New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-03-11
MEDITERRANEAN FINANCE.
ALL THE COUNTRIES OF SOUTHERN EU-
ROPE IN DIFFICULTY


PORTUGAL THE VICTIM OF ENGLISH FREE
TRADE-NAvARRE WILL NOT PAY TAXES
1rALY's TREATY BURDENS
Paris February 90.
Within the last fortnight the financial weak
ness of nearly every country in the South OF
Europe has been brought to light. not without
public scandal Portugal after falling to meet
her first obligations toward her creditors, has
now thoroughly frightened them by refusing to
secure them against actual loss. France, In sign
Of her displeasure has withdrawn her Ambassa-
dor from Lisbon; and the Portuguese funds are
no longer quoted at the Paris bOurse. Greece
is in still worse disgrace as she is suspected or
willingness to defraud her creditors by reason or
certain strange measures lately taken to limit
her payments The Interna tiona Committee,
which met here In Paris a few days since with
Sir John Lubbock President Is waiting anX-
iously for reply 10 its serious letter of protesa
ton Italy which has been alarming the world
by fears of revolution based on poverty that
threatens bankruptcy. has just received from
Slgnor Crispi's Minister Of Finance proposals for
a reform so drastic in its MEASURES that every
wonders what come of IT, Even spain.
the most self-suficent of all these Southern ma
OF the trouble excited in Navarro against the
levying of new and much-needed taxes. France
herself has been obliged to recur to bold expert
ments with her finances, and she has long been
the chief banker Of all the nations threaten
ing default But. unlike them. she is al once
the richest country In the world in point Of ac-
tuaI possession Of gold the most sufficient to her
own needs in Europe By her agriculture and in
dustry and by the savings of her thrifty popula-
ton
The American people have not yet learned to
invest their savings in all manner OF bonds ana
stocks from the four quarters Of the world They
have not even concentrated their National dept
in their own hands. But they enjoy unparalleled
agricultural resources. and the world cannot do
without their products. Their manufactures are
important enough 20 provide work FOR their
laborers and. SO long as a wise protection al
lows them 10 face competition from abroad. their
industry can subsst on the home demand More
over. though they have not their proper share in
the CARRYING trade Of the world. yet their co'h-
merce IS in fair proportion to their resources and
the numbers OF their population Only their
finances feel that trouble and insecurity which
affect the rest of the world. Perhaps the plain
statement OF a few known facts that have
brought the nations bordering the Mediter-
clear up ideas concerning the state Of things at
home In nearly every case II will be found that
England exacting all payments to herself in gold
and preaching free trade 10 others is not lit
tie the cause Of emptying the purses Of countries
that for other reasons would find It difficult TO
make both ends meet.
In Portugal the difficulty is Of long standing.
The phylloxera has lessened the production OF
wine. which represents two-thirds OF the entire
expectation OF the country. Al home. besides
tho bad management OF years which left behind
a refractory public debt. the State has made IT.
SELF responsible for railways which are now open
~ bankrupt. A monetary crisis has kept pace
with the financial difficulties. Portugal has tried
10 initiate England in strict mOnometasm, with
the result that might be expected IN country
one-third OF whose total importation is from
Great Britain Gold long since left the country.
the efforts 10 bring I'm subsidiary silver circuia
ton have failed and affairs have had 10 be car
riod on with deprecated paper currency. There
hav been no more varied lessons in finance dur
ING IN. whole century than the unsuccessful
o,ternnis Of successive ministries 10 meet
,he deficit In the yearly budget and TO
satisfy FOREIGN creditors The State monOp-
DIV Of tobacco handed over to an Inter
national Committee guaranteeing neces-
sary loan: the State assurance OF banking opera
tons. to secure the necessary gold reserve war
ranting the issue OF the paper bills that must
be used for everything from the purchase OF one
cigarette 10 the payment OF thousand "orh-
men; the Intervention OF the State to quiet the
r.n,ors.rances OF foreign financial agents, backed
I'D bv Governments egitimately exercised over
the non-payment OF interests on stocks issued In
the states name: even the serious reduction OF
the salaries Of State functionaries-all have been
tried in vain.
In those last few DAYS when foreign creditors
had finally consented 10 an arrangement VIII"
the RAILWAY companies which. II not satisfactory.
was the best that could be hoped for, the new
Portuguese Cabinet. suddenly and without no.
rice. has pubishcd a "convenio' that makes no
account Of this arrangement to which nothing
v.,s vouting but the Portuguese Governments
consent Between bankruptcy at nome ana d
partial Reputation abroad. the choice mas Iaiien
ON the latter Hence the wrath OF France: Whose
nsnnla have largely invested In the defauting
railways Hence. different as the circumstances
are "A lesson To America not 10 try the costl!
experiment Of free trade with f.ngland asai''S1
whose rirl standard Of gold In exchange there Is
no weapon loft but the protection OF nome IN
dustries which will dispense with the necessity
of contracting debts toward her Inc llhely
Lowing OF customs duties would not. indeed, nave
saved Portugal from the natural results Oh d
financial acknowledgement that led her INTO uep'
beyond her power To pay Tor puDiic WORMS w
able to pay for themselves. Ana her nome pro-
dur,ion however protected. could not have re-
stored monetary balance when. in her case
recommendation was bound constantly To destroy,
Tut thr,ugh all her misfortuneS Portugal mas
given n fair example Of what II Is impossible for
SSn,, Gnvnrnment ~ accomplish. steered by what
ever political party. .. -,
First u government cannot create money by
printing MINER bills: somewhere there must be IN
reserve the precious metals In value correspond
ing TO the face value of the dis. second where
the carving trade and considerable portion Oh
the necessary imports of nation are In the
hands of a country like England. admitting only
the gold standard OF exchange. government,
cannot protect It's necessary reserve OF goiu
otherwise than by the imposition OF sufiicient
customs duties on the imports from that coun-
nv. Income taxes or State monopolies, specuia-
lion in free coinage portugal even tried the des-
nerate expedient Of importing French sliver)'
nnev-fangled loans at home moratoria OF pay
ments abroad-all are without avail so long as
the essential leak in the finances remains I'M
nlugged do not speak Of the direct difficulties
created bv British capital for Portuguese credit