The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-06-22
GREECE-s WEAKNESS HER PROTEC-
TON


The true motive at the back of the az
rangenent hy which Greece Will get of
h payment OK wilaf mast seem Ike COM
parativssy small indemnity 10 Turkey is
the sact that Greece already IL so largely
debtor. The sympathy of the emperor
o. Germany FOR TURKEY Is noE nearly so
potent force in European politics as the
tender consideration the bondhoiders OF
Europe have for Greece. Greece is almost
bankrupt already. and Is one of the few
states which have ever reruaiated any
portion of a national debt. Ii was with
the greatest difficulty that the government
was able 10 pay the April coupons. and
with the enormous expenditure that has
taken place since there Is reason TO appre-
hend that she viii be unable to meet her
next payment.
Under suca circumstances whatever
money Turkey should receive from Greece
would probably be at the expense Of the
foreign bcndhoiders. The Greek debt held
outside OF Greece amounts TO about sl2e.-
on.ea. or. let us say. so apiece for ali the
inhabitants OF the kingdom Few nations
have so large an Indebtedness as that OF
this. roughly speaking, 30 Der cent. is held
in Germany. which calculates the German
demand for international control of Greek
finances, like that now exercised over
Turkish funds: - per cent. IN Great Brit
ain and 10 per cent. in France. The other
great powers hold none OF 1t. The finan-
iaf DO If . ar
fore one that appeals to only three of the
six great powers. About four years ago
Greece arbitrarily reduced by 70 per cent.
the interest payable to bondhoIders. That
was the act of reputation complained OF.
Since then the remaining 30 Per cent. of In
terest has been regularly paid In gold
There has been a hope that the defauIted
10 per cent. would also be paid but that
would be out of the question for a very
long time, even without an indemnity. and
the larger the indemnity the longer the
time.
There viii probably be sort of financial
protectorate established by the powers
for the purpose of handling the revenues
and securing the eventual return of their
money TO the creditors. Putting aside all
prejudice. there is no doubt that wher-
ever Great Britain has taken charge Of
bankrupt treasury she has succeeded in
improving the condition. In no respect
has the excellent result of British man.
agement been better manifested than in the
case of Egypt, which has never been in a
more satisfactory financial condition. And
white Germany has been teaching Turkey
how to organize an army and successfully
prosecute war, Sir Edgar Vincent, an
astate Englshman. representing British
interests. has been teaching the Turks
how to run the government on business
principles. and become commercial ma
ton. Twenty years ago Turkey was in a
worse position than Greece is now. not so
much because of the extent of the indebt-
edness, as OF the corrupt and inca pable
provincial government and the prejudice
of the Ottoman against Western ideas of
business. 1t was no easy task to overcome
the secret cabals of Turkish tax gatherers.
who saw in the proposed reforms discov-
cry of their NEUTRALITY-SUSPICIOUS. and prob
able punishment.
The Greek government will have great
difficulty in borrowing any more money
on its own responsibility. 1t has prac-
ticaliy hypothecated all its sources OF
revenue, including customs. monopoiies
and internal taxes. The bondholders
would. no doubt. be glad of the excuse TO
establish a control over the income and
expenditure of the country. but they
would not be likely to consent that all the
benefit should SO to Turkey. Turkish pride
would be satisfied with the inniction OF the
indemnity, and as that country owes Rus
STA "a considerable indemnity. II may be ar
ranged that the Turkish indemnity shall
be transferred to Russia and so wipe out
the Turkish debt 10 Russia in which case
Russia viii join Germany in the appoint
ment Of a commission to take control of
Greek finances.