The deficits of 1885 and 1886, added to an extraordinary expenditure for mobilisation of the army of 75 millions, gave a total sum of 120 million drachmai as the addition to the State debt in the years 1885 and 1886. These deficits compel the Government again to resort to a forced paper currency, which had only recently been abolished. The budgets of 1887 and 1888 were made to balance by a loan of 135 million drachmai, secured on the produce of the monopolies of salt, petroleum, matches, &c., by the aid of which also other debts bearing from 7 to 9 per cent. interest have been paid off.

The total amount of Greek indebtedness in June 1889 was 623,883,288 drachmai. Of this sum rather less than 9,000,000 drachmai are for small outstanding internal indebtedness. The bulk of the indebtedness is shown in the following table :

There is an annual sinking fund of 147,000 drachmai in connection with the 1881 loan, and of 1,239,000 in connection with the 1884 loan. Several loans at heavy rates of interest were paid off by the consolidation scheme carried out in 1889, by which the 4% rentes were created. It is anticipated that the 1881 and 1884 loans will be converted to 4 % rentes very shortly. The consolidation of the debt has resulted in a large decrease in the annual charge for interest.

This does not include the Greek portion of the Ottoman public debt, and the sum to be paid to the Ottoman Government as indemnity for property acquired by the cession of Thessaly.

The loan of 1862 was guaranteed by England, France, and Russia upon the elevation of the present King of Greece to the throne. The guarantee is not by the Powers jointly, but is distinct in each case for a third of the loan. By the terms of a convention signed in 1866, it is arranged that the Government of Greece should pay to the three guaranteeing Powers not less than 36,000l. a year-British portion 12,0007.; and by the Act 27 & 28 Vict. c. 40, passed in 1864, a sum of 4,000l. sterling a year, out of the amount thus repayable in respect of the British portion, was relinquished in favour of the present King.

Defence.

I. ARMY.

There is universal liability to service on all able-bodied males aged 21 years and upwards. The total service is for 19 years, of which 2 years (with considerable terms of leave) must be passed with the colours, 8 and 7 years in the reserve, and the remainder in the militia or Landwehr. The nominal strength of the army was reported as follows in the budget estimates for the year 1889:

* Including the civilians employed in the War Office.

The estimates for 1889 reckoned 3,724 horses and mules, and 120 guns. By the terms of a law passed by the Boulé in the session of 1887, the numerical strength of the army on the peace footing was fixed at 24,076 men, comprising 16,136 infantry, 4,877 cavalry, and 3,063 artillerymen and engineers. On the war footing, the strength could be mobilised to 100,000 men. The reserve forces alone give a total of 104,500 men, and behind these is what is called the territorial army, numbering 146,000 men.

II. NAVY.

The navy consisted, at the end of 1889, of two small armour-clads, the Basileus Georgios (1,770 tons), carrying two 10-ton Krupp guns in a battery on the upper deck and four 20-pounders, speed 12 knots; and a wood-built vessel, the Basilissa Olga (2,060 tons), carrying four 6-ton and two 5-ton guns, speed 10 knots. One steel armour-clad, the Hydra, was launched in 1889; it is 6,000 tons, but is yet quite unfinished; another similar vessel is stated to be building in France. There are 28 small torpedo boats and launches, and 2 Nordenfeldt submarine torpedo boats. Of unprotected vessels there are 2 corvettes (1,300 and 1,800 tons), 2 cruisers (1,000 tons each, launched 1884-85); 12 gun-vessels (6 built 188184, the rest old); 4 gunboats (1880); 3 revenue vessels (1884); an old steel yacht, an iron transport, and 17 miscellaneous craft. The budget for 1889 fixes the strength of the navy at 2,945 officers and men, but the actual number for 1890 was 3,361. The navy is manned partly by conscription from the people of the sea-coast and partly by enlistment. In 1887 the period of service was made two years instead of one.

Production and Industry.

Greece is mainly an agricultural country, and the existing manufactures are few and unimportant.

A British Embassy Report of 1885 gives the following division of the soil of Greece, including the recently added territories:

While there are a few large proprietors in Greece, the land is to a large extent in the hands of peasant proprietors. On the whole, agriculture is in a backward state. The province detached from Turkey in 1881 is, however, of unusual fertility. The average production of cereals for the whole of Greece is-wheat, 7,000,000 bushels; barley, 3,000,000 bushels; rye, 825,000 bushels; for the old provinces 2,700,000 bushels of maize; mezlin, 1,380,000 bushels. The most favoured and best cultivated crop is the currant, which covers vast districts: the yield for 1886-87 was estimated at 270 million lbs. ; olives yield about 760,000 bushels yearly, and vineyards about 4,000,000 bushels of grapes; other 12,000,000. lbs. of tobacco and 30,000,000 lbs. of cotton are produced.

