threatened Franco-Russian understanding to secure from the
central powers “something more” than the bare territorial
guarantee of the original treaty. This “something more”
consisted, at least in part, of the arrangement, with the help of
Austria and Germany, of an Anglo-Italian naval understanding
having special reference to the Eastern question, but providing
for common action by the British and Italian fleets in the
Mediterranean in case of war. A vote of the Italian Chamber on
the 4th of February 1887, in connexion with the disaster to Italian
troops at Dogali, in Abyssinia, brought about the resignation
of the Depretis-Robilant cabinet. The crisis dragged for three
months, and before its definitive solution by the formation of a
Depretis-Crispi ministry, Robilant succeeded (17th March 1887)
in renewing the triple alliance on terms more favourable to
First renewal of the Triple Alliance.
Italy than those obtained in 1882. Not only did he
secure concessions from Austria and Germany corresponding
in some degree to the improved state of the
Italian army and navy, but, in virtue of the Anglo-Italian
understanding, assured the practical adhesion of Great
Britain to the European policy of the central powers, a triumph
probably greater than any registered by Italian diplomacy
since the completion of national unity.
The period between May 1881 and July 1887 occupied, in the region of foreign affairs, by the negotiation, conclusion and renewal of the triple alliance, by the Bulgarian crisis and by the dawn of an Italian colonial policy, was marked at home by urgent political and economic Internal reforms. problems, and by the parliamentary phenomena known as trasformismo. On the 29th of June 1881 the Chamber adopted a Franchise Reform Bill, which increased the electorate from 600,000 to 2,000,000 by lowering the fiscal qualification from 40 to 19.80 lire in direct taxation, and by extending the suffrage to all persons who had passed through the two lower standards of the elementary schools, and practically to all persons able to read and write. The immediate result of the reform was to increase the political influence of large cities where the proportion of illiterate workmen was lower than in the country districts, and to exclude from the franchise numbers of peasants and small proprietors who, though of more conservative temperament and of better economic position than the artizan population of the large towns, were often unable to fulfil the scholarship qualification. On the 12th of April 1883 the forced currency was formally abolished by the resumption of treasury payments in gold with funds obtained through a loan of £14,500,000 issued in London on the 5th of May 1882. Owing to the hostility of the French market, the loan was covered with difficulty, and, though the gold premium fell and commercial exchanges were temporarily facilitated by the resumption of cash payments, it is doubtful whether these advantages made up for the burden of £640,000 additional annual interest thrown upon the exchequer. On the 6th of March 1885 parliament finally sanctioned the conventions by which state railways were farmed out to three private companies—the Mediterranean, Adriatic and Sicilian. The railways redeemed in 1875–1876 had been worked in the interval by the government at a heavy loss. A commission of inquiry reported in favour of private management. The conventions, concluded for a period of sixty years, but terminable by either party after twenty or forty years, retained for the state the possession of the lines (except the southern railway, viz. the line from Bologna to Brindisi belonging to the Società Meridionale to whom the Adriatic lines were now farmed), but sold rolling stock to the companies, arranged various schedules of state subsidy for lines projected or in course of construction, guaranteed interest on the bonds of the companies and arranged for the division of revenue between the companies, the reserve fund and the state. National control of the railways was secured by a proviso that the directors must be of Italian nationality. Depretis and his colleague Genala, minister of public works, experienced great difficulty in securing parliamentary sanction for the conventions, not so much on account of their defective character, as from the opposition of local interests anxious to extort new lines from the government. In fact, the conventions were only voted by a majority of twenty-three votes after the government had undertaken to increase the length of new state-built lines from 1500 to 2500 kilometres. Unfortunately, The railway conventions. the calculation of probable railway revenue on which the conventions had been based proved to be enormously exaggerated. For many years the 3712% of the gross revenue (less the cost of maintaining the rolling stock, incumbent on the state) scarcely sufficed to pay the interest on debts incurred for railway construction and on the guaranteed bonds. Gradually the increase of traffic consequent upon the industrial development of Italy decreased the annual losses of the state, but the position of the government in regard to the railways still remained so unsatisfactory as to render the resumption of the whole system by the state on the expiration of the first period of twenty years in 1905 inevitable.
Intimately bound up with the forced currency, the railway conventions and public works was the financial question in general. From 1876, when equilibrium between expenditure and revenue had first been attained, taxation yielded steady annual surpluses, which in 1881 reached Finance. the satisfactory level of £2,120,000. The gradual abolition of the grist tax on minor cereals diminished the surplus in 1882 to £236,000, and in 1883 to £110,000, while the total repeal of the grist tax on wheat, which took effect on the 1st of January 1884, coincided with the opening of a new and disastrous period of deficit. True, the repeal of the grist tax was not the only, nor possibly even the principal, cause of the deficit. The policy of “fiscal transformation” inaugurated by the Left increased revenue from indirect taxation from £17,000,000 in 1876 to more than £24,000,000 in 1887, by substituting heavy corn duties for the grist tax, and by raising the sugar and petroleum duties to unprecedented levels. But partly from lack of firm financial administration, partly through the increase of military and naval expenditure (which in 1887 amounted to £9,000,000 for the army, while special efforts were made to strengthen the navy), and principally through the constant drain of railway construction and public works, the demands upon the exchequer grew largely to exceed the normal increase of revenue, and necessitated the contraction of new debts. In their anxiety to remain in office Depretis and the finance minister, Magliani, never hesitated to mortgage the financial future of their country. No concession could be denied to deputies, or groups of deputies, whose support was indispensable to the life of the cabinet, nor, under such conditions, was it possible to place any effective check upon administrative abuses in which politicians or their electors were interested. Railways, roads and harbours which contractors had undertaken to construct for reasonable amounts were frequently made to cost thrice the original estimates. Minghetti, in a trenchant exposure of the parliamentary condition of Italy during this period, cites a case in which a credit for certain public works was, during a debate in the Chamber, increased by the government from £6,600,000 to £9,000,000 in order to conciliate local political interests. In the spring of 1887 Genala, minister of public works, was taken to task for having sanctioned expenditure of £80,000,000 on railway construction while only £40,000,000 had been included in the estimates. As most of these credits were spread over a series of years, succeeding administrations found their financial liberty of action destroyed, and were obliged to cover deficit by constant issues of consolidated stock. Thus the deficit of £940,000 for the financial year 1885–1886 rose to nearly £2,920,000 in 1887–1888, and in 1888–1889 attained the terrible level of £9,400,000.
Nevertheless, in spite of many and serious shortcomings, the long series of Depretis administrations was marked by the adoption of some useful measures. Besides the realization of the formal programme of the Left, consisting of the repeal of the grist tax, the abolition of the forced currency, the extension of the suffrage and the development of the railway system, Depretis laid the foundation for land tax re-assessment by introducing a new cadastral survey. Unfortunately, the new survey was made largely optional, so that provinces which had reason
