er 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.

_Statement of the Spanish Debt at commencement of 1842_:--

Internal--Liquidated, that
is verified, L.50,130,565 Without interest.
Not liquidated 9,364,228 with 5 per cent in paper.
Not consolidated, 2,609,832
Bearing 5 per cent, 15,242,593 Interest, L.762,128
Do. 3 do. 5,842,632 -- 233,705
----------- -----------
L.83,189,850 L.995,833
----------- -----------

External Loan of 1834, and the conversion
of old debt, L.33,985,939 5 per cent, L.1,699,296
Balance of inscription to the public
treasury of France, 2,782,681 -- 160,000
Inscriptions in payment of
English claims, 600,000 -- 30,000
Ditto for American claims, 120,000 -- 6,000
----------- -----------
L.37,488,620 L.1,895,296

Capitalized _coupons_, treasury
bonds, &c., amount not stated,
but some millio