New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-12
Financial Settlement After Bal
kan War Begins This Week.
SOME THORNY PROBLEMS
French Creditors of Turkey
May Veto Any Proposition
for Big Indemnity.
fBy Cable TO The Tribune.l


ian financiers to create movements in
all departments.
Signs of returning confidence are
everywhere noticeable. French rentes,
which lost rather heavily during the
first part of the week, rallied later and
closed Yesterday at loss OF only 32t
centimes from the previous Saturday.
The international technical confer
ence to settle the financial question
arising from the termination of the
Balkan war will definitely assemble In
Paris on Thursday next, and the pres
ent condition of the European markets
will render the problems to be tackled
unusually difficult 10 solve. The ques-
lions to be discussed and decided upon
are as follows:
The share Of the Ottoman debt TO
be assumed by tho Balkan Allies on
the conquest by them OF tho larger
portion Of the Turkish Empire ~
Europe.
The question whether Turkey should
pay a war indemnity to the conauerors'
and il so, to fix tho amount.
New loans to the Balkan States.
In the interests of French creditors
who have large sums already Invested
both in Turkey and the Christian
states. the French delegates Will exam
inc particularly the financial condition
of the countries anxious to obtain loans
4 glance at the financial position OF
the several countries may serve 10
make their situation clear.
The Turks are not likely 10 be inc
worst off financially unless crushed py
too heavy indemnity. II the imam
claI affairs II the Moslem Empire be
carried on with prudence and economy
the Asiatic provinces. with population
AZ 25OOO.OOO may yet have promi-
nent place In the Near East, both po-
iticallv and economically. There Is an
inland debt Of 19,5OoWo TURKISH
pounds OF floating nature requiring
liouidation or consolidation. The cost
Of the war is great and money ~ uF-
gently needed for the starving ih'i'i'-
grants from the conquered viiayets' as
well as for the thousands Of civil func-
tionaries no longer wanted there.
The external Indebtedness OF turkey
may be summed up al about Su4o 4"'-
on. I'm respect of which France ana
Germany are the biggest lenders.
France is a creditor TO the amount OF
$500. 900 900. and Germany, according
10 Herr Helferich, director OF tne
Deutsche Bank. In the sum OF Sl"-'-
ono ,0o Rut Germany claims more
than 40 Der cent OF the ottoman rail-
WAYS. whereas France possesses on inc
same authority but 20 per cent OF inc
railway property OF turkey l"eSo
f.cts will have TO be borne In mind
y.ben the financial demands of the al
lies are considered.
The combined debt Of the four BAL
kan states reached the figure OF S4J4'-
200. 600 at the close OF last year lhIs
represents an increase OF 81 per cent
aince the wear 1900. The debt per head
has thus grown from about 500 to more
than S4l. while the population has IN
creased only - per cent The budget
arv evnenses are greater by fl,iUo.-
eco. or ST 90 per head, instead or aooV
at the beginning Of the century
The liabilities Of the Balkan states
have grown rapidly, whereas the con-
tributive resources have advanced but
slovlv Their commercial debt. owing
10 excess OF imports over exports mas
steadily become more oneTous, passing
from 81 10000 thirteen years ago 10
S11 100000 to-day. The huge cost 10
tbaea email nations Of the war just
ended must, OF course, also be borne III
mind. Bulgaria must find ere long
500 600 900 to liquidate It's POSITION
and as much more for the economic
needs Of the enlarged states under inc
new conditions. The monetary dehcit
~ Servia is about the same, out
Logger amount Will be wanted 10 meet
,ha economic requirements OF the King
dom A settlement loan OF perhaps
$40 600 600 and further one OF SSo,-
900 ono for railways and other works
,,,o,,d nrobably meet the urgent neces-
stiles OF Greece.
All these considerations will have 10
he fully weighed when discussing the
terms Of settlement. France is almost
az bg a creditor OF the Balkan States
az Of tie ottoman Empire, and there
fore. II only in the interest of the
French investors, an even balance
should be found by the technical ex-
merits at the conference in Paris. An
indemnity Of S2O0.O00,O0O has been
mentioned. but even If Turkey gave
wav ON the point it is doubtful II Tur-
kev's creditors would accept such a
uronosition. Whatever may be the eco
nomic value Of the coded territories in
the future, the conquerors Will without
doubt have TO pay an increased rate OF
interest on any new loans they sue
Feed in making.
1t is suggested that Russia might
cor,e 10 the rescue for once, in way,
NV Offering financial facilities to her
nroteaes. the Slav states of the Bal
kang