Turkish population. In all the walks of life the Turk as a rule is honest. He seldom fails in business, although not expert in commercial transactions. He considers the payment of his debts a sacred duty. The criminal classes are largely recruited from the rajah population, and so also are the men who practice dishonest methods in business. They are usually of Greek, Armenian, or European extraction. But it should not be understood that there are no honest men other than Turks engaged in mercantile and commercial pursuits in Smyrna and vicinity. There are many such who in ability and fairness are the peers of the most reputable of their class elsewhere. Several of them, I am proud to say, are American citizens. They are obliged to conform to the credit system, but do a safe and honest business under it. It may not be pertinent to the topic under discussion, but I cannot conclude this report without urging upon American manufacturers, bankers, and merchants the desirability of establishing in Smyrna an agency for the exhibition and sale of American goods and notions of all kinds. With the right man to manage it, much might be done to extend American trade and American credit. Next to the establishment of a line of American steamers, plying direct between New York and the ports of the Levant, nothing would do more to revive the prestige of the American name in this emporium of the East. W. E. STEVENS, UNITED STATES CONSULATE, Consul. Smyrna, August 16, 1883. SYRIA. REPORT BY CONSUL ROBESON, OF BEIRUT. Referring to circular-letter dated May 15, transmitting certain number of interrogatories represented to the Department of State by the Board of Trade of Scranton, Pa., relative to credits and their effect on the general prosperity of the several countries, I have the honor to transmit you herewith my answers to the different questions contained in said interrogatories. 1. Does credit stimulate trade? Credit does stimulate trade to a great extent. It is worth while, however, to remember that Syria is different in many respects from European countries. The credit given in view of stimulating trade is that extended by European manufacturers and merchants to merchants in Syria, who in turn grant credit to the people in the country. The merchants of Beirut give credit to the people of the Lebanon district to a very considerable extent. The country of the Lebanon being under different administration from that of the rest of Syria, credit, for several 1 as ons, is considered safer there. The banks at Beirut grant credit to mport and export merchants of good standing at the rate of from 8 to 10 per cent. per annum. 2. Are people averse to contracting debts? All persons engaged in commerce are more or less obliged to apply for credit. The people would not be averse to obtaining credit at the rate of 6 per cent. per annum, but the high rate of interest charged keeps many from contracting debts by buying goods or otherwise on trust. 3. Are there any sumptuary laws or regulations concerning credits? No law exists as to regulating credit, but there is a law in force relating to loans on interest at the rate of 12 per cent. per annum. 4. To what extent does credit prevail in proportion to the volume of business? The importance of advances when made by the European manufacturers themselves is in proportion to the credit that the buying house deserves, and credit is generally regulated at the rate of from 7 to 8 per cent. As for credits on consignment of merchandise, such as cottons, wool, nutgalls, wheat, maize, &c., these are regulated with money advanced amounting to two-thirds or three-fourths of the value of the merchandise-sometimes to four-fifths, and even to the total when the house that borrows enjoys a perfectly good reputation. 5. To what extent do losses incidental to business prevail? As there are no statistics kept in this country regarding failures, it is difficult to say to what extent losses prevail owing to failures. Failures, however, are not very frequent, owing to the patience of the creditors and the difficulty in getting judgment and forcing collection. 6. Do tradesmen extend credit to mechanics and laborers readily? Tradesmen do not extend credit to mechanics and laborers here. 7. What advantage have cash buyers? Cash buyers have generally the advantage of 1 per cent. a month. 8. Is interest demanded on time accounts? Interest is due at the maturity of the term, and is very seldom paid in advance or quarterly. 9. With what classes are the evils of credit most conspicuous? The evils of credit are most conspicuous with agriculturists and stock raisers, who in bad years become unable to pay interest on the amount borrowed, but they are seldom made bankrupts, as nothing could be gained by such a step. The rate of interest charged to farmers and stock-raisers is from 18 to 30 per cent. per annum. 10. What kind of produce or manufactured articles command cash returns? Most of the manufactured articles and agricultural produce of the country command cash returns. 