[Communicated to the Council Official No. : C M II. A. and the Members of the League.] -p_ 1259.] L EA G U E O F N A T IO N S

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1 »*. w,. * -jk*» [Communicated to the Council Official No. : C M II. A. and the Members of the League.] -p_ 1259.] Geneva, July 8th, L EA G U E O F N A T IO N S FINANCIAL COMMITTEE (Extraordinary Session held in London, June 6th to 14th, 1933) REPORT TO THE COUNCIL ON GREECE I. INTRODUCTION. 1. The Greek Government, by its letters of April 10th and 22nd, 1933, requested the League of N ations to undertake an enquiry into the financial situation in Greece. The Council having acceded to this request and authorised the Financial Committee to take the necessary measures for appropriate action, a delegation of the Committee visited Greece during May The delegation was composed of Dr. Mlynarski and M. Tumedei, members of the Financial Committee, and M. Laure, representing M. Dayras. Mr. R. Tyler, representative of the Financial Committee in Budapest, preceded the delegation as an expert and acted later as a member of the delegation. M. Rosenborg, Dr. von Suchan and M. Xenakis, of the Secretariat, accompanied the delegation. 2. The Financial Com m ittee held a special session in London from June 6th to 14th to consider the rep o rt of the delegation. The following m em bers were present : M. J anssen (Chairman), M. D ayras, Dr. K e m pn e r, M. t e r Me u l e n, M. Mlynarski, Sir Otto N ie m e y e r, Dr. P o spisil, M. Sh im a su y e, Sir H enry Strakosch, M. T um edei and M. T ornquist. M. Laure an d Mr. R oyall T y l e r, m em bers of the delegation, were also present at the meeting. The Com m ittee h a d the advantage of hearing M. Maximos, Greek Minister for Foreign Affairs, and M. Loverdos, Greek Minister of Finance. 3. The Greek representatives, after a full exchange of views with the Financial Committee, have made, on behalf of the Greek Government, the following declaration, with which the Committee is in agreement : A. In present circumstances and as a general principle, Greece should, in the main, rely on employing domestic savings rather than look to foreign borrowing for economic development. In view of the fact th at the present level of expenditure represents a very high percentage of the national income, whereby the formation of private capital is impeded, a conservative policy in regard to public expenditure should be maintained over a period of years. Public expenditure, State and local, should, in principle, be limited to a level at which it can be covered out of current receipts i.e., without having recourse to credit operations. Capital expenditure from public funds should be slowed down and for the next three years limited to w hat can be covered by ordinary tax revenue. New schemes of capital expenditure will not, during this period, be commenced. The Government is determined : B. (i) To secure effective equilibrium between cash receipts and expenditure, including arrears accounts and special funds, after providing for foreign debt service in agreement with its creditors ; for this purpose the Greek Government is considering the possibility of reducing the charge of domestic debt and of further diminishing expenditure ; S'd.N (F.) (A.) 7/33. I m p. R é u n ie s, C h a m b é r y. Series of League of Nations Publications II. ECONOMIC AND FINANCIAL II. A. 14.

2 (ii) To make clear the position of the railways, so as to show the charge on the finances of the State in this connection, and to make further efforts to reduce this charge (in ) To take the necessary steps to secure the application, as from September ist next, of the following measures which the Government expects to produce additional receipts, on an annual basis : Million drachmae (a) House tax on houses hitherto exempted (b) Public companies profit t a x (c) Tax on industrial and commercial profits and patents ' (d) Tax on salaries, public and private (e) Income ta x (impôt g l o b a l ) (f) Turnover t a x (g) Tax on tobacco (h) State m o n o p o lie s (i) Suppression of exemptions from Customs duties.. 20 T o t a l In general, the Government intends to improve methods of assessment and collection, thus increasing the yield of taxation ; (iv) To introduce certain reforms (Appendix A) in budgetary and Treasury accounting which it has discussed in detail with the Financial Committee. C. (i) The policy of keeping the drachma scarce, which has been followed with encouraging results for some time past, will be kept up., " (ii) It is understood that the central banking organisation as provided for in the Protocol of 1928 will not be subjected to modification. II. GENERAL ECONOMIC SITUATION. 1. Greece is exceptional among the countries of Eastern Europe in so far as she has always relied as much on commercial and other similar activities entering into the balance of paym ents as on the actual production of physical exports. It has, indeed, more usually than not been the case that the value of the invisible items has exceeded that of the visible in her foreign accounts. In these circumstances, it is natural that the actual trade balance should be normally passive. As will be seen from the trade figures in Appendix B, 2(a), the amount of this passive trade balance has, in fact, decreased from over 6 milliard stabilised drachmae in 1929 to 4! milliard in 1931 and under z \ milliard in Particularly in the last year, there has also been a contraction in the invisible receipts of Greece ; but they the results of her commercial and financial activities still remain a substantial item in her balance of paym ents, even in 1932, a particularly low year, accounting for some 7 million (gold) against an approximately similar sum from exports. 2. The world economic depression inevitably reacted upon the dem and for and the price of the few im portant Greek export goods. Up to April 1932, the quantum of imports, on the other hand, was maintained at a comparatively high level. The attem pts which were made during the period of seven months, October 1931 to April 1932, to restrict imports indirectly by means of the system of exchange control then in force were not crowned by any appreciable success, while exports were hampered by the maintenance of the stabilisation parity. Since that parity has been officially abandoned (end of April 1932), a system of direct im port restrictions introduced and tariff duties increased, imports have been radically reduced. A comparatively favourable harvest in 1932, by reducing the import requirements of wheat, has contributed to the same result. On the other hand, there are signs of recovery in the quantity of exports. 3. Though Greece has certain special exports of value (tobacco, currants, etc.), her general productivity in commodities is low. Manufacturing industry is young, weak and undeveloped. It is as yet rather inefficiently organised, and, while cheap, unskilled labour is abundant, it suffers from lack of specialised workers and also from a lack of working capital at tolerable interest rates. The experience of the last six years shows that the manufacturing industry proper (excluding the branches effecting a fairly simple transformation of certain products of the soil), although it is working almost exclusively for the home m arket under the protection of substantial tariff walls, is not capable of rapid development. The bulk of the population is engaged in various forms of agriculture. Since the years preceding the Balkan wars, the proportion of the population engaged in these pursuits has increased from roughly 45 to 60 per cent of the whole. As an agricultural country, Greece has a relatively greater scarcity 01 productive land than any other country in Europe, and the relative yield per unit of cereals and other ordinary foodstuffs grown in the country is lower than in other European countries.

3 The live-stock situation is hardly more favourable. The average size of agricultural holdings is inevitably very small. This initially weak position of Greek agriculture, fundamentally arising from the poor nature of the land, has been accentuated as regards per capita production by the sudden increase in the population by roughly one-fifth, resulting from the refugee movement and the exchanges of population after the war. It has been further aggravated by the present depression in agriculture ; but it would remain even if this depression were to be overcome internationally. Greece can never be a large agricultural producing country, and the productive works which, at the cost of heavy foreign borrowing, were undertaken for the purpose of reclaiming new areas and improving p art of those already cultivated would not go far to solve the problem of the relative insufficiency of productive land, even if those works were to be completed to the full extent of the original plan. It has, in fact, been recognised that a considerable part of this works programme is beyond the possibility of realisation. 4. The railway system, which is comparatively limited, has recently suffered a great decline in transport of goods and passengers. The road system is undeveloped in extent and generally of a rough nature. Although considerable efforts have been made in recent years to remedy this defect, chiefly by means of capital borrowed abroad, such works as have been carried out have not yet resulted in the completion of any road over a long distance. Having regard to the limited budget grants which in present circumstances can be made available for this purpose, the completion even of the construction works actually in hand up to a stage where it will be possible to open the roads for m otor traffic will require a considerable time. 5. Shipping, mainly between foreign ports, accounts for a net amount of nearly 1 million (gold) in the invisible items. The Greek Merchant Marine has shown itself capable of rapid development both in the num ber of ships and in gross tonnage. Certain favourable factors as regards ownership and the social structure of the population group engaged in shipping, combined with low acquisition prices and a low standard of wages, has enabled Greek ships to compete successfully with those of other nationalities, even through a good part of the depression period. But Greece also is beginning to be hit by the international depression in shipping, and about one-third of the total gross tonnage is actually laid up. Most of the ships are old and in poor condition. 6. An examination of the accounts of the Greek balance of payments as calculated by the Bank of Greece (see Appendix B, 2(f)) would suggest that for some years past Greece has depended on foreign borrowing for the m aintenance of a standard of life which under no circumstances can be considered as a high one. This borrowing continued uninterruptedly up to 1931 inclusive. By that time an additional annual foreign debt charge of some 340 million stabilised drachmae about one-sixth of the total foreign debt service as well as very large am ounts of internal debt, had been incurred by Greece since the date of the Stabilisation Loan of The continued effect of a normally unfavourable trade balance, the falling off of receipts from invisible items, and the fact th at the inflow of foreign capital suddenly dried up at the end of 1931 m ade a partial default unavoidable. In 1932, therefore, Greece found herself unable to effect paym ents on the greater part of her foreign debt, and, after vain efforts to m aintain the stabilisation parity of her currency at the cost of the loss of most of her cover reserve, she was ultim ately driven off that parity. After that event, as has been mentioned above, her trade accounts were brought nearer to a balance by a radical cut of imports ; but at the same tim e the em igrants remittances from abroad which, next to the value of the exports, form by far the most im portant current item of inward payments, have dropped, according to the calculations of the Bank of Greece, to less than half of what they still were in H er capacity of effecting transfers in respect of the service of her public foreign debt in the future will chiefly depend, on the one hand, upon the development of her exports and upon the movements of the emigrants' remittances, and, on the other hand, on the avoidance of any excessive increase in imports. 7. According to a census taken of the total foreign indebtedness in the spring of 1932, Greece s external debt, public and private, am ounted then to some $515 million, or to over 40 milliard stabilised drachmas. Granted that, by the end of th at year, the drachma had depreciated to 40 to 45 per cent of the stabilisation rate, the equivalent in paper value at that time would have am ounted to about 90 milliard drachmae. The character and composition of this indebtedness will be seen from the following sum m ary statem ent : Long-term loans : Public foreign debt Loans for communication works H arbour and shipping loans.. Industrial loans... Total long-term Medium-term loans : Loans to mortgage banks S (000,000's) Carried forward 409.9

4 Short-term loans : 4 $ (ooo.ooo s) Brought fo rw a rd Public foreign debt Loans to banks Loans to merchants Loans to monopolies Total s h o r t - t e r m Total loans Investments in Greece by foreigners : Foreign enterprises Participation of foreigners in Greek enterprises Total Miscellaneous, not capable of being statistically determined 10.0 Grand T o t a l Of total foreign loans, about 87 per cent were on long or medium term, the greater part- over 80 per cent being represented by Government loans. Over half the Government long-term foreign debt is said to be actually due to Greeks at home and abroad. Of the $28 million of merchants' short-term credits, some part is believed to have been paid off since the middle of last year. The investments in Greece by foreigners differ, of course, substantially in character from ordinary loans and credits. III. MONETARY AND BANKING. (a) F o r e ig n E x c h a n g e. 1. In January last, the exchange value of the drachma reached its lowest point of drachmas against the Swiss tranc. This was followed by a slight appreciation. What is im portant is that, since March, the drachma has been steady at the rate against the Swiss franc of drachmae buyers, and sellers. In the case of currencies that are off gold, the margin is slightly wider. 2. W ith direct restriction of imports, the exchange control is more than sufficient to hold the black m arket in check. Though exporters are still required to surrender, at the 1928 stabilisation rate, a small proportion, varying according to the nature of the products exported, of the foreign currency received for goods sold abroad, the official policy is gradually to reduce the proportion surrendered until it disappears. In the meantime, this obligation is equivalent to a tax on abnormal gains arising from currency depreciation, and the resulting profits are applied to an extra-budgetary fund for subsidising wheat imports. The Committee do not think it would be wise to attem pt to subject foreign exchange transactions to a stricter control. The experience of the six months from September 1931 to April 1932 shows the difficulty of enforcing such measures. (b) B a n k o f G r e e c e s R e s e r v e. 3. The Bank of Greece has had an encouraging measure of success in its efforts to reconstitute its reserve of gold and foreign exchange, which, at the moment Greece left gold in April 1932, had fallen to some 12 million Swiss francs. The reserve increased through the autum n and again, after a slight diminution at the end of the year, during the first months of 1933 (see Appendix B, 3 (a) and (b)). 4. During January 1933, the Bank of Greece sold to the International Financial Commission foreign exchange to be used towards foreign debt service for amounting to the equivalent of some 19 million Swiss francs. The movement of the cover reserve since April 1933 has been as follows : Swiss francs (ooo's omitted) 1933 : April 30th... 42,441 May 7th... 42,681 May 13th... 43,786 May 23rd... 44,589 M a Y 3 i s t , These sums do not include the further exchange acquired by theso-called drachmification of foreign exchange deposits with the private banks, amounting to 34 million Swiss francs.

