Spain

The deficit for 1927 may be looked upon as a definite turn for the better in comparison with previous deficits, which were :— Budget Estimates for 1928.—The expenditure was estimated at 3,257 million pesetas, made up of :— Revenue is estimated at 3,258,000,00o pesetas, which leaves an estimated surplus on the ordinary budget of i,000,000 pesetas. This is an increase of only 40,000,000 pesetas over the revenues actually collected in 1927, so it seems probable that the 1928 estimates are on the conservative side. The expenditure of 3,258, 000poo pesetas is an increase of 16,000,000 over the amount spent during 1927 under ordinary budget headings.

Public Debt.

The following table gives the different cate gories of the Spanish National Debt after the recent conversion of 4% Perpetual Internal Debt: The annual service of interest and sinking fund is estimated at 846,000,000. Taking the revenues as estimated for 1928 at 3,258,000,00o, it will be seen that debt services absorb 26% of the revenues.

Note Circulation.

The following figures give the note cir culation and reserves at the close of the last three years:— In the course of two years the notes in circulation have de creased by 237,000,00o, while the gold and silver reserves have increased by 84,000,000 and 33,000,00o respectively. It is not surprising, therefore, that the peseta exchange showed improve ment.

Bank Clearings.

The settlements effected through the Mad rid Clearing House showed a large increase in 1927 over previous years. The figures in millions of pesetas are 1924 . . . . . 12,779 1926 . . . . . 18,119 1925 ..... 14,136 1927 . • • • . 54,494The increase in the total clearings has not carried with it a wider diffusion of the system of payment by cheque. The number of cheques dealt with in 1927 was less than in 1926. The Clearing House Committee sees cause for regret in this fact, and appeals for concerted propaganda to convince commercial firms of the advantages of cheque payments.

Prices.

The general course of wholesale prices in 1927 was downwards, in agreement with the increase in the value of the peseta, as is shown in the following index numbers for foodstuffs and raw materials, compiled on a basis of 10o for the year 1913 : The imports of manufactured articles show by value and vol ume continuous increases over the three years, and an important increase is to be recorded in coal shipments to Spain, the bulk of the latter being of British origin.

Of the 6,247 tons of ferromanganese imported, Great Britain shipped 3,874 tons, followed by Norway with 2,244 tons. Scrap iron and steel entered Spain to the extent of over i oo,000 tons, which compares with 57,00o and 94,000 tons in 1926 and 1925 respectively, Great Britain retaining the lead. Imports of fine carbon steels show a progressive increase since 1925, the 1927 figures being 1,721 tons, of which British firms supplied 6410 tons. Seven thousand three hundred tons of tinplates, or double the amount of 1926, were absorbed by the Spanish market; the United Kingdom, as usual, shipped the bulk, viz.: 6,837 tons.

In the machine tool section Germany is again at the head of the suppliers, the imports from Great Britain being on the same level as those of the preceding year. Textile machinery shows a slight falling off, the figures being 3,568 tons in 1927, 3,715 tons in 1926, and 3,9o3 in 1925. Great Britain's share has dwindled from 1,54o tons in 1926 to 1,116 tons in 1927. In motor-cycles Great Britain retains the lead, with 228 tons, followed by France, with 97 tons. The total imports were 238 tons in 1927, 129 tons in 1926, and 94 tons in 1925, thus indicating a progressive im provement in the market for motor-cycles in Spain. In the motor car section the United States and France continue to be the chief suppliers.

In comparison with previous years, the imports of cotton piece goods have slightly declined, although the United Kingdom re tains the lead in their supply. The same remark applies to the other textiles made of vegetable fibres, and to woollen piece goods.

Exports of iron ore show an advance at 4,800,000 tons, as against 1,900,000 and 3,600,000 tons in 1926 and 1925 respec tively. Great Britain absorbed 2,400,000 tons.

Transport.

In July 1925 a railroad fund of 2,600,000,00o pesetas was sanctioned. The railroads may secure advances from the State for the purpose of providing for capital expenditure. The advances made from the fund are a charge upon the earnings of the company in the sense that a part of the earnings propor tionate to the amount of capital advanced by the State is returned as its participation.