11. Are credits of record (mortgages, judgments, &c.) prevalent; and, if so, among what classes? Credits on mortgage are granted on real and personal property; but this kind of business is not, however, much recommended, owing to the difficulties that are experienced in the execution of the decisions when obtained. 12. When a person in business has once failed, or has been discredited, can he resume, and what are the obstacles to such resumption? A bankrupt can only legally resume by satisfying his creditors and receiving permission from the ministry of commerce. 13. Is bankruptcy frequent? Bankruptcy is not frequent excepting in bad agricultural seasons or crises caused by political troubles or contagious plagues. 14. To what extent do relief acts in bankruptcy prevail? In case of failure, justice proceeds more or less regularly according to the prescriptions of the Ottoman code. Nevertheless, judicial action is avoided as much as possible, because by its procrastination and the want of integrity it injures the assets of the bankrupt to the detriment of the creditors. A compromise, therefore, is the surest and most advantageous way and the one usually adopted for settlement. 15. Are fortunes readily made and lost? 68 A-No. 43—21 Fortunes, as a rule, are not readily made, as speculation in the country is not carried on to any great extent. It is not uncommon, however, to see considerable money made in business transactions, and fortunes lost when a crisis takes place. 16. What are the general effects of credit? The general effects of credit are favorable to commerce and agricul ture, but are most disastrous when they prompt imports far beyond the demand, which is frequently the case, as the surplus causes depreciation in prices and usually creates a crisis in the market. Referring to bankruptcy, many bankrupts in this country do resume business without complying with the legal formalities required by the Turkish law. JOHN T. ROBESON, UNITED STATES CONSULATE, Consul. Beirut, August 31, 1883. BRITISH INDIA. CALCUTTA. REPORT BY VICE-CONSUL-GENERAL BANCROFT, OF CALCUTTA. I have the honor to acknowledge receipt of circular dated May 25. 1883, containing interrogatories prepared by the board of trade, which I have delayed replying to until I could ascertain facts relating to the fifth interrogatory. Four firms doing the largest retail business in dry goods, hardware, drugs and fancy articles have kindly gone through their sales-books for the past ten years, and all arrive at about the same result regarding losses. 1. Does credit stimulate trade? In answer to this question I have no hesitation in saying credit stim ulates trade very much. Eurasians and the better classes of natives are very averse to paying cash, and it would be almost impossible to carry on a profitable business if the cash system were adopted. Some few years since the "Trades Association" attempted to introduce cash payments, the result of which was a falling off of sales to the amount of 10 to 20 per cent., a result so unsatisfactory, that the credit system was again resumed and continues to the present time. 2. Are the people averse to contracting debts? To this I should reply, not at all. 4. To what extent does credit prevail in proportion to the volume of business? This question has been decided by the different tradespeople to be 80 per cent. 5. To what extent do losses incidental to business prevail? Several of the largest retail merchants, representing all the different branches of trade, have gone over their sales for the past ten years, and have found their losses would average 10 per cent. per annum. 6. Do tradesmen extend credit to mechanics and laborers readily? Yes, very readily. 7. What advantage have cash buyers? A discount of 10 per cent. on their purchases. 8. Is interest demanded on time accounts? Interest at the rate of 8 to 10 per cent. is demanded generally; sometimes 12 per cent. 9. With what classes are the evils of credit most conspicuous? They are most conspicuous with those belonging to the uncovenanted service. 10. What kind of produce or manufactured articles command cash returns? None. 11. Are credits of record (mortgages, judgments, &c.) prevalent; and, if so, among what classes? Credits of record, by which I understand to be meant judgments by confession as security for debts, are unknown to our present procedure, the law sanctioning them having been repealed long since. Ordi nary judgments in India afford no security over the landed property of a debtor until such landed property has been attached in execution. Mortgages are very prevalent here. Mortgages are not restricted to any particular classes of the community, but they are more commonly prevalent among tea and indigo planters. 