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:--

Estimated imports from Spain in round numbers L.2,165,000
Deduct 20 per cent, 433,000
-----------
Value of imports shipped, L.1,732,000
Deduct declared value of British exports to Spain, 554,000
-----------
Excess of Spanish imports direct on equalized
estimates of values, L.1,178,000

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

L1,111,176
Of which, as more or less destined
for Spain, licitl