The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-01-23
THE.DEBTS or SPAIN.
Her Financial Embarrassmenta an Aid ts
the Cuban Patriots.

the Cuban Patriots.
The struggle of the patriot Cubans for
political Independence from the rule of
monarchical Spain is a fiscal as well as
military contest for upon the continued
power of the Spanish government to meet
the pecunlary requirements OF the army Of
MarGlnez CampoS as well as upon the abil-
ity of that general to overthrow the Gu
bans in the field are dependent the hopes of
the Spaniards of an outcome favorable to
them of this last and most serious uprising
in the lever faithful isle" as it was once
called. Senior Navarro Reverter, Spain's
minister of finance, denies the statement
that the Spanish government intends to
raise new loan for the purpose of meeting
the expenses of the campaign in Cuba.
But II the war is prolonged there is very
little question that the Madrid govern
1nent will be compelled to seek by some
new loan or new taxes the additional
money necessary for its prosecution.
At the present time the debt of Spain Is
81, ESQ, 600, 000. Spain has about Is, 0OO,-
900 people, yet its actual debt-and the
credit of the Spanish government is none
of the best-is more than the entire debt
of the United States. The purchasing
power Of money is much greater in Spain
than it is in the United States and the
standard of wages is very much lower, but
Notwithstanding this the net debt to each
inhabitant in Spain is SIS, whereas in the
United States it is less than SIS, and
while the former is an ancient country,
almost in decadence, the latter is develop
ing each year new resources and items of
revenue and paying off, too, its items of
Indebtedness as they accrue, while the
Spaniards are compelled to renew their
obligations as they fall due.
More than half of the present debt of
Spain, $3.50, 600, 900 in amount, is what is
known as the home debt, held in Spain
without other security than the promise
Of the government to pay it, while $780,
coo OF the Spanish debt is held by the SUBJ
jects of other governments and is protect
cd by franchises or mOnopolies guaranteed
by the government for the better security
of the bondholders. The balance of tho
Spanish debt is of the variety known as
floating debt, upon which a large amount
Of interest has to be paid, and not a littlo
is of the variety known as demand debt,
payable at the preference of the hC1l.o1.
The interest charge upon the debt of tho
United States in $50, 600, 600 a year. where
IS the annual interest charge on the debt
of Spain in 500, 900, OO0. In 1882 the Span
ish govern ment compounded its debt by a
summary settlement with its creditors,
which, while it did not impair the only
security which existed for payment scaled
down the face value of the claims against
the government.
For many years Spain has been in a bad
way financially, and its creditors have
been compelled to compound at the best
terms they could secure their manifold
claims. The Spanish system of finance is
not such as, prosecuted in the United
States, would inspire confidence among
investors. The revenue of this govern
1nent, which averages about $500, 600, 900
Il year, comes in almost equal proportion
from customs duties levied by the treasury
department on goods subject to the tariff
and the internal revenue department, from
collections made at home. Each item
yields on the average about $3.50, 900, 600 a |
year, and the whole sum Cor so much of it !
AS is necessary goes to Equidate the run
ming expenses of the government and to
reduce the debt if there is any surplus.
In Spain, however, the total govern |
mental receipts from duties collected at |
the custom houses, and smuggling is an !
offense not unknown in the Spanish mon |
archy, amount to S35, 600, 900 a year. or
$40, 600, 600 less than the annual interest |
charged on the debt. Then there are the |
army and navy to sustain, costing on a |
peace fOoting-and of course on a war |
footing the amount is very much larger
$40, 600, 900, and then there are the various |
public departments to sustain, public |
buildings to pay for, a large civil list to
meet, and the dignity of the Spanish gov
eminent to preserve. There are pensions |
and allowances, salaries and stipends, and !
altogether it costs 5000, 600, 600 a year to
pay the expenses of the Spanish govern
lnent, or about two-thirds the expense of |
the United States government, though tho |
population of Spain is Is, 600, 900 and of
the United States 20, 600, 600. Tariff taxes
not sufdcing, the Spaniards have q land
tax, tobacco tax, a stamp tax and an OK
else tax, but all these combined do not
yield enough for the expenses of the gov
There is now the additional burden of
the money required to meet the drafts
upon the Spanish treasury made by Gen
oral Martinez Campos and his associates
for the vigorous prosecution by land and
sea of the warfare against the Cubans at
a distance of l, 600 miles from Spain. The
of an army at such distance
from Madrid is an item of large cost, and
many Cubans are sanguine of the outcome
Of the fight, basing their confidence upon
the crippled and disabled condition of tho
Spanish treasury rather than on the sue
cess of the Cubans in war, for the latter,
fighting on their own soil and acclimated
to Cuba, can prolong their struggle indeh-
nitely, whereas the Spaniards, if they do
not win soon in Cuba, will be confronted
oy the specter of national bankruptcy in
York Sun.