This is plain speaking; the Government journal of France worthily disdains to practise mystery or attempt deception, for its mission is to contend for the interests, one-sided, exclusive, and egoistical, as they may be, and establish the supremacy of France—quand même; at whatever resulting prejudice to Belgium—at whatever total exclusion of Great Britain from commercial intercourse with, and commercial transit through Belgium, must inevitably flow from a customs' union, the absolute preliminary condition of which is to be, that Belgium "shall be ready to do every thing necessary to place our commerce beyond the reach of invasion by foreign products." Mr Gladstone may rest assured that the achievement of this Franco-Belgiac customs' union will still be pursued with all the indomitable perseverance, the exhaustless and ingenious devices, the little-scrupulous recources, for which the policy of the Tuileries in times present does not belie the transmitted traditions of the past. And it will be achieved, to the signal detriment of British interests, both commercial and political, unless all the energies and watchfulness of the distinguished statesmen who preside at the Foreign Office and the Board of Trade be not unceasingly on the alert.

Other and unmistakeable signs of the spirit of commercial combination, or confederation, abroad, and more or less explicitly avowed and directed against this country, are, and have been for some time past, only too patent, day by day, in most of those continental journals, the journals of confederated Germany, of France, with some of those of Spain and of Portugal, which exercise the largest measure of influence upon, and represent with most authority the voice of, public opinion. Nor are such demonstrations confined to journalism. Collaborateurs, in serial or monthly publications, are found as earnest auxiliaries in the same cause—as redacteurs and redactores; pamphleteers, like light irregulars, lead the skirmish in front, whilst the main battle is brought up with the heavy artillery of tome and works voluminous. Of these, as of brochures, filletas, and journals, we have various specimens now on our library table. All manner of customs, or commercial unions, between states are projected, proposed, and discussed, but from each and all of these proposed unions Great Britain is studiously isolated and excluded. We have the "Austrian union" planned out and advocated, comprising, with the hereditary states of that empire, Moldavia, Wallachia, Bulgaria, Servia, Bosnia, as well as those provinces of ancient Greece, which, like Macedonia, remain subject to Turkey, with, perhaps, the modern kingdom of Greece. We have the "Italian union," to be composed of Sardinia, Lombardy, Lucca, Parma, and Modena, Tuscany, the two Sicilies, and the Papal States. There is the "Peninsular union" of Spain and Portugal. Then we have one "French union" sketched out, modestly projected for France, Belgium, Switzerland, and Savoy only. And we have another of more ambitious aspirations, which should unite Belgium, Switzerland, and Spain under the commercial standard of France. One of the works treating of projects of this kind was, we believe, crowned with a prize by some learned institution in France.

From this slight sketch of what is passing abroad—and we cannot afford the space at present for more ample development—the right honourable Vice President of the Board of Trade will perhaps see cause to revise the opinion too positively enounced, that "foreign countries neither have combined, nor ought to combine, nor can combine, against the commerce of Great Britain;" and that it is a "calumny" to conceive that they are "disposed to enter into such a combination."

With these preliminary remarks, we now proceed to the consideration of the commercial relations between Spain and Great Britain, and of the policy in the interest of both countries, but transcendently in that of Spain, by which those relations, now reposing on the narrowest basis, at least on the one side, on that of Spain herself, may be beneficially improved and enlarged. It may be safely asserted, that there are no two nations in the old world—nay more, no two nations in either, or both, the old world and the new—more desirably situated and circumstanced for an intimate union of industrial interests, for so direct and perfect an interchange of their respective products. The interchange would, indeed, under a wise combination of reciprocal dealing, resolve itself purely almost into the primitive system of barter; for the wants of Spain are such as can be best, sometimes only, supplied from England, whilst Spain is rich in products which ensure a large, sometimes an exclusive, command of British consumption. Spain is eminently agricultural, pastoral, and mining; Great Britain more eminently ascendant still in the arts and science of manufacture and commerce. With a diversity of soil and climate, in which almost spontaneously flourish the chief productions of the tropical as of the temperate zone; with mineral riches which may compete with, nay, which greatly surpass in their variety, and might, if well cultivated, in their value, those of the Americas which she has lost; with a territory vast and virgin in proportion to the population; with a sea-board extensively ranging along two of the great high-ways of nations—the Atlantic and the Mediterranean—and abundantly endowed with noble and capacious harbours; there is no conceivable limit to the boundless production and creation of exchangeable wealth, of which, with her immense natural resources, still so inadequately explored, Spain is susceptible, that can be imagined, save from that deficient supply of labour as compared with the territorial expanse which would gradually come to be redressed as industry was promoted, the field of employment extended, and labour remunerated. With an estimated area of 182,758 square miles, the population of Spain does not exceed, probably, thirteen millions and a half of souls, whilst Great Britain and Ireland, with an area of 115,702 square miles, support a population of double the number. Production, however, squares still less with territorial extent than does population; for the stimulus to capital and industry is wanting when the facilities of exchanges are checked by fiscal prohibitions and restrictions. Agricultural produce, the growth of the vine and the olive, is not unfrequently known to run to waste, to be abandoned, as not worth the toil of gathering and preparation, because markets are closed and consumption checked in countries from which exchangeable commodities are prohibited. The extent of these prohibitions and restrictions, almost unparalleled even by the arbitrary tariff of Russia, may be estimated in part by the following extract from a pamphlet, published last year by Mr James Henderson, formerly consul-general to the Republic of New Granada, entitled "A Review of the Commercial Code and Tariffs of Spain;" a writer, by the way, guilty of much exaggeration of fact and opinion when not quoting from, or supported by, official documents.

