Excepting the in creases of deficit in 1868 and 1870, the annual deficits tended thence forward to decrease, until in 1875 equilibrium between expendituri and revenue was attained, and was maintained until 1881.
From 1885-1886 onwards, outlay on public works, military and colonial expenditure, and especially the commercial and financial crises, contributed to produce annual deficits; but owing to drastic reforms introduced in 1894-1895 and to careful management the year 1898-1899 marked a return of surpluses (nearly 1,306,400).
During the same period the assumption of the Venetian and Roman debts, losses on the issue of loans and the accumulation of annual deficits, had caused public indebtedness to rise from 92,000,000 to 328,000,000, no less than f 100,000,000 of the latter sum having been sacrificed in premiums and commissions to bankers and underwriters of loans.
Deficits are made good by grants from the imperial treasury.
Now and then it has been dealt with piecemeal, when some particular class of creditors has become too pressing, but it is more than probable that the piece got rid of has been more or less rapidly replaced by fresh liabilities occasioned by budgetary deficits, or by the mere accumulation of interest on debts allowed to run on.
In each of the years 1903-1909 the expenditure exceeded the revenue (about $70,000 in 1909-1910), deficits being made good by grants from the British parliament.
These deficits were common enough under the monarchy, but they have become still more prominent under the republic. According to the " Retrospecto Commercial " for 1906 of the Jornal do Commercio (Rio de Janeiro, March 5, 1907), the aggregate deficits for the eleven years 1891 to 1904 were 692,000,000 milreis, or, say, £43,250,000.
Large deficits in the financial budgets of the state resulted, involving increased taxation and the contracting of loans from foreign countries.
For the next four years there were deficits, but in1908-1909a surplus was realized, the revenue being £3,569,275 and the expenditure £3,530,576.
Owing to the amount spent on railways, the Fiume harbour works and other causes, the Hungarian budgets after 1867 showed big annual deficits, until in 1888 great reforms were introduced and the finances of the country were established on a more solid basis.
The latter has to make deficits good.
Although taxation was seconded by a drastic, indeed harsh, reduction of public salaries and wages (which were cut down by one-tenth all round) yet the years 1884, 1887 and 1888 were notable for heavy deficits in the treasury.
The budgets of 1919 and 1920 disclosed deficits of 5 billion and 3 billion kronen respectively, but in that for 1921 the revenue slightly exceeded the expenditure.
The system of classifying the revenue into separate funds has frequently produced annual deficits, which are, as a rule only nominal, since the total receipts exceed the total expenditures.
The Dominion revenue showed a series of deficits for several years in succession.
But it was also provided that, for the purpose of deficits, the states should, in addition, if required by the imperial minister of finance, contribute their quotas according to populationMatri/eular Beitrage.
The deficits in the imperial budget, however, continued.
Of more serious import were the yearly and increasing deficits in the imperial budget, and the consequent enormous growth of the debt.
The 9,000,000 was sufficient to pay the Alexandria indemnities, to wipe out the deficits of the preceding years, to give the Egyptian treasury a working balance of LE 500,000 and thereby avoid the creation of a fresh floating debt, and to provide a million for new irrigation works.
After paying out of the capital the sums required for the indemnities due for the burning of Alexandria and the deficits of the years 1882 and 1883, it still had a million sterling, and boldly invested it in the improvement of irrigation.
When revolution broke out in Mexico (1811), California remained loyal, suffering much by the cessation of supplies from Mexico, the resulting deficits falling as an added burden upon the missions.
Frequently recurring deficits are, in themselves, a condemnation of the methods under which they are found.
Deficits can be transferred to the capital account, and the country's resources employed most usefully by repaying liabilities contracted in times of extreme need.
The bonded debt, amounting on the 31st of May 1908 to 8788,000, was incurred partly in meeting temporary deficits in the treasury and partly in the construction of public buildings.
The practice of meeting deficits by loans, together with the great expenditure, after 1853, on public works, especially roads and railways, explains the rapid growth of the national debt in modern times.
Finance.-The constitution limited the debt that the state might contract to meet casual deficits to $100,000, unless in time of war, and required taxes to be laid to maintain interest on such debt (bonds).
The debts of Spain were further increased in 1891 by a consolidation of Io,ooo,000 of floating debt turned into 4% redeemable stock similar to that of 1882; and this did not prevent a fresh growth of floating debts out of annual deficits averaging two to three millions sterling during the last quarter of the 19th century.
Between 1885 and r9o~ the revenue of Spain varied from 30,000,000 to 40,000,000 and the expenditure was approximately equal; deficits were commomi towards the beginning of this period, surpluses towards the end For an analysis of the budget the \ear 1008 may be taken as typical mriasnuch as trade had then resumed it~ normal condition, aftem the disturbing influence of tariff revision in 1906 and the failure of many crops in 1907.
Deficits were made good by grants made from Portugal and by transfers from the treasuries of such Portuguese colonies as showed an excess of revenue.
Deficits appeared, which had to be covered temporarily by new loans, and which forced the government to establish monopolies on salt, tobacco, matches, mineral oils, &c. Every such step increased the unpopularity of the government and strengthened the opposition.
The old system of borrowing money to cover the yearly deficits were continued, and the expenditure went on increasing from year to year.
As the sales of bonds and treasury notes were not sufficient for the needs of the Treasury, interest-bearing certificates of indebtedness were issued to cover the deficits; but when these began to depreciate the secretary, following the example of his predecessors, engaged the services of the Philadelphia banker Jay Cooke and secured the consent of Congress to raise the balance of the $400,000,000 loan authorized on the 30th of June 1864 by the sale of the so-called "seven-thirty" treasury notes (i.e.
The extravagant management of the railways guaranteed by the state had entailed such heavy deficits that the payment of Financial the coupon of the railway state loan, due on the Crisis of 2nd of January 1892 had to be suspended.