John J. (John Joseph) Lalor.

Cyclopædia of political science, political economy, and of the political history of the United States online

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such as to allow not even an approximate judg-
ment of the real receipts and disbursements.
There are, indeed, accounts of public revenue and
expenditure published monthly ; but the public



accounts have not been approved by parliament
since 1865-7; and the tribunal de cueniaa has not
audited the accounts later than 1868-9. Accord-
ing to official returns, the following were the esti-
mated revenue and expenditure for the financial
years 1877-83 :














1881 2


— The following are the budget estimates for the
year ending Jime 30, 1883 :



Direct taxes 230,979,000

Indirect taxes 164,409,000

Customs 115,458,000

Stamps and excise 221,585,000

Bevenue from national property 28,860,226

VariooB 21,706,000

Total 782,997,225



Civil list 9,800,000

Cortes 1,859,250

Public debt 223,028,056

Indemnities and pensions 47,750,065

Ministry of president of council 1,101,600

Ministry of foreign affairs 8,580,900

Ministry of justice 51,625,675

Ministry of war 126,272,700

Ministry of marine 36,127,300

Ministry of interior 45,369,000

Ministry of public works 90,117,400

Ministry of finance 20,531,925

State monopolies 124,957,875

Various.... 622,620

Total 782,639,250

— The minister of finance declared, in presenting
the budget for 1871-2, that the state was " on the
verge of bankruptcy," from which it could be
saved only " by the most strenuous exertions, de-
voted both to raise the revenue, by the imposition
of new taxes and otherwise, and to depress the
expenditure to the lowest possible point." The
latter recommendation has in recent years become
difficult of execution, on account of the large ex-
penditure connected with the civil war. In the
budget for 1870-71 the cost of the war department
was estimated at £4,730,831, while it was set down
in 1874-5 at £9,840,000, being about one-half of
the total revenue which it was expected would be
raised. But the army expenditure fell again to
under five millions in the budget of 1877-8, and
remained the same in the budgets of 1878-83.
Although in 1881-3 the budget estimate of the
revenue was £31,330,000, and the expenditure
$31,306,000, still, as in previous years, there was
a large deficit, and in October, 1881, the minister
of finance spoke in strong terms of the misman-
agement of his predecessors, and proposed a new
basis of financial administration, by which to rec-
tify past deficiencies and secure a surplus in the

future. He proposed, as seen above, a budget for
1883-3, with a revenue of 783,997,325 pesetas, and
an expenditure of 783,639,250 pesetas. Efforts
were made again, in preparing the budget for
1883-4, to adopt extraordinary means to increase
the revenue, but without satisfactory results.—
The large and constantly increasing annual defi-
cits, dating from the reign of Queen Isabel, were
covered, partly by loans, partly by extraordinary
taxation (such as ' ' exemptions from military serv-
ice," figuring in the budget of 1874r-5), and partly
by the sale of national property, formerly belong-
ing to churches, convents and monasteries.— The
following is a statement of the Spanish debt on
Sept. 1, 1881:

5 per cent, consolidated, due to United States 3,000,000

3 " consolidated, due to Denmark 3,260,000

1 " externaldebt 4,092,894,000

1 " internal debt 3,245,160,194

1 " bonds inscribed in favor of corpo-
rations 1 20,784,433

1 " bonds inscribed in favor of clergy. 14,332,005

2 " bonds for public works 21,678,000

2 " subventions to railways 614,409,000

Old debts convertible into internal 3 per cents. 204,088,176
2 per cent, external redeemable debt 264,402,000

2 " internal redeemable debt 471,647,821

1 " bills 170,826

Arrears 9,567,895

3 per cent, securities of guarantees 2,686,486,250

Total : 12,503,327,576

— In a report of the government of the king Al-
fonso XII., dated July, 1875, it was stated that
none of the national creditors could hope to be
satisfied "without having recourse to credit op-
erations at an enormous rate of interest, which in
a short time doubles the original debt." By a
complicated process of conversion, arranged in
1881-2, the various classes of Spanish debt are
to be converted into "new 4 per cents," where-
by the actual capital will probably be reduced
to £338,000,000, bearing an annual charge of
£9,500,000, equal to about lis. per head of the
population. In addition to this, the state has in-
curred obligations in respect to the island of Cuba,
estimated at over £10,000,000. F. M.