5 5 5- The abandonm ent of the gold standard by the U nitea states of America, rumours of impending abandonm ent in other countries, the discovery in Athens of counterfeit dollar notes, together with a m arked decrease in the excess of imports over exports and the tardiness with which Greek internal prices have reacted to the decrease in the exchange value of the currency, have all contributed to this reconstitution of the Bank reserve. 6. The reserve of the B ank of Greece does not include blocked clearing accounts with banks abroad, these being shown in Other assets and set off against items in Other liabilities ", They are used partly to pay off arrears of merchandise debts and partly to pay current imports. (c) F o r e ig n S h o r t -t e r m D e b t a n d C r e d i t s. 7. The level of foreign short-term private debt does not appear to have changed much since the beginning of the year. A census made in April and May 1932 arrived at an approximate total of 260 million Swiss francs. In this connection, distinction should be made between commercial and banking debts. A considerable amount of banking debts had been paid off between September 1931 and April 1932, as is suggested by the fact that, during this period, the Bank of Greece lost some 100 million Swiss francs in foreign exchange. This loss was due to excess imports and also to repaym ent of short-term debts, both to some extent under the pressure of fear of depreciation. Since April 1932, the rate of repayment has fallen off steeply. Old commercial debts are being liquidated at the rate of 10 per cent every six months, but larger paym ents m ay be made in Greek currency. They have now been considerably decreased. Present im ports of commodities are largely being paid for in cash. We have been told that there are some merchandise credits. These may well be renewals of old credits rather than new ones. (d) I n t e r n a l C r e d i t P o l i c y. 8. The B ank of Greece, while gradually reducing its discount rate, has been successful in keeping the drachm a scarce, with im portant results where the price-level is concerned, thereby supplying a basis on which it should be possible to redress the finances of the State. Appendix B, 3 (c) shows the movements of the note circulation, the bill portfolio, and the position that has grown up w ith regard to the deposits of the International Financial Commission and corresponding advances to the Treasury. The following figures for selected dates may serve to illustrate these movements over the past year and in 1933 : End of December April 1932 December January April 1933 May Drachmae (000,000 s) Sight deposits Treasury bills Q(.jjer d;scount Note and advances,,, Inter. Finan. c., t-> i j. 1 c,, and loans circulation _.. State Banks to the State Commission , ,928 1, *4 2, , , ,627 1, ,343 i, i ,575 1, , The advances to the State arise from the blocking of State revenues actually collected and retained by the International Financial Commission pending settlem ent of the external public debt. At present there are no signs of inflation either in note circulation or credits. 10. The position w ith regard to the issue of subsidiary coins is satisfactory. The Government is entitled to issue coins of five, ten and twenty drachmae to a total of 150 drachmae per capita of population. The legal limit is thus in the neighbourhood of 900 million drachmae and the total amount issued is 420 million drachmae, of which 150 million drachmae is in the Bank, and there are further sums in public treasuries, so that the net am ount in actual circulation is less than 200 million drachmae. ir. The Bank of Greece s discount rate was reduced from 11 to 9 per cent in August Since then, deposits w ith the banks have increased, and those of private banks with the Bank of Greece increased four-fold between December 1932 and May This has eased the money market. Private discount rates have fallen below 11 per cent and deposit rates have been reduced from 6 to 4 per cent in the Postal Savings Bank and from 4 to 3 per cent in the private banks. The Bank of Greece s discount rate has now (June 6th) been correspondingly reduced to 7 \ per cent. 12. The Financial Committee have repeatedly emphasised the importance of maintaining the status of the Bank of Greece, whose foundation and functions were an integral part of the international agreement under which Greece was enabled to raise, under League auspices, a loan of 9,000,000. In their opinion, moreover, the criticisms made in Greece with regard to that status are inconsistent with recognised conceptions of the functions of a Central Bank. 13. Since the drachmification of deposits in foreign currency, the internal position of the Greek commercial banks has not given rise to serious apprehensions. Unlike the banks 1Provisional.

6 6 in most European countries, those of Greece are purely commercial banks and are not tied up in loans to industry or agriculture to any great extent. Most of the credits are granted on short term for financing commercial or similar transactions, and are thus, in principle, selfliquidating over com paratively short periods of time. The rise in internal prices which took place in 1932 has helped to relieve the situation of those banks whose credits had become partly frozen. (e) P r o s p e c t s f o r t h e I m m e d ia t e F u t u r e. 14. Though part of the increase in the cover of the B ank of Greece in the last few months m ay be of a non-recurrent character, there are favourable elements of a more lasting nature ; the excess of im ports over exports has diminished and an actual increase in the quantities of exports tobacco, currants and wine has taken place. Im ports are being restricted. Provided that the policy of keeping the drachm a scarce is continued and sufficient efforts to achieve budgetary equilibrium are made, it would not require a great change in conditions on the outside m arkets to produce, next autum n, fcr some months, a favourable balance even in trade alone. This balance, it will be remembered, was slightly active, even last year, for two months. 15. Some further points m ay be noted. The reduction in the receipts of em igrants remittances between 1931 and 1932, as calculated by the Bank of Greece, at least equalled the whole net outward paym ents for the service of the Greek public debt in 1931, when such paym ents reached their maximum. It m ay be concluded th at a return to a more stable balance in the international accounts of Greece is largely conditional upon a resumption of the habit of Greek emigrants of investing their savings in the m other country. A stabilisation of the exchange value of the drachma under conditions removing any fear of losses on account of further depreciation would greatly help to achieve this end. Tourist expenditure in Greece, although it is said to have increased this year, is an uncertain factor. Some improvem ent would seem to be possible where the rationalisation of food imports is concerned. This has been successful in the case of flour, the quantity of which during several post-war years am ounted to 22 per cent of total cereal imports and has now been reduced to less than 1 per cent, grain now being milled in the country itself. Total imports of wheat and wheat flour, however, have sharply increased. Tons (when the cultivated area in Greece was smaller than at present) yearly average , , ,000 The chief cause of these fluctuations is doubtless to be found in a very low normal level of consumption, which jumps up in times of in-flow of foreign capital and is maintained for a time afterwards. Measures of control over food imports might ensure more regular annual imports. IV. PUBLIC FINANCE. 1. Public finance in Greece should be considered in the light of Section III of this report on m onetary conditions. The present stability of the drachm a is a prime factor in the position. It provides a basis on which it should be possible to carry out the measures required to balance the budget and affords an opportunity which should be seized. 2. In order th at the greatest advantage be taken of the present tendency towards a revival of confidence, it is necessary th at the budgetary and cash positions should be clearly and completely ascertainable from the statem ents published. This point will be returned to later. For the moment, we will consider the prospects for budgetary equilibrium in the fiscal year that began on April 1st last. 3. W hen the Committee reported on Greek finance in March 1932, the provisional budget for , with receipts of approximately 8,000 million drachmae and expenditure of approxim ately 8,400 million drachmae, showed a prospective deficit of 400 million drachmae, which the Committee thought it should be possible to meet. These figures did not include provision for expenditure on productive works, which, till that date, had been met from loans. The eventual budget of th at year, after drastic reduction of the foreign and internal debt service on the one hand, and, on the other, inclusion in the budget of provision for productive works, proposed a total of 8.7 milliard drachmae, and, by the end of the budget year, July 31st, 1933, receipts will probably total 9,3 m illiard; expenditure, 9.7 milliard; deficit, 400 million (see Appendix B, 5(a)). The budget for has not yet been presented to Parliament and can hardly now be voted before August at the earliest. In the meantime, the Government estim ates the receipts, on the basis of existing fiscal legislation and regard being had to recent results, at 7,716 million drachmae, revenue ; 7,054 million drachmae, e x p e n d itu re ; balance, 662 million drachmae. But this is without provision, pending negotiations with the

7 creditors, for debt service, external or internal. As will be seen above,1 the Government proposes to increase receipts to the extent of 465 million drachmae per annum, estim ated to produce in the current year, owing to their late introduction, not more than 250 million drachmae, thus raising the surplus, with debt charges excluded, to 912 million drachmae. 4. In addition to these tax measures, the Financial Committee think it should be possible to go further in suppressing exemptions from taxes, especially income tax, the yield of which in Greece is low (see Appendix B, 8 (b)). Probably, also, certain other taxes might be increased; but, in view of the prevailing economic conditions and the considerable weight of the already existing fiscal burden, the Committee do not think that the general level of receipts, in present circumstances, can be considerably increased beyond the total thus attained. It is true that the new turnover tax is estim ated to yield a very small sum in comparison with the product of similar taxes in other countries, but it will be a new tax and, in the earlier months of its application, caution is justified. Customs, which provide some 30 per cent of the total receipts, have in recent months shown a falling off, which may prove eventually to be even greater than allowed for (see Appendix B, 8 (b)). On the whole, therefore, the receipts do not appear to be underestimated. 5. A part from the budget of the Ministry of Finance, which comprises debt service, the estimates of expenditure show a reduction of 867 million drachmae on the provisional results of Nearly 760 million of this is, however, due to decrease in credits for productive works (see Appendix B, 9 (a)). It is therefore the case that, apart from debt service and productive works, total expenditure is provided for on a slightly lower level than that effectively reached last year, though some items this year are new, reaching a net total of approximately 360 million drachmas. In fact, over the last five years, the level of adm inistrative expenditure has shown some increase (see Appendix B, 9 (b)). The decline in world prices, to which Greek prices responded as long as the drachm a remained stable, was not accompanied by any reduction in this level. Since the devaluation of the drachma, the rise in Greek internal prices has lagged far behind the fall in the exchange value of the currency, and internal expenditure as estimated is, therefore, partially affected by currency depreciation. 6. An analysis of expenditure of the departm ents will be found in Appendix B, 9(c). The fact th at m any votes for remain at the same figure as for does suggest, however, that a further revision of the budget with a determ ination to compress expenditure might here succeed in realising some additional economies. We observe, moreover, that, although the scale of salaries of public officials is low, the numbers of active officials have increased since 1928 by 9 per cent, and of pensioners by 50 per cent (not including war pensioners) (see Appendix B, 9 (d) and (e)). In spite of a reduction of 6 per cent in salaries, imposed in 1932, there has been no decrease in total charges. This observation suggests that officials have, in the past, been retired before their time, that their places have all been filled, and some more created. There m ay also have been more shifting about of officials, civil and military, than was necessary, with the attendant removal and first establishment expenditure. 7. To return to the vital question of budgetary equilibrium as a whole, it is obvious that, even if no paym ent in excess of the recent scale were made for debt, the Greek budget estimates for would be far from balancing. In fact, the probable remaining deficit might be estimated at between 500 and 600 million drachmae.2 In putting the figures in this way, the Committee wish to make it clear th at they cannot regard debts as a last charge on the Greek budget, particularly as certain of them have a priority on the main revenues of Greece. 8. The Greek Government are certainly making efforts to enforce economy, and the Committee feel that this fact should encourage further results in this field. 9. The receipts from new taxes will not be realised unless their application as from September 1st is secured. As Parliam ent does not meet until July 10th, despatch will have to be used to secure the necessary vote in time, and the Committee draw particular attention to this point. 10. The Committee draw special attention to Tables 14 (a) to (e), in Appendix B, which show the present position of Greek public debt. In this connection, the Committee note that no provision was made in the last budget for the non-transferred part of the foreign debt service. The Committee wish to point out that, for reasons of financial order, such procedure is unsatisfactory and that some provision should be made. 11. The im portant task of economy is, in the view of the Committee, rendered more difficult by the complications of the Greek budgetary system. The fiscal year begins on April 1st. There is an additional period of four months, after March 31st, during which collections and expenditure authorised by the budget for the previous year are im puted to that year. Further, outstanding tax claims and outstanding expenditure at the end of the additional four-month period are charged to arrears accounts, which must be taken into consideration in the calculation of the total balance for the year (see Appendix B, 5 (a) and 5(b)- Arrears of paym ents, which in July 1928 am ounted to 1 milliard drachmae, had risen, by July 3ist, 1932, to 1.5 milliard drachmae (see Appendix B, 6 (a)). In , paym ents on arrears accounts am ounted to some 7 per cent of the total expenditure (see Appendix B, 5(b))- 1See B (in ) of Government declaration, page 2. 2 This forecast does not include the probable deficit on arrears account, for which see paragraph 11.

