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.
Among a variety of premiums awarded by the state are those for the best cultivated estates and for irrigation works, and to the owners of the best stallions and brood-mares.
Inasmuch as the debenture stocks and preference shares would have to be redeemed in 1911 at premiums ranging from 3 to 5 per cent., the state would have to pay the company £253,000 in excess of the total of the outstanding securities in order to enable the ordinary shares to receive par, and in the council's view this payment would diminish the p robability of the Post Office being able to afford a substantial reduction in the telephone charges.
In addition to an initial endowment by the state, part of the annual income of the fund is furnished in various forms by the state (principally by making over a proportion of the profits of the Post Office Savings Bank), and part by the premiums of the workmen.
This sum consists of 4,240,000 of naval expenditure proper, 220,000 for naval pensions and 380,000 for premiums upon mercantile shipbuilding.
These institutions were the means of collecting a vast amount of statistical and general information connected with agriculture, and by their publications and premiums made known the practices of the best-farmed districts and encouraged their adoption elsewhere.
Through the commission the, money previously spent upon Queen's Plates is offered in the form of " King's Premiums " (to the number of twenty-eight in 1907) of L1 so each for thoroughbred stallions, on condition that each stallion winning a premium shall serve not less than fifty half-bred mares, if required.
Other principal sources of income are excise taxes, a general property tax, an inheritance tax and a tax on insurance premiums. For the fiscal year ending June 1909 the net income of the insular government was $3,180,111.75 and the net bonded indebtedness was $3,759,231.22.
In 1906 Sao Paulo offered premiums for its cultivation in the state.
The money so spent, if judiciously used, insures the undertaking against loss by diminishing the mining risk, and is thus analogous to premiums paid to insure against fire or other sources of loss.
To correct abuses in the life insurance business which were discovered in 1905 by a committee of the state legislature, laws were passed in the next year regulating the election of the directors of the insurance companies, and the investments of the companies and the distribution of dividends, limiting the amount of business of the larger companies and prohibiting rebates on insurance premiums. A state superintendent of insurance, (since 1860) appointed by the governor, holds office for three years.
There are no special corporation taxes, but licence-charges are levied upon express and sleeping-car companies, and a tax is laid on the premiums of insurance companies.
In addition to this, in the course of fixing the premiums to be paid, the amount of State support was several times increased.
The average yearly ordinary receipts of the decade 1900-1909, distributed by source, was as follows: from customs, $280,728,741.30; from excise, $257,477,356.45; from miscellaneous sources, $48,736,721.89; total ordinary revenue, $586,942,919.64 or per capita; revenue from sale of Panama bonds, $8,730,959.48; from premiums exclusive of Panama bonds, $397,894.20.
Incidental charges are lower than they were in 1870; handling charges, brokers' commissions and insurance premiums have been in many instances reduced, but all these economies when combined only amount to about 2S.
About the beginning of the 17th century Olivier de Serres and Laffemas, somewhat against the will of Sully, obtained royal edicts favouring the growth of mulberry plantations and the cultivation of silk; but it cannot be said that these industries were firmly established till Colbert encouraged the planting of the mulberry by premiums, and otherwise stimulated local efforts.
The initial efforts began by securing the services of thoroughbred stallions for specified districts, by offering a limited number of " Queen's Premiums," of L200 each, to selected animals of four years old and upwards.
Encouragement of industry was not wanting; the state undertook to develop the herds of merino sheep, by issuing prohibitions against inclosures, which proved the ruin of agriculture, and gave premiums for large merchant ships, which ruined the owners of small vessels and reduced the merchant navy of Spain to a handful of galleons.
Insurance companies are taxed on premiums and income.
An act was passed in 1894 authorizing the government to offer premiums and grant advantageous concessions for the development of manufacturing industries, especially in sugar production, but conditions have not been favourable and the results have been disappointing.