— VIII. Army and Na/oy. The Spanish army
was composed, in 1874, of 70,000 infantry, 13,000
cavalry, 3,000 engineers, 14,000 artillery; besides
40,000 infantry of the reserve, 13,000 custom
house employes, 12,000 police and 3,000 militia of
the Canary islands. In these figures are not in-
cluded the 33,000 to 34,000 men of all aims then
garrisoned in Cuba, the 3,400 at Port Rico, and
the 11,000 of the Philippine islands. —The law
of February, 1873, on the reorganization of the
army abolished conscription by lot, and replaced
it by voluntary recruitment. The recruitment
takes place in the capitals of the provinces, in pro-
portions to be fixed annually by a special law of
the cortes. The voluntary recruit must not be less
than nineteen nor more than forty years of age.
The duration of service is two years for a new re-
cruit, and one in case of re-enlistment, with a
chance for the recruit of remaining for life in the



active army, and enjoying the benefit of promo-
tion in the order of merit and seniority. Volun-
tary recruits receive pay amounting to one piecette
(1 franc) per day, payable weekly. The reserve
(which remains at home) comprises all young men
who, on the first of January of each year, shall
have completed their twentieth year. The gov-
ernment may mobilize the reserve forces within
the limits of the province to which they respect-
ively belong, by a simple decree of the govern-
ment; it may also mobilize them in their respective
military districts, by decree, when the cortes are
not in session; but in this case the government
must inform the assembly as soon as it resumes
its labors. In all other cases mobilization can take
place only by virtue o^ a law. — The requirement
of a certain stature, as a condition for military
service, is abolished in the regular army; it is only
necessary to show that the recruit is sufficiently
strong and robust in health to form a part of the
military force. Voluntary recruits for the active
army are exempt from the reserve. The term of
service in the reserve is three years. The first
year is spent in the ranks, to receive military in-
struction. During the other two years, young
men enrolled in the reserve may be called to active
service, in case of war, in which contingency a
law of the cortes is necessary. Young men of
seventeen years may also be admitted into the re-
server if their physical constitution permits them
to enter the service. — Instruction is given to sol-
diers of the infantry, artillery and engineers, by
the officers of the corps ; but the cavalry must
pass through training institutions. In each corps
there are schools for soldiers, non-qommissioned
officers, and officers, in which they are instructed
in their own duties and in those of the grade im-
mediately above them. In the infantry cadets are
admitted, whom an officer instructs in the branches
necessary to pass the examination as sub-lieuten-
ants. The places of sub-lieutenant not filled by
non-commissioned officers and cadets, are reserved
for the graduates of the infantry college at Tole-
do. These graduates, admitted at the age of four-
teen or fifteen years, remain, after examination,
three years at school, then enter the regiments,
■where they pass successively, in the course of six
months, through all the inferior grades, before
they are appointed sub-lieutenants. A similar col-
lege exists at Valladolid for the cavalry; the grad-
uates follow the same course to become cornets.
The artillery has its college at Segovia, the stu-
dents (who lodge there as in the preceding two)
remain four years, atth^ end of which time they
become attendants of the school of application,
from which, after two years, they issue as lieu-
tenants of the corps. The school of engineering
3s at Guadalajara. Applicants for admission must
be from sixteen to twenty-five years of age, and
pass an examination to enter as day scholars, ac-
cording to their merit, either in the preparatory
course, or in that of the first year. After the
course of the second year, those not already oc-
cupying that rank are made sub-lieutenants; after

four years they obtain the grade of lieutenant.
For the staff school, situated at Madrid, the con-
ditions are nearly the same as for the school of
engineering. At the end of four years the lieu-
tenants pass into the Infantry, then into the cav-
alry, in order to familiarize themselves during
fifteen months with all the details and accounts;
they visit the different military establishments
during six months, before receiving their final
appointment. There is also a college at Madrid
for aspirants to employment in military admin-
istration ; the course there lasts four years. —
Justice is administered, in the case of soldiers,
by military councils of war, presided over by
commanders of corps, or the local governor, ac-
cording to circumstances, and composed of six
members. The sentence is laid before the cap-
tain general, who, aided by his auditor, affirms
or reverses it; in the latter case it is referred to the
supreme tribunal of the army and navy. In the
case of officers, the council is composed of general
officers, and presided over by the captain general,
assisted by the auditor, who does not, however,
take part in the deliberations. The head of the
state decides in the last resort, on the advice of the
supreme tribunal. The sentence may be carried
into immediate execution, and without appeal, if
it does not involve loss of employment or life;
nevertheless, it is always submitted to the approval
of the chief of the state. Offenses and ordinary
misdemeanors are judged by the captain general,
assisted by his auditor ; the case is then presented to
the king. Directors general may order investiga-
tions against officers; they then present the case
to the king, who decides, with the advice of the
supreme tribunal. The artillery, engineers and
the military administration have special tribunals.
Besides the auditor and the procurator connected
with the chief towns of the district, the military
governors are obliged to consult an assessor. * — The
navy consisted, according to official returns, of the
following vessels afloat and under construction,
in 1883 :

