3 DR 42! Ds UC-NRLF 57 SOD s f t ITS FUTURE BT :HIBALD j. DUNN, F',S.S,, F.R,HIST.S Member of the Central Aston Secitty* fce One '.Shilling: TURKEY AND ITS FUTURE f BY ARCHIBALD J. j DUNN, F.S.S., F.R.Hisx.S. Member of the Central Asian Society. LONDON : EFFINGHAM WILSON. 1905. I LONDON : PRINTED BY ST. VINCENT'S PRESS, 333, HARROW ROAD, W. ID'S CONTENTS. CHAPTER. PAGE. I. AWAKENING OF TURKEY 8 II. GERMAN ENTERPRISE IN TURKEY . . ... .7 III. FINANCES 16 IV. RAILWAYS 23 V. RESOURCES 33 VI. RELIGIOUS TOLERANCE 38 VII. BRITISH TRADE WITH TURKEY . . . . . .46 VIII. THE FUTURE OF TURKEY 50 IX. CONCLUSION 58 f . TURKEY AND ITS FUTURE , TURKEY AND ITS FUTURE. CHAPTER I. THE AWAKENING OF TURKEY. THE nineteenth and twentieth centuries will probably be noted in future history as an age of fundamental changes, both in the political and scientific worlds. It has been an age which has witnessed a marvellous increase in scientific discoveries and in their adaptation to the well-being of the human race. It has also been an age of revivals, of the awakening into life of races which had been long considered as somnolent, if not dead. The changes which have taken place in the East have startled the Western world as something almost supernatural in their sudden- ness. Who could have thought, fifty years ago, that Japan would spring in so short a time from semi-barbarism, as was supposed, to be one of the strongest Powers in the world ? We have at last- recognised the fact that the best results of Western civilisation, and a knowledge of applied science in all its forms, can be acquired and even improved upon by Oriental peoples. We must admit that what has been accomplished by Japan may, in time, be also effected by other Eastern nations, with results that no man can foresee ; and that it was from no lack of mental capacity or intelligence that the East has, for so many ages, looked upon Western civilisation with haughty indifference, if not contempt. The learning and traditions of the Eastern sages of the past were considered sufficient wisdom for the happiness of the human race. Nevertheless, India has been conquered and reorganised by Western civilisation under British rule, while Japan, by an almost miraculous adaptation of Western science, has defeated the mighty Empire of Russia, ( 4 ) It is a revolution in political history, and we are only witnessing the first scenes in it. The leaven is working in other Asiatic States, such as Afghanistan, Burmah, Siam, and Tonquin. China is being zealously educated by Japan in all that Western science adapted to Oriental methods can teach, and the next century will no doubt show extraordinary results, which will change the face of the world. For this reason it seems to me that the vital interests of the British Empire are involved in the future development of Persia and Turkey, the two Empires which alone could threaten our communi- cations with India. Russian intrigue is already busy with the former, and German ambition with the latter. I wish, in this pamphlet, to call attention to some facts with regard to Turkey which are too often overlooked. The first is that from the accession of the present Sultan, Abdul Harnid II. , a new era of improvement has commenced in the Ottoman Empire. He is an enlightened Sovereign, who is striving to raise the condition of his subjects up to the level of other States. From the first he cut down the expenses of his palace at Constantinople, and he corrected many of the abuses among the functionaries of the Government. Commissions were appointed to regulate the finances of the Empire. Concessions were granted to foreign capitalists to construct railways and other public works, as also to develop the enormous riches of the country. Eeligious freedom has been granted to Jews and Christians alike. Schools, orphanages, hospitals, &c., have been established and subsidised by the Sultan out of the income of his Civil List, at the grave risk of alienating the respect of his Moslem subjects. He has had enormous difficulties to contend with ; if he has not been able as yet to achieve complete success, let us make allowances, bearing in mind how many years it has taken us in this England of ours to overcome the resistance of " vested interests " to the introduction of desirable reforms ; for in such matters the Moslem is even more conservative than the Christian. Turkey is still socially and religiously in much the same condition as England was in the reign of Elizabeth. In each case we find the existence of a hierarchical autocracy, ruled by a Sovereign who is head of both Church and State, very slightly fettered by the national representatives. In both cases we find the Sovereigns animated by the same desire to advance the material prosperity of the peoples they govern. There is one difference, however, which. ( 5 ) < although important, is often ignored. The Sultan has granted more freedom to his Christian subjects than Elizabeth ever granted to the Nonconformists or the Catholics in her reign. Turkey will improve , in course of time, as England has. But the Sultan is suffering from the effects of the misdeeds of his predecessors, and this suffering takes the form chiefly of financial embarrassment. The Western Powers to whom he has appealed for advice and assistance have consolidated his debts, but in doing so they have loaded him with the payment of a heavy annual interest which almost strangles him. And yet the lands which he governs are as rich as any upon the earth's surface. The present financial position of Egypt shows what can be done by the intelligent develop- ment of the material resources of a country. The riches of Turkey are far greater than tbj>se of Egypt, and are only awaiting develop- ment. It is clear that the independence of the Ottoman Empire as a State is of supreme importance to the world generally, and to the balance of power among the Western nations. Russia has been striving for more than a century to establish her capital at Con- stantinople, and to assume the position formerly possessed by the Emperors of the East at Byzantium. France, under the Napoleonic Dynasties, claimed the Protectorate of the Christians of the East. Now comes Germany, who, under the leadership of an ambitious and energetic ruler, makes a very bold bid for the Protectorship of the Christians in the whole of the Near East, upon the plea of protecting German commercial interests. If and when the Baghdad Railway shall have been built, Germany's claims to paramount influence in Asia Minor, from the Bosphorus to the Persian Gulf, will be indis- putable. It is surely impossible that Great Britain should be a passive witness of such an eventuality. The Suez Canal is the high road to India and our Eastern possessions. It is of great importance to us that it should continue free from foreign interference, as it is at present, thanks to British preponderance in Egypt, which commands the Western coast of the Red Sea. The Eastern coast, however, is Arabian territory, and therefore under the control of the Sultan. As long as he is our friend we shall have nothing to fear from him. But he has his own troubles in this region, from the Bedaween who constantly harry and rob the pilgrimage caravans from Jeddah to ( 6 ) Mecca, and from the semi-independent tribes of the Yemen and the Aden Hinterland, whose recent insurrection has been so quickly suppressed. There is always a danger to be feared from the well-known " sentimentalism " of Germany for struggling nationalities, as was evidenced, for example, by the famous telegram of the Kaiser to Kruger at the beginning of the South African campaign. Who can say whether he might not find it to his advantage to offer even now his assistance to the local Sheikhs of Arabia, to protect them against their Suzerain ? The subject of the protection of British interests in the Near East, together with the safety of our route to India, has claimed the attention of our Ministers for many years. In 1872 a Select Com- mittee of the House of Commons was appointed to study the project of the Euphrates Valley Railway. It comprised members possessing the highest authority upon questions relating to India, Asia Minor and Persia. Evidence was given by Sir H. Eawlinson, Sir Bartle Frere, Lord Strathnairn, Sir Donald McLeod, Lord Stratford de Redcliffe, Sir H. Green, &c., who were all agreed upon the para- mount importance of our guarding the route to India against any other Power. It is characteristic of British apathy or indolence that now, after more than thirty years' delay, during which the world has not stood still, though we have ; while Germany is building a railway across Asia Minor to Baghdad, and is negotiating for the control of the rich oilfields on the Tigris, we have done nothing. We cannot blame the Kaiser for his ambition to further develop German trade in the East in competition with British trade it is a perfectly legitimate object. Lord Lansdowne admitted in his speech in the House of Lords last year, that in this region " we are feeling very keenly the competition of other Powers." Quite so; but this admission should lead to action of some sort, and this is just what the Government will not do. "Leave it to our successors!" is always the cry, if any decisive action is required of them, for action means the expenditure of money, and the eyes of the Opposition are upon them. It was not by this kind of policy that the British Empire has been made and will be consolidated. India was not won thus, nor South Africa either. CHAPTER II. GERMAN ENTERPEISE IN TURKEY. DID we think a year ago, when our English capitalists refused to assist the German group of bankers who were so intent upon the construction of the Baghdad Railway, that the project was killed and would be abandoned ? Nothing of the kind ecce iterum Crispinus! and even more vigorous than before. Germany has the advantage of possessing a Government which keenly appreciates the results of extended commerce as an aid to political influence, and in consequence it encourages national enter- prise by means which it would shock the dignity of our own uncommercial rulers even to contemplate. As late as February, 1905, a shipload of German bankers, capitalists, merchants, and contractors arrived at Constantinople, under the guidance of an official of the German Ministry of Com- merce, with the object of studying the means of developing German commerce in the Ottoman Empire. Simultaneously with their arrival, the Kaiser sent decorations of the highest class to the Grand Vizier and to the Private Secretary of the Sultan; a very business-like