Finance.-The constitution limited the debt that the state might contract to meet casual deficits to $100,000, unless in time of war, and required taxes to be laid to maintain interest on such debt (bonds).
The debts of Spain were further increased in 1891 by a consolidation of Io,ooo,000 of floating debt turned into 4% redeemable stock similar to that of 1882; and this did not prevent a fresh growth of floating debts out of annual deficits averaging two to three millions sterling during the last quarter of the 19th century.
Between 1885 and r9o~ the revenue of Spain varied from 30,000,000 to 40,000,000 and the expenditure was approximately equal; deficits were commomi towards the beginning of this period, surpluses towards the end For an analysis of the budget the \ear 1008 may be taken as typical mriasnuch as trade had then resumed it~ normal condition, aftem the disturbing influence of tariff revision in 1906 and the failure of many crops in 1907.
Deficits were made good by grants made from Portugal and by transfers from the treasuries of such Portuguese colonies as showed an excess of revenue.
Deficits appeared, which had to be covered temporarily by new loans, and which forced the government to establish monopolies on salt, tobacco, matches, mineral oils, &c. Every such step increased the unpopularity of the government and strengthened the opposition.