All these loans were contracted through the Rothschilds of London, and on the security of "all the resources of the empire." The 1883 loan, at 41 per cent. for £4,000,000, the price of emission being £89 per £100, is to be redeemed by a sinking fund of one per cent. per annum, dating from June 1, 1884. In the case of this, as of the earlier loans, the sinking fund of one per cent. is to be applied by purchase of bonds in the market when the price is under par, and, when at or over par, by drawings by lots.

The national revenue and expenditure for the fiscal year 1881-'82 were 131,986,964 and 139,470,648 milreis, respectively; deficit, 7,483,684 milreis.

The budget estimates for 1883-'84 imply a surplus of 1,930,340, and those for 1885-'86 a surplus of 5,104,162 milreis. The Minister of Finance divines the possibility of a saving of 5,000,000 milreis in the ordinary expenditures, and of a further economy of 3,000,000 by converting the six per cent. home debt into a five per cent. debt, leaving only about 75,000,000 to be provided for by taxation, to establish an equilibrium of revenue and expenditure. Part of the necessary increase of revenue may, he thinks, be obtained by putting a tax on cultivated land near railroads and navigable rivers; another on transfers of movables; taxes on tobacco and some other articles; by adjusting and extending the taxes on trades and professions, and by increasing the duties on foreign articles of luxury, while reducing those articles necessary to the poor.

Commerce.-Concerning this department, no more recent returns, of a general character, are at this writing available than those given in the volume for 1883. A significant remark may, however, prove opportune in this place, namely, that in the case of Brazil, as of most of the other countries of Latin America, the balance of trade with the United States is constantly against the last; and accounts have, of course, to be settled mainly "by payments by us, or by exchange through London." The following observations, from the pen of Dr. Salvador Mendouça, the Brazilian consul-general in New York, will be found interesting in this connection: "The balance of trade between this country and Brazil is against the United States. The balance, in favor of Brazil, for the twenty-one years ending 1879,

amounted to $443,267,864. During the same period the commerce between England and Brazil gave a balance of $15,104,579 in favor of the former; while France, during the same period, had a balance in her favor of $38,099,300. The British exports to Brazil were of the value of $616,803,716; those of France, $353,263,900; and those of the United States only $132,253,934. Most of the Brazilian foreign trade is with England, and the fault lies with the United States, which might easily monopolize that commerce if her merchants but acted as they ought. All that is required is frequent and rapid steam communication between the two countries. The United States and Brazil Company has good steamers, but they only run every six weeks. Brazilian coffee is brought to New York in British bottoms, and paid for in London, and thereby Brazil purchases in England commodities which, under other circumstances, she would buy in the United States. By acting at once as banker and carrier, England levies a tax of 12 per cent. on the trade between the United States and Brazil. This being the chief market for Brazilian coffee, Brazilian merchants would willingly take, in exchange for that article, manufactured goods, machinery, and all other products which this country could supply. Another need is direct telegraphic communication between the two nations. The British Cable Company declared last year a dndivide of 14 per cent. on a capital of $8,000,000, and one half of that profit was derived from transactions with the United States. Trinidad is already united by telegraph with this country, and that island is but twenty-four miles distant from the coast of South America. By means of a cable 1,000 miles long, parallel with and close to the coast, the Brazilian system could be linked to the land-wires, and telegraphic communication thus be opened up between Brazil and the United States. That line could be completed and worked by a company having a capital of $1,000,000, and such a company is at this moment being organized."

Brazil claims to possess 800,000,000 coffeeshrubs, covering upward of 2,000,000 acres of land, about 400 shrubs being planted to each acre. The average yield of each shrub is one pound of marketable coffee per annum. The coffee industry of the empire affords employment for 800,000 persons, for the most part slaves.

Shipping. The shipping movements at the various ports of Brazil, in the year 1883, were as follow:

OCEAN TRADE.

ENTERED.-1,218 craft, with an aggregate of 1,220,882 tons. CLEARED.-1,067 craft, with an aggregate of 1,207,821 tons.

