The Sun.
London, England, 1858-01-11 00:00:00

TURKEY.

The following is the draft of the proposed firman
relative to the reform of the financial system of
Turkey :
" Art. 1. All paper money now in circulation will be
called in, and for this purpose, in order to pay off the
State bonds and other floating debts of the different
administrations, new bonds will be created.
"Art. 2. These new bonds will henceforth form the
only public debt ; they will be inscribed on the grand
livre of the State reate ; they will enjoy an interest of
6 per cent., with a sinking fund of 2 per cent, per
annum.

" Art. 3. The paper money bearing interest will cease
circulating on the Ist March. next, and must be changed
within a delay of three months for the new bonds. The
notes of 10 and 20 piastres not bearing interest will
retain their legal circulation for two years longer from
the Ist March. The Government will take every neces-
sary measure to remove it entirely from circulation by
that time. The bonds which bear an interest of 8 per
cent. will be changed for new bonds at the end of three
years.

" Art. 4. In order to be able to withdraw from circu-
lation the whole mass of paper money, and to consolidate
the floating debts of the different branch of the Govern-
ment, the new bonds will be created for the amount of
12,500,000 of Turkish livres of 100 piastres each. Until
the complete liquidation of this sum the Treasury will
every year make the necessary payments to cover the 6
per cent. interest and 2 per cent. sinking fund. The
drawing will take place every year, when the numbers
drawn will be reimbursed in cash. The whole amount
of 12,500,000 will be reimbursed in 24 years.
"Art. 5. The Government assigns as a special gua-
rantee for the above-mentioned payments, all the
revenues of the customs and other indirect taxes of Con-
stantinople.
" Art. 6. The new bonds will be to bearer, and may
be bought and sold as public funds according to the
established custom of the country, but cannot be circu-
lated as paper money.
" Art. 7. For all the operations connected with the
carrying out the present measure, as well as for the
payment of the interest of the new bonds, a special
caisse will be established under the denomination of
Caisse de Credit, which will be placed under the manage.
ment of a governor, a sub-governor, and ten directors,
chosen from among the principal merchants and bankers
of Constantinople. This council will be under the
superior direction of the Minister of Finance, to whom
they will have to present all their accounts.
" Art. 8. The issue of the new bonds and their in-
scription on the grand livre of the State as well as the
maintenance of regularity in all the registers of the
public debt, will be confided to the directors •f the above
credit establishment.
" Art. 9. All the paper money when exchanged for
the new bonds will be stamped and cancelled, and will
be every month handed over to the Minister of Finance
to be destroyed.
" Art. 10. The Council will every year deliver to the
Minister a sealed note informing him of the amount
required for the payment of the interest and the sink-
ing fund of the new bonds given in exchange for the
paper money withdrawn, and which sum will be
added by the Minister to the sum to be paid by the
Minister as stated in a former article.

Art. 11. The amount which the Treasury will have
to furnish according to article 5 to cover the interest aid
arid sinking fund of the new bonds will be divided into
monthly instalments, to which the council will give a
receipt, and deposit them in its coffers. The council
every year publish an account of its operations in the
journals of Constantinople.
"Art. 12. The sums thus deposited cannot under any
circumstances be used for any other purpose, or be
employed in making advances even :or a limited period.
All the members of the Council be personally responsible
and bound to make good any deficit.
"Art. 13. The body of the new bonds will be written
in Turkish and French, and each coupon will bear the
official seal of the Minister of Finance, and will also have
the seal of thecouncil. The bonds will bear the date of the
let March and of let June. The half-yearly interest of
the first category will be payable at the end of August
and of February, and that of the second category at the
end of November and the end of March.

"Art. 14. The interest on the paper money, which
sti all not have been received before the Ist March, will
be paid by the Caisse de Credit, on account of the
Minister of Finance on presentation.
" Art. 15. With the exception of the paper of the
Bank, to be founded with the authorisation of the
Government no paper money whether bearing interest
or not will be for the future created."