amounted to 3,000,000,000 leva. In spite of this all the needs of the government were not provided for. The government had been unable to find new revenues. Recovery was difficult on account of the exhaustion of its national industries. The budget would show a deficit of 200,000,000 leva. To increase the revenues the gov ernment would increase direct taxation.

In Bulgaria all parties in preparing their budgets had always endeavored to spare as much as possible the agricultural class, which forms almost 90 per cent of the population. This was especially true of the Agrarian party, which in 1920 was in full control of the government.

DEFENSE. The peace strength of the army before the war was about 59,900 officers and men. Its strength during the war was about 500,000 men. The armistice was granted Sept. 30, 1918, and demobilization followed at once. The treaty of Neuilly, Oct. 27, 1919, limited the total military forces in the future to 20,000 men and prohibited any measures of mobilization. It permitted the voluntary enlistment of a frontier guard of 3000 men and aside from these it limited the number of police, customs officials, gendarmes, etc., to 10,000. The possession of military or naval aircraft was forbidden; the importation and exportation of munitions of war were prohibited; and the manufacture of arms and munitions was to be confined to a single factory under state control. As to the naval forces, Bulgaria had to surrender all warships and submarines and was allowed to retain only a few torpedoboats and motor-boats on the Danube and along the coast.

GOVERNMENT. The executive power is in the King and a Council of Ministers nominated by him. The legislative power is in a single chamber called the Sobranje, whose members are elected by universal manhood suffrage for four years, though the chamber may be dissolved at any time by the King. The King's consent is necessary to the measures passed by the Sobranje. There is also a special large assembly known as the Grand Sobranje containing twice as many representatives as the regular assembly, which is elected in the same manner and has to do with all questions involving changes in the constitution, the acquisition or cession of territory, and vacancies on the throne. Boris III succeeded on the abdication of his father, Oct. 4, 1918, and a new cabinet was appointed Oct. 14, 1919, which as reconstituted in April, 1920, comprised the following members: Prime minister, Minister for Foreign Affairs, and Minister of War, M. Stambulinski; Minister of the Interior, M. Dimitroff; Minister of Justice, Dr. Djidroff; Minister of Commerce, M. Athanasoff; Minister of Agriculture and Minister of Finance, M. Daslakiff; Minister of Public Works, Alexander Stambolisky; Minister of Posts and Railways, M. Torlakoff; Minister of Education, M. Kaloff. The election to the Sobranje on March 31, 1920, returned the following representatives of the various parties: Agrariana, 1200; Advanced Socialists, 50; Moderate Socialists, 39; Democrats, 39; Popular Party, 19; Radicals, 8; Progressives, 8: National Liberal, 1.

THE TREATY. As was said in the last YEAR BOOK, the treaty with Bulgaria was signed at Neuilly near Paris, November 27. The chief territorial and political clauses were as follows: The cession to the principal Allied and associated Powers of Thrace to dispose of as they saw fit,

but with the assurance that Bulgaria should have an economic outlet to the Egean Sea; slight change of the western frontier to the advantage of Serbia; addition to Bulgaria of a small tract of Turkish land; the question of the cession to Roumania of the Bulgarian port of the Dobrudja to be left open; Bulgarian recognition of the independence of Jugo-Slavia; protection of racial minorities. The principal military features were the surrender of warships, etc.; the demobilizing of the army, and its limitation in the future to 20,000 men; the limitation of the manufacture of war material. The essential point in the financial terms was the payment as reparation of $445,000,000. As among the other Central Powers, there was great dissatisfaction with the terms of the treaty and they were regarded as a violation of the principles laid down by President Wilson. Prominent Bulgarians declared that every one of the Fourteen Points had been violated or disregarded. It was said, for example, that it was a gross violation of both spirit and letter that Macedonia with a Bulgarian population of 1,250,000 should be handed over to Serbia and Greece; that the Dobrudja should be handed over to Roumania when the Roumanian population was less than 7000 out of a total of 275,000; that Thrace, where the overwhelming majority was Bulgarian and Turk. should be given to Greece; and that a strip of land containing a Bulgarian population of 92,000 and no Serbians should be annexed to Serbia. There was also much complaint of the severe financial burdens laid upon the country by the treaty. Bulgaria had to pay an indemnity of 2,250,000,000 francs in gold which at the normal rate of exchange would be $450,000,000. financial situation was made worse by the low rate of exchange. The treaty was characterized as blundering and vindictive in that it imposed a burden too heavy for the country to bear and at the same time took away valuable territories which might have helped her to pay it. Nevertheless, the government repeatedly professed its intention to carry its terms out faithfully.

The

ELECTIONS. Elections to Parliament were held March 28. Already in January the government was weakened on account of industrial unrest and movements against the dynasty. The elections reduced the Socialist representatives from 39 to 9. The distribution of seats among the party groups was as follows: Agrarians, or Peasants' party, 110; Communists, 50; Democrats, 23; Populists, 16; Socialists, 9; Progressives, 7; Radicals, 7; Liberals, 3; Ghenadievists, 3.

On April 19th, when the new Parliament opened, the Prime Minister, Stamboulinsky, announced the resignation of the non-Agrarian members of the Ministry. The ministerial programme emphasized the need of pushing actively the work of reconstruction and the willingness of the government to resume coöperation with the former enemies.

Municipal elections in October did not reveal any marked change in the relative strength of parties. In the country districts the peasants prevailed and in the towns the strength of the Communists, Democrats, and Liberals remained about the same. A congress of the Macedonian Societies was held at Sofia in October. It declared for social and political solidarity while requiring the strict observance of the treaty.

RECONSTRUCTION. The reconstruction of the country had proceeded satisfactorily since the