The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-09-17
Where Does Spain Get the Money ?

We are unable to say whether Spain has
completed the financial deal which the
Treasury was recently engaged in trying to
arrange. 1t was a scheme for raising a loan
of $50, DOC, 900, for the Cuban wal service,
upon the security of the Tobacco Monopoly
held by the Government. BY mortgaging
this source of income the Government had
expected to procure the funds needed for
the support of the army in Cuba, and for
other military expenses incurred there. A
French financial house, to which Spain Is
already heavily indebted, was recently ap-
preached upon the subject; but the terms
upon which it sought to negotiate were such
as Spain was unwilling to grant. 1t is
probable that she has granted them, under
the stress of necessity.
The last previous financial device, which
served a temporary purpose four months
ago was that OF Offering the Spanish
customs duties as security for a loan of
$4O,OOO,O 900, to meet the expenses of the
Cuban war. The security was satisfactory,
and the loan was arranged, though it had
to be admitted that the credit of a country
compelled to mortgage the receipts at it's
custom houses was too low for safety.
We had another report that the Govern
ment had required the Bank of Spain to
furnish a new loan, and had authorized the,
bank to increase Its issue of paper to the
amount demanded. 1t was virtually n
forced loan; the bank could not refuse to
make 1t, as 1t Is dependent upon the Gov.
eminent for its existence.
1t has been impossible to return to the
expedient which was adopted last year,
when, after the Government had failed to
effect a loan of 800, 600, 900 In any for.
eign market, it raised the amount BY what
was called a popular loan," though, in
truth, nearly the whole of It was sub.
scribed by banking institutions and other
subsidized corporations.
The attempts made In recent times to
float paper money in Cuba upon the Sc
curity of invisible silver nave brought
confusion into business there and dis
tress upon the people. The merchants
are compelled to take it or suffer the pen.
alties provided for refusal to do go the
soldiers were forced to take 1t at first.
but their dissatisfaction became 80 great
that they now receive q part of their nav
In silver. The paper money has fallen till
1t Is worth only about half It's nominal
value. but the amount of 1t in circulation
has increased till 1t is now between $50.
600, 900 and $40. 900, 900, II not more. II
is a Spanish war tax imposed upon Cuba,
The chances OF Its redemption at any price
depend upon the result of the war.
We have recently learned of the renewal
OF SPANS efforts to raise loans in Franco
Holland, and England, where she has 80
often, within three years, received the cold
shoulder. The trouble in the case is that
the more productive of the resources of
Spain are already in pawn as security for
foreign or domestic loans. The Almaden
mines are leased to the RoTHscHILDs the
State lotteries are farmed out, as is the
salt tax and the various novel schemes
for raising money have not fulfilled expec.
tations. The main Spanish railway com.
panies, instead of assisting the State, have
sought concessions and assistance from It.
1t Is by such devices as are here spoken
OF, and by others not made known to the
public, that the Spanish Government has
been able to procure funds this year. In
the budget adopted by the Cortes last Sep
TENDER provision was made for the er.
penSeS which. 1t was thought. would be