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:—

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—

From the first to the last year of the decennial term, the regular trade, therefore, had declined to the extent of above L.193,000, or at the rate of about 33 per cent. But as for three of the intermediate years 1837, 1838, and 1839, the exports are returned at L.286,636, L.243,839, and L.262,231, exclusive of fluctuations downwards in previous years, it will be more satisfactory to take the averages for five years each, of the term. Thus from—

The average decline in the latter term, was therefore above 27½ per cent.

Of the Foreign and Colonial merchandise re-exported within the same period it is difficult to say what proportion was for British account, and, as such, should therefore be classed under the head of trade with Spain. It may be assumed, however, that the following were the products of British colonial possessions, whose exports to Spain are thus stated in quantities:—

The tobacco, being of United States' growth, may, to a considerable extent, be bonded here for re-exportation on foreign account merely. The foregoing, though the heaviest, are not the whole of the foreign and colonial products re-exported for Spain, but they constitute the great bulk of value. Taking those of the last year, their value may be approximatively estimated in round numbers, as calculated upon what may be assumed a fair average of the rates of the prices current in the market, as they appear quoted in the London Mercantile Journal of the 4th of April. It is only necessary to take the more weighty articles.

It may, we conceive, be assumed from these citations of some few of the larger values exported to Spain under the head of "Foreign and Colonial Merchandise," that the total amount of such values, inclusive of all the commodities non-enumerated here, would not exceed L.150,000, which, added to the L.404,252 already stated as the "declared values" of "British and Irish produce" also exported, would give a total export for 1840 of L.554,250.

We come now to the imports from Spain and the Balearic Isles, direct also into the United Kingdom, as stated in the Board of Trade tables in quantities; selecting the chief articles only, however:—

Applying the same plan of calculation upon an average of the prices ruling in the London market, we arrive at the following approximate results:—

On several of the foregoing commodities the average rates of price on which they are calculated may be esteemed as moderate, such as wines, brandies, raisins, &c.; and several are exclusive of duty charge, as where the averages are estimated at the prices in bond. In other commodities the average rates are inclusive of duty. Wines, brandies, quicksilver, barilla, are exclusive of duty, for example; the others, duty paid, but in some instances duties scarcely more than nominal. On the other hand, it must be taken into the account, for the purpose of a fair comparison, that these average estimates of the prices of imported merchandise do include and are enhanced by the expense of freights and the profits of the importer, and therefore all the difference must be in excess of the cost price at which shipped, and by which estimated in Spain. The "declared values" of British exports to Spain embrace but a small proportion, perhaps, of these shipping charges, and are altogether irrespective of duties levied on arrival in Spanish ports. As not only a fair, but probably an outside allowance, let us, therefore, redress the balance by striking off 20 per cent from the total estimated values of imports from Spain to cover shipping charges, profits, and port-dues, whether included in prices or not. The account will then stand thus:—

The acceptation is so common, it has been so long received as a truism unquestionable as unquestioned, as well in Spain as in Great Britain, of British commerce being one-sided, and carrying a large yearly balance against the Peninsular state, that these figures of relative and approximate quantities can hardly fail to excite a degree of astonishment and of doubt also. It will be, as it ought to be, observed at once, that the trade with Spain direct represents one part of the question only; that the indirect trade through Gibraltar, and elsewhere, might, in its results, reverse the picture. The objection is reasonable, and we proceed to enquire how far it is calculated to affect the statement.