proceeding, but one which would scarcely commend itself to the dignity of our own Government. It was Do ut des, as Bismarck said. Napoleon's gibe that we were a " nation of shop- keepers " seems to have frightened our rulers from appearing to show any interest in the advancement of British commerce. Not so the German Government, who leave nothing undone to encourage the extension of the trade of their own countrymen in regions where they hope to increase German political influence in the future. The most notable example of this far-sighted policy was the project of the Baghdad Railway, which was so warmly supported by the Kaiser, who recognised that the construction of that famous line by German capital would not only open a practically unlimited ( 8 ) market for German trade in Asia Minor, but would necessarily entail in the Jong run the predominance of German influence from the Bosphorus to the Persian Gulf. And the results which have followed its construction, so far as it has been completed, have amply justified his anticipations. The consumption of German manufactures has greatly increased, to the detriment of those of other countries, as is shown by our own consular reports. It is this fact which has probably suggested the deputation of German capitalists to which I have referred. As Sir Charles Dilke has sensibly remarked, we need not imagine that the withdrawal of British capital from the enterprise would stop the completion of the Baghdad Railway, though it might delay it for a time ; the project was too practical and too certain in its results to be easily abandoned. The line traverses in its course some of the richest lands in the world, abounding in every kind of agricultural and mineral wealth, which only await the aid of railway transport to produce an enormous revenue. Therefore we can only admire the intelligence of the Kaiser in encouraging the enterprise of his subjects in opening up this land of promise. The advantages which must accrue to German commerce by the construction of the railway were ably set forth by Dr. Paul Eohrbach, in a pamphlet published in 1902, entitled "Die Baghdadbahn." In it he lays particular stress upon the vast agricultural resources of the Mesopotamian Valley, which was once the granary of the whole world, and in early ages supported a population of many millions. He also calls attention to the great deposits of petroleum which exist at Mosul, Kerkuk, Tegrit, &c., on the banks of the Tigris and the Euphrates, which he says are superior, both in quantity and quality, to those of Baku and Batoum. In the development of these he sees the possibility of providing the guarantee required for the capital of the Baghdad Railway. In this pamphlet he strongly urged his fellow- countrymen to lose no time in securing concessions from the Turkish Government to work and develop these oilfields, for which he pre^ dieted a future as great as those of Pennsylvania. It is evident that his suggestions have been adopted, for we are told by the Frankfurter Zeitung that the deputation referred to "have applied to the Sultan for concessions to work and develop the oilfields on the Tigris and the Euphrates." I wish here also to call attention to a fact which is very signifi- ( 9 ) cant, but which has been little noticed in this country. It is worthy of record, as showing the thoroughness with which the plans for the future development of the Baghdad Railway have been studied and prepared. A group of German capitalists, represented by the Deutsche Bank of Berlin, have very cleverly secured the control of the " Mahsousse Shipping Company," which constitutes the mercantile marine of the Turkish Admiralty. This company possesses a practical monopoly of the Government traffic between Constantinople and the ports of Asia Minor, Egypt, the Eed Sea, the Persian Gulf, and the Northern coasts of Africa. It owns nearly all the wharves, landing stages, warehouses, &c., at the various harbours, and possesses certain privileges with regard to goods, &c., landed or shipped at them. The manner in which the Garmans secured the control of this important line of steamers is worth telling. A few years ago, the Mahsousse Shipping Company got into financial difficulties, as Turkish companies often do. The steamers were old and slow and out of repair ; the service was irregular and dear, and notwithstanding all its advantages, was unable to cope with the superior accommoda- tion and lower rates offered by competing lines. The Admiralty could not bear the expenses of building or purchasing new vessels, and were compelled to borrow money to pay for necessary repairs. The Anatolian Kailway offered to assist, and advanced to the Mahsousse Shipping Company 45,000 for the purpose. This enabled it to carry on its business for a time after a fashion, but the traffic did not improve, and, in fact, the steamers did not pay expenses, owing to inefficient management. After a time the Anatolian Eailway, which, it must be remembered, forms a section of the projected Baghdad Eailway, began to press the company for the repayment of its loan. The company appealed to the Govern- ment for help, but without avail, and the Eailway threatened to foreclose the mortgage and to seize the fleet. It was a difficult position, for the finances of the Turkish Government were strained by the expenses entailed by the dis- turbances in Bulgaria and Macedonia. Under these circumstances Germany came to the rescue as amicus curia. The Deutsche Bank offered to finance the Mahsousse Shipping Company and to free it from its troubles upon certain terms. These were as follows : 3 ( 10 ) 1. The Deutsche Bank was to repay to the Anatolian Railway Company the 45,000 borrowed, &c. 2. It would also pay for the construction of six new steamers by the Danube Shipbuilding Company, one of its own concerns. 3. The entire management and control of the Mahsousse Shipping Company were to be handed over to German officials appointed by the Deutsche Bank. 4. The interest on the loan, which was estimated to amount to 125,000, was to be 5 per cent, per annum, and an addi- tional 3 per cent, was to be paid for the amortisation of the capital. The terms were onerous, but the needs of the Shipping Company were very pressing, and the bargain was carried out in July, 1902. The Berlin papers were in ecstasies, for they saw in it the acquisition of a link between the Anatolian Railway and the European railway system. By means of the Mahsousse vessels, trains carrying goods from Germany could be landed on the Asiatic coast without breaking bulk, a very valuable condition. In a very short time German captains and engineers replaced the Turks upon all the vessels ; German receivers were installed at all the booking-offices ; the wharves and warehouses passed into German hands; the rates of freight, landing charges, &c., were revised in favour of German commerce; the services of the fleet were improved and their punctuality secured. Everything has been done in Germany to popularise and encourage the settlement of Germans in Palestine, both by the Government and the banks. German colonies have been estab- lished at many points along the track of the Anatolian Railway, and have prospered, as was expected. Indeed, how could it be otherwise? Soil, climate, means of communication by railway with good markets had been provided, and the colonists enjoyed the protection of an energetic Empire, with which it behoved Turkey to remain friendly. There is little doubt that these colonies will increase and multiply along the route of the Baghdad Railway as it is pushed forward. It is the same policy as Russia has pursued in the construction of the great Trans-Continental Railway to the Far East, and will probably be attended by similar results. ( 11 ) Dr. Kohrbach states that the Russian colonists along the line in Turkestan established cotton plantations, and now despatch to Russia no less than seven million poods of raw cotton, of a value of 150,000,000 marks, annually. The lands which will be traversed by the Baghdad Railway are immeasurably more fertile than those in Turkestan, and are capable of producing sufficient grain, cotton, fruits, wool, &c., to supply the markets of the world. In a recent pamphlet on this subject, Dr. Hugo Grothe says : " May the new century not finish without a proper settlement of the colonisation question in Mesopotamia, so that near German villages, German ploughs and spades may do their work ; that in the plains which adjoin the Euphrates and the Tigris, in the country lying between Aleppo, Urfa, Mardin, and Nisebin, German hands may raise cornfields, such as those of the South of Russia ; that German vineyards may be cultivated in the valleys of the numerous rivers that flow from the Taurus Mountains, similar to those in Palestine and the Caucasus, and may it help to the economical welfare of Turkey and our own progressive growth." (" Die Baghdadbahn.") This is a very laudable aspiration, and it is one which will probably be fulfilled before long. I do not see any reason, how- ever, why English hands and English agricultural machinery should not be allowed to help in the development. It will be observed that the suggestions of Dr. Rohrbach have been speedily adopted by his practical fellow-countrymen. Now it appears to me that this concession, if granted, must inevitably be followed by very serious political consequences. One of these will be the firm establishment of German influence in the northern part of Asia Minor and over the rivers Tigris and Euphrates in their course to the Persian Gulf, which will then be a natural highway for a German commercial fleet, and doubtless a station for a German squadron to protect them. If we may assume that Dr. Rohrbach's estimate of the value of the petroleum deposits at Mosul are correct, then we shall witness the establishment of a German Baku and Batoum in the very position which is most threatening to British interests in Central Asia. Concessions for the canalisation and improvement of the navigation on the Tigris and Euphrates must inevitably follow, and will be granted, no doubt, to German capitalists and German engineers, if Sir W. Willcocks should fail in his 3A ( 12 ) application for irrigation concessions. The growing use of petroleum as fuel for steamships and factories will make the acquisition of the Turkish oilfields of immense value to the nation which owns them. To obtain access to them was avowedly one of the principal objects of the promoters oE the Baghdad Railway. It is a common saying that " commerce follows the flag "; it is equally true