But this increase of revenue was for the most part counterbalanced by the increasing expenditure. The provinces, Sicily perhaps excepted, probably cost nearly as much as they yielded; the expenditure on highways and other structures rose in proportion to the extension of territory; the repayment also of the advances (tributa) received from the freeholder burgesses during times of severe war formed a burden for many a year afterwards on the Roman treasury. To these fell to be added very considerable losses occasioned to the revenue by the mismanagement, negligence, or connivance of the supreme magistrates. Of the conduct of the officials in the provinces, of their luxurious living at the expense of the public purse, of their embezzlement more especially of the spoil, of the incipient system of bribery and extortion, we shall speak in the sequel. How the state fared generally as regarded the farming of its revenues and the contracts for supplies and buildings, may be estimated from the circumstance, that the senate resolved in 587 to desist from the working of the Macedonian mines that had fallen to Rome, because the lessees of the minerals would either plunder the subjects or cheat the exchequer - truly a naive confession of impotence, in which the controlling board pronounced its own censure. Not only was the duty from the occupied domain-land allowed tacitly to fall into abeyance, as has been already mentioned, but private buildings in the capital and elsewhere were suffered to encroach on ground which was public property, and the water from the public aqueducts was diverted to private purposes: great dissatisfaction was created on one occasion when a censor took serious steps against such trespassers, and compelled them either to desist from the separate use of the public property, or to pay the legal rate for the ground and water. The conscience of the Romans, otherwise in economic matters so scrupulous, showed, so far as the community was concerned, a remarkable laxity. "He who steals from a burgess", said Cato, "ends his days in chains and fetters; but he who steals from the community ends them in gold and purple". If, notwithstanding the fact that the public property of the Roman community was fearlessly and with impunity plundered by officials and speculators, Polybius still lays stress on the rarity of embezzlement in Rome, while Greece could hardly produce a single official who had not touched the public money, and on the honesty with which a Roman commissioner or magistrate would upon his simple word of honour administer enormous sums, while in the case of the paltriest sum in Greece ten letters were sealed and twenty witnesses were required and yet everybody cheated, this merely implies that social and economic demoralization had advanced much further in Greece than in Rome, and in particular, that direct and palpable peculation was not as yet so flourishing in the one case as in the other. The general financial result is most clearly exhibited to us by the state of the public buildings, and by the amount of cash in the treasury. We find in times of peace a fifth, in times of war a tenth, of the revenues expended on public buildings; which, in the circumstances, does not seem to have been a very copious outlay. With these sums, as well as with fines which were not directly payable into the treasury, much was doubtless done for the repair of the highways in and near the capital, for the formation of the chief Italian roads[23], and for the construction of public buildings. Perhaps the most important of the building operations in the capital, known to belong to this period, was the great repair and extension of the network of sewers throughout the city, contracted for probably in 570, for which 24,000,000 sesterces (240,000 pounds) were set apart at once, and to which it may be presumed that the portions of the cloacae still extant, at least in the main, belong. To all appearance however, even apart from the severe pressure of war, this period was inferior to the last section of the preceding epoch in respect of public buildings; between 482 and 607 no new aqueduct was constructed at Rome. The treasure of the state, no doubt, increased; the last reserve in 545, when: they found themselves under the necessity of laying hands on it, amounted only to 164,000 pounds (4000 pounds of gold)[24]; whereas a short time after the close of this period (597) close on 860,000 pounds in precious metals were stored in the treasury. But, when we take into account the enormous extraordinary revenues which in the generation after the close of the Hannibalic war came into the Roman treasury, the latter sum surprises us rather by its smallness than by its magnitude. So far as with the extremely meagre statements before us it is allowable to speak of results, the finances of the Roman state exhibit doubtless an excess of income over expenditure, but are far from presenting a brilliant result as a whole.

The change in the spirit of the government was most distinctly apparent in the treatment of the Italian and extra-Italian subjects of the Roman community. Formerly there had been distinguished in Italy the ordinary, and the Latin, allied communities, the Roman burgesses sine suffragio and the Roman burgesses with the full franchise. Of these four classes the third was in the course of this period almost completely set aside, inasmuch as the course which had been earlier taken with the communities of passive burgesses in Latium and Sabina, was now applied also to those of the former Volscian territory, and these gradually - the last perhaps being in the year 566 Arpinum, Fundi, and Formiae - obtained full burgess-rights. In Campania Capua along with a number of minor communities in the neighbourhood was broken up in consequence of its revolt from Rome in the Hannibalic war. Although some few communities, such as Velitrae in the Volscian territory, Teanum and Cumae in Campania, may have remained on their earlier legal footing, yet, looking at the matter in the main, this franchise of a passive character may be held as now superseded.

On the other hand there emerged a new class in a position of peculiar inferiority, without communal freedom and the right to carry arms, and, in part, treated almost like public slaves (peregrini dediticii); to which, in particular, the members of the former Campanian, southern Picentine, and Bruttian communities, that had been in alliance with Hannibal[25], belonged. To these were added the Celtic tribes tolerated on the south side of the Alps, whose position in relation to the Italian confederacy is indeed only known imperfectly, but is sufficiently characterized as inferior by the clause embodied in their treaties of alliance with Rome, that no member of these communities should ever be allowed to acquire Roman citizenship[26].

The position of the non-Latin allies had, as we have mentioned before[27], undergone a change greatly to their disadvantage in consequence of the Hannibalic war. Only a few communities in this category, such as Neapolis, Nola, Rhegium, and Heraclea, had during all the vicissitudes of that war remained steadfastly on the Roman side, and therefore retained their former rights as allies unaltered; by far the greater portion were obliged in consequence of having changed sides to acquiesce in a revision of the existing treaties to their disadvantage. The reduced position of the non-Latin allies is attested by the emigration from their communities into the Latin: when in 577 the Samnites and Paelignians applied to the senate for a reduction of their contingents, their request was based on the ground that during late years 4000 Samnite and Paelignian families had migrated to the Latin colony of Fregellae.