Such a tariff contrasts strangely with that of this country, in which 10 per cent is the basis of duty adopted for importations of foreign manufactures, and 5 per cent for foreign raw products.

Can we wonder that, with such a tariff, legitimate imports are of so small account, and that the smuggler intervenes to redress the enormously disproportionate balance, and administer to the wants of the community? Can we wonder that the powers of native production should be so bound down, and territorial revenue so comparatively diminutive, when exchanges are so hampered by fiscal and protective rapacity? Canga Arguelles, the first Spanish financier and statistician of his day, calculated the territorial revenue of Spain at 8,572,220,592 reals, say, in sterling, L.85,722,200; whilst he asserts, with better cultivation, population the same, the soil is capable of returning ten times the value. As a considerable proportion of the revenue of Spain is derived from the taxation of land, the prejudice resulting to the treasury is alone a subject of most important consideration. For the proprietary, and, in the national point of view, as affecting the well-being of the masses, it is of far deeper import still. And what is the financial condition of Spain, that her vast resources should be apparently so idle, sported with, or cramped? Take the estimates, the budget, presented by the minister De ca Hacienda, for the past year of 1842:—

Revenue 1842,879,193,400reals
Id. expenditure,1,541,639,800id.
——————
Deficit on the year,662,446,400

Thus, with a revenue of L.8,791,934, an expenditure of L.15,416,398, and a deficit of L.6,624,460, the debt of Spain, foreign and domestic, is almost an unfathomable mystery as to its real amount. Even at this present moment, it cannot be said to be determined; for that amount varies with every successive minister who ventures to approach the question. Multifarious have been the attempts to arrive at a clear liquidation—that is, classification and ascertainment of claims; but hitherto with no better success than to find the sum swelling under the labour, notwithstanding national and church properties confiscated, appropriated, and exchanged away against titulos of debt by millions. It is variously estimated at from 120 to 200 millions sterling, but say 150 millions, under the different heads of debt active, passive, and deferred; debt bearing interest, debt without interest, and debt exchangeable in part—that is, payable in certain fixed proportions, for the purchase of national and church properties. For a partial approximation to relative quantities, we must refer the reader, for want of better authority, to Fenn's "Compendium of the English and Foreign Funds"—a work containing much valuable information, although not altogether drawn from the best sources.

In the revenues of Spain, the customs enter for about 70,000,000 of reals, say L.700,000 only, including duties on exports as well as imports. Now, assuming the contraband imports to amount only to the value of L.6,000,000, a moderate estimate, seeing that some writers, Mr Henderson among the number, rashly calculate the contraband imports alone at eight, and even as high as ten, millions sterling, it should follow that, at an average rate of duty of twenty per cent, the customs should yield additionally L.1,200,000, or nearly double the amount now received under that head. As, through the cessation of the civil war, a considerable portion of the war expenditure will be, and is being reduced, the additional L.1,200,000 gained, by an equitable adjustment of the tariff, on imports alone, perhaps we should be justified in saying one million and a half, or not far short of two millions sterling, import and export duties combined, would go far to remedy the desperation of Spanish financial embarrassments—the perfect solution and clearance of which, however, must be, under the most favourable circumstances, an affair of many years. It is not readily or speedily that the prodigalities of Toreno, or the unscrupulous, but more patriotic financial impostures of Mendizabal, can be retrieved, and the national faith redeemed. The case is, to appearance, one past relief; but, with honest and incorruptible ministers of finance like Ramon Calatrava, hope still lingers in the long perspective. With an enlightened commercial policy on the one hand, with the retrenchment of a war expenditure on the other, the balance between receipts and expenditure may come to be struck, an excess of revenue perhaps created; whilst the sales of national domains against titulos of debt, if managed with integrity, should make way towards its gradual diminution.

As there is much misapprehension, and many exaggerations, afloat respecting the special participation of Great Britain in the contraband trade of Spain, its extraordinary amount, and the interest assumed therefrom which would result exclusively from, and therefore induces the urgency for, an equitable reform of the tariff of Spain, we shall briefly take occasion to show the real extent of the British share in that illicit trade, so far as under the principal heads charged; and having exhibited that part of the case in its true, or approximately true, light, we shall also prove that it is, as it should be, the primary interest of this country to regain its due proportion in the regular trade with Spain, and which can only be regained by legitimate intercourse, founded on a reciprocal, and therefore identical, combination of interests. In this strife of facts we shall have to contend against Señor Marliani, and others of the best and most steadfast advocates of a more enlightened policy, of sympathies entirely and patriotically favourable towards a policy which shall cement and interweave indissolubly the material interests and prosperity of Spain and Great Britain—of two realms which possess each those products and peculiar advantages in which the other is wanting, and therefore stand seized of the special elements required for the successful progress of each other. Our contest will, however, be one of friendly character, our differences will be of facts, but not of principles. But we hold it to be of importance to re-establish facts, as far as possible, in all their correctness; or rather, to reclaim them from the domain of vague conjecture and speculation in which they have been involved and lost sight of. The task will not be without its difficulties; for the position and precise data are wanting on which to found, with even a reasonable approximation to mathematical accuracy, a comprehensive estimate, to resolve into shape the various and complex elements of Spanish industry and commerce, legitimate and contraband. Statistical science—for which Spain achieved an honourable renown in the last century, and may cite with pride her Varela, Musquiz, Gabarrus, Ulloa, Jovellanos, &c., was little cultivated or encouraged in that decay of the Spanish monarchy which commenced with the reign of the idiotic Carlos IV., and his venal minister Godoy, and in the wars and revolutions which followed the accession, and ended not with the death of Fernando his son, the late monarch—was almost lost sight of; though Canga Arguelles, lately deceased only, might compete with the most erudite economist, here or elsewhere, of his day. Therefore it is, that few are the statistical documents or returns existing in Spain which throw any clear light upon the progress of industry, or the extent and details of her foreign commerce. Latterly, indeed, the Government has manifested a commendable solicitude to repair this unfortunate defect of administrative detail, and has commenced with the periodical collection and verification of returns and information from the various ports, which may serve as the basis—and indispensable for that end they must be—on which to reform the errors of the present, or raise the superstructure of a new, fiscal and commercial system. Notwithstanding, however, the difficulties we are thus exposed to from the lack or incompleteness of official data on the side of Spain, we hope to present a body of useful information illustrative of her commerce, industry, and policy; in especial, we hope to dispel certain grave misconceptions, to redress signal exaggeration about the extent of the contraband trade, rankly as it flourishes, carried on along the coasts, and more largely still, perhaps, by the land frontiers of that country, at least so far as British participation. Various have been the attempts to establish correct conclusions, to arrive at some fixed notions of the precise quantities of that illicit traffic; but hitherto the results generally have been far from successful, except in one instance. In a series of articles on the commerce of Spain, published under the head of "Money Market and City Intelligence," in the months of December and January last, the Morning Herald was the first to observe and to apply the data in existence by which such an enquiry could be carried out, and which we purpose here to follow out on a larger scale, and with materials probably more abundant and of more recent date.

