In the ordinary revenue there is a surplus of 41,573,427 lire, and in the extraordinary a deficit of 98,082,505 lire; giving a net deficit of 56,509,078 lire.

Public Debt.

The following table shows the interest (including premiums) and sinking fund of the Public Debt on July 1, 1889 :—

The capital of the consolidated and redeemable debt amounted to 11,240,936,860 lire on July 1, 1889, or about 450,000,000 sterling.

The burden of the debt per head of population is 157., and of the interest 148. The value per head of the special exports in 1888 was under 238.

II. LOCAL FINANCE.

The total revenue of the communes of Italy in 1885 amounted, according to official reports, to 561,798,719 lire, and the revenue of the provinces amounted to 120,501,720 lire. The debts of the communes in 1885 (De cember 31) amounted to 883,133,756 lire; of the provinces in 1884 (Decem. ber 31) to 152,263,505 lire.

III. PUBLIC PROPERTY.

On June 30, 1888, the property of the State was as follows:

In the financial year 1887-88 the revenue from State property was :Railways, 65,291,441 lire; ecclesiastical, 4,999,816 lire; various, 13,070,732 lire; total, 83,361,989.

Defence.
I. FRONTIER.

The extent of the land frontier of Italy is as follows:-French frontier 495 kilometres; Swiss 655; Austro-Hungarian 750; frontier of San Marino 38.5; in all (exclusive of San Marino) 1,900 kilometres. The coast line of the peninsula measures 3,657 kilometres; of Sicily, 1,098; of Sardinia, 1,017; of Elba and the small islands, 1,013; the total length of coast is thus 6,785 kilometres.

On the Continental frontier of Italy the principal passes of the Alps are defended by fortifications distributed according to a plan decided on in 1874, and at present in process of execution. The basin of the Po is also studded with fortified places, though some of the old fortresses have been either abandoned or declassed, while others are being constructed. The chief strong places in the region are the following:-Casale, Placentia, Cremona, Peschiera, Verona, Mantua, Legnago (these four form the old Austrian Quadrilateral), Pavia, Boara, Venice, Alessandria,

Bologna. On the coasts and islands are the following fortified places-Ventimiglia, Vado, Genoa, Spezia, Elba, Mont-Argentaro, Civitavecchia, Gaeta, Baja, and Castellamare in the Gulf of Naples; works in the Straits of Messina; various places in Sicily; Tarentum; Brindisi, Ancona, the mouth of the Adige; Brindolo and Chioggia. On the north Sardinia is defended by the fortifications in the Island of St. Madeleine, and on the south by those of Cagliari. Rome is surrounded by walls, and is being protected by a circle of forts.

II. ARMY.

Universal liability to arms forms the basis of the military organisation of Italy. A certain portion of all the young men who have completed their twentieth year, amounting to about 200,000, is levied annually, 82,000 of whom are drafted into the standing army, while the rest are entered in a second and third category.

According to the law of August 6, 1888, the time of service in the standing army for the first category of recruits is five years in the infantry, four years in the cavalry, and three years in the other arms. Having completed their service under arms, the men of the first category are granted unlimited leave, but are enrolled in the permanent army, the infantry for four years, the cavalry five years, when they are both transferred to the territorial militia. The men belonging to the other arms are enrolled in the permanent army for five or six years, when they are transferred to the mobile militia, in which they complete twelve years of service before being transferred to the territorial militia. Those of the second category are entered in the permanent army for eight years, and the mobile militia for four years, when they form part of the territorial militia. The men of the third category are entered at once in the territorial militia, but are given unlimited leave. The total period of service is 19 years. As in the German army, young men of superior education are permitted under certain conditions to serve as one-year volunteers. The different arms of the Italian army have the following organisation according to the law of June 23, 1887 :

1. Permanent Army.

The main army is composed of :-Infantry: 96 regiments of the line and 12 regiments of bersaglieri, each regiment of 3 battalions of 4 companies and 1 depôt; 7 regiments of Alpine troops divided into 22 battalions, in 75 companies; 87 military districts with 98 companies.

Cavalry-24 regiments of 6 squadrons and 1 depôt; 6 depôts for re

mounts.