The external debt has a more eventful history, and dates from 1820, when the first moneys were borrowed by Colombia in London. £547,783 was the amount raised, the interest payable being at 8 per cent. if paid in London and 10 per cent. if paid in Colombia. At the division of Colombia in 1830 the total debt had increased to £9,806,406, of which £3,180,456 was for arrears of interest; the new republic was adjudged responsible in 1834 for £2,794,826, being £1,888,396 of the original debt, with £906,430 arrears. In 1840 an attempt was made to put matters on a regular footing by the issue of bonds for the outstanding capital debt, bearing interest for the first seven years at 2 per cent., with a subsequent increase to 6 per cent. at the rate of ¼ per cent. annually. Deferred bonds were issued for the arrears bearing interest at 1 per cent. for the first year with a ¼ per cent. annual increment up to 5 per cent. The total value of bonds issued was £2,007,159, the interest being paid regularly until 1847, when internal troubles prevented the payment of the October dividend. After a period of chaos, a further arrangement was made in 1859 by which the earlier ordinary bonds were to be exchanged for others paying 2½ per cent. for the first year, and 3 per cent. subsequently, while similar bonds were to be issued for the arrears on both ordinary and deferred stock. The deferred stock was to be exchanged for 1½ per cent. bonds. Finally the bondholders agreed to accept 3 per cent. stock for the arrears of interest from 1840 to 1847, with a 2 per cent. cash payment in September, 1860. In 1862 a £1,000,000 loan was arranged through Baring Brothers, in London, the issue to be at 63 per cent., the bonds to bear interest at 6 per cent. with 2 per cent. annual redemption. The security was 55 per cent. of the La Guaira and Puerto Cabello import duties; two years later a further loan on the same terms was issued through the General Finance and Credit Company of London, the issue price being 60 per cent. In 1880 the bonds and loans since 1859 were converted into a new consolidated debt of £2,750,000 at 3 per cent. By resolution of August 5, 1887, the diplomatic debt (to France and Spain) was added to the National Debt, and these two branches of the external debt were duly recognised in 1889, the diplomatic claims of about £200,000 being paid interest at the rate of 13 per cent. Internal disturbances prevented the payment of interest in 1892 and 1893, but otherwise the amounts were regularly forthcoming. In 1896 a further loan of £2,000,000 was authorised for the payment of the guaranteed interest to certain railways, and for acquiring and completing other lines. This loan, issued by the Diskonto Gesellschaft in Berlin at 80 per cent., bears interest at 5 per cent., but the requisite sum was not paid by Venezuela either for this or other debts in 1897, and only partial payments were made down to August, 1901, when they ceased altogether.