320 



GREECE. 



appointed to inquire into the financial condition of 

 Greece. 



The Greek Government resisted the proposed in- 

 ternational control, but at last gave way as the only 

 means of securing a treaty of peace and the evacua- 

 tion of Thessaly. Peace was signed with Turkey 

 on Dec. 4. On Jan. 7, 1898, the financial commis- 

 sioners made their report in the form of the draft 

 of a proposed law. embodying the provisions for an 

 arrangement with all the national creditors. On 

 Jan. 8 the Greek Chamber met to hear the provi- 

 sional budget of the Minister of Finance, who made 

 the receipts 87,576,000 drachma!, reckoning a loss 

 of 10,000.000 drachma! owing to the Turkish occu- 

 pation of Thessalv, and the expenditures 87,251,000 

 drachma!, of which 21.445,000 drachmai were for 

 expenses of the debt and 65,806,000 drachmai for 

 the administration. No business could be done un- 

 til tlu- treaty witli the powers was arranged, and the 

 Chamber therefore adjourned. The majority re- 

 frained from overthrowing the ministers, being 

 determined that they should complete all the humil- 

 iating arrangements of the peace. The Cabinet as- 

 sented to the report of the international commission 

 on Jan. 13. The commissioners reported that the 

 finances of the country could not be expected to re- 

 vert to a state, of equilibrium before 1903, and that 

 in the mean time large sums would have to be pro- 

 vided, not only for the indemnity to Turkey of about 

 3,700,000 sterling and the sum of 92,000 for com- 

 pensation for private injuries done by Greek troops, 

 out for the deficit in the budget of 1898, the conver- 

 sion of the floating debt, and possible future deficits 

 before 1903, when the revenue is expected to amount 

 to 2,495.000 and the expenses of the Government 

 to 1,618,000, leaving 877,000 a year for interest 

 and sinking fund on the existing debt and the new 

 debts to be created. The project of law proposed 

 the institution of a Commission of International 

 Control over the finances of the country, which 

 would have a certain definite revenue arising from 

 some internal revenues and the customs of certain 

 places, sufficient to provide 625.000 a year for the 

 service of the old debts at a greatly reduced interest, 

 and 250,000 a year for the new debt. The amount 

 of the new loan was fixed at 6,800,000, of which 

 3,800,000 would be used to pay off the war indem- 

 nity and private claims and 1,200,000 to meet the 

 deficit of 1898. It was proposed to issue a loan of 

 5,000,000 at once for these purposes, leaving 

 1,000,000 to be issued later for the conversion of 

 the floating debt, and 800,000 to be raised in such 

 sums as may be needed to provide for subsequent 

 deficits. Germany, Austria, and Italy having de- 

 clined to take part in the arrangement, France, 

 Great Britain, and Russia agreed jointly and sever- 

 ally to guarantee loans to the maximum amount of 

 6,800,000. The immediate loan of 5,000,000 it 

 was proposed to raise by issuing 2j-per-cent. bonds 

 at u fixed price to be determined by the state of the 

 market at the time of issue. Greece will pay 2 per 

 cent, for five years, and after that 3f per cent., 

 furnishing a sinking fund for the extinction of the 

 debt at the end of fifty-three years, to be applied in 

 annual drawings for the bonds at par. The loan 

 can be converted after twenty years have elapsed. 



In accordance with the preliminary treaty, the 

 Greek Chamber had to vote the law approved by 

 the powers without alteration. The international 

 commission was to consist of six members, one for 

 each mediating power, who would decide questions 

 by a majority or votes, and would furnish an ac- 

 counting to the Greek Government every six months 

 and publish an annual report. The collection of the 

 assigned revenues was intrusted to a Greek company 

 under the absolute control of the commission. 

 Should the affected revenues prove insufficient iu 



any year to meet the charges of the debt, the Greek 

 Government would have to make up what is lack- 

 ing. The old debts were to be unified and converted 

 into a new loan, and the forced currency, amount- 

 ing to 94,000,000 drachmai, was to be extinguished 

 by annual payments, and no new currency to be is- 

 sued without the consent of the commission, which 

 should apply the excess of the revenue over the 

 amount required for the service of the foreign debt 

 to the service of the internal debt and the with- 

 drawal of the forced currency. The assigned rev- 

 enues comprise the monopolies, to be conducted on 

 the existing system, which are valued at 12,300,000 

 drachmai a year, including emery from Naxos; the 

 tobacco duty, valued at 6,600,000 drachmai ; stamps, 

 producing 10,000,000 drachmai; and the Piraeus cus- 

 toms, estimated at 10,700,000 drachmai, making a 

 total of 39,600,000 drachmai. In case of a deficiency 

 the customs of Patras, Volo, Corfu, and Laurium are 

 assigned as supplementary revenues. Should cus- 

 toms receipts fall below the estimate in consequence 

 of a modification of the tariff, the Government is 

 bound to concede supplementary revenues. By ar- 

 rangement with the bondholders the old debts were 

 divided into three categories. The first, embracing 

 the two privileged loans, the monopoly loan, and 

 the funding loan, receive 1.72 per cent., being 43 per 

 cent, of the original interest. The second category 

 contains the 5-per-cent. loans of 1881, 1884, and 

 1890, on which the interest is reduced to 1.60 per 

 cent. The third category, consisting of the 4-per- 

 cent, rentes, receives 1.28 per cent., being 32 per 

 cent, of the full interest, the same as in the second 

 category. An arrangement was made regarding the 

 plus values, or excess of revenue over the require- 

 ments, by which, after deducting 18 per cent, to 

 obtain net revenue, the remainder will be appor- 

 tioned in the ratio of 30 per cent, to increase the 

 interest on the old debt, 30 per cent, to increase the 

 amortization, and 40 per cent, to go to the Govern- 

 ment. The profit to be derived from the fall in ex- 

 change will be distributed in the same way. Since 

 April, 1894, the Government has withheld 70 per 

 cent, of the coupons falling due, and of the arrears 

 it was arranged to pay 5 per cent, in four annual 

 installments. 



The powers awaited the answer of the Greek 

 Government before signifying their approval of the 

 scheme of international control or making a defi- 

 nite offer to guarantee the new loan. On Feb. 16 

 the Russian Government, and shortly afterward the 

 English and the French governments, formally 

 undertook to guarantee the indemnity loan. 



The Crown Prince, before the end of January, 

 published his report of the campaign in Thessaly, 

 justifying his plan of campaign and his conduct of 

 the retreat, and blaming the Government for the 

 lack of preparation, the lack of commissariat, trans- 

 port, camp equipments, and medical service, and 

 the entire absence of reserve troops, and accusing 

 Gen. Makri of disobedience of orders in failing to 

 support the right wing at Deleria, and causing the 

 rout to Turnova and Larissa. Recrimination among 

 those who took part in the war "became epidemic. 

 The late minister of Marine, M. Levidis, who was 

 himself accused of a total lack of naval knowledge, 

 brought charges against Commodores Sachtouris and 

 Kriegis of disobedience of orders in not attacking 

 the Turkish coast towns. About 50 officers were 

 brought up before the military commission of in- 

 quiry on various charges of incapacity, disobedi- 

 ence, and cowardice. Lieut. Kokorris. whose tele- 

 gram to the minister had led to the removal of 

 Commodore Sachtouris. was, at the latter' s instiga- 

 tion, tried for insulting his captain and sentenced to 

 a year's imprisonment. His condemnation occa- 

 sioned much popular indignation. The reawaken- 



