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GREECE, in the modern sense, is a state which obtained its independence from Turkey by force of arms in the earlier part of the 19th century, and was declared a kingdom in 183o. Initially it consisted of a small area within the narrowed and dissected tongue of land which prolongs the Balkan peninsula to the south, together with some of the islands of the Aegean Sea. It did not include even the greater part of the lands where Greeks predomi nated in the population, and where the Greek mode of life was that best adapted to the natural conditions. Nor, as the sequel showed, did it contain productive areas enough to form the eco nomic basis of an independent unit in the modern world. In the period between the date of the founding of the kingdom and 1923, when by the Treaty of Lausanne new changes were made in the frontiers, the Greek state underwent a progressive, though not uninterrupted, process of territorial expansion. Although that expansion took place at the expense of Turkey, it was not, as might be supposed, only a process of "redeeming" more and more Greeks from the control of Turkish overlords. Such an extension over lands occupied predominantly by peoples of Greek sympa thies did occur, though it was not complete. In addition, particu larly in the period which opened with the Balkan wars of 1912-3, there was a spread into areas, such as Macedonia and Thrace, where the Greek element was far from being the only one, and where the national sympathies of the existing inhabitants were not regarded as of prime importance. The possession of these areas did, however, offer certain well-marked economic advantages; in particular they include plains and basins capable of large-scale grain production. The result is that the Greece whose frontiers were delimited by a long series of treaties, culminating in that of Lausanne, is not geographically a unit.

Modern Position.—Almost as important are the facts that, by the beginning of the year 1925, all the lands included within the Hellenic Republic, which was established in 1924, were inhabited by a predominantly Greek population, and that only comparatively small numbers of Greeks lived outside their limits. This was the result of vast migrations which, beginning with the Balkan wars, culminated in the period 1922-4, when some 1,350,000 Greek refugees were ejected from Asia Minor, and had to find homes within the Greek state. Many of these have been settled in Greek Macedonia and Greek Thrace, from which large numbers of Turks were removed to Anatolia. There had been earlier mi grations within the peninsula also which had reduced the number of non-Greek peoples within these areas.

These enforced movements, which brought most of the scattered Greeks of the Near East within the ring-fence of the enlarged Greek state, were a complete reversal of a long historical process. for, from the Classical Period onwards, the lands which are geo graphically Greek have always been centres of dispersion; a move ment inwards towards a centre is quite a new phenomenon in Greek history. The two outstanding features of Greece as delim ited in the post-war period are thus that it contains a predomi nantly Greek population settled within an area not all of which is suitable for the characteristic modes of life, or has a tradition of Greek culture. Further, while in the earlier stages of its existence Modern Greece contained a proportion only of the Greeks of the Mediterranean area, the majority of these now live within its borders. Before the years when frontiers in what had been Turk ish lands began to change with startling rapidity, there were two groups of Greeks, those of the kingdom, and those living in other lands to whom the kingdom represented an idealised motherland. Since the end of 1924 the numbers of the latter have been greatly diminished and the two groups are faced with the need of living together within a limited and yet diverse territory.

Greece has an area of about 50,000 sq. miles, not much less than that of England, and an estimated population of about 6i- mil lions. It is thus scantily peopled, as indeed one would expect from its generally mountainous and barren nature. In the island of Crete it extends south of lat. 35', and in Thrace approaches though it does not reach lat. 42°. Its northern limit thus reaches the latitude of Rome, its southern that of Sfax on the east coast of Tunisia, and the Peloponnesus or Morea corresponds in position to the island of Sicily. The first Greece, that of 183o, lay wholly in latitudes corresponding to those of the extreme south of Peninsular Italy and the island of Sicily.

Original Greece.

That original Greece consisted of (I) The Peloponnesus, the almost insular prolongation of the Greek penin sula proper, to which it is attached only by the low and narrow Isthmus of Corinth, now cut through by the Corinth Canal; (2) a part of the Greek peninsula proper; (3) certain of the Aegean islands. Till the troubled period which began with the Balkan wars the additions were comparatively small. The most notable were the Ionian islands (1864), and the plain of Thessaly (1878), in the northern transitional area where the Greek peninsula begins to merge into the wider one to the north. The last period brought the addition of more islands, including the large one of Crete, and of the northern continental strip from the line of the lower Maritsa westward to the shores of the Ionian Sea. It brought also the bid for a part of the western shore of Asia Minor, and the failure of that bid, with the resultant expulsion of the Asiatic Greeks. Up to 1913 Turkey was the enemy, and the struggle was in essence one to free from its grasp territories which from the Turkish standpoint were purely marginal and relatively insig nificant. In the later period not only was Turkey fighting for her existence but the Greek advance to the north brought them into direct contact—and sometimes conflict—with the Balkan nations of Serbia and Bulgaria and the incipient Albanian nation. Nor were these states the only ones. In so complex and interlocked a grouping of political units as is Modern Europe no set of small states can be allowed to work out its destiny unhampered external interference; at every stage the greater powers took a hand if not always in the fray at least in the settlements.

The frontiers of Greece were thus fixed as the result of the interaction of two sets of forces, the Greek national spirit acting from within and the pressure of other peoples imposing checks from without. That national spirit again was in origin a response to a definite and highly peculiar set of natural conditions which prevail in parts of the areas surrounding the Aegean. Any account of the geography of the Greek lands should start from the region where these conditions show their fullest development, and where therefore the characteristically Greek spirit may be expected in its most typical form.

The Greek Islands.

There can be no doubt as to the position of this region. From the very beginnings of history that particular type of culture which for convenience we call Greek, using the word in a very wide and generalised form, has been maritime, and certain islands and island groups have printed it with its most distinctive features. One island group in particular must be noted. To the south of the Aegean, forming a broken bridge between the Greek mainland and Asia Minor, lies a roughly circular archipelago of small islands, the Cyclades. Nearly in the centre of the group lies the small island of Syros (Syra) with the very much smaller and rocky island of Delos to the east of it. Much further to the south, separated by an island-free stretch of sea, lies an island fes toon, forming an interrupted semi-circle between the extreme south of the Peloponnesus and the south-east of Asia Minor. Crete, the central, and by far the largest island of the festoon, may, in relation to the Cyclades, be regarded as "continental." It has an area of 3,328 sq.miles, while Naxos, the largest of the Cyclades, extends only to 173 sq.m., Syros to 31 sq.m. and the islet of Little Delos only covers about 1 sq.m. If Crete was the seat of the development of the first great Aegean civilization, that of the Minoan period, yet it may be said that the culture type received a great part of its specific imprint in the smaller islands.

Particularly significant in this connection is the way in which Syros (Sera) and Delos leap into prominence at successive periods of history. In the Aegean Copper Age (300o-2400 B.c.) the Cy clades, with Syros as the commercial capital, were a great centre of Aegean trade. That trade had a varied basis. In the first place the islands contain a variety of useful rocks and minerals, some of which have a limited distribution of Mediterranean Lands. Particularly notable are the obsidian of Melos, so important in early days since the flint of other parts of Europe is absent in Mediterranean Lands; the marble of Paros and Naxos and the latter's emery; the metallic ores of Seriphos of which the small supplies of copper were especially valuable in early days ; and the widely distributed potter's clay. Second the number and arrange ment of the islands, combined with the nature of the prevailing winds, made primitive navigation easy. Commodities with which to trade, and an environment which encouraged the growth of a sea-faring population, might not have sufficed, however, to give the men of Syros (Syra) and the other islands their significance as traders and middlemen had it not been for subsidiary causes. Among these were such facts as that the resources of the islands are strictly limited, even when supplemented by fishing, so that a powerful motive existed for developing sea-trade ; that ease of navigation is not limited to the archipelago but is characteristic of a wider surrounding area ; and that the lands which can thus be reached have both greater and more varied resources. Thus there was not only the possibility of multiple contacts with other peoples, but a willingness to learn, a susceptibility to new ideas, were conditions of survival. Even in the Copper Age the islanders had learnt to stimulate trade by working up their own raw ma terial, and their weapons, their pottery, their marble vases and figurines were widely distributed.

