Various
Blackwood's Edinburgh Magazine — Volume 53, No. 331, May, 1843
It is therefore Great Britain, and not Spain, which is entitled to demand that this adverse balance be redressed, and which would stand justified in retaliating the restrictions and prohibitions on Spanish products, with which, so unjustly, Spain now visits those of Great Britain. Far from us be the advocacy of a policy so harsh—we will add, so unwise; but at least let our disinterested friendship and moderation be appreciated, and provoke, in reason meet, their appropriate consideration.
The more formidable, because far more extensive and facile abuses, arising out of the unparalleled contraband traffic of which Spain is, and long has been, the theatre, and the attempted repression of which requires the constant employment of entire armies of regular troops, are elsewhere to be found in action and guarded against; they concern a neighbour nearer than Great Britain. According to an official report made to his Government by Don Mateo Durou, the active and intelligent consul for Spain at Bordeaux, and the materials for which were extracted from the customhouse returns of France, the trade betwixt France and Spain is thus stated, but necessarily abridged:—
France, therefore, exported nearly two and a half times as much as she imported from Spain; a result greatly the reverse of that established in the trade of Spain with Great Britain. In these exports from France, cotton manufactures figure for a total of
Among these imports from France, various other prohibited articles are enumerated besides cottons. As here exhibited, the illicit introduction of cotton goods from France into Spain is almost double in amount that of British cottons. The fact may be accounted for from the closer proximity of France, the superior facilities and economy of land transit, the establishment of stores of goods in Bayonne, Bordeaux, &c., from which the Spanish dealers may be supplied in any quantity and assortment to order, however small; whilst from Great Britain heavy cargoes only can be dispatched, and from Gibraltar quantities in bulk could alone repay the greater risk of the smuggler by sea.
Señor Durou adds the following brief reflections upon this exposé of the French contraband trade. "Let the manufactures of Catalonia be protected; but there is no need to make all Spain tributary to one province, when it cannot satisfy the necessities of the others, neither in the quantity, the quality, nor the cost of its fabrics. What would result from a protecting duty? Why, that contraband trade would be stopped, and the premiums paid by the assurance companies established in Bayonne, Oleron, and Perpignan, would enter into the Exchequer of the State."
The active measures decreed by the Spanish Government in July and October 1841, supported by cordons of troops at the foot of the Pyrenees, have, indeed, very materially interfered with and checked the progress of this contraband trade. In consequence of ancient compact, the Basque, that is frontier provinces of Spain, enjoyed, among other exclusive privileges, that of being exempt from Government customhouses, or customs' regulations. For this privilege, a certain inconsiderable subsidy was periodically voted for the service of the State. Regent Espartero resolutely suspended first, and then abrogated, this branch of the fueros. He carried the line of the customhouses from the Ebro, where they were comparatively useless and scarcely possible to guard, to the very foot and passes of the Pyrenees. The advantageous effect of these vigorous proceedings was not long to wait for, and it may be found developed in the Report to the Chamber of Deputies in Paris, before referred to; in which M. Chégaray, the rapporteur on the part of the complaining petitioners of Bayonne, Bordeaux, &c., after stating that the general exports of France to Spain in
proceeds to say, that the general returns for 1842 were not yet (April 11) made up, but that "M. le directeur-général des douanes nous a declaré que la diminution avait été enorme." But although the general returns could not be given, those specially referring to the single customhouse of Bayonne had been obtained, and they amply confirmed the assertion of the enormous diminution. The export of cottons, woollens, silks, and linens, from that port to Spain, which in
A fall, really tremendous, of nearly two-thirds.
M. Chégaray, unfortunately, can find no other grievance to complain of but the too strict enforcement of the Spanish custom laws, by which French and Spanish contrabandists are harassed and damaged—can suggest no other remedy than the renewal of the "family compact" of the Bourbons—no hopes for the revival of smuggling prosperity from the perpetuation of the French reciprocity system of trade all on one side, but in the restoration of the commercial privileges so long enjoyed exclusively by French subjects and shipping, but now broken or breaking down under the hammering blows of Espartero—nor discover any prospect of relief until the Spanish customhouse lines are transferred to their old quarters on the other side of the Ebro, and the fueros of the Biscaiano provinces, which, by ancient treaty, he claims to be under the guarantee of France, re-established in all their pristine plenitude.
