Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-09
SPAIN TO RESTORE NAVY
SOME STRIKING STATISTICS ON
CONDITIONS SINCE THE WAR.
Special Cablegram to The Star.


LONDON, September 9.-The desire and
assumed intention of Spain to restore the
navy which she lost in her tragic encoun-
ter with America is of considerable inter-
est, as contracts for Spanish warships are
to be placed in this country. In the cir
cumstances. and more especially when the
critical condition of affairs in Morocco IS
borne in mind, it is of interest to see how
the finances of the country now stand. The
present minister of finance, Senior Osma,
seems bent upon following tie prudent
policy of his prede cessors, the objects of
which have been retrenchment and reor-
ganiZation. Since then taxation has been
reorganized in order to meet the additional
burdens of debt thrown upon the country.
Senior Villaverde cut down naval and
military expenditures, which he increased
the expenditure for public works, education
and other utilities which had previously
been neglected. This policy showed at the
end of the fiscal year in 1906 total excess
revenue over eight years of about $780,
100000, which was applied to the liquida-
ton of debt. Senior Osma, in his recent
budget, mot yet voted in the house of
deputies), estimates for a revenue of 5000
935,095 and an expenditure of $500, 221.610.
which last marks an increase of 81 ,436, SO
on last year.
The expenditure on administration and
the army has been cut down, but there is
an increase of $2G00,O GOO in the naval es-
Inmates, which Is not surprising in view
of a revival of the naval policy of Spain,
although it is not In accordance with the
financial policy inaugurated by the late
Senior Villaverde. On the ether hand. re-
auctions are estimated under public works
and administration and also in the service
of the debt The budget estimates are not
necessarily the actual expenditure of the
fiscal year, because the cortes pass supple
mentary votes without much difficulty;
but such as they are, we must take the
estimates as indicating the situation. The
revenue is to be obtained in these proper
tions-$S9, 246,010 from direct taxation,
ST. 10000 from indirect taxation, $780,
state, SOL, 400 from the sale of concessions
and 500 165 from treasury resources. Last
year the revenue from all these sources
was S21s,S65, 220, but a falling off has to be
reckoned with this year in all the sections
except the treasury resources.
1t is estimated, for instance, that there
will be a decrease of S0,040.C0O in the i'm
port duties because of the decline in the
imports of breadstuffs and one of So 100000
in excise in consequence of the suppression
of taxes on wines of 16 degrees in the
large towns, in the land tax, the death du-
ties and the state lottery. The govern
ment is proposing to the cOrtes new set
of taxes, which will fall mainly on the
richer classes, as they include imposts on
carriages C ubS, gas electricity. high-grade
wines and liquors, and on Cedulas Against
these new taxes it is proposed to abol-
ish everywhere, and not in the large towns
only, the excise duty on all wines below
16 degrees alcoholic strength
1t is supposed that the government intends
gradually to suppress entirely the octroi
duties in Spain, but the time for this step
is not yet Senior Osma, however, proposes
a modification of the duties alcoholic
liquors in order to benefit the wine growers
and trade. But, unfortunately, he also pro-
poses to make up the gaps and improve
the revenue by duties on ores and sugar,
and also by increasing the income tax
charge on joint stock companies But
whatever items in the budget may invite
adverse criticism, there Is room for
doubt that the financial position of Spain
has vastly improved since the war.