COASTING TRADE. ENTERED.-1,414 craft, with an aggregate of 454,789 tons. CLEARED.-1,588 craft, with an aggregate of 540,891 tons.

Besides the three steamers of the United States and Brazil Mail Steamship Line, under contract with the Imperial Government, others

run between New York and Rio Janeiro, via St. Thomas, Pará, Pernambuco, and Bahia.

The contract of September 3, 1881, with the Société Portale Française de l'Atlantique, for a line of steamships between Rio de Janeiro and Halifax, was rescinded, at the request of the company, on June 9, 1883. In the eight round trips made by the vessels of this line, but 58 passengers had been carried, and 43,119 packages, at an expense of $29,765, while the receipts, exclusive of the Brazilian subsidy, amounted to but $15,570. The following companies receive subsidies: Amazon Steam Navigation Company, limited, with 21 vessels, performing 48 round trips annually, viz., 12 on the Rio Purús, between Manáos and Hyutanahan aggregate distance, 30,758 miles; 12 on the Rio Madeira, between Manáos and Santo Antonio aggregate distance, 28,564 miles; 12 on the Rio Negro, between Manáos and Santa Izabel: total, 12,712 miles; and 12 on the Solimeōs (Upper Amazon), between Manáos and Iquitos (Peru): total, 31,948 miles; the

Companhia Brazileira de Navegação por Vapor, for 36 round trips annually between Rio and Pará, and the principal intermediate ports; the Companhia Nacional de Navegação por Vapor, for 58 annual trips between Rio and Montevideo, and Buenos Ayres; the Companhia Espirito Santo e Caravellas, for 12 annual trips between these two ports, and as many between the first and São Matheus; the Companhia de Navegação costeira e fluvial do Maranhão, for 24 annual trips between São Luiz and Fortaleza, southward, and 12 northward between São Luiz and Vigia; the Companhia Paulista, for five monthly trips between Rio and São Francisco; and companies running steamers on the rivers Iguassú and Negro, and the Upper Paraguay.

Railways. At the end of 1883 there were 5,619 miles of railway in operation, and 2,786 miles in course of construction: total, 8,405 miles. Several of the lines are owned and controlled by the state. Here follows a list of the Government railways:

Of lines neither owned nor guaranteed by the Government, there were, at the beginning of 1884, in operation, 2,570 kilometres, and in course of construction, 567; total, 3,137 kilometres.

Telegraphy. There were in the empire, at the end of 1883, 4,887 miles of telegraph, with 139 offices; and the number of dispatches transmitted during the year 1882-'83 was 338,053. The receipts of the department amounted to 1,220,182, and the expenditures to 1,880,244 milreis. Telegraphic communication with the Argentine Republic, via Uraguayana, where the Argentine and Brazilian wires connect, was established February 2, 1883. Telegraphic service with the Eastern Hemisphere is carried on through the cables of the Brazilian Submarine Telegraph Company, limited. The concessions in favor of the American Telegraph and Cable Company were declared lapsed, by imperial decree, bearing date August 18, 1883, and, on the same date, permission was granted to the American citizens Henry Cummins, George D. Roberts, and George S. Cox to open up communication, by one or more submarine cables, with the United States, the concession to remain in force for twenty years, during which period the Imperial Government could not sanction the laying of any other between Brazil and the United States.

Telephone. The telephone was introduced into Rio de Janeiro in 1882, and in January, 1883, concessions were granted for the establishment of telephonic communication in the cities of São Paulo and Campinas.

Post-Office. The number of letters, etc., that passed through this department, in 1882-'83, was 36,767,325, against 35,845,869 for the year immediately preceding. The receipts of the department for the same year, 1882-'83, amounted to 1,220,182 milreis, while the expenditures reached 1,880,244. Deficits are the rule in the Brazilian Post-Office Department, as may be seen in the following table of receipts and expenditures for the decade beginning with 1873-174:

Alexander I. of the grand ducal house of Hesse, in the cadet line of Battenburg. In 1881, with the sanction of a Grand Sobranje, or Constituent Assembly, the Prince assumed extraordinary legislative powers for seven years. On Sept. 20, 1883, when he restored representative government, he appointed the following ministers: President of the Council and Minister of the Interior, Zankoff; Minister of Finance, Natchevich; Minister of Foreign Affairs, Balabanoff; Minister of Justice, Stoiloff; Minister of Public Works, Ikolionoff; Minister of Public Instruction, Malhoff; Minister of War, Lieut.-Col. Kotelnikoff.

