The liabilities of the fund (**capitalized**) amounted to 10,668,105, of which monastic pensions represented a rapidly diminishing sum of 2,564,930.

The crown paid the landlord in obligations representing the **capitalized** rent, and the peasants had to pay the crown, for forty-nine years, 6% interest on this capital.

Under the budgetary heading " Public Debt " is included, as it should be, all expenditure in connexion not only with the public debt proper, but also with advances from banks and others, railway guarantees, an account of which will also be found below, and all **capitalized** liabilities, as far as known, contracted by the state.

The kilometric guarantee of 15,500 francs (£620) was split into two parts, 4500 francs (£180) being granted as the fixed working expenses of the line, all receipts in excess of which amount were to be credited to the Turkish government in reduction of the remaining 11,000 francs (f440) which took the form of an annuity to be **capitalized** as a 4% state loan redeemable in 99 years, that being the period fixed for the duration of the concession.

But the Bagdad Railway Company' (the share capital of which is £600,000 half paid up), naturally anxious to earn the whole of the **capitalized** subvention, completed the construction of the entire 200 kilometres.

The line was **capitalized** at $46,000,000 and has paid a good profit on the investment.

Since there are 8760 hours in a year, if such an instrument were connected continuously to the circuit it would take up energy equal to 263,000 watt-hours, or 260 Board of Trade units per annum, If the cost of production of this energy was only one penny per unit, the working expenses of keeping such a voltmeter in connexion with a circuit would therefore be more than £i per annum, representing a **capitalized** value of, say, £io.

This arrangement represents a potential economy of some £2,000,000 capital for Hungary as compared with the original Austrian demand that the Hungarian contribution to the service of the old Austrian debt be **capitalized** at 4.2%.