ARMY AND NAVY. 4O3
into Passive Stock, that is, a stock not bearing interest, and which was to be liquidated by an annual sinking fund. The law closed the London market, and subsequently that of Paris, against Spanish loans, and in order to raise the interdict, the Minister of Finance introduced, in June 18G7, a bill in the Cortes which was adopted, providing for the gradual redemption of the Passive Debt, the sum of 120,000/. being set aside for the purpose in the budget of 1867— 'IS. A commission, composed of three senators and three deputies, was also appointed by the Cortes to watch and report upon all the opera- tions connected with the public debt.
Army and JTavy.
The army of Spain was re-organised in 1868, after the model of that of France. Under the new military law, which came partly into operation in August 1868, the armed forces of the kingdom consist of — 1. A permanent army ; 2. A first or active reserve ; 3. A second or sedentary reserve. The permanent army consists of the force which, in accordance with the terms of the Constitution of 1869, may be annually fixed by the Cortes. All Spaniards past the age of 20 are liable to be drawn for the j^ermanent army, in which they have to serve four years. The first or active reserve is composed of all young men who, without reckoning four years of active service, shall have exceeded the number of years fixed by law for the permanent force. The position of these persons will be that of soldiers upon six months' furlough without any pay. The second reserve consists of all those men who, proceeding from the re- cruits, shall have had four years' effective service, only excepting those who at their own request or for the convenience of the service may be allowed to remain on the active list. It is arranged that until the new organisation shall have come into full effect, and in order to preserve a proper proportion between the active army and the re- serve, the government may anticipate the period of passing into the second reserve, even before the completion of the four years of active service, in the case of any number who, between the permanent army and the first reserve, may exceed 100,000 men. Every soldier will be liberated after having served eight years either in the active
- or in the reserve army. The total strength of these armed forces
is to consist of 200,000 men.
For military purposes the kingdom is divided into five districts, or ' capitanias generales,' at the head of each of which stands a I captain-general,' with the rank of field-marshal. Official returns of the year 1868 state the actual strength of the army, including the ' provinciales ' or provincial militia, and the ' guardia civil ' or national guard, as follows : —
