'Memorandum respecting the Bagdad Railway' [‎152r] (21/52)

Government, represent another 270,000/., and
this sum is considered likely to . increase.
111,475/. of the last-named amount is, however,
already assigned to the Ottoman Bank Loan of
2,500,000/. (not yet issued).
It would seem that from these sources sufficient
money can be found for raising the construction
capital.
If the Germans do not obtain, as they desire,
the assignment of the surplus revenues of
the Debt, the Government will probably be
called upon, particularly if the imposition of
the 3 per cent. Customs surtax is arranged, to
assign fresh tithes. It should be borne in mind,
however, that as soon as the Konia-Eregli section
is linked to the Mediterranean seaboard the profits
of the line will increase, and the working guarantee
for that section will diminish in proportion, and
may be utilized towards guaranteeing the con
struction annuity for the further sections.
Nevertheless, if new tithes are required, it is
stated that the Government have them at their
disposal.
The tithes of the Empire give 4,320,000/. in
round figures per annum. The amount assigned
already for kilometric guarantees is 1,530,000/.,
leaving a balance of 2,790,000/. If they are
placed in the hands of the Debt administration,
it is calculated that by a better system of
collection they would yield 20 per cent. more.
The Government could also still further pledge
the Aghnam or sheep tax. It produces 1,778,400/.,
of which 146,430/. is already pledged, leaving a
balance of 1,631,970/. The system of collection
is in course of improvement.
It is, indeed, evident that the Ottoman Govern
ment cannot indefinitely continue on this course
of pledging the best revenues of the country, and
that a deficit in the National Exchequer will
necessarily result. At the present time there
would appear to be insufficient revenue to meet
current expenditure, the internal finances are in
great disorder, and daily expenses are increasing
by leaps and bounds owing to the general ex
travagance of Ottoman administration.
The creation of fresh debt, and the assignment
of fresh revenues for the service of new loans—
the policy of the Erench Syndicates—and the
appropriation of fresh revenues for the construc
tion of railways — the policy of the German
Syndicates—must eventually lead to disaster, and
[581] G