That first predominance of Syros (Syra) as a Cycladean centre was lost as Crete rose to greatness in the Bronze Age, and the main seaways shifted further south. It has, however, been gen erally true that whenever there is no part of the surrounding area of outstanding importance then the advantages of the central position of the Cyclades display themselves by the rise of a great mart within. Thus during the earlier part of the 19th century, when Athens and its port of Piraeus were slowly recovering from the effects of Turkish misrule, it was on Syra that one of the chief ports of the Eastern Mediterranean was established. Its impor tance only declined as the Piraeus developed. Delos, sacred formerly to Apollo, whose reputed birthplace it was, but of no importance except for its harbour, shows similar conditions. In the 5th century B.C. it was the centre of the marine confederacy established under the presidency of Athens. Some centuries later it became a great trade centre, especially for the slave trade. During the Turkish period both Syra and Delos became centres of piracy, piracy being a natural development under unfavourable conditions in areas which in happier times are foci of legitimate trade. That the same qualities which made the Aegean folk great sea-traders made them also effective pirates is shown by the char acteristic habit of building the villages on sites relatively remote from the sea and out of sight from it—so as to offer no temptation to the passing sea-brigand, and give to the inhabitants a chance of a warning before an attack.

Greek Culture and its Geographical Basis.

If then the Cyclades may be regarded as the source from which some of the essential elements of Greek culture flowed, a question arises as to the characters to which they owe this distinction. Not, it seems clear, only to the island position combined with Mediterranean relief, natural vegetation and climate ; for a similar combination occurs in, e.g., the Dalmatian islands where an indigenous culture of high standard did not arise. Nor can it be associated directly with the Mediterranean crop plants and methods of cultivation, for the plants can be grown, by identical methods, in many other parts of the Mediterranean Lands. Nor can the importance of the varied, if limited, mineral resources be over-emphasised, for Sar dinia and Corsica show that parts of the western Mediterranean have equally varied and more extensive deposits. The root of the matter is to be sought in the combination of ease of movement over the sea, and the diversity and natural advantages of the regions which could be reached by sea-routes. Both require fuller analysis.

The Aegean is characterised both by its multiplicity of islands and by the articulation of its eastern and western shores. Of the islands the Cyclades and the southern semi-circle have been already noted. The Northern Sporades, or "scattered islands," may be mentioned as another group which, with Lemnos and other islands to the north-east, form a third broken bridge between the European and Asiatic shores, of special importance because it leads, as it were, to the entrance to the Dardanelles and thus to the Black Sea. In addition to these linking belts both shores show a multiplicity of coastal islands and peninsulas. The former, as is notably the case with the large island of Euboea off the coast of Greece, may be separated by channels so narrow as to appear part of the mainland ; the latter are complex and diversified, enclosing sheltered gulfs and bays. Everywhere, that is to say, the land is deeply inter-penetrated by the sea; everywhere havens innumerable are available. Here then is no empty, inhospitable sea.

Further, the climate is highly favourable to the sailor, at least during the summer season. Fog is rare and the bright sunshine means that the alternation of land and sea breezes takes place with great regularity. The land breeze will take the mariner out of his haven in the early morning bef ore the sun has come to its strength, and the sea breeze can be used to bring him back to his own or another harbour. These alternating air currents prevail in the neighbourhood of land, that is, aid the sailor at the two critical points of his course. But in the open the dominant summer winds, particularly in July and August, are those northerly ones which the Ancient Greeks called Etesian. In the Aegean the Etesian wind has a north-easterly direction, and its late summer strength is important because it brings home adventurers who have gone in search of the corn, the fish and the furs of the Black Sea Lands. More than this, the wind sets going currents which, flowing from north to south in the centre, with a return in the opposite direc tion along the coasts, facilitate to-and-fro journeys. Finally, winds and currents alike bring traffic from the Cyclades to Crete. But Crete is already outside the Aegean air circulation, and more exposed to the winds which blow down the west coast of the Greek peninsula and are chiefly north-westerly. Those winds carry ships towards Egypt and the Asiatic margin.

Crete faces northward to the Aegean world and to the wider and contrasted worlds which can be reached from its north-eastern corner; eastward lie the copper island of Cyprus and the Syrian shore ; southward is Africa and that great centre of early civiliza tion, Egypt. It was certainly the great intermediary by which the culture of the Orient was transmitted to Europe, but it was through the intervention of the smaller Aegean islands that that culture was adapted and diversified, introduced into the coastal areas of the adjacent mainlands and became essentially Greek.

The Greek Lands.

Beginning then with this conception of Greek culture as an island product, limited in its development on the smaller islands by want of space, and spreading inevitably into those parts of the surrounding lands which were sufficiently penetrated by the sea to show certain island features, we are in a position to make an intelligible survey of the areas politically Greek.

I. The Islands.—The islands form naturally a first division. While the Cyclades and the Northern Sporades formed part of the first Greece of 183o, and the Ionian islands, from Corfu in the north through the currant-producing islands ending in Zante, formerly a British protectorate, were ceded in 1863 and handed over in 1864, the fate of the others was not decided till the first quarter of the present century. Crete was ceded by Turkey finally in 1913. The previous year, during the war between Turkey and Italy, the large island of Rhodes, off south-western Asia Minor, and the twelve smaller neighbouring islands forming the Dodecanese, were occupied by the latter power, and remain in its possession. Greek claims to the remaining Aegean islands have been admitted with the exception of Imbros, Tenedos and the small Rabbit islands, retained by Turkey as a necessary part of the defences of the Dardanelles. With these exceptions all the Aegean islands are now politically Greek.

They have always been very definitely Greek so far as popula tion is concerned, for the possible modes of life, including cul tivation of the garden type, fishing and sea-trading are those for which the Greeks show more aptitude than any other of the Near Eastern peoples. Nor is there, as in parts of the Greek main land, any considerable stretch of territory where these occupa tions are excluded, which might invite settlement by non-Greek peoples. In many cases also the islands enjoyed a relative free dom during the Turkish period which helped to maintain a na tional spirit, and enabled the islanders to carry on their tradi tional role of guardians and disseminators of the characteristic culture. Even the migrations constantly tending to take place— inward as conditions proved particularly intolerable on the main lands east or west, outward, as when Athens and the Piraeus were able to take over much of the trade of Syra—were but a repetition of those which had occurred throughout historical time.

The Ionian islands include Corfu, Leukas (Santa Maura), Cephalonia, Ithaka and Zante, with others. They owe their im portance primarily to the fact that Cephalonia, Ithaka and Zante, with parts of the adjacent mainland, constitute the main cur rant-producing area of the world. The plant requires for com plete success a delicate combination of conditions of soil and climate, the former requiring to be dry, stony and lime-contain ing, and this comparatively small strip of country is very favour able. It is hardly too much to say that at the outset Modern Greece had its basis in the currant trade, hence the intense de sire for the incorporation of the Ionian islands. But dependence on a luxury product of this kind involves great risk, especially when the area of production is so small ; for a long period the whole economic life of Greece depended on the currant crop, itself limited to a small part of the state territories, and there forming practically the only crop.

The question at once arises why the typical Mediterranean products, which form important articles of export from such countries as Italy, Spain and the Atlas lands, were not also available in quantity in Greece. Such products are yielded by many of the islands, both Ionian and Aegean, in considerable amount. On the other hand production, in relation to home de mand, is generally limited on the mainland, so that much of that demand has to be met by island produce, thus reducing the sur plus available for export.

