The Express.
London, England, 1852-11-20 00:00:00

TIIE TURKISH LOAN.

A meeting of the parties interested in this loss
was convened yesterday by the contractors, Messrs. 1)
and Co., at the London Tavern. Mr. CAVIL was unani-
mously called to the chair.
Mr. Cum.:a, of the firm of Devine, thereupon handed
in • statement, which he requested Mr. Maynard to read.
The following aro the most important passages
In accordance with the wishes expressed by the parties
interested as holders of scrip in the Turkish loan, Messrs.
C. Deems: and Co. now propose to bring before them all
the circumstances connected with the negotiation of this
loan, both as regards their own personal conduct in the
affair, and the conduct of the Turkish government in seek-
ing to repudiate it. It is probably known to most of the
houses in London more immediately engaged in financial
operations that for some time previously the Bank of Con-
stantinople had been endeavouring to negotiate • loan in
this country and in France under the guarantee of the
Ottoman government. It may be observed that it is well
understood that the Bank of Constantinople and the Otto-
man government are in point of actual interest all but
identical. The transactions and engagements of the bank
being guaranteed by the Ottoman government, for whose
benefit, or at least for whose convenience, they are supposed
to be entered into. Several attempts had been made by the
agents of the bank for the negotiation of a loan, but the
terms proposed not being satisfactory, thaw attempts had
proved unsuccessful. About the month of July last,
application was made to Messrs. C. Doran: and Co., to
assist in raising the loan required, and upon the introduc-
tion of Mr. Edward Blount, the banker of Paris, and Mr.
Ernest Simons, also of Paris, the eminent government con-
tractor for the mail service, they agreed to take part in the
transaction in conjunction with other capitalists in Parks.
Messrs Devaux and Co., however. required that whatever
arrangement was come to should receive the direct sanction
of the Ambassador in Paris of the Ottoman government
(the Prince feeling that any arrangement to
which he was a party must necessarily be binding upon
the government he represented.
"ln the mouth of August the terms of the proposed
loan were definitely arranged, those terms being precisely
what were afterwards nut forward by Misses. Devauz
and Co., on the occasion of their receiving skbscriptiona.
The total loan to be raised was 50 millions of francs, or
2,000,0001. sterling, of which Messrs. D uuuuu and Co. en-
gaged to obtain subscriptions in England fur 800,0001.,
but by a subsequent arrangement 80 0001. of this sum wan
withdrawn from them, and by the desire of the parties was
transferred to a banking establishment in Lyons. The only
advantage Means. Devine and Co. were to derive from the
transaction was a commission of 2 per cent. upon the
amount to be negotiated by them, and bas the parties who
introduced the transaction to them were to participate In
this commission, they in fact were only secured • COOlillia•
sion under 1 per cent. Messrs. D and Co. did not
open subscriptions for their portion of the loan in England
until the terms agreed to by the agent of the Bank had
been confirmed by the Ottoman minister and his distinct
engagement given that those terms would be guiranteed by
his government.
" Having thus the authority of the agent of the
Dank of Constantinople, and the confirmation of it by
the Ottoman ambassador, Messrs. Derails and Co. felt
themselves fully at liberty to introduce the proportion
of the loan assigned to them for negotiation upon die
terms which had received the sanction act those parties, and
accordingly under date the Ist September last, they invited
subscriptions to this portion of the loan, stating that it WI/
for the bank of Constantinople, under the guarantee of
the Ottoman government, by Finnan, of the 10th JIM;
18.52.

