The following is the peace strength (1904) of the regular army :

The army is provided with 2,421 mules and 356 guns. The Civil Guard consists of about 900 officers and 19,000 men; the Carabineers of 660 officers and 14,000 men. On a war footing the number of men is about 214,000. There are in Spain 13 military schools and colleges.

III. NAVY.

In the war with the United States complete disaster overtook the Spanish fleet. In the battle of Cavite, May 1, 1898, the following vessels of Admiral Montojo's squadron were lost to Spain, mostly by fire: Reina_Cristina, Castilla, Antonio de Ulloa, Juan de Austria, Isla de Cuba, Isla de Luzon and Velasco, with the transport Mindanao. The Juan, Cuba, and Luzon have since been floated (and were found not to have been hit), and added to the United States Navy. In the battle of Santiago, July 3, the fine armoured cruisers Maria Teresa, Oquendo and Vizcaya (sisters of 7,000 tons), and the Cristobol Colon (6,840 tons), bought from the Italians, were lost. The first-named was floated by the Americans, but foundered on her way to a United States port. The Colon, undamaged, was sunk by her crew. same engagement the destroyers Furor and Pluton perished. In addition the gunboats Delgado Parayo and Centenella were burned at Manzanillo, on July 20, and the Jorge Juan was sunk in Nipe Bay, N. E. Cuba, on July 21. Some small vessels have returned from Cuba, but a number of the Cuban gunboats have fallen into the hands of the Americans. The following statement of strength excludes training ships, transports, and non-effective vessels::

In the

Completed: 1 ship Rate 3, 1 of Rate 4, 3 of Rate 5, 1 of Rate 6, 1 of Rate 7. There are 6 destroyers, 7 torpedo gunboats of doubtful efficiency, and no modern torpedo boats. Building: 2 cruisers of Rate 5 and 2 of Rate 7. Of these, the first (Pelayo) dates from 1887. She is of 9,000 tons, and carries 2 12 6-in., 2 11-in., 9 5 5-in. and some smaller pieces. She is a copy of the French Marceau. The rate 4 ship (Emperador Carlos V.), launched 1895, carries 2 11-inch and 8 5.5-inch guns. She is a protected cruiser of 9,200 tons, designed for 20 knots. The ships of Rate 5 (Cardenal Cisneros,

Cataluña and Princesa de Asturias) carry 2 9.4-in. and 8 5.5 in. They are belted ships, copies of the lost Viscaya. The other vessels have little serious value.

Production and Industry.

Of the soil of Spain 79 65 is classed as productive; of this 33 8 per cent. is devoted to agriculture and gardens, 37 vineyards, 16 olive culture, 19.7 natural grass, 20.8 fruits.

The soil is subdivided among a very large number of proprietors. Of 3,426,083 recorded assessments to the property tax, there are 624,920 properties which pay from 1 to 10 reales; 511,666 from 10 to 20 reales; 642,377 from 20 to 40 reales; 788,184 from 40 to 100 reales; 416,546 from 100 to 200 reales; 165,202 from 200 to 500 reales; while the rest, to the number of 279,188, are larger estates, charged from 500 to 10,000 reales and upwards. The subdivision of the soil is partly the work of recent years, for in 1800 the number of farms amounted only to 677,520, in the hands of 273,760 proprietors and 403,760 farmers.

The area under the principal crops and the yield were as follows in 1901 and 1902:

In 1902, 1,384,140 hectares under vines yielded 12,183,728 hectolitres of wine, and 1,271,593 hectares under olives yielded 2,265,091 hectolitres of oil. In 1903 the yield of wine amounted to 14,849,700 hectolitres. Other products are esparto, flax, hemp, pulse; oranges and hazel nuts are largely exported, and Spain has important industries connected with the preparation of wine and fruits. Silk culture is carried on in Valencia, Murcia and other provinces; the yield of cocoons in 1900 amounted to 1,050,000 kilos. ; in 1901, to 995,000 kilos.

The number of farm animals in 1901 was estimated as follows:-Horses, 397,172; mules and asses, 1,521,842; cattle, 2,217,659; sheep, 13,359, 473; goats, 2,534,219; pigs, 1,927,864.

Spain is rich in minerals. Iron is abundant in the provinces of Vizcaya, Santander, Oviedo, Huelva, and Seville; coal is found in Oviedo, Leon, Valencia, and Cordoba; zinc in Santander, Guipuzcoa, and Vizcaya; cobalt in Oviedo; lead in Murcia, Jaen, and Almeria; quicksilver in Cindad Real ; silver in Guadalajara; sulphate of soda in Burgos; salt in Guadalajara ; sulphur in Murcia and Almeria; phosphorus in Caceres and Huelva.