In detail it may be noted that the olive, though widespread, is most extensively grown in the Peloponnesus and the Ionian islands. Olive oil stands third in the list of exports, but by value it ranks much lower than currants, owing to the fact that it is used universally in the Greek lands, and not all of these can supply their own needs. Wine is even more widely produced, though again the islands rank high among the producing areas. Some, such as Cephalonia in the Ionian group, and Santorin, Melos and Naxos in the Cyclades, yield wines which are of value in external commerce, but most of the Greek wines are of poor quality, and rendered distasteful to non-Greek palates by the addition of resin obtained from the Aleppo pine. This addition increases its keeping and, it is said, also its thirst-quenching quali ties, but practically limits its consumption to Greek lands Oranges and other citrus fruits are produced especially in Corfu, where the moist climate and mild winters are very favourable, also in some of the Cyclades, such as Naxos, in the Peloponnesus, espe cially the south, as well as in Chios and Crete. But as we have seen the last two did not become Greek till the present century, and production on the Greek mainland is generally not extensive, except in the south of the Peloponnesus. The line marking the northern limit of the tree in the mainland runs surprisingly far south, for it crosses Attica, some 5° lat. south of the orange-pro ducing region of the French Riviera. This is associated with the absence of any transverse mountain range in the Greek peninsula to give protection from continental winds. Greece as a whole is thus not one of the great orange-exporting countries of the Medi terranean, and this is true generally of other fruits, despite their wide extension, particularly in the islands.

The crop which ranks in the post-war period as most important so far as the export trade is concerned is, curiously enough, to bacco, exports of tobacco greatly exceeding those of currants. If the Greek extension northwards had as one of its prime motives the desire to obtain cereal-producing lands to supplement the small yield of the Greek lands proper, another reason, equally important, was the need of obtaining areas which would produce tobacco as an article of export. Parts of Macedonia are particu larly well suited to tobacco production, but it is very interesting to find that the cultivation of the plant is spreading in the islands, sometimes at the expense of the vine. This must be regarded as a reflex effect on the old lands of the acquisition of the new, for the cultivation of "Turkish" tobacco was well established in the northern areas before it became Greek. In the Cyclades, Amorgos produces tobacco for export, and great efforts are being made to extend its cultivation to Chios.

Generally it may be said that the islands produce among them all the characteristic Greek crops, but with the exception of cur rants, olive oil and as yet small amounts of tobacco, the greater part of their agricultural produce is absorbed by the home mar ket. If peace can be preserved, however, it is to be expected that the islands off the west coast of Asia Minor which became Greek at the last settlement, may increase their productivity to a notable extent. Chios, which is reputed to be the most fertile of all the Aegean islands, and showed a considerable increase of popula tion at the census of 1920, is a case in point.

2.

The Peloponnesus.—This may be compared to a hand, at tached to the arm-like Greek peninsula by an almost severed wrist. The thumb is formed by the Argolis peninsula, and while the fifth finger is missing, the other three are represented by elongated promontories, separated by the Gulfs of Laconia and Messenia. Between the most easterly of these promontories and the Argolis peninsula, with its girdle of islands, lies the Gulf of Nauplia. To the north the Gulf of Patras, widening beyond the narrows of the Strait of Lepanto into the Gulf of Corinth, is separated from the head of the Gulf of Aegina, or Saronic Gulf, by the isthmus of Corinth, about 3 z m. wide at its narrowest point, and falling to some 26o ft. above sea-level. Since even in ancient times small boats could be dragged across the portage of the isthmus, the Peloponnesus was always potentially an island, and with the piercing of the Corinth canal it has become actually insular. Further, no point within it is much more than 3o m. from the nearest sea.

It is all the more curious to find that in the life of the area the sea has counted for relatively little, and that in some respects it is more "continental," more Balkan, than are the parts of Cen tral Greece lying to the north of the Gulf of Corinth. The ap pearance of an Albanian element in the population may be as sociated with the presence of a central upland block, repeating many of the characters of the mountains which traverse the whole western side of the Balkan peninsula. But a small-scale relief map shows, particularly to the west, to the north and to the east at the head of the Gulf of Nauplia, coastal plains, and these one would expect to be in close connection with the sea. But except to the north, where the Gulf of Corinth with its ports gives free access to seaways, and, if to a more limited extent, in the east where Argolis juts out into the Aegean, pointing to the Cyclades and Crete, a certain remoteness from the main currents of Greek life, a remoteness summed up in the ancient contrast between Athens and Sparta, is characteristic. This has its geo graphical basis in the difficulty in making effective contact with the sea. Good ports are few and not always well placed in rela tion to areas of settlement. The land also tends to fall into series of compartments, more or less sharply separated from one an other. Even where, as in the case of the basin of Sparta, these take the form of fertile lowlands relatively near the coast, there are barriers to free communication which, however insignificant in themselves, have acted as checks to the transport of goods. Generally we may say that the characteristic settlement of main land Greece, well exemplified by Athens, consists of three ele ments, a rock of refuge, a productive plain and a port on the margin of the plain. But in the Peloponnesus the third element is either absent, or has only rarely a close relation to the other two.

The central upland is mainly though not wholly included in the modern department of Arcadia, and is surrounded by a peri pheral zone in which lowland basins alternate with mountains and uplands. This peripheral belt is included in the departments of Corinth and Argolis to the north-east and Achaia and Elis to the north-west, with those of Laconia and Messenia to the south. Along the northern border of Arcadia lie three mountain groups, all rising well above 7,00o ft., forming, from west to east, Olonos, Chelmo and Ziria. To the south of this mountain belt there stretches in eastern Arcadia an upland area of markedly karstic characters. Owing to the presence of the limestone rocks the streams tend to flow underground for much of their course, the water disappearing into great chasms, so that there is no surface flow to the sea. All the usual features of karst lands are present. Thus where the surface is covered by non-porous material, de rived from impure limestone rocks after the carbonate has been removed in solution, water is held up in lakes, such as those of Peneus and Stymphalus, or in swamps. The water level in the swamps varies with the height of the underground water-table, and maize can be sown on the wet land, to ripen as the water drains away in full summer. Springs are also abundant at the base of the rocks which surround the polyen, or basins, with their covering of red earth. These basins tend to occur in rows, and in classical times each was the site of a settlement, placed where spring water was available, and maintained by the produce of the lands. To-day only Tripolitsa is of any importance, and it con tains but 14,000 inhabitants. It lies on the railway which crosses the Peloponnesus diagonally, connecting Corinth with the port of Kalamata on the Messenian Gulf. The basins generally yield wheat and maize in the damper areas, with vines on the drier slopes and fruit-trees, which are of the Central European rather than the Mediterranean type because of the elevation (over i,800 ft.). The aloofness of this part of Arcadia is thus well marked.

Western Arcadia, despite the fact that a greater variety of rocks is present, limestones ceasing to predominate, is in scarcely bet ter case. It has a normal river system, being drained by the Alpheus and its numerous tributaries. This has encroached to some extent on the gathering ground of the Eurotas, the only other considerable river of the Peloponnesus, which flows south ward through the basin of Sparta to the Gulf of Laconia. The Alpheus, after leaving Arcadia, enters the Ionian Sea through Elis and Achaia. It does not, however, connect western Arcadia with the sea, for both the main stream and its tributaries pass through steep-sided gorges, which form a great obstacle to munication. Though there are fertile sections on the course of the streams, western Arcadia as a whole is a poor country, mostly devoted to stock-raising, especially of sheep, and with remnants only of its ancient forests.

To the north-west lies the department of Elis and Achaia, hilly in the interior but with a fairly extensive coastal plain. This forms an important part of the currant-producing lands of Greece, but in classical times was aloof and neglected. The ancient town of Olympia, on the lower Alpheus, reminds us that it was neutral ground, on which the various Greek peoples could meet in friendly rivalry. Patras (62,000) has taken over under modern condi tions the earlier function of Corinth, to which it is connected by a railway. It is the largest town in the Peloponnesus.

