The Spanish Minister of Finance on Saturday introduced the long-expected
Budget. He accepts the Cuban and Philip- pine Debt, thus raising the total National Debt to three hundred and eighty millions sterling, but reduces the interest on the Cuban Debt by 40 per ceni-., and on the Philippine Debt by 35. Even then the permanent deficit will be some eight millions a year, and this he proposes to meet by a reduction of 20 per cent, in the interest on national bonds held in Spain, which, however, will not be applied to the foreign Debt unless the representatives of the bondholders consent. As the French financiers, who are the largest holders, have already insisted on exemption, this consent will hardly be obtained. The remaining money the Minister proposes to raise by an Income-tax of 5 per cent. on personalty, by a tax on salt mines, by a Succession-duty, and by surtaxes upon imposts already in force. The Budget is considered bold
and not unsatisfactory on the whole, though there will be fierce opposition to the Income-tax ; but the Minister is con- sidered far too sanguine. He probably is so, Spanish revenues seldom reaching the estimated yield; but the deficiency may not be so considerable as is feared. The colonies were bleeding Spain to death, and now she is rid of them prosperity may revive. It is certain that the spirits of business men have risen, and that enterprise, which had been crushed by uncer- tainty, is again becoming visible. The mere cessation of the frightful drain on the labour-supply of the kingdom will be speedily felt by the Treasury.
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