In 1903 the workmen employed at 2,905 mines numbered 94,351. The

output of crude minerals was valued at 179,958,042 pesetas. The quantities and values (in thousands of pesetas) of the more important minerals in 1903 were as follows:

In 1903, 146 metallurgical works with 22,488 workpeople turned out metal products (iron, steel, copper, lead, zinc, silver, quicksilver, &c.) to the value of 197,436,690 pesetas, or nearly 6,000,0002.

Spain has considerable manufactures of cotton goods, employing about 68,300 looms, with 2,614,500 spindles; in woollen manufactures there are 8,800 looms with 662,000 spindles. In 1900-01 the silk industry (mostly French) produced about 700,000 kilograms of raw material. There are in Spain about 144 paper mills (mostly in Catalonia) making writing, printing, packing and cigarette paper. There are 34 glass-making factories. Corks are manu

factured to the extent of about 30,000 tons annually. In 1901 there were 69 sugar works, 47 for beet and 22 for cane sugar; in 1900 the out-put of sugar amounted to 93,067 tons (cane 33,217, beet 59,629, sorghum 221); in 1901, out-put 86,243 tons (cane 27,645, beet 58,489, sorghum 109).

In the Spanish fisheries the total number of boats employed is about 14,700; fishermen, 67,000; and the value caught annually about 38,000,000 pesetas. The most important catches are those of sardines, tunny fish, and cod. In Spain there are 400 factories, with 16,500 workmen, for the preparation of sardines. The value of their output is about 15,000,000 pesetas annually.

Commerce.

The total imports and exports of Spain (including the precious metals) were as follows in six years (about 334 pesetas

=

£1):

The following table shows the various classes of imports and exports for 1902 and 1903

The special articles of import in 1903 comprised railway material and machinery, 25,365,625 pesetas, and tobacco and cigars, 21,477,060 pesetas.

The exports of wine amounted in 1902 to 38,741,136 pesetas; in 1903 to 49,121,279 pesetas. Of the value in 1903, 48,141,849 pesetas was for common wine; 107,510 pesetas for sherry; 871,920 pesetas for full-bodied wine. Of the common wine the value of 27,501,978 pesetas went to France; half of the full-bodied wine went to America.

The following table shows the distribution of the commerce of Spain (general and special imports, and general exports) in 1902 and 1903, in pesetas :

The import duties levied in Spain in 1902 amounted to 169,951,621 pesetas; in 1903, to 180,145,722 pesetas. Import duties are levied on goods of every class. The duties are, in general, high. On yarns and thread of cotton they range from 408. 8d. to 101s. 9d.; of linen, from 188. 3d. to 488.; of wool, from 1018. 7d. to 1978. 2d. per cwt.; of silk, from 1d. to 21 d. per lb. On woven goods of cotton they are from 1218. 11d. to 813s. 1d.; of wool, from 1628. 7d. to 3658. 11d. per cwt., with additional duty for embroidered goods. On iron and steel goods the duties range from 93d. for pig iron, to 1218. 11d. per cwt. for steel pens, needles, &c. But on locomotives, rails and other specified railway materials the duties are much reduced when these articles are imported by railway companies. The duty on coal imports is 28. per ton. The importation of tobacco is prohibited.

There is no formal treaty providing for "most favoured nation treatment" between Great Britain and Spain, but, under an Act passed by the Spanish Cortes in 1894, imports from the United Kingdom into Spain are subject to the minimum tariff, and British merchants have all the advantages conceded to those of any European State, except Portugal. Under notes exchanged in December, 1894, there is an understanding that commercial relations between the two countries will continue on this basis, subject to six months' notice on either side.

The commercial intercourse between Spain and the United Kingdom is shown in the following table from the Board of Trade Returns :—

The quantities and value of wine imported into the United Kingdom from Spain were as follows in each of the last five years :—

Besides wine, the following were the leading imports from Spain into the United Kingdom in the last two years :

The chief British exports to Spain in 1903 were linen yarn and linens, of the value of 130,3147.; iron, wrought and unwrought, 354.5727.; coal, 1,294,2657.; machinery, 481,0137.; cotton goods, 255,8967.; woollen goods, 166,5517.; wool, 201,0067.; new ships and boats, 56,3667.