Passing eastwards along the Gulf we come to the terraced area of Corinth, typically Greek in that the productive lands lie in close relation to the sea. In early days Corinth had a double im portance in its command both of a seaway and a land route. So long as the journey round Cape Matapan in the south repre sented a dangerous adventure, its possible avoidance by the isthmus portage had a value which it lost with improvements in methods of navigation. The town at the same time guarded the road into the Peloponnesus from the north.

The Argolis peninsula is for the most part barren and moun tainous, though the islands and some fertile areas at its extremity had importance in classical times. Its great interest, however, lies in the fertile though dry Argos basin at the head of the Gulf. This plain, despite the low rainfall due to the sheltered position, and the limited possibilities of irrigation, has always been im portant. It is on the road to the north, for a pass leads over to Corinth ; the ruins of Mycene and Tiryns recall the fact that it is within reach of Crete, while the modern town of Argos stands on the site of the ancient one. The port of Nauplia (7,000) was the first capital of Modern Greece.

The hill country of central Arcadia is continued southwards into two ranges which form the promontories bounding the Gulf of Laconia. The eastern range, the Malevo or Parnon, does not rise much above 6,000 ft., but the western, the Taygetus, bears in Hagios Elias (7,904 ft.) the culminating point of the Pelopon nesus, and is peculiarly bare, barren and rocky. Between the two what was probably once a continuation of the Gulf has been filled up by the waste brought down by the Eurotas river. It is not, however, a continuous plain, for a rocky bar, cut through by the stream in a gorge, divides the upper basin, containing the town of Sparta, from a swampy and unhealthy, though fertile coastal plain. The basin of Sparta, now as always the heart of Laconia, is small, under 5o sq.m. in extent, ringed round by mountains, but fertile and well-watered by the springs which bubble up at the base of the encircling rocks. The nearest road to the sea is by a difficult route across the Taygetus to the Messenian port of Kalamata, while the apparently direct route by the river is impeded by the rocky bar already mentioned. Further the Gulf coast is unsuited for the establishment of a good port, and the insignificant one of Gythion is some distance to the west of the Eurotas mouth. The Aegean coast of the eastern promontory is steep and inhospitable. Sparta has thus always been isolated, and despite the fertility of its basin, which yields olives with oranges and other fruits, it is now merely a small town.

Messenia is a softened, more open repetition of Laconia, with a westward outlook. The river Psamios represents as it were the Eurotas, and there is a similar if less marked division into an upper and a lower basin. But in addition to Kalamata (25,000) within the Gulf of Messenia, there are ports on the western coast, which is not inaccessible, for the mountains of Messenia are lower and less continuous than those of Laconia. Pylos or Nava rino, on the western coast of the most westerly promontory, has a fine harbour, little used because of the small hinterland. In Messenia the climate is milder and moister than in Laconia and much of the region is of great productivity. Currants are exten sively produced, also mulberry trees, olives, figs, oranges and there are even some date palms. Kalamata is the capital and has im portant oil and wine industries.

3. Central Greece.—This region extends from the great de pression marked by the Gulfs of Corinth and Aegina to where the transverse Othrys range forms the southern boundary of the plains of Thessaly. It presents at first sight an appearance of great complexity, especially on the east, where the great island of Euboea is separated from the mainland by the Gulf of Petalia and by a series of channels which at Chalkis narrow to the width of a river. But three quite simple sets of facts give the tz:ey to the structure. In the centre is a mountain backbone, forming the continuation of the Pindus range. Its constituent elements have a general north-to-south direction, and are broken off sharply to the south in the region of the narrows which separate the wider Gulfs of Patras and Corinth. Eastwards three ridges come off this main chain nearly at right angles. The most northerly is the already-mentioned Othrys range. Then comes Mt. Oeta (7,08o ft.), which is continued into a lower ridge extending in a south easterly direction through Phocis. Further south a longer ridge may be regarded as having its origin in Mt. Parnassus (8,064 ft.), and being continued through Helicon and the lower mountains which separate the lowlands of Attica from those of Boeotia. The ridge then bends southward to end in the promontory of Sunium. Parnassus is separated by a narrow valley, containing the temple town of Delphi, from the loftier Giona (8,242 ft.) to the west, the highest mountain of the first Greece.

These two sets of mountain ridges may be regarded as forming the skeleton of Central Greece. The third important structural element is constituted by a series of transverse depressions, partly filled up by recent deposits, and then forming the sites of the chief settlements since early days. They are best considered in relation to the transverse ridges, along whose margins they lie. The most southerly is the plain of Attica, lying at the base of the ridge which extends south-eastwards from Parnassus. Bordering as it does the Gulf of Aegina it shows a wonderful combination of advantages. North of the ridge, and south of that which forms a continuation of the Oeta massif, lies the plain of Boeotia. It is less favourably placed than that of Attica, in particular be cause it does not confront the open sea but only the channels due to the presence of the island of Euboea. It is, however, fairly extensive. and the draining of the former L. Copais has notably increased the area of cultivatable ground. A further point of in terest is that the depression to which it owes its origin is as it were continued beyond the central backbone, on the western side of the peninsula. There, in south-western Aetolia, is a lowland traversed by the river Aspropotamus, and the lagoon coast of Missolonghi tells the same story of faulting and depression. At the base of the Othrys range, again, a third area of depression is traversed by the river Spercheios which enters the Gulf of Lamia. This has likewise its counterpart on the west in the Gulf of Arta with its surrounding lowland.

All these three areas of depression include fertile lands, pro ducing the usual Greek crops, all contain modern towns, some times replacing old ones but often on the same site. But the plain of Attica with the town of Athens may be taken as illus trating the main features.

The plain consists essentially of the basins of Athens and Eleu sis, both fertile. Very important are the limestone hills which rise above the surface of the plain, one of which forms the Acropolis. Since, further, the limestones overlie non-porous rocks, and springs tend to gush out at the junction, there was, at least in early days, an adequate water-supply. The topography of the hills to the north, combined with the nature of the double isthmus of Megara and Corinth, separated by an intervening hill belt, forces the land road from the north to pass through the plain. Even more important is the wealth of ports on the north coast of the Gulf of Aegina and on its islands. If modern sea-traffic is concentrated on the Piraeus, in early times it was of much importance that the men of Attica could not only reach the sea at many points, but that the sea once reached was rich in sheltered havens.

Athens, at the time of the foundation of Modern Greece, was a miserable village, while the Piraeus consisted of only a few huts. Within a period of less than one hundred years it grew to be a great modern town with a population approaching 400,000. As compared with Patras, the other chief port of the old Greece, and that from which a considerable part of the exports is sent out, the Piraeus receives 6o% of the total import trade of Greece. If on the one hand the regular steamship services with Con stantinople and Smyrna go far to explain the direction of Greek ambitions, the extent of the connections throughout the whole Mediterranean Sea helps to explain that intense interest in politics with which the modern Greeks are reproached. The linking of the town to the main railway system of Europe has not altered the fact that its prime importance is a centre of sea-traffic and that in a part of the world where political frontiers have shown great instability. It is but natural that the modern men of Athens should be more intent on discussing ways and means of taking advantage of the constant changes in the surrounding lands than in cultivating a garden now too small to provide much for the dense population which occupies it.

Athens and the Piraeus form now practically a twin city, which shows the beginnings at least of considerable industries. The tendency for these to be established near the port is due to the fact that whether they depend mainly upon home-produced raw material or that obtained from non-Greek lands, this tends to be sea-borne. Among the industries which are developing rapidly are textiles, including cotton, woollen and silk goods : leather goods; soap and candles, based on local supplies of olive oil; metallurgical industries, based largely on island products ; chem icals, including fertilisers, phosphates being largely imported from Tunisia; the beginnings of an engineering industry, and so forth.