According to the latest official returns, there are 108,361 horses, 164,000 cattle, 50,123 mules, and 106,208 asses in Greece. In contrast to these numbers, there were 3,464,954 sheep and 2,510,970 goats, the latter roaming about in a half-wild state, described as causing much destruction.

Iron ore is found in some of the Cyclades and in the Ionian Islands, but its working is undeveloped. In recent years the lead mines of Laurium have been worked and are estimated to have yielded during the twelve years 1877-88 over 1,200,000 tons of material for treatment. Of this quantity 643,000 tons have been treated at the mine, and 570,000 tons, producing 22,000 tons of lead, have been treated elsewhere. Zinc is also found in considerable quantities.

Commerce.

The staple article of export from Greece to Great Britain is currants, the value of which, in the year 1888, amounted to 1,320,8897. Other articles of export are olive oil, of the value of 15,7897. in 1888; lead, of the value of 73,5617. in 1884, and 185,5917. in 1888; silver ore, of the value of 69,3584; zinc, of the value of 31,765l.; sponges, 92,3167.; and dye and tanning stuffs, 40,7787. in 1888. Of the imports from the United Kingdom into Greece, about one-half are manufactured cotton goods and yarns, their value in the year 1888 being 487,5581. There were also imported woollen manufactures valued at 97,5917.; coals, valued at 105,3777., and iron to the value of 55,3037. in 1888.

The total value of the general commerce of Greece in 1887 was:Imports, 144,721,806 drachmai; and exports, 109,390,642 drachmai. In 1888 the figures were-imports, 124,388,595 drachmai; exports, 103,142,901

drachmai. The special commerce for 1887 and 1888 was as follows with the leading countries :--

The following table shows the principal classes of special imports and exports and their values:

The principal article of export is currants, valued at 52,388,569 drachmai.

TT

in 1888. The value of the lead exported in the same year was 7,640,490 drachmai; of olive oil, 2,296,982 drachmai; of wines, 4,414,871 drachmai. The trade of Greece with the United Kingdom was, in the five years 1884 to 1888, according to the Board of Trade Returns, as follows:

1884

£

£

£

£

Exports from Greece 2,015,277 1,912,804 1,545,798 1,888,400 1,888,444 Imports of British produce

1,188,704 873,678 984,591 989,217 948,004

For details see first paragraph under Commerce, p. 640.

Navigation and Shipping.

Of

The merchant navy of Greece numbered 83 steamers, of 31,541 tons, and 5,074 sailing vessels, of an aggregate burthen of 227,305 tons at the end of 1887. The total number of vessels that entered Greek ports in 1888 was 5,979 of 2,373,073 tons, and cleared 5,462 of 2,420,530 tons. the vessels entered, 2,524 of 332,122 tons were Greek; 582 of 465,155 tons were British. Of the total 5,347 of 1,552,844 tons entered, and 4,984 of 1,530,060 tons cleared the port of Piraeus. A considerable amount of the carrying trade of the Black Sea and the Eastern ports of the Mediterranean is under the Greek flag.

Internal Communications.

Recently the internal communication by roads has greatly improved; there are now (1889) about 2,000 miles of roads. In May 1882 the construction of a canal across the Isthmus of Corinth, about 4 miles, was begun; it is estimated to cost a million sterling; and more than threequarters of the work (1889) is now completed.

Railways were opened in 1889 for a length of 364 miles, while 237 miles were under construction, and 433 miles were projected.

The telegraphic lines, land and submarine, were of a total length of 4,362 English miles, at the end of 1888; length of wire, 5,062 miles. The number of offices was 169. They despatched 678,511 inland telegrams, and 258,127 international, in the year 1888. Receipts (1888), 1,130,160 drachmai; expenses, 992,320 drachmai.

Of post offices there existed 249 at the end of 1887, and there passed through the post in that year 5,992,098 letters, besides 179,033 post-cards, 6,602,269 samples, journals, and printed matter. The receipts were 1,052,176 drachmai; expenses, 1,237,239 drachmai. The total number of letters, post-cards, samples, newspapers, &c., which passed through the Post Office in 1888 was 14,319,864, of which 8,961,319 were internal and 5,358,545 international.

Money, Weights, and Measures.

The money, weights, and measures of Greece, and their English equivalents, are:

MONEY.

Greece entered in 1868 the Monetary League of the Continent. The Ionian Bank at Corfu and the Thessalian Bank at Larissa have the right to circulate their own notes in their respective provinces.