NEWS OF THE WEEK.
ITHE Sultan's partial repudiation of his Debt has been the
chief topic of the week. No further explanation of this act has been offered, and no extenuation vouchsafed. The second half of the interest on the £200,000,000, or £.6,000,060 sterling, is, as we explained, to be paid in bonds bearing 5 per cent. interest, issued at par, whereas they are worth only 30 per cent, of the Tar value, and the total affair is, in fact, a composition effected by violence, at 12s. 6d. in the £1. This might be endurable if the interest now offered were secure, but, as we have urged elsewhere, :there is nothing to prevent Constantinople from repeating the process, and very much to induce it. There has been much talk during the week of action by the Bondholders, but they are, of 'course, quite powerless, and none of the Governments are dis- posed to interfere. The Duc Decazes may probably instruct the French Ambassador to remonstrate against the repudiation of bonds secured on special taxes, but as the interest on the loan of 1855, guaranteed by England and France, is to be paid, the Powers have no locus standi. The Khedive has not as yet followed the example of the Khalif, but his difficulties are believed to be severe.