8 Arrears of receipts, on the other hand, have increased steadily, reaching 5.4 milliard drachma by July 31st, 1932, thus bearing witness to the increasing difficulty of collecting receipts (see Appendix B, 6 (a)). It appears at present that not more than 15 per cent of the outstanding arrears of receipts is recoverable (see Appendix B, 6(b)). 12. There are still a number of special funds not fully incorporated in the budget. The most im portant are the Road Fund and the National Defence Fund. The latter, which only dates from 1930, enjoys the special privilege of having automatically transferred to it any national defence budgetary credits remaining unutilised at the close of the fiscal year (see Appendix B, 13(a) to (c)). 13. An examination of the situation of the Post Office adm inistration and particularly of the railways shows that neither is able to cover its expenditure from receipts (see Appendix B, 11 and 12(a) and (b)). In the case of the railways, the State budget of receipts does not include service on the capital outlay effected from State funds for the railways. Moreover, the State budget has now to bear the working deficit of the railways. 14. The difficulties of ascertaining, from the statem ents normally published, the true budgetary position and its relation to Treasury cash suggest certain reforms. The proposals of the Greek Government in this connection are contained in Appendix A. 15. The Committee have not gone in detail into the question of the expenditure of local authorities, which consist almost entirely of municipalities and communes. This expenditure some 10 per cent of the S tate s budget -is relatively not heavy in Greece. But, in the aggregate, these authorities have constantly been in deficit covered by borrowing. As regards the level of expenditure, there is a slight improvement in the last figures available namely, for (see Appendix B, 15). The Committee understand that this expenditure does not escape the control of the State Administration. Appendix A. A N N EX TO TH E FINANCIAL COM M ITTEE S R EPO RT ON GREECE. In agreement with the Financial Committee, the Greek Government proposes to effect various reforms in the Greek budgetary system with a view to simplifying financial administration, presenting a clearer statem ent of that administration and, by means of certain of these measures, securing a more precise budget. I. No special explanations need be given of one group of reforms. The intention more particularly : (1) To continue, in the future, the programme already partly carried out by the Government of incorporating the special funds in the budget ; (2) To observe the utm ost strictness as regards entering receipts and expenditure in the second category ; the latter would cover only loans and their reimbursement ; (3) To enter all expenditure, whether commitments or actual paym ents during a given year, in the budgetary accounts of that same year. This principle implies that com m itments actually incurred during a year must appear in the accounts of that year and will mean abandoning the system whereby certain expenditure had hitherto been entered in the Treasury accounts, whence (after legal authorisation in certain cases) it was transferred to the budgetary accounts of a later year ; (4) To supplement the statem ents of Treasury accounts. These will indicate the movement and the balance of the Treasury with a classification of the individual accounts showing clearly the specific nature of those accounts ; (5) To modify the system of accounting for expenditure incurred either by the State railways or by the State on behalf of those railways so as to show clearly the costs borne by the State. This principle implies the inclusion in the working accounts of the railways of all charges on the invested capital (interest and depreciation), and in the State budget accounts of the deficit met and the capital expenditure effected during the year by the State. The part of the railway deficit due to the debt service which is at present paid by the State and entered under the relevant heads will be shown specifically, for the sake of completeness, in the text of the item relating to the deficit met by the State.

9 II. The second group of reforms calls for a short explanation. The system hitherto a d o p te d by Greece is based on the following principles : (1) Equilibrium between claims and the expenditure commitments incurred ; (2) The booking of paym ents received and made against such claims and commitments for an additional period of four months after the budgetary year ; and (3) The transfer of unrecovered or unpaid balances at the end of the said additional period to special arrears accounts, operations on which are kept out of the budget accounts and are, therefore, not taken into consideration in making up the cash balances of those accounts. This system offers serious defects, not offset by any substantial advantages, in that it complicates the financial adm inistration and accounts making the presentation of those accounts obscure shows more favourable budget results than really exist, and hence does not guarantee cash equilibrium. This last defect is due to the following circumstances : (1) The arrears of collections are considerably greater than the arrears of paym ents ; (2) The rate at which these arrears are collected is much slower than the rate at which outstanding liabilities are paid off ; and (3) A considerable proportion (85 per cent) of these arrears of collections is not recoverable. A glance at the figures in Tables 5 (a) and (b) of Appendix B, annexed to the report, one of which shows the budget results under the system just mentioned and as given in the relevant documents, and the other the real results of the cash operations for the twelve months of the budgetary year, is sufficient to illustrate the difference between these two methods, particularly in the present circumstances. In view of these considerations the Greek Government intends : (1) To base revenue estim ates and budgetary equilibrium on the probable sums to be collected rather than on the claims. In the case of expenditure, on the other hand, the need for very strict supervision from the outset would seem to be an argument in favour of maintaining the system hitherto adopted i.e., of basing authorisation for expenditure on the commitments which can be entered into in a given year. The above-mentioned principles will thus imply equilibrium as between sums collected and commitments ; (2) To abolish the additional period for the execution of the budget ; and (3) To include transactions in respect of arrears in the budgetary accounts. These accounts would, therefore, include : (a) on the revenue side, the sums collected, during a period of twelve months, in respect of claims arising either during the current year or during previous years (arrears of collections) ; (b) on the expenditure side, in addition to showing the commitments entered into during the year (see paragraph (1)), the paym ents made in respect of those commitments and in respect of the liabilities in arrears of previous years. The Greek Government also proposes and the Financial Committee agrees to make certain changes in the actual structure of the budget, in order to secure a clear indication of the real nature of revenue and expenditure. These changes concern, for instance, expenditure originating in previous years but not included in the commitments for those years. Such expenditure will have to be entered under the budgetary items to which it naturally belongs rather than under the sum m ary items hitherto provided in the budget for the expenditure of previous years. A p p en d ix B. STATISTICS. E conomic D ata. 1. Data on Population, Area and Production : Page (a) Changes in Area and Population since (b) Occupational Distribution of P o p u l a t i o n (c) Economic D istribution of Total A r e a (d) Changes in Cultivated Area and Density of Population (e) Comparison of Population Density in Greece and Certain Other Countries 12 (f) Distribution of the Cultivated A r e a (g) Total Agricultural O utput and Relative Yield of Principal Crops (h) International Comparison of Average Yields of Principal Crops (i) Average Consumption of Certain Staple Articles per Head of Population in Greece and Certain Other C o u n tr ie s (j) Value of Agricultural P ro d u c tio n ( k ) Development of Industrial Production, (I) Gross Value of Output by Principal Branches of In d u s try Trade and Balance of Payments : (a) Summ ary of Annual Trade Figures, ( b) Movement of Monthly Trade Balance,

10 Page (c) Quantities im ported of Principal Articles, ^ (d) Quantities exported of Principal Articles, jg (e) Quantities imported and exported of Principal Articles, Tanuary-April 1932 and 1933 l6 (f) Greek Balance of Payments, ^ 3. Data on the Bank of Greece and the Leading Commercial Banks : (a) Changes in the Bank of Greece's Net Reserve of Gold and Foreign Exchange 19 (b) Purchase and Sale of Gold and Foreign Exchange by the Bank of Greece 20 (c) Movement of Credits, Note Circulation and Deposits of the Bank of Greece 21 (d) Principal Accounts of Four Leading Commercial B a n k s Price and Exchange Movements : (a) Movements of the Dollar Exchange, the Wholesale Prices and the Cost of L iv in g (b) Movement of Wholesale Prices by Groups of C o m m o d itie s Balance of Receipts and Expenditure : 6. Arrears : 7. Treasury : P ublic F inance. (a) Budgetary Receipts and Expenditure (Closed Accounts to and E stim ates ) (b) Total Receipts and Expenditure, including Arrears (Same Years) (a) Situation of Arrears on July 31st, (b) Arrears of Receipts (July 31st, 1932, and March 31st, 1933) and Probable C o llectio n s (c) Arrears of Paym ents (July 31st, 1932, and March 31st, 1933) and Probable P a y m e n t s (d) Movement of Arrears of Paym ents mentioned in Annex V of 1927 Protocol 27 (a) Movements of the Treasury ( to ) (b) Balance-sheet of the Treasury (March 31st, 1929, to February 28th, 1933) 28 (c) Analysis of the Budgetary Balance, included in the Treasury Balancesheet (Same Year) Receipts (Cash) : (a) Cash Receipts (Results to and Estim ates ).. 31 (b) Taxes, Monopolies and Stam p Duties (Same Y e ars) (c) Receipts from Loans included in Budget (Same Years) Expenditure (Commitments) : (a) Analysis by M in is tr ie s (b) Analysis by N ature of E x p e n d itu re (c) Detailed Analysis by M in istries... 3^ (d) Num ber of S ta f f (e) Number of P e n s io n e r s Monopolies : Receipts and E x p e n d itu re Post Office : Receipts and E x p e n d itu re State Railways : (a) Working A c c o u n t (b) B alance-sheet Special Funds : (a) Total Receipts and Expenditure of Special Funds (b) Receipts and Expenditure of the National Road F u n d (c) Receipts and Expenditure of the National Defence F u n d Public Debt : (a) Sum m ary S it u a ti o n (b) Situation on March 31st, 1933, expressed in Foreign Currencies and in Drachmas... 4 (c) Increase of Public Debt in Recent Y e a r s... 4^ (d) Total Service of the Foreign Public Debt in Foreign Currencies (e) Total Service of the Foreign and Domestic Public Debt in Drachmae Local F i n a n c e s... 4

11 i. D ata o n P o p u l a t io n, A r e a a n d P r o d u c t io n. (a) Changes in Total Area and Population (after London and Bucarest Treaty) 1923 (after Lausanne Treaty) Area Sq. km. 63, , Population 2,702,000 4,820, (approx.) Inhabitants per sq. km (b) Occupational Distribution of Population above Ten Years of Age according to the Last Three Population Censuses Per cent Agriculture and fishing Industry and mining Transport and communications 12.0 Trade and banking Personal s e rv ic e s Liberal professions Public services T o t a l Total population Refugees only Per cent Per cent Per cent l. I l 8.I (c) Economic Distribution of Total Area of Greece compared with that of Certain Other Countries. Greece Bulgaria Portugal - VL < Æ Roumania Hungary Sq.km. (ooo s) Per cent Sq. km. (ooo s) Per cent Per cent Per cent Per cent Per cent Per cent Arable l a n d i 5i Gardens and vineyards, etc I Meadows and p a s tu re s... 7 II 11 8* F o r e s t s Productive marshes... I I 20 Unproductive land Total a r e a (d) Changes in Actually Cultivated Area and in Density of Population per Unit of Such Area. Area actually Inhabitants Year cultivated Population per sq. km. Sq. km. of cultivated area I 9 I I... 8,646 2,702, I ,356 4,818, ,156 4,815, ,690 6,077, ,992, ,200 6,l6 8, ,446 6,303, ,789 6,397, ,319 6,480, Included under pastures. 2 Excluding the islands.

12 (e) Comparison of Population Density pet Unit of Cultivated Area in Greece and in Certain Other Countries. Countries Greece (1931) Portugal (1926) Yugoslavia (1930) H ungary (1931).. Bulgaria (1927).. Roumania (1931) about about Cultivated area, sq. km ,500 59,160 40, ,000 Population ,880, ,653,000 Inhabitants per sq. km. of cultivated area l8 l (f) Distribution of the Cultivated Area Hectares (ooo's) Per cent Hectares (ooo s) Per cent Hectares (ooo s) Per cent Hectares (ooo s) Per cent Hectares (ooo s) Per cent Cereals : W heat... Maize... Barley... Other c e r e a ls i i Total , ,363 7i -3 Fodder c r o p s... Beans and vegetables i Industrial plants : Tobacco... Cotton... Other p l a n t s r Total Vineyards, etc. : Vines... Currants... Sultanas, etc o i Total Grand Total , , i, I -9I (g) Total Output and Relative Yield of Principal Agricultural Products. Cereals : W heat. P 3,435 Y 10.0 P = O utput in thousands of metric quintals. Y = Yield in metric quintals per hectare sown. IQI I Barley. P 804 Y 10.3 Rye P 56 Y 10.1 Meslin. P Y Maize. P 1,512 Y 131 Oats. P 323 Y 10.3 Average ,568 2,890 3, ,334 1,373 1, ,389 1,655 1, ,646 3, , ,705 1,556 2, ,728 1,587 i

13 Average Fodder crops I I9I P 884 1,275 1,085 1,887 1,935 2,032 1,151 Y Beans and vegetables : Beans, etc. P Y P otatoes.. P 278 j ( Y 59.3 P 2,176 } 36.0 S i Vegetables P 297 ( Y ,893 1,086 1,696 2,153 Y 40.6 ) I o Industrial plants : Tobacco.. P Y i 4.2 Cotton P Y i Cotton seed P 7 i Y i CO c <1 Sesamum P Y - 2.4! i -7 Fruit, etc. : Vines P 3,231 4,204 2,592 2,729 2, ,563 Y Raisins.. P 1,456 i,8 u 1,716 1,393 1,706 1,008 i,93i Y Olive oil.. P i,037 1,190 Olives for food P Citrous fruit 1916 Lemons..! ( Oranges.. P ( millions \ Mandarines pieces) j of Cédrats..,1 [ Total A lm onds.. p Carobs P Dried figs P IOI Silk cocoons P (kg., ooo s) 3,700 3,164 2,527 1,884 1,690 Yield in kg. per hectogramme of eggs (h) Comparison of Average Yield in the Quinquennium of Principal Agricultural Products in Greece and in Certain Other Countries. O utput in metric quintals per hectare under each crop. Europe (continental Greece Portugal Rou mania Bulgaria Y ugosla via Hungary Wheat... averages) IO Rye Barley Oats I I.7 Meslin Maize Potatoes Grapes and raisins Tobacco Cotton seed Cotton fibre i Silk cocoons (yield in kg. per hg. of eggs, ) H H 1Approximate figure.

