARTICLE II. During the term of this Moratorium the Government of the Province of Buenos Ayres will propose to the creditors of the Hypothecary Bank bases of agreement for the settlement and cancellation of the Bank's debts.

The following figures as to the approximate amounts of the different classes of Cedula securities outstanding on 30th June, 1902, have been supplied by Mr. Bemberg :

Reducing Currency to Gold at the official rate of 44 cents to the Dollar, and Gold to Sterling at 5.04 Dollars to the Pound, the above totals together amount to £15,207,738.

COLOMBIA.

Consolidated External Debt of 1896

Coupons due January, 1900, to July, 1903,

Envoy Extraordinary and Minister

Plenipotentiary of the Republic of
Colombia in Europe

Agents of the Bondholders at Bogotá... Señores J. D. Mallarino

The country now known as the Republic of Colombia has, since its secession from Spain, changed its name no less than five times.

1820. At the time when its first foreign Obligations were contracted it was known, in conjunction with the now independent Republics of Ecuador and Venezuela, by its present title of the Republic of Colombia. In this year the Vice-President, Señor Zea, came to London and issued transferable Debentures to the creditors of the Republic, bearing 10 per cent. interest if paid in England and 12 per cent. if paid in Colombia.

1821. Default was made on the first payment of interest.

1822,-One year's interest was paid on £1,759 of these Debentures presented for payment in Bogotá, and in the same year Señor Zea contracted with Messrs. Herring, Graham & Powles for the emission of a Loan of £2,000,000 at 84, bearing 6 per cent. interest. The object of the Loan was to pay off the 1820 Debentures, and to obtain funds for the prosecution of the War of Independence. It was agreed that sufficient of the proceeds should be left with the Contractor for the payment of the first three half-yearly Coupons. Debentures and accumulated interest to the amount of £777,220 were paid off. Almost immediately after the Loan had been taken up, the Colombian Government endeavoured to invalidate Señor Zea's powers by declaring him to have no longer authority to raise a loan. A Meeting of the Bondholders, however, confirmed the opinion of counsel taken upon this point, which asserted that the Republic was responsible, inasmuch as its repudiation of its representative had not been published before the raising of the Loan.

1824.-A Loan of £4,750,000, bearing 6 per cent. interest, was issued by Messrs. R. A. Goldschmidt & Co. at 88. This Loan was also for the purpose of carrying on the War of Independence.

1826. Both the preceding Loans went into default.

1832.—The Republic of Colombia was split up into three separate Republics, which were styled respectively New Granada, Ecuador, and Venezuela.

1834.-A Convention was drawn up, by which the Debt of the old Republic of Colombia was apportioned in the following manner amongst the three Republics :

*The subsequent history of the Debts of these two Republics is dealt with under the corresponding Reports.

1834-44-The interest on the Debt as distributed above remained in default during this period.

1845.-An Arrangement was concluded with New Granada on the following bases :

(1.) Issue of New Active Bonds for the principal of the Debt (£3,312,975), bearing 1 per cent. interest for four years, increasing per cent. per annum until the maximum 6 per cent. was reached.

(2.) For the arrears of interest Deferred Bonds were given so as to form a capital of 100 per cent. on the original Debt. At the end of 16 years interest was to be paid at the rate of 1 per cent., increasing per cent. per annum until 3 per cent. was reached.

(3.) The securities assigned for the interest were the nett Revenues derived from the Tobacco Monopoly and one-half of the Customs Receipts. Both descriptions of Bonds were receivable at par in purchasing any National property.

1848-9.-For the Coupons due 1st December, 1848, Treasury Bills at 1 per cent. per annum were issued. June and 1st December, 1849,

For the Coupons due Ist Treasury Bills, bearing 1

per cent. interest were issued by the New Granada Government.

1850-4. The Coupons remained unpaid.

1855. The Coupon due 1st June, 1850, was paid by Messrs. Baring.

1856.-The Government of New Granada received from Peru $906,000 in Peruvian 43 per cent. Bonds in cancellation of a Debt due to the old Republic of Colombia. These Bonds were issued to the holders of New Granada Bonds in exchange for Coupons due from December, 1850, to June, 1853, inclusive.

1858.--With the formation of a new Constitution the Republic abandoned the title of New Granada, and assumed that of the Granadian Confederation.

It will be seen that no interest had been paid in cash on the Debt since the Coupon of June, 1850, the last Coupon to which anything was applied being June, 1853, which was included in the distribution of Peruvian Bonds in 1856. 1861.-An Agreement (styled the Convention of Paris) was entered into in October, 1861, between the Holders of the Debt and the Government of the Granadian Confederation (which, during this year, changed its name to the United States of New Granada) by which it was arranged that the Debt should be liquidated as follows:

(1.) All interest due on the Active Bonds of the 1845 Conversion to be converted into Active Debt, and Bonds bearing interest at 2 per cent. per annum from 1st December, 1860, to 1st December, 1866, and 3 per cent. afterwards, to be issued in acknowledgment of such interest.

(2.) Twenty-five per cent. of the Import Duties from 1st December, 1860, to 1st December, 1866, and 37 per cent. of these Duties afterwards, to be appropriated for the payment of interest on the existing Active Debt augmented by the New Debt mentioned above, and on the Deferred Debt of 1845; one-tenth of such proceeds to be applied to the redemption of said Debts.

(3.) Thirty hectares of land to be assigned to each £100 Bond of Active Debt, and sixteen hectares to each £100 Bond of Deferred Debt of 1845.