The situation went from bad to worse, the deficit in the budget increased, the gendarmery, which received no pay, became insubordinate, and crime multiplied.
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.
Per milreis (the official valuation adopted in 1906), the budget for 1907 provided for a revenue of 353,590,593 milreis and an expenditure of 409,482,284 milreis, showing a deficit of 55,891,691 milreis.
During the four years 1883-1886, both inclusive, An era of the aggregate deficit amounted to E.2,606,000.
The management of finance was scarcely satisfactory, for though Giolitti, who had succeeded Magliani and Perazzi at the treasury, suppressed the formers illusory pension fund, he lacked the fibre necessary to deal with the enormous deficit of nearly 10,000,000 in 1888-1889, the existence of which both i Perazzi and he had recognized.
The deficit in the treasury made it inevitable that the gold reserve should be used to meet current expenses.
At Antonelli's death the Vatican finances were found to be in disorder, with a deficit of 45,000,000 lire.
If a surplus remained to the Caisse after making good such deficit the surplus was to be divided equally between the Caisse and the government; the government to be free to spend its share as it pleased, while the Caisse had to devote its share to the reduction of the debt.
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.
If it exceeds this, the stock of fresh water held in the interstices of the rock, and capable of flowing towards the well, must disappear; and the deficit between the supply and demand can only be made up by water filtering from the sea and reaching the well at first quite free from salt, but sooner river water whatever.