Year: 1872

The Finances OF Spain--Thc Proposed


New Bank-Cuba and Its Embar-


rassments. 't


The news from Spain relative to the pro-
posed new mortgage bank and the introduce
ton of the slavery question in the Cortes,
which we published on Wednesday, together
with the recent news from Cuba and the late
proclamation of General Ceballos, show that
the Spanish government is in an embar-
RAISING situation both at home and with
regard to Cuba, and that the Cuban question
is eliminating These occurrences indicate,
in fact, that solution Of the prolonged
troubles in Cuba and the future destiny of
that gem Of the Antilles must soon be
reached And, if we mistake not that is the
impression of the President Of the United
States and that some action will be taken by
the government of this Republic to bring
about such o solution.


The great cost of the war in Cuba to Spain
has, no doubt, had much to do with the
financial embarrassments % the Spanish gov
ernment, which have ledto the proposition of a
new mortgage bank for the relief Of the
Treasury. The details of this measure, as
well as the motive for it, without, how
ever, mentioning Cuba, which we regard as
The principal cause of the action of the
Spanish Government, were laid before our
readers in Wednesdays HERALD. 1t is only
necessary to mention here that the measure is
an extraordinary one, and has some features
that y surprise fnanciers. No national
bank, we believe, ever had such extensive
powers as those proposed to be conferred on
this Banco Hipotecario de Espand, or Banco
Oredito Territorial Power is to be given over
the territorial property, revenues, and cor
porate institutions of Spain, and to put all the
material and financial interests of the king
dom under that institution. As far as the capital
goes the establishment is to commence upon q
moderate basis, but the principle involved is
capable of an expansion that must place oil
the property and commercial interests of the
country under the control of the bank and
the government. It is intended, no doubt to
be political machine, as well as to afford i'm
mediate relief to the Spanish Treasury.


However plausible this scheme may appear,
or whatever temporary relief it may
afford the Spanish Treasury, it cannot
relieve Spain of the burden of the
troubles in Cuba. The Bank of Havana
and the colonial government Of Cuba are
being plunged into the greatest difficulties
more and more as the civil war in the island
continues. The late proclamation of General
Ceballos shows the apprehension he has from
s'the determined enemies of Spain that is,
from the Cuban patriots-of the destruction of
the material resources of the island, of these
very resources which have enabled the Span
iards to continue the war against the Cubans
The Cubans, knowing that Spain has depended
upon the productions Of the island, and prin-
cipally upon the sugar production, have
resolved to carry out more fully their pro-
gramme of destroying the plantations. Ac-
cording to our latest news from Cuba this
plan of military strategy is being carried out
by the patriots. Though they may be few in
numbers, comparatively, and lacking resources
to meet the Spaniards in pitched battles the
Cubans may strike an effective blow at Spanish
power in this way. To still more dcplete the
embarrassed Spanish and colonial treasures
by cutting off their resources in such o manner
appears to be the object and hope of the
patriots. Looking at all the circumstances
we have referred to there is reason to believe
this Cuban policy may prove disastrous to the
Spaniards.


But there is another and an important oues-