802 



TURKEY. 



to wit, the products of the monopolies of to- 

 bacco and salt, and of certain taxes and tithes. 

 These will be administered by a special com- 

 mission called the Council of Administration 

 of the Ottoman Public Debt. Of the proceeds 

 of these revenues four fifths will be applied to 

 the payment of interest, and one fifth to the 

 reduction of the capital. To the payment of 

 the capital will be applied also the quotas of 

 the Ottoman debt to be assumed by Servia, 

 Montenegro, Bulgaria, and Greece. The bank- 

 ers of Galata, who had prior rights to a portion 

 of these revenues as a guarantee for advances 

 amounting to 8,170,000 Turkish pounds, were 

 indemnified by reserving 590,000 Turkish 

 pounds (1 Turkish = $4.30) annually out of 

 the mortgaged revenues for the payment of 5 

 per cent interest on their debt and its gradual 

 extinction. If the yield of the ceded revenues 

 is more than 5 per cent of the reduced debt, 

 the excess will be turned into the Turkish 

 Treasury. 



The tobacco monopoly, which is one of the 

 resources ceded to the bondholders, is to be 

 farmed out in the same manner as the Italian 

 regie. The loans comprised in the resettlement 

 are the general consolidated debt, the loans of 

 1858, 1860, 1862, 1863-'64, 1865, 1869, 1872, 

 and 1873, and the Turkish lottery railroad 

 loan. The loans of 1854, 1871, and 1872, are 

 secured by the largest part of the Egyptian 

 tribute. 



The loan of 1855, guaranteed by France and 

 England, consumes the balance of the tribute 

 and an annual sum of 197,602 sterling besides. 

 The service of the domestic debts is provided 

 for in the budget of 1880-'81. The European 

 bondholders do not expect to receive from the 

 ceded revenues over 1J per cent interest per 

 annum on the reduced capital. 



The budget for the year ending March 13, 

 1881, was as follows, in piasters (1 Turkish 

 piaster = 4-3 cents) : 



RECEIPTS. 



Tax on land products 225.000,000 



Military exemption tax 46,000,000 



Tithes... 500,000,000 



Customs 180,000,000 



Sheep-tax 165,000,000 



Tobacco 100,000,000 



Various duties 96,993,000 



Government land 5,200,000 



Forests 6,010,000 



Salines and mines 72,309,000 



Posts 6,300,000 



Telegraphs... 15,700,000 



Receipts of Navy 86,505,000 



Receipts of Ministry of War 28,500,000 



Receipts of Artillery Department 4,009,000 



Sanitary duties 5,135,000 



Egyptian tribute 76,500,000 



Eastern Eoumelian tribute 24,000.000 



Other tributes 13,372,000 



Miscellaneous sources 8,991,000 



Total 1,615,584,000 



EXPENDITURES. 



Foreign debt service 209,647,961 



Internal debt service 89,812,441 



Floating debt service ... 241.8C3.946 



Civillist 86,497,324 



Senate 2,406,019 



Chamber of Deputies ... 6,593,981 



Council of State 1,880,400 



Brought forward 588,702.072 



Audit 1,006,640 



Prime Ministers Office 2,291.364 



Magistracy 15,081,843 



Administration of Interior 52,704,152 



Prisons 8,780,680 



Posts and telegraphs 24,959,098 



Other expenses of Interior 619,300 



Ministry of Foreign Affairs 19,810,232 



Justice 32,809,850 



Public Instruction 8,100,093 



Public Works 10,330,004 



Commerce and Agriculture 15,163,720 



Finance 133,200,717 



War 536,804,944 



Marine 81,154,650 



Artillery Department 86,144,487 



Pious foundations 33,573,414 



Pensions and charities 52,552,851 



Total ordinary expenditures 1,703,925,116 



The estimated extraordinary expenditures 

 are 210,951,243 piasters, making the total ex- 

 penditures 1,914,876,359 piasters, or about 

 $82,340,000, to 1,615,584,000 piasters or $69,- 

 470,000 of revenue, leaving an estimated defi- 

 cit of 299,292,359 piasters. 



FOKEIGN AND DOMESTIC POLITICS. The Sul- 



tan was drawn into a closer friendship with 

 Germany as the only great power which was 

 not ready to devour some portion of his do- 

 minions. Upon the formation of the Gam- 

 betta Cabinet there were prospects of a mili- 

 tary alliance in the event of a war of revenge. 

 When Bismarck saw that there was no reason 

 to apprehend a French war, he endeavored to 

 discourage the hopes of the Sultan of recover- 

 ing Tunis and re-establishing his authority over 

 the whole of North Africa. As against the 

 designs of Gambetta in Egypt, Germany was 

 prepared to support the position of the Porte ; 

 yet, in the development of the Egyptian ques- 

 tion, the German advice to the Sultan was to 

 accept the course of England as inevitable 

 with less effect, however, than was met 

 with in persuading Abdul-Hamid to acquiesce 

 in the encroachments of Austria. Friendship 

 with Austria and England and a suspicious at- 

 titude toward France and Russia on the part 

 of Turkey, subserved in different ways the in- 

 terests of Germany. The eastward advance of 

 Austria promotes the political and commercial 

 expansion of Germany. In the Egyptian ques- 

 tion, besides wishing to avert the danger of a 

 European war, the German Chancellor was 

 satisfied to have England seize in advance the 

 " compensation " which Russia would proffer 

 to Great Britain in the final division of the 

 " sick man's " estate, and thus help to hedge 

 the Muscovites out of the Balkan Peninsula. 

 The failure of Germany to support the demands 

 of the Sultan in the Egyptian question caused 

 a diminution in his faith in German amity and 

 reliance on the advice of his new friend. 



The Porte sent a circular note to the powers 

 on October 3, 1880, when the combined fleets 

 were preparing for the Dulcigno demonstra- 

 tion, stating what it was ready to do to carry 

 out the unexecuted clauses of the Berlin Treaty. 

 In the same note it offered to arrange a com- 

 position with the bondholders. The Sultan's 

 motive in volunteering to provide security to 