14 14 (i) Average Consumption1 in the Quinquennium of Cereals, Potatoes, Sugar and Olive Oil in Greece and in Certain Other Countries. Kilogrammes per head of population. Greece Portugal Bulgaria Rou mania Yugoslavia Hungary W heat and flour Rye Rice i 2 B arley M a iz e... 3i O a t s Total cereals (211) (203) (359) (435) (47 ) (538) Potatoes Sugar Olive oil (j) Value of Agricultural Production (excluding that of Animal Origin). Drachmæ (000,000 s) W heat ,934 i,93i i,572 1,220 1,302 Other cereals 963 1,563 1,629 1,288 1,120 i, i 77 S t r a w Fodder crops 122 2x Dried and fresh vegetables Tobacco... 2,193 2,343 2,144 i,944 1,846 1,073 Other industrial plants n o Vines and raisins , Currants and sultanas 983 1,217 i, Olives for food and olive o i l ,683 2,413 1,284 1,334 1,358 Fruit, etc T o t a l... 7,100 10,975 11, , Forest products Thereof from : State forests Other forests (k) Development of Industrial Production Gross value uncorrected for currency depreciation and price fluctuations (a) Drachmae Gross value in terms of stabilised drachmæ (b) (000,000 s). Gross value in terms of 1929 prices (c) Quantum index of production weighted by 1929 prices (1929 = 100) (d) ,077 4,825 5, i,938 5,000 5, ,190 4,200 5, ,883 5,350 6, ,978 5,975 6, ,473 5,300 6, ,655 6,655 7,i 5o ,H 5 7,H 5 7, ,158 7,158 7, ,631 6,631 7, ,079 6,079 7, ,678 6, Consumption calculated by adding imports to and deducting exports from domestic production. The net figures thus obtained have been divided by the average figure of the population in each country during the five-year perio considered. = Estimate or provisional figure.

15 i5 (1) Gross Value of Output by Principal Branches of Industry. Drachmæ (ooo,ooo s) I. Metallurgy (smelting) Mechanical in d u s tr y Building m aterial industry Textile in d u s try... 1,239 1, Food in d u stry ,215 1, Chemical industry Leather industry Paper i n d u s t r y Clothing industry i 10. Woodworking industry Tobacco m anufacture Generation of electricity Total... 5,473 6, D a t a o n T r a d e a n d B a l a n c e o f P a y m e n t s. (a) Summary of Annual Trade Figures. Value in stabilised 2 Weight in metric drachmae (ooo,ooo s) tons (ooo s) 4 Imports Exports Balance Imports Exports ,343 2, : Old Greece 2,655 I,8l New Provinces.. 2, ,242 Total... 4,738 2,653 2, ,655 3,206 4,449 1, ,219 4,965 7,254 1, ,212 5,849 6,723 2, ,668 5,276 4,392 1, ,852 6,l6 l 6,691 2, ,417 6,331 6,086 2, ,276 6,960 6,316 2, ,524 5,986 4,538 2, I 93I... 8,763 4,204 4,559 2, ,084 2,727 2,357 2, (b) Movement of Monthly Trade Balance. Surplus of im ports ( ) ; Surplus of exports (+ ). Stabilised drachmae (000,000 s). Months January i February March April May June J u ly August September October November December Excluding the raw-material value of wine, olive oil and wheat for milling. 2 At the rate of 1,298 U.S.A. cents per drachma. 1Old Greece. 1 Not including cattle and other goods only shown by number.

16 i 6 (c) Quantities imported of Principal Articles. TT, ( Cattle, etc. : Number of head (ooo s). Units of measure j M other articles. Metric tons fqoo s). Percentage Import quantities in Articles of import _ value (1927) Grain Flour i 5 1 Cattle, sheep, etc ,357 i,336 1, Farm products Sugar Building timber... 3, Iron, raw and semi-manufactured i Mineral oils i n Coal Cotton, raw Woollen tissues Cotton tissues (d) Quantities exported of Principal Articles. Unit of measure : Metric tons (ooo s). Percentage Export quantities in Articles of export ---- _. value 1927 I9I4 I923 * T o b a c c o Wine Currants, dried R a i s i n s Figs Olives Olive o i l i I 5-I (e) Quantities imported and exported of Principal Articles in the Four-month Period January to April of 1932 and 1933 respectively. Metric tons (ooo s) *933 Dprr ' 1 Im ports: (January-April) (January-April) Per cen1 W heat Maize R i c e Sugar C o a l Petrol Exports : T o b a c c o C u r r a n ts Sultanas, etc F i g s Olives Olive o i l Wine

17 i 7 (f) Greek Balance of Payments. (According to calculations made by the Bank of Greece.) Gold (ooo s). Inward payments (exports) Outward payments (imports) Items Current items plus amortisation of public debt : i. Trade in goods 18,717 15,782 11,118 7,173 35,400 28,935 23,348 13, Shipping freights (ne t) , Insurance premiums Em igrants rem ittances... 7,815 8,359 7,084 2, Tourists and travellers ,400 1, ,033 98l Reparations, etc , Service of public d e b t2... 1,300 i, ,600 4,776 4,96o 1, Other St ate requirements ,192 4,089 i, i 44 1,061 Interest and dividends on foreign capital invested in Greece Interest received on account of : (a) Funds of Bank of Greece x , (b) F unds of Greek m arket i i. Incomes of Greeks residing abroad, other invisible resources, etc... 4,682 3,795 1,523 1, Totalitem s specified above 35,657 32,635 23,860 14,040 44,832 39,677 31,429 16,415 Debit balance.. 9,175 7,042 7,569 2,375 Capital items, less amortisation of public debt : 12. R epatriation of securities... 1,560 2, Banking credits 3,120 2,470 1,250 1,100 1, Decrease of Bank of Greece s cover 2, ,018 2, Foreign assistance : (a) Through the Bank of Greece.. 3,029 6,184 2, O' 00 Ut (b) Through the market 2,857 2,049 4,700 (c) Undefinable Total capital items, etc... h, ,982 10,056 3,044 2,810 3,940 2, Balance 9,175 7,042 7,569 2,375 Note to the Statements on the Greek Balance of Payments. The most comprehensive statem ents on the Greek balance of paym ents are those published for the last four years by the Bank of Greece. These statem ents are reproduced above after some modification in respect of classification aiming at a separation, in so far as possible, of current and capital items. As amortisation of the external public debt is not given separately 1The figures on the debit side include subsistence and sick allowances, etc. 1The figures on the credit side represent the offsetting Interest of national loans in gold paid in Greece,

18 i8 from interest paym ents in the original statements, the total debt service is shown under current items above. Certain other inconsistencies of classification have likewise proved unavoidable. Several items of the account, such as em igrants remittances, net shipping freights and tourists expenditure, are, of course, only approxim ate evaluations, and items I I and 15(c) of the above sum m ary are, in fact, of the nature of balancing items calculated indirectly by a process of deduction. Like most accounts of the balance of international payments, the Greek statem ents cannot therefore claim any higher degree of finality. Nevertheless, they afford very valuable guidance in judging the trend of foreign payments in recent years and the order of m agnitude of the am ounts involved. The figures for 1932, calculated by the Bank in term s of United States dollars, have been converted into gold pounds for reasons of com parability w ith those for preceding years, which were originally calculated in term s of the latter currency. Next to the recorded value of exports, the rem ittances received from Greek emigrants constitute the most im portant item of inward payments. The amounts of such remittances received in 1914 and since 1920, as calculated by the B ank of Greece, have been as follows : Years Gold (ooo s) Years Gold (ooo s) , , (22,603) ,923 I (15,066) , (4.908) 1 I ,815 I (6,771) , (8,538) , , ,877 Normally, a very considerable part of the Greek em igrants remittances appears, in fact to constitute a capital item and not a current item in the balance of payments. This part is represented by remittances which are not sent primarily for the purpose of supporting the em igrants relatives i.e., for current consumption but are deposited with Greek banks for ultim ate investm ent in Greece (in house property, etc.). Such remittances are particularly sensitive to changes in the economic and financial conditions both in the country of origin (mainly the United States of America) and in Greece. This fact explains both the magnitude of total remittances in the past and their enormous reduction in times of crisis such as the years and The legislative measures taken in the latter year against foreign currency deposits in Greece, and the discouragement of drachmæ deposits which was entailed by the currency depreciation, largely contributed to the drop in em igrants remittances by over onehalf in that year. Whereas in the past the bulk of the remittances used to follow the channel of bank deposits, it is estim ated that nearly half the remittances effected in 1932 were in the form of foreign bank-notes sent direct to the em igrants relatives. The figure for emigrants rem ittances shown for 1932 in the sum m ary statem ent above includes these concealed remittances as estim ated by the Bank of Greece. In the B ank s original statem ents, the service of the public debt is dealt with in the following two offsetting items (combined in item 7 of the sum m ary table above) : Gold (ooo s) Service of public debt (debit item)... 4,600 4,776 4,960 1,213 Interest of national loans in gold paid in Greece (credit item) 1,300 1, The second of these two items represents paym ents on account of bonds repurchased from abroad by persons residing in Greece, and the difference between the items thus represents the amount actually transferred abroad. The suspension of the payments for the service of the debt therefore appears to have involved a decrease in transfers from 4,127,000 gold in 1931 to 484,000 gold in It should be noted that the outward paym ents do not include the 30 per cent (S3.665,000, or gold 753,000) of the annual interest due in the financial year on the foreign loans, part of which constitutes a charge on the year 1932 (May-December) but was actually paid after the end of the year. Paym ent of the 1932 portion of this interest sum after deducting the value of the coupons paid within the country (in drachmæ) would have had the effect of increasing for th at year by an equal sum item 14 : Decrease of Bank of Greece s cover, as given in the sum m ary table. According to the statem ents of the B ank of Greece as summarised in the table, the debit balance on current items plus items 12 and 13 (shown under capital items in the table), in the four years considered, amounted to the following sums : Gold ,865, ,512,000 r 93i... 9,371, ,044,000 1 Paper.

19 19 The aggregate for the three years 1929 to 1931 amounts to the sum of gold 26,750,000, or over $130 million. This aggregate debit balance was offset on the credit side by foreign assistance (mainly long-term loans) to an am ount of 21,450,000 ($104.4 million) and by loss of foreign exchange and gold by the Bank of Greece to an amount of 5,300,000 ($25.8 million). The drop in this debit balance in 1932 is mainly due to (a) the heavy reduction in im ports in part, a result of the cessation of foreign borrowing which by far surpassed the simultaneous reduction in exports, and ( b) the suspension of paym ents as from May for the service of the external public debt. The character of the " foreign assistance referred to above which was received during the three years m ay be judged from the following statem ent prepared by the Bank of Greece and relating to a period extending from May 1928 to October Foreign Assistance through the Bank of Greece and the Market. $ (ooo s) /v 31/XII Refugee Settlement Commission 4,120 8,212 4, , Hellenic General Trust, Ltd. (industrial lo a n s ) , National Mortgage Bank 4,620 1,565 5,981 2,859 15, Engrais chimiques... 1,458 1, Loans for productive works 27 15,880 13,959 6,635 36, Advances of the National Bank for productive w o r k s... 1,421 2,702 4, Loan for productive works (Greek tranches)... 3,960 3, Tripartite Loan (Budget Account) 1,967 7,969 4,661 14, Loan for the building of schools.. 4,131 4, Bank for International Settlement i/i 3I/X Total 9,355 28,511 40,012 22, ,579 It will be seen th at the total of $100.6 million almost equals that of $104.4 million shown above for the complete three-year period The effect of the continuous loss of foreign exchange upon the reserve position of the Bank of Greece will be seen from the following figures showing the amount of cover at the free disposal of the Bank up to the date of the official abandonm ent of the stabilisation parity : Cover of the Bank of Greece. $ (ooo s). April 30th : , ,337 As a result of the fact that, since May 1932, the foreign trade accounts have been brought nearer to a balance, while paym ents in respect of the greater part of the foreign debt service have been suspended, the reserve position of the Bank of Greece has subsequently improved, as shown below. 3. D a t a o n t h e B a n k o f G r e e c e a n d t h e L e a d i n g C o m m e r c ia l B a n k s. (a) Changes in the Bank of Greece s Net Reserve of Gold and Foreign Exchange. $ (000,000 s). E nd of End of E nd of April 26th, End of End of September 26th, May 31st, In addition to the net reserve as shown above, the Bank holds, since the middle of 1932, for the account of the Government some $ 6 million of foreign exchange, which previously had been lent to it (mainly by the National Bank of Greece) and in respect of which the Bank of Greece had thus incurred a corresponding liability in foreign currency. By the law on drachmification of foreign currency deposits, the Bank of Greece was relieved from this Particular liability in so far as it became possible to convert it into drachmæ at the rate of $1 = 100 drachmæ. Under the term s of the law, the stock ot foreign exchange thereby released accrued to the State ; but, although it has been excluded from the figures shown above, it is actually available in case of need and is therefore included in the cover as shown in the published returns of the Bank.

