The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-12-08
AMERICANS find
TURKEY STABLE

wv oo.-t1cS iic
Associated Pressl-American experts
who have investigated the financial
condition of the former Ottoman en-
pire say they are convinced that it is
fundamentally sound. Several consfd-
erations are advanced to support this
conclusion.
First it is stated that the popu-
lar point of view that Turkey was
bankrupt before the war was partly
created artificially for the benefit of
foreign financial interests with the OBJ
ject of frightening other would be in
vestors and for political reasons OF
establishing spheres of influence.
The fact that Turkey was always
able to secure loans is cited as evil
dence of her financial soundness.
though against this may be advanced
the observation that she was politi-
cal center coveted by many powers
who were p1oyed, the one against the
other, and that financial considera-
tons were sometimes subordinated to
political purposes.
1t is pointed out that Turkey did not
default on her Indebtedness. in recent
years, but funds for the payment of in
terest and amortization were continue
ally increasing, and doubling at the
rate every fifteen years.
The revenues of the country as a
whole We're increasing at the normal
natural rate of other prosperous coun
tries in Europe.
An enormous percentage of revenue
reached the treasury, the loss being
estimated by some as high as fifty
per cent. This was partly ascribed to
the system of farming out the taxes by
districts, collectors paying in advance
a certain sum and then collecting what
they could.
For Americans who are considering
the mandate question or of doing bus
mess here under whatever government
is established, it is pointed out that
the above facts show revenues already
adequate to conduct the old govern
ment and that with good government,
the old Ottoman empire would have
been financially strong.
Before the war foreign investments
amounted to the equivalent of SLOTS
600, 900 of which S783, 200 900 was in the
public debt or loans to the government
and the difference in private enter
prises and concessions
The bulk of these investments was
in loans to the governor below par so
that all of the money never reached
the treasury. Enormous commissions
are believed to have been paid to Euro
pean bankers and in qualifications to
/ various local ministers to get their
support for the loans. Sums that did
reach the treasury are said to have
been squandered on palaces, harems
and in other unproductive ways.
| So the loans did not, on the whole
| create sources of new revenue and
therefore the public debt continual
/ ~ increased. 1t is to be noted that in
the late seventies and the early eighties
| the government could not pay interest
on its operations in recognition of the
| doubtful manner in which most of the
| loans had been made, and new issues
| were put out with the old ones being
/ taken in at reduced face value.
| Suggestion has been made here thai
these facts may lead the peace con
/ ference to write off more of the ma
/ tional debt.
/ The object of such loans it is stated
/ Were partly with the political intent OF
| making Turkey default so interested
/ powers could take over her finances
/ and control the country, as was done
/ in 1881. This led to the creation o,
/ loose spheres of influence, German,
| taking Konia Plain, the French, Syria
| with the Italians wanting the province
they at present occupy, and the Brit
ish and the Russians seeking Constan
4 ton Of the Ottoman public debt, which
| continued until the war and has beer
Presumed in some fashion. there was ons
+ Englishman. one Frenchman, one Ger
/ man, one Austrian, and one Italian
| with the presidency alternately occu-
i pied by an Englishman and a French
man. OF this public debt France own.
ed sixty per cent, Britain fourteen per-
! cent, Germany twenty-one percent, ant
| four per cent was owned between ths
/ Italians and the Austrians.
4 The conclusion Of the investigat tors Ii
/ that If the investments had been made
for productive enterprise and had ere
ated sources for meeting interest ant
the debt. 1t would have been child.
play to carry the debt and pay it off
/ However. as the debt was lowered, II
spite OF the above attempts, addi-
tional loans were made. Not all o.
the sums borrowed by the government