The Sun.
London, England, 1870-01-27 00:00:00

111 E OF IN .

The statements from Madrid, published on Sa-
turday, as to the details of a financial inea3nre, said
to have been adopted I.y the Spanish Minister of
Finance, prove to have been correct. The tone of
the preamble read in the Cortes, of which, owing
to its length, only au indication can be given, is
honourable to Senor Figuerola. He says that in
the Budget he presented in May, 1869, in which
the sinking fund and interest corresponding to the
issue of the Treasury Bonds against the hypotheca-
tion of the promissory notes of the purchases of
national properties made in 1868, as well as to the
whole of the loan 1869, were included, the deficit
was 831 million reals (£8,310,000) ; but that as
out of these there is one half of the bonds of the
said loan and £7,140,000 of Treasury Bonds which
have not been negotiated, the interest, &c., upon
them and other economies already effected have
reduced this deficit to £6,130,000. He accepts the
Budget of his predecessor, Senor Ardanaz, not
yet discussed, in the part that relates to many
useful and welcome economies, but rejects the
adoption of other measures which he believes
are " sacrifices beyond a prudent limit" imposed
on certain persons and on the creditors of the State.
Senor Ardanaz imposed on all the public employes
and pensioners a tax of 20 per cent. instead of 5
per cent. as hitherto, and Senor Figuerola has
decided at once upon his own responsibility that
it shall be only 10 per cent. Regarding the pub-
lic debt, Senor Ardanaz proposed a tax of 20
per cent. on the coupons, both internal and external.
Senor Figuerola, rejecting this, determines that the
internal debt be subjected to a 5 per cent, tax as
hitherto, leaving the foreign debt untaxed in any
form whatever, which reductions, together with
others, will bring the deficit for 1870 down to
£3,600,000. Finally, after other measures, &c., he
says:-" Supposing no further reductions in the
expenses should be made, or increase of revenues
be obtained, which is very improbable, it must be
considered that by next year the first series of the
hypothecated 'Treasury Bonds, with interest, &e.,
and likewise a 20th part of the Treasury Bonds,
will be cancelled, which will reduce the expenses by
£1,170,222, and therefore the deficit in 1871 will
be £2,430,000." Referring to fresh reforms in
contemplation, he adds that it is the duty of the
State to consider the payment of the interest on
the debt as the most sacred engagement, and that
in order to secure the punctual payment of the four
next coupons (perhaps five) of the home and foreign
debt, and leave the mind of the Minister free to
direct his special attention to other matters of im-
portance, he thinks the Cortes ought to vote the law
by which he proposes to set aside for the purpose
certain properties and revenues, of which mention
has already been made.

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