No. 444.
Mr. Lowell to Mr. Evarts.

No. 151.]

Sir: Just after I had dispatched my No. 150, a leading article appeared in the Epoca, a conservative journal, which supports the administration, bearing more directly than any other I have seen upon the question of a commercial treaty between Spain and the United States. I have accordingly Englished it, and the original together with the translation are appended.

You will observe whit is said about the American republics formerly dependencies of Spain. There is now in Madrid a minister of Colombia (accredited to Belgium), who will remain, he tells me, several months. The natural source for the supply of manufactured goods to those regions would seem to be in the United States. In case the lines of steamers between this country and South America were established, though they might carry some Spanish manufactures, yet I suspect that they would be in much greater proportion the mere distributors of English wares.

What is said also in the article from the Epoca about agricultural machinery is deserving of attention, the surface of the country in many parts of Spain being as well adapted to their use as our own prairies.

I have, &c.,

J. E. LOWELL.
[Inclosure in No. 151—Translation.]

Spain and the United States in a commercial point of view.

We have published the commercial statistics corresponding to the year 1874, that is to say, the movement of imports and exports between Spain and the United States of America. It results from these statistics, as the readers of the Epoca have seen, that the total value of exports amounted to 20,366,420 pesetas, and that of imports to 69,896,360 pesatas, a difference in favor of the latter of 49,529,940 pesetas.

To the United States we export raisins, grapes, lemons, almonds, galls, common and high wines, oils, cork, common salt, and other articles, and from the American Republic we import raw cotton, petroleum, staves, tobacco, grain, lard, butter, salted meats, leather, hides, &c.

It is plain that a great disproportion exists between the value of products imported and exported. And this disproportion has its origin not in the Spanish tariff, but in that of the United States; which is a revenue tariff to excess, which imposes increased duties on fruits and other articles, lessening the demands, as the Eco de las Aduanas says, which there would be for our products if the American tariff were different.

What is the conduct of Spain toward the United States? With the exception of petroleum, which now pays increased duties, but of an extraordinary and transitory character, the other articles either pay no duty, like tobacco, which is imported in such great quantities from Virginia and Kentucky, or pay weighing dues, like raw cotton, or a low revenue duty like staves.

One of our esteemed colleagues says that the commercial policy of Spain towards the United States is more acceptable than that which the American Republic concedes to us. It depends upon her whether a treaty of commerce maybe made, without preventing our considering with the greatest interest whatever relates to our colonies. Just at this moment the ministry of Hacienda is studying what modifications may be possible in our existing laws to facilitate the development of our commerce with Cuba, Porto Rico, and the Philippines.

The Eco de las Aduanas believes that the concrete question of the trade between Spain and the United States, may be settled, independently of the other by means of a commercial treaty, by which the treatment of the most favored nation should be [Page 940] granted, and the extraordinary duties on petroleum renounced, obtaining in exchange considerable reductions in the duties on fruits, wines, oils, and other articles which we export to North America.

This is a controverted question. Let us see what an enlightened writer says. According to him, should we conclude the treaty, the following articles should be excluded from it, or charged with protective duties: sugar, rice, flour, salt pork, lard, butter, refined petroleum, and lead. As for raw petroleum it should be included in the benefits of the treaty, because it lends itself to a new industry—refining—which may establish itself in Spain.

What would Spain lose by concluding a commercial treaty with the United States for two, three, or, at most, five years, by way of experiment?

We believe that she would lose nothing, and that, on the contrary, she would open a sure and very important market for all natural productions of which she has a superabundance, at the same time cheapening to her manufacturers the acquisition of products, without which the complete development of her manufactures of cotton and woolen cloths, tanned leather, dyes, casks, flour, and refined petroleum cannot take place. Neither would the United States be prejudiced by admitting the products of Spain at low duties.

