PORTUGAL. 



2,112,229 milreis of extraordinary expenditure, 

 leaving a deficit of 2,600,832 milreis. For 1902 

 the revenue was estimated at 53,269,000 milreis, 

 and expenditure at 55,239,000 milreis. 



The public debt in 1900 consisted of 41,727,171 

 of external 3-per-cent. consolidated bonds, 1,- 

 818,914 of 4-per-cent., and 12,779,780 of 41-per- 

 cent, redeemable external bonds, 8,773,000 of the 

 4^-per-cent. tobacco loan, and 87,894,879 of 3- 

 per-cent. internal bonds, making the total debt 

 outstanding 152,993,744, not including 6,148,- 

 820 of 4- and 4-i-per-cent. bonds of other classes 

 and the floating debt, which amounted to 44,653,- 

 414 milreis on Jan. 1, 1900. 



The Army and Navy. The military law of 

 Sept. 7, 1899, divides continental Portugal into 

 four military districts and the islands into two 

 commands. The army is organized into 27 regi- 

 ments of infantry, 4 regiments of chasseurs, 8 regi- 

 ments of cavalry, 4 regiments of field-artillery, 

 2 batteries of horse-artillery, 2 batteries of moun- 

 tain-artillery, 2 regiments of garrison-artillery, 

 and 1 regiment of engineers. The active army on 

 the peace footing consists of 1,723 officers and 29,- 

 703 men, with 5,404 horses and mules, and 144 

 guns. There are besides 81 officers and 297 men 

 of the reserve troops in active service, and 80 

 officers and 2,176 men of the municipal guards, 

 and 136 officers and 5,619 men of the fiscal guard 

 that are incorporated with the army in case of 

 war. The war strength of the active army is 

 2,029 officers and 82,843 men, with 10,736 horses 

 and mules and 216 guns; and the strength of the 

 reserves is 1,447 officers and 62,796 men, with 5,113 

 horses and mules and 46 guns, making the total 

 war effective 3,476 officers and 145,639 men, with 

 15,849 horses and mules and 312 guns. 



The Portuguese navy consists of 1 armor-clad, 

 5 protected cruisers of from 1,800 to 4,100 tons, 

 2 new and 4 old cruisers, 16 gunboats, 10 river gun- 

 boats, and 15 fifst-class and 30 small torpedo- 

 boats. By the aid of a national defense associa- 

 tion the cruiser Adamaster, of 1,933 tons, has 

 been built at Leghorn and the Rainha Amelia, of 

 1,660 tons, at Lisbon. The Sao Gabriel and Sao 

 Raphael, of 1,800 tons, were launched at Havre 

 in 1898. The Don Carlos I, of 4,100 tons, launched 

 at Elswick in 1899, has a 4-inch deck, carries 4 

 6-inch, 8 4.7-inch, 12 3-pounder, and 6 smaller 

 quick-firers, and can steam 22 knots. The old 

 ironclad Vasco da Gama, of 2,420 tons, is being 

 reconstructed and armed with 4 8-inch quick- 

 firing guns. 



Commerce and Production. Wine is the 

 chief product of the country, and next comes cork. 

 Olive-oil is produced in large quantities. Pine- 

 apples and figs are the principal fruits, and 

 oranges next. Tomatoes, onions, and potatoes are 

 raised for export. Cotton goods are manufac- 

 tured and exported to the African colonies. There 

 are mines of copper, sulfur, lead, coal, arsenic, 

 tin, and other ores and minerals. Salt, gypsum, 

 lime, and marble are exported. The total value 

 of special imports in 1899, including precious 

 metals, was 51,522,882 milreis; of exports, 30,052,- 

 225 milreis. The imports of live animals were 

 1,844,727 milreis in value, and the exports 2,647,- 

 739 milreis; imports of raw materials for manufac- 

 tures were 21,348,630 milreis, and the exports 

 4,931,685 milreis; imports of textile manufactures 

 were 6,252,598 milreis, and exports 2,858,755 mil- 

 reis; imports of articles of food were 14,095,102 

 milreis, and exports 16,338,816 milreis; imports of 

 machinery were 3,504,889 milreis, and exports 

 141,061 milreis; imports of miscellaneous manu- 

 factures were 3,476.188 milreis, and exports 1,922.- 

 892 milreis; the value of packing in imports was 



102,606 milreis; the imports of coin and bullion 

 were 898,142 milreis, and exports 1,216,277 milreis. 