Area and Population.-The area of the principality is 63,972 square kilometres. The population, as determined in the census of Jan. 1, 1881, was 1,998,983. As regards religion, 68.8 per cent. were Christians, 30.7 per cent. Mohammedans, and 0.5 per cent. Israelites; in respect to nationality, 66-7 per cent. were Bulgarians, 30.6 per cent. Turks, and 2.7 per cent. of other nationalities. In 1883 the emigration of the Mohammedan element recommenced on a large scale. The capital, Sofia, contained 20,541 inhabitants; Rustchuk, 26,867; Varna, 24,649; Shumla, 22,921.

Commerce. The total imports in 1881 amounted to 58,467,100 francs, in 1880 to 48,223,637 francs; the exports in 1881 to 31,819,900 francs, in 1880 to 33,118,200 francs. The leading article of export is grain. Wool, tallow, hides, and timber are also exported. The principal imports are textile manufactures, iron, and coal. The only line of railroad completed runs between Varna and Rustchuk, 224 kilometres. The state has 2,408 kilometres of telegraph lines in operation.

The Army. The army law of 1879 compels every Bulgarian to serve twelve years in the army, four each in the active army, the reserve, and the Landwehr. The period of active service has been shortened to two years in order to form a reserve. The peace effective is 17,670 men. In case of war a field army of 36,000 troops can be raised.

Polities and Legislation.-When the restoration of the Constitution of Tirnova was proclaimed in September, 1883, the Extraordinary Sobranje, elected in December, 1882, was clothed with full legislative powers. Its term came to an end in January, 1884. Most of the work of the Soboleff - Kaulbars ministry was recast. The war budget was cut down by four million francs. It was enacted that at least two com

panies in every drujina should be officered by Bulgarians, a measure that necessitated the recall of all the Bulgarian officers attached to the Russian army.

The fusion between the Conservative and Liberal party having accomplished its object, the overthrow of the Russian ministers, the two Conservative members of the Cabinet, Stoiloff and Natchevich, retired. Their successors, Pomianoff and Sarafoff, were new to office. The difficulty with the Russian Gov

ernment respecting the control of the Bulgarian army was arranged by accepting another Russian officer, Prince Cantacuzene, as Minister of War. After the withdrawal of the Conservative ministers the division between the Moderate Liberals and the Radicals was accentuated by the refusal of the Government to accept the co-operation of the latter, and admit the leader of the latter into the Cabinet. The Russian agent, Jonin, strove to effect in this way the unity of the Liberal party. Zankoff, who enjoyed great popularity upon entering office as a martyr of liberty, the champion of the Constitution, and the savior of the coun try from foreign domination, sank in favor with the people through his approval of an early revision of the Constitution and through a somewhat arbitrary administration, in which some of its provisions were slighted. In his relations with Russian representatives he did not preserve the independence that was expected. By resorting to repressive acts against his opponents he incurred positive odium. An alliance with the Conservatives was proposed; but in the June elections they lent their votes to the Radicals in the Liberal districts. The Sobranje was called to a preliminary extraordinary session for July 9. The Zankoff party was left in a minority, in spite of acts of official violence at the elections, which led to bloody collisions in Vratza and Lucovit. Karaveleff was elected President of the Chamber. The ministers thereupon gave in their resignations to the Prince, who summoned Karaveleff. The Cabinet was formed as follows: President, Minister of Finance, and Minister of Railways, Commerce, and Agriculture, Petko Karaveleff; Minister of the Interior, Slaveikoff; Minister of Foreign Affairs, Ilia Zanoff; Minister of Public Instruction, Karoleff; Minister of Justice, Radoslavoff.

