Star.
London, England, 1820-09-21 00:00:00

THURSDAY, SEPTEMBER 21, IS2O.

SPANISH FINANCES.

SPEECH OF COUNT TORRENO,

AS CHAIRMAN OF THE ►INANCE COMMITTEE. FRONOUNCED IN THE
CORTES, AT THE SITTING OF THE IST INSTANT.

" The Finance Committee having examined the
Memoir and Returns of the Minister of this Depart-
ment, now presents, for the deliberation of the Cortes,
its opinion on a subject of such weight and import-
ante. From the moment it commenced its labours and
proceeded therein, difficulties were experienced which
thwarted the attainment of the object in view; and
possibly the Members would have despaired, if their
wish to correspond with the confidence reposed in
them by the Cortes had not animated and sustained
them throughout the whole of this arduous enter-
prise. Previous and most delicate qucs:ions have
come under their deliberation ; long and painful de-
bates have ensued, in which the Committee has en-
deavoured to steer clear as well of the spirit of in-
terest and habit, which influence the conduct of some
public functionaries in decisions on matters of this
kind, as -the vague and impertinent clamours of
others, who, under the right of being heard, raise
themselves up into severe censurers of measuies
which their own capacities cannot reach, or which,
to speak of them, requires mature and careful exit•
mination, which such persons were unable to perform.
The Committee, in order to proceed with regularity
in the essential points of the task imposed upon them,
proposed to divide its labours into two parts, viz.-
Ist, The Returns and Expenses of the respective De.
partments of Government; and, 2dly, The means of
coveting these Expenses.--In the first, taking eco-
nomy foi the basis and principle on which they %vete
to act, they have endeavoured to reconcile the due
execution of the public service with the greatest pos-
sible alleviation of the people. Superfluous and in-
consistent expenses have at once been struck off, and
those which in their nature were necessary and indis-
pensable, have been curtailed. Pensions, at all times
lavished, and more particularly within the last six
years, to persons of little or no merit, have been sup-
pressed, and considerable reforms have been generally
adopted in all the branches of the Administration.
Nevertheless, the obstacles encountered at every step
in the search of remedies for evils produced by the
vicious administration of so many ages, and the un-
toward and ill-applied system of latter years, have
prevented the Committee from carrying into effect,
in the manner they could have wished, all the re-
forms which, in another state of things, they would
have deemed advisable. The Cortes will, however,
see, that in the branch of expiring sinecures, in pen-
sions, as well as in the active part of the public ser-
vice, the savings proposed by the Committee are con-
siderable, and they cannot fail to approve the good
wishes by which it has been actuated, when they exa-
mine and find, that from 660,000,000 of rials,.to
which the total expenditure formerly amounted, it
has now been reduced to 532,000,000,, a sum very
considerable, if we consider the disorder that has of
late reigned in the public administration, and the
difficulty, not to say impossibility, which exists, of
suddenly healing the deep wounds which have been
inflicted.—This first part of their task being con-
cluded, the Committee proceeded to the other no less
important and difficult one, viz. that of complying
with the obligations of the State. The Committee
will not here stop to examine what kind of contribu-
tions ought to be preferred ; no one of them is exempt
from the radical vice of withdrawing the national
riches from their natural channels, and if indirect
taxes appear• less burdensome to the contributors,
their administration is more expensive; but in direct
ones this is again less, although their collection is in-
finitely more unpleasant. As long as Europe conti-
nues to keep up so large an armed force as that
which already exists, nations cannot establish the
plans of economy so devoutly to be wished; and
Spain, in some measure compelled to follow the steps
of other nations, will have to endure the same heavy
burdens. The Committee, in order to render these
more bearable, has examined with attention the must
suitable means. Convinced, as the Committee is,
that the sudden step of changing from one system
of revenue to another different one, and not pre-
viously prepared, far from alleviating the people,
has no other effect than that of burdening them
afresh, and producing a considerable diminution in
the revenue of the State; and fully persuaded also
that precipitate reforms, generally, are not those
which secure the felicity of the people, but such only
as, established gradually and judiciously, keep up
with public opinion, insensibly improve it, and finally
convert it into a kind- of custom—such, I say, being
the conviction of the Committee, on this principle it
has made a difference in the system that is to be put
in force this year, and the one that is to be adopted in
the next. Before, however, manifesting its ideas on
these points, the Committee wishes to premise, that the
economical year ought to commence from July ;
then the accounts are given in, and at the expiration
of a month, after the termination of the sittings of
the Cortes, which assemble in March, full time will
be had for carrying into effect what the latter may
determine upon. Hence the Committee will speak
of the Finance System that is to be in force ftom
July, 1820, to the Ist July, 1821, and under this
supposition will proceed to lay before the Cortes, for
their deliberations, certain bases, which being by
them approved, will serve as a ground-work for the
new system of revenue, which can be carefully orga-
n nized from this time to the opening of the Cortes, in
March.—With regard to the system that is to go
into operation from the present time till July next,
the Committee is of opinion, that it ought to be no
other than the existing one, with certain modifica-
tions indispensably necessary for the relief of the
people. Such, for example, is a considerable decrease
in the direct taxes, the use of stamps for bills Of ex-
change, &c. and an essential alteration in the revenue
arising out of Crown-monopolies, adopting, at the
same time, in union and concert with the Committee
of Commerce, a complete reform in the Custom-

