After the withdrawal of the restriction against the companies erecting trunk wires it became evident that the development of the telephone services throughout the country would be facilitated by complete intercommunication and uniformity of systems, and that economies could be effected by concentration of management.
By economies and new taxes Sella had reduced the deficit to less than 2,000,000 in 1871, but for 1872 he found himself confronted with a total expenditure of 8,ooo,ooo in excess of revenue.
I~In home affairs his administration was weak and vacillating, nor did the economies effected in naval and military expenditure and in other departments suffice to strengthen the position of a cabinet which had disappointed the hopes of its supporters.
Baron Sidney Sonnino, minister of finance in the Crispi cabinet, found a prospective deficit of 7,080,000, and in spite of economies was obliged to face an actual deficit of more than 6,ooo,000.
Economies for more than 1,000,000, were immediately effected, taxes, calculated to produce 2,440,000, were proposed to be placed upon land, incomes, salt and corn, whi]e the existing income-tax upon consols (fixed at 8% by Cambray-Digny in 1868, and raised to 13.20% by Sella in 1870) was increased to 20% irrespectively of the stockholders nationality.