It is surely time for the intelligence, if not the good sense, of France to do justice by these day-dreams. The tutelage of Spain has escaped from the Bourbons of Paris, and the ward of full majority will not be allowed, cannot be, if willing, to return or remain under the trammels of an interested guardian, with family pretensions to the property in default of heirs direct. France, above all countries, has the least right to remonstrate against the reign of prohibitions and restrictions, being herself the classic land of both. Let her commence rather the work of reform at home, and render tardy justice to Spain, which she has drained so long, and redress to Great Britain, against whose more friendly commercial code she is constantly warring by differential preferences of duties in favour of the same commodities produced in other countries, which consume less of what she abounds in, and have less the means of consumption. Beyond all, let her cordially join this country in urging upon the Spanish Government, known to be nowise averse to the urgency of a wise revision and an enlightened modification of the obsolete principles of an absurd and impracticable policy both fiscal and commercial—a policy which beggars the treasury, whilst utterly failing to protect native industry, and demoralizes at the same time that it impoverishes the people. We are not of the number of those who would abandon the assertion of a principle quoad another country, the wisdom and expediency of which we have advocated, and are still prepared to advocate, in its regulated application to our own, from the sordid motive of benefiting British manufactures to the ruin of those of Spain. Rather, we say to the government of Spain, let a fair protection be the rule, restrictions the exceptions, prohibition the obsolete outcast, of your fiscal and commercial policy. We import into this country, the chief and most valuable products of Spain, those which compose the elements and a very considerable proportion of her wealth and industry, are either untaxed, or taxed little more than nominally. We may still afford, with proper encouragement and return in kind, to abate duties on such Spanish products as are taxed chiefly because coming into competition with those of our own colonial possessions, and on those highly taxed as luxuries, for revenue; and this we can do, and are prepared to do, although Spain is so enormously indebted to us already on the balance of commercial exchanges.
This revision of her fiscal system, and reconstruction, on fair and reciprocal conditions, of her commercial code, are questions of far deeper import—and they are of vital import—to Spain than to this empire. Look at the following statement of her gigantic debt, upon which, beyond some three or four hundred thousand pounds annually, for the present, on the capitalized coupons of over-due interest accruing on the conversion and consolidation operation of 1834, the Toreno abomination, not one sueldo of interest is now paying, has been paid for years, or can be paid for years to come, and then only as industry furnishes the means by extended trade, and more abundant customhouse revenues, resulting from an improved tariff.
The latest account of Spanish finance, that for 1842 before referred to, exhibits an almost equally hopeless prospect of annual deficit, as between revenue and expenditure; 1st, the actual receipts of revenue being stated at
Assuming the amount of the contraband traffic in Spain at six millions sterling per annum, instead of the ten millions estimated, we think most erroneously, by Señor Marliani, the result of an average duty on the amount of 25 per cent, would produce to the treasury L.1,500,000 per annum; and more in proportion as the traffic, when legitimated, should naturally extend, as the trade would be sure to extend, between two countries like Great Britain and Spain, alone capable of exchanging millions with each other for every million now operated. The L.1,500,000 thus gained would almost suffice to meet the annual interest on the L.34,000,000 loan conversion of 1834, still singularly classed in stock exchange parlance as "active stock." As for the remaining mass of domestic and foreign debt, there can be no hope for its gradual extinction but by the sale of national domains, in payment for which the titles of debt of all classes may be, as some now are, receivable in payment. As upwards of two thousand millions of reals of debt are said to be thus already extinguished, and the national domains yet remaining for disposal are valued at nearly the same sum, say L.20,000,000, it is clear that the final extinction of the debt is a hopeless prospect, although a very large reduction might be accomplished by that enhanced value of these domains which can only flow from increase of population and the rapid progression of industrial prosperity.
All Spain, excepting the confining provinces in the side of France, and especially the provinces where are the great commercial ports, such as Cadiz, Malaga,25 Corunna, &c., have laid before the Cortes and Government the most energetic memorials and remonstrances against the prohibition system of tariffs in force, and ask why they, who, in favour of their own industry and products, never asked for prohibitions, are to be sacrificed to Catalonia and Biscay? The Spanish Government and the most distinguished public men are well known to be favourable, to be anxiously meditating, an enlightened change of system, and negotiations are progressing prosperously, or would progress, but for France. When will France learn to imitate the generous policy which announced to her on the conclusion of peace with China—We have stipulated no conditions for ourselves from which we desire to exclude you or other nations?