20 20 (b) Purchase and Sale of Gold and Foreign Exchange by the Bank of Greece since the A bandonment of the Stabilisation Parity at the End of April Cost in drachmæ of : Purchases Sales Balance U.S.A. $ Swiss franc Par = 77. i Par = : $ (ooo s). May... 1, June... 4, J u l y , , A u g u s t... 1,077 2,395 1, September... 2,222 1, October... 3,899 1,988 + I O November... 1,756 2, December... 1,912 3,388 1, O : January... 5,849 5, I 36.1 February... 2,513 1, I March... 3,262 2, , April... 2,941 2, Total (twelve months) , Of the purchases shown for January 1933, some $4 million represented dollar notes released from domestic hoards. F urther purchases of dollar notes from the same source were effected also in the subsequent months, but this extraordinary supply is said to be drying up since April. Of the sales shown for January 1933, a sum of $3,637,000 was in respect of the transfer of the agreed paym ent of part of the interest due on the external public debt in the financial year

21 (c) Government Indebtedness and Other Credits, Note Circulation and Deposits of the Bank of Greece. Drachmae (ooo,ooo s). Government indebtedness Other credits Sight liabilities to Time deposits of End of Long-term debt, including State Gold Bonds Treasury bills and advances Total Discounts and loans Investments Total Note circulation State Banks International Financial Commission Others Total State Banks Others Total ,790 3, ill 5, , , , , ,389 3, ts , I : Septem ber 9,168 9, , ,185 D ecem ber , , , : April... 3,3H 400 3,7H ,239 4,210 r M ay , ,331 4, , Ju n e , ,245 4, , Ju ly... 3,32i 456 3, ,233 4, , i, A u g u s t , ,331 4, , , Septem ber , ,613 4,683 J , , O cto b er ,077 4,399 1, , , N ovem ber 3,322 1,243 4, ,342 4, , l 131 December 3,368 1,928 5,296 1, , , ,45i ~ 1933 : Ja n u a ry... 3, ,122 4, ,932 _ February 3, >17I ,140 4, ,335 M a r c h... 3, , ,I I 1 4, i, i ,575 April ,142 4,5io ,111 4, ,343 1,767 3, i 97

22 22 (d) Summary of the Principal Accounts of the Four Leading Commercial Banks. Assets. Drachmae (000,000 s). 31/xil 30/ix 31/xil 31/iv 31/xn I. Cash in tills Cash at Bank of Greece Gold and foreign exchange I n v e s tm e n ts... 1,756 1,912 1,853 1,899 ï Bill p o r t f o l i o... 1,545 1,659 1,208 1,158 1, Advances and loans 7,771 7,693 7,554 7,56o 7,692 Liabilities. 1. Sight d e p o sits... 8,607 8,018 7,464 7, Thereof in : (a) Foreign currency 2,890 2,884 2,470 2, (b) Drachmæ... 5,717 5,i34 4,994 4,804 6, Time d e p o s its... 2,627 3,xoi 3,143 3,185 3,281 Thereof in : (a) Foreign currency i, 49i 1,807 1,854 1, (b) Drachmæ... 1,136 1,294 1,289 1,286 2, Total d ep o sits... 11,234 11,119 10,607 10,464 10,917 Thereof in : (a) Foreign currency 4,38i 4,691 4, ,231 (b) Drachmæ... 6,853 6,428 6,283 6,090 9,686 The above sum m ary relates to the National Bank of Greece, the Bank of Athens, the Ionian Bank (accounts in Greece only) and the Commercial Bank. Between them, these four banks control about three-quarters of the resources of the commercial banks in Greece. 4. P rice and E xchange Movem ents. (a) Comparison of the Movements of the Dollar Exchange, the Wholesale Prices and the Cost of Living since September Cost of dollar Wholesale-price Cost-of-Iivin as percentage index index of its cost at par (September 1931 = 100) September IOO October.. IOO.7 I O I.I November IOO.9 December January February March n o April M a y June J u l y n o. 9 August i n. 6 September October I I 3-7 November December January February I 43-I March A pril H 5-3

23 23 (b) Movement of Wholesale Prices by M ain Groups of Commodities. Average for the period January 1913 to July 19x4 = 100. A n n u a l a v e ra g e s : Agricultural products Animal products Industrial General Thereof : id chemical Fuels index (all Domestic Imported products products) products products ,l8 o 1, ,894 1,591 I 93I... 1,667 1, ,940 1, : J a n u a r y 2,208 I, 6 l l 1930 : J a n u a r y.. 2,039 1, : J a n u a r y 1,765 1, : S e p te m b e r I, 58 l 1,548 O c to b e r I,6 6 o 1,495 N o v e m b e r 1,658 1,480 D e c e m b e r 1,653 x, : J a n u a r y 1,588 1,580 F e b r u a r y.. 1,585 i,545 M a rc h 1,682 1,612 A p ril 1,781 i, 7i 7 M a y.. 2,0 l8 i,754 J u n e.. 2, ,696 J u l y 2,103 1,770 A u g u s t 2,0 6 9 i,735 S e p te m b e r 2,094 i, 7 7 i O c to b e r 2,0 6 9 i,743 N o v e m b e r 2,112 1,803 D e c e m b e r 2,065 1, : J a n u a r y.. 2,106 i, 95i F e b r u a r y.. 2,091 1,979 M a rc h 2,045 1,906 A p ril 2,059 2,003 1,627 1,691 I, 8 l l 1,926 1,738 1,501 1,640 1,646 1,676 1,626 1,3X6 1,532 x-471 1,541 1,424 1,647 1,866 1,766 1,7X9 1,799 1,637 1,708 1,817 1,893 1,766 1,604 1,721 1,765 1,836 i,7i 7 1,387 1,595 i o 4 r 1,582 1,512 1,262 1,520 1,420 1,493 1,375 1,265 i,494 i,436 1,529 i,372 1,260 1,475 1,429 1,527 1,364 1,272 1,458 1,428 1,558 i, 35o 1,252 1,494 1,419 1,506 1,363 1,267 i,539 1,424 1,483 1,387 i,339 1,665 1,507 1,541 1,485 i,449 1,837 1,619 1,620 1,617 i,7i 3 1,9*5 1,829 1,746 1,889 1,804 2,024 1,899 1,814 1,956 1,798 1,987 1,904 1,827 i,955 1,777 i,974 1,877 1,763 1,956 1,789 i,955 1,894 1,789 1,967 1,825 1,984 1,902 I,80I 1,970 1,857 1,987 1,939 1,839 2,008 1,898 2,035 1,983 1,902 2,038 1,949 2,034 2,020 1,926 2,081 1,986 i,992 2,032 1,927 2,105 2,004 2,501 2,017 1,893 2,105 2,004 1,990 2,033 1,932 2,033

24 1 I 5(a). Budgetary Receipts and Expenditure for the Years to compared with the Estimates for Drachmæ (000,000 s) I ' Definitive results Provisional results Cash Total Cash Total Cash Total Cash Total Cash Total Outstanding claims or commitments Outstanding claims or commitments Outstanding claims or commitments Outstanding claims or commitments Outstanding claims or commitments Estimates Category I Effective : Receipts... E xpenditure 9, , , , ,934 8, , , , , ,464.3 B alance , I , , i , , I , , , , Category I I. M ovement of funds : Receipts... E xpenditure 1, , , , , , , , , ,712.3 B alance IIS-0 1, , ,118.8 i, t, , , Categories I and I I : Receipts... E xpenditure io,55i -5 9, , , , , , , , , ,176.6 T otal balance + 1, , , , , , , , , , , , , , ,284.3 I 1, ,280.2 i, i 39-o , , , , , ,8530 7, , , , , , , , , ,4x3-4 1, , , , , , , , exercice - twelve months plus additional period of four months ; I932~33. twelve months. =It is presumed that the cash results at the end of the additional period will be as follows : Drachmae (ooo,ooo s) Receipts... 9,3 4 Expenditure... 9,721 D eficit

25 25 5(b). Receipts and Expenditure during thetwelve Months of the Budget Years to on account of : (a) The current budget, (b) The preceding budget (additional period), and (c) The arrears. (a) Current budget : Drachmae (000,000's) Receipts Expenditure 10, , , , , , , , B a la n c e , Ï , , ,126.0 (b) Preceding budget : Receipts Expenditure , , , B a la n c e... 2, , , , ,687.3 Total (a) and (b) : Receipts Expenditure 10, , I 33-o , , , ,808.1 B a la n c e , ,561.3 (c) Arrears : Receipts Expenditure B a la n c e Total receipts Total expenditure 10, , , , , , Total balance ,066.0 Of which : Proceeds of loans Repayment of debt , , , Balance , Receipts, excluding proceeds of loans... Expenditure, excluding repaym ent of debt , , , , , , , , ,952.0 Final balance , , (a). Situation of the Arrears on July 31 st, A. Arrears of Receipts. Drachmas (000,000 s) Arrears accum ulated from 1918 to July 31st, ,432.2 Thereof collected from 1919 to July 31st, ,014.0 Arrears accrued from August 1st, 1928, to July 31st, , ,366.5 Arrears paid from August 1st, 1928, to July 31st, Total of outstanding arrears on July 31st, Increase in outstanding arrears from July 31st, 1928, to July 31st,

26 26 B. Arrears of Payments. Arrears accumulated from 1918 to July 31st, Thereof annulled ,570.5 Thereof paid from 1919 to July 31st, , ,084.0 Arrears accrued from August 1st, 1928, to July 31st, , ,360.4 Thereof annulled Thereof paid from August 1st, 1928, to July 31st, ,681.5 Total of outstanding arrears on July 31st, ,526.0 Increase in outstanding arrears from July 31st, 1928, to July 31st, " (b). Situation of the Arrears of Receipts on July 31 st, 1932, and on March 31 st, 1933, and the Amounts which will probably be really collected. Arrears from the years Arrears outstanding 31/V11/32 Collected Amounts Amounts from Amount Arrears which will w'hich will 1/VIII/32 outstanding probably annulled probably be to on 31/HI/33 not be collected 31/III/33 collected Drachmæ (ooo.ooo s) ,742.4 I I 1, , ^ X 929-3O , ) 673.O 167.O I I.. 1,225.7 ' f 1, , , , I- 6 3 I (i.e., about 3,651-3,681 (i.e., about 15 %) 85 %) Notes. (1) The greater portion of the arrears represent outstanding payments on income and other direct taxes, fines and penalties and court fees and are to a large degree contested before the tribunals. (2) The arrears of the years up to and those of the year will be subject to legal prescription on March 31st and July 31st, 1934, respectively. It is not expected that any collections will be made in the meantime. (3) : recoverable amounts of income tax, fines and penalties and court fees out of 311 million drachma; outstanding legal prescriptions on August 1st, (4) : 107 million drachmae, reparations in kind, will be charged to arrears of payments ; 60 million, recoverable amounts of taxes, fines, court fees out of 566 million outstanding. (5) The non-recoverable amount of 983 to 993 million drachmæ comprises 300 million owed by Turkish emigrants, 230 million court fees, fines and amounts charged by the Audit Court and 453 to 463 million, other receipts. (6) : Drachmæ (000,000's) Deposited with the Société Commerciale Belge to be returned in virtue of an ag re e m e n t Tax on currants due by the respective autonomous office.. 80 Coal delivered to the State Railways Due by the Agricultural B a n k Recoverable taxes, etc., out of 396 million outstanding Total recoverable Of the remaining amount, 245 million drachmæ represent fines and court fees and 40 million have been charged by the Audit Court and are not recoverable. 6(c). Movement of the Arrears of Payment since July 31st, Drachmæ (ooo.ooo s) Outstanding arrears on July 31st, 1932, as shown in Table 6(a).. 1,526.0 Thereof annulled ,488.6 Thereof paid from August 1st, 1932, to March 31st, Transferred from budgetary account Total of outstanding arrears on March 31st, ,144.6 Notes. (1) Of the amount of 1,144.6 million drachmæ, only million will constitute a withdrawal of funds from the Treasury, as 473 million have already been paid and charged to various Treasury accounts., (2) A comparison between the recoverable arrears of receipts and the arrears of payment relating to the pas years (not including the arrears for , the situation of w'hich will not be known before August 1933) shows 00 to 631 million of recoverable arrears against million of newcharges of the Treasury. The Treasury will there have to provide for an amount of about 40 to 70 million drachmæ for the arrears accounts.

