He decided in favour of Spain, but gave Germany free trading rights; and in 1899 Germany took over the administration of the islands from Spain, paying 25,000,000 pesetas (nearly £1,000,000 sterling).
In December 1906, after long discussion, the contribution of the Basque Provinces to the state, according to the law of the 21st of July 1876, was fixed for the next twenty years; for the first ten years at 8,500,000 pesetas, for the next ten an additional 500,000 pesetas, from 31st December 1916 to 31st December 1926, the province of Guipuzcoa paying in addition 700,000 pesetas to the treasury.
According to its par value 25-225 pesetas are about equal to Li, but the actual value of the peseta is about 74d.
The senate is composed of members of three classes: (I) members by right of birth or officeprinces, nobles who possess an annual income of 60,000 pesetas (L2,400), and hold the rank of grandee (grande), a dignity conferred by the king either for life or as an hereditary honor, captains-general of the army, admirals of the navy, the patriarch of the Indies, archbishops, cardinals, the presidents of the council of state or of the Supreme Court, and other high officials, all of whom must have retained their appointments for two years; (2) members nominated by the sovereign for life; and (3) members elected three each by the 49 provinces of the kingdom, and the remainder by academies, universities, dioceses and state corporations.
The interest on all colonial debts ceased to be paid in gold, and was paid only in pesetas, like the rest of the internal debts, and like the external debt held by Spaniards.