12. When a person in business has once failed, or has been disrcedited, can he resume, and what are the obstacles to such resumption? The fact of a person having been discredited in business does not necessarily interfere with his carrying on business, provided people are willing to deal with and give credit to him, and, as a matter of fact, instances are not infrequent here where firms, or persons whose credit has been shaken have gone on doing business and getting credit as if nothing had happened. In case of failure of a trader, followed by an adjudication of insolvency, the only obstacle to the resumption of busi ness by the insolvent is, that until the date of the order for his final discharge, which cannot be made until the expiration of a year from the date of his personal discharge, all property he may acquire goes to the official assignee. 13. is bankruptcy frequent? I should say that bankruptcy, or, to speak more accurately, insolvency, is tolerably frequent in India. 14. To what extent do relief acts in bankruptcy prevail? I do not quite understand whether this question relates to the local extent of relief acts or to the number of such acts. In the Presidency towns of Calcutta, Madras, and Bombay the law of bankruptcy, or rather insolvency, is regulated by an English statute (11 and 12 Victoria, chapter 21), the procedure prescribed by which is very antiquated, and until comparatively recent times this was the only bankruptcy, or rather insolvency, law obtaining in British India. By the Burmali courts act of 1875 (an act of the Indian Legislature), however, the courts of the province have been vested with insolvency jurisdiction, and by the code of civil procedure (Act XIV of 1882) power is given to the local courts outside the Presidency towns to declare a judgment debtor arrested in execution of a decree an insolvent, and to vest his property in a receiver, but not to discharge him, except from arrest, until one-third of his debts are paid or until the expiration of twelve years from his being declared an insolvent. Under the insolvency laws obtaining in Presidency towns traders can be finally discharged without paying any portion of their debts, and are practically so discharged as a matter of course with very few exceptions now. Traders, however, can only obtain an order of final discharge after paying one-third of their debt. 15. Are fortunes readily made and lost? I cannot say that fortunes are readily made in India nowadays, but have no hesitation in saying that they are readily lost. 16. What are the general effects of credit? The effects of credit may be shortly described as being in very many cases the loss of the creditor's money. The system of credit obtain very largely in all kinds of business in Calcutta, and the system is pe culiarly mischievous in its results, owing to the impossibility of check ing the rascality of native traders, who can practically defraud their creditors with impunity. The European merchant engaged in impor business in articles dealt in by native dealers protects himself from los by engaging the services of a Banian, who, in consideration of a com mission, guarantees all sales made to natives, which, of course, reduce the merchant's profits. UNITED STATES CONSULATE GENERAL, C. C. BANCROFT, Calcutta, September 25, 1883. PALESTINE. REPORT BY CONSUL MERRILL, OF JERUSALEM. On receipt of the circular from the State Department, dated May 15 1883, I at once set about collecting facts pertaining to the money, trade and general business interests of the country; but upon compiling them and comparing them with the requirements of the interrogatories, as expressed in said circular, I find that while many of these facts are o special interest, they do not legitimately belong in an answer to the questions proposed. The business of the province of Palestine is large when compared with the unfortunate way in which it is governed and the wretched manner in which its resources are developed. In the present state of affairs the province is really poor, and Jerusalem is a city of poor people, there being among its 40,000 inhabitants at least 20,000 who are mainly sup ported by charity. Consequently the amount of business of the city and province makes but a small item in the commercial balances of the world. The first question proposed in the circular, "Does credit stimulate trade?" could be more fully and satisfactorily answered were this a sea port town, like Smyrna, for instance. Applied to Jerusalem, the answer must be that credit does not stimulate trade. As to contracting debts, the people of all classes throughout the prov ince are only too glad to do so. There are no sumptuary laws or regulations concerning credits. Importers give little or no credit, and hence losses are small. Credit is readily extended to mechanics and laborers by tradesmen; still, the advantage to cash buyers, in the smallest as well as in the largest transaction, is always very great. Interest is not demanded on time accounts, but if it is taken, it is added to the amount. The evils of credit are most conspicuous and disastrous among the farmers. Indeed, under the ruinous exactions of the Government and the terrorism exercised over them by the money-lenders, the wonder is that anything like farming in this country is possible. |