that " the flag follows the commerce," as, indeed, our own experience has proved in many parts of the world. We cannot blame the Germans for having followed our example. We have only ourselves to blame if we allow them to outstrip us in the race. Now, the commercial interests of Great Britain are at present much greater in Turkey than those of Germany, and this fact should move us to draw closer the bonds of our alliance with the Sultan. The general expression of public opinion in Great Britain and France has always been opposed to Germany securing the control of so important a line across Asiatic Turkey, but statesmen in both countries, recognising that it must be constructed ultimately, urge the advisability of England and France securing some influence over the line. The project, although at first favourably considered by the British Government, was strongly opposed in the House of Commons. Mr. Balfour expressed his views upon it in the following words : " Whatever course the English Government may pursue, sooner or later this undertaking will be carried out. There is no difficulty in regard to money. Whether the English Government do or do not assist, it is undoubtedly in the power of the British Government to hamper and impede and inconvenience any project of the kind ; but that the project will be ultimately carried out, with or without our having a share in it, there is no question. Therefore, the point upon which His Majesty's Government will have ultimately to decide, and which the Government may safely and wisely take into consideration, is whether it is desirable or not, that if this railway connecting the base of the Mediterranean with the Persian Gulf is to be constructed, British capital and British interests should be as largely represented in it as the capital of any foreign Power." The French Chambers were also strongly opposed to the project. Upon the motion that French capital should be prevented by law from joining the enterprise, the Chamber expressed its opinion emphatically by 398 votes for and 72 against the motion. ( 18 ) In England it was felt that the terms proposed by the German syndicate to British capitalists were unfair and inadequate. We were expected to provide 30 per cent, of the capital ; we were to consent to an increase in the Turkish tariffs ; to supply a suitable port on the Persian Gulf for the terminus of the railway. But we were to have only a small representation on the Direction of the railway, and the important questions of equal treatment for British and German traffic and of spheres of influence were left undecided. It was felt in the City by all except the group of Jewish bankers in connection with the Deutsche Bank that the proposition was altogether one-sided in favour of the Germans, and the Press gave forcible expression to these views. It is probable that in course of time some compromise may be arrived at, such as that the construction of the line from Baghdad to the Persian Gulf should be undertaken by British capitalists and remain under British control, while the northern portion from Baghdad to Constantinople should be constructed by the Germans and controlled by them. This would seem to be a just and equitable arrangement. I think it will be interesting here to quote some of the opinions which have been expressed by prominent writers regarding the great international importance of the Baghdad Eailway. Mr. Chirol, in his book on the " Middle Eastern Question," says that in 1899 the right was accorded to the Anatolian Kailway Company to extend their system from Konia to the Persian Gulf. The negotiations resulted in 1903 in a Convention giving to the "Imperial Ottoman Baghdad Railway Company" the right of con- structing railways to the Gulf in extension of the Anatolian Railway system. " This Convention not only assured to German enterprise a monopoly in Asia Minor and Mesopotamia, but added thereto a predominance in Syria. The Baghdad Railway, as at present traced, is to run from Konia through the Taurus, whence it descends by the fertile plains of Southern Cilicia to Adana, where it joins the Mersina- Adana line ; from Adana to Kilis and Tel Habesch, thence east across the Euphrates to a point 20 kilometres south of Birejik by Haran, Ras-el-Ain, and Nisebin to Mosul, and so to Baghdad and the Persian Gulf. Branch lines are to run to Aleppo, Urfa, Khanakin, a.nd to a point of the Gulf from Zubeir. ( 14 ) " The line has been divided, for financial reasons, into sections of 200 kilometres, each of which will benefit, when constructed, by a kilometric guarantee from the Turkish Government. Before the ratification of the Convention, the Deutsche Bank, representing the financial interests of the Baghdad Eailway Company, addressed themselves to the Ottoman Bank, as representing French interests, with a view of obtaining their co-operation in the undertaking. The Ottoman Bank would, it was hoped, ensure the political support of the French Government, as well as the financial support of the French public. Later, similar advances were made to financial houses in Great Britain, with the same objects in view. Both advances were met in the first instance favourably, if without enthusiasm. The Governments of France and Great Britain expressed their general acquiescence by supporting the scheme, but it is said they took no active part in the negotiations between the principal parties concerned. That the German syndicate wished to internationalise the scheme certainly in a measure tended to advance its interests. France had been one of the first in the field in both Syria and Asia Minor. It was plain that if they did not march with the times they would be driven out of the field, to find themselves in the same position towards Germany in Asiatic Turkey as they are towards Great Britain in Egypt." In a paper read before the Central Asian Society in 1904, the Earl of Ronaldshay said : " I should view with so much dismay Germany or any other great Continental Power exercising the dominating influence in that part of the Near East which stretches from Constantinople to the Persian Gulf which the sole ownership of such a railway would inevitably confer upon them . . . that I advocate the participation of the country, upon certain conditions, in the Baghdad Railway scheme. . . . I should prefer to see an ultimate solution of the question which would display this country in possession of the section from Baghdad to the Persian Gulf. Under such circumstances the ' German road,' to quote so high an authority as Captain Mahan, ' would find its terminus in a British system, a not unusual international rela- tion.' . . . It is important that that portion of the dominions of the Sultan which lies between Baghdad and Koweit should be preserved free from the control of a great Continental Power. . . . "I need not recapitulate all the recent acts of benevolent ( 15 ) neutrality which Germany has perpetrated in the interests of Russia, whereby she is laying up for herself a rich credit account with that country, which will some day have to be paid off. But I would direct your attention to the shape which that payment may not improbably assume. Is it not probable that Russia's co-operation in the Baghdad Railway scheme may at some future time figure as part payment of Germany's little bill? And when this country finds herself alone of all the Powers in opposition to the scheme, will she be prepared to prevent its consummation ? And if she is not, will she look on with satisfaction at a Persia and a Turkey dominated by the diplomatists and Ministers of a hostile Russo- German combina- tion ? . . . Judging by the methods of German diplomacy in the past, there would be nothing in the least surprising in finding her at some future time walking hand-in-hand with Russia towards the Persian Gulf. . . . "As an example of what has already been effected by railways in Asia Minor, I may call to witness the report published by the Public Debt Administration in 1903, wherein it is stated that the tithes of the district traversed or affected by the railway have increased in the last twelve years by 46 per cent., and the statement by Consul Waugh that the Angora district, which exported no grain before the railway was opened, now has an annual export of wheat and barley valued at from 1,500,000 to 2,000,000. " There are in Upper Chaldoea, according to Sir Wm. Willcocks, no less than 1,280,000 acres of first-class land waiting only for water to yield at once a handsome return. ' Of all the regions of the earth,' he writes, 'no region is more favoured by nature for the production of cereals than the lands of the Tigris. . . . Cotton, sugar-cane, Indian corn, Egyptian clover, opium, and tobacco will find themselves at home as they do in Egypt.' ' CHAPTER III. TURKISH FINANCES. IT is sad to think that the destinies of States and peoples depend in so great a degree upon the financial resources of a country ; but so it is. The debts of a State can only be paid by the taxes wrung from the inhabitants in one way or another. If the governing powers are extravagant, fond of glory and conquest, millions are spent on the army and navy, which must be provided by the poor agriculturist or manufacturer. After a series of * brilliant campaigns, extending over many centuries, the Ottoman Empire has abandoned its career of con- quest and has settled down on the lands it has acquired. The tide of victory has ebbed, and during the last century the Sultans have experienced the result of the reaction. Province after province has been wrested from the Empire, and the Government has been brought face to face with the unpleasant financial results. In order to understand clearly the exact position of the Ottoman Empire, it will be necessary to examine here the present state of the finances. And, first, I would premise that it is extremely difficult for a Western mind to understand that of an Oriental. The indolence of the Turk so far exceeds that of any European race, that we must have recourse to one of his own words to express it. He calls it khef, which indicates an extreme listlessness and indifference to everything a state of beatitude in which all desire is dead. This is the effect of the doctrine of Fatalism, which has altogether paralysed the people of the Ottoman Empire. It is not surprising, therefore, that with such dispositions the troublesome and wearying subject of finance should have been so sedulously avoided by the Turkish Sultans. Whenever war broke out, or rebellions occurred, and in consequence more money was required by the army, the Sultan borrowed it