First Class : Guns.

5 ironclad frigates 60

12 screw frigates 288

2 paddle steamers 9

Second Class :

5 paddle steamers 12

11 screw steamers 39

2 screw transports 4

* The army of Spain, reorganized in 1868, after the model
of that of France, was modified as to its organization by sub-
sequent laws in 1877, 1878 and 1882. Under the new military
law, the armed forces of the kingdom consist : 1, of a per-
manent army; 2, of a first or active reserve; and 3, of a sec-
ond or sedentary reserve. All Spaniards past the age of
twenty are liable to be drawn for the permanent army, in
which they have to serve three years ; they then pass for
three years into the first or active reserve, and then for six
years into the second reserve. Any one may purchase ex-
emption from service by a payment of about $300. — The
strength of the permanent army of the peninsula for 1882-3
was put down at 94,810 men ; whUe for Cuba the number was
26,579; Porto Rico, 3,318; and the Philippines, 10,035. Of
the infantry there are 140 battalions, and of the cavalry
twenty-four regiments ; six regiments of artillery, and ten
battalions of pioneers. The civic guard consists of fifteen
regiments, with 780 ofBcers and 14,756 men.



Third Class : "'""•

1 ironclad menitor S

a floating batteries 5

19 screw steamers - ^

26 screw ganboats 26

1 paddle gunboat 1

7 paddle steamers W

1 screw transport »

4 pilot sailing vessels * -

Unclassified :

1 steamer - «

2 cadet corvettes 40

29 small screw gunboats 37

2 torpedo boafi

132 Vessels. Total gnns 617

Total horse power of engines, 26,067.

—The navy of Spain was manned, in 1879, by
14,000 sailors, and 7,033 marines, and commanded
by one admiral, seven vice and rear admirals, and
644 commissioned officers of various grades. The
navy, like the army, is recruited by conscription,
naval districts for this purpose being formed along
the coast, among the seafaring population. The
number inscribed on these naval conscription lists
of men between eighteen and thirty years was re-
ported to be 73,000 at the end of June, 1875. —
IX. Besources, Trade and Industry. Agriculture
is the most important branch of activity in Spain,
where there is reason to believe that, of 100 inhab-
itants, 75 cultivate the soil. The land cultivated
comprises 1,150,200 hectares of irrigated land and
25,393,637 hectares not irrigated. The Basque
provinces and Navarre refuse all information on
this subject. It results from these figures, and
from those which may be assigned to the wooded
country, that there still remain about ten million
hectares upon which human industry has not yet
been exercised. — The total, imports and exports
of Spain were as follows, in each of the five years
1877-81 :














Among the importing countries. Great Britain
and France stand first; but in exports, the former
holds the first rank. — The merchant navy of the
kingdom consisted, on Jan. 1, 1881, of 3,236 ves-
sels, of a total burden of 560,125 tons, comprising
347 steamers, of 233,686 tons. At the commence-
ment of 1860 there were 6,715 vessels, of 449,436
tons burden, and at the commencement of 1868
the number of vessels had fallen to 4,840, and the
total tonnage to 367,790, showing a decrease in
the eight years of 1,975 vessels, of an aggregate
burden of 81,696 tons. There was an increase in
tonnage, it will be seen from the preceding figures,
of 193,355 tons, in the thirteen years from 1868 to
1881. — The length of railways in Spain, on Jan.
1, 1880, was 6,550 kilometres, or 4,067 English
miles ; and 2,000 kilometres, or 1,242 English
miles, were in course of construction. The whole
of the Spanish railways belong to private com-

