*The figures marked thus have been modified in the budget estimates according to the Imperial Decree of March 6 (19), 1904. The reduction introduced in the branches of expenditure amounted to 115,498,336 roubles.

The receipts (ordinary and extraordinary) in 1903 thus amounted to 2,202,708,141 roubles; the balance of ordinary revenue from previous years

was 25,550,276 roubles, and from extraordinary revenue 7,072,228 roubles, bringing the total up to 2,235,330,645 roubles, which shows a surplus of 127,461,829 roubles over the total expenditure for the year.

On January 1, 1904, the total national debt was 707,851,9307. (6,636,111,841 roubles). The growth of this debt is seen from the following:

The Russian State Debt, on January 1, 1904, was composed as follows:

The payments of interest and capital for the State and railway debts in the budget estimates for 1904 and 1905 appear as follows:

The sums stated in the 3rd and 6th columns are those stated in the 2nd and 5th, reduced by outlay according to previous estimates.

To 352 4 millions of the ready cash on January 1, 1904, must be added 148.3 millions of reductions in the budget estimates for 1903 and 1904, and 432 millions produced by the 5 per cent. Obligations and the Treasury bonds emitted according to the Decrees of April and August, 1904; to meet 1958 millions necessary for extraordinary expenditure in 1904, and 19.5 millions of ordinary expenditure not foreseeen in the budget estimates of 1904. The balance of 717 4 millions thus left has been partly spent on military operations during the year 1904. The ready cash on January 1, 1905, is not given in the Report of the Minister of Finance on the budget for 1905.

The liabilities to the State Treasury amounted, on January 1, 1903, to 2,803,395,073 roubles. These liabilities consist of military contributions, railway debts, redemption operations, advances of Treasury, debt of Nobility, Bank, &c.

II. LOCAL FINANCE.

The annual receipts and expenditure of 34 provincial assemblies (zemstvos) were as follows in 1901 and 1902 :

The actual receipts and expenditure of 16 Governments or Provinces of European Russia not represented in the zemstvos, and other parts of the Russian Empire (exclusive of Poland) in 1900 were as follows :

The actual receipts and expenditure of the Russian towns in 1900 were as follows:

Russia has an extensive frontier both by sea and land, protected by numerous fortifications of various classes. On the west, Poland is defended by a system of four strongholds, sometimes called the Polish Quadrilateral-Novogeorgievsk on the right bank of the Vistula; Warsaw and Ivangorod each on both sides of the Vistula; Brest-Litovsk on the Bug. There are numerous other fortified places, mostly neglected, on the Vistula and Bug.

The more important fortresses and forts are divided into three classes as follows :-In the first class are Warsaw, NovoGeorgievsk, and Brest-Litovsk in the Warsaw district, and Kovna in the Vilna district. The second class consists of Kronstadt and Sveaborg in the St. Petersburg and Finland district; Ivangorod in the Warsaw district; Kerch in the Odessa

district; Libau in the Vilna district; and Vladivostok in the Amur district. In the third class are Viborg in the Finland district; Ossovets and Ust-Dvinsk (previously Dünamünd) in the Vilna district; Sevastopol and Ochakov in the Odessa district; and Kars and Batum in the Caucasus district. There are also fortysix places unclassed, many of them being mere fortified posts. The most important are:-Zegrz, in the government of Lomza (Poland); Dvinsk and Kiev (fortress of Pechersk); St. Petersburg (fortress of Sts. Peter and Paul); Alexandropol in the Caucasus district; Kushk in the Transcaspian province.

II. ARMY.

Since January 13, 1874, military service has been rendered obligatory for all men from their 21st year. With the modifications introduced in that law on October 30, 1876, and June 26, 1888, military service is organised as follows:-Out of about 870,000 young men reaching every year their 21st year, about 290,000 (1903) are taken into the active army and fleet, and the remainder are inscribed in the reserve 6 or Opolchenie." The period of service is, in European Russia, five years in the active army (in reality reduced by furloughs to 4 years), 13 years in the Zapas,' and 5 years in the Opolchenie' (to 43 years of age); 7 years in active army and 6 years in the 'Zapas' in the Asiatic dominions; and 3 years in the active army and 15 years in the Zapas' in Caucasia. In case of need the Minister of War has the right of keeping the men for another six months under the colours. Certain privileges are granted on account of education, and clergymen are exempt, as also doctors and teachers.

The 'Opolchenie,' formerly a simple militia, was reorganised in 1888 and 1891 (April 27th), and the duration of the service prolonged to 43 years instead of 40, for the soldiers, and from 50 to 55 for the officers. It is divided into two parts. The first part (pervyi razryad) has the character of reserve troops, and includes all those who have passed through active service, as also those who have not been taken into the active army, though able-bodied. It is intended chiefly to complete the active troops in time of war, and enables Russia to call out, in case of need, 19 classes of drilled conscripts. 'Cadres' having been formed in the 'Opolchenie,' the men called out in case of war will find ready battalions, squadrons, &c., wherein to enter, and these parts will be provided with artillery. Drilling of some parts of the militia has been introduced. The second part, or vtoroi razryad (including all able-bodied men who have served in the first division, as also those liberated from service as not fully able-bodied, or being single workers in their families), can be

1 In the Zayas' are inscribed only those who have passed through active service.