During the same period the assumption of the Venetian and Roman debts, losses on the issue of loans and the accumulation of annual deficits, had caused public indebtedness to rise from 92,000,000 to 328,000,000, no less than f 100,000,000 of the latter sum having been sacrificed in premiums and commissions to bankers and underwriters of loans.
Among a variety of premiums awarded by the state are those for the best cultivated estates and for irrigation works, and to the owners of the best stallions and brood-mares.
Inasmuch as the debenture stocks and preference shares would have to be redeemed in 1911 at premiums ranging from 3 to 5 per cent., the state would have to pay the company £253,000 in excess of the total of the outstanding securities in order to enable the ordinary shares to receive par, and in the council's view this payment would diminish the p robability of the Post Office being able to afford a substantial reduction in the telephone charges.
In addition to an initial endowment by the state, part of the annual income of the fund is furnished in various forms by the state (principally by making over a proportion of the profits of the Post Office Savings Bank), and part by the premiums of the workmen.
This sum consists of 4,240,000 of naval expenditure proper, 220,000 for naval pensions and 380,000 for premiums upon mercantile shipbuilding.