NOTES AND MEMORANDA 395 by a drain on the mother country caused by ill-administered colonies. As to the corruption, residents in Portugal assert it to be a common practice to evade taxes by bribing the collectors. As to the mischief brought about by eager financiers, the accumulation of funded debt is sufficient proof. Every few years it was found that 'floating' debt had increased, the taxes and other revenues being always insufficient, to cover Budget expenditure, and loans had been resorted to as pra?ice, for the aid of the ordinary Budgets. In 1873 8? millions (nominal par value) were issued in the shape of 3 per cents.; in 1877 Messrs. Baring Bros. & Co. brought out a new loan of 6? mill. lons nominal, also in 3 per cents., in order to' consolidate the floating debt.' In 1878 Messrs. Stern Bros. issued the unallotted balance of this loan, which had been but partly successful. In 1879, 5 per cents. to the amount of 1? millions, were issued. In 1880, a huge 3 per cent. loan for 8? millions was offered on leading European stock markets. In 1884, 3 per cents. were issued to the amount of over 10? millions; in 1886 an issue was made of not far short of 3 millions in 5 per cent. bonds; and quite recently Portugal attempted to issue 10 millions further on the security of the Tobacco Monopoly, handed over to a farming syndicate; but this issue has obviously failed, apart from what was taken up in France. Down came the whole house of cards, and although a fresh Portuguese loan has been possible, in the shape of an advance by French bankers on the unsold tobacco bonds, grave doubt is felt of the ability of the Government to meet future coupons. Before quitting the subject of debt accumulations by Portugal, let us see what good she has done herself by so continually heaping up liabilities. The external trade of the country has increased, it is true. In 1879 the combined imports and exports were 13,170,000; in 1888 the total was 17,570,000. The length of railways open in 1882 was 920 miles; in 1886 the total had grown to 949 miles, and subsequently a little more; but single-track lines for trucks drawn by cattle are included, and the whole would not account for much more than five millions of debt. In the main, it is apparent, the money supplied by the capitalists of Europe has been used to pay interest on old debts, a surplus trickling into the pockets of financiers and corrupt officials. Portugal has been in the position of a spendthrift, who, by pledging all resources and keeping up a show of liberality on borrowed money which ought to have been applied to reproductive purposes made fair- weather friends. Like a spendthrift in adversity she has none, or next to none, left. On the Stock Exchange, where truths are expressed more bluntly than elsewhere, it is considered right when a country has lost its financial friends, to ' hit it when it is down.' Just as every experienced speculator sold Bears of Argentine securities when the props previously afforded by Messrs. Baring and other large financial houses gave way; so Portugal is regarded as fair prey. If the Bears were certain which they are not that strong French credit estab-