panies, but nearly all have obtained guarantees,
or subventions, from the governnjent. During
the reign of Alfonso alone 2,000 miles of new
lines have been opened, and 3,000 more were in
course of construction in 1882. — The postofflce
carried 85,210,000 letters and post cards in the
year 1878. There were 2,592 postofflces on Jan.
1, 1879. — The length of lines of state telegraphs
of Spain, on Jan. 1, 1880, was 16,124 kilometres,
or 10,070 English miles, and the length of wire
40,405 kilometres, or 25,150 English miles. In
the year 1880 the total number of telegraph mes-
sages was 2,222,429 ; one-fourth of the whole
number being international, and one-fifth of the
remaining number administrative, dispatches. —
X. Colonies. The coloniaj possessions of Spain,
formerly embracing nearly the whole of America,
are reduced at present to Cuba, Porto Rico and the
Philippine islands, with scattered settlements in
the Atlantic and Indian archipelagos, a small strip
of territory in northern Africa, and another strip
claimed on the west coast of Morocco. The total
area of these possessions is 164,926 English square
miles. The total population, according to returns
mostly for 1877-80, numbered 6,399,347. These
returns state the area and population of the vari-
ous possessions as follows :




1. Possessions in America :

Ener. Sq Miles.



Porto Kico - -1 - ..- — —

'Total in America.. ... - .. -


560 .


2. Possessions in Asia ;
Philippine islands .......


Caroline islands and Palaos

Marvan islands................

- '86 000

Total in Asia




3. Possessions in Africa :
Fernando Po, Annabon, Co-
resco, Blobey, San Juan




The population of Cuba, at the census of Dec. 31,
1877, was distributed as follows ; Whites, 764,164;
free negroes, 344,050; negi'O slaves, 227,902; and
Chinese, 58,400. The number of slaves from
1870 to 1877 decreased by 136,000. But the total
number of inhabitants also decreased by 20,500
during the same period. — Spain is the only Euro-
pean state which still permits the existence of
slavery in its colonies. A bill for the abolition of
slavery in Porto Rico was passed by the national
assembly on March 23, 1873, while a bill for the
gradual abolition of slavery in Cuba was laid be-
fore the cortes in November, 1879, supported by
the government. The bill provides, that, on the
promulgation of the law embodying it, all slaves
from fifty-five and upward shall become free; that
slaves from fifty to fifty-five shall be liberated on
Sept. 17, 1880; from forty-five to fifty, in Septem-
ber, 1882; from forty to forty-five, in 1884; from
thirty-five to forty, in 1886; and from thirty to



tbirty-flve in 1888. Those under thirty shall be
emancipated in 1890. From 1880 a sum of 100,000
piastres was to be annually set apart in the Cuban
budget for defraying the expense of the emancipa-
tion of the slaves, the price to be paid to the own-
ers being iixed at 850 piastres for each slave. —
Cuba is divided into three provinces, the southeast
and central being the richest and most populous,
containing twenty-two cities and towns, and 204
villages and hamlets. — Bibliography. Nifiano,
Kocionario-geografico, estadistico, Matorico de Es-
pafla y nts provinciaa de uUramar, Madrid, 1846-
50 ; Block, L'Espagne en 1850, Paris, 1851 ; Lest-
garens. La situation iconomique et industrielle de
I'Eapagne en 1860, Brussels, 1861 ; Garrido, La
Eipafla eontemporanea, Barcelona, 1865; Germond
de Lavigne, L'Espagne et le Portugal, Paris, 1867 ;
Thieblin, Spain and the Spaniards, 2 vols., Lon-
don, 1874 J Memoriaa del instiiuto geografico y eaia-
dastieo, Madrid, 1875, etc. ; Chervin, Stalistique du
mouvement de la population en E»pa,gne de 1865 d,
1869, Paris, 1876 ; El movimiento del estado civil in
EspaHa desde 1861 d 1870, Madrid, 1877 ; Guia
opsial de Espafia, Madrid, 1878 ; Lafuente, His-
tma general de Eapafia, Madrid, 1850-67, 30 vols. ;
Tapia, Historiade lacwilisazion de Espafla, 7 vols.,
Madrid, 1861-4 ; Montesa y Manrique, Historia de
lakgislacion, etc., de EapaHa, Madrid, 1864 ; Rico
y Amat, Historia politica y parlamentana de Es-
pafla, 3 vols., Madrid, 1860-62; Alfaro, Crni-
pendio de la Mstoria de Espafia, 8 vols., Madrid,
1862. F. M.