‘'E 1,.••

house Tariffs, regulated according to the principles
acknowledged most just in these matters. The direct
taxes which, with tolls, was calculated to amount to
301 millions of rials, will now be lowered to 152
millions, and of these 125 are to be assessed on the
people, and the 27 remaining, on those cities having
the right of tolls, this being only half of the 54 mil-
lions they formerly paid. The repartition is to be
made as formerly, but the Committee will neverthe,
less propose some improvements which are to be in,
sensibly introduced, and will be rendered more per-
fect in the plan that is to be prepared for March.--..
By this variation and decrease in the direct taxes the
people no doubt will be considerably relieved; but
in this, and the deficiency which will still be expei
rienced in ;he other branches of the revenue, a de-
ficit kill result, to cover which, a loan for this year
is required of 200 millions rials.—This measure,
which frightens many, either because they have not
well considered it, or because they are not aware of
the state of things, requires, on the part of the Com-
mittee, a short explanation, reserving to themselves
the opportunity of giving a 'more minute and com-
plete one when the subject comes under the discus-
sion of the House.—To two means only do nations
recur in order to cover their expenses, viz. taxes or
loans. The first, more natural and simple in happy
and prosperous times, may become extremely ruinous
when a nation suddenly sees itself compelled to in-
crease its expenses, as in the case of a necessary war.
The increase of 100 or 200 millions of taxes would
at such a time cause the most grievous evils to the
people; but not so the ten or fifteen millions of in-
terest, and the insensible reimbm scment of the capi-
tal, distributed on several years. In the first case,
the excess of taxes affecting the capitals, will not
only destroy the contributor for that year, but also,
by retrenching his means, will decreaie their pro-
ceeds and the riches of the nation depending upon
them, which does not take place in the case of a boar.
—Spain, although not threatened with a war, is
forced to recur to this extraordinary means. Her
riches, instead of increasing, have diminished through
past disasters and disorders, and it is impossible to
lay more burthens on the people, if certain obstacles
are not previously removed, and the plan of collect-
ing the tithes is modified ; but as this modification
canrrot take place at present, and only in the cout,e
of the next year, as the Committee will hereafter
propose, the measure of the loan is now rendered in-
dispensable. Most assuredly, if this were to be re-
' peated annually, it would become ruinous, as no
doubt would be the case with all nations which are
not in the same situation as England was during the
period of the French Revolution, which, if it in-
creased her debt to a height never before contemplai-
ted, that is, to 1000 millions sterling (nearly 100,00©
millions of rials), at the same time augmented her
riches in a most astonishing manner. Fortunately
Spain will not have to recur every year to the expe-
dient of loans, since, after the ensuing year, she will
be able to cover her own obligations, as the Commit-
tee will undertake to shew.