27 27 6(d). Movement of the Arrears of Payments dealt with in Annex V of the Geneva Protocol. A. (i) Arrears from and previous y e a r s (2) Arrears from Arrears Arrears Payments Arrears as indicated after deduction effected from outstanding in the Protocol of amounts April 1st, 1927, to on annulled March 31st, 1933 March 31st, 1933 Drachmæ (000,000's) Total A... 1,193.7 B. (3) Value of property belonging to foreigners and expropriated for the settlem ent of refugees (4) Compensation to owners of vessels requisitioned during the war (5) Sundry paym ents : (a) Transport service (b) Various (6) Debt to the Refugees Settlem ent Commission (7) Idem, in respect of tithe for the year Total B Grand T o t a l... 1, r o , , Note. As provided in the Protocol, the arrears under items x and 2 are payable from Treasury balances. They are, in fact, included in the arrears accounts dealt with in the preceding tables. The remainder i.e., million, is covered by balances from the Stabilisation Loan. This balance am ounts to million drachmae, as payments of the Treasury am ounting to 19.5 million have not yet been reimbursed. The integral settlement of the arrears is delayed by the necessity for observing the procedure of liquidation and by pending lawsuits. 7(a). Movements of the Treasury.1 Receipts : Drachmæ (000, ooo s) Cash at the beginning of the y e a r Balances of the budgetary accounts (excluding proceeds of lo a n s ) I 43-1 Proceeds of loans included in the budgetary accounts.. 1, ,157-8 Rectification of accounts 1.4 Balance of Treasury operations ,950.7 Expenditure : 1, , , ,383-8 Balance of budgetary accounts (excluding proceeds of loans , , ,223.8 Balances of Treasury operations Rectification of accounts Cash at the end of the year , , , , , definitive situation ; the following years, provisional situation. 1The cash balances shown for do not represent real cash, but include expenditure effected without authorisation by the budget preceding régularisations. From April 1929, the amounts thus spent are excluded from the cash balances. The amount of this expenditure was million drachmæ on March 31st, 1928, rose to million drachmæ on March 31st, 1930, and has been reduced to million drachmæ on February 28th, *The cash balances exclude the balances of the special Treasuries for the various special funds and the free balances held with the Bank of Greece. The latter balances amounted (on March 31st) to : million drachmæ in 1929 ; *49-i in 1930 ; in 1931 ; but, beginning from 1932, there is a debit balance with that bank which amounted on March 31st, 1932 ; on February 28th, 1933 ; on March 31st, 1933 ; 1,031.3 on April 23rd, 1933-

28 28 7(b). Balance-sheet of the Treasury on March 31 st, , and on F ebr'uary 28th, I 933- ASSETS. 3 1 / I I I 31/ni 3 1 / n i 3 1 / m 28/ r933 Drachmae (000,1DOO s) Effective c a s h Expenditure which will ultim ately be regularised Total , Various Treasury accounts : Movement of f u n d s Company for the administration of the pledged revenue Central Treasury service of the Army Deposits for the service of debt Deposits with banks for the account of other public bodies and special services Debit balances of persons rendering \ accounts... > i -9 Perm anent advances Advances to various s e r v ic e s International Financial Commission 1, , , ,128.4 Deposits of State securities with banks Deposits with banks for their own account Paym ents to be regularised , , ,3134 Provisional pay w arrants i i Credit accounts pending settlement Current accounts with b a n k s Movement between Treasuries Various credit accounts of the Treasury 0.8 Deposits of public bodies with banks for the service of d e b t Salaries of civil s e r v ic e s Deposits of local authorities with banks Treasury of Macedonia Customs a d m in istra tio n Deposit of b a la n c e s O.I O.I Postal money-orders Paym ents of Treasuries on own account i Advances from banks and Governments 29.8 Bank of G re e c e Drawings by treasuriers Total of various Treasury accounts , , , ,274-4 Grand total... 6, , ,6i 3-9 6, ,606.6 H Vi CO 1The figures for 1929 are definitive; those for March 1930, 1931 and 1932 and February 1933 are p r o v i s i o n a l.

29 LIA BILITIES. Various Treasury accounts : Movement of f u n d s... Drawings from treasurer... Money bills... D e p o s its... Deposit o f f i c e... Central Treasury of the Army... Deposits by treasurers... Compensation w a r r a n t s... Funds of public bodies and special services.. Floating d e b t... Receipts to be regularised... Credit balances of persons rendering accounts Postal money-orders... Various Treasury a c c o u n t s... Current accounts... Current accounts of public bodies and special services... Debt accounts pending settlem ent National Defence Bills... Balances to be p a i d... Advances from Banks and Governments Receipts from persons rendering accounts pending se ttle m e n t... Bank of G reece... Movement between Treasuries / m 31/m 3 1 / m 31/m 28/ Drat:hmæ (ooo.ooo s) o I l I I h i I <5 OO n o I i, Total of various Treasury accounts.. 2, , , , ,941.1 Balance representing the results of the budgetary a c c o u n t s... 4, , , , ,665.5 Grand total... 6, , , , ,606.6

30 30 7(c). Analysis of the Balance representing the Results of the Budgetary Accounts on March 31 st, 1929, March 31 st, 1932, and February 28th, 1933, compared with the Situation on March 31 st, A. Results of the budgetary accounts up to March 31st, 1928 : 31 / i n 3 1 / m 2 8 / / m Drachmas (000,000 s) fa) Budgetary accounts proper > (b) Receipts and expenditure of the arrears account.. 2, , , ,023.1 Balance of the accounts up to March 31st, , , , ,306.8 B. Results of the budgetary accounts since April 1st, 1928 : (a) Budgetary accounts proper , , (b) Receipts and expenditure of the arrears account , , ,980.5 Balance of the accounts from onward ,523.1 Total b a l a n c e , , , ,783.7 Notes. The figures for 1929 are definitive, those for 1932 and 1933 are provisional. The balance-sheet for February 1933 includes certain corrections of the figures of the preceding years. According to these corrections, the results of the budgetary accounts from to March 31st, 1932, are as follows : Drachmæ (000,000 s) Budgetary accounts proper... 2,018.7 Receipts and expenditure of the arrears a cc o u n ts... 1,475.8 Balance of the accounts from onward Total balance... 3:849.7 The latter amount, compared with the total balance on March 31st, 1933 i.e., 1,783.7 million drachmæ shows a difference of 2,066 million, which corresponds to the balance of the year shown in Table 5(b). As will be seen from the above table, the funds of the Treasury on account of budgetary operations up to March 31st, 1928 (including, of course, loans comprised in the budget), amounted to 3,306.8 million drachmae ; during , the;' were increased by 721 million (see Table 5(b)). As the result of the surpluses of the years and i.e., 1,562.1 million and the deficits of the years and i.e., 1,019.2 million the balance on March 31st, 1932, was still higher by million than in March In February 1933, the original balance was, however, reduced by million, and on March 31st, 1933, by a further million. The final diminution of the balance in March 1928 is thus 1,523.1 million drachmæ.

31 3 i gra). Analysis of Receipts (Cash) during to compared with the Estimates for Cl os ed A ccounts P rovisional R esults D raft RECEIPTS Category I. Ordinary : set taxes... indirect t a x e s... Monopolies... additional centim es on indirect taxes and m onopolies Stamp duty... Total of taxes, m onopolies and stamp d u tie s... Fees and rights : State participation in enterprises.. judicial and other f e e s... Dues from exchange of obligations (military tax, e t c. )... Other fees and rights... T otal... Public services performed by the State : Postal s e r v ic e... Telegraph s e r v i c e... Telephone s e r v i c e... Receipts of public establishm ents.. Total... Receipts from State domains : Receipts from S tate dom ains Receipts from ad m inistratio n of State d o m a in s... Total... Miscellaneous receipts : 'From sale of m ovable S tate pro p erty '.Interest and penalties on delayed payment of taxes, e tc... Interest on deposits w ith banks T otal... Contributions and recoveries : Contributions... [Recoveries... Return of funds in settlem en t of p ay orders... T otal... Additional centim es... Receipts from abolished special funds War reparations... T otal... Total O rdinary Receipts Extraordinary : Miscellaneous receipts... ram sale of S tate p rop erty Attributions and recoveries from extraordinary budget expenditure... extraordinary taxes, dues, etc. rtoi circulation of subsidiary coins rom previous years Total E x trao rd in ary Receipts Total Category I. egory I I. Movement of Capital Ordinary : r ceeds of sale of S tate p roperty rtisation of loans granted by the State to th ird parties Total O rdinary... Extraordinary : ans : Proceeds of loans... Repayment of loans granted by the S tate to th ird parties.. Total E xtrao rdinary Total Category I I E stimates , , , , , , , , , Total Twelve months Drachmæ (ooo.ooo s) 1, , , , Additional period! Twelve months 1, , , , , , , , , , o M i i o I 5-I I I 4. I I 3M I I 3I I I OI I O O. I i I I s ,1 I Q.8 9, , , , , , , ,934 10, , , , ,531-6 i ï , , , , , , , , , , , , , , , , , , o , , , , , I >4I9-5 8, ,716.8

32 32 8(b). Analysis of Receipts from Taxes, Monopolies and Stamp Duties. D rachm æ (ooo.ooo s). Closed accounts Provisional results Draft estimates Total 12 months Additional period 12 months I. D irect T axes. I. Taxes on income : (a) T ax on income from built property (b) T ax on income from plots of l a n d... (c) T ax on interest, dividends, etc... (d) T ax on profits from trade and industrial e n te rp rise s... (e) T ax on profits from agricultural enterprises.. (f) T ax on salaries... (g) T ax on income from liberal professions (h) T ax on total income... (i) Additional tax on profits of limited liability c o m p a n ie s O. I I I i I S o o T o t a l Taxes on transfer of capital : (a) Inheritance t a x... (b) T ax on donations and d o w rie s... (c) T ax on lottery profits... (d) T ax on the increm ent in value of im movable property... (e) T ax on transfer of im m ovable property (f) T ax on transfer of mines, etc... (g) T ax on transfer of movable property T o t a l M Occupation taxes : (a) Business ta x... (b) Taxes on insurance p r e m iu m s... (c) Taxes on mines and quarries... (d) Taxes on sheep, goats and dogs... (e) T ax on slaughtered c a t t l e... (f) Taxes on cocoons, quinine and poppy-seed (g) T ax on places of en tertainm ent i T o t a l Taxes on agricultural production : (a ) General tax. on agricultural production Q J o O.I 0.2 <><> / o ; 0.7 OC,.3

33 * ^4 ctctrstor*at c &rif t m es antz taxes ort czinee* / r<.v(,j; Total direct taxes... 1,882. x 1, , 1 1, 1 1,596.3 ~ ^ 6: 7 \ I , , II. I ndirect T axes. Import duties... 2,543-2, , , , , ,356.0 Export duties ! 5-I Consumption taxes : (a) T o b acco... (b) A lc o h o l... (c) M alt... 1, , , , , , , (d ) W i n e s (e) Licence duties i (f) G unpow der and explosives (g) Gas, electric current and a c e ty le n e i T o t a l... 1, , , , , , ,668.9 Total indirect t a x e s... 4,221.3, 4, , , , , III. Mo n opo lies. (a) Cigarette p a p e r (b) Playing cards I (c) M atches H 5-9 H (d) P e t r o l (e) Salt *35-o (f) S a c c h a r i n e O.I (g) Quinine (h) N arcotics x T otal m onopolies Additional centimes on indirect taxes and monopolies 1, , , O.I IV. Stamp D u t ie s. (a) S tam p duties pledged for the service of the public debt IO (b) C onsular fees (c) Taxes on tran sp o rt i (d) Taxes on th eatres (e) T ax on Stock E xchange transactions i (f) O ther stam p duties o ni,6 O.I T o t a l Additional centimes on stamp d u tie s T otal stam p duties G rand T otal... 8, , , , , , ,608.8

34 33 8(c). Proceeds of Loans included in the Budgetary Accounts of to and the Estimates for Drachmæ (ooo.ooo s) : Stabilisation and refugees loan , Ditto (Indemnification of foreign subjects) Ditto (for paym ents of arrears included in the Geneva protocol) : Loan from the U.S. A. G overnm ent : Refugees settlem ent 3, : Indemnification of Greek subjects : Greco-Bulgarian e m ig r a tio n : Indemnification of war v ic tim s : Expropriation, agrarian reform Settlement of account of National Defence Bonds : Productive works... 1,260.0 i, : Ulen waterworks : Postal SavingsBank ; Caisse des Dépôts et Consignations ; w aterworks : Telephones.. 45-o 1930 : School buildings : Speyer advance National B ank advance Various i 0-5 Total 1, , , , ,

