DECREE of the King of Spain, relative to the liquidation of the Public Debt.-Madrid, 13th October, 1815. (Translation.) OUR Lord the King has been pleased to issue the following De eree : Having, by Divine Providence, been released from a long captivity, and restored to the throne of my Ancestors, my paternal feelings have been wholly occupied with the two-fold care of fulfilling the important duties inherited by me from my illustrious Predecessors, and in giving my beloved Subjects proofs of my gratitude and affection for their heroic and persevering efforts to preserve for me and my Descendants, a Crown, of which perfidy, supported by power almost irresistible, threatened to deprive me. An enterprise so arduous, so prolonged and so extraordinary in every point of view, could not fail to produce the greatest changes in every branch of the Public Administration: property, whether belonging to Corporate Bodies or to private Individuals, was destroyed, while the Funds, which had been destined for the payment of the Creditors of the State, were, of necessity, applied to the pressing and peremptory exigencies of the Government. The sorrow which I naturally felt under these circumstances, was still further increased when, upon directing my paternal and unremitting endeavours to the cure of these evils, I found them so numerous, so serious, and so complicated, as to render my success extremely difficult: notwithstanding this, however, I still kept in view the sacredness of those obligations by which the Crown was bound to the Public Creditor, obligations recognised by my august Father in his Royal Decree of the 30th August, 1800, relative to the Debt contracted during his own and preceding Reigns; nor did I forget that the Debt had not only been considerably increased by the Creditors voluntarily declining to receive the interest upon their lawful claims, in order that the Funds to be expended in the defence of my Crown might suffer no diminution, but also by the recent and heavy disbursements made by the most zealous devotion to my royal person. These con siderations, together with the conviction that the amount of the securities is insufficient for the consolidation of the Public Credit, if not supported and strengthened by the introduction of some firm and regular system, have determined me to issue an immediate Order, that the Establishment created under the name of the Board of Public Credit, shall, in the interim, remain in its present state, and that at the same time, a strict inquiry shall be made, whether it would be expedient to make any change in the principles upon which the said Board was originally constructed, as well as in those means and resources, the employment of which could alone be justified by the extraordinary nature of existing circumstances. Fully aware of the great difficulty and importance of this serious suoject, and of the evils to which the Credit of the State has been exposed, in consequence of the neglect of all those measures which had been suggested for its support and preservation, it has been my anxious wish to place it upon as solid a basis as possible: for which purpose I directed, by my Royal Order of the 4th of October of last year, that the Royal Council, the Council of Finance, and the Board of Public Credit, should advise me upon the means which they considered necessary to be adopted, and upon those which they regarded as the most effective and economical system of strengthening Public Credit. They have performed their task: I have examined their labours, and have, moreover, sought for such other information as I judged necessary; and following the paternal dictates of my heart towards Subjects who, at all times, but more especially in the last destructive War, have cheerfully devoted themselves to support the State and preserve my Crown, I have, as an additional proof of my constant affection for them, and of my efforts for their welfare, resolved to establish the bases, and apply the means hereafter mentioned; reserving to myself the power of increasing them to the extent of which they are susceptible, a labour in which I am unremittingly engaged. CHAPTER I.-Bases. ART. I. The whole Debt of the State, which was placed under the management of the Board of Public Credit at its creation, as well as that which has since been added by my Royal Order of the 12th of September last, shall be also placed under the management of a Com. mission, entitled the Board of Public Credit. II. I authorize the said Board to settle exclusively all matters, administrative or financial, connected with this Commission, submitting to me, through the Minister of Finance, such as may be considered as requiring my Sovereign decision. III. All disputes shall be brought to a final hearing, and decided in the Courts of Justice, which take cognizance of and decide those connected with my Royal Revenues, with right of appeal to the Council of Finance. CHAPTER II.-Liquidation of the Debt. IV. The credits or claims upon Government shall be liquidated (being first divided into capital and interest up to the 31st December, 1814,) under the regulations in force in the respective Offices whence they issue, excepting Capitals in Vales (Bonds), which shall be considered as Capitals, to be liquidated by the system of renewal, which system shall remain in statu quo, until some new arrangement be determined upon. CHAPTER III.-Classification of the Debt. V. The whole Debt shall be divided into Debt with interest, and Debt without interest: the former shall be subdivided into Debt of Compulsory Inscription (Imposicion Forzosa), and Debt of Free Disposal (Libre Disposicion); that is, into Untransferable Debt and Transferable Debt. VI. The Untransferable Debt, or Debt of Imposicion Forzosa, includes all the capitals which the Holder cannot freely dispose of, and the Transferable Debt, or Debt of Libre Disposicion, all those which he can alienate at pleasure. VII. All the Debt with interest, whether of Imposicion Forzosa or of Libre Disposicion, shall continue to bear interest the same as in the year 1808. VIII. The Holders of the Debt of Libre Disposicion, with interest, may exchange it for the Debt without interest, for the purpose of enjoying the advantage of the preference which the latter will obtain ; and those who do so, shall cease to claim any interest from the 30th day of June of the present year, receiving for such interest as may be Debt already due, Certificates of the Debt without interest. IX. For the Debt of Imposicion Forzosa, with interest, the Board shall issue Certificates of the same name, to the amount of the capital to which each Holder is entitled in liquidation; and for the interest due up to 31st December, 1814, Certificates of the Class of Debt without interest, shall be given. X. The Creditors of the Debt of Libre Disposicion, with interest, who do not exchange it for the Debt without interest, shall receive fresh equivalent Certificates. XI. The Certificates of the Debt without interest, shall be in fixed sums of 500, 1,000, 2,000, 4,000, 10,000 and 20,000 reals; and each Holder shall have his claims paid in preference, with those of the higher amount: balances which do not amount to 500 reals, shall be paid with Securities of another Class. XII. The interest upon the Debt of Imposicion Forzosa, which may have become due since the 1st of January of this year, or which shall hereafter become due, shall be paid in cash, such payment to commence as soon as funds can be found for that purpose. The interest upon the same Debt, due before the period above-named, as well as the interest already due, or which shall become due upon the Debt of Libre Disposicion, which shall not have been exchanged for the Debt without interest, shall be paid off with Certificates of the Debt of that Class. CHAPTER IV.