Another of the branches of public .revenue the
Committee would have wished to vary or totally
destroy, is that of monopolies; but the dread of a
deficiency has withheld the resolution. In theory,
no doubt, reasons can be alleged to prove the free-
dom of monopolised branches favourable to the pub-
lic revenue, but, unfortunately practice is at variance.
In the year 1813 all monopolies were set aside, and
the produce of these branches was almost nothing.
France, after some years of freedom, has again esta-
blished the monopoly of tobacco, considering this as
a most productive branch of revenue. Not for this
reason is the Committee a partisan of mono, o ies
but being of opinion that a mature examination
ought to precede the change, their discussion ought
to be left to the approaching meeting of the Legis-
lature, when the system of revenue is to be arranged
in a fixed and permanent manner. In the meantime
the Committee will content itself with proposing
considerable reforms, and which may serve to intro-
duce the subsequent improvements to be proposed.
In tobacco, the price is to be diminished according
to classes, and Commissioners are to be named for
the sale, who are to be paid so much per cent. The
officers and guards stationed in -the interior for the
purpose of preventing smuggling, shall be set aside,
and .in the ultra-marine provinces absolute freedom
shall be established. With regard to salt, all the
provincial depots being supplied, the hoardings shall
be taken away, and the consumer shall purchase
what lie wants in the warehouses; the prices shall be
low, and private manufacturers shall be allowed to
export the produce of their salt-works. From all
these reforms advantages to the revenue will result,
and at the same time less injury to the consumers.—
Neither has the Committee lost sight of the altera-
tions which are to take place in the administrative
part, by presenting to the Cortes the plan for its es.
tablishments, pointing out those which ara to remain,
determining their duties, the number of persons em-
ployed they are to contain, and the salaries the latter
are to enjoy. The Committee, in short, will speak
in a more full and deliberate manner of all the parts
of its plan, when the time of discussing each of them
arrives. The finance system being thus established.
I for this year, the Committee next proceed to present
certain bases, which will serve as a kind of prelimi-
nary ground-work for the adoption of the fixed sys-
tem of revenue intended to operate next year.
44 After the indirect taxes which will then remain,
either in the shape of general revenue, stamps, &c.
or any other that may be established, the deficit will
be covered by a direct contribution; distributed
among'the three sources of public riches, agriculture,
industry, and commerce. This distribution is to be
made by collecting the best statistical data we pos-
sess, and those• which subsequently may be obtained
by means of a new cadasi re that is to be made out.—..
But inorder to augment this contribution, more ran..
ticularly as regards agriculture, a modification in
place. This hail charge
tithes must lieeviouS// take

which exclusively-weighs on the farmer, and wrests
from him more than 26 per cent. of his net product,
i 4 not only unequal, but in the state of progress in
which the new institutions, and the measures corres-
ponding to them, are about to place the nation,
tithes will be an obstacle that will greatly retard the,
improvement of agriculture; and this grievance will
then weigh much less than it does at present on the
people, and will increase in proportion to the encou-
ragement given to agriculture and the cultivation of
tilw lands, more particularly when progressively this
extends to ihe barren ones, and tillage is more gene-
rallied. Nevertheless, the Committee, fearful of act-
ing with too great precipitation,' for the present only
proposes a reduction or modification in the tithes,
which it wishes the Corte; to approte. The gi eater
or lesser latitude that is to be given to this modifica-
tion is to be determined by them, when in the next
Legislature the finance plan is to be proposed for
their deliberation. With a certain modification in
the tithes, the Committee has alzeliy approxima-
tively calculated, that after competently providing
for the Clergy, and Parish Priests, and made the ne-
cessary increase in the direct contribution, there will
he a saving to the classes, wall regard to
v hat they now pay, of about two hundred millions
of t ials. Another basis which the Committee pro-
poses for the distribution of the direct tax among the
manufacturing and mercantile classe,, is the method
of patents. The difficulty of ascertaining correctly
the profits of these clas,ec, particolarly the mercan-
tile one, and the evils which would result to them
from prying into their operations and examining their
books, have determined the Committee to propose
this basis as the best to obtain from industry and com-
merce the quota that corresponds to them. The in-
direct cony ibutions may then experience the suitable
variations and improvements. The Committee, finally
recapitulating all above stated, vi ill again observe to
the Cortes, that its plan comprehends three parts, viz.
"1. An examination of the expenditure, and a retrenchment
open it of 12n millions of rials.
" 2. That as the economical year is to commence in July of
ti::s year, the ez6i•ing contributions are to be left standing till
July, 1 sal, deducting, for the relief of the people, one half of
the direct contribution, added to a considerabk improvement in
the monopolies, and in order to cover the deficit, proposing a
lo.:n of '.OO millions of rids, aftor having perfected the admi-
nistration, and reii.b.fed the tariffs uniform, in union and concert
with the Committe-e of Commerce.

