The Express.
London, England, 1864-11-01 00:00:00

[staniped, Id. AdditionaL)

which the British occupation of Gibraltar inflicts
upon Spanish feelings arises as much from com-
mercial as from military considerations. Up to a
very recent period the commercial system of Spain
wag, theoretically, a system of prohibitions. A
system of prohibitions of course implies a system
of Smuggling. It was computed, some years since,
that from 100,000 to 160,0110 persons were directly
engaged in this country in the occupation of
smuggling. The number indirectly engaged was
legion, for the Spanish custom-house was so no-
toriously corrupt, that almost any goods could be
got through for aliwyd any consideration. " A few
years ago," says an able commercial writer, "it was
computed that 3,000 actions were annually instituted
in Spain against illicit traders. The courts of law
ware tilled with perjury and the country with
bloody conflicts. Yet, nevertheless, French and
English goods might be purchmed in all the shops
at Madrid, and indeed throughout Spain, at very
little more than their price at Bayonne or
Gibraltar, from which they were principally
smuggled."

In 1849 the Spanish government removed the
prohibitions and introduced a tariff under which ad
ealonisa duties are levied upon articles of different
classes. The trade and revenue of Spain have both
increased wonderfully under this more rational sys-
tem. Still, however, the duties are too high ; and
smuggling, in consequence, continues. Gibraltar is
the principal seat of this contraband trade ; and it is
continually thrown in the teeth of the English, that
' we keep Gibraltar merely as a refuge for the con-
trabandist:A. It is certainly quite true that Eng-
land does export to Gibraltar, annually, far more of
certain articles than the scorpions inhabiting "the
Rock" can require for their own consumption. For
example, we send them " lineu yaru" to the annual
value of upwards of 100,0001. (which is pretty well
considering that Gibraltar does not manufacture
linen) ; "cotton manufactures," to the extent of
650,000 L a year (six times the quantity we export
to Spain direct) ; "silks," to the value of 15,000/.
a year ; and "apparel " to the extent of 40,0001. a
year. Some of these things may be intended for
trade with Morocco, but undoubtedly the bulk of
them are smuggled into Spain. So also is tea io
large quantities, though tea is not obtained at
Gibraltar from England, but, I believe, from Rus-
sia by way of the Levant.
No doubt the policy of Spain in order to prevent
smuggling, and to enable her to economise the re-
sources now ineffectually expended iu endeavouriug
to check it, would be to reduce her tiara lu Con-
sequence of the recent financial difficulties of the
nation the policy of the government has, however,
been recently the reverse. That intolerable finan-
cier, Senor Salaverria (recently deposed from his
position as Chancellor of the Exchequer), actually
laid ao extra percentage upon imports *luring the
early part of the present year, in the hope of ob-
taining an wcrea-e of revenue. The consequence,
as might naturally be supposed, has been serious
injury to different branches of trade. Some days
since • deputation of the commercial classes in
Madrid went up to the Hacienda, to make a repre-
sentation to the present Minister of Finance upon
this subject, and especially to beg that the extra
duties imposed on woollen goods might be taken
off. The minister replied that in the present
state of the Exchequer be could not listen to
any applications of any sort respecting reductions
of taxation ; his whole time was occupied
in endeavouring to raise money to meet the urgent
necessities of the State. The satirical wits here
declare that he concluded by asking the deputation
"to lend him five shillings," which, as they could
not muster that amount amongst them, drove them
incontinently from the great man's presence.
Apropos, I should mention, that in La Corn--
sposidotsia, the government organ, of to-day, there
appears a paragraph which will convey great joy
to the hearts of the foreign creditors of Spain. I
send it you in full :

It is stated today, that if hat night's meeting at the
ministry of Hacienda (st which Senor Bemoan's& so
nobly and eloquently addressed himself to the patriotism of
the bankers and largest taxpayers of /Madrid, to relieve the
Treasury from its present embarressmeote) should not meet
with soy result, the goveroment, adios within their
powers, with the strictest legality, and is accordance with
what the circumstances require, will endeavour to open the
foreign bourses and markets by making publicly knows) their
intention to arrange, with the approbation of the Cortes,
those questions which, at present, prevent the circulation of
Spanish funds in foreign markets.

