Monday, 18 November 2019

Russian-Turkish collector war 1877-1878

Andrew Stepanenko

July 09, 2019 <>

Translated by Berenkova Violetta Michailovna

The text is closely connected with the next text about wars of the past. The main objective of this text is to show a difference between a real progress of events and that version dominating in the society opinion according to the version given in high school textbooks.

In 1851 the Ottoman empire borrowed money from Palmer and Goldsmith.
In 1854 the Ottoman empire took 75 million francs from England and France.
In 1855 the Ottoman empire borrowed from the Rothschilds’.

In 1873 the world financial crisis burst out, and it is clear, it became more difficult to repay debts. In 1875, in April the Ottoman Empire intensified tax pressure in Bulgaria, and in September that act resulted in the first revolt. The same year, in the summer because of increasing of tax pressure the revolt happened in Bosnia and Herzegovina

In 1875, on October 6, the Ottoman Empire got into the partial default condition – they could not pay interests on the state debt in time any more. The same year internal taxes were cancelled in the Ottoman Empire, probably, for acceleration of money turnover.

In 1876 the Anti-Ottoman mutiny burst out in Serbia and Montenegro. The same year an exchequer appeared in Serbia issuing its own tickets. The war with the government demanded resources. Already on May 1, 1876, Russia, Austro-Hungary and Germany signed a memorandum of reforms in the Ottoman Empire. The sovereignty of the Ottomans was ignored as already nonexistent. England and France who lent money were in shadow. They appeared 2 years later in 1879 - as regulating forces.

Two weeks later after the memorandum, 17/29 May, 1876 revolution of "the New Eight" occurred in the Ottoman Empire. Sultan Abdulaziz was dethroned, his nephew Murad V was elevated to the throne. In case the dethroned sultan borrowed money in his own name, the debt was already not valid. However, I think, he took money in the name of his family, and Murad V should pay it off.

Seven months later, in December 1876 the Great Powers under the direction of Russia already sat in Constantinople. The powers decided which reforms the Ottoman Empire should carry out. It resembles external management in case of bankruptcy. On December 23, 1876, the constitution of the Ottoman Empire was proclaimed. Freedom and equality were declared, the two houses parliament appeared.

Here is an important turn point. If the sultan borrowed money in the name of his family, the family could be killed, and the debt - forgotten. But if a popularly elected president borrowed money in the name of his people, his displacement solved nothing, - the country had to pay off the debt all the same. The Ottoman Empire did not become a national democracy state, but the parliament took responsibility from below - on behalf of those whom it governed. It was as in the case with mortgage – banks needed a guarantor. The Parliament, it was unimportant, how much national it was, was such a guarantor.

The situation in 1876 was controlled by the Young Turks suddenly appeared out of nowhere. However, in January 1877 the Turkish party refused to discuss their country destiny in that way. As a result, on March 19 (31), 1877, Russia de facto delivered an ultimatum to the Ottomans.

The Ottomans were silent.

On April 16, 1877 Romania (a province of the Ottoman Empire) officially concludes a convention with Russia concerning an easy access of the Russian armies. Simultaneously the “mortgage tickets” of the Ministry of Finance and the National Bank of Romania not existing yet (it would be founded in 1880) were issued. On April 24, 1877 in Bulgaria (a province of the Ottoman Empire) the appeal to Bulgarians for the weapon - to help the Russian armies - was issued. The same year Macedonia, territorially still not arranged, also declared war to the Ottomans.

In June 1877, the meeting of the promised Turkish parliament took place at last, but the parliament did not agree clear off someone else’s debt. On a charge of conspiracy, many of the “New Ottomans” were subjected to repression, and, personally, I do not exclude that it was reasonable. However, the constructed road “Haidar-pasha (Istanbul) – Izmit” was immediately “sold” to the Deutsche Bank in exactly 1877 - obviously as payment off the debts.

In February 1878, the parliament unwilling to sign under someone else’s enslaving receipt was dismissed, and the Constitution of 1876 terminated its existence. Dictatorship (if the dictator was chosen correctly) appeared to be more reliable.

On March 3, 1878, the Treaty of San Stefano was signed between Russia and the Ottoman Empire. The new sultan recognized independence of Montenegro, Serbia, Romania, and Bulgaria; Bosnia and Herzegovina received wide autonomy. Those forces that lent the Ottomans money, and started to dispose legally of earlier pledged rights to the state-owned property, persistently remained in the shadow.

Territories with their population were really regarded as something that it was possible not only to pledge in a bank, but to purchase and to sell as well. So, Russia received the contribution of 1 billion 410 million roubles, but 1 billion 100 million roubles of it were covered by the cost of the Turkish annexed territories. Thus, only 310 million roubles actually paid off.

As Russia added in the agreement something from itself (in Transcaucasia), the congress assembled in Berlin where all above added requirements were withdrawn.

From September 18, until April 14, 1879 the European Commission organic charter development operated. In Bulgaria the governor-general was administered, a Christian reform was carried out and local armed forces were arranged. Thus, the general power of the Ottomans over Bulgaria remained in force - until 1908. I think, the purpose was repayment of the Ottomans’ debt.

In 1879 it was mentioned for the first time that it all because of the English-French credit of 1854 - those 75 million francs. That debt is mentioned only because in 1879 the Ottoman Empire had to lend money one more time and again - in Europe. The creditor is not mentioned. It is known only that the taxation right in the Empire passed to a group of bankers from Galata in a tax farming (that medieval tax farming) for 10 years.

In 1881 a gold-coin standard was introduced in Turkey, - the country definitely tried to get out of the problem. Here, in 1881 the decree of the sultan was issued concerning creation of the Ottoman Public Debt Administration. Its council included representatives of England, France, Germany, Austro-Hungary and local creditors.

There is no Russia in this company of "observers"; at it had a different function. I will not tell about 1877, and in the first half of the XIX century, a Russian soldier cost for European customers approximately four times cheaper than a French one. It made sense to invite Russia in business, first of all, in case of war.

In addition, certainly, it is only an iceberg top. In that 1876 when the Young Turks appeared in Turky, the Young Czechs emerged in Czechia. That is, Vienna was a debtor as well. Marx wrote about this indebtedness of Austro-Hungary, but somehow without mentioning that both processes had much in common - both in Vienna and Istanbul.

Understanding that process had a uniform character, I have tried to find what occurred in Slovakia known for its silver mines, and found out that the history of Slovakia of the XIX century is a gap in the Slovak version of Wikipedia. Slovaks are not ready yet to describe the events occurring in their country during those 100 years. Meanwhile, one of the first railways in Europe was built in Slovakia, and it is a clear evidence of a huge some of money.

Nobody hides this information, and so is the history of Europe which can be easily understood without drilling. The role of Russia looks absolutely different here: it is possible to dismiss charge in unreasonable aggression from it. National-liberation movement in the Balkans looks absolutely different as well. Moreover, the most important conclusion is not to forget any more about character of the logic connections created in this text.

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