35 34 9(a). Commitments entered into by the Various Ministries from to compared with the Estimates for and Drachmae (ooo.ooo s). Definitive results Provisional results Estimates A. Army Navy Aviation , , , , , , , Total A 1, , ,013.1 i, , ,720.8 i,79i i B. Foreign A ffairs.. Justice Legislation The Interior i i Total B , , , , , ,021.5 Total A and B.. 2, , , , , , ,812.6 C. Health Social Administration Education Î i , ( ( Total C 1, , , , , ,310.5 I,39I -7 D. Economic Administration Agriculture Communications H , , , i, i 93-4 Total D 1, , , , ,44i -5 i,73i-i 1,626.5 Total C and D.. 2, , , i i 4-3 4, , , ,018.2 Total A to D 5, , , , , , ,830.8 E. Finance : Service of debt.. Other expenditure 4>2 i , , , , , , ,779.0 i,5i 5-4 1,464.0 i, ,183.8 Total finance Total com m itments 5, , , , , , , , , , , , ,054-6 Notes. (1) The Other expenditure of the Ministry of Finance includes, besides the Financial Administration proper, the expenditure on the Presidency, the Council of Ministers, the Prime Minister's Office, the ordinary military and civil pensions, the gross expenditure on monopolies and various payments covered by loans. (2) The large amount of other expenditure for the Ministry of Finance, , is chiefly due to the inscription of expenditure covered by the Refugees Loan, 1924, the Stabilisation and Refugees Loan, 1928, and the Productive Works Loan, (3) The 40 million drachmæ, debt service, Ministry of Finance, , represents payments of arrears. (4) The excess of expenditure for over that for on account of the depreciation of the drachma against foreign currencies is estimated at million drachmæ. The distribution of this amount among the various Ministries is as follows : D r a c h m æ (000,000 s) Army Navy A v ia tio n Foreign Affairs Justice... The Interior Health Social A d m in istratio n... Education... Economic Administration... Agriculture Communications F in a n c e

36 35 9(b). Commitments of the Years to and the Estimates for according to the Nature of the Expenditure. D ra c h m æ (0 0 0,0 0 0 s). Definitive results Provisional results Estimates Public d e b t s e r v ic e : I n t e r e s t , , , , R e p a y m e n t... 1, , , , C o m m iss io n a n d o th e r c h a r g e s D iffe re n c e o n e x c h a n g e 1, T o ta l d e b t se rv ic e.. 4, , , , , S a la r ie s... 2, , , , , , Pensions W ar p e n s io n s Services, m a te r i a l a n d w o rk s 2, , , , , , Subsidies, g r a n ts, e t c Share in ta x e s, r e f u n d s, e tc W ar d a m a g e s p a id in b o n d s W ar d a m a g e s a n d in d e m n i ties to G re e k im m ig r a n ts p aid in c a s h x 11.2 In d e m n itie s.g re c o -B u lg a ria n m ig ra tio n, p a id in b o n d s In d e m n itie s to G re e k s u b je c ts fo r p r o p e r ty a b a n d o n ed in T u r k e y S ettlem en t o f re fu g e e s , A grarian r e f o r m p r o p e r t y e x p r o p r ia tio n A llocation to th e A g r a ria n B a n k T o ta l c o m m itm e n ts.. 1 0, , , , , ,054.6 Note. The figures referring to the item Services, material and works are made up as follows : Drachmæ (000,000 s) Definitive results Provisional results Estimates Expenditure incurred in previous years Utilisation of surpluses Productive works : Covered by loans... 1, , Covered by ordinary receipts... 5T Water supply Telephones *o Construction of school buildings Issue of coinage Payments for services rendered by the postal services Allocations to the Road Fund Allocations to the Defence Fund i54- n Purchase of destroyers Payment by the postal service to postal services abroad vther expenditure... 1, , , , , , , , , , , ,100.1

37 36 g(c). Commitments of the Year compared with the Estimates for that Year and those for Drachmæ (ooo.ooo s). A r m y. P ay... F o o d... Forage... Travelling and transport H eating and lighting Clothing, equipm ent, furniture Barracking, etc.... H ealth... O ther e x p e n s e s... Total ordinary arm y expenditure E x p enditure incurred in previous years... Allocation to th e Defence F u n d Various expenses... T otal extraordinary arm y expenditure... Total, A rm y... i Estimates Commitments Estimates o n , , , , ,058.7 i Observations N a v y. P ay... F o o d... T ransport Clothing, etc. Barracking, etc. Artillery Coal, fuel oil, etc. Docks O ther ï i US I T otal ordinary expenditure of the n a v y Lighthouses and buoys M ercantile M arine... Subsidies to th e N ational Steam N avigation Co... O ther e x p e n se s o 2-5 Total ordinary civil expenditure T otal ordinary exp en d itu re E xpenditure incurred in previous years... Purchase of destroyers... O ther expenditure on the execution of the naval program m e T otal extraordinary expenditure Total, N avy i.e., about 38% more Aviatio n. P ay F o o d A viation m aterial O ther m a te r i a l Civil a v i a t i o n O t h e r T otal ordinary Purchase of aeroplanes E xpropriation of land (expenditure incurred in previous years) O ther expenditure incurred in previous years o T otal extraordinary Total, A v ia tio n i.e., about 5.4% more Total expenditure on national defence 1, , ,791.1 i.e., 0.5% less

38 37 g(c) (continued). Drachmæ (000,000 s). F oreign A ffairs Estimates Commitments Estimates Central services Diplomatic s e r v i c e Consular service General expenditure Observations Total ordinary expenditure Execution of treaties Expenditure incurred in previous years Total ex traordinary expenditure Total, Foreign A ffairs J ustice. Central services State council Courts and tribunals Prisons Payments to P.T.T Various expenses Total ordinary expenditure B u ild in g s Expenditure incurred in previous years Total ex traordinary expenditure Total, Justice T he I nterior. Central services an d general adm i nistration Regional an d provincial adm inistration Gendarmerie Municipal police Subsidies to tow ns and communes, etc E le c tio n s Payments to P.T.T Share of various institutions in taxes, etc Payment to th e Public Officials' Fund Various expenses Total ordinary expenditure Municipal police Expenditure incurred in previous years Various Total extraordinary expenditure Total, the Interior L egislation. Total, Legislation Total Foreign Affairs, Justice, the Interior and Legislation 1, , ,021.5, 4.5% less

39 3 9(c) (continued). Drachmae (ooo,ooo s). H ea lth and Social A d m in istr a tio n. M onopoly of quinine and narcotic drugs... M easures for com bating : M a l a r i a... T u b e rc u lo sis... W ar p e n s i o n s... Subsidies to the W ar victim s fund.. V arious subsidies... Share of various institutions in taxes, etc... O ther ordinary expenditure T otal ordinary expenditure E xp enditure incurred in previous years... Assistance to refugees... H ealth assistance... A ssistance on account of earth quakes, etc... C onstruction of hospitals, etc. O ther e x p e n d i t u r e... T otal extraordinary expenditure Total, Health and Social Adm inistration E ducation. C entral adm inistration... P rim ary e d u c a t io n... Ecclesiastical e d u c a t i o n... Secondary education... Physical training... Subsidy to the university Subsidy to observatory, libraries, museums, fine art, etc... Paym ents to the P.T.T... C ontribution to th e Public Officials F u n d... Subsidies and shares in taxes, etc... G eneral charges... T otal ordinary expenditure B u i l d i n g s... Various expenses... E xpenditure incurred in previous years... T otal extraordinary expenditure Total, Education Total, Health and Social A dm inistration and E d u c a tio n... N ational E conomy. C entral services... Comm ercial s c h o o ls... T rade and i n d u s t r y... Mining... N axos em ery... S tate salt works... F i s h e r i e s... Statistical service... L abour an d public assistance T ourism and e x h ib itio n s... Share of various institutions in State taxes, etc.... P ay m en ts to P.T.T.... O ther e x p e n d i t u r e... T otal ordinary expenditure L abour and public assistance subsidies E xpenditure incurred in previous years... O ther e x p e n d i t u r e... T otal extraordinary expenditure Total, National Economy Estimates Commitments Estimates Observations i I i.e., about 5.8% more o 10.o 10.o I I. 8 I I i.e., about 5.7% less 1, , ,391.7 i.e., about 0.2% more i i ï O.I O.I

40 39 9(c) (continued). Drachmae (ooo.ooo s). A g r i c u l t u r e. Central services... Agricultural services... Forestry... Works... Paym ents to P.T.T... Share of various institutions in State taxes, etc... Other expenses... Total ordinary expenditure Estimates Commitments Estimates o Observations W aterworks... Im provem ents, subsidies Settlem ent... Exchange of p o p u la tio n... Expenditure incurred in previous years... E x p ro p ria tio n s... Total extraordinary expenditure Total, Agriculture i.e., about 21.5% less C o m m u n ic a t io n s. Central A d m in i s t r a ti o n... Potytechnical school... Public works, staff, etc... W aterworks... Port works... Allocations to th e N ational R oad F und... P.T.T... Share of road funds in S tate taxes.. Share of other institutions in taxes, etc... Other e x p e n d i t u r e... Total ordinary expenditure o n o. I IIO.I I Extraordinary allocation to the National Road F u n d Productive works : (a) Monks, U len and F oundation ) (b) R oad construction.... i i (c) Telephones (d) E xpropriation cost P.T T R a i l w a y s Expenditure incurred in previous years Other extraordinary expenditure i -7 Total extraordinary expenditure Total expenditure of first category 1, , ,143-4., about 10% less Subsidy to S tate Railw ays 50.0 Productive works covered by loans from Speyer and the N ational Bank. f Total expenditure of second category Total, Communications 1, , ,193-4., about 38% less Total, National Economy, Agriculture and Communications... 1, »44I-3 1,626.5 i.e., about 33.3% less

41 40 9(c) (continued). Drachmæ (ooo.ooo s). Min istry of F in a n ce. In te re st... In terest (bonds for exchangeable refugees)... In terest (State R ailw ays)... In terest (paym ents on account of previous years)... T otal interest Estimates Commitments Estimates Observations 1, , , R epaym ent of debt : O rd in a ry... E xtraordinary... On account of previous years T otal r e p a y m e n t Commission and other charges : O rd in ary... E xtraordinary... Charges in execution of the Lausanne T r e a t y... Total, Commission and other charges T otal debt service... Pensions... Presidency, Council of Ministers, etc. R estitution of receipts... Reserve F u n d... Subsidy to free zone of Saionica Subsidy to Public Officials Assistance F und... U tilisation (re-issue) of bonds received in p ay m en t of rent U tilisation of reparation receipts from A ustria and H ungary O ther subsides and charges T otal subsidies and charges.. P a y m e n t of shares in taxes, etc. C onstruction and repair of buildings Various expenses incurred in previous y e a r s... C om pensation for w ar dam ages Allocation to A gricultural B ank T otal of various paym ents M onopolies... Financial adm inistration proper Total, M inistry of Finance T otal E xpenditure , , I I , i.e., 6% less 2, , , ,054-6

42 4 i A. Civil Staff. Judges... School teachers Other adm inistrations Mercantile m arine 9(d). Number of Staff during the Years to , , ,967 22, ,164 18,955 22, ,875 24, ,486 24, ,088 19,388 24, Total A B. Public Security. Gendarmerie Municipal police 43,78o 11,849 2, ,478 2,160 45,591 11,626 2, i 12, ,767 12,204 3,100 48,088 12,417 3,082 Total B 14,093 13,638 14,537 15,489 15,304 15,499 Total A and B ,710 60,128 63,070 64,071 63,587 C. Defence. Commissioned officers Non-commissioned officers... 6,657 3,835 6, ,256 4,094 6,543 4,532 6,455 4,224 6,526 4,462 Total C 10,492 10,448 10, ,679 10,988 Grand Total 68,365 69,158 70, ,575 Civil... Army and N avy 9(e) Number of Persons receiving Pensions ,298 14, ,692 i 6, ,892 18, ,895 20, ,152 21, ,190 T o t a l... War pensioners 21, ,907 26,392 59, ,167 59,778 32,643 56,500 Grand Total 78, ,845 88,497 90,945 89, Receipts and Expenditure (Commitments) of Fiscal and Other Monopolies during the Years to compared with the Estimates for I. Fiscal monopolies receipts. Cigarette paper Playing-cards Matches... P etroleum... Salt... Saccharine... Drachmae (000,000's) E stim ate I I i 35-o O.I O.I O.I O.I O.I 0.1 II. Total receipts Total expenditure Balance Other monopolies. Quinine and narcotic drugs : Receipts Expenditure Balance Naxos emery : Receipts Expenditure Balance Total monopolies : Receipts Expenditure I 3I j i n T Balance Note. T h e gross receipts an d ex p en d itu re are included in th e general budget. T he ex p en d itu re of th e fiscal Monopolies is included in th e ex p en d itu re of th e M inistry of F inance, except certain ex p en d itu re on saltw orks, w hich is liduded in th a t of th e M inistry of N atio n al E conom y. T his M inistry includes, m oreover, th e ex p en d itu re on N axos -~ery works, w hereas th e ex p en d itu re of th e M inistry of H e a lth includes th e ex p en d itu re on quinine a n d narcotic drugs.

