as effected by the issue of
treasury bonds at 6% to the vendors. In 1889 a loan of 30,000,000 fr.
(L1,200,000) bearing 6% interest was contracted with the Vienna Laenderbank
and Bankverein at 851/2. In 1892 a further 6% loan of 142,780,000 fr.
(L5,711,200) was contracted with the Laenderbank at 83, 86 and 89. In 1902 a
5% loan of 106,000,000 fr. (L4,240,000), secured on the tobacco dues and
the stamp-tax, was contracted with the Banque de l'Etat de Russie and the
Banque de Paris et des Pays Bas at 811/2, for the purpose of consolidating
the floating debt, and in 1904 a 5% loan of 99,980,000 fr. (L3,999,200) at
82, with the same guarantees, was contracted with the last-named bank
mainly for the purchase of war material in France and the construction of
railways. In January 1906 the national debt stood as follows:--Outstanding
amount of the consolidated loans, 363,070,500 fr. (L14,522,820); internal
debt, 15,603,774 fr. (L624,151); Eastern Rumelian debt, 1,910,208
(L76,408). In February 1907 a 41/2% loan of 145,000,000 fr. at 85, secured on
the surplus proceeds of the revenues already pledged to the loans of 1902
and 1904, was contracted with the Banque de Paris et des Pays Bas
associated with some German and Austrian banks for the conversion of the
loans of 1888 and 1889 (requiring about 53,000,000 fr.) and for railway
construction and other purposes. The total external debt was thus raised to
upwards of 450,000,000 fr. The Eastern Rumelian tribute and the rent of the
Sarambey-Belovo railway, if capitalized at 6%, would represent a further
sum of 50,919,100 fr. (L2,036,765). The national debt was not
disproportionately great in comparison with annual revenue. After the union
with Eastern Rumelia the budget receipts increased from 40,803,262 leva
(L1,635,730) in 1886 to 119,655,507 leva (L4,786,220) in 1904; the
estimated revenue for 1905 was 111,920,000 leva (L4,476,800), of which
41,179,000 (L1,647,160) were derived from direct and 38,610,000
(L1,544,400) from indirect taxation; the estimated expenditure was
111,903,281 leva (L4,476,131), the principal items being: public debt,
31,317,346 (L1,252,693); army, 26,540,720 (L1,061,628); education,
10,402,470 (L416,098); public works, 14,461,171 (L578,446); interior,
7,559,517 (L302,380). The actual receipts in 1905 were 127,011,393 leva. In
1895 direct taxation, which pressed heavily on the agricultural class, was
diminished and indirect taxation (import duties and excise) con