4. Northern Greece.—North of a line from the Gulf of Arta to the crest of the Othrys range a material change occurs in the characters of the lands. It has been expressed by saying that to the south is the land of olive groves, to the north that of oak forests : to the south are skies eternally blue, to the north those dimmed by cloud in summer no less than in winter. As a pic turesque statement of a contrast the statement may serve, for already there is something continental in the landscape, a re placement of the Greek multiplicity of detail by broader struc tural features. No minute study of the map is needed to bring out the fundamental division into an eastern and a western sec tion. The western, mountainous, aloof, backward, forms Epirus, "the continent," passing without natural division line into South ern Albania. Eastward, mountains and hills ring round the broad plains of Thessaly, productive but giving a less full life to their cultivators than do the smaller basins of Central Greece; largely cut off from the sea despite their extensive river system ; ac cessible, if with some difficulty, both from the north and the south by land ; forming granaries eagerly fought for and held with tenacity by often alien overlords. Even the productivity itself is clouded by a doubt. The multifarious crops of the true Greek lands have the great advantage that no natural calamity can diminish the yield of all throughout the long growing sea son. But Thessaly, with its wider spaces, its fewer but more ex tensively cultivated crops, shares already the continental risk of crop failure, for the weather prevailing during a short period determines whether there shall be famine or plenty.

Little need be said of Epirus. It is mainly an upland, karstic area, fitted especially for sheep-rearing, and showing all the usual karstic features. There is a considerable Albanian, and also a Vlach element in the population, but neither people presents a "racial" problem, as their members are easily assimilated by the Greeks. The coast is inhospitable so that there are no ports of any significance, and internal communication, as usual in karstic areas, is difficult. As exceptions to the general statement that the land is mainly fitted for pastoral industries, the fairly exten sive plains which fringe the north shore of the Gulf of Arta may be noted. There are also upland basins which include fertile lands, the most important being that in which stands Jannina, the departmental capital. It is placed on the shores of a con siderable lake, which has the usual karstic feature of varying greatly in extent and depth at the different seasons of the year, as the level of the ground water in the surrounding limestones varies. As usual maize is grown on the lands which are submerged in winter and dry out in full summer ; the fact is interesting because it must mean that such areas can support a denser popu lation than in the days before the discovery of America brought this useful cereal to the Old World.

Thessaly consists essentially of two lowland basins, the western centring round Trikkala (24,000) and the eastern round Larissa (2 7,000) . The two basins are linked by the Peneios river which cuts through the rocky ridge which separates them. But after its north-easterly course through the Larissa plain the river is constrained to cut through the wider and higher upland which separates the plain from the sea. This it does in the beautiful Vale of Tempe, lying between the great massif of Mt. Olympus (9,793 ft.) to the north, and the much lower Ossa to the south. Still further south the same ridge bears Pelion on its surface, and is continued into the Magnesian peninsula, which bends round in a hook-shaped promontory, almost enclosing the circular Gulf of Volo. That Gulf is itself a depression comparable to the two plains, but smaller and flooded with sea-water, and it has a similar upland rim. By its northern side stands the port of Volo, communicating by passes across the rim both with Trikkala and with Larissa, and thus serving both. The main railway is forced close to the coast by the Olympus massif, but thereafter traverses the Larissa plain and enters Central Greece after crossing the Othrys range.

Olympus itself is an outpost of the Macedonian upland, and separates the basins of Thessaly from the more important plain which centres round the great port of Salonika. Geographically, indeed, Thessaly, with its great estates, worked by poverty-stricken peasants, who still keep memories of the Turkish period, marks the transition to troubled Macedonia, with all its unsolved prob lems. Politically also it may be said that the inclusion of Thes saly within Modern Greece provided part of the stimulus which led to the Greek advance into Macedonia and Thrace, regarded as stages on the way to Constantinople.

5. Greek Macedonia and Thrace.—These new and truly con tinental lands, which have not yet adjusted themselves to the changed conditions resulting from the Turkish retreat, may be said to have their heart in the plain of Salonika. Structurally the plain is comparable to Thessaly, but a Thessaly with a difference.

Nor does that difference consist mainly, as one might suppose, in the open access to the sea, symbolised by the size of the town and port of Salonika. Salonika (263,000), second only in size to Athens, and the only other large town of the republic, did not in the days before the Greek occupation owe its importance to the surrounding plain, fertile and potentially productive as that plain is. It was the convergence of internal lines of communica tion upon the plain, the distant rather than the immediate hinter land, which determined the rise of a notable port here. Even the existing railway connections—to Belgrade via Uskub to the north ; to Monastir to the north-west ; to Constantinople to the east ; to Athens via Larissa to the south—hardly give an adequate picture of the extent to which it is the natural outlet of the greater part of the Balkan peninsula. It is a point of convergence of land-ways as Athens is a centre of sea-ways. Its significance is increased by the f act that the other north Aegean ports are poor in themselves, and have only difficult access to the interior. Prior to the Balkan wars the racial patchwork of Turkish Mace donia was reflected in the jumble of nationalities in Salonika, where Jews of Spanish descent formed the largest single element in a community which included representatives of all the Balkan peoples and foreigners in addition. It was described indeed as a kind of permanent fair, set up in a convenient spot, but having little relation to its immediate surroundings. Though some 70,000 Jews are said to remain, the population is now mainly Greek, and, as we have already seen, this is true also of the comparatively narrow strip which extends eastward to the Maritsa line. From a large part of its former hinterland Salonika, despite the Yugo slav Free Zone, is now cut off by political frontiers.

The Salonika plain is traversed by the Lower Vardar and its numerous tributaries, and it is to the size of the river that it owes its importance, owing to the way in which the main stream and the tributaries open up lines of communication. Otherwise it does not differ greatly, save in size, from the similar but smaller basins further east, such as those of Seres and Drama. Each member of the series shows much the same features—a low region, floored by waste from the surrounding hills, usually marshy and malarious, but suitable for the production of wheat and tobacco, particularly in the Drama basin, with maize, rice in the marshy areas, cotton and other crops. The higher, drier lands around yield vines and fruit-trees, mulberry trees for silkworm rearing and so forth. Even within the uplands proper, particularly that very extensive tract of upland which extends westward from the edge of the Salonika plain, basins occur in which a certain amount of cultiva tion can be carried on.

Salonika lies well to the east of the marshy Vardar delta, in a little bay at the base of the mountainous and trident-shaped Khalkidike peninsula. The most easterly of the prongs of the trident, that of Athos, bears the monasteries and hermitages of Mount Athos, forming an ecclesiastical quasi-republic, a relic of mediaeval Byzantinism on the edge of a world which is rapidly growing modern. All the monks belong to the Orthodox Church, but though Greek communities predominate, Russian, Serbian and Bulgarian ones also occur. The religious, to the number of about 5,000 (192o census), till their own lands, and through the Turkish period were guardians of the Byzantine tradition. Many of the monasteries are rich, owning fiefs on the mainland, and the usual accusations of ignorance, idleness and intrigue have been brought against their occupants. But there is something of the picturesque in this apposition of a modern and intensely realistic town, the object of many ambitions, and a remnant of the idealism of the Middle Ages.

A depression, marked by lakes, leads directly eastwards from Salonika across the base of the Khalkidike peninsula, but the main railway finds an exit at the north-eastern angle of the plain, and enters the lower Struma valley, which forms the productive basin of Seres. This has no port of its own, but the next basin, that of Drama, though not drained seawards by a river, has a fair port in Kavala, greatly coveted by the Bulgars. Opposite lies the wooded island of Thasos. From Drama the railway, by a somewhat difficult route over the rim of the basin, reaches the valley of the Mesta river, often regarded as forming the eastern limit of Macedonia. Beyond, in Western or Greek Thrace, lies a lowland area with a fairly dense population and having as port the poor harbour of Dedeagats, which was for a time Bulgarian. The Lower Maritsa forms the boundary with Turkey, but the town of Adrianople has been returned to that Power.