-Means to be applied to the payment in Cash, of the 4 B - Tolls, Duties, &c.) of all the Towns in the Kingdom, together with half their annual surplus. The proceeds of the Indulto Cuadragesimal (Lent Indulgence) of the Indies. Half annat of the inheritances in collateral successions of entails and hereditaments of eldest Sons. 25 per cent. upon the entails and acquisitions by mortmain, and a half annat, every 25 years, of the rents which may be subjected to Ecclesiastical Mortmain, as an equivalent for the half annat they had to pay to the Sinking Fund in collateral successions. The amount of the extraordinary Contribution of Frutos Civiles (Municipal Profits). The amount of all the arrears of the Taxes which were applied to the Consolidation of the Debt. Gracias al sacar (Fees paid upon appoint. ments) of Spain and the Indies. One fifth part of the Bulls of Cruzada para vivos y difuntos (Contributions for the Crusade against the Moors), and one half of the proceeds of the Bulls of ilustres, lacticinios, composicion, (the Bull of ilustres being the payment of certain Fees on the creation of patent Nobility,-the Bull of lacticinios allowing the use of milk upon Fast-days, and that of composicion permitting Parties to redeem several separate Dues by the payment of one sum at once), and others, which are in force in my Dominious. The tenths of exentos (Fees paid by Persons exempted from the performance of certain duties), and the half of Novales (Tax paid upon lands cultivated for the first time) in conformity with the Decree of 1800. The half of the proceeds and rents of all the Bishoprics of Spain and the Indies, when not filled up. One year's amount of all the proceeds and rents of the successive vacancies which occur in all the Prebends, as provided by the Decree of 1800. Two-thirds of the third part of the incomes of the Bishoprics, upon which I can charge Pensions, and one year's amount of the Pensions which I may grant upon the remaining third part. One year's amount of the Pensions of the Order of Charles III. The one year's amount still due of all the Commanderies of the 4 Military Orders, and of that of St. John of Jerusalem, whether already granted, or hereafter to be granted, including the greater and lesser Dignities, with the exception of such as have cure of souls attached to them. The Tax imposed on account of the old Consolidation upon brandies and other spirituous liquors. The proceeds of the Noveno decimal (Tithe Ninth). Idem of the Excusado (Subsidy for carrying on the War against the Infidels). Idem of the Lead Mines, with liberty of exporting, upon first furnishing whatever is required for the Military Service, and the estancos (Government Stores,-Lead being one of the monopolies), at the price which shall be fixed. The Duty upon wools imposed for the old Consolidation, by the Decree of 1800. CHAPTER V.-Properties and Proceeds to be applied to the Sinking Fund of the Debt without Interest; viz.:- XIV. The proceeds of such property as has been sequestrated, as well as that which, belonging to Traitors, has been or shall be here. after confiscated and sold, including the property of Don Manuel Godoy. The Grand-Masterships of the 4 Military Orders in venta y renta (to the Grand-Masterships having been attached certain lands, tenements, &c., the proceeds of which, when either sold or let, are described by the expression venta y renta). The proceeds of the venta y renta of the Commanderies, which are now vacant, or shall hereafter become so, of the 4 Military Orders, and of that of St. John of Jerusalem. The half, for the present, of Common Lands, and of those belonging to the Crown. Property accruing from Obras pias (Charitable Institutions), and one-seventh part of the Ecclesiastical Property which has been secularized, and is applied to the Public Credit. All the Estates and Properties, whether consisting of Propios y Arbi. trios, Common Lands, Crown Lands, or any other Public Appurtenance, which may have been sold during the Revolution, without due legal authority; the Purchasers of the said property being indemnified in the manner to be hereafter determined upon. The Landed Property of the Crown not required for the use of my Royal Person and Family. The Estates of the last Duchess of Alba incorporated with those of the Crown; and whatsoever other property may be discovered as belonging to the Crown. XV. The aforesaid Property and Proceeds shall be administered exclusively by the Board of Public Credit and its Branches. XVI. The sale of this Property shall be immediately proceeded with, under certain Regulations, to be drawn up with regard thereto. XVII. Of each Estate thus sold, one-third part of the value at which it shall have been valued, by an appraisement, to be made previously to the sale, shall be reserved for the State. XVIII. For the value of this third part, taken upon the appraisement of the said Estate, and not upon the sum which it shall fetch by Auction, the Buyers shall be liable to a Quit or Reserved Rent (censo) of 3 per cent., redeemable in cash, at the option of the Possessor of the Estate, XIX. The Estate shall be held expressly mortgaged for this Quit or Reserved Rent. XX. The sales shall be made by Public Auction; payment for the purchase to be made with Certificates of the Debt without interest, to the exclusion of that of every other Class, and even of cash. XXI. If the biddings for the said Estate do not amount to twothirds of its appraised value, it shall not be sold. XXII. The proceeds from the Property, until the sale thereof, the Quit or Reserved Rent, its capital in case of redemption, and the surplus of the Funds applied to the payment of the interest, shall form a Sinking Fund for the Debt without interest; preference being given to the most privileged Class of that Debt. XXIII. The Board of Public Credit shall annually lay before me, |