SPEAKER. (See Parliamentary Law.)

SPEAKERS. (See Congress, Sessions of.)

SPECULATION, in some form or other, has
existed under every commercial system; but the
forms under which it is now largely conducted,
and the enormous extent of the speculative trans-
actions, are peculiar to the present age. It is with
the discussion of these forms — their character,
their development, and their more immediate ef-
fects — that this article is concerned. (For the
more wide-reaching effects of the speculative spir-
it upon credit, business and production, see arti-
cles on Commercial Crises, and on Over-pro-
duction.) — Until the present century the chief
field for speculative operations was furnished by
the difference of price of the same commodity in
different places. Mercantile profits were made by
buying in a cheap market and selling in a dear
one; and with the imperfect means of communi-
cating intelligence, and the slow and generally
hazardous means of transportation, such specula-
tions often involved great risks and offered the
chance of correspondingly high profits. But the
modern development of the postoflSce, of steam
transportation, and especially of the telegraph,
changed all this. Abundance in one market, and
scarcity in another, was no longer possible except
on a limited scale or through artificial obstruc-
tions. The telegraph gives notice of the inequal-

ity in its first beginnings; and, long before it can
reach an extreme, cargoes have been diverted from
the full market to the empty one. Indications
which once could be seized only by men of
exceptional position and sagacity, are now the
common property of the whole business public.
— But the opportunities for men of exceptional
position and sagacity have been extended in
another direction more than they have been cur-
tailed here. The state of the markets at distant
places may be known to every one; but it Is still
only the few that can foresee their state at distant
times. The information that has set narrow lim-
its to speculation in place has furnished the neces-
sary basis to an infinitely more important and
wide-reaching speculation in time. The differ-
ence in price between New York and Chicago,
apart from temporary disturbing causes, can never
be greater than the cost of carriage (in its widest
sense) between the two places, because we have in
the one place telegraphic information concerning
the markets of the other. If we had the same
certain knowledge of prices at future tipjes, the
prices of goods to-day and a month hence could
not differ by more than the cost of holding those
goods for that length of time. It is, of course,
impossible to have such knowledge; and the few
who have the power to foresee or to manipulate
the course of the market are enabled to turn these
price variations to their own account. Before
the invention of the telegraph, such dealing in
futures would have been a blind game of chance;
now, there is just such a combination of indica-
tions and uncertainties as to give scope to business
talent of the highest order. Here lies the expla-
nation of what is peculiar in the speculation of
the present day. — In a healthy state of business
these variations in price are not very large or
rapid; often not large or rapid enough to make
speculative dealings pay the interest of the capital
required. But such a state of things is almost
always disturbed by a sudden rise in the price of
certain classes of goods, or perhaps by a general
rise of prices. A sudden increase in the demand
or decrease in the supply of a particular article
will produce the former result; inflation of the
currency, increased production of the precious
metals, or, sooner or later, the unrestricted exten-
sion of business credits, will produce the latter.
The holder of goods of the classes affected sees
himself nominally the richer for every day that
goes by, and with this apparent increase of wealth
comes a desire on the part of every one to hold
more goods and stocks, even if they have to bor-
row money to do so. This shows itself, not merely
in the operations of the stock and produce ex-
changes, but in business speculations of every
kind; most of all, perhaps, in the extension of spec-
ulative production, which lies outside the scope
of the present article. This holding for a rise is
the form of speculation which presents most at-
tractions for the general public; and a speculative
mania is often developed which can only end in a
crisis. This mania may attach itself to particular



lines of investment, as to tulips in Holland in
1634r-8, to South sea bubbles in England in 1720,
to manufactures in 1815 and 1835, to the English
railways in 1846, or the American railways (among
other things) in 1871-3. Often it may be more
general in connection with the indiscriminate ex-
tension of credit, as in the years preceding 1837
and 1857 ; or, worse yet, in connection with cur-
rency inflation, as seen in France at the time of
John Law's bank, 1718-20, in the assignats of the

Online LibraryJohn J. (John Joseph) LalorCyclopædia of political science, political economy, and of the political history of the United States → online text (page 201 of 290)