" Out of the 720,0001. placed at the disporal of Morn.
Devaux and Co., they subscribed themselves for 60,0001.,
and the remainder was taken by the English public at par.
"On the 10th of September, Meters. Devaux and Co.
paid up in Paris 26 per cent. upon the whole 720,0001., and
thereupon received an acknowledgment for that payment
both from the agent of the Bank id Constantinople and
from the Ottoman Ambassador, and in exchange for this
payment they received the bonds of the Bank of Constanti-
nople for the whole of the English subscription, signed by
the agent of the bank and by the ambassador.
" Believing that they have now fully justified their own
conduct in the transaction they proceed to what (so far sis
the bondholders are concerned) may be considered the more
important part of the subject, the conduct of the Turkish
government in seeking to repudiate this loan.
" Until advice' were received of such an intention on the
part of the Ottoman govern.nent, no specific inquiries had
been made either from the agent of the bank or the ambas-
sador u to the exact instructions under which they were
acting, their position being considered a *milkiest guarantor
that they would do nothing which was net within their
authority. Particular inquiries have now been add/eased
to both on this subject. As regards Prince Celli-
, maki, he does not feel called upon to say more than that be
has acted according to his instructions. Mr. Couturier, tho
agent of the bank, however, does not feel himself under
any conventional restrictions, and he has furnished the
fullest information for the purpose of showing that all he
has done was not only within the scope of hit authority,
but was fully recognised when communicated to the Otto-
man government. M. Couturier states that the Bata of
Constantinople was established by the Ottoman government
with a view to the regulation of the exchanges between
that country and Europe, and that the transactions of the
bank were all guaranteed by the government. That it was
found neromary to keep up a large circulation of bills on
Europe, which were negotiated by the bank for the paw-
paws of the government, and that it was for the *epees
purpose of providing funds to meet this circulation that the
loan is question was authorised, and that he was despatched
to Puts for the accomplishment of this object. That certain
instructions were given to him as to the terms upon which
the loan was to be negotiated, but that he was instructed
to make better torus if he could. That by these inn's,-
time be was authorised specially to hypothecate the re-
venues of Egypt, in addition to the general guarantee of
the government, and that it was contemplated that the leas
could ha obtained for only 40 millions of francs ow
1,600,0001., and that it would be repayable in 10 years.
Mr. Couturier considers, therefore, that in having secured
a loan of 60 millions instead of 40 millions, and in having
spread It over a period of 23 vEread of 10, and in haw-
alsourti
withheld the special 'cation of the revenues
of be ban made for constituents much better
twos were warranted by Ms istnictions.
"Bat eseceover, he states thee the Ottoman government
were iiiii of the teem if the loan air early se the
filth of . That in esereviceee of being so ad-
vised of lean, they did set remit (as they otherwise
must haw done) either cash or bills to meet the engage meats
of the batik then falling due, and that in print of feet the
funds raised by the first payment on account of the law
were ii in meeting than engagements except as to
about fil.. which went direct to the treasury of the
Onions movement. Bo far were the Ottoman govern-
Mee him igieseding the terms upon which the loan had
bees eaMin that r. Couturier received letters express-
ing the meet whin satisfaction with the arrangement hs
had mmeladed, sad directing the appropriation of the
money he wee about to receive.
" It will ins be seen that the Ottoman government were
duly swindler the terms of the loan • that they not only
expressed their approbation, but reaped the fruits of it, by
availing themselves of the funds thus acquired, to meet
engagements for which they were responsible, besides trans-
erring a portion of those-tondo into their own coffins; and
t was net till a full month afterwards, when a change of
ministry took place, that doubts were expressed, the am-
banadert superseded, and a notification given that the lees
would sot be recognised.
" Mesas. Devito: and Co. may here observe that imam-
diately on receipt of intelligence of the intentions of the
Ottoman government, they (being then in Pane) forwarded
a full communication of all the circumstanoes to her Ma-
jesty's chargé d'affairs at Constantinople, and they also
placed the same before Lord Cowley, at Paris, and through
him a similar communication was made to Lord Malin's-
bury. They ought also to state that the subject is most
warmly and esergetically taken u_p by the Preach govern-
ment, and that the Marquis de Leyden', the representa-
tive of the French government at Constantinople, has
already used hie good offices for the sinsrtion of the rights
of theb=dholders.

" Mean. Demur and Co. can only in eenelusion, while
expressing their siacere regret at the untoward turn w bids
this transaction has taken, aware the bondholder of their
hearty co-operation in any steps that may be damned proper
for securing Juno* from the Ottoman government, and
they beg to suggest the expediency of appointing souse
gentlemen interested in the loan to concert the neeesscry
measures for that purpose."
The above document wee , _
wee loudly applauded is several
Mr. OCIDILLA then moved a
the Ottoman government we. boon,
loan, and az mrtonlabinent
bad bssa tads to npadiate

exceedingly well reosi
nal places. S; :1 .
red g ambition. °./ •ah
u bound by then w„a
ishment at the
GO mole= a cos • •••-✓
p-,' -3
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