FRANCE. 



365 



tax on mortmain property, etc. The indirect 

 internal taxes include excise duties on drink 

 (425,753,000 francs), domestic salt (12,166,000 

 francs), and sugar (101,757.400 francs), matches 

 (16,065,000 francs), paper (15,895,000 francs), 

 etc., the produce of sales of tobacco (137,450,- 

 000 francs), and powder (14,914,000 francs), a 

 tax of 20 per cent, on tickets for railroad ex- 

 press-trains, etc. The estimated amount of 

 taxes collected in Algeria is 30,279,353 francs. 



In 1793 all the debts, annuities, and other 

 liabilities of the Government were funded in 

 5 per cent, perpetual rentes which required 

 the annual payment of 174 million francs. The 

 consolidated debt was reduced by repudiation 

 and repayments out of the confiscated prop- 

 erty of the church and nobility until at the 

 beginning of the nineteenth century the annual 

 charge was 40 millions. At the fall of the 

 empire the interest charge was 63 millions. 

 From the Restoration in 1814 to the Revolution 

 of July in 1830, 165 million francs of new rente 

 were added, representing the indemnity of 

 1,000 millions paid to the confiscated nobles, 

 the war ransom of 700 millions, and the cost 

 of the occupation, while reductions equal to 

 the former annual interest were effected by 

 amortization and conversion, leaving the rente 

 charge 165 millions. During the same period 

 the current accounts of the Government showed 

 an average annual deficit of 1,268,000 francs; 

 under Louis Philippe (1830-'48) the average 

 deficit was 55,437,000 francs ; under the second 

 republic (1848-'51) it was 89,844,000 francs; 

 under the third empire (1852-'69) it was 123,- 

 807,000 francs. 



On the 1st of January, 1882. the amount of 

 the public debt was 24,002,75l',531 francs, and 

 the rente charge 872,543,575 francs. 



The state of the debt in 1883 was as follows : 



The charges on account of the public debt 

 and other obligations of the Government are 

 given in the budget for 1884 as follow : 



PUBLIC DEBT EXPENDITURES. Francs. Francs. 



Kentes at 5 per cent and 4J per cent. 376,766,501 

 Rentes at 4 per cent, and 3 per cent. . 363,143,781 



Total interest on consolidated debt 



Payments of interest and principal 

 from the budget of extraordinary 

 resources 240,000.000 



For the conversion of the Morgan loan. 17,399,000 



Interest on floating debt of the Treas- 

 ury 28,100.000 



Annuities to railroads 48,731,5'Jl 



Repayments for war damages, con- 

 tributions, etc., to communes, mu- 

 nicipalities, etc 28,183,500 



Other charges 14,756,750 



Total payments on redeemable 



886,589,751 



PUBLIC DEBT EXPENDITURES. Frana. Freno.. 



Brought forward 1,126,491,088 



Annuity rentes 26,707,283 



Military pensions 84,500,000 



Civil pensions 56.800,000 



Various pension and other charges. . . 24,215,000 



Total transient liabilities 191 ,722,288 



Total 1,818,222,266 



French rentes were held in comparatively 

 few hands until under the third empire they 

 began to be distributed among the people. In 

 1870 the number of holders was 1,254,040, the 

 annual rente amounting to 358 million francs. 

 In 1881, when the interest was about 852 mill- 

 ions, the number of holders was 4,617,900. 



The long- deferred conversion of the 5 per 

 cent, rentes was finally resolved upon in 1883, 

 in view of the emergency in which the Gov- 

 ernment found itself with increasing expendi- 

 tures and a failing revenue. The French Gov- 

 ernment had postponed the operation, though 

 it would save many millions annually, from a 

 reluctance to curtail the income of the bond- 

 holders, who form so large a part of the popu- 

 lation. The scheme of exchanging 3 per cent, 

 bonds for the 5 per cents, at an equivalent 

 capitalized value was proposed for the sake of 

 permanence and uniformity, as part of a scheme 

 to convert the whole debt into 3 per cent, 

 rentes; but, as it would preclude all future 

 reductions in the interest charge and increase 

 the nominal amount of the debt two milliards, 

 the Government naturally preferred to effect 

 about the same annual saving of 35 millions, 

 with the prospect of future reductions of over 

 100 millions per annum more, by 'exchanging 

 4 per cent, stock at or near par for the 5 per 

 cents., pledging itself against a further conver- 

 sion within five years. 



Paris and the other municipalities have debts 

 which were greatly increased by the war. The 

 budget of the city of Paris for 1880 estimates 

 the revenue at 233,622,125 francs, derived 

 principally from the octroi tolls, which were 

 estimated at 128,713,600 francs. The largest 

 item of expenditure is the interest and sinking 

 fund of the municipal debt. The capital amount 

 in 1880 was 2,295,000,000 francs. 



Prince Bonaparte's Manifesto. In Gambetta 

 the republic lost perhaps the only man who 

 possessed the political strength and prestige to 

 lead it through a crisis. He himself, by the 

 adventurous foreign policy and the idea of per- 

 sonal rule which he represented, had done not 

 a little to unsettle the public mind, and to re- 

 awaken a desire for the strong governing hand 

 to which France had formerly been accus- 

 tomed. His programme, although it had cost 

 him the premiership, had restored him to the 

 position which he held after'the national de- 

 fense as the champion on whom the republic 

 must rely in the hour of its need. He assumed 

 this position .more distinctly in his later ap- 

 peals. The monarchical parties echoed the de- 

 mand for a strong and stable government, and 

 when Gambetta died they prepared to renew 



