The Sultan has signed a decree " settling" the repudiated
Turkish Debt. The principle of the settlement is that the nominal debt shall be reduced to the amount actually received,— that is, in the case of the General Debt, shall be halved, and that one per cent., increasing to four per cent. if the revenue flourishes, shall be paid upon the reduced capita]. This interest is guaranteed by an assignment to the Commissioners of part of the revenues arising from the monopolies of tobacco and salt in certain pro- vinces, from the surplus customs' duties to be produced by a higher tariff, from the tribute to be received from Bulgaria, Eastern Roumelia, and Cyprus, and from some small taxes. This arrangement halves the Debt, sweeps away the special guarantees of many bondholders, yields only a half per cent. on existing bonds, aud may be re- pudiated to-morrow, when it has- served its object, which- is to pay off the Galata bankers, who will then begin lending money to the Palace again. It is believed that it will be strenuously resisted by the bondholle:.s, whose assent, -however, is of no importance. if they do not take what the Sultan offers, they will get nothing, which is the exact amount they deserve, for lending at ten per cent. to such a Power, for such objects, and on such security. The scheme shows of itself the precise value of special securities pledged by an independent State. It is absolutely nothing.
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