upon any terms asked, from any banker who woulcl lend it. ( 17 ) The circumstances which preceded and followed the Russo- Turkish War in the Crimea loaded Turkey with an oppressive debt, which it was of vital importance to meet. Hence, in 1854, Great Britain guaranteed a Loan of ,3,000,000 based upon the Egyptian Tribute. It was a six per cent, loan, and was issued at 80. In the following year, 1855, England and France guaranteed a further Loan of 5,000,000. The fatal facilities of Finance which were afforded the Sultan Abdul Aziz by the German capitalists encouraged the expenditure of vast sums by the favourites of the Palace in every kind of luxury. In 1860 the floating debt amounted to 350,000,000 francs, for which the Government had not received 50 per cent, of value, and in some cases less. And so the debts of the Empire went on increasing year by year, the Ministers contenting themselves with paying the coupons of the Loans and such other debts as became unpleasantly pressing, putting off the others to a future date when it was possible to do so. Sir E. Malet, in his "Memoirs" gives an amusing example of this habit of the Turkish Ministers. Lord Lyons once asked Ali Pasha why he so often put off the payment of an indemnity due by the Government to a British subject. The Minister replied : " Well, the matter troubles me, but, you see, if we were to pay this claim at once, we should open the door to many other claims, so we prefer to delay payment as long as possible." M. Charles Moravitz, to whose able work, " Les Finances de la Turquie," I am indebted for the following statistics on Turkish Finance, says : " The present generation of Turks are bearing the results of the imprudence of their rulers in the past. War, pestilence, and corruption have entailed upon the country the burden of a debt which would have crushed any other nation similarly situated, or moved it to repudiate its liabilities, as Christian States have frequently defaulted." But Turkey has never done so, for the Moslem, with all his faults, is truthful and honest, unlike the Christian Slav. In 1897, when a severe financial crisis prevailed throughout Europe, notwith- standing a violent outbreak of cholera throughout the Empire, and the occurrence of the massacres of the Armenians by the rebellious Kurds, Turkey continued to pay her debts ; the interests upon the 4 ( 18 ) Loans were punctually paid. The Council of the Public Debt calmly continued its operations. In 1894 and 1895 it bought up Bonds to the amount of T1,273,822 ; in 189596 : Tl,221,(Xfo, in addition to 35,633 Lottery Bonds, and at the same time increased the Eeserve Fund by T182,121. This is a fact most honourable to Turkey, and should be remembered to her credit. But what is less known and is a fact which will surprise many people, is that during the last twenty years the Ottoman Empire has much diminished its debts. We can scarcely ever open a newspaper without reading an announcement that Turkey is negociating a Loan of several hundred thousand pounds with some financial house, or has just concluded one. This is what we see ; but what we do not see is that these are generally only temporary advances in anticipation of amounts maturing within a brief period ; that they are usually repaid in the course of a few months, and therefore do not increase the amount of the permanent National Debt. As to the Loans contracted and issued since the Decree of Mouharrem, the list is a short one : L~ The Customs Loan, 1886, has increased the nominal amount of debt by T6,500,000 The Fisheries Loan, 1888, by 1,650,000 The Consolidation Loan, 1890, by 4,999,500 The Tombak Loan, 1893, by 1,000,000 Railway Loans. 1894, by ... 1,760,000 Five per Cent. Loan, 1896, by 3,272,000 T19,181,500 It is true that through the conversion operations of 1891 and 1894, the Treasury took advantage of the reduction of the amount payable for interest, and capitalising the economy made, by obtaining an advance of about T2,000,000, but as this did not affect the amount required for the service of the debt, we need not notice the fact further at present. Let us turn next to the total amount paid towards amortisation. As regards the debt covered by the Decree of Mouharrem, the calculation is easily made. That decree devoted to amortisation one fifth of the product of the revenues conceded, plus the interest due upon Bonds already redeemed: therefore the additions to the Sinking Fund increase rapidly year by year. It is well known that the sums thus devoted to the extinction of the debt are used in the purchase of Bonds of the various series upon the Bourses of the world. Hence the amount of the nominal capital of the Loans. ( 19 ) diminished rapidly. Series A has already disappeared. Series B will be extinguished in eight or nine years. At the end of January, 1902, the Bonds amortised since the issue of the different series and the Lottery Loan, amounted to T23,332,000, or 20'09 per cent, of the total amount of the converted debt covered by the Decree of Mouharrem. As regards the other Loans, their amortisation, regulated by the different contracts relating to them, has proceeded regularly ; it had resulted in January, 1902, in a reduction of the nominal amount of the debt by T4,500,000. Finally, of the war indemnity payable to Russia, upwards of T7, 000,000 have been paid off. These various amortisations amount to a total of T34, 832,000. Deducting the amount of fresh loans issued since the publication of the Decree, there remains over a balance in favour of the amortisation of 115,650,500. How many European States can boast of having reduced their public debt during the past twenty years ? At the present moment the annual charges for the service of the Consolidated and Floating Debt figure out as follows : Loans converted by the Decree of Mouharrem and Francs. Priority Bonds 49,650,000 Ditto guaranteed by Egyptian Tribute 17,250,000 Customs 8,863,000 Fisheries 2,625,000 Consolidated 5,682,000 Tombak 1,136,000 Railways 1,740,000 1896 4,140,000 Russian War Indemnity 7,875,000 Railway Subventions 15,000,000 Floating Debt (approximate) 10,000,000 Total Francs ... 123.961,000 From this amount we should deduct the following, which are not derived from taxes paid by Ottoman subjects : Francs 17,250,000 paid by Eygpt. 3.150,000 Eastern Roumelia. 1,740,000 ,, Eastern Railway Companies. Francs 22,140,000 There remains consequently a direct charge on the Budget, or in other words, the taxpayers, yearly of 102,000,000 francs. Dividing this amount by the population of Turkey, which is estimated at 18 4A ( 20 ) millions, we find it comes to an annual charge of 5 francs 50 centimes per head. This sum, though small in comparison with the 32 francs per head paid by the French, presses much more heavily upon the Turk. The French National Debt, as shown by the last Budget, amounted to thirteen and a half milliards of francs, or 100 francs per head of the population. The Ottoman Public Debt amounts in all to 400,000,000 francs, or 23 francs per head. Mr. H. Babington Smith, the late president and British repre- sentative on the Council for the Administration of the Ottoman Public Debt, estimated the revenue for the year 1902-3 would stand approximately as follows : Five revenues T1,200,000 Tobacco tithe and sundries 180,000 Kegie .... - ... 761,000 Eastern Roumelian Annuity 342,000 Customs Bills... 152,000 T2,635,000 The chief desideratum for the Ottoman Empire is, not to increase its debt, but to pay it off as quickly as possible, and thus shake off the tribe of Jewish, Greek, and Armenian moneylenders, who are draining the life-blood of the nation. Hitherto the practice has been to borrow money at any price when an emergency arises, and when the interest falls due to raise another loan on exorbitant terms to pay it. The consequence has been a constantly increasing indebtedness to foreign creditors, who have an inconvenient way of suddenly demanding immediate payment backed by a foreign fleet. It is no wonder that the Sultan wishes to free himself from the persecutions of these troublesome creditors as soon as possible. It is with nations as with individuals ; in all cases happiness and comfort depend on financial ease. If a man lives above his income he is on the road to ruin and bankruptcy. And a nation is in exactly the same position. When the expenditure exceeds the revenue, the balance must be met by borrowing, and thus it happens that improvident States burden themselves with liabilities for money which they have but little prospect of being able to pay. For the nation, as for the man, there is always the tempter at his elbow the Jew banker with bursting money bags, the produce of usury and many ruined homes. And so the ruler yields to the tempter, and borrows from him the money needed to stave off the evil day. Thus ( 21 ) it is that the Jew banker, generally of German nationality, accumulates millions, purchases a title, and poses as a philanthropist. Now the Turk has never been at any period of his existence an economist. He has always been a soldier and a conqueror, and cares little for money until he finds he has need of it, and will then borrow upon any terms proposed. So he is an ideal prey for the Jewish moneylender, for he always forgets the date at which his liability falls due until it arrives, and then he raises another loan. Of two alternatives, one must be accepted if we wish to see the Turkish Budget properly balanced to equilibrium. Either the expenditure must be reduced, or the Imperial revenue increased. Now, it is not possible to economise to any considerable extent in the expenditure of the Army and Navy; rather these should be strengthened instead of weakened improved instead of abolished as being the sole means of defence for the Empire. There is certainly room for economy in the Civil Service Department, the collection of taxes, &c. The following statistics respecting the Import and Export trades of Turkey for 1903, furnished by the British Consul at Constantinople and published by our Foreign Office, prove that Great Britain is still the largest commercial customer of the Ottoman Empire. They are somewhat reassuring in view of the pessimistic reports which certain of our newspapers publish from time to time. Nevertheless, I must call special attention to the grave warning added by Mr. Consul Waugh : IMPORTS, 1903. Great Britain 5,701,000 Austria-Hungary 3,256,000 Germany 2,511,000 Italy 2,268,000 France 1,832,000 In 1904 the sales of British goods to Turkey advanced to 6,750,000. EXPORTS FROM TURKEY, 1903. Great Britain 6,370,000 France 4,060,000 Germany 