In the earlier stages of railway construction and management, French capital and French labour were employed. England held aloof, partly on account of the closing of the London Stock Exchange to Spanish enterprises, in consequence of the vexed question of the celebrated coupons, but also because the aid afforded by the State did not fall in with the ideas of English capitalists. They desired a guaranteed rate of interest, while the Spanish Government would have nothing but a subvention paid down in one lump sum, arguing that it would be impossible to tell when a line was making more than the guaranteed interest, "as the companies would so arrange their accounts as to show invariably an interest smaller than that guaranteed!" With this view of the honesty of their own officials, no one else could be expected to have a better opinion of them; and England allowed France and Belgium thenceforward to find all the capital and all the materials for Spanish railways.

The total amount of subventions actually paid by Government up to December 31, 1882, was £24,529,148. "If," says the author of Commercial and Industrial Spain, "the money that we so candidly lent to the swarm of defaulting South American Republics had been properly invested in Spanish railways, a great deal of trouble might probably have been spared to the unfortunate investors."

All that, however, is altered now: the State schools and universities are turning out daily well-equipped native engineers, both for railway and mining works, and Spaniards are finding their own capital for public works. The phrase "Spain for the Spaniards" is acquiring a new significance—perhaps the most hopeful of all the signs of progress the country is making. In 1899, there were working 12,916 kilómetros of railways, or 7.9 kilómetros for each 10,000 of the population. A kilómetro equals 1.609 English mile. There is no part of the country now isolated, either from the centre of government in Madrid, or from the coast, and communication with Portugal, and, through France, with the rest of Europe, is easy and constant. With this advance in means of transit, the trade of the country has received an immense impulse, and its raw and manufactured goods are now reaching all markets.

The rich mineral wealth of the country and its wonderful climate only need enlightened enterprise to make Spain one of the richest and most important commercial factors in the world's trade. The list of minerals alone, raised from mines in working, amounts to twenty-two, ranging from gold and silver, copper, tin, zinc, quick-silver, salt, coal, etc., to cobalt and antimony; and 8,313,218 tons of minerals of all these twenty-two classes were raised in 1882 against 1,201,054 in 1862. The value of mines in 1880 was represented by one hundred and eleven millions of pesetas (francs), but in 1898 by three hundred and nineteen millions (pesetas). The value of imports in 1882 was 816,666,901 pesetas, and of exports 765,376,087 pesetas. In 1899, imports were 1,045,391,983, and exports 864,367,885. But this is taking exactly the period covered by the war with America; a fairer estimate of exports is that of 1897, which stood at 1,074,883,372. No statement has been published since 1899, but intermediate statistics show the trade of the country to be advancing rapidly.

To return, however, to Spanish industries. In late years large smelting-works have been opened in Spain, with Spanish capital and management, while at Bilbao are large iron-works for the manufacture of steel rails. There are splendid deposits of iron in the country, and as the duty on foreign rails entering Spain is £3 4s. per ton, it is probable that the near future will see the country free from the necessity of importing manufactured iron, or, in fact, metal of any kind. A Catalan company has established important works for reducing the sulphur of the rich mines near Lorca, and confidently expects to produce some thirty thousand tons of sulphur per annum. The rich silver mines of the Sierra Almagrera are almost wholly in native hands, and have already yielded large fortunes to the owners. With the present improved transport and shipping facilities in every part of the country, it is probable that the valuable mines scattered all over the Peninsula will be thoroughly worked, to the advance of commercial and industrial interests over the entire country.

While the seaboard provinces are rich in fisheries, as well as in mines, in the south the country is able to grow rice, sugar-cane, maize, raisins, as well as wheat, olives, oranges, grapes, dates, bananas, pine-apples, and almost all kinds of tropical fruits. The cultivation of all varieties of fruit and vegetables, and their careful gathering and packing have become the object of many large companies and private individuals. Dates, bananas, grapes, plums, tomatoes, melons, as well as asparagus and other early vegetables, are now being shipped to foreign markets as regular articles of trade, in a condition which insures a rapid and increasing sale. The exportation of fruit has doubled within the last few years. The production of cane sugar in 1899 was thirty-one thousand tons, or exactly three times the amount of that produced in 1889. The exportation of wine, which in 1894 was two millions of milelitros, was in 1898 nearly five millions, and it is daily increasing (one gallon English measure equals about four and one half litros).

Spain has always had excellent wines unknown to other countries, besides that which is manufactured into what we know as "sherry"; but many of them were so carelessly made as to be unfit for transit abroad. The attention of wine-growers has, however, been steadily turned to this subject during the last twenty years; greater care has been taken in the production; the best methods have been ascertained and followed, and it is possible now to obtain undoctored Spanish wines which perfectly bear the carriage in cask without injury; and, to meet a direct sale to the customer, small barrels containing about twelve gallons are shipped from Tarragona and other ports to England.

One of the most hopeful signs of the economic awakening of the country is the establishment of the Boletin de la Cámara de Comercio de España en la Gran Bretáña, published each month in London.

In this little commercial circular a review is given of the commerce and industry of all nations during the month; all fluctuations are noted, extracts from foreign statistics or money articles given, suggestions made for the opening up of Spanish commerce, and the introduction of her manufactures into this and other countries. Speaking on the question of the introduction of pure Spanish wines into England, a recent writer in the Boletin remarks that English workmen are thirsty animals, that they like a big drink, but they are not really desirous of becoming intoxicated by it. In fact, they would most of them prefer to be able to drink more without bad effects. The writer goes on to say that if the English workman could obtain pure wine that would cost no more than his customary beer, and would not make him intoxicated, and if Spanish light wines—which he says could be sold in England for less than good beer—were offered in tempting-looking taverns and under pleasant conditions, he believes that a really enormous trade would be the result, to the benefit of both nations. The suggestion is, at least, an interesting one, and though the scheme would certainly not benefit the habitual drunkard, who becomes enamoured of his own debauchery, it might be very welcome to many of the working people, who, as "our neighbour" quaintly remarks, like a big drink, but do not necessarily wish to become intoxicated.

In this connection, it may be interesting to know that the small twelve-gallon casks of red wine, resembling Burgundy rather than claret, but less heavy than the Australian wines, and forming a delicious drink with water, are delivered at one's own door carriage free for a price which works out, including duty, at 8½d. the ordinary bottle, or 1s. 2d. the flagon, such as the Australian wine is sold in. This is, in fact, cheaper than good stout or ale.