Revenue and Expenditure.

The principal sources of revenue and branches of expenditure were set down as follows in the budget estimates for the year 1885.

The above were the figures of the ordinary and special budgets for 1885. The extraordinary budget amounted to 8,324,8721., composed of estimates, 3,400,000l. for war, 714,8481. for marine and colonies, and 4,210,0247. for public works. In introducing this budget the minister stated that it was one of the heaviest charges on French finances, which ought to be reduced considerably each year, as has been done in the budgets of 1884 and 1885; hitherto the expenses have been met by loans. There was still a fourth budget attached 'pour ordre' to the general budget, and showing an expenditure for special services (the mint, the national printing office, legion of honour, marine invalides, and state railways) of 4,011,2251.; so that the total expenditure to be provided for in 1885 was estimated at 153,067,7457., or at the rate of 41. per head of population. The budget can only be regarded an approximative estimate, as the Chambers have not yet (January, 1885) voted it. The total direct taxes in the ordinary and special budgets amount to 16s. 9d. per head. About onethird of the direct taxation is borne by land, one-seventh by buildings, one-seventh is levied on personal property, and the remainder on doors, windows, and licences.

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The following is a statement of revenue and expenditure for the ten years, from 1875 to 1884:

Years

1875. 1876. 1877.

1878.

1879

1880.

1881.

1882.

1883.

1884.

3,027,395,725 | 121,095,829

3,347,810,957 133,912,438 3,322,621,929❘ 132,964,877 3,364,577,723 134,583,108

3,427,422,827 137,096,913
3,490,342,388 139,613,695
3,530,823,284 141,232,931
3,689,409,797 147,576,391 3,582,416,373 143,296,655
3,654,263,289 146,170,531 3,684,677,369 147,387,094
3,668,353,016 146,734,120

3,714,478,125 148,579,125 3,385,409,496 135,416,379

The figures for 1875-81 are those of the sums actually received and expended, and include ordinary and extraordinary income and expenditure; the years 1882 and 1883 are provisional, and 1884 gives the revised ordinary and extraordinary budget estimates.

The sources of revenue at the disposal of the Government of France have been constantly increasing for the last fifty years, more especially the revenue derived from direct taxation. It is accounted for by the constantly increasing wealth of the French people, owing to their extreme frugality, thrift, and industry.

The enormously increased expenditure of recent years, compared

with 1869, due principally to the augmented public debt, and, to a less extent, to cost of the army (see p. 74), was covered chiefly by the imposition of new indirect taxes. Foremost in the list of these were greatly raised customs duties, and stamps, and taxes on sugar, wines, salt, and transport by railway.

Since 1869 the budgets have nearly doubled. To the budget of 1885 is prefixed a statement, showing the deficits of the budgets from before 1814 down to 1881, as follows:—

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Almost uninterruptedly, so as to make it the rule and not the exception, the budgets voted by the representatives of the nation have shown a small surplus, while the 'compte définitif,' published a number of years afterwards, has exhibited a large deficit.

The continued deficits from 1814 to the end of 1869 were covered by loans, inscribed in the 'Grand livre de la dette publique,' dating from the year 1793, when a general consolidation was made of all the debts, annuities, and other Government obligations, which were converted into a perpetual five per cent. 'rente,' entailing an annual charge of 174 millions of francs, or 6,960,000l. The dividends were not, however, paid at first, except in assignats, or paper of a fictitious value, and six years later the Government was forced to compound with its creditors. The debt had become reduced by confiscation of property of the 'émigrés' to 120 millions of francs of rente,' which was reduced by a fresh conversion to 40 millions, the public being reimbursed the remaining two-thirds in bonds exchangeable for the confiscated lands of the church and the nobles. Thus at the commencement of the 19th century the annual charge of the National Debt of France was only about 1,600,000l., or less than one-tenth of that of Great Britain. The extension of the French debt made little progress under Napoleon I., and from 1800 to 1814, a period of fourteen years of almost continuous war, the annual charge increased but from 40 millions of francs to 63 millions, and of the 23 millions added to the yearly charge, 10 millions represented 'rente' created to repay debts left by the Government

