The sun. [volume] (New York [N.Y.]) 1833-1916, 1875-11-13

the debt remains ~ 10 was before; the i'll
terest. however, and the sinking fund, are
TO he paid half in cnsh and half in new
five per cent bonds, issued at par and re-
deemahlc in five years. II is thus practi
cally forced loan which the Ottoman Gov
eminent imposes upon its creditors. This
decree went into force on tho 9th Of Octo-
Der, and will save the Turkish treasury
from the necessity of making new and
runous loans to the amount OF twenty-five
millions OF dollars year.
For several years past the budget Of the
Ottoman Empire has constantly shown an
immense deficit, and large sums of money
have had to be yearly borrowed mt exorbi-
tant rates for the sake OF making up the
nine million pounds sterling or forty-fve
millions of dollars, needed to pay the inter-
est on all the domestic and foreign loans, in
GLIDING the guarantees TO railways In this
way the present act of partial reputation
may, afterall, prove to he in the interest Of
thecreditors. provided that during the five
years. which the new bonds have to run,
the Sultan can be induced to spend less on
the army and navy, and especially on the
extravagances of his court.
=
OF the Ottoman Empire had considera BILE
industrial and manufacturing importance.
At the present moment, however, in conse-
quence of the destructive effect of foreign
competitions the corruption OF the officials,
the want Of security to trade, and the heavy
taxes, the country has become almost ex-
clusivcly agricultural. corn, cotton, and
wool being the only articles Of consider
able export IL is also a curious fact that
thirty years ago the Turkish Empire had
not cent Of debt either at home or
abroad, and that IL is within the last quar-
ter Of Il century and more especially SINCE
the Crimean war, that the Turkish Govern
ment has managed to become indebted to
the world to the amount of one hundred
and eighty-five millions sterling, of which
about one hundred million pounds are
owed abroad and the rest mostly at home.
The great foreign loans have been con-
tracted through Messrs. DENT, PALMER Il
Co., London. the Ottoman Bank. and the
famous MIREs. while the recent and smaller
loans have been contracted mainly through
Messrs. DEvAUx, Louis COHEN s. Son, and
the Societe G6uGrale Of Paris.
Considerable excitement prevails just now
among the bondholders in consequence Of
the indiscrimnate manner in which the
FIVE per cent. bond arrangement has been
applied TO them. While most Of the cred
itors. and especially those holding bonds of
the internal debt, are simply guaranteed by
the general revenue of the empire, others
loaned their money on the understanding
that special revenues were hypothecated
TO them, such ~ the Egyptian tribute
the custom house duties the salt, sheep,
and other special taxes. Now. the re-
cent decree makes n clean sweep OF all
these distinctions. and places, If not the
principal of the various loans, at all events
the interest, on footing Of perfect equal
ity. These special mortgages being con-
tracted mainly with foreign citizens, some
Of the European Governments have al
ready begun TO take measures 10 rejistab-
lish the distinctions between the special
ana the general creditors; AID { any COM
plication should arise in European politics
consequent on this repudiation, IL will be
mainly due not 10 the general principle Of
reputation, but TO thii particular point Of
distinction between the hypothecated and
the non-hypothecated loans.
II will not be unintcrcstiug to add here
the substance OF report which MIR. HENRY
p. I. BARRON, First Secretary of the Brit
ish Embassy at Cons,antnople, presented
to the Foreign Once some eight years ago
in pursuance Of his instructions to in
vestigate the financial state Of the empire;
TO give anything IKE trustworthy ba ancc sheet
"a whether the clements ex. e. enaDr the Mini,tcr Of
fnance hin eel 10 pl2dace slSh a ,9mrnt me sal
ure u the ordinary re-, snue. and s5A3e0io - the
ance ls Va % avaab ior Al purposes Of Govern.
m yrunrut .xnenat9Tc IN c are ''9ureu c lI
lccted ANA Distributed on the spot and NOT coming to
lille oyer sS0oo 900 Tor ali eenir exeaditures pay
aDle at the sea- Of Government
Since the time when this report was writ
ten the debt OF Turkey has been increased
by more than one-fourth, and il is calcu-
lated that its annual interest now exceeds
half of the revenue. Mr.. BARRON con-
cluded his report by saying that next to
the maintenance of peace. the first condi-
ton of solvency for the Turkish treasury
is Il total abstinence from all future loans"
Possibly the FIVE per cent. bond arrange
ment is Il step in that direction. Instead
of yearly borrowing small sums AT usu-
rious rates 20 pay the interest due, the
sultan now borrows forcedly from his
creditors nj Eve per cent. and at par. And
as this loan does not bring him in any cash
TO spend in fireworks on the Bospho-
rus, and similar follies, the future of
the creditors may after ali be better Sc
cured now by this modified reputation
than it ever was before.
PrOfaning a Sacred Ordinance.
Henry WARD BEEcHERs paper. the
christian Union, is sending out broadcast
among the newspapers, a slip containing
an extract from his last Sundays sermon
in which the Plymouth pastor announced
his resumption of the policy Of silence
As we supposed, the language used by Mr.
BEEcHER, though apparently wruns from
AN overlooking heart, and the outcome OF
the moment, was premeditated, and ut.
tered in pursuance of n settled plan OF
action.
The extract, which is headed "SilencC
Under Suffering" consists Of that passage
in his sermon which Mr.. BEECuER deliv
cred with streaming eyes and amid the
81.