Here then, against a meaningless river frontier, ends a Greece which is inhabited by Greeks and yet not wholly Greek, a Greece blocked in its ambition of an advance to Constantinople, which has seen its nationals expelled from those parts of coastal Asia Minor where they formed the most progressive element in the population. What the future may hold none can say; but there can be no doubt of the interest of the problems involved. Here we have a culture of essentially island origin renewing through the ages the perpetual effort to find a broader basis on the adjacent mainlands, continually falling back as the peoples of the interior of those mainlands react. As a new element in that oft-renewed struggle we have the modern conception of the national state, with its supposedly homogeneous population, its needs for surplus wealth to be expended in armaments. An appar ently simple solution, based on the famous principle of nationality, has been arrived at—Greece has obtained new lands capable of yielding a surplus, the extra-territorial Greeks have been thrust within them, the non-Greek peoples removed. Is the solution a real one? Is there not a profound irony in the thought that part of the stimulus which led to its adoption came from an overseas land whose inhabitants have taken as their own basal principle that not race—whatever race may mean—not country of origin, but a life lived in common within a definite part of the earth's surface is what makes a nation? (M. I. N.) BIBLIOGRAPHY.-(i) General descriptions: T. Fischer in Kirchoff's Bibliography.-(i) General descriptions: T. Fischer in Kirchoff's Ldnderkunde der Europa (1893) ; A. Philippson, Das Mittelmeergebiet (4th edition, 1922) ; O. Maull, Griechisches Mittelmeergebiet (1922, bibl.) ; see also Griechenland in Andree's Geographie des Welthandels, I. (1926, bibl.) ; Ancel, Peuples et Nations des Balkans (1926, bibl. of French works only). (2) Political, Social and Economic Problems: Handbooks prepared under Direction of Historical Section of Foreign Office, Greece, No. 18, Islands of N. and E. Aegean, No. 64, Macedonia, No. 21 (published 192o, written earlier, bibl. mainly historical and eco nomic) ; E. Bouchie de Belle, La Macedoine et les Macedoniens (1922) ; A. A. Pallis, "Racial Migrations in the Balkans," Geographical Journal, LXVI. (1925) .

The complicated tale of Greek diplomacy and military action in the World War is told elsewhere. The victory of the allies over the central powers and the defeat of the Turkish armies in the field was followed by a Greek military occupation in Asia Minor during the long delay which ensued in concluding a peace treaty with Turkey. During that period the Greek army suffered disaster ending in hurried embarkation at Smyrna, as the result of an offensive against the reconstituted Turkish army. From that disaster recovery has been slow, and delayed by political changes and unrest. With an area of 140,135 square kilometres, Greece now has land frontiers extending only for 1,121 kilometres, but a very long coast-line with numerous harbours and inlets rendering the country particularly vulnerable to inroads from the sea, a point that has been realized since the influence of sea-power over the military situation in Greece was illustrated by the battle of Navarino (1827).

Present-day Army: Recruitment and Service.—Every citizen is now liable to military service, extending from Jan. I in the year of his loth birthday to the same date in the year of his 49th birthday. Certain exemptions are allowed for family or pro fessional reasons, or for physical unfitness. Voluntary enlistment is permitted, from the 18th birthday, to those not deprived of civil rights. The annual enrolment of recruits in the northern provinces takes place in April; in the southern provinces in October. There are 33 recruiting districts, each for one regiment of infantry. These are grouped in divisional or brigade recruiting areas, and these again into army-corps recruiting regions. Service with the colours in the regular army is for 18 months, followed by years in the first, and 8 years in the second reserve. Recruiting in the gendarmerie, which is organized and trained on a military basis and is under the ministry of war for these purposes, is by voluntary enlistment for 3 years of men under 3o; by re-enlist ments ; or by the voluntary enlistment between the ages of 19 and 25 of young men holding a leaving certificate from a sec ondary school, or a diploma of law. These become respectively non-commissioned or commissioned officers in the gendarmerie in due course. Their numbers do not exceed about 400 out of each class of army recruits.

Strength and Organization.

The budget effectives in the Greek army in 1927 numbered 67,121, including 7,121 officers (38 Generals, 136 Colonels) . The organization on a peace footing provides for 4 army corps (headquarters at Athens, Larissa, Salonika and Kavalla). 9 infantry divisions are with the army corps, and 2 divisions and an extra brigade directly under the ministry of war. There are also 2 cavalry divisions and an air force. An infantry regiment contains 2 battalions, each of four companies, of which one is a machine-gun company. A cavalry regiment is divided into two half-regiments each of 2 squadrons and a machine-gun group. There are II regiments of mountain artillery armed with guns and howitzers of various patterns (Schneider, Schneider-Danglis, and Skoda) of calibres from 65mm. to 1 o5mm. ; 4 regiments of field artillery (7 5 mm. Schnei der, 77mm. Krupp) ; and 3 regiments of heavy artillery armed with Schneider and Skoda guns and howitzers of 15o to 155mm. calibre. The Engineers include 3 regiments of sappers, I tele graph and I railway regiment and a pontoon battalion. There are also the usual services and departments, medical, supply and transport, pay, veterinary, etc.

The minister of war is the supreme head of the army in time of peace. His ministry includes a secretariat and departments, each under a director, for dealing with the separate arms and services, including a director for the gendarmerie. The minister is assisted by a chief of the general staff, with deputy and 4 departments, under whom there are II permanent inspectors of the different branches of the army.

For army officers there is a higher military training centre to train Colonels and Lieut.-colonels for higher command ; a military academy for Majors and Captains for service on the staff (2 years course); and a special school for officers of each arm of the service (5 to 6 months course). There is also a Military academy for cadets (4 years course), and one for non-commissioned offi cers aspiring to commissions (2 years course). There are special schools for army medical services, for reserve officers and for physical training; a school for army artificers and a preparatory school for non-commissioned officers. The gendarmerie has its own special school (2 years course).

In the war ministry there is a department of aviation, under a director. The air force itself is at present (1928) being reor ganized. There are 3 air regiments, an independent flying group, an air-park and a flying school. An air regiment contains two air-groups, each of 2 flights and an aircraft-park. The types of machines in use at present are the Breguet XIV. and XIX., the Mars and the Henriot.

See also the League of Nations Armaments Year-book (1928) .

(G. G. A.) Navy.—The history of the Greek Navy is intimately associated with that of the nation, and the rise and fall of ancient Greece is a classic example of the value of sea power. In modern times the varying fortunes of Greece have been largely the outcome of political unrest which has been reflected in the vacillating attitude of successive governments towards the fleet.

Within the eight years 1921-28, successive Hellenic Govern ments have appealed for and been granted the assistance of three separate British naval missions. The work of two of these mis sions was somewhat suddenly terminated by a change of those governments' policy; whereby much of the good derived from the labour of the British advisers was lost.

Of late, however, with the assistance of the third mission, there has been a fairly steady effort to make the fleet more efficient. None of the ships are very modern, but some of the more im portant of them have been refitted, whilst training is being brought into line with British methods, so far as they can be made appli cable.

