THE NATIONAL GEOGRAPHIC MAGAZINE 



150 



Photograph from Alice Rohe 



A CITY SET UPON A HIGH HILL : THE CAPITAL OF THE WORLD'S SMALLEST NATION 



and Europe's oldest state 



The peasant women of San Marino follow their peaceful pursuits, while all about their 

 miniature Republic sounds the clamor and the clangor of a world in the throes of war 



low that the Republic does not have to 

 face the serious problems of other coun- 

 tries. This is due to the fact that the 

 government has no complex and expen- 

 sive State organization to maintain. 



A palace with a garden the size of a 

 city block is taxed 1 1 francs a year, while 

 a home consisting of six large rooms, 

 cellar, and garret pays the astounding an- 

 nual tax of one lira 70 centimes (about 

 34 cents). 



As for income, tobacco and salt, which 

 San Marino receives at cost from the 

 Italian Government, with an annual com- 

 pensation of 300,000 lire for the sup- 

 pression of custom duties, are the only 

 sources of revenue. San Marino sells its 

 salt and tobacco much cheaper than does 

 Italy, and its revenue from these two 

 articles is 200,000 lire a year. There is 

 also an agreement between Italy and San 

 Marino that the latter shall not produce 

 certain articles. 



The relations between the Italian Gov- 

 ernment and the Republic are not those 

 of a protectorate by any means, as San 

 Marino, so proud of its autonomy, re- 

 frains from an accord which could give 

 rise to that term. From its early life 

 politically, however, San Marino has al- 

 ways had a stronger protecting friend — 

 first the dukes of Urbmo and later the 

 Papal power. Today, the big friend is 

 Italy, and the relations are described in 

 the convention of 1894 as "Rapports of 

 friendship and of good neighbors be- 

 tween Italy and the Republic." Further : 



"The Republic, having the firm convic- 

 tion that the protecting friendship of His 

 Majesty the King of Italy for the con- 

 servation of its most ancient liberty and 

 independence will never become less, de- 

 clares that it will not accept that of any 

 other Power." 



All the other articles demonstrate the 