43 4 2 il. Receipts and Expenditure (Cash) of the Postal, Telegraph and Telephone Services from to compared with the Estimates for Receipts Expenditure Drachmae (ooo.ooo s) E stim ates Notes (1) T he gross receipts an d e x p e n d itu re of these services are included in th e S ta te b u d g e t (M inistry of C om m unications). (2) T he receipts fo r th e y e a r include 60 m illion d ra c h m æ representing p a y m e n ts effected by th e various M inistries in com pensation fo r services rendered (3.2 m illion rem aining due a t th e end of th e b u d g e ta ry period). This com pensation w as in tro d u c ed into th e budget. In t h a t year, how ever, only 3.2 m illion w ere really paid a n d 58.8 m illion w ere o u tsta n d in g ; th e deficit of th a t y e a r w ould, therefore, be reduced to 2.6 million. In the b u d g et for , th is co m p en satio n h a s again been d ro p p ed ; if it w ere ta k e n in to acco u n t, th e bu d g et would be balanced. I t should, how ever, be n o ted th a t th e postal service does n o t p a y an y th in g to th e S ta te R ailw ays on account of tra n sp o rt services rendered. T h is a m o u n t is estim a te d a t a b o u t 50 m illion drachm æ. 12(a). Working Account of the State Railways for the Years to Drachmæ (ooo.ooo s). Receipts W orking receipts Various receipts o 2.1 Total receipts Expenditure. Salaries... Material and services h i I months Total salaries and m a te r ia l... E xtraordinary work Expenditure on account of damages, etc. Contributions to the Pensions and Sickness Insurance F u n d s... Interest, various Depreciation of plant, rolling-stock and equipment Other expenses... Total expenditure Approxim ate expenditure March Notes. B a l a n c e (1) The item "Interest, various includes : (a) The interest on the loan of 50 million drachmæ granted by the State in 1923 ; (b) The loan of ; 16,000 granted in 1929 by the Land Bank ; (c) The loan of 15 million drachmæ granted by the National Bank, and (d) Interest due to various creditors. The interest on the railway bonds is paid by the State and not charged to the working account of the railways. (2) The item Depreciation of plant, rolling-stock and equipment represents 2 per cent of the value of the capital outlay of the railways on works and rolling-stock (100 million drachmæ on March 31st, 1932) and 5 per cent on the value of equipment. The value of the capital outlay effected by means of railway loans is written down by the amounts corresponding to the repayment of those loans effected by the State itself. The latter amounts are, therefore, not charged to the working account of the railways. The value of plant and rolling-stock, excluding that portion paid by the railways themselves, amounted on March 31st, 1931, to 3,432.5 million drachmæ. The repayment of the railway debt effected during by the State and deducted from the value of plant, etc., amounted to 7.5 million drachmæ i.e., about 2.5 pro mille. There is, however, a reserve fund for construction of railway stations, to w'hich 2 per cent of all receipts are allocated and a fund for the renewal of rolling-stock, which receives an allocation amounting to 10 per cent of passenger tickets. These amounts are directly allocated to the funds and do not pass through the working account. There are various other reserve and renewal funds to which a surplus o f the working account is a ll o c a te d. (3) It should be noted that t h e postal services do not pay any compensation for transport services r e n d e r e d. The value of these services is estimated at about 50 million drachmæ. (4) Number of staff employed by the State Railways : M a rc h 3 1 st, 1931 M a r c h 3 1 st, 1932 D e c e m b e r 31st, 1932 Permanent s t a f f... 5,142 5,138 4,927 Temporary s t a f f... 2,155 1, Total s t a f f... 7,297 6,238 5,923 j I

44 12.(b) 43 Balance-sheet of the State Railways on March 31s/, 1930, 1931 and 1932, respectively. Drachmæ (ooo.ooo s). Assess C a s h o Banks Current account Various debtors Material in stock Equipm ent Studies and works in process Plant and rolling-stock ,601.9 Accumulated deficit Transitory items Total , ,022.9 Liabilities. B i l l s Various creditors : Unpaid salaries Unpaid w a r ra n ts i State t a x e s Pensions and insurance funds Clearing office, Brussels 13-3 i -7 Interest d u e National Bank Advance from the Treasury 10.7 Am ounts due for coal Old accounts with the State Other creditors Total of various creditors Loan from the Land Bank Loan (1923) from the State Railway Bonds i, Reserve and Renewal Funds Capital paid by the State 1, , ,975-1 Transitory items February 28th IO.7 57-o 13(a). Total , ,022.9 Balance, Receipts and Expenditure of the National Road Fund, the National Defence Fund, the Lottery Fund, the Fleet Fund, the Colonisation Fund, the School Building F und and the Oil Fund, from to Drachmæ (000,000 s). Receipts. Cash receipts : Moneys received through the State budget... Moneys received from other funds... Receipts collected directly T o t a l... Expenditure. Moneys transferred to the State budget... Moneys transferred to other fu n d s.. Other e x p e n d itu r e... Total... Balance... p sh at the beginning of the year.. 'a$h at the end of the year -ommitments not paid at the end of, * ans outstanding at the end of the year : To the State Treasury To banks, etc. (Savings Banks) Total loans outstanding at the end of the year , , o i-4i , , i i, i u , i,7i 3-i , , ,873.1

45 4 4 13(b). Receipts and Expenditure of the National Road Fund. Cash receipts : Drachmæ (ooo.ooo s). Receipts I932'33 1. Moneys received through 2. the State budget Moneys received from other funds... _ Moneys collected directly i 13.i Total , Expenditure. 1. Moneys transferred to the State budget Moneys transferred to other funds Other e x p e n d itu re , Total , B a l a n c e Cash at the beginning of the year Cash at the end of the year Commitments not paid at the end of the year Loans outstanding at the end of the year : 1. To the State Treasury , , , To banks, etc. (Savings Bank) Total loans i, i 374 i, , (c). Receipts and Expenditure of the National Defence Fund. Cash receipts : Drachmæ (ooo.ooo s). Receipts x. Moneys received through the State budget Moneys received from other funds Moneys collected directly Total Expenditure. 1. Moneys transferred to the State budget Moneys transferred to other fu n d s Other ex p e n d itu re i 72-3 B a l a n c e Cash at the beginning of the year ^-3 Cash at the end of the year Commitments not paid at the end of ^-z

46 14(a). Public Debt. Sum m ary Table showing the Situation of the Public D ebt on March 31st, 1928 to (The following table shows the above am ounts divided into domestic and foreign, consolidated and floating debt.) Drachmæ (ooo.ooo s). Date D omestic D ebt F oreign D ebt Consolidated Floating Total Movement Consolidated Floating Total Movement Total public debt Total movement March 31st : , , , , ,807.6 T I 3.79Ï , , , , , , , ,216.3 I 9I.9 29, , I 93I... I 4,7I I 4,95I , , , , , , , , , , , , I,765-I , ,232.1 ~ , , ,853.4 I4O.8 The am ounts shown for foreign debt represent the value at par.

47 14(b). Sum m ary of the Public Debt in the Various Currencies on March 31 st, A. Foreign Debt. Gold French Swiss Canadian Gold Turkish francs Consolidated (not including u.s.$ francs francs s marks pounds Leva war and inter-governm ent d e b ts ) W ar and inter-governm ent debts ,5 8,3 1,012.2 Floating Drachm$ I 26,265 J 5,66o.J Total foreign debt i ,012.2 B. Domestic Debt. Consolidated (not including debt to the Bank) ,526.] D ebt to the B ank of Greece, the National Bank of Greece, and the Agricultural Bank of Greece... 4,202,<j Floating ^ Total domestic debt.. 15,232.] Total public debt ,853) 14(c). Increase in the Public Debt between the Years and In Foreign Currencies. 1. 6% 1928 (2nd League Loan) : 6.5 million net.... / $17 million net.... t 2. 8% Loan of 1925, Ulen W ater Loan 3. 6% 1928, Prod. Works, 4 m i l l i o n % 1893, Salonica- Monastir Rlwy., 10 million gold francs % 1930, School Buildings (Kreuger) 1 million % 1931, Prod. Works, 4.6 million 7. Caphandaris - Molloff Agreement, 1,029 million leva Speyer Adv., 6%, Prod. Works, $7.5 million.. 9. Lausanne Agreement Treasury bills for destroyers... In Drachma. 1. 8% Expropriation Loan, (increases) 2. 6% Greco-Bulgarian Em igration (increases) 3. 9% Tekton loan, 100 million authorised % 1927: Indemnification of Greek refugees ; 800 million authorised 5. 6% Indemnification of W ar Victims ; 800 million authorised Drachmæ (ooo,000 s) 2, , , I l O The obligations arising out of this loan have been taken over by the Greek Government, on the c o n c lu s io n of the agreement whereby the Salonica-Monastir Railway became the property of the Greek State.

48 47 14(c). (continued) Drachmae (ooo.ooo s) 6. Municipality of Piraeus, 6% Caisse des Dépôts et Consignations, 6% and 7% Loan for W aterworks 8. P.O. Savings Bank, 8% for W aterworks.. 9. P.O. Savings Bank, 8% (a) for W aterworks P.O. Savings Bank, 8% (b) for W aterworks P.O. Savings Bank, 8% (c) for W aterworks P.O. Savings Bank, 8% (d) Telephones % *9*3>Zappion L o an % 1931, Exchangeable Agricultural Refugees ; 250 million auth % 1931, Land Bank ( 53,500) Adv. b y National Bank of Greece for prod, works Treasury bills with Bank of G r e e c e Total... 2, , , , (d). Amounts Necessary for Integral Payment of the Foreign Debt Service in , expressed in the Corresponding Currencies. Foreign Debt. Interest Amortisation Commission Total Consolidated and floating debt, excluding war and inter-government debt : Gold f r a n c s... 37,189,614 9,699, ,848 47,096,028 Sterling... 1,271, ,014 6,157 1,547,578 D o lla r s... 3,453,396 2,057,000 18,650 5,529,046 French francs 4,110, ,500 24,891 5,003,066 Swiss f r a n c s... 6,922, ,815 36,836 7,849,121 Turkish, gold 83,600 83,600 Turkish, paper 28,153 15,128 43,281 W ar and inter-governm ent debt : Gold f r a n c s , ,926 Sterling , ,959 D o lla r s ,550 1,194,353 1,928,903 French francs 2,434,077 2,434,077 Swiss f r a n c s Turkish, gold Turkish, paper Leva... 53,976,795 34,312,630 88,289,425 Total Foreign Debt : Gold francs Sterling Dollars French francs Swiss francs.. Turkish, gold Turkish, paper Leva 37,189,614 1,271,407 4,187,946 4,110,675 6,922,470 28,153 53,976,795 10,637, ,973 3,251,353 3,301, ,815 83,600 15,128 34,312, ,848 6,157 18,650 24,891 36,836 48,033,954 1,952, ,949 7,437,143 7,849,121 83,600 43,28i 88,289,425 1On the suppression by the State in 1931 of a local import tax in favour of the Municipality of Piraeus, the State undertook this liability as it stood in s The State has undertaken this obligation to the Zappion Committee as from On the suppression in 1931 of the Special Fund for material and equipment of ports, the State assumed this Ability as it stood in 1931.

49 48 14(e). Amounts Necessary for Integral Payment of the Foreign and Domestic Debt Service in , expressed in Drachmæ (000,000 s). A. Foreign Debt : interest (1) Consolidated debt, excluding war and inter- Government debt.. 2,941.6 (2) W ar and inter-governm ent d e b t (3) Floating debt Amortisation Commission Total 3, Total foreign debt s e r v i c e... 3, , ,746.6 B. Domestic Debt : (1) Consolidated (2) Floating , Total domestic debt s e r v i c e I,509.8 Notes. Total debt service.. 4,077.2 (1) The rates of exchange adopted are as follows Gold f r a n c... sterling... D o lla r... French franc... Swiss f r a n c... 2, D r a c h m æ ,256.4 Turkish, g o l d Turkish, p a p e r (2) If the service of debt which had hitherto been effected in gold francs or gold were effected in paper /, the total amounts for the foreign debt service would be reduced as follows : (1) Consolidated debt, excluding war and inter-government debt... (2) War and inter-government debt (3) Floating debt... Total foreign debt service Drachmae (ooo,ooo s) Amortisation Commission Total Interest 2, , Total foreign and domestic debt service... 3, , Receipts and Expenditure (Cash) of the Municipalities and Communes during the Years to Drachmæ (ooo.ooo s) I 9 3 ' 3 I I 9 3 I Receipts (excluding proceeds of loans) IO-7 E xpenditure Balance Note. The cash in hand at the beginning of amounted to million drachmæ. The proceeds of new loans during amounted to million drachmæ, which, together with the cash in hand from the receipts as above (710.7 million) and certain other receipts, give a total of 1,016.4 million drachmæ which were available during i 93z-32'