Gibraltar being a free port, there are no customs' dues, except those on wines and spirits. All flags enjoy equal privileges, and in all disputes the English law decides. It is impossible to obtain a satisfactory statement of the amount of imports and exports, as no Custom-house exists, and the official reports merely give the number and nationality of the flags of the ships that arrive and depart. Smuggling is carried on to a great extent, and, being a lucrative trade, will continue to be so, as long as Spain retains her prohibitory duties on English goods.

The principal items of commerce in Gibraltar are English cotton goods, which are exported to Barbary in considerable quantities. To compete successfully with the English in this branch of trade would be very difficult for any other nation; but there are a great number of other articles which might find a ready sale on the African coast, and which are produced cheaper in several States of the European continent than in England; a consideration of so much the more importance in trading with the Moors, that these people regard lowness of price rather than the quality of the goods.

For this very reason, small but industrious Belgium has become a powerful competitor of mighty England. Thus, for instance, that country exports to Morocco, by way of Gibraltar, sugar, both in loaves and crushed,[8] hardware and cutlery, nails and screws, zinc, as well as all sorts of earthenware and glass. A portion of these articles goes into the neighbouring Spanish provinces.

[8] The superior quality and cheapness of Belgian sugars have of late in a great measure driven all others out of the market. It is also worthy of remark, that though Gibraltar is a British colony, all the accounts are kept in Spanish currency, and that there are more Spanish and French coins in circulation than English, which, when changed, even sustain a small loss. The Spanish measures and weights also are more in use than the English.

It is rather singular that the Belgian glass goods are in Gibraltar represented as of German manufacture, and thereby obtain a readier sale. This seems to be a proof that German (i. e. Bohemian) glass articles have been patronized before the Belgian, and lost the market only through the importation of the latter.

The intercourse between Gibraltar and Spain is carried on by coasting vessels, and by French as well as Spanish steamers, while the postal communication with Great Britain is conducted by the Peninsular and Oriental Steam Packet Company.

Correspondence with Spain and other parts of the Continent is carried on overland, but is little to be relied upon, as, owing to the horrible condition of the Spanish roads, a delay of from six to eight days sometimes occurs in bad weather. Between Gibraltar and Cadiz, a distance of only sixty English miles, the letter-bag is said to have often been six days on its way.

The narrative of our stay at Gibraltar would be defective if we omitted mention of the numerous proofs of hospitality we experienced on all sides. Invitations were repeatedly received from the Convent (Government House), as well as from private families, and everywhere we experienced the most cordial reception.

We must in particular mention a visit paid to Captain Warden, the superintendent of the station and arsenal, as it afforded an opportunity of becoming acquainted with a feature in the English naval service, as practical as it is worthy of imitation. The superintendent of the arsenal inhabits a beautiful roomy house, belonging to the Government, situated in a large garden, well planted with splendid plane-trees, laurel, and orange-trees, and ornamented with most beautiful and odoriferous flowers. As a superintendent's income would not admit the outlay necessary properly to furnish so large an edifice, this is done by contractors, who let out the furniture at the rate of five per cent. annually on the value. This sum is deducted monthly from the pay. The same system is also adopted on board English men-of-war. The cabins of the officers are there furnished and provided with all the requisite comforts by contractors under the superintendence of the Admiralty. The value of each article is marked in a printed list deposited with the authorities. The captain pays a yearly rate of five per cent. on the valuation, and binds himself besides, in the event of the ship's being paid off, or of being appointed to another vessel, to return in good condition all the articles specified, and pay the value noted in the list for everything missing. This agreement is registered at the Admiralty, and the contractor receives the amount monthly. The advantage of such an arrangement to the commander of a ship will be more fully appreciated by those who, from personal experience, are aware of the expense attending an outfit, and the great loss which an officer transferred from one ship to another suffers through a sudden and forced sale of his property. The commander of a ship is moreover often not in a condition to spend for his personal outfit a sum of perhaps a thousand pounds sterling, but he can conveniently pay annually from £40 to £50 for the hire in monthly instalments; and it thus becomes easier for him to maintain the appearance due to his position.

The commander and officers of the Caroline, which, after an absence since the 12th of May, had rejoined us on the 23rd, were, like ourselves, received in the kindest manner by all the authorities of Gibraltar.