FINANCE IN SPAIN

Evening Post, Issue 12, 14 July 1936, Page 18

FINANCE IN SPAIN

A WARNING ISSUED

A warning about Spain's financial situation was issued by Senor Juan Ventosa, a former Finance Minister, addressing an audience of business men recently, says the "Daily Telegraph." He pointed out that the problem of finance was seriously threatening the country once more.

Revenue from taxation had increased, he said; since 1931 from £100,000,000 to £145,000,000 a year No special expenses had been met in the Budget, and neither army nor navy had been the object of.any reformed plans. Yet Spain's total deficit had increased until it now stood at £70,000,000.

This was not a very formidable figure considering that Spain has practically no foreign loans to repay, but she was experiencing considerable drops in the revenue from Customs duties.

Restrictions on exchange transactions were having a serious effect on Spain's credit It was impossible for some industries to purchase raw materials, yet the Bank of Spain coffers were replete with gold. It was impossible to raise foreign loans.

Senor Ventosa considered that the treaty arrangements with Great Britain and France had been damaging to Spain's interest. He condemned the splitting up of private property in land and the policy affecting the relations between the State and the railway companies.

"Nobody knows where we stand," he said In the last few years investors in railway shares had lost half their money by depreciation.

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