In 1928 the Greek Navy consisted of two battleships, bought from the United States in 1914, the "Kilkis" (ex "Mississippi") and "Lemnos" (ex "Idaho''), completed in 1908, since recon ditioned; three very old battleships used as training schools; one armoured cruiser "Giorgios Averoff" (1910) ; one cruiser mine-layer ; I I destroyers ; 12 torpedo and patrol boats ; six sub marines and some small auxiliary vessels. (E. A.) Area and Population.—The area of Greece at the beginning of the twentieth century was about 24,40o square miles. The Balkan wars of 1912-13 resulted in the addition of New Greece, consisting of Macedonia, Epirus, Crete and a number of islands in the Aegean, with an area of about 2I,600 square miles, making the total area of the country about 46,00o square miles in 1914. After the World War, Greece occupied Thrace and a part of the vilayet of Aidin in Asia Minor, and these occupations were con firmed by the treaties of Neuilly and Sevres. But, as the result of the Asia Minor campaign, Greece in 1922 evacuated Asia Minor and Eastern Thrace in favour of Turkey, and by the treaty of Lausanne in 1923, she also retroceded Imbros and Tenedos. The area of Greece after these changes, is (1928) about 49,00o sq.m.

The population of Old Greece (census of 1907) was 2,631,952, and that of New Greece (census of 1913) was 2,101,014. A cen sus taken in 192o gave the total population as 5,536,375, includ ing Thrace. The number should have been reduced by the subse quent cession of territory and by the transfer of Muslim in habitants of Greece to Turkey. But these circumstances were balanced by the natural increase of population and the influx of some 1,400,00o refugees from Turkey after the war in Asia Minor, so that the figure returned by the 1928 census was 6,204,684.

The various racial migrations which have been brought about by the wars from 1912 onwards, whether voluntary or compulsory, involving the transfer, in either direction, of nearly 2,500,000 Greeks, Bulgarians and Turks, have had the result of introducing homogeneity in the regions affected, where before there was great diversity. Thus the proportion of Greeks in the population of Macedonia and Western Thrace, which stood at 43 and 36 per cent before the Balkan wars, was in 1925, 88 and 62 per cent.

Of Greek populations abroad the most important now remaining are those in Constantinople, the Dodecanese, Cyprus, Egypt and the United States. Fresh emigration to the latter country has been reduced to insignificant proportions by the restrictions imposed in 1921. The remittances to the mother country from Greeks estab lished abroad form a considerable item in the annual trade balance.

Agriculture.

Greece is mainly an agricultural country, about three quarters of its population being occupied in agricultural pur suits. Owing however to its mountainous conformation, only 22 per cent of the area is cultivated, while 32 per cent is occupied by meadows and pasturage and 13 per cent by woods and forests.

The greater part of the cultivated area is devoted to cereals, of which, however, the production is far from sufficient for the consumption of the country. Considerable surfaces are also taken up by olive trees and vines, while certain districts are affected to the two valuable products, tobacco and currants, for which Greece is specially known and which form the staple of her export. Figs, oranges and other fruit are plentiful. Cotton and rice are culti vated on a small scale.

Minerals.

The country has a large variety of mineral deposits, but they are worked only to a moderate extent. The principal minerals are lignite, iron, iron pyrites, magnesite, chromite, lead and Naxos emery, as well as the famous marbles. Marine salt is produced in large quantities for home consumption.

Industry.

The development of industry on a large scale is hindered by lack of a native coal supply and by scarcity of capital. But high protective duties and the influx of refugee labour have combined with other factors to give it a considerable impetus of recent years. In order of importance, the first place is occupied by the manufacture of alimentary products, olive oil, wine, spirits, flour, confectionery, etc. Next in order are cotton, wool, silk, jute and other textiles, among which the carpet industry deserves special mention as having been introduced by the refugees from Turkey. Soap, chemicals, leather, cigarettes and building mate rials are manufactured in considerable quantity and there are numerous minor industries.

Labour is protected by special legislation dealing with hours, the health and security of workmen, compensation for accidents, wage disputes, employment of women and children, etc., and the resolutions of the Washington Labour Conference are observed.

Commerce and

principal articles of export are tobacco, currants, olive oil and wine. Cereals take the first place among the imports, followed by textiles, coal, sugar and a variety of other commodities. The imports largely exceed the exports, the difference being accounted for by shipping and com mercial profits, by remittances from Greeks in other countries, by interest on investments held abroad, and by the influx of public and private capital into the country.

The railway system has been linked up with those of Europe since 1916, via Salonika-Nish-Belgrade. Commercial air services connecting Athens with Brindisi and Constantinople were estab lished in 192 7 ; and the mercantile marine is considerable, its range of activity extending far beyond the limits of the special commerce of the country, thus contributing in no small degree to the national resources.

Public Finance.

Taxation is heavy, and import and con sumption duties form the mainstay of the revenue, in contrast with the yield from direct taxes which is relatively small. The public debt charge absorbs about one third of the total. A large part of the debt is secured by assigned revenues under the con trol of the International Financial Commission, established in 1898.

The economic situation of Greece during the early years of the present century, up to the outbreak of the Balkan War in 1912, was marked by a steady if moderate progress. Industrial enter prises for local purposes were established in considerable number. Communications by road and railway were extended, and large additions were made to the mercantile marine. The premium on gold gradually declined, and finally disappeared in 1909. By the Valaoritis law of 1910, providing for the automatic issue and with drawal of notes against gold or foreign exchange, the currency was definitely stabilized at par on the gold exchange system, to the great advantage of the general economy and the credit of the country.

The state of the public finances, though less satisfactory, also showed signs of improvement at the latter end of the period. A series of deficits from 1907 to 1909 had to be met out of a portion of the proceeds of a new foreign loan raised for this and other purposes in I91o. At the same time, a programme of fresh taxa tion was introduced, including income tax and succession duties, with the result that the accounts up to 1912 showed a substantial surplus of revenue over expenditure. The varying interest on the old gold loans, payable out of surplus revenues in the hands of the International Financial Commission, marked a sensible upward progress.

The Balkan Wars of 1912 and 1913 threw a considerable strain on the resources and finances of Greece, which was, however, re lieved in some measure by the material assistance rendered by Greeks abroad. Immediate war expenses were defrayed chiefly out of the balance of the 1910 loan and the proceeds of various provi sional loans, which were liquidated by means of a new consolidated loan issued in 1914, and taken up for the greater part in Paris and London. This loan was secured on the revenues assigned to the International Financial Commission, an institution which, though regarded as an encroachment on the sovereign rights of the coun try, has been found useful on repeated occasions as a means of providing security for fresh loans. The economic strength of Greece was greatly enhanced by the acquisition of territories of both actual and potential value, including the important port of Salonika, the rich tobacco-growing districts of Drama and Kavalla and extensive fertile areas in Macedonia.

The World War.—Af ter the outbreak of the World War, and during the period of neutrality of Greece, which lasted from 1914 until 1917, there was a considerable accumulation of private wealth in the form of foreign balances, arising out of shipping and other profits which it was difficult, owing to war restrictions, to realize in actual goods. At the same time the country suffered severely from internal conflicts, from the economic blockade of Old Greece in 1916-7 and from the prolonged mobilization and war prepara tions. Noteworthy economic events during this period were : the law of 1915 facilitating the formation of co-operative societies; the connection, in 1916, of the railway system of Greece with those of Europe; and the agrarian legislation of 1917, which provided for the expropriation of large estates in favour of the peasants, and at the same time prohibited the alienation or mortgage of the peasants' holdings and their subdivision at death.

The entry of Greece into the War in 1917 involved a large in crease in military and naval expenditure. Fresh taxation was im posed, including a tax on War profits, and a certain sum was raised by an internal loan and by the issue of National Defence bills. But the bulk of the funds required was provided by advances in kind from the Allied Powers and by credits opened by the latter for expenditure in Greece, against which payments were effected in notes by the Greek Government. These credits were treated as cover for the note issue. The very considerable expansion in the paper currency which resulted from these arrangements did not cause at first too heavy a demand for exchange, for the factors which contributed to strengthen the foreign balances during the period of neutrality continued to operate until the end of the War. Thus the internal war expenditure of Greece and part of that of the Allies as well, was defrayed for the time being out of the resources of the country.