" 3. A proposal of certain bases, which, being approved by the
Cones, will lay the foundation fnr the labours of a general and
complete plan of finance, in which, ac the same time that the
whole expenses of the State are covered, no deficit may result,
by adopting as a „Kinciple the modification of the tithes.
" The Committee, after manifesting to the Cortes,
the plan offered for their consideration, will not con-
clude without giving an assurance that it will imme-
diately proceed to the regulation of the public credit,
as so intimately connected with the present plan, and
in a matter so grave and important, it will adopt
the principles of justice and convenience compatible
with the state of the nation. It will propose means
for the extinction of the immense debt that weighs
upon us, but from this it will separate the Dutch
debt, which, for the present, is not to be extinguished,'
conformably to the wishes of the creditors, but the
interest paid With all due punctuality. By which
means the public credit being secured, and those
errors destroyed which are daily heard on this sub-
ject, and the country cleared from the immense na-
tional debt by means as economical as they are politic,
Spain will find, whenever she needs them, sufficient
resources o comply with all her arrears and obliga-
tions. With this plain exposition, the Committee
thinks the Cortes will be convinced that by the adop-
tion of its general plan, saving those improvements
their wisdom may suggest, the expenses of the year
will be covered, and the expenditure of the succeed-
ing ones will be provided fur ; further trusting, that
if the measures are approved which are to be pro-
posed for the extinction of the Spanish debt, and the
payment of the interest on the foreign one, the riches
will be increased by the division of property; the
love of the new institutions will daily augment by
the great number of those interested in their pre-
servation, and the happiness of Spain will be founded
on solid and unalterable bases:'

those events. The Authorities of the Province were alarmed.
The Carbonari exulted with kit. The troops who were at Avel-
lino, and ;lie Militia of the environs, dactired in favour of Mo.
real Altdepended on Colonel Concilii, who did not hesitate to
declare for liberty, being convinced that the enterprise and
wishes of Morelli were neither against his country nor the King.
While these things were passing at Nola and Ave'lino, Naples
was still a prey to the greatest anxiety. At ten o'clock in the
morning intelligence was received of the defection of the Regi-
ment of Bout bon; the Ministry was in consequence agitated
as if they had a presentiment of their destiny. A Journal called
the troops of Morelli a holufful if deserters, and yet this handful
of deserters caused the most powerful Ministers to tremble in
I their seats. A great Ministerial Council was instantly assem-
bled—a Council of Inspectors-General was likewise convoked.
They hesitated on the proper means to be takzn, and time passed
away. De Concilii, Morelli, and Minichini, were acting at Mer-
cogliano, while Medici, Thommasi, and Nugent, deliberated at
Naples. The day of the 2d passed over without any resolution
being formed: it was decided only that General Carrascasa
should set out on the following day with the forces and powt-rs
necessary to act or to treat, as occasion might require. This
General, wise in council, brave on the field of battle, a citizen
among citizens, gave confidence to the throne, the army, and
the nation. _ _

"'There was to be a party at Court on the evening of the 2d.
The !loyal Family was present. The King and the Duke of
Calabria appeared among their courtiers with a serene counter
name ; the rest of the family shewed nothing different from
common occasions. After the assembly the King and his sons'
proceeded to the theatre.
" Rut what was the state of the city of Naples? The Mita-
bitants of that immense capital foresaw the future fate of the'
Government, and the history of Spain immediately presented
itself to their minds. They were deceived. Other actions and
.another glory was reserved to my country ! The report of the
events of Nola spread with rapidity through all the provinces of
the kingdom—patriotism awoke In the hearts of all the Neapo-
litans. The noble enterprise of Morelli, like an electric spark,
inflamed the population charged with electricity.
" The morning of the 3d arrived. The militia, invited by
De Concilii, assembled at Avellino, and four companies pro-
ceeded immediately to meet Morelli. The idea of uniting with
the Constitutionalists filled them with joy. The garrison of
Avellino was composed of 3(X) men of the regiment of Sam-
nites. Ott the 2d they chewed their wishes in favour of Morelli :
on the morning of the 3d they declared themselves ornly. De
Concilii had no longer need to confide the success of his plan to
the militia and the troops : the Gothic edifice was falling of its
own accord—it became useless to sap any longer its foundations.
[The pamphlet then goes on to detail the events that occurred
between the 2d and the sth].
" On the 4th, 20,000 Carbonari and other citizens had al-
ready prepared themselves to.dcfend the constitutional cause."

THE EVENING. STAR. -