Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-21

loss of the mineral colonies in America the
government has had a monopoly Of the do
nestle mines and since that time has taxed
them heavily and embarrassed them with
laws and regulations which have discour-
aged development. Nearly every profitable
mine in Spain Is operated by foreigners
One reason for that Is that investors will
not trust their own fellow citizens. This is
said to be due to an epidemic of swindles
which occurred between lS25 and 1910, after
the government monopoly was removed, and
ignorant rash, over-confdent and in many
cases dishonorable men undertook the man
agement of the mining properties. Nearly
every company was failure Declarations
and robberies were numerous. and private
Investors were so badly hurt that no Span
lard has ever since been able to organize a
mining company. Several Of the best prop
critics are still tangled up in law suits dat
ing back fifty and sixty years, and have not
been worked for that reason.
Foreign managers complain or heaVy
taxation, poor labor and the number of
holidays authorized by the church. That IS
said to be one of the curses Of SPAIN II
recreation or religious celebration there
would be less complaint, but as rule the
peasants drink so much that they are
worthless for a day or two afterWard, ana
some of them for a week. Therefore the
foreign manager breads the fiesta. There
are 1913 holidays in Spain, not including sun
days, and most Of them are kept, which, l
am told by men of experience, reduces the
SO per cent, and makes mining Improbable
The same complaint is made In all the
Spanish American countries.
Another complaint is of blackmail from
local officials who receive small salaries and
are compelled to keep up certain appear
ances which they cannot afford to do upon
their legitimate income. This Is another OF
the curses of Spain.
Another great drawback is the lack Of
good roads and machinery. Spain has the
worst roads in Europe, and in some parts
Of the country there are practically no
roads at ALL Wherever mine is situated
at a distance from railway 1t Is pracucahy
worthless until side track is built or
highway for carts, and they must always
be paid for by the individual. 1t Is assert
ed by foreign engineers that several rich
mines might be developed with great pront
If they could be made accessible.
More than 5000 mines are registered at
the government Offices, and all of them
have more or less value, but less than 2OO
in operation of recent years, and only thtr-
ty-nine, so 1 am informed by competent au-
thority, have modern machinery and are
worked by modern methods. These are I'M
der foreign control. The remainder, owned
and operated by Spaniards, still adhere TO
the ancient processes and implements, even
when some of them are rich enough to pay
dividends. There are hundreds of deposits
of copper, iron, zinc, lead, silver, sulphur,
quicksilver, anthony, manganese and
other minerals which might be made to pay
big profits If they could be worked with
modern machinery and methods and had
proper transportation facilities, but their
and the traditional prejudice against for
eigners prevents them from asking outside
assistance.
The Bank Of Spain.
The Bank of Spain, which owns and occu-
pies the handsomest building in Madrid, is
considered by many to be the blood sucker
which saps the vitals of the government. 1t
is private institution, but it's stock is
largely owned by the members of the royal
family. the nobility and the political leaders
of Spain. Indeed. it is understood that one
of the first principles upon which the bank
is managed is to place a few shares in the
hands of every young politician who prom
ises to be active and influential. Much OF
the stock Is held in France and other for
eign countries. The Rothschilds are sup
posed to be among the largest holders, and
Queen Victoria had a number of shares.
Notwithstanding the general distrust Of
Spanish finances, the stock Of the Bank OF
Spain Is considered one Of the best invest
ments in Europe. 1t is managed with great
ability. 1t has monopoly in the kingdom
of Spain and pays from 20 to 40 per cent
dividends. Hence very little of the stock
ever is offered on the market.
The bank has contract with the govern
ment to handle all the public money. 1t is
the public depository of all the revenues,
and official collectors and disbursing officers
to keep their funds at Its branches. which
are established everywhere they are needed.
1t pays the government no interest, but
exercises its right to loan out the govern
ment deposits at its own risk and for its
own profit at any interest that 1T is able to
collect. / is also a disbursing agency and
pays the bills and obligations of the govern
ment. This Is one of the reasons why the
Spanish credit is so bad.
The managers of the bank prefer to re-
tain the public funds and loan them out at
interest to paying government warrants. 1t
has been known to loan the government
large sums OF Its own money, and charge
it a very high rate of interest. When the
expenditures exceed the revenues and the
treasury runs behind, it borrows Of the
Bank of Spain, never Of any other source.
The bank may hold millions of public
money deposited with it by the tax collect
ors, but If warrants have been drawn
against 1t by the treasury 1t is no longer
under the control of the government The
bany may defer paying these warrants at
its own option as long as the holders will
submit, go on drawing interest from the
public funds. and relieve any financial
emergency with them. The government
now owes it many million pesetas.
The Bank Of Spain also has the exclusive
right to issue currency, which Is made of
poor quality of paper and wears out rap
idly. A Spanish bank bill has to be ham
died with great care or it will tear along
the crease where it has been folded. The
profits from the destruction Of currency are
said to be very large. The national banks
of the United States cannot issue notes
even to the amount of their paid-up cap
ital. but the Bank of Spain can issue So
of notes to every dollar of capital.
The bank also makes large profit as
financial agent of the government. 1t ham
dies all of the loans and, of course, charges
a handsome commission. 1t could teach
even Mr.. Morgan lessons in promotion.
For several years the facts have stated
have been the basis of political issue, and
have been one of the most serious causes
of the complaints of the republicans and
the socialists against the government. The
abolition of the bank, or at least it's mo-
nopoly privileges, has been agitated again
and again. but the government is so in
volved that 1t would cause a financial rev.
olution If a divorce were insisted upon.
Complaints Against Attorneys.
Iob D Of tIo