The total "declared value" of the exports of British and Irish produce, and manufactures to Gibraltar, for the year 1840, is stated at

It may be asserted as a fact, for, although not on official authority, yet we have it from respectable parties who have been resident on, and well conversant with the commerce of that rock, that, of the cotton goods thus imported into Gibraltar, the exports to Ceuta and the opposite coast of Africa amount, on the average, to L.70,000 per annum. Of linens and woollens a considerable proportion find their way there also, and to Italian ports. Of British and colonial merchandise exported to Gibraltar in the same year, the following may be considered to be mainly, or to some extent, designed for introduction into Spain:—

Some cotton piece-goods from India, and silk goods, such as bandannas, &c., pepper, cloves, &c., &c., were also exported there; say, inclusive of the quantities enumerated above, to the total value of L.100,000 of commodities, of which a considerable proportion was destined for Spain. Assuming the whole of the cotton goods to be for introduction into Spain, minus the quantity dispatched to the African coast, we have in round numbers the value of

Again, however, various products of Spain are also imported into the United Kingdom via Gibraltar, such as—

It may be fairly assumed, therefore, that to the extent of L.100,000 of Spanish products, consisting, besides the foregoing, of wines, skins, pig-lead, &c., &c., is brought here through Gibraltar, which, added to the amount of the imports from Spain direct, will sum up the account thus:—

—A sum nearly equal to the amount of the exports to Spain direct. As we remarked before, these figures and valuations, which are sufficiently approximative of accuracy for any useful purpose, will take public men and economists, both here and in Spain, by surprise. Amongst other of the more distinguished men of the Peninsula, Señor Marliani, enlightened statesman, and well studied in the facts of detail and the philosophy of commercial legislation as he undoubtedly is, does not appear to have exactly suspected the existence of evidence leading to such results.

From the incompleteness of the Spanish returns of foreign trade, it is unfortunately not possible to test the complete accuracy of those given here by collation. The returns before us, and they are the only ones yet undertaken in Spain, and in order, embrace in detail nine only of the principal ports:—

Although these are the principal ports of Spain, yet they are not the only ports open to foreign trade, although, comparatively, the proportion of foreign traffic shared by the others would be much less considerable. It is remarkable, under the circumstances, how closely these Spanish returns of exports to Great Britain approach to our own valuations of the total imports from Spain direct, as calculated from market prices upon the quantities alone rendered in the tables of the Board of Trade.

The public writers and statesmen of Spain have long held, and still maintain the opinion, that the illicit introduction into that country of British manufactures whose legal import is prohibited, or greatly restricted by heavy duties, is carried on upon a much more extensive scale than what is, or can be, the case. In respect of cotton goods, the fact is particularly insisted upon. It may be confidently asserted, for it is susceptible of proof, that much exaggeration is abroad on the subject. We shall bring some evidence upon the point. There can be no question that, so far as British agency is directly concerned, or British interest involved, in the contraband introduction of cottons, or other manufactures, or tobacco, it is almost exclusively represented by the trade with Gibraltar. We are satisfied, moreover, that the Spanish consumption of cotton goods is overrated, as well as the amount of the clandestine traffic. Señor Marliani an authority generally worthy of great respect, errs on this head with many others of his countrymen. In a late work, entitled De la Influencia del Sistema prohibitiva en la Agricultura, Commercio, y rentas Publicas, he comes to the following calculation:—

Again, Great Britain imports annually into Italy to the amount of £2,005,785 in cotton goods, £500,000 worth of which, it is not too much to assume, go into Spain through the ports of Leghorn and Genoa. Adding together, then, these several items of cotton goods introduced from France and England into Spain by contraband, we arrive at the following startling result:—

An extravagant writer, of the name of Pebrer, carried the estimate up to £5,850,000. Señor Inclan, more moderate, still valued the import and consumption at £2,720,000. A "Cadiz merchant," with another anonymous writer of practical authority, calculated the amount, with more sagacity, at £2,000,000 and £2,110,000 respectively. Señor Marliani is, moreover, of opinion—considering the weight of tobacco, from six to eight millions of pounds, assumed to be imported into Gibraltar for illicit entrance into Spain, on the authority of Mr Porter, but the words and work not expressly quoted; the tobacco, dressed skins, corn, flour, &c. from France, with the illegal import of cottons—that the whole contraband trade carried on in Spain cannot amount to less than the enormous mass of one thousand millions of reals, or say ten millions sterling a-year. Conceding to the full the millions of pounds of tobacco here registered as smuggled from Gibraltar, of which, notwithstanding, we cannot stumble upon the official trace for half the quantity, we must, after due reflection, withhold our assent wholly to this very wide, if not wild, assumption of our Spanish friend. We are inclined, on no slight grounds, to come to the conclusion, that the amount of contraband trade really carried on is here surcharged by not far short of one-half; that it cannot in any case exceed six millions sterling—certainly still a bulk of illegitimate values sufficiently monstrous, and almost incredible. We shall proceed to deal conclusively, however, with that special branch of the traffic for which the materials are most accessible and irrecusable, and the verification of truth therefore scarcely left to the chances of speculation.