 The larger imports in the special trade were wheat 

 of the value of 4,216,996 milreis; raw cotton, 3,486,- 

 001 milreis; coal, 3,213,990 milreis; cotton goods 

 and yarn, 2,615,846 milreis; iron, 2,470,418 mil- 

 reis; corn, 2,172,301 milreis; sugar, 2,109,776 mil- 

 reis; codfish, 1,931,589 milreis; wool, 1,661,337 

 milreis; leather and skins, 1,071,565 milreis; 

 woolen goods and yarn, 1,059,626 milreis; cattle, 

 783,428 milreis; coffee, 570,909 milreis. The lead- 

 ing exports of domestic products were wine of 

 the value of 10,913,689 milreis; cork, 3,040,556 mil- 

 reis; cotton manufactures, 2,504,996 milreis; cop- 

 per ore, 957,142 milreis; sardines, 956,549 milreis; 

 horses, asses, and mules, 854,644 milreis; olive-oil, 

 552,870 milreis; cattle, 355,579 milreis; eggs, 319,- 

 965 milreis; almonds, 264,431 milreis; pineapples, 

 243,260 milreis; figs, 232,853 milreis; onions, 169,- 

 341 milreis; tunny, 135,681 milreis. The exports of 

 wine consisted of 51,846,870 liters of ordinary wine, 

 765,590 liters of liqueur wine, 2,510,500 liters of 

 Madeira, and 27,916,800 liters of port. The ordi- 

 nary wine is exported to Brazil and to Portuguese 

 colonies, the heavier wines mainly to Great Brit- 

 ain, of whose total imports of wine in 1899 the 

 wines of Portugal constituted 22.8 per cent, of the 

 quantity and 20.9 per cent, of the value. 



Navigation. The number of vessels in the 

 foreign trade entered at the ports of Portugal, 

 Madeira, and the Azores during 1899 was 5,663, 

 of 8,552,744 tons; cleared, 5,640, of 8,575,971 tons. 

 Of the vessels entered 3,865, of 5,917,374 tons, had 

 cargoes; of those cleared, 4,367, of 6,649,172 tons. 

 The number of vessels entered coastwise during 

 1899 was 4,149, of 1,226,394 tons; cleared, 4,037, 

 of 1,136,611 tons. 



Political Affairs. The financial question out- 

 weighs all others in Portugal. Although a 

 gradual improvement is observable in the devel- 

 opment of commerce and navigation and the gen- 

 eral well-being of the nation, in the traffic of sea- 

 ports and railroads, in the importance and values 

 of the industries, still in the budget there is an 

 excess of expenditure over revenue year after year, 

 and in 1901 more than in previous years, aug- 

 menting the floating debt, while the burden of the 

 rate of exchange was heavier than before, and 

 the circulation of paper money had reached the 

 limit. In the speech from the throne at the open- 

 ing of the Cortes on Jan. 2 the public authorities 

 were warned not to enter into engagements or au- 

 thorize expenditure which the resources of the 

 treasury could not meet. To obtain the largest 

 possible amount from the public taxes it was 

 necessary to simplify the methods of procedure 

 in their collection. It was necessary to profit by 

 and utilize the increase in the productive forces 

 of the country, to protect and to promote indi- 

 vidual initiative in the carrying out of agricul- 

 tural development, industrial undertakings, and 

 commercial operations, and so to organize ad- 

 ministration that it should be economical and 

 efficient. The Government was unable to present 

 a budget in which revenue and expenditures bal- 

 anced, and left it for the future to reveal a remedy. 



The French creditors of Portugal asked for the 

 intervention of their Government to protect their 

 interests. The French Government, protesting 

 that the financial measures taken by Portugal were 

 in conflict with all established principles, and that 

 the creditors had been robbed of a part of the 

 revenues assigned to them for the payment of the 

 debt, made strong representations to the Portu- 

 guese Government, and proposed a convention, to 

 which the Portuguese Government would not 

 agree. This attitude of Portugal made a bad im- 



