“In spite of considerable burdens which were occasioned by the revolution, and left as a legacy to the present government—in spite of extraordinary expenses caused by the reorganization of the army—in spite of numerous contributions towards the encouragement of public works, the state budget, which, at the commencement, exhibited a tolerably large _deficit_, has been gradually tending towards equilibrium. I have had the honor recently of pointing out to your Excellency, that the deficit of 1857 has been reduced to an insignificant sum, consisting for the most part of unexpected expenses, and of money reserved for the extinction of the debt. The taxes remain still much below the mean rate of the different European States. A Roman pays the state 22 francs annually, 68,000,000 being levied on a population of 3,000,000. A Frenchman pays the French government 45 francs, 1,600,000,000 being levied on a population of 35,000,000. These figures show, demonstratively, that the Pontifical States, with regard to so important a point, must be reckoned amongst the most favored nations. The expenses are regulated on principles of the greatest economy. One fact is sufficient. The civil list, the expenses of the cardinals, of the diplomatic corps abroad, the maintenance of Pontifical palaces and the museum, cost the state no more than 600,000 crowns (3,200,000). This small sum is the only share of the public revenue taken by the Papacy for the support of the Pontifical dignity, and for keeping up the principal establishments of the superior ecclesiastical administration. We might ask those persons, so zealous in hunting down abuses, whether the appropriation of 4,000 crowns to the wants of the princes of the church seems to them to bear the impress of a proper economy exercised with respect to the public revenue? AGRICULTURE—DRAINING THE CAMPAGNA—PRISON DISCIPLINE—ADMINISTRATION OF CHARITABLE INSTITUTIONS—ABUSES—JUDICIAL SYSTEM, ETC.