FINANCE — DEFENCE 683
Jan. 1, 1912, omvarJ, a tax of 3 percent, is imposed on the li(|nidated prolit.s of all mineral enterprises the gross value of whose ' production and exporta- tion ' exceeds 8,000/. yearly. The chief branches of expenditure are finance, war, and public works. The ordinary revenue and expenditure for 7 years Avere as follows (12^ bolivianos = 11.): —
Revenue
1906 1007 1008 ]009
£
832,500 1,086,070
Expenditure — Revenue Expenditure
iP i
- £ \ £
1?fi-'Sln 1^10 1,00(3,658 I 1,019,754
l'^74'030 1300 400 I ^^^^ 1,353,080 ' 1,385,482
mImSIo MOdiSS i 1^12: 1,378,008 1,388,523
Until five years ago, Bolivia had no foreign debt. In December, 1908, a loan of half a million sterling was negotiated in order to pay off' some in- ternal debts and to aid in the establisjiment of a gold standai-d; but this loan is now held by the Banco de la Nacion Boliviana, which was established on .January 1, 1911, with a capital of 1,275,000L, 1,000,000/. of which is to be subscribed by the Bolivian Government out of the loan of 1,500,000/. which was made in France at the end of Xovember, 1910. The 1908 loan now amounts to 400,000/. There is also an amount of 35,159/., issued in 3 per cent, bonds, indemnities decreed by the Joint Arbitration Tribunal of Brazil and Bolivia. Total debt charge (1912), 136,989Z.
Tlu^ total internal debt amounts (1911) to 4,910,796 bolivianos.
The departmental revenues for 1911 were estimated at 2,570,219 boli- vianos. These revenues are mainly from territorial contribution by natives, land taxes, taxes on tobacco, hides, inheritances, imported and exported cattle, tte. The expenditure is chiefly on justice, police, public works, instruction, and worship. The municipal revenues amount to 224,000/.
Defence.
The law of February 5th, 1910, provides for a permanent force of 3,153 officers and men. Military service is compulsory for all males from the 20th to the 50th year.
The army is a militia, with a total service in the first line of 5 years, of which about 1 year is spent in the ranks. For the next 5 years (from age of 25 to that of 30) the Bolivian soldier belongs to the 'ordinary reserve. After this the men pass to the 'extraordinary reserve' for 10 years, and finally complete their service by 10 years in the Territorial Guard.
Tlie permanent formations are 6 infantry battalions of about 300 men each, 2 cavalry regiments totalling about 600 each, one field and two mountain batteries. But a considerable l)rce of militia could be mobilised in event of war.
In addition to the above troops, there are small bodies of infantry, 40 to 80 strong (called coUomnaa), at the chief towns of departments, which can be expanded to battalions, if necessary; also 2 squadrons which do duty in Gran Chaco.
The Bolivian infantry are armed wifli the Mauser rifle, model 1898. The material for 3 field batteries and 9 mountain batteries of 4 guns each has recently been obtained from Europe.
Mil'itary expenditure in 1912, 266,313/.
