most effectual means of improving the financial position. Let the government reduce the duties on foreign manufactured cottons to twenty per cent _ad valorem_. The importations (chiefly contraband) of that class of merchandise at present amounts, as I am informed, to about three millions sterling. A twenty-per-cent duty would demolish the smuggler, and yield the revenue six hundred thousand pounds a year. Would it not then be possible for Spain to get a small loan on reasonable terms, the coupons being accepted, as soon as due, in payment of custom-house duties, and an arrangement, or the promise of an early one, being at the same time made with respect to the amount of coupons which Bravo Murillo laid upon the shelf? It is, however, unnecessary to answer this question until we have reduced the duty. Here, again, great difficulties present themselves, and jealous interests bar the way. Catalonia and the smugglers would be in arms the very moment such a measure was promulgated. Catalonia, which produces (I speak from experience of its goods) wretched wares at exorbitant prices, has long been the great impediment to Spain’s prosperity, or at least improvement. That one province pretends to make the whole country buy its inferior merchandise in preference to that of England and France; and this pretension it enforces, to the great profit and contentment of the contraband trader. Time and a strong government are needed to bring about that reduction of duties on foreign manufactures which would prove so great a benefit to Spain, and to its revenue. And at present, time is wanting. Something must be done quickly. As things now stand, it is hard to tell whence is to come the money for the next dividend on the home and foreign debt. At this date but a small portion of the last dividend due on the home debt has been paid. It has been suggested that much will depend on the composition of the constituent Cortes. If the country elects representatives who will support the present government, and so give confidence in its duration and strength, it is thought that capitalists will perhaps be found to come to its aid. But if the good sense of Spanish electors prove unequal to the emergency—if they return a Chamber composed of a mixture of demagogues and of partisans of reaction, and not containing a good working majority in favour of the policy of moderate progress, which is that of the Espartero-O’Donnell cabinet—there is nothing but fresh trouble in store for Spain, and the question of finance will then appear almost hopeless.