Population, 813,991. Madrid is the chief city of the interior and is the capital of Spain. Over half a million people live here, but the city is unlike the large cities of central and western Europe, because manufacturing is not an important occupation. The capital has become the chief railroad center, although it is difficult, on account of the deep canyons, for railroads to be constructed over the top of the Meseta. Madrid has a magnificent royal palace and a wonderful art gallery. In many respects it is an exceedingly interesting and attractive city, but the surrounding country is an arid waste.