Portugal has gone into liquidation. On Saturday, the Minister of
Finance made his explanation to the Cortes, showing that the Floating Debt has reached the figure of £5,100,000, that the annual deficit is £2,220,000, and that some £7,000,000 has annually to be paid abroad for interest, &c. He therefore proposed to give the foreign creditor 10s. in the pound, either halving his principal or his interest at his own discretion ; and to increase the Income-tax on internal bonds to 30 per cent. In return, the external bondholder will receive a lien on certain branches of revenue. All taxes are to be increased by supplementary rates, varying from 5 per cent. to 20 per cent., according to the sum paid ; and all salaries, the King's included, to be taxed in the same proportion. With these sacrifices the deficit will, it is believed, be provided for. The statement was received abroad at first with applause ; but as it is studied, criticism becomes more acrid. The only important saving made is at the expense of the public creditor, for the reductions will affect only the civil departments, and will be abandoned as soon as the Treasury is once more safe. The Floating Debt cannot be provided for without a loan ; the Budget, after all, will be only balanced ; and there is no proof that in a short time a further slicing of bonds will not be pro- posed. The proposal to sell the Colonies has, as we predicted, been rejected by the Chamber of Deputies. Altogether, though the new Ministry are braver than their predecessors, there is a want of thoroughness in their work.
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