1,881,000 Austria-Hungary 1,995,000 Italy 1,906,000 Mr. Consul Waugh says : " As regards percentages, it is un- ( 22 ) deniable that some of our rivals who started comparatively recently from very small beginnings, are advancing rapidly. But they are still far behind, and it is no service to British manufacturers to exaggerate the progress made by their competitors, nor to encourage people at home in the belief that the scientific and laborious efforts of German and Italian manufacturers on this market can be met by anything but similar efforts in the United Kingdom." CHAPTER IV. RAILWAYS. As I have said, the present Sultan has from the first shown a practical interest in the development of his territories by the construction of Railways to open up the hinterlands to agriculture and commerce. It has been a very difficult task, for foreign capitalists seemed at first chary of venturing upon the experiment of railway building in Turkey, in the fear that their capital might be sunk for a long period without hope of profitable results. Hence, in most cases, they have insisted upon the Turkish Government guaranteeing a certain amount of subsidy for each kilometre opened. This " kilometric guarantee," as it is called, has constituted a heavy charge upon the finances of the Empire, already overburdened by the interest payable upon the General Debt and the indemnity to Russia for the last war. Nevertheless, many lines of railway have been built and opene'd as I will show, and a glance at the map will prove the great advantage they have been in opening up the country. It must be borne in mind that the Sultan, in granting concessions for railways, naturally looks first to the strategic value to himself of the lines proposed, and after that to the convenience of foreign commerce. SMYRNA TO AID IN. On the 23rd of September, 1856, the Turkish Government granted a concession to an English syndicate for the construction and working of a line from Smyrna to Aidin, traversing a rich and well-peopled district. The duration of the concession was for fifty years with a guaranteed interest of 6 per cent, per annum, up to a maximum total of T72,000. At the end of eleven years, in 1867, the company finally completed this short line of 130 kilometres. Then differences arose with the (24 ) Government concerning the amount of capital on which interest was to be paid, and which was claimed to amount to T100,000 per annum. The working expenses of the line were 71 per cent. In 1896, Major Low, who reported on the line, said : "It is the only railway in Asiatic Turkey which, on its own merits, has proved a profitable concern, whilst Government revenue and the prosperity of the population have been greatly increased by the remarkable development of the fertile districts opened up. The mileage has gradually been extended eastward to Dinez and Chivril, tapping further rich districts. The latest reports are extremely satisfactory, and within its present restricted area it continues to prosper; but the dream of the promoters of a future extension to the Euphrates Valley has definitely vanished, owing to the advance of the Anatolian Railway to Konia." Mr. Whigham says that this line " has turned the famous valley of the Meander into a smiling garden." (Persian Gulf.) SMYKNA TO CASSABA. In 1863 a concession was granted to an English syndicate for a line from Smyrna to Cassaba, 93 kilometres in length, and a branch from Smyrna to Bournabet, with a guarantee of five per cent, on a capital of T800,000. The results of this concession were very unsatisfactory to the Government. In 1893, 105 miles in all had been constructed, but financial difficulties occurred, and in 1894 the line was sold to a French syndicate, who now work it under a Government guarantee. Owing to engineering difficulties the cost of construction has been much greater than was anticipated. It will probably be absorbed later on by the Anatolian Railway. CASSABA TO ALACHEIB. In 1871 the Ottoman Government formed a plan for an extensive network of railways to be constructed in Asia Minor. After careful studies made by Mr. Pressel, a German engineer, detailed plans were drawn up, and an Imperial Irade was issued on the 4th October, 1871, ordering the construction of certain of the projected lines. A commencement was made by prolonging the line from Cassaba to Alacheir or Philadelphia, the principal depot for the carpet industry. It was completed in 1875, and its working was entrusted to the Smyraa-Cassabe Railway Company. The concession was granted for sixteen years without any payments to the Government, but the latter ( 25 ) was to become, at the expiration, proprietor of the Smyrna to Cassaba Railway. MAGNESIA TO SOMA. The Smyrna to Cassaba Railway Company was authorised in 1888 to construct and work without guarantee a branch line, 92 kilometres in length, from Magnesia to Soma, which was opened in 1890. But the concessions for the former lines were to end in 1891, on condition that the State settled its accounts with the Company. The debt amounted in 1890 to 30,000,000 francs; and this fact formed the basis of the negotiations opened with Monsieur Nagelmakers later on. It is stated that a concession is to be granted for the construction of a short line from Soma to Panderma, and for tramway lines from Soma to Ayvali, and from Manemen to Pargaina, with the object of increasing the traffic from surrounding districts to the railway. MOUDANIA TO BROUSSA. The Irade of 4th August, 1871, stipulated also for the construc- tion of two lines, one from Moudania, a small port on the Sea of Marmora, to the town of Broussa, 45 kilometres in length, and the other from Haidar-Pacha on the Bosphorus, opposite Constantinople, towards Baghdad. The earthworks for the first-named of these lines were completed as far as Broussa in 1874; the rails were laid for some distance at a gauge of 1 metre 10 c. only, when, after having expended T 185, 000, the works were suddenly suspended through lack of money, and the line was abandoned by the Government. Seventeen years later, in 1891, M. Nagelmakers took up a concession for the completion of the railway, without Government guarantee, with the right to extend it to Tchitli, he paying the Government for the line and what was left of the material 500,000 francs. He formed a company called " Societe Ottomane du Chemin de Fer Moudania-Broussa," which opened the line to traffic in 1892. The receipts amounted in 1890 to 6,156 francs per kilometre. In the report of the Council of Administration of the Ottoman Public Debt, the following statements were made respecting the results of the working of the Turkish railways : " The marked improvements in the results attained by the Anatolian Railway still continues. The receipts of the Haidar-Pacha Angora line have almost reached the sum necessary for meeting the 5 ( 26 ) kilometric guarantee of 10,300 francs for the section of the Haidar- Pacha-Ismidt, and 15,000 francs for the section Ismidt-Angora, which are together equal to a kilometric guarantee of 14,252 francs for the whole line from Haidar-Pacha to Angora. This section should, therefore, next year be entirely independent of its guarantee, an event unprecedented in the history of guaranteed railways in Turkey, and of favourable augury for the future. "As regards the Eski-Shehr-Konia section, there is no reduction in the guarantee payable until the receipts exceed the sum of 6,750 francs per kilometre. The increase of traffic is more rapid than I expected; but the kilometric receipts for 1902 have not quite reached 6,750 francs, and there will, therefore, be no diminution in the sum of T131,744, the amount payable so long as the receipts remain inferior to the above-mentioned sum. The saving to the Government on the guarantee of the Anatolian system is therefore ;T27,509 as compared with the previous year. "The two railways, whose terminus is at Salonica namely, the Salonica-Monastir and Salonica-Constantinople Junction do not show any great variation on the r.esults of last year. The receipts of both show a slight improvement, but the amount payable in respect of the two railways is only reduced by T3,850. " The Smyrna-Cassaba Eailway also has a slight improvement to report, and there is a reduction in the amount payable, both for the old line and the extension, amounting to T2,674. " During the current year the Rayak-Hama Railway has been opened to traffic, the total length being 188 kilometres. It has a kilometric guarantee of 15,000 francs. The sum payable in respect of the current year is T44,992, and this is amply provided for by the tithes of the Sanjaks of Damascus and St. Jean d'Acre, which have been handed over to the Administration of the Debt for collection. " It will be seen that the total amount payable in respect of all these guarantees is less by T5,531 than the sum paid last year, in spite of the new charge undertaken for the guarantee of the Rayak- Hama line. " It has been frequently stated that the burden laid upon Ottoman finances by the kilometric guarantees is largely or entirely compensated by the increased yield of the taxes in the districts traversed by the ( 27 ) railways, owing to the agricultural and industrial development which / the railways inevitably produce. " It is interesting to examine, with the aid of such figures as are available for the purpose, to what extent this theory is borne out by facts. The taxes which are most effected by such development are the Customs duties and the tithes. As regards the Customs, increased agricultural production does not produce any important direct effect, since the state of the duties on export and internal transit from port to port is low compared with the rate of the import duties. But the indirect effect, in increasing the purchasing power of the population, and therefore the imports which they consume is undoubtedly con- siderable. It is not, however, easy to trace statistically, since in the first place there is a complete absence of trustworthy statistics, and in the second place, even if accurate figures were available, it would be difficult to separate the effects produced by the development of which we are speaking from the effects produced by other causes of a general or special nature, such as the variation of the seasons, or political events." Mr. Whigham writes in his interesting work, " The Persian Gulf:"- " The material change which has come over Asia Minor since railways were introduced into the coast fringe is indisputable. The British Railway, called the Smyrna-Aidin line, turned the famous valley of the Meander into a