Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-05-01
Proposed Increased Taxation.

The new finance minister, Senior Villa
verde. is preparing to increase taxation and
make an arrangement with the hondholders
as credtable the circumstances of Spain
will permit There have been almost con-
slant deficits for many years in the ordinary
peace budget of Spain, but these will prob
ably be brought to an end when complete
program of financial reform has been pass
ed through the cortcs. Senior VilaVerde
proposes some new taxes on a!cohoIs ON
petroleum, on native and foreign sugars.
and, above all from scheme which would
be very popular in Spain, IAN impuesto
solve las utilidades," in the Vernacular
virtually a sort of income tax, that would
increase the present very light tax of 3 per
cent upon all state, provincial, municipal
debts and securities of every sort to put
the holders thereof on a level with the land
ed interests that pay from IS to - per cent
of their revenue, and with the Industrial
and commercial classes, that also pay very
heavy taxes. The present premier Silvela
and the finance minister have foreshadowed
that they expect to be well received by
the majority Of Spaniards, who have
constantly demanded fair redistribution
of taxes to make all subjects contribute to
the increasing burdens of the budget but
neither have SO far allowed their intentions
to transpre in regard to the extension of
such tax TO the coupons of the external
debts and treasury debts hitherto EXEMPTED
from all impOsts These seem to be the
most likely devices to which the conserya-
tive government intends to resort.
Resumption of Gold Payments
1t is not unlikely that the reorganization
of the finances Of the Spanish government
will result in the resumption of gold pay
ments by the Bank of Spain. The bank has
struggled courageously to aid the treasury
in maintaining public credit and has kept
its notes, throughout the critical events of
the last two years, considerably above the
gold value of the greenbacks issued by the
United States treasury during the civil war
The commercial operations of the bank
have been sound in the main and its credit
would not have been impaired If the gov
eminent had not insisted upon the abuse of
the note-issuing power In order to provide
paper money to meet public expenditures
Only for a short time was there any de-
mand upon the bank for the redemption of
it's notes in coin. Gold payments have been
suspended for some years, and the notes of
the bank were far above the bullion value
of silver. There came time, however,
after the disasters at Santiago, when the
standing offer of the bank to redeem its
notes in silver was awaited of to a limited
extent. The bank paid silver freely and
the demand for it was of short duration.
writer in a recent issue OF Paris finan-
cial journal declares that lat Barcelona
where the exchange of notes for silver was
carried on upon a large scale, the public
now complains that the branch of the Bank
of Spain, instead of paying checks in notes
pays them in part in silver. which very
much Wearies the holders" There is a sur
plus of silver. especially five-peseta pieces
C95 cents), and it is evidently believed that
the bank will eventually resume payments
upon the gold basis at some higher rate
than the bullion value of silver. The Mad
rid mint has coined 156.G0O,00O pesetas in
five-peseta pieces since July last, and the
Bank of Spain has witnessed an increase of
its silver holdings from l95, 000 600 pesetas
on December 1. 1885, to 292, 1000, 900 pesetas
at the close of March. The result seems to
have been similar TO the operation of the
Sherman law in the United States in MAX
ing silver redundant and undesirable cur
rency.