$86 85

4, 269 51

$511 00

This falling off is to be attributed to the stagnation in trade during the last quarter of 1880 and the first quarter of 1881, caused by fluctuations in the price of gold.

COMMERCIAL AND NAVIGATION TREATIES.

A new treaty of commerce between Italy and France was concluded at Paris on November 3, 1881. The Italian Parliament is now awaiting its approval by the French Senate, it having already been accepted by the French Chamber. It may be observed that a treaty of commerce between Italy and France has been in force since 1863; that notice of its expiration was given in 1875, and that another one was concluded and approved by the Italian Parliament in 1879, but rejected by the French Parliament. In the mean time the customs system in force between the two countries is a sort of modus vivendi, consisting of the application of the favored-nation clause. On the part of Italy this consists in applying to merchandise imported from France the privileges given to Austria-Hungary by reason of the treaty of December 27, 1878, and on the part of France in conceding to merchandise imported from Italy the favors granted to England, Belgium, Spain, Portugal, Sweden and Norway, and Switzerland by force of existing treaties. This modus vivendi was to terminate on the 8th of February, 1882, but will be continued while awaiting action on the new treaty. In the treaty now under consideration Italy will gain considerable advantage over the preceding tariff on her shipments to France of wines, marble, spun linen, and hemp, and on her numerous agricultural products. On the side of France the advantages on her shipments to Italy are especially on woolen fabrics, wines, leather, jewelry, and various manufactured articles. There is some opposition in Italy to the ratification of this treaty, coming chiefly from manufacturers of textile fabrics. The treaty is drawn for a period of ten years; that is, from February 9, 1882, to February, 1892. Italy, however, has reserved the right of releasing herself from it at the end of the fifth year; that is, in February, 1887, in case existing treaties with other nations should not be renewed. As before stated, a parliamentary commission of inquiry into the condition of the mercantile marine is to make its report some two months from the present time. The government is now awaiting its recommendations; after receiving and considering them it will be prepared to negotiate a new treaty of navigation with France, which a clause in the pending commercial treaty requires shall be entered into before January 1, 1883.

RAILROADS.

Two hundred and thirty-one and one-fourth miles of railroad were opened in 1880, making the total length of the lines 5,374 miles at the end of that year. The greater part are owned and worked by the gov

ernment.

Returns of railroads in 1880 show some increase in the amount and importance of their business; 32,491,827 passengers were carried, 2,086,480 more than in 1879; 555,000 tons of fast freight, increase 117,000 tons, and 9,329,073 tons of slow freight, increase 957,367 tons. The total receipts of the railroads in 1880 were $34,760,616, and their total running expenses $23,596,732. At the same time the total amount of capital invested in railroads was $505,040,394, of which $44,074,389 represented rolling stock.

POST-OFFICE.

From year to year the importance of the business done by the postoffice has steadily increased. In 1880, 359,161,024 letters, postal cards, publications, packages, &c., were carried, a gain of 15,348,355 over 1879. The number of letters was 143,483,771; 131,689,368 were prepaid, 4,940,754 not prepaid, 6,825,597 registered, and 28,052 insured for $4,889,807, or $709,618 more than in 1877. There were 22,359,173 postal cards sold, increase over 1879 of 2,469,709 in number; printed matter, 155,218,754 pieces, or 11,489,156 more than in 1879. The value of postal money orders issued was $93,394,930, and those cashed $93,510,024; thus $186,904,945 represent the total of operations in this branch of the post-office business, which exceeded that done in 1879 by $6,094,683. Telegraphic postal money orders were: 182,897 issued, representing $8,492,683, and 182,795 cashed for $8,490,855; in 1879 there were 176,620 issued for $8,207,660, and 175,838 cashed for $8,095,130.

At the end of 1880 the post-office savings banks had $8,211,266 in small savings standing to the credit of depositors, or $3,864,975 more than at the end of 1879. The post-office receipts in 1880 were $5,442,011 against $5,212,120 in 1879; the working expenses were $4,702,303 against $4,567,388 in 1879.

TELEGRAPHS.