smiling garden, and the Kassaba line, originally British also, but now a French concern, has developed similar agricultural riches a little to the north The line from Haida Pacha to Angora earns a handsome profit, and is no longer a burden on the Sultan's exchequer, while the later extension from Eski Shehr to Konia, though still dependent on the Government guarantee for payment of interest on capital outlay, is fast emanci- pating itself, so that in a few years it will be entirely self-supporting. Thanks to the Anatolian Railway system, the Anatolian plateau is becoming the great granary which it ought always to have been. Every year fresh land is brought under cultivation, and between Eregli and Konia I passed through miles of standing wheat in a district which a year or two ago was as innocent of the plough as Sahara. . . . The extension of railways will double the trade of / Asia Minor within ten or fifteen years." *a^*^ t * 5A ( 28 ) SYRIA OTTOMAN RAILWAY. AKKA TO DAMASCUS. In 1891 a concession was granted to Mr. Pilling for the con- struction of a line from Akka (St. Jean d'Acre) on the Mediterranean to Damascus, 253 kilometres in length. A company was formed in London for the purpose ; it was called the " Syria Ottoman Railway Company Limited." It was unsuccessful, from causes unnecessary to enter into, and went into liquidation. During the twelve years of its existence it had only built about 12 kilometres of line, from Akka to Haifa, and embanked several further kilometres. In December, 1902, the Sultan purchased the concession, works, &c., from the liquidators of the company, and under the direction of a German engineer, completed the line as far as Beisan, near to which a large steel railway bridge has been thrown across the Jordan at Jizr-el- Majamieh. The works are now being rapidly pushed on, and it is expected that the railway will be publicly opened to traffic before Christmas. It was at first proposed that it should terminate at Damascus, but the course has since been altered on account of engineering difficulties, and it will now join the Hedjaz Railway at another point. A glance at the map will show the great importance and interest attaching to this line. Starting from the historic port of Acre or Akka the Accho of the Bible the fortifications of which have been taken, re- taken, destroyed, and re-built during successive ages, until their final destruction by our own countrymen, the line proceeds through the valley of Esdraelon, until it reaches the point at which the Jordan flows into the Sea of Galilee. The port of Akka is about to be re-constructed, its harbour enlarged and deepened to admit the entrance of ocean going steamers, and its wharves fitted with up-to-date appliances for the handling of freight, &c. When these improvements have been effected the former importance of the port and town will be revived, as it will be the terminus of a branch of the Hedjaz Railway, by which access will be provided to the interior for goods and passengers to the Holy Places. Mr. Consul Devey, in his last report to the Foreign Office, 1905, says : " The Damascus-Mecca Railway was finished as far as Maan in September last, and has been pushed forward since into the Hejarz to ( 29 ) the distance of 100 kiloms., with another 100 kiloms. ready to receive metal. The telegraph now unites Maan with Acaba. " There are also rumours that a railway will before very long be built from Jeddah to Mecca, the distance being about forty-five miles, and a maximum height of 1,970 feet, although native reports go to show that the height need only be about 700 feet. " As the Suakim-Berber line will be completed by the end of the current year, those who have been employed upon its construction might, one would anticipate, have an opportunity of further work on this side of the Bed Sea, the climate and conditions not being dissimilar." A recent correspondent in The Times wrote : "Early in October the Deraa-Haifa branch of the line, the only section which is likely to be of much economic importance, will be completed, and the Turkish military authorities and Herr Meissner, the able German engineer who is responsible for the construction of the line, will be able to look with satisfaction on a successful year's work. South of Maan the engineering difficulties are not great. There is nothing to match the series of steep gradients which the railway climbs above 'Amman, or the ravines crossed by a huge viaduct on the east bank of the Jordan, and all railway material required for the south extension of the Hamidieh-Hedjaz Railway will be sent up to railhead far more cheaply and rapidly than in the past, when every sleeper came up from Beirut by the French com- pany's Lebanon railway to Damascus, and paid a rather heavy freight charge into the bargain. " The railway will reach the Hedjaz in another three years, unless the prophecies of an Arab upheaval are fulfilled, and though, taken as a whole, it will never pay, its military importance, more especially when it is linked with the Anatolian and Baghdad systems, must be obvious to any student of Eastern politics. Its defensive value in the case of an outbreak in the Hedjaz, will be immense; it may perhaps .be used for offensive purposes, and even to-day, after making every deduction for bad management on the part of ignorant or venal subordinates, it can transport a fully equipped division to railhead in less than a month. About 20,000 Syrian Redifs (reserve) and Nizam (regulars) were entrained at Damascus or 'Amman, con- centrated at Maan, and marched to Akaba in little over a month this ( 30 ) spring. The French company's Damascus-Mezerib line supplied any deficiencies in rolling stock, the German railway officials successfully averted collisions, and though the Eedifs lacked equipment and suffered, as Turkish reservists alone can suffer, the line was shown to be a valuable military asset." THE HEDJAZ RAILWAY. Comparatively little attention has been given in this country to the very remarkable line of railway which the Sultan is build- ing at the present time, and which illustrates what I have said as to the inducements which move him to railway con- struction. This line, commonly known as the Hedjaz Railway, will, when completed, be called the Hamidiyeh Railway in honour of the Sultan himself, whose favourite project it has always been. As the chief Ruler of the Moslem world, he has always been desirous of facilitating and encouraging the visits of the faithful to the sacred cities of Mecca and Medina, and thus handing down his name to posterity as one of the greatest bene- factors to Islam. The Pilgrimage to Mecca is one of the sacred institutions ordained by Mahomet, and its departure from Constantinople is annually witnessed by the entire Mussulman population. It takes place on the 15th of Chaban, the ninth lunar month of the Mahometan year. It is carried out with great pomp in the presence of the Sultan, and is one of the principal fetes of the city. The whole of the clergy, bearing the costly presents of the Sultan, sur- round the Sacred Camel, which carries the traditional presents ; the Carpet for prayer ; the Kesna, the black veil which is to cover the Kadba during the coming year, with the exception of the fortnight during which the Pilgrims remain at Mecca ; and the Sacred Banner, which represents the glorious Standard of the Prophet. The money expended annually by the Pilgrims to the Holy Cities is said to amount to over 50,000,000 francs. Only silver money is current in the Hedjaz, so that all gold must be changed beforehand into either Austrian or Spanish dollars, the only recognised coinage at Mecca. The number of Pilgrims varies annually. In 1901 they were ( 31 ) said to amount to 100,000; but no reliance can be placed upon Turkish statistics. In 1897 there were about 70,000, according to a reliable estimate, divided as follows : From the Indies 18,024 From the Persian Gulf 3,566 From the Red Sea 3,307 From Turkey by the Suez Canal 3.271 From Egypt 7,599 From other countries 8,951 By land about 25,000 The British Consular Report for 1901 states that in 1900 the number of Pilgrims landed at Jeddah was 49,000. Assuming, however, the figures supplied by the Turkish authorities to be correct, it must be admitted that they fall far short of the numbers which might have been anticipated from the well- known religious zeal of the Moslems. For in India alone they are estimated at sixty millions ; in Egypt at twelve millions ; in the States bordering upon the Mediterranean, fifteen millions ; in Persia about nine millions ; and, finally, in the Ottoman Empire about twenty millions. There is little doubt that the comparative paucity of Pilgrims is chiefly owing to the great expense, fatigue, and danger attending so grave an undertaking as a Pilgrimage to the Shrine of the Prophet. There can be no doubt whatever that as soon as railway facilities have been provided for the journey to Mecca, the number of Pilgrims will be greatly increased and the revenue of the Hedjaz Railway benefited in a corresponding degree. The strategical and commercial advantages provided by the Hedjaz Railway are no less important and obvious. The recent rebellion in the Yemen, suppressed with so much difficulty, proves the necessity for the speedy transmission of troops, arms, and ammunition to the distant provinces when required. However great the fanaticism of the rebel tribes, it was clear from the first that they were doomed to destruction as soon as the Sultan's troops had succeeded in reaching the scene with their modern arms and artillery. That portion of the Hedjaz Railway already opened as far as Maan rendered conspicuous service by conveying the troops and armaments through the very difficult and mountainous country between Damascus and Maan, for it saved many weeks of delay at a time when every day counted, ( 32 ) Great anxiety is now expressed for the speedy completion of the railway. Pending this, however, the Sultan has invited tenders for the construction of a short line of about 50 miles, from Maan to Akabah, situated at the head of the gulf of that name, which washes the shore of the Sinai Peninsula and communicates with the Red Sea. By this- means the tedious and expensive journey through the Suez Canal will be avoided and troops landed many days earlier than before. He has also ordered surveys to be made for a line from Jeddah across the mountains to Mecca. This will be a great boon to the Indian Pilgrims who arrive at Jeddah every year in such large numbers en route for the Holy Places. My reason for dwelling at so much length