of the Directory to its successor. After the fall of the Empire the expenses of the Government were greatly enhanced. The Restoration increased the annual charge of the debt between 1814 and 1830 from 63 millions to 199 millions of francs, but that period had to bear the penalty of the doings of the former Governments, and the loans issued by it were required to pay the war indemnity of 700 millions, the indemnity of 1,000 millions paid to the ' émigrés' for their confiscated property, and the burden of the occupation of a foreign army of 150,000 men. During the Orleans dynasty (1830-48) 45 million francs rente were added to the annual charge of the debt; but during the Second Republic (February 1848 to January 1853) a decrease of over 24 millions rente was effected, partly by conversion. The capital of the debt in January 1854 is estimated at over 223 millions sterling. During the Second Empire (1854-70) the annual charge was increased by 118,818,000 francs, though if floating liabilities be included the increase was considerably greater. During the FrancoGerman war and the Third Republic the French debt has grown enormously, the result being as shown in the following table.

The total consolidated debt alone of France, according to the budget of 1885, amounted, by capitalising the rente or interest, to 19,652,924,230 francs, or 786,116,9697., the interest or 'rente' on which was 706,116,867 francs, or 28,244,674l. The following table shows the nominal capital of each of the four descriptions of rente ' and the interest, or amount of rente,' according to the budget for 1885

In July 1883 the 5 per cent. rente was converted into 4 per cent. rente, thus reducing the amount of rente payable by about 25 million francs.

Besides the consolidated there are various other categories of debt, the capital of which it would be difficult to calculate. In the budget of 1885 the expenses of the Redeemable Capital (including the floating debt, 1,095,733,100 francs on January 1, 1884) are set down at 404,588,451 francs, or 16,183,5387., and of Annuities and

Life Interests at 166,401,735 francs, or 6,656,0697. The total amount of the obligations of short period is stated to be 346,764,930 francs. Thus, if the total liabilities of France were capitalised they would amount to something like 1,000 millions sterling, or about 261. 108. per head of population. In the Redeemable Capital is included a sum of 258 million francs as interest and sinking fund for the Extraordinary Budget, and 28,100,000 for interest on the floating debt, which it was decided in 1882 to consolidate by a loan of 1,200 million francs at 3 per cent. By January 1, 1884, the floating debt had been consolidated to the amount of 1,085,992,641 francs. The Irredeemable Consolidated Debt alone in 1884 amounted to about 217. per head of population, and the interest to 15s. per head. The exports of French produce in 1883 amounted to 31. 15s. per head. From the results of an official investigation published in 1883 the value of the landed property of France is 3,535,104,0007, and if the value of the buildings be added the total would probably be about 5,300,000,0007., or about 1407. per head. The rental of landed property is 100,000,0007. The total national income from all sources for 1883 has been unofficially estimated at 940,000,000, equal to about the capital of the entire debt.

The national debt in recent years has been steadily undergoing the process of complete subdivision among the population of France. In 1850 the number of 'rente' holders of the Consolidated Debt alone numbered 846,000; in 1860, 1,073,300; in 1870, 1,254,000; in 1880, 4,000,000; and in 1883 nearly 4,100,000.

All the communes and departments of France have their own budgets and debts, which latter were largely increased by the war. The last official statement issued, referring to 1883, gives the total communal receipts as 476,709,325 francs, and the total departmental receipts as 118,431,763. The total communal debts for 1877 amounted to 2,645 million francs, or over 105 millions sterling.

The city of Paris has its own budget. In the budget for 1884 the revenue and expenditure were made to balance at 261,905,009 francs, or 10,476,2007., and in that of 1885 at 261,316,282 francs, or 10,452,6517. The principal source of revenue in the budget of the city of Paris is from tolls upon articles of general consumption, called droits d'octroi,' estimated to produce 143,230,600 francs, or 5,729,2247., in 1885. The principal branch of expenditure is for interest and sinking fund of the municipal debt, which, in the budget of 1885, amounted to 98,204,903 francs, or 3,928,196l.

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