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In the ordinary revenue there is a surplus of 128,816,742 lire, and in the extraordinary revenue a deficit of 109,957,630 lire; giving a net surplus of 18,859,112 lire.

Public Debt.

The following table shows the interest (including premiums) and sinking fund of the Public Debt for the year 1903-04 :

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The capital of the consolidated and redeemable debt amounted to 12,621,413,320 lire on July 1, 1903, or 504,856,5007. sterling

and the interest to 577,971,989 lire, or 23,118,900l. sterling. The value per head of the special exports (exclusive of the precious metals) in 1903 was 17. 16s. 6d. The debt per head of population was 157. 4s. 1d., and the interest 13s. 10d.

II. LOCAL FINANCE.

The total revenue of the communes of Italy in 1899 amounted, according to official reports, to 642,009,148 lire; the revenue of the provinces amounted to 131,676,329. The debts of the communes in 1900 (December 31) amounted to 1,237,404,838 lire; of the provinces, to 172,700,557 lire.

III. PUBLIC PROPERTY.

On June 30, 1903, the property of the State was as follows:

Financial assets (Treasury)

Property, immovable, movable, loans, deposits and

various titles

Property of industrial nature.

Material in use in army and navy

Property used in the service of the State

Scientific and artistic material

Total.

:

Estimated Value.

Lire

888,171,433

496,319,744

1,374,597,907

1,480,571,559

452,629,270

225,231,933

4,917,521,846

In the financial year 1902-1903 the revenue from State property was :-Railways, 93,370,417 lire; ecclesiastical, 1,144,075 lire; from fixed capital, 6,963,051 lire; from the Cavour Canals, 3,029,591 lire; various, 1,791,283 lire; total, 106,298,417.

Defence.
I. FRONTIER.

The extent of the land frontier of Italy is as follows:-French frontier 487 kilometres; Swiss 672; Austro-Hungarian 779; frontier of San Marino 392; in all (exclusive of San Marino) 1,938 kilometres. The coast line of the peninsula measures 3,383 kilometres; of Sicily, 1,115; of Sardinia, 1,336; of Elbe and the small islands, 1,042; the total length of coast is thus 6,876 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, Piacenza,

Verona, Mantua (these two belong to the old Austrian Quadrilateral), Venice, Alessandria. On the coasts and islands are the following fortified places :-Vado, Genoa, Spezia, Monte Argentaro, Gaeta; works in the Straits of Messina, Táranto. On the north Sardinia is defended by the fortifications in the Island of Maddalena. Rome is surrounded by walls, and is protected by a circle of forts.

II. ARMY.

The army of Italy, in virtue of the law of June 28, 1897, consists of the permanent army, the mobile militia, and the territorial militia. Personal military service is obligatory on all citizens fit to bear arms from the completion of their twentieth year to December 31st, after the completion of their thirty-ninth year. The annual levies are enrolled in three categories. Those who (as decided by lot, or ordinary volunteers) belong to the first category serve as follows:-In the permanent army the carabineers, five years under arms and four years with unlimited leave; in the territorial militia carabineers serve ten years with unlimited leave; other corps (cavalry included), in the permanent army, two or three

years under arms and five to seven years with unlimited leave; in the mobile militia four or three years; and in the territorial militia seven years. Those of the second category remain eight or nine years in the permanent army with unlimited leave, four or three years in the mobile militia and seven years in the territorial militia. Those who belong to the third category join neither the permanent army nor the mobile militia, but serve their nineteen years in the territorial militia with unlimited leave. The men of the second category are called to arms for training for a period varying from two to six months, which may be divided over one or more years. Those of the third category have thirty days' training; in time of war they (in common with all other soldiers who have passed to the territorial militia after having formed part of the permanent army or mobile militia) have garrison duty and form the last reserve. In the levy of 1902, the number of recruits examined was 394,767. Of these, 108,825 were put back; 91,176 were unfit to serve; 101,804 were assigned to the first category; 10 to the second; and 92,952 to the third. Youths who have received a certain degree of instruction are allowed to serve as one-year volunteers on payment of a sum fixed annually but never exceeding 2,000 lire for cavalry, or 1,500 lire for others. They may fulfil their period of service at any time after their seventeenth up to their twenty-sixth year. They belong to the first category. Noncommissioned officers engage to serve three years, except those of the carabineers and some special services (musicians and others) who engage for five years; by continuing their service for twelve years they have a right to government employment; and after twenty years service they are entitled to a pension. Officers are chiefly drawn from the military institutes.

The army consists of twelve army corps as follows:-I. Turin, II. Alexandria, III. Milan, IV. Genoa, V. Verona, VI. Bologna, VII. Ancona, VIII. Florence, IX. Rome, X. Naples, XI. Bari, XII. Palermo. Each army corps contains two divisions (except that of Rome, which contains three), and each division comprises from two to seven military districts, of which there are in all eighty-eight.

