The Devils Lake world and inter-ocean. (Devils Lake, N.D.) 1915-1920, 1919-12-31

Turkey Did Not Default
It is pointed out that Turkey did
not default on her indebtedness In re.
cent years, but funds, for the payment
of interest and amortization were con.
tinually: increasing and doubling at
the rate Of every is years. The rev
enues Of the country as a wholes,wers
increasing at the normal natural rata
of other prosperous countries, In Eu.
rope .sc.: . '.s$ ~ "
An enormous percentage Of revenue
never reached the treasury, the loss
being estimated by some as high as
so per cent. This was partly ascribed
to the system of farming out the taxes
by districts. collectors paying in ad.
vance a certain sum and then collect
ing what they could.
For: Americans who are considering
the mandate question: or Of doing bust
ness, 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 $1,O7S.'
100000, Of which $7s3, 100000 was in
the public debt or loans to the gov.
eminent, the difference in private en-
terprises and concessions.
The bulk of, these investments was
in loans to the government. What was
done with this money! Many Of the
loans were issued 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 sqdandered 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 continually
increased.
SpneFe8 OF -
The object Of such loans, it is stated,
was partly with the political intent
Of making Turkey default SO inter-
ested powers could take over her
finances and control the country, as
was done in 1881. This led to the
creation of loose spheres of influence,
Germany taking Koia Plain, the
French, Syria, with the Italians want
ing the province they at present oc-
cupy, and the British and the Russians
seeking Constantinople. Ins the coun.
ell Of administration of the Ottoman
public debt, which continued until the
war and has been resumed In some
fashion, there was one Englishrnan,
one Frenchman, one German, one Aus.
trian and one italian, with the presi-
dency alternately occupied by an Eng.
lishman and 4 Frenchman.
The conclusion of the investigator
is that IL the investments had beea
made for productive enterprise and
had created sources for meeting II
terest and the debt, 1t would hav>
been child's play to carry the debt
and pay It Of. However, .as the debt
was lowered, in spite Of the above. at-
tempts, additional loans were made
Not all OF the sums Borrowed bysstaA
government were wasted; for exllnn
!, Die about $50.O00,00o was used to. help
build the Bagdad railway. Although
1 the Germans would have built the ifnt
with their own money, they actually
rot Turkish money to finance what
they considered 4 German enterprise
i. .,E@.l ~ !. -----. - ~.