Mr. Morris to Mr. Seward.

No. 162.]

Sir: The Turkish government having failed to make provision for the payment of the semi-annual interest on the general debt falling due on this day, has issued the following notice to the public. The imperial finances are in great disorder, and unless prospects of general peace shall permit large-reductions in military and naval expenditure, I fear that the promise made for October will not be redeemed. This failure to sustain its credit in time of peace must have a disastrous effect on the credit of the government, and will render it impossible to negotiate foreign loans in case of war. A resort to paper money seems to be the last expedient; the current resources are not sufficient to pay the navy and army and civil employés, and meet obligations to foreign creditors. Should the empire be plunged in war by outside complications and influences, its power of self-defence will be seriously crippled through the want of monetary resources.

To avoid further trouble and expense, the Porte has consented to recognize Prince Hohenzollern as hospodar of Moldavia and Wallachia. He will soon repair to Constantinople to do homage to his suzerain, the Sultan.

I am, sir, very respectfully, your obedient servant,

E. JOY MORRIS.

Hon. William H. Seward, Secretary of State, Washington, D. C.