1. The Permanent Army consists of the general staff; corps of staff;

Carabineers:-11 territorial legions, 1 legion of recruits consisting of companies (the number of which may vary according to requirements), of a squadron of mounted carabineers and of 1 depôt.

Infantry 96 regiments of the line and 12 regiments of bersaglieri, each regiment of 1 staff of regiment, 3 battalions of 4 companies, and 1 depôt ; 7 regiments of Alpine troops divided into 7 staffs of regiment, 22 battalions, in 75 companies, and 7 depôts; disciplinary establishments: 6 companies, 2 houses of correction, and 1 military prison.

Cavalry :—24 regiments (10 of lancers and 14 of light horse) of 1 staff of regiment, 6 squadrons and 1 depôt ; 4 depôts for remounts.

Artillery:-24 regiments of field artillery, each of 1 staff of regiment and 3 brigades of batteries, 1 or 2 companies of train, and 1 depôt; 1 regiment of horse artillery, of 1 staff of regiment, 3 mounted brigades (6 batteries), 1 brigade of train (4 companies) and 1 depôt; 1 regiment of mountain artillery of 1 staff of regiment, 4 brigades (12 batteries), 1 depôt, also an autonomous brigade of mountain artillery of 3 batteries and 1 depôt ; 3 regiments of coast and 3 of fortress artillery, each of 1 regimental staff and 1 depôt (in all 25 brigades, 78 companies); 5 companies of artillery mechanics.

Engineers:-5 engineer regiments, consisting of 5 staff of regiment, 21 brigades, 60 companies of engineers, 10 companies of train, and depôts, besides an independent brigade of 6 companies of railway engineers, to be distributed by the war office amongst the various regiments according to requirements.

Officers of the fortresses. Sanitary corps, 12 companies. Commissariat, 12 offices of commissariat; Veterinary corps; Administrative corps, comprising 12 companies army service-corps. Invalids and veterans, 2 companies.

To the permanent army belong also the military schools, the supreme tribunal of war and marine, the artillery and engineering establishments, the commissariat establishment, the central military magazines, the central military dispensary.

2. The Mobile Militia consists of infantry :-51 regiments of the line of 3 battalions of 4 companies; 20 battalions of bersaglieri of 4 companies; 38 companies of Alpine troops.

Cavalry 31 squadrons of cavalry.

Artillery-63 batteries of field artillery; 15 batteries of mountain artillery; 78 companies of coast and fortress artillery; 24 companies of train (artillery).

Engineers-54 companies of engineers, 4 companies of train (engineers). Sanitary, commissariat, accountant and veterinary services.

3. The Territorial Militia consists of 324 battalions of infantry of 4 companies; 22 battalions of Alpine troops with 75 companies; 100 companies of fortress artillery; 30 companies of engineers; sanitary, commissariat, accountant, and veterinary services.

The complementary officers and troops are intended to complete and maintain at their full numbers the army and mobile militia corps in war time. These troops consist of the men of the classes of the second category not yet enrolled in the territorial militia, and of those of the first category who are in excess of the requirements of the organised force.

The total number of officers in the permansnt army in 1904 was 13,640; the number on leave, in the mobile and territorial militia, and in the auxiliary and reserve forces in 1902 was 22,443. The number of non-commissioned officers and men in the permanent army in 1904, and on leave, in the mobile militia and in the territorial militia in 1902 were as follows :

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The special African corps on June 1, 1904, was composed as follows :— a comando of the royal troops, 1 company of carabineers, 3 companies of chasseurs, 4 battalions of infantry (native), 1 squadron of cavalry (native), 1 local comando of artillery and sections of artificers, 1 company of gunners, 1 native battery, train service, engineering, sanitary, veterinary, victualling and equipment services, 1 coast company, 1 military tribunal. The force contained in all 4,673 men, of whom 3,858 were natives. There are also

483 irregular troops.

The Italian army is provided with the repeating rifle (the Italian system) and sword bayonet.

III. NAVY.

The naval administration, under the Minister of Marine, is thus organised. An assistant secretary; an admiral as chief of the staff; a superior council composed of three vice-admirals or rear-admirals, the general of the genio navale (naval architect), the major-geueral of engineers' corps, and a civil official; a medical inspector at the head of the sanitary service; a majorgeneral of the genio navale (naval architect); at the head of a section having charge of the engineering works of the naval stations; a general paymaster directing the sections of account. An admiral is chief of a special department administering matters concerning the personnel, a major-general of the genio navale of that dealing with naval construction, and an admiral of that devoted to ordnance and equipment. A civil official administers the department of the merchant marine, which is under the direction of the assistant secretary for the navy. For purposes of local naval administration and defence the Italian littoral is divided into three prefectures: 1, Spezia ; 2, Naples; 3, Venice. By a royal decree of August 14, 1893, the vessels of the Italian fleet have been apportioned, for administrative purposes, between the three prefectures and Taranto. There are torpedo stations all round the Italian coasts, the head stations being at Spezia, Maddalena, Gaeta, Messina, Taranto, Genoa, Ancona, and Venice.

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