First, for the rectification for exact, or official, quantities and values, we give the returns of the total exports of cotton manufactures, taken from the tables of the Board of Trade:—

And for 1840 here are the exports to the countries specified:—

The discrepancies between some of the figures in these returns and those cited by Señor Marliani, arise probably from their respective reference to different years; they are, however, unimportant. We have already shown, that, deducting the re-exports of cottons to Ceuta and the coast of Africa opposite to Gibraltar, the value of those destined for Spain, by way of the Rock; in 1840, could not exceed

We have the official returns of the whole imports of cotton manufactures, with the exports, of the Sardinian States for 1840, now lying before us.

The whole of which to Tuscany, the Two Sicilies, the Roman States, Parma and Placentia, the Isle of Sardinia, and Austria. It will be observed that there had been a great falling off in the trade with the Sardinian States in 1840, as compared with 1838 and 1839; and here, for greater convenience, we make free to extract the following remarks and returns from our esteemed contemporary of the Morning Herald, with some slight corrections of our own, when appropriately correcting certain misrepresentations of Mr Henderson, similar to those of Señor Marliani, respecting the assumed clandestine ingress of British cotton goods into Spain from the Italian states:—

"Now the official customhouse returns of most of the Italian states are lying before us—the returns of the Governments themselves—but unfortunately none of them come down later than 1839, so that it is impossible, however desirable, to carry out fully the comparison for 1840. Not that it is of any signification for more than uniformity, because, on referring to years antecedent to 1839, the relation between imports of cottons and re-exports, with the places from which imported and to which re-exports took place, is not sensibly disturbed. The returns for the whole of Sardinia are not possessed later than 1838, but those for Genoa, its chief port, are for 1839, and nearly the whole imports into Sardinia, as well as exports, are effected at Genoa. Thus of the total imports of cotton goods into Sardinia in 1838, to the value of about L.843,000, the amount into Genoa alone was L.823,000. That year was one of excessive imports and 1839 one of equal depression, but this can only bear upon the facts of the case so far as proportionate quantities.

The total value of cottons introduced into the Roman states is stated for 1839 at L.108,640, of which the whole imported from France, Sardinia, and Tuscany—

"The total imports of woollen, cotton, and hempen goods together, in the same year, were to the amount of L.155,000.

"Of the imports and exports of Naples, unfortunately, no accounts are possessed; but the imports of cottons into the island of Sicily for 1839 were only to the extent of L.26,000, of which to the value of L.8,000 only from England. In 1838 the total imports of cottons were for L.170,720, but no re-exportation from the island. The whole of the inconsiderable exports of cottons from Malta are made to Turkey, Greece, the Barbary States, Egypt, and the Ionian Isles, according to the returns of 1839."

From these facts and figures, derived from official documents, of the existence of which it is probable Señor Marliani was not aware, it will be observed at once how extremely light and fallacious are the grounds on which he jumps to conclusions. What more preposterous than the vague assumption founded on data little better then guess-work, that one-fourth of the whole exports of British cottons to Italy and the Italian islands, say L.500,000 out of L.2,000,000, go to Spain, when, in point of fact, not one-tenth of the amount does, or can find its way there—or could, under any conceivable circumstances short of an absolute famine crop of fabrics in France and England. Neither prices nor commercial profits could support the extra charges of a longer voyage out, landing charges, transhipment and return voyage to the coasts of Spain. It has been shown that in the year 1840, not the shipment of a single yard of cottons took place from Genoa, the only port admitting of the probability of such an operation.

Not less preposterous is the allegation, that three-fourths of the whole exports of British cottons to Portugal are destined for, and introduced into Spain by contraband. Assuming that Spain, with thirteen and a half millions of people, consumes, in the whole, cotton goods to the value of

It is necessary for the interests of truth, for the interests also of both countries, that the popular mind, the mind of the public men of Spain also, should be disabused in respect of two important errors. The first is, that an enormous balance of trade against Spain, that is, of British exports, licit and illicit too, compared with imports from Spain—results annually in favour of this country, from the present state of our commercial exchanges with her. The second is, the greatly exaggerated notion of the transcendant amount of the illicit trade carried on with Spain in British commodities, cottons more especially. In correction of the latter misconception, we have shown that the amount of British cotton introduced by contraband cannot exceed, nor equal,

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.