The whole subject of Spanish commerce is one of peculiar interest, and, through the more rigorous regulations recently adopted against smuggling, is at this moment exciting marked attention in France, which, it will be found with some surprise, is far the largest smuggler of prohibited commodities into Spain, although the smallest consumer of Spanish products in return. It is in no trifling degree owing to the jealous and exclusive views which unhappily prevail with our nearest neighbour across the Channel, that the prohibitory tariff, scarcely more adverse to commercial intercourse than that of France after all, which robs the revenue of Spain, whilst it covers the country with hosts of smugglers, has not sooner been revised and reformed. France is not willing to enter into a confederacy of interests with Spain herself, nor to permit other nations, on any fair equality of conditions, and with the abandonment of those unjust pretensions to special privileges in her own behalf, which, still tenaciously clinging to Bourbonic traditions of by-gone times, would affect to annihilate the Pyrenees, and regard Spain as a dependent possession, reserved for the exclusive profit and the commercial and political aggrandisement of France. That these exaggerated pretensions are still entertained as an article of national faith, from the sovereign on his throne to the meanest of his subjects, we have before us, at this moment of writing, conclusive evidence in the report of M. Chégaray, read in the Chamber of Deputies on the 11th of April last, (vide Moniteur of the 12th,) drawn up by a commission, to whom was referred the consideration of the actual commercial relations of France with Spain—provoked by various petitions of the merchants of Bayonne, and other places, complaining of the prejudice resulting to their commerce and shipping from certain alterations in the Spanish customs' laws, decreed by the Regent in 1841. We may have occasion hereafter to make further reference to this report.

The population of Spain may be rated in round numbers at thirteen millions and a half, whilst that of the United Kingdom may be taken at about double the number. With a wise policy, therefore, the interchange should be of an active and most extensive nature betwixt two countries, reckoning together more than forty millions of inhabitants, one of which, with a superficial breadth of territory out of all proportion with a comparatively thinly-scattered community, abounding with raw products and natural riches of almost spontaneous growth; whilst the other, as densely peopled, on the contrary, in comparison with its territorial limits, is stored with all the elements, and surpasses in all the arts and productions of manufacturing industry. Unlike France, Great Britain does not rival Spain in wines, oils, fruits, and other indigenous products of southern skies, and therefore is the more free to act upon the equitable principle of fair exchange in values for values. Great Britain has a market among twenty-seven millions of an active and intelligent people, abounding in wealth and advanced in the tastes of luxurious living, to offer against one presenting little more than half the range of possible customers. She has more; she has the markets of the millions of her West Indies and Americas—of the tens of millions of British India, amongst whom a desire for the various fruits and delicious wines of Spain might gradually become diffused for a thousand of varieties of wines which, through the pressure of restrictive duties, are little if at all known to European consumption beyond the boundaries of Spain herself. With such vast fields of commercial intercourse open on the one side and the other, with the bands of mutual material interests combining so happily to bind two nations together which can have no political causes of distrust and estrangement, it is really marvellous that the direct relations should be of so small account, and so hampered by jealous adherence to the strict letter of an absurd legislation, as in consequence to be diverted from their natural course into other and objectionable channels—as the waters of the river artificially dammed up will overflow its banks, and, regaining their level, speed on by other pathways to the ocean. We shall briefly exemplify the force of these truths by the citation of official figures representing the actual state of the trade between Spain and the United Kingdom antecedent to and concluding with the year 1840, which is the last year for which in detail the returns have yet issued from the Board of Trade. That term, however, would otherwise be preferentially selected, because affording facilities for comparison with similar but partial returns only of foreign commerce made up in Spain to the same period, little known in this country, and with the French customhouse returns of the trade of France with Spain. It must be premised that the tables of the Board of Trade in respect of import trade, as well as of foreign and colonial re-exports, state quantities only, but not values; nor do they present any criteria by which values approximately might be determined. Where, therefore, such values are attempted to be arrived at, it will be understood that the calculations are our own, and pretend no more—for no more could be achieved—than a rough estimate of probable approximation.

Total declared value of British and Irish produce and manufactures exported to Spain and the Balearic Isles in—

1840, amounted to L.404,252
1835,...405,065
1831,...597,848