addressed by a Spanish bondholder to the _Times_, of which we here quote a portion:-- [7] FORD'S _Gatherings from Spain_. [8] _Histoire Politique de l'Espagne Moderne_, ii. 424. "Between 1820 and 1831, Spain contracted loans as follows, [details given], to the amount of 157,244,210 dollars. And on no portion of these loans does Spain now pay interest. In 1834 there was owing, in interest upon those loans, 49,541,352 dollars; and the Spanish government then offered, at the meeting of bondholders, held at the City of London Tavern, to give for all those loans, and the interest upon them, new stock, on the following terms:--A new active five per cent stock, upon which the interest should be always punctually paid, for two-thirds of the capital; a new passive stock for the remaining third; and a deferred stock for the overdue interest, on condition that they had a new loan of £4,000,000 sterling. These terms were agreed to, and the conversion took place; and there were issued in exchange for the old loans and overdue interest, £33,322,890 five per cent active stock; £12,696,450 passive stock; and £13,215,672 deferred stock. These are the stocks now in the market, in addition to the £4,000,000 loan then granted. In two years after this transaction, the Spanish government stopped payment again, and left the bondholders in the same situation, with one-third of their capital cancelled, or made passive stock, which bears no coupons, and is, consequently, not entitled to claim interest. In 1841, the Spanish government paid the active bondholders four years' interest; _i. e._, from 1836 to 1940, in a three per cent stock, instead of cash, and which produced the holders about four shillings in the pound; (this is the three per cent stock now in the English market, on which the interest is paid.)"[9] [9] City article of the _Times_, September 14, 1849.