In 1880 the telegraph service opened 363 miles of new lines and put up 1,020 miles of new wires, making the total length of lines 16,321 miles, and the total length of wires 53,583 miles. The total number of offices was 2,578, of which 98 were opened during the year; number of persons engaged in this service, 5,097; 109 were employés in the administrative department, 3,012 operators, 1,292 porters and messengers, and 684 guards and hands along the lines. During the same year the number of telegrams compared with 1879 was:

The total receipts of the telegraphs in 1880 were $1,734,358, an increase of $169,103 over 1879. Their working expenses were $1,397,388, leaving a net profit of $336,970 for the government. In 1879 the government realized a profit of $228,342 from this service.

FINANCES.

Paper currency.-On the 30th of November, 1881, Italy had a paper currency in circulation representing an aggregate value of $321,023,004; $181,420,000 of this sum were issued by the government, and $139,603,004 by six banks, the whole being legal tender.

Loans. With the view of resuming specie payments, the government was authorized by law of April 7, 1881, to procure, not later than the year 1882, by means of loans on other credit operations, $124,292,000, of which at least $77,200,000 in gold and the remainder in silver; $8,492,000 to serve for the payment of a gold loan contracted with the National Italian Bank in June, 1875, and $115,800,000 for the withdrawal from circulation of a corresponding sum in government paper currency. This done there would remain in circulation $65,620,000 of government paper

money, but it would be payable at sight in coin to the bearer only at the central treasury in Rome, and at the provincial treasuries of Bari, Bologna, Cagliari, Florence, Genoa, Leghorn, Messina, Milan, Naples, Palermo, Turin, and Venice. This $65,620,000 of paper currency would be exclusively of notes of the denomination of five lire ($0.963) and ten lire ($1.83). This loan of $124,292,000 was effected by the minister of finance in June, 1881, with the National Italian Bank, acting for three syndicates of different nationalities; the English for Messrs. Baring Brothers, Ambo & Co., the French for the Bank of Discount of Paris, and the Italian headed by the Credit Mobilier; $47,092,000, of the loan were taken by the Italian syndicate, and $38,600,000 each by the two others. According to the terms of the contract, $85,692,000 are to be in gold and $38,600,000 in silver.

Installments began in July 1881, and the whole is to be paid up by the end of September, 1882.

To meet this loan the government has issued bonds for the capital sum of $140,840,785, at 5 per cent., less the government income tax of 13 per cent. Up to this time the syndicates have offered for subscription a little less than one-half of the whole loan, say $67,550,000, reserving subscriptions for the remaining $73,290,785 for a later date. The subscriptions were received only at London. At the end of 1881 the government had received from the syndicates $40,492,975, of which $33,583,994 were in gold and $6,908,981 in silver. The whole has been distributed among the treasuries of Turin, Milan, Venice, Genoa, Florence, and Naples, and the central treasury of the capital, where $10,229,000 were deposited.

National debt.-On the 31st of December, 1881, the Italian permanent debt amounted to $1,840,304,406.39, bearing an annual interest of $90,734,791.41. No statement of the floating debt is at hand. The items of the permanent debt on the above date were given as follows:

I. Consolidated 5 per cent II. Consolidated 3 per cent

III. Unregistered bonds.

IV. Five per cent. bonds set apart for the Holy See

V. Miscellaneous debts, consisting of debts of Sardinia, Tuscany,
Lombardy, Modena, Parma, Rome, railway loans, &c..
Total

Revenue. The budget for 1881 estimated the revenue of the kingdom for that year at $262,165,489, and the expenses of the government at $257,551,022, anticipating a surplus of $4,614,467. The aggregate of the items of revenue were stated as follows:

Public service (railroads, posts, and telegraphs)

Reimbursements of advances made to local governments.

Miscellaneous receipts

Extraordinary revenue:

Actual receipts from miscellaneous sources

Public works, property and material acquired by the government..

Railway property acquired by the government.

Total

$6,294, 195

71,911, 176

31,750, 430

87,498,433

14.398.2-2

19, 280, 425 3,504, 776 1,407,693

1,539,806

8,858,948

15,721,325

262, 165, 489