upon this railway and its branches is that it seems to me to be a matter of very high importance to British interests. A very large trade is now being carried on between India and Syria, as is shown by our Consular Reports. It is reasonable to suppose that this will be considerably increased when the great cost of freight carried through the Suez Canal is lessened. The completion of the Egyptian Railway system with Berber will also no doubt provide a large amount of traffic to the Hedjaz Railway, as affording the shortest and cheapest route to the Mediterranean through its branch to Akka (St. Jean d'Acre). It is possible also that the branch referred to will be con- siderably used by passengers and Pilgrims from European and Indian ports to the Holy Places of both Christians and Moslems. ( 33 ) CHAPTER V. RESOURCES. IT seems to me that the remedy for Turkey's impecuniosity lies in the development of the natural resources of the country. These are enormous, as all history has shown and travellers have testified. Why, then, are they not turned to account when an increase in the wealth of the nation is of such vital importance at the present time ? A recent writer has stated that within five years 240,000 Syrians have emigrated, chiefly to the United States and the South American Republics. What are the causes of this ? No richer land on the earth's surface can be found than that of Syria. Dr. Paul Rohrbach, quoting many ancient authorities, states that Babylonia in the sixth century produced annually ten million tons of wheat. Also that in the eighth century Babylonia, Assyria, Northern Mesopotamia, and the Valley of the Euphrates had a popu- lation of six millions ; they number now a million and a half. These lands would resume their former fertility if cultivated and protected from the attacks of the Bedouin. Foreign capital alone is wanted to develop them. The ancient canals should be cleared ; the Tigris rendered navigable up to Mosoul and the Euphrates up to Biredjik. The* country would then resume its former prosperity, for there would be cheap freights for all produce from Baghdad to the Persian Gulf. Syria was once the granary of Europe ; her silks, wines, fruits, and manufactures were in the Middle Ages renowned throughout the known world. Even now she exports coffee, dates, wheat, cotton, barley, tobacco, indigo, sugar, fruits of many kinds, gums, spices, sheep, horses, camels, &c. ; also manufactures of wool, leather, perfumes, &c. She imports corn, rice, butter, &c., from Egypt, Abyssinia, India, and the Malay States, There are annual fleets from Bombay, Calcutta, 6 ( 34 ) Surat, &c., bringing piece goods, Cashmere shawls, drugs, hardware, cutlery, pipes, beads, &c., &c. From European States, chiefly England and Germany, she imports large quantities of manufactures of all kinds. If agriculture were to be encouraged by the Sultan in co-opera- tion with colonies financed by a banking syndicate, the profits of which were shared with the Ottoman Government, the port of Akka improved, and the railway from thence to the Hedjaz Eailway com- pleted and opened, the rich plains and valleys of Syria alone would in a few years yield a revenue to the State which would enable it to free the country from the claims of Russia and Germany. After that the necessary railways and public ' works could be constructed in the manner most suited to Turkey's own requirements and under her own control. One of the most important and valuable cultivations which could be introduced into the Ottoman Empire is the growth of fibrous plants. There are large districts of land in Arabia which are sterile and waterless. Although absolutely valueless at the present time, because unproductive, they could be cultivated to great advan- tage by the planting of sisal hemp (Agave SisalanaJ, which is so extensively grown in Yucatan, or the Agave Ixtle, which flourishes so well on the sterile and dry lands of San Luis Potosi. These are now two of the most flourishing states in Mexico. There is a practi- cally unlimited market for these and other species of fibres at high prices. As they require no water and but little care, their introduction would be of great value to Turkey. Rhea or Ramie, commonly known as China grass, could also be grown to great advantage and profit in all the provinces of the Empire. The extensive lands on either bank of the great rivers could easily be restored to cultivation at very little cost, as has been the case in India and in Egypt. There is no reason why Turkey should not rival either of those countries in the cultivation of cotton, if the State would only encourage and protect the industry. What has been done in India and in Egypt could also be done in Turkey, if the Government would consent to allow Englishmen to devote their energy and their money to the work. And if His Imperial Majesty the Sultan would grant the necessary protection to life and property, there is plenty of capital lying idle in Great ( 35 ) Britain which bankers would gladly invest in reproductive works, such as railways, harbours, irrigation works, the clearing out of old canals, the deepening of rivers, the plantation of olives, vines, orange and lemon trees, &c., &c. The principal difficulty, of . course, would be the supply of labour ; but this is more imaginary than real. It is true that the working of the military law, which makes every male Moslem liable to serve in the army, active or reserve, for twenty years, withdraws a large part of the population from agriculture ; but this does not apply to the Christian inhabitants, who are not called to military service, and they form the bulk of the agriculturists of the Empire. Again, it is certain that any quantity of unskilled labour could be attracted from Egypt, Italy, Abyssinia, or India, if remunerative work were offered. It is wonderful that these great potentialities of wealth should be so much neglected when the financial position of the Empire is con- sidered. But it is not more strange than the fact that so many millions of acres of good land in Great Britain should remain un- cultivated, when we import so many millions sterling worth of food from foreign countries, while having vast numbers of unemployed and almost starving workpeople on our hands. In the case of Turkey, however, there are many causes which contribute to this backward- ness, in addition to the want of enterprise. The first -of these is the deficiency of means of transport. The making of public roads has been neglected for many centuries, and the only means of communication has been by caravans of camels and mules. Most of the rivers and canals are too shallow for navigation ; even the once magnificent rivers Tigris and Euphrates have become of little use for transport. The once flourishing ports on the coasts of Syria and the Red Sea have become silted up and almost closed to commerce. Now all of these deficiencies are easily reparable, and of this fact the present Sultan and his Ministers are fully cognisant, and he has granted many concessions to carry out the necessary works. Sir William Willcocks has recently applied for an Irade for restoring the canals and irrigation works for which Babylonia was once celebrated. The very report that he had made such an applica- tion has aroused a storm of indignant protest in the German Press, who evidently regard the fertile valleys of Mesopotamia as being already within the borders of exclusively German influence. It is ( 36 ) to be hoped, however, that the Sultan will give due weight to the immense services which Sir William Willcocks has rendered to India and to Egypt by the great irrigation works which he has already established in those countries, and which will make his name illustrious in history. Such works as he now proposes, if carried out in Mesopotamia, would before long restore it to the eminent renown which it enjoyed in the ancient world. If the Sultan would also grant to English capitalists a concession for the development and exploitation of the valuable petroleum wells at Mosoul, Kerkuk, &c., on the Tigris, the revenue which he would derive from this source alone would go far to make him independent of foreign financial help. There are many other valuable deposits of mineral oil, bitumen, &c., in other provinces, notably at Alexandretta, but none are so important or so interesting to us as those on the Tigris, in conse- quence of their connection by the river with the Persian Gulf. The mineral deposits of Syria have been renowned in all ages for their riches. In all parts there are found the ruins of old workings, showing the importance attached to the mining wealth of Asia Minor. In the Smyrna district alone, we are told by our Consul's Report, there are 53 mines worked under firmans and 72 under licences. The coalfields of Heraclea, on the Black Sea, are very extensive and valuable on account of their position. We learn from Consular Reports that they export at present over half-a-million tons a year. Bat their product could be increased tenfold if properly developed upon a modern system and by scientific methods, for they are of vast extent. Here is another potential source of great wealth, for they belong to the State. Among the natural riches with which the Ottoman Empire is endowed are the forests, which are of very great extent in all the provinces. They abound in timber of the most valuable kinds cedar, cypress, boxwood, the " Aleppo pine," oak, larch, &c. In the Vilayet of Aidin (Smyrna), for instance, the forests and woodlands cover 1,600,000 acres, or nearly one-eighth of its whole area. The forests in the Vilayet of Adana cover 1,213,000 acres. " The fir and pine forests of Aleppo," says Mr. Consul Barnham, " have been the most famous in the world, and still produce mag- nificent timber, The cedars of the Cilician Taurus to the north of ( 8? ) Adana supplied the markets of Home in the days of Cleopatra, and up to recent times a remnant of their former splendour existed, but, as everywhere else, they are fast being exterminated. . . ." " Lieut. -Col. Massy gives the average annual value of timber exported from the Adana district at 20,000; while about 6,000 worth of tar and resin is shipped from Mersina, but there is no export at all from the Vilayet of Aleppo, the distance to Alexandretta from the forests being too far, and the means of transport too difficult and expensive to make it pay. . . . Immense quantities of good wood are consumed in the manufacture of charcoal. . . ." In the Vilayet of Trebizond, the Consul reports that there are 1,434,300 acres of forest lands, totally neglected