The Sun.
London, England, 1863-04-14 00:00:00

THE OTTOMAN EMPIRE:

A letter from Constantinople, dated April 2, says
that the departure of the Sultan, which had been
fixed for the early part of this week, has again been
put off, and the day now named is Saturday next,
This delay must not in any way be attributed to
any vicillation on the part of the Sultan. He has
quite made up his mind on the subject, and the
urgent representations which have been made to
him against it have rather contributed to confirm
him in his determination. I have reason to believe
that, in a private interview which took place be-
tween him and the British Ambassador, the latter
endeavoured to impress the Sultan with the
evil eff.ects which might attend this ill advised
scheme, and urged upon him the feeling of uneasi-
ness with which this voyage is looked upon by the
public at large. These representations have failed
to shake his decision. Without moving officially in
the matter, the representative of France, I am in-
formed, encouraged the contemplated voyage, with
the object, it would seem, to benefit the interests of
the Suez Canal, which, while it is being proceeded
with actively, is, as regards its political obligations,
in an uncertain and unrecognized position.
The news arrived here by telegraph on Saturday
evening last of the completion of an agreement be-
tween the Turkish Government and the conces-
sionaires of the new Imperial Ottoman Bank for a
new loan to the nominal amount of £6,000,000, to
be issued at 68, the contractors receiving 5 per cent.
commission. Information of this loan will probably
have reached London at the same time, but it gives
rise to various considerations sufficiently important
not to be considered out of place in this letter. In
apprehension, no doubt, of the criticism which
might attend this new appeal for pecuniary assist-
ance, the Turkish Government have conducted the
negotiation with a degree of mystery which has
baffled all attempts on the part of the public here
to penetrate the secret ; and, although I was ena-
bled to prepare your readers, in a previous letter,
for this new financial combination, I can safely
affirm that no person here, outside the limited circle
of those directly interested in the matter, had the
remotest knowledge of the fact until the affair was
completed, and the arrangement signed in Paris.
Twelve months have hardly elapsed since the
negotiation in London of a loan for £8,000,000,
which, as usually represented on such occasions,
was to have sufficed to place the finances of the
empire in a healthy and prosperous condition and,
enable the Government to dispene with any further
assistance of this nature, and the public is once more
informed that Turkey is again, financially speaking,
in extremis. Within that time, also, the home debt
has been increased by two issues of Consolides, one of
5,000,000 and the otherof 12,000,000 Turkish pounds,
representing nearly £17,000,000, the greater pro-
portion of which have found their way into the
European markets, and principally in London. It
is marvellous, when all these fabulous sums are
added up, to witness the credit with which the
Turkish Empire seems to be invested in the eyes of
European capitalists; and, in endeavouring to ac-
count for this phenomenon, one naturally looks
about him to ascertain whether the advancement and
prosperity of the country in any way justify this reek-
less confidence in its good faith and itsresources. With
regard to its good faith, it is but fair to say that in
their foreign engagements the Turks have not been
found wanting up to the present; and this argument,
and the comparison which it suggests with other
Governments who have proved defaulters, tend to
enhance the value of Turkish securities. It is,
however, the only argument which can be brought
forward, and its weight is considerably dimi-
nished by the consideration that, while meeting
their European engagements, they are by no means
so punctual or so scrupulous in the observance of
their local obligations. They are shrewd enough
to perceive that default, or even delay, in meeting
the dividends and interest on their European loans
would involve them in hopeless ruin, and hence the
promptitude manifested to meet those engagements
at any sacrifice. With regard to resources, it is diffi-
cult to arrive at any accurate data on the subject.
For several years past their financial expositions,
which always represented an anticipated surplus
of revenue over expenditure, have not been con-
firmed by results. Year after year, instead of a
surplus, a considerable deficit has declared itself,
which had to be met either by European loan or
the more costly process of local accommodation.
And now there is every reason to believe that the
Budget of 1862, published in London with such
pomp and exultation, will fall short of its pro-
visions by at least £4,000,000. This unsatisfactory
result will not, of course, meet with any authorised
publicity, but in its stead preparations are being
made towards the publication of the Budget of
18634. I have reason to know that it will hold oat
still more brilliant prospects than its predecessor.
Let me endeavour to anticipate this publication,
and to point out the real state of the case. It is not
improbable that the forthcoming financial state-
ment will represent, and with good grounds, the
revenue of the country to have increased to the
sum total of £15,000,000, and perhaps even more.
This fact will be immediately seized upon by in-
terested, but not over reliable, critics, as an indica-
tion of increased prosperity. It is shown positively,
and 1 do not dispute the fact, that there is a con-
siderable augmentation in the Customs receipts
and in the sales of the Dimes or tithes ; but this
must not be construed as indicating either increased
production or an improving administration. It is
simply the result of the additional imposts which
have been levied, and whether the country is able
or willing to suffer such excess of taxation is a ques-
tion which it does not matter for present purposes
to inquire into. That the country possesses inex-
haustible resources, which only require a proper
administration to make them available, no one is
disposed to dispute : but the most patient inquiry
and investigation do not show that any such ad-
ministrative progress has been effected. It is
absurd to talk of increased production when a good
portion of that which the soil of Turkey has
afforded for many years and is now yielding cannot,
for want of roads, find its way to a marketable desti-
nation, and rots on the place of its growth. Let it,
therefore, be understood once for all that until
there is a radical change in the whole system of
government, until the provinces are administered
by men having the interests of the country in
view, and not the acquirement of great wealth in the
shortest possible time, at the expense of the working
classes—until such a day arrives, if ever it is des-
tined to-dawn on this unhappy country,
any financial
statement Showing increased revenue must
be taken
to imply, not the advent of increased prosperity,
but a system of grinding and oppressive taxation.
It is not probable that the amount of the public
debt and other liabilities of the Turkish Government
will be represented in the forthcoming statement as
they really stand, and it is well to give an outline of
them for the edification of those whom it may con-
cern. It was officially represented iu Parliament on
the eve of the negotiation of the loan of 1862 that the
s 4 public debt of Turkey" was £14,000,000. The
financial statement of the Turkish Government gave
the total at £32,000,000. Both these statements fell
short of the real amount ; but let us see what it
stands at on the present day. The different loans
negotiated in London with the comparatively small
amount yielded by the Mires subscription, and in-
cluding the arrangement which has just been con-
cluded with the new Bank, represent, after provid-
ing for the reductions effected by sinking funds, a
sum total of £29,000,000, The securities which have
been issued here, comprising Hasne-Tahvilis and old
and new Consolides, reach a total of £18,000,000.
These particulars are incontrovertible, inasmuch as
the information is within reach of any one disposed
to inquire into the subject. By comprising in this
debts of the Civil List, incurred
statement the heavy
by the late Sultan, the liabilities of the different de-
partments, and the depreciated metallic currency
(Beshlicks), it is not unreasonable to affirm that the
whole debt of Turkey amounts to £55,000,000, to
meet the dividends of which at an average rate of
6 psr cent. interest and 2 per cent. sinking fund,
a yearly outlay of over £4,000,000 is required.
This on a revenue of £14,000,000, or even
£15,000,000, in no inconsiderable sum. There
would not,
however, be any cause fiz unreason-
able alarm with a good Government and a reform-
ing and retrenching Policy; but of this we have not