Its possession gives us a place of rendezvous and of observation for our fleets; so that in time of war, with ordinary vigilance, no hostile vessels can enter or leave the Mediterranean without our knowledge. That of itself is an important consideration. We are also enabled to maintain within the fortress reserves of naval munitions, food, coals, and stores, available for our vessels of war, either in the Mediterranean or coming from the Atlantic. Its value, however, is not limited to a period of war. Gibraltar has been for many a year to a certain extent a centre of trade, not only with the neighbouring towns of Spain, but also with the ports along the coast of Morocco. And since the opening of the Suez Canal its mercantile interests have greatly increased, the number of trading and passenger vessels of all nations calling in daily for provisions and coals and other requisites being much larger than of yore, as will be seen by the following table, giving the number and tonnage of vessels calling at Gibraltar during 1868 and 1893 respectively:—
| Year | Number of vessels calling | Total tonnage |
| 1868 | 4,471 | 1,519,046 |
| 1893 | 5,172 | 4,637,454 |
As a proof of its commercial activity I may point out that Linea, which five and twenty years ago was a mere Spanish village at the other end of the neutral ground, is now a town of twelve thousand people, large numbers of whom visit Gibraltar daily, bringing in supplies of food, forage, vegetables, and fruit, &c., and leaving again at night with English goods. In fact, it has become a suburb, as it were, of the city. The trading facilities of Gibraltar are beneficial to the country round, and are fully appreciated by the inhabitants of that part of Andalusia. Taking all these matters into consideration, it will, I think, be apparent that the value of the city and fortress to this country are greater now even than in former days.
It is no doubt quite natural that the Government and people of Spain should feel regret at the permanent occupation of Gibraltar by a foreign power; and it has been suggested that we should accept in exchange the town and fortress of Ceuta, which holds a somewhat analogous position on the other side of the Straits and which belongs to Spain, and thus remove any cause for unfriendly feeling on their part. The question, however, is not so simple as at first sight it would appear. Assuming for the moment that the strategical value of Ceuta as a naval station equals that of Gibraltar, on which I offer no decided opinion, it is by no means certain that the proposal if made by us would be accepted. The Spanish Government are very tenacious of their possessions on the coast of Morocco, as giving them great influence in that country. Their apparent desire is to hold a powerful, if not a predominating, influence on both sides of the straits; and, although they would no doubt gladly obtain possession of Gibraltar, it does not therefore follow that they would give up possession of one of their most valuable positions on the opposite coast in exchange. Other Mediterranean powers also are carefully watching events in Morocco, and it is very possible they might not acquiesce in our occupation of Ceuta. These are diplomatic rather than military questions, and I only allude to them as proofs that the subject is rather involved and goes beyond a mere exchange of territory. So far as Morocco is concerned, its present condition is deplorable. It is a country situated only a few miles from Europe, with an excellent climate and great agricultural and mineral resources; inhabited, moreover, by a fine, brave race of people, and yet, notwithstanding these advantages, owing partly to the jealousies of its neighbours, its resources remain undeveloped, whilst its government is weak and cruel to a degree.
In considering the two-fold aspect of Gibraltar as a fortress and a commercial city combined, it is sometimes argued that its dual interests are antagonistic, and that the presence of a large civil population would add to the difficulties of its defence. To a certain extent no doubt the position is anomalous, as in other fortified cities. Should hostilities occur, and should the fortress be seriously threatened, its trade would certainly suffer and a considerable proportion of the inhabitants would probably seek temporary refuge elsewhere. Still we must bear in mind that war is the exception; and as not a shot has been fired at Gibraltar for upwards of a century, it would appear senseless to paralyse its commercial advantages in time of peace in anticipation of what an enemy might attempt to accomplish in war. In short, the remedy would be far worse than the disease.
The shipping trade of Gibraltar in the present day is subject to one disadvantage, from the absence of any wharves for coaling the numerous steam vessels which call daily throughout the year. In order to remedy this deficiency, the coal reserves of the mercantile marine are stored in large old wooden hulks, about thirty-five in number, which are moored in échelon down the bay, inconveniently crowding the anchorage. The arrangement is not only costly in the purchase and maintenance of the hulks, but in time of war they would be liable to be sunk either by ramming or by torpedoes. The difficulty, however, could be met by an extension of the new mole pier, and by the construction of a wharf from the Ragged Staff bastion; which would not only enclose a considerable area of deep water and give facilities for coaling vessels, both of war and of commerce, but would also enable a large reserve of coals to be maintained on shore, under protection of the guns of the fortress. The enclosed area would also be an appropriate site for the proposed dock.
One of the first subjects brought to my consideration on arrival as Governor, was that of coaling merchant vessels at night. Ever since the days of the great siege it had been the custom to close and lock up all the gates of the city at sunset, and to prevent any communication with the outer world until the following morning; just as if an enemy at the gate outside were waiting to rush in and take possession. One consequence of this extreme vigilance was that all vessels arriving after dark had to remain at anchor for many hours before their wants could be supplied. A deputation of merchants represented to me that great advantage would arise if the detention could be avoided. Their request seemed reasonable enough, and as on inquiry it appeared that their wishes could be met by permitting a few coal-heavers to leave the city at night, orders were given accordingly; and the result not only obviated the inconvenience, but led to an increase in the vessels visiting the port, thus adding considerably to the harbour dues.
The old records of Gibraltar[128] during the eighteenth century contain some interesting and amusing regulations concerning matters both of civil administration and army discipline, and I will quote a few examples.
'Any donkeys loose in the town are to be the property of the person taking them away, and any straying on the ramparts are to be shot by the sentries.