save by the charcoal burners, who recklessly destroy the most valuable timber in their work. As the forests are principally situated upon Crown lands, it will be seen how valuable an asset of national wealth they constitute. There are also a large number of forests or groves containing millions of old olive trees, which have been suffered to go out of cultivation. This has been owing in great part to the rapacity of former Governors of the provinces, who, having purchased their appointments at high prices from the Palace, were compelled to impose excessive taxation on their subjects in order to recoup their outlay. In one vilayet the Governor imposed an annual tax of 25 francs upon each olive tree. The consequence was that the peasants either cut down their trees, or allowed the olive groves to go out of cultivation altogether. ( 38 ) CHAPTER VI. RELIGIOUS TOLERATION. So much has been said of late in the Press, in pulpits, and on public platforms respecting the oppression of Christians in the Ottoman Empire, that it has become almost an article of political faith to believe that the Sultan is an inhuman monster, whose chief pleasure is to torture and persecute the Christians under his sway. No cruelty is too horrible, no accusation too wild to be believed against the "Unspeakable Turk," the "Man of Sin," &c. The Sultan has been treated as an outlaw, and his Empire as an anachronism to be swept out of existence as soon as possible. Although it seems almost heresy to doubt the truth of the accusations so glibly made, or to plead extenuating circumstances for the existing conditions of Christians in Turkey, I submit that it is only fair that we should examine the foundation upon which they rest. This is the more necessary as there are a considerable number of English and American missionaries working in Turkey, who seem to have little or no complaints to make as to their treat- ment by the authorities there. There are Christian schools, colleges, and churches supported by our great missionary societies, and served by English and American clergy, whose sole complaint seems to be the paucity of converts. They make none against the Government, although they preach zealously against the teachings of Islam, the established religion of the country. In Constantinople itself there are no less than one hundred Christian churches, of which sixty are Greek and forty Armenian, served by their respective clergy of the various rites. This does not look like intolerance on the part of the Government, prima facie. Later on I will show how carefully the rights and privileges of the various communities are protected by the Turkish law. But first of all I should like to say something regarding the present Sultan. ( 39 ) In all justice it must be acknowledged that Abdul Hamid II., on coming to the throne, inherited a most difficult and unenviable position. The Ottoman Empire was practically bankrupt ; the reckless extravagance of his predecessor, Sultan Abdul Aziz, and his Court had left the finances of the Empire in hopeless embarrassment. Corruption reigned supreme in every department of the State. The Governorships of the provinces had frequently been sold at enormous prices to men who were utterly corrupt and unfitted for their positions, who oppressed the unfortunate populations under their charge, extorting from them, often by torture, the profits of their industry. Justice was shamelessly bought and sold in every tribunal. There was no uniform system of taxation ; every governor fixed his own tariff and enforced its collection, however unjust and oppressive it might be. It was a terrible responsibility imposed upon a young and inexperienced Prince, for Abdul Hamid was only thirty-two years of age when he succeeded to the throne, which was still reeking with the blood of Abdul Aziz. Disorder reigned in all the provinces. Bosnia, Hertzegovina, Servia, Bulgaria, and Montenegro were all in open rebellion, and, incited by Eussia, declared war against their Suzerain. The demands of the States practically amounted to independence and autonomy. Eussia backed up their demands by moving six Corps d'Armee to the banks of the Pruth and declared war. In January, 1878, Turkey submitted, and peace was signed. Constitutional governments were granted to the several States, subject to the payment of heavy annual tributes to the Sultan; while, on the other hand, Turkey was compelled to pay to Eussia all the costs of the war. The Christians in the Balkan States are in a worse position now than they were while under Turkish rule, for the Eussian Greek Church is paramount and there is little tolerance for other creeds. In fact, the States are practically provinces of Eussia. All religions are tolerated by the law of Turkey, and those who profess them are granted the fullest liberty to practise them. The only condition exacted by the State is that each religious body must be duly authorised, and that a responsible chief be appointed, with whom the Government can treat in case of need. These spiritual heads enjoy several very remarkable privileges. They are ex officio members of the Councils of the Provinces and ( 46 ) Communes in which they live, and are thus enabled to protect the interests and rights, spiritual and temporal, of the members of their communion. The internal administration of all matters spiritual and temporal connected with their respective communities are entrusted by the Turkish law to the jurisdiction of the Patriarch, Grand Kabbi, Vekel, or Sheikh, as the case may be. They also are members of the Grand Council of the nation sitting at Constantinople, which regulates and prescribes the rights of the various religious communities. The communities recognised by the State, and who enjoy the privileges I have named, as well as perfect liberty, are the following : (1) Orthodox Turks, Orthodox Bulgarians, Armenians, Syrians, Jacobites, Copts, and Chaldean Nestorians. (2) Bites in communion with Home, viz. : Latin Catholics, Uniate Armenians, Uniate or Melchite Greeks, Uniate Chaldeans, Uniate Syrians, Uniate Copts, Uniate Bul- garians, and Maronites. (3) Protestants of every description Anglicans, Presbyterians, English and American Methodists, Baptists, &c. (4) Four different types of Jews, five of Metoualis, and six of Druses. The Moslem finds it most difficult to understand and distinguish the difference between the, to him, amazing variety of sects, all professing the Christian faith; this is one of the causes of the sterility of Christian missions in the East. The Turk lumps them all together as Giaours, and regards them all with the same contemptuous indifference, wondering, indeed, why they did not remain in their own countries to convert each other, or at least to arrive at a common agreement as to what is the Christian faith, before thrusting their antagonistic creeds upon the contented Moslem. Nevertheless, he is very tolerant of what he considers their eccen- tricities, and provides a guard at the Holy Sepulchre at Eastertide, to prevent the Greek and Latin Christians from massacring one another for the love of God. In travelling through Palestine there are everywhere to be seen the evidences of religious liberty. Christian churches, monasteries, and convents, which have existed for a thousand years unmolested, crown every hill, surrounded with the peaceful Christian populations whose fathers have worshipped there without interference for ages. ( 41 ) It is the same in every Vilayet in Asia Minor ; the Christians are as free as they are in any of our Indian provinces. The laws may not be perfect very few are, but they are found adequate in most cases to protect life and property. It is true that they were not always so. About a hundred years ago, and, indeed, until the middle of the nine- teenth century, there was as little liberty in Turkey for the Christians as there is at the present day in Russia, except for the Greeks. But all that system has long been changed in the Ottoman Empire. Seventy years ago the Sultan Mahmoud thus publicly expressed himself : " I desire that in future a Moslem shall only be distinguished as such at his mosque, the Christian at his church, and the Jew at his synagogue." In these words he manifested his intention to regenerate the Empire by the complete emancipation and assimilation of the races under his rule; he announced the inauguration of the new era of reform. But it was his son and successor, Abdul Medjid, who actually introduced the new system, the " Tanzimat," by the pro- clamation of the " Hatti-Sherif of Gulhane " on the 9th of November, 1839. This was followed by the establishment of the Criminal Code in 1840, and the Commercial Code of 4850. Both of these were chiefly based upon the Code Napoleon, and have worked well. But the most important enactment of all was the publication of the Firman of 1854, which established the perfect equality of Christians and Moslems before the law. These were the first fruits of the Sultan's efforts to carry into effect the reforms promised by the Hatti- Sherif of Gulhane. The next stage of the Tanzimat was reached after the Crimean war by the Hatti-Humayoun of 1856, which extended the reforms to the civil and military administration, &c. When we consider the conservative ideas of Orientals generally and their hatred of any innovations upon their national practices and traditions, it is truly wonderful that the changes brought about in the internal politics of the Empire by these decrees have not resulted in a revolution and a general massacre of the unarmed Christians by the Moslem population. It is a remarkable proof of the respect and veneration in which the Sultan is held by his subjects, that they should have submitted so peacefully to so startling an alteration in the national life. 7 y ( 42 ) It must be remembered that the Theocratic Moslem law called the Cheri is based upon the Koran, and the Sunni, or tradition, which relates the deeds and sayings of Mahomet. In addition to these there is the Idjma-i- Ummet, the decisions of the companions and disciples of the Prophet. This fact has made the application of many of the well-meaning reforms recommended by the Powers exceedingly difficult, as some of them appear to be opposed to the prescriptions of the Koran. For example, the Koran prohibits the insertion in contracts of stipulations for the payment of interest on money. Another is that an insolvent debtor must not be prosecuted by law, but pardoned by his creditor. This difficulty is partly surmounted by the regulation that civil cases between Christians are pleaded before a jury of their