The Spanish Government is in for a grand quarrel with
the Stock Exchanges. S. Camaoho, the Finance Minister, thinks that if there is to be another conversion, he may as well make Spain appear solvent. This she can never seem, with her vast nominal debt of 2400,000,000 and more at three per cent., upon which she is paying only IL and never will pay more than 2. He, therefore, offers 4 per cent. upon the whole, if the bond- holders will take bonds so reduced that the interest will only yield 11- per cent. The bondholders refute,. In the first place, they want 250, which is reasonable ; and in the next place, they like the big debt, with interest varied from time to time, which enables them to carry out big gambles without risk- ing too much cash. S. Camacho is right in principle—always assuming that Spain cannot pay—as the apparent hugeness of a debt decreases the feeling of responsibility for exact pay- ment ; but he may not here n'ered enough.
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