The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-08-17
IRE GETTING
KINKS OUT Of /.
Work of the Financiers to
Save Credit of Spain.
HER FOREIGN TRADE
Anxiety for Reciprocal Ar
engagements With Other
Countries.

Countries.
Madrid, Aug. 16.-Eyer since the close OF
the war with the United States Spanish
governments have devoted their atten-
ton to settling their finances. They be-
| gan with the debts-imperial floating debt,
debts contracted az home to meet part OF
the expense OF the colonial wars. floating
debt of the Spanish treasury and then
the colonial consolidated debts and the
liabilities of the colonial treasures. which
were styled war debts" When this task
had been grappled with, during three
years. Madrid governments devoted their
energies to a more vigorous collection OF
the taxes long in existence and TO the col
lection OF the many new taxes created
after the loss of the colonies, when the
Spanish parliament and people CALAMITY
undertook to face the burden not only OF
the war debts, but of the colonial debts
which the United States and the Quondam
colonies declined to bear any part OF.
Thanks to steady rise in the product Of
old and new taxation. Spain has been able
to meet all her engagements IN 1901 and
1902 so far. Her finances are, however.
well-nigh crippled by an unsatisfactory
monetary situation, high rates of foreign
exchange, a very large and insufficiently
guaranteed bank note issue. and by an
unfavorable balance of the payments that
she has to make abroad in gold. Spanish
governments and statesmen have been
endeavoring to reduce the note issue OF
the Bank of Spain and to check the infia-
ton Of foreign exchanges, which is at
tributed by Spanish politicians and by
some of their hnanciers to speculation
and to the influence of certain banks and
financial establishments.
All their efforts up 10 the present have
not produced much effect on the note is
sue of the Bank of Spain. though the
cortes has voted during the last four
years several laws to provide the gov
ernments with the means TO reimburse
the Bank kof Spain. no less than $l40.OO0.-
600 since 1889 In fact, after every REIN
bursement of pagares held by the bank
or of advances made to The treasury. the
note issue slightly decreased during a-few
weeks. and then gradually went up, as
il has done after the last loan Of June 20
1902. to the old figures. 1925. 900. 600. for in
stance. in the last balance sheet OF the
Bank OF Spain.
The finance ministers have more success
In dealing with foreign exchanges. which
were reduced from 1915 to about Sc during
several months by the operation OF the
law which enacted that customs duties
should be paid in gold on a certain num-
Der OF imports. This measure. like sew
eral others which have been NOTED and
which are now being examined BY the
government OF seEor Sagasta, ss a tenn
porary makeshift which does not seem
likely even TO answer the expectations
OF the finance minister regard 20 the
actual amount OF gold that he wanted TO
obtain on this device. He had proPhesied
that the duties payable in gold are likely
to produce the Si2 10000 he wanted 10
cover the interest OF the exterior debt.
held by foreigners, and OF which the
coupons are payable IN gold. and some
other payments which the treasury has
TO make abroad. also in gold. Since the
list OF December the customs duties pay
able in gold only showed the prospect Of
a revenue which viii not exceed $ GO 90.
The present Liberal government rather
Unexpectedly seems disposed 20 look 10
trade with foreign countries as a rene
dy not only for the high rates OF ex-
change. but for the monetary difficult
ties which embarrass the finance minis
ter. The minister OF agriculture has
nooted the idea that Spain ought 20
modify her commercial policy. and 20
reform the tariff which vas established
IN 1897 by Seniors Canovas del Castillo
and Nevsro Revertes. II is an open So
cret that IN the cabinet the ministers |
Tor foreign affairs. for justice. and the /
home secretary. Senior Moet. would glad
~ back the suggestion Of the minister Of
agriculture. Il must not be supposed, !
however. that even a liberal and demo- |
cratic government Ike that Of senor sa- |
gasta. with strong and hitherto docile I
maiorities n both houses. could attempt !
70 reverse the extremely protectsonist /
policy which has prevailed n Spain for a 4
decade, under both liberal and Conser-
vative governments Political and cleo 1
torsi considerations would soon make & /
impossible for the ministers 70 reckon 1
upon 3 decidedly free trade evolution. /
The utmost that they could DO would be i
70 ask the cortes 10 modify the tari1 Gp- i
ties upon what are styled articles q 4
first Necessity" for the working clsszss
especially breadztuss. some foreign mar 4
ufactured goods. and articles generally 4
not manufactured IN Spain. hrs az the 1
same time concessions wouIt have 70 b 4
made in the Industrial interests il the
shape OF lower duttos on -zz materials.
on coke ard coal on chemicals. and o. 4
machinery that Spanish manufacturers
cau not md az hone. TIE Ercates- dif1- 4
Guilty II The way % th< xoyerrrenf -
the fact that the manufacturing interests
- the agricultural interests have CO
aieseet since 5ssa. frst % prepare aae
carry cut the protectlouist pollcT which
was embodied sn ,he tzri1 % ~ ard
e-c-ll % defend that poi!cy decidedly
Afterwards OF TIE rrog1d that i has &C.
sicrec = great spirit q entsrrriss both
II agriculture And 81 industries tazs are
no~ q15te able % c1upete With foreign
products II TIE pent1sais- raz-ksts ard
which thas secure soEze compensation far
~ loss ~ ths coio-izl rzsrxets that
spain ziEoz- r-sozopoilze3 throlKn the
action q the hiSA t.r1-s q Cshz Prrt5
Pies and TIE Philippines formerly
The tzinistsr Tor foreign 41airs. re
Duke q AirotoTAr. rs made sorzs izs-
ooTzznt ieclarsrtoaE co1csFninE The f2rir
AZ TIE sumner capital. san sehsst.zu
zh~.e be = shx cehlue4 ssa-EEssr Il AZ