With the close of the War, however, and the suppression of restrictions on trade, the accumulated purchasing power of the country made itself felt in a large demand for foreign goods. Large purchases of Greek and other securities were made in f or eign markets, and the depreciating currencies of Europe offered an attractive field for the speculator. The resultant pressure on the exchange funds of the note-issue was so great that before the end of 1919 the available reserves were exhausted, the ex changes began to fall away from the gold parity, and the Valaoritis law became a dead letter. In the course of 1920 a portion of the Allied credits was realized, but this was quickly absorbed by pur chases of supplies, and the excess of imports reached unpre cedented proportions.

Effects of the Graeco-Turkish War.—At the same time, the Govt. found itself involved in fresh liabilities in connection with the military operations in Asia Minor. To raise the considerable funds required, recourse was had to a large internal lottery loan, to issues of National Defence bills, t loans from the National Bank and, finally, to inflationary issues of paper money. The fall in the exchanges was accelerated by the withdrawal of finan cial support and credits by the Allies on the return of King Con stantine in 192o. By the end of that year the drachma had lost 6o% of its gold value. This depreciation of the currency reacted unfavourably on the budget, while the prosecution of the Asia Minor campaign entailed ever-increasing expenditure. In 1921 and 1922 issues of paper money and National Defence bills were effected on a large scale, without authority from the International Financial Commission, taxes were raised and a forced loan was extracted from note-holders by compelling them to surrender one half of each note in exchange for a government bond. The dis aster in Asia Minor in 1922 reduced the finances and credit of the country to the lowest ebb, and by the end of the year its securities were quoted on the international markets at prices yielding 2o% to the investor, while the drachma had lost 94% of its gold value. This collapse of the monetary unit, with the concomitant rise in the price-level, profoundly disturbed eco nomic conditions throughout the country, and caused serious losses among particular sections of the community. The bulk of the public debt being on a gold basis, the real charge of its service on the state finances was not greatly reduced by the depreciation. (See also DRACHMA.) Refugee Settlement.—The influx from Asia Minor and Thrace of a vast number of destitute refugees threw a fresh burden on the resources of the country, and enlisted the sympathy and assistance of foreign countries, especially of England and America. Under the auspices of the League of Nations an independent refugee settlement commission was set up in 1923, for the estab lishment of the refugees, and a refugee loan was issued in 1924, in London, New York and Athens, guaranteed by revenues assigned to the International Financial Commission. Meanwhile, the Govt. made strenuous efforts to put its finances in order. Considerable fresh taxation was imposed in 1923, including a capital levy to be spread over five years, which has given very mediocre results. The floating debt was largely increased in 1923 and 1924. A fresh uncovered issue of paper money was made in 1923, and at the same time a law was passed authorizing fur ther issues against cover in funds abroad. The exchange, of ter violent fluctuations, settled down in 1924 to about one-tenth of the gold parity. By 1925 the public finances had so far recovered that the Govt. was able to allocate special revenues to the re duction of the floating debt, and to present a balanced budget.

But this equilibrium was disturbed by fresh expenditure, for military and other purposes, under the Pangalos regime, and by a renewed fall in the exchanges, due to an inflationary banking policy. In 1926, a second forced loan was raised from note holders, who were compelled to surrender one quarter of each note in exchange for a government bond, and a third forced loan from holders of National Defence bills, who had to accept a ten year bond in exchange for one half of these bills at maturity. But such measures, while providing temporary relief for the situa tion, did nothing to correct the current deficit, which, in spite of additional taxation, continued to increase. The exchanges took a fresh turn for the worse, the drachma falling to one eighteenth of its gold parity, as a result of the general lack of confidence, which made itself felt also in the domain of commerce and indus try. Severe money stringency prevailed, the rate of interest rose to very high levels, and many concerns found themselves in diffi culties due to overtrading and immobilization of capital during the previous few years.

Financial Reconstruction.

The new coalition Govt. which came into power in Dec. 1926 took vigorous measures to redress the financial situation. By means of fresh taxation, reductions in expenditure and postponement of certain liabilities, the Budget estimates were balanced. The aid of the League of Nations was invoked with a view to obtaining a loan for the liquidation of arrears, the further settlement of refugees and the stabilization of the currency. The approval of the League was given to a loan for this threefold object, subject to the adoption of a scheme of banking and monetary reform, involving the establishment of an independent central bank of issue on modern lines and the intro duction of a new fiduciary system. The loan was issued on ad vantageous terms early in 1928, the main portion being taken up in London and New York. Meanwhile the war debts to Great Britain and the United States were funded on terms satisfactory to the country, the settlement of the latter being coupled with the grant of a new loan from the United States Govt. to supple ment that floated under the auspices of the League of Nations. The effects of this successful financial policy made themselves felt in all directions. The prestige and credit of the country enjoyed a marked enhancement. The exchanges recovered and remained stable at about one fifteenth of gold parity. Renewal of confidence showed itself in the attraction of capital from abroad, in easier rates of interest, and in an improvement in the state of commerce and industry.

General Survey.—The country as a whole showed remark able powers of recuperation after a period of ten years of war, defrayed largely out of her own resources, and culminating in a great national disaster. The refugee population tended to become an asset instead of a burden. The expropriation of agricultural properties for the benefit of refugee and other peasants was accel erated, on terms very unfavourable to the owners, by special legislation. The settlement of refugees on the land extended the cultivated area and increased the production of crops, while large numbers found employment in other occupations and gave an im petus to the nascent industries of the country. The consuming power of the population increased both absolutely and per capita.

The mercantile marine, which had been reduced by nearly two thirds during the war through sales and enemy action, was restored to its original strength. There was a considerable expansion in building, industrial and other enterprise. Numerous projects were undertaken, with the aid of foreign capital, for the improvement of railways, roads and works of development. Finally, 1928 found Greece in process of achieving financial stability, though burdened with an increased public debt and future liabilities, which involved heavy taxation and severe restriction of expenditure. The extrica tion of the country from its embarrassments was due in no small measure to the beneficent intervention of the League of Nations.

Statistical Comparisons.

The following statistical table sum marizes the changes in some of the salient economic and finan cial features of Greece over the interval from 1914 to 1927-28. The figures in drachmas must be considered in relation to the depreciation of the currency.

BIBLIOGRAPHY.-E. Thery, Le Grece Actuelle au point de vue Bibliography.-E. Thery, Le Grece Actuelle au point de vue economique et financier (Paris, 1905) ; G. Deschamps, La Grece d'aujourd'hui (Paris, 1910) ; P. F. Martin, Greece of the Twentieth Century (1912) ; A. Andreades, Les Finances de la Grece (Paris, 1915) ; H. Lefeuvre-Meaulle, La Grece Economique et Financiere en 1915 (Paris, 1916) ; F. Zapelloni, La Grecia finanziaria ed economica (Rome, 1917) ; A. Andreades, Les Progres Economiques de la Grece (Paris, 1919) ; T. J. Lecatzas, Les Finances de la Grece pendant la Guerre (Athens, 1919) ; E. J. Tsouderos, Le Relevement Economique de la Grece (Paris, 1919) ; C. J. Damiris, Le Systeme Monetaire Grec et le Change (Paris, 1920) ; A. Andreades, La Legislation Ouvriere en Grece (Geneva, 1922), and La Marine Marchande Grecque (Brussels, 1923) ; M. S. Eulambio, The National Bank of Greece (Athens, 1924) ; A. A. Pallis, Racial Migrations in the Balkans during the years 1912-24 (Geog. Jrnl., Oct. 1925) ; League of Nations, Greek Refugee Settlement (Geneva, 1926) ; T. S. Kapsalis, La Balance des Comptes de la Grece (Lausanne, 1927) ; Financial and Statistical Publications of the Greek Govt. ; Annual Reports of the Internat. Financial Commission and of the Nat. Bank of Greece ; Diplomatic and Consular Reports. (L. G. R.)

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