Kansas City journal., 1898-01-08
BOTH GOVERNMENT AND PEOPLE
ARE POVERTY STRICKEN.
RESOURCES ARE EXHAUSTED.
HUNDREDS OF THOUSANDS IDLE AND
LABOR RIOTS COMMON.
Rich No Better on Than the Poor, for
They Can Collect No Rents Nor
Interest-PatriOtism Plen-
tiful, hut Cash Is
short.

Washington, Jan. From recent ofliclai
reports it would appear that the finances
OF Spain are in a desperate condition. ana
there does not seem to be any imheuii'o
prospect of Improvement. The revenues
from customs during the last calendar
year were very small compared with pre-
yious years, because the poverty of the
people has not permitted them to purchase
imported goods. Local trade. manufacture
ing, agricultural and private enterprises
of all sorts have been seriously hand.-
capped by scarcity of money. by the depre-
ciated currency and by exorbitan, taxation.
The government has suspended all pubic
improvements for the want of means ana
has cut off all unnecessary expenses under
the civil service. for the purpose of divert
ing every possible cent of revenue to the
support of the army. This has thrown nun
dreds of thousands of people out OF em-
ployment who have no present means OF
subsistence and mostly dependent upon
charity. All the money that ear be raised
is sent TO Cuba to maintain the war or IS
applied to sustain the public credit oy
meeting the interest on the national debt
| Under instructions from the ministry the
municipalities throughout the kingdom
| have initiated the example Of the govern
ment and suspended all public work. thus
| adding to the army of the unemployed In
| ers. manufacturers. merchants and other
| employers have been compelled to cut down
| wages, and if there were not so many peo-
| pie seeking work this would have been
| resisted by a general strike.
There have been labor disturbances in
| several parts of Spain. One of them was
caused by the bakers. The present high
price of wheat all over the world adds to
| the cost of living and increases suffering.
low tc- 1tr,er At 10 fhl Nrfr VA
| years ago. Even with normal harvest
| Spain must annually import several million
| bushels of wheat. The duty has been In
| creased 800 per cent In two years and IS
| now excessive. In order to protect the con-
| sumers the government regulated the price
| of bread by law and the dealers We're COM
| PEELED to reduce wages in order to save
| themselves from loss. The bakers in Ma
drid resisted and struck. and for several
| days last month there was Il bread famine.
The government intervened and detailed
| bakers from the army to work in the pri-
| vate establishments until the strikers were
starved out. in several other branches OF
| industry strikes have resulted In similar
manner. The wage-earners. however, are
compelled to choose between lower pay or
| starvation. and this condition Is breeding
| general discomfort.
The rich are no better off than the poor.
Their tenants are unable to pay rents. and
money borrowers cannot meet their notes.
1t is difficult for them TO pay the interest on
| renewals. The National Bank of Spain has
| increased its circulation SO much in excess
| OF Its reserve tnat It's notes are Ut n NlS-
| count which has caused corresponding
increase in the price of all commodities.
! Thus the purchasing power of ordinary
wages and incomes is greatly impaired
One cannot buy as much to-day for 100 Pc
setas as 80 pesetas would procure five years
ago. If the Bank of Spain were called up
on to redeem its demand notes panic
would follow. tine finances of the whole
kingdom would be paralyzed and every
body would be bankrupt.
The inability of the government to bor-
row money abroad has made 1t necessary
to appeal to the patriotism of the people:
which thus far has been the sole means OF
sustaining the army and the public credit
Every man of wealth has invested his en-
tire surplus in government bonds. Ihe last
national war loan raised under press
| ure and when loan of S50.0O0,00O for the
| Philippine islands was called for only
| s. COOGOO in cash was subscribed. There is
| no lack of patriotism, but the resources OF
| the country are exhausted.
The appropriation voted by the last cor.
| tes for the increase of the navy Mas not
| been utilized because there has been no
| cash in the treasury to meet 1t. The pay
| of the army is from six to nine months in
arrears, and the new ministry is confronted
with a financial problem at home more
serious than the political problem in Gu
ba 1t costs from 6.00O.000 to Sl0OOO.OSO per
! month to maintain the army in cuba, and
the only way in which current expenses
! can be met is by repeated issues OF paper
, money, which naturally reduce the value
! of the present circulation. increase the
rates of exchange and disturb public con-
fidence.