288 GREECE.
Since the establishment of Greece as an independent kingdom, there have been few financial terms without a deficit. An official report by the British Secretary of Legation, dated March 1869, remarks thereupon : — 'At first sight it seems difficult to understand how the Greek Government, with an ordinary revenue of some 30,000,000 drachmas, or 1,171,428/., can carry on its admin- istration at all in the face of comparatively enormous deficits and so infinitesimal a credit ; but for the last six years, besides frequent loans, there have been issued Treasury bonds to the amount of 6,000,000 drachmas, and by their circulation and by keeping for months in arrear the salaries of the civil employes, from the King downwards, and by a similar postponement of payments of nearly (•very kind, excepting the pay of the soldiers and sailors, successive Governments have contrived to tide over difficulties from year to year.'
The funded debt of Greece amounted, in July 1868, to 337,000,000 drachmas, or rather more than twelve millions sterling, including a loan of one million sterling, raised in England in 1807. The latter loan, issued at 80, and bearing 8 per cent, interest, was raised on the security of the customs of Athens, the Pirceus, and Patras. Exclusive of this loan, the principal portion of the foreign debt of Greece consists of a five per cent, loan taken in 182-4 by Messrs. Andrew Loughnan and Co. at 59, and of another of 2,000,000/. taken in the following year by Messrs. J. and S. Ricardo and Co. at 561. On the former the dividends have been wholly unpaid since July 1826, and on the latter since January 1827, a period of about thirty-three years. The loan guaranteed by England, France, and Russia upon the elevation of Prince Otto of Bavaria to the throne was for 2,313,750/., and was con- ducted by Messrs. Rothschild. Upon this the dividends have been re- gularly paid, but only from reserved funds of the loan itself in the first instance, and since then chiefly from the treasuries of the guaranteeing Powers, who are now, therefore, in each case heavy claimants upon the Greek Government. The guarantee is not by the Powers jointly, but is distinct in each case for a third of the loan. A parliamentary return issued in February 1867 shows that between 1843 and 1866 inclusive the British Government has advanced to Greece in annual payments a sum of 1,060,385/., of which the Greek Government repaid only 58,750/. By the terms of a convention signed in 1866, it is arranged that the government of Greece, instead of fulfilling its original engagement to provide half-yearly for the interest and sinking fund of the above loan, should pay to the three guaranteeing powers not less than 36,000/. a year — British portion 12,000/. ; and by the Act 27 and 28 Vict. c. 40, passed in 1864, a sum of 4,000/. sterling a year, out oi' the amount thus repayable in respect of the