But if a treaty is to be concluded, if its essential bases are to be agreed on, we must wholly free ourselves from the spirit of provincialism. The Catalans desire, and so does Spain, that their many and prosperous manufactures should be protected; the Castilians their wheat and flouring mills; Andalusians their wines, raisins, almonds, and oil. All those industries are Spanish, and all those products national, and accordingly we should not talk of this or that province, and of this or that district, but of the country.

If hitherto it has been difficult to compete, for example, with the grains of the United States in the principal European points of consumption, such as Liverpool, London, Antwerp, Bordeaux, and Marseilles; and if ships are constantly arriving at our Mediterranean ports, the facilities of transport increased and freights diminished, what will happen? Capital must converge toward the country and be directed to agriculture. If the national wealth is invested in stocks and withdrawn from agriculture, canals, forests, and machinery will be wanting in the Castilian provinces.

Usury is the most terrible enemy of the husbandman, and unfortunately it is a plant which just now grows and is spreading in Spain. Our farmers being reduced to mere sowers and reapers, machinery which might simplify operations and save manual labor is not introduced. We all know that by taking certain measures recommended by experience, much would be gained; but we know also that to carry them out a considerable previous outlay is necessary, which cannot be made, because the usurious interest of the money he absolutely needs compels the farmer to sell his crops before the harvest has supplied him. And this circumstance forcing him to sell unseasonably, that is to say, to pay in kind at a low price, without being able to profit by favorable circumstances, he often finds himself not only in no position to spend money in machinery, but commonly unable to devote himself adequately to the most necessary manual labor, since through want of resources he finds himself obliged to practice economy, an unwise economy it is true, but absolutely indispensable because nemo dat quod non habet.

Little can be hoped here from private enterprise; there are rooted vices in our habits, which not even experience itself demonstrating their harmfulness will ever be able to extirpate.

But aside from the above considerations, and returning to the main topic, we are bound to take up and present the opinion maintained by an enlightened review. According to that publication it is necessary, in order that Spanish products may compete with foreign, “First, to lessen the intrinsic cost of our goods, which necessarily implies a great development of manufacture, as we have already said at the beginning of this article; second, to make transport cheaper and more speedy, which requires considerable reforms in our ship-building industry; third, to unify our customs legislation till we reach a point where trade maybe carried on between Spain and the colonies on the same footing, so far as duties are concerned, as between the provinces of the Peninsula; and, fourth, to conclude commercial conventions with the American republics, which may stimulate the development of our mercantile relations.” That is to say, that the preponderance of a nation springs from the development of its foreign commerce, and the encouragement of its shipping interest, which carries the national flag to all regions of the known world.

Spain has the aptitude and the conditions for considerably extending her commerce; first to her colonies, then to the Spanish-American republics, and afterwards to neighboring countries. To attain this end we need administrative reforms, which may be adopted with greater or less speed; greater and more profound industrial knowledge, easily acquired by the efforts of all; and commercial conditions easy to be reached; and above all we need a most lively desire that our country may grow great, rich, and respected.

[Page 941]

For example, the newspapers of Colombia desire and ask for the establishment of direct communication between Spain and the ports of that country.

Is not this a just desire and a legitimate aspiration? But the establishment of that line of steamers would develop the marine, and give new life to commercial transactions. Would not constant and favorable relations with South America bring with them an indirect protection to the flour of Castile, to the wines of Aragon. Andalusia, La Mancha, and Catalonia, to the fruit of the Mediterranean? Undoubtedly. A line of frequent and regular steamers between Spanish ports and the United States—would it not be opportune? Who doubts it? In the American Republic they want our wines, our corks, our dried fruits, our esparto-grass, as well as other products, like the Valencian pottery, which is beginning to be introduced. In Spain we need machinery, petroleum, cereals (when the crop of Castile fails or is short), cotton, and other products of the United States, which we generally buy at second-hand.

Commerce nowadays is the true diplomacy. Mercantile conventions are the treaties of alliance. But space fails us and we must suspend this important task till another day.