REVENUE AND EXPENDITURE.

349

revenue of the kingdom during the thirty-five years 1834-69 rose but slightly, and in no proportion with the increasing national expenditure.

The public debt of Portugal dates from the year 1796, when the first loan of 4,000,000 milreis, or about 900,000/., was raised. In- creasing very slowly at first, it was not till the year 1826 that another large sum was raised, namely, 85 millions of milreis. To this there were added 55 millions of milreis in 1835 ; 82 millions in 1838; 74 millions in 1848; 79 millions in 1853, and 90 millions in 1854. The following statement gives in round sums, and pounds sterling, the amount of capital and of interest of the national debt in the middle of each of the years 1855 to 1867, and at the end of November, 1869 : —

Years

Capital of debt

Annual interest

Jun

e 30, 1855

£ 20,736,000

£ 622,000

1856

20,974,000

629,000

1857

22,215,000

666,000

1858

24,165,000

725,000

1859

25,588,000

767,000

1860

27,834,000

835,000

1861

29,117,000

875,000

1862

33,300,000

999,000

1863

38,928,000

1,168,000

1864

41,207.000

1,236,000

1865

42,454,000

1,262,000

1866

43,255,000

1,297,000

1867

47,333,000

1,441,000

Oct

. 30, 1869

59,333,000

1,801,000

The last great loan of Portugal — issued in pursuance of a law passed by the Cortes July 16, 1869, and which received the royal sanction September 23, 1869 — was of the nominal amount of 12,000.000/. at 3 per cent. The bonds of this loan were offered by the London financial agents of the Government at 32/. 10s. for every 100/. stock, so that the actual interest was above nine per cent.

About one-half of the total liabilities of Portugal rank as an exter- nal debt, contracted for mainly in Great Britain, the rest being a home debt.

The interest on the public debt has remained frequently unpaid. Portions of the national debt have also been repudiated at various periods ; among others the loan contracted by Don Miguel in 1832. At times, as in the year 1837, the interest on the home debt has been paid, but not that on the foreign debt. By a royal decree of Dec. 18 1852, the interest on the whole funded debt, internal and foreign'

was reduced to 3 per cent. Many of the creditors protested against