the New States, where the debts incurred are trifling in the extreme, as compared with their natural resources. They also subject their capital to confiscation, at the commencement of every European war---to continental national bankruptcies---and to kingly fraud and swindling. And should they fortunately escape these greater evils, still, upon the mere rumour of war, the continental funds are sure to experience the most ruinous depression; while, in the event of its actually taking place, English capital becomes immediately locked up, and the capitalists can neither get principal nor interest, during the continuance of the war, however protracted such war may be.

"But no such apprehensions are to be entertained in regard to capital sent to the New World. The idea of war occurring between Great Britain and the New States of America for centuries to come, is perfectly absurd; while from their possessing Representative, instead of Absolute governments, even supposing it possible there should be such war, we should have no reason to fear those ruinous consequences certain to result from continental hostilities; and it is expressly stipulated, and indeed incorporated in the formula of the Mexican bonds, (as, I believe in the obligations of the new states) that the interest upon their bonds, shall be paid with equal regularity during war, as during

peace.

"Now, with regard to the security for English capital embarked in mining and other commercial enterprises to the New World; they will necessarily receive the protection of this government, equally with English capital in every other part of the globe, where British ministers and consuls are sent. The new governments are also fully aware of the importance of preserving good faith towards foreigners, not merely as regards national character, now that they are admitted into the family of nations, but also from the avowed conviction of their own inability, without the aid of foreign capital, to re-establish national or individual prosperity."

The writer analyzes, in conclusion, the comparative

3

amount of interest to British capitalists, who have invested their capital in continental and South American loans, and he observes shortly on the returns to be expected by those who have embarked their capital in mining enterprises in the New World.

"In consequence of the facilities afforded to the continental governments, of obtaining loans in this country, from the excess of surplus capital floating in the money market; they are now making a combined effort to reduce the general rate of interest on the continent, from five to three per cent. Some of these govern ments having already succeeded, there can be no doubt from their success, that all the others will use the most strenuous exertions to effect a similar arrangement.

"The loans of the new states, on the contrary, afford an interest of from six to eight per cent., the usual interest of money in the late Spanish colonies having never been less than ten per cent. and frequently much higher. Therefore, in addition to greater security, in respect of comparative debt and resources---exemption from confiscation---national bankruptcies---kingly robberies--ruinous depressions---and the liability of being deprived of the use both of capital and interest, during the continuance of war, however protracted---we see that the positive amount of interest from the South American securities is more than double that which is offered to the English capitalist in continental loans; while, there can be no doubt, in the event of the prospect of war in Europe, that by the abstraction of the large amount of British surplus capital from the continental loans, there would be extensive investments in the South American loans, by which the very circumstances that would materially depress the former, could not fail considerably to enhance the value of the latter securities.

"With regard to the amount of returns which may be expected from the capital advanced to the mine owners in the New World, I should fear publicly to express my opinion. But that they will be very great, when the improved systems of mining and reducing

the ores are fairly established, may be most confidently affirmed; not only from Mr. Moyle's estimate and calculations already quoted, but from the fact, of the enormous profits formerly obtained by the mine owners, notwithstanding the vicious and expensive manner in which every operation in both departments was conducted. In addition---the general principle observed, in forming contracts to supply capital to work the mines, is the engagement, on the part of the mine owners, to repay the sums advanced by the capitalist, out of the first profits of the mine, and to allot to him a certain share of the mine for a term of years, or in perpetuity. It therefore follows, that where common sense and common prudence have been observed in the selection of mines, the most lucrative returns are ensured to the capitalist."

NEW MINING ASSOCIATION FOR BRAZIL.

We have before us two decrees of his Majesty the Emperor of Brazil, authorizing the formation of two new companies for the working of the mines of silver and gold, and other metals. One of these decrees is in favor of M. Carneiro Leão, &c., the other, dated March 30th, 1825, in favour of Messrs. R. M. Raikes, Nicholas Garry, George Rougemont, Manoel Antonio de Freitas, Antonio da Costa, and Isaac Dias de Carvalho, London merchants. This company is authorized to dig and search for gold, silver, and other metals in the province of Spirito Santo, and in the mines of Castello.

We have not, now, room to enter into all the details necessary to point out the advantages which may be derived from these new associations: but in anticipation of our next Number, in which we purpose com~ pletely to investigate the subject, we cannot help ac

knowledging, that our conviction, founded on the terms of the decree, the conditions of the contract, local knowledge, as well as on the opinion of all our Brazilian correspondents, is, that the company authorized to work the mines of the rich province of Spirito Santo and the Serra do Castello, is unquestionably, of all the South American associations, one of those best calculated to justify our most sanguine expectations. We will state our reasons in our next publication, till then, we shall present our readers with the following extract of the Prospectus of one of these companies, which we have before us, and which, we think, will be highly interesting to capitalists.

IMPERIAL SERRA DO CASTELLO

INDEPENDENT BRAZIL MINING ASSOCIATION.

Founded on an Imperial Decree, dated March 30th, 1825.

CAPITAL ONE MILLION.

President, &c. &c. &c.

The object of this association is to employ capital in working mines of gold, silver and other metals, in the province of Espirito Santo, and especially in the rich and almost virgin mountains of Castello, &c.

The prospects of the company and its claims to the confidence of the public, are founded ;

1st. On the mineral riches of the district in which it is authorized to work.

2d. On the advantages the geographical position affords, and, 3d. On the favourable terms of the Imperial decree by which the establishment is created.

The mineral riches of the province of Espirito Santo, and particularly of the Serra del Castello, are well known. It produces gold, silver, amethysts and other valuable stones, and is situated in a salubrious climate. The abundance of gold and the facility of obtaining it on the surface are so great, that of late years, numbers of smugglers and unauthorized adventurers have flocked there, and in a few days been able to collect a sufficiency for the subsistence of months. These frauds on the revenue chiefly determined the Imperial government to grant the Castello mines to a company capable of working them as the Mining Regulations direct. Henderson, in his work on Brazil (1821) asserts, that the district through which the Rio Doce flows, is essentially auriferous, and he draws this inference from the pieces of gold, found in possession of the Indians, which, he adds, they readily exchange for articles of common hardware. The whole of this range of country is almost in a virgin state. Scarcely has it been trodden by the miner or the man of science.

The advantages by which the geographical position of the province of Espirito Santo is distinguished, are still more remarkable. On the north it is bounded by Porto Seguro; on the west by Minas Geraes; on the south by the province of Rio de Janeiro; and on the east by the Atlantic. It is almost in immediate contact, by sea and land, with Bahia and Rio de Janeiro, and situated on the line of communication with the most important diamond districts. It is not more than forty-five miles distant from the sea. Several rivers, navigable, or susceptible of The Rio being rendered so, afford an easy outlet to the sea.

Doce, which runs at a short distance from the foot of the Castello mountain, is the natural line of communication with Minas Geraes, and ere long will no doubt be for that purpose opened, as the intervening difficulties can easily be overcome.