I told you in my last that something of thi, sort
might be expected, and I have now the pleasure So
add, that it is believed here that the announcement
of La Corresponder.cia is official, mud that it accu-
rately foreshadows the intention of the government.

THE MINISTERIAL CHANGES IN AUSTRIA.

The Vienna Gazette contains the following auto-
graph letters from the Emperor Francis Joseph,
' confirming the news of the resignation of Count
Rechberg, and the appointment of Count idens-
durff-Pouilly as his successor :
My dear Count Evelberg,—At your request I have
graciously determined to release you from the functions of
Minister of my Household and of Foreign Affairs. On
this evasion, and in recognition of the faithful and
particularly devoted services that you have rendered
for many years under difficult circumstances, I name
you knight of my order of the Golden Fleece.
You are charged, moreover, to conduct to their close
the peace negotiations which are upon the point of being
terminated with the kingdom of Denmark, and to sign the
treaty of peace. FRANCIS JOSEPH.
Schwalm-nom, Oct. 27, Mit.
My dear Count McDade' ff,—l appoint you my Minister of
the Imperial Household sod of Foreign Affairs.
Scineuhrunn, Oct. 27, 1864. Fusels J 031.111.,
The Freak/cub/A of Vienna says :—" It is
asserted iu well-informed circles that the resigna-
tion of Count Recliberg implies no change in either
the borne or foreign policy of Austria. Count
Menadorff-Pouilly's secession to power will he
marked by an act that will cause much satisfaction ;
it is said that, as the result of a journey in Galicia,
Count bleisdortf-Pouilly has addressed a report to
the government, which has determined to raise the
state of siege in that country."
The Austrian Gaze He says :—" We do not think
that the change of persons will lead to a change of
system, not only because the general state of things
is nut favourable to sudden ahiftiugs and political
surprises, but because the other ministers preserve
their portfolios' and the Archduke Reguier still
presides over the cabinet."
The Nord of yesterday rays :

The subetatutiou of M. de Mensdorff-Pouilly for Count
Hochberg does not appear to have caused at Vienna the
emotion that might have been expected. At present, at all
events, we bare seen so trace of this emotion in the
newspapers of that capital, the majority of which
content themselves with anuouering that the re.
signation of Count Hochberg does not imply airy
change in the home or foreign policy of Austria. On
the other hood, this ministerial change has produced a great
sensation in Berlin, where Y. do Hochberg is coosidered the
most f support of the Atistro-Prosaian alliance, from
which Prussia has derived too msoy advantages not to desire
its oontiouanoe as long as possible. The Baba emblem even
tried to save Y. d• }Weisberg at the eleventh hour,
by promising, through one of its most accredited organs,
the Prorincial Correspondence. as important concession in
the customs question, which bad hitherto been peremptorily
refused. But this promise came too late. The resignation
of Y. de Recliberg was already accepted. Not that at Ber-
lin it is not hoped to find Y. de lleeedorlf a sufficiently
zealous partisan of the alliance between the two great Ger-
man powers ; but it is feared that the west of practical ex-
perience of the new Minister of Foreign Affairs will cause
his intiumme to completely disappear behind that of M. de
Schmerlios, who is the adversery of the Austro-Prussia•
alliance, which he is suspected of wishing to Meat up is

[TWOPENCE

order to swi•o• it by • clout oadandanding between dus.
Ws •od Enloe&

The Indipendanee Beige expresses itself upon this
subject in the following terms :
_ .

In their aomueott nom the masisterial modification
which has just taken place at Vienna the Pais papers en-
deavour to represent Count Rechberg's successor as parti-
cularly devoted to the French alliance. Bat neither the
antecedents of this @Woman nor his family eoanexions
justify this conclusion in the exclusive mune
gives to it. Count Menedorff Ponilly panne rather
for having English sympathies, and he has Dever &weed
to madder a reoonciliation with Russia as a political neces-
sity for Austria. Now that the understanding with Prange
upon the questions which so closely affect the interests of
Austria becomes for the latter a final guarantee of poem it
is natural that one of the tint thoughts of the new leader of
Austrian policy should be to cultivate an understanding
between the two cabinets which may prevent collision&
and impart to future eventualities a lee ennui aped. Oa
this held the Measdoiff.Pouilly Cabinet has full liberty of
action, and its relations with Ramis and England, who also
are thoroughly intorosiod is consolidating the general peace,
can bet facilitate it, took."