The regular session of the Sobranje was opened October 27. The Zankoff party and the Conservatives had formed a coalition in the hope of upsetting the ministry, but found that they could not command enough votes, since the Karaveleff Cabinet were in agreement with the Prince as to proceeding to the construction of the Baribrod-Vacarela Railroad according to treaty, and other questions.

Foreign Relations.-During the recess a customs league was concluded with Eastern Roumelia, whereby no duties shall be levied on the frontier, except on tobacco and salt. A commercial treaty was entered into with Roumania also. The Porte has made many protests to the Bulgarian Government, and several times complained to the powers, but without effect hitherto, regarding violations of the Berlin Treaty in the treatment of the rights and property of Turkish subjects. The setting up of civil tribunals to take the place of the muftis, or religious judges, furnished the ground for a fresh remonstrance. A boundary dispute with Roumania with regard to the Dobrudja line and the possession of the forts at Arab Tabia,

was not settled by a joint commission, which separated without agreement in June. The sovereigns and their ministers subsequently met and came to an understanding.

Conflict with Servia.-The two rivals for the primacy among the Balkan states became involved in the summer in a dispute that, before the friendly understanding between Russia and Austria, might easily have plunged them into a war and endangered the European equilibrium. After the suppression of the insurrection in the Timok district the leaders who escaped the terrible vengeance of the Servian Government found a sympathetic reception in Bulgaria. The Bulgarian authorities kept a kind of surveillance over them, but allowed them to settle at Widdin, close to the frontier. The deposed Metropolitan Michael, who met with demonstrative greetings throughout Bulgaria, was also permitted to establish himself on the border of his old diocese. The complaints of the Servian Government led to the intercession of Russia, whereupon the revolutionary leader Pashic was removed to Sofia. After the Servian elections fresh disturbances broke out in the Timok district. The Servians represented that bands of refugees had crossed the border, destroyed a village that had been true to the Government during the insurrection, and committed pillage and murder in other places. The Bulgarian authorities denied that escaped revolutionists had entered Servia.

Zankoff thought it best to take a bold stand in view of the approaching elections. He met the Servian demands for the expulsion of the refugees with a demand that Servia should evacuate one of her frontier posts. This was on a large island in the Timok, opposite the town of Bregovo, and connected with it by a bridge. Three fourths of the island was Turkish territory before the Treaty of Berlin, and was used as a pasture by the townspeople. The Servian portion was divided off by a palisade, guarded by four sentries in a block-house. The Bulgarian Government now claimed this portion, although the peace of Berlin preserved the existing boundary-line. A Bulgarian force drove out the four guards and took possession of the block-house in the beginning of June. On the 6th the Servian agent in Sofia presented an ultimatum demanding the restoration of the block-house and the expulsion from Sofia and the border districts of all the refugees and the ex-Metropolitan Michael. Bulgaria offered to treat the Servian portion of the Timok Island as neutral, but the compromise was not acceptable. After the lapse of three days, as announced in the ultimatum, the Servian agent quitted Sofia. A day after, Bulgaria called her representative away from Belgrade. Servian troops were dispatched to the frontier. A martial fever pervaded Servia. The Bulgarians took little interest in the diplomatic quarrel; but the hostile mien of their neighbors began to infect them with a warlike spirit.

Prince Bismarck instantly placed himself in communication with Vienna and St. Peters burg, and with the approval of both cabinets admonished the two Balkan powers to compose or arbitrate their differences, because a resort to arms would not be permitted. In the autumn an understanding was reached, whereby Bulgaria promised to keep the expatriated insurgents at a distance from the Servian line, and Servia agreed to give up the position on the island in consideration of an exchange of territory or a money indemnity.