We could have desired, for the pleasure and profit of the public, to extend our notice of, and extracts from, the excellent work of Señor Marliani, so often referred to, but our limits forbid. To show, however, the state and progress of the cotton manufacture in Catalonia, how little it gains by prohibitions, and how much it is prejudiced by the contraband trade, we beg attention to the following extract:—
"Since the year 1769, when the cotton manufacture commenced in Catalonia, the trade enjoyed a complete monopoly, not only in Spain, but also in her colonies. To this protection were added the fostering and united efforts of private individuals. In 1780, a society for the encouragement of the cotton manufacture was established in Barcelona. Well, what has been the result? Let us take the unerring test of figures for our guide. Let us take the medium importation of raw cotton from 1834 to 1840 inclusive, (although the latter year presents an inadmissible augmentation,) and we shall have an average amount of 9,909,261 lbs. of raw cotton. This quantity is little more than half that imported by the English in the year 1784. The sixteen millions of pounds imported that year by the English are less than the third part imported by the same nation in 1790, which amounted in all to thirty-one millions; it is only the sixth part of that imported in 1800, when it rose to 56,010,732 lbs.; it is less than the seventh part of the British importations in 1810, which amounted to seventy-two millions of pounds; it is less than the fifteenth part of the cotton imported into the same country in 1820, when the sum amounted to 150,672,655 pounds; it is the twenty-sixth part of the British importation in 1830, which was that year 263,961,452 lbs.; and lastly, the present annual importation into Catalonia is about the sixty-sixth part of that into Great Britain for the year 1840, when the latter amounted to 592,965,504 lbs. of raw cotton. Though the comparative difference of progress is not so great with France, still it shows the slow progress of the Catalonian manufactures in a striking degree. The quantity now imported of raw cotton into Spain is about the half of that imported into France from 1803 to 1807; a fourth part compared with French importations of that material from 1807 to 1820; seventh-and-a-half with respect to those of 1830; and a twenty-seventh part of the quantity introduced into France in 1840."
And we conclude with the following example, one among several which Señor Marliani gives, of the daring and open manner in which the operations of the contrabandistas are conducted, and of the scandalous participation of authorities and people—incontestable evidences of a wide-spread depravation of moral sentiments.
"Don Juan Prim, inspector of preventive service, gave information to the Government and revenue board in Madrid, on the 22d of November 1841, that having attempted to make a seizure of contraband goods in the town of Estepona, in the province of Malaga, where he was aware a large quantity of smuggled goods existed, he entered the town with a force of carabineers and troops of the line. On entering, he ordered the suspected depôt of goods to be surrounded, and gave notice to the second alcalde of the town to attend to assist him in the search. In some time the second alcalde presented himself, and at the instance of M. Prim dispersed some groups of the inhabitants who had assumed a hostile attitude. In a few minutes after, and just as some shots were fired, the first alcalde of the town appeared, and stated that the whole population was in a state of complete excitement, and that he could not answer for the consequences; whereupon he resigned his authority. While this was passing, about 200 men, well armed, took up a position upon a neighbouring eminence, and assumed a hostile attitude. At the same time a carabineer, severely wounded from the discharge of a blunderbuss, was brought up, so that there was nothing left for M. Prim but to withdraw his force immediately out of the town, leaving the smugglers and their goods to themselves, since neither the alcaldes nor national guards of the town, though demanded in the name of the law, the regent, and the nation, would aid M. Prim's force against them!"
All that consummate statesmanship can do, will be done, doubtless, by the present Government of Great Britain, to carry out and complete the economical system on which they have so courageously thrown themselves en avant, by the negotiation and completion of commercial treaties on every side, and by the consequent mitigation or extinction of hostile tariffs. Without this indispensable complement of their own tariff reform, and low prices consequent, he must be a bold man who can reflect upon the consequences without dismay. Those consequences can benefit no one class, and must involve in ruin every class in the country, excepting the manufacturing mammons of the Anti-corn-law league, who, Saturn-like, devour their own kindred, and salute every fall of prices as an apology for grinding down wages and raising profits. It may be well, too, for sanguine young statesmen like Mr Gladstone to turn to the DEBT, and cast about how interest is to be forthcoming with falling prices, falling rents, falling profits, (the exception above apart,) excise in a rapid state of decay, and customs' revenue a blank!