Agitation for the Union of Bulgaria and Eastern

CALIFORNIA. State Government.-The following were the State officers during the year: Governor, George Stoneman, Democrat; Lieutenant-Governor, John Daggett; Secretary of State, T. L. Thompson; Treasurer, W. A. January; Comptroller, John P. Dunn; Superintendent of Public Instruction, W. T. Welcker; Attorney-General, E. C. Marshall; SurveyorGeneral, H. J. Willey; State Engineer, William H. Hall. Judiciary, Supreme Court: ChiefJustice, Robert F. Morrison; Associate Justices, W. H. Myrick, E. W. McKinstry, E. M. Ross, J. D. Thornton, J. R. Sharpstein, and S. B. McKee.

Extra Legislative Session.-An extra session of the Legislature convened, at the call of the Governor, on March 24, and remained in session until May 13. The Governor, in his proclamation, specified the objects he had in view in calling the session; which were mainly the passage of laws or constitutional amendments by which a new railroad commission should be established, taxes levied upon railroads the same as upon individual property, the delay or drawback of payment prevented, and the rates for passengers and freight regulated. A local reviewer says:

That the railroad companies had successfully resisted the payment of their taxes ever since the present Constitution was adopted had very naturally incensed the people, who demanded some revision of our revenue system to meet the emergency. That those great corporations should be required and compelled to pay their just share of the expenses of the government that affords them protection admits of no question. And that their evasion of that obligation was the chief existing grievance against them, will hardly be disputed. But for that grievance the extra session would not have been called. Their successful evasion of the payment of taxes was due to the fact that the framers of the present Constitution saw fit to provide that railroad property should be assessed and taxed differently from all other property.

The Legislature, when it convened, was under the control, in both its branches, of the men who claimed to be the especial friends of the Governor. They had induced him to call the session; had suggested to him the topics for consideration, and were supposed to have formulated the proper bills and constitutional amendments to effect the objects sought. But though, through their instrumentality, these amendments to the revenue article of the Constitution were given the prominence of a first mention in the proclamation,

Ronmelia.-The approach of the time for appointing a successor to Aleko Pasha gave occasion for fresh manifestations in favor of the incorporation of Eastern Roumelia in the principality. Mass-meetings were held in the principal towns of Eastern Roumelia and in Bulgaria, in which the citizens expressed their desire that the powers would modify the Treaty of Berlin so as to satisfy the aspirations of the Bulgarian people for political unity. The strongest motive of the Eastern Roumelians was supplied by the fact that taxes are much lighter in Bulgaria.

seven weeks of the session were absolutely frittered away in the consideration of matters of minor importance, having no relation to revenue, and finally the revenue questions were forced upon their attention by those who had not favored the calling of the session. And they had succeeded in getting one or two propositions into shape for final action when the promoters journment and went home. of the session, to avoid voting on them, forced an ad

During the session there were introduced in the Assembly no less than sixty-three bills and propositions for the amendment of the Constitution, besides a score of concurrent resolutions, the latter mainly instructing our Congressmen how to vote on various measures pending at the national capital. In the Senate the bills and constitutional amendments introduced numbered thirty-two, making ninety-five in all. Of these, four bills and one constitutional amendment were finally passed by both Houses. Two of the bills were appropriations for the expenses of the session; another a bill to allow counties to fund their indebtedness in certain cases-designed to permit Yolo county to fund a floating debt of $5,000; and the fourth a bill to license boats engaged in fishing. The constitutional amendment that was adopted, and is to be submitted to the people for approval, is designed to exempt mortgages from being raised beyond their face value when the Board of Equalization orders an assessment raised. And that, barring the concurrent resolutions advising Congressmen how to vote in Congress, is the ultimate of fifty-one days' work by the Legislature.

Several cases involving the constitutionality of the system of railroad taxation are pending in the United States Circuit and Supreme Courts.

The opponents of the extra session charged that its promoters were affected by communistic tendencies, and desired to make party capital by unreasonable assaults upon the railroads. Many of the measures introduced were very radical. The result was disastrous to the Democracy. The November election wrought a political revolution.

Political. The Prohibition Home Protection party held its State Convention in San Francisco in June. Delegates to the National Prohibition Convention were chosen, and presidential electors and Congressmen nominated. The main purpose of the party was set forth in the following passage in one of the resolu tions:

We declare the cardinal principles of our party to be the prohibition, by national and State constitu