During the Russo-Turkish War, however, many of these banks lost their capital, for the Turkish functionaries escaped with all the funds they could place their hands upon. The Provisional Russian Government re-established the banks, and they have continued to progress until the present institution was founded. It now has eighty-five branch offices in the principal towns and agents in most of the villages. Its direction is under a governor and four directors nominated by Prince Ferdinand. The operations of the institution are as follows: to accept deposits; to grant loans on mortgages or securities; to grant loans upon cattle and agricultural produce; to advance money to the peasants for the purchase of cattle, seeds, or agricultural implements; to make personal loans; to open current accounts with peasants; to buy agricultural implements, seeds, and machinery for the peasants; to accept loans for departments or communes; and for the transfer of securities. The interest charged or given is 5 per cent. for deposits for five years, 4 per cent. for three years, and 3 per cent. for one year. In 1901 the amount of the bank’s operations was 535,575,182 francs, while in 1905 it amounted to 1,180,778,378 francs, thus showing how greatly it is appreciated by the peasant, and of what enormous benefit it is to the country. While there, I saw many uncouth peasants in their sheepskins from far-distant villages come and obtain loans, repay their interest, or make petition for their inability to pay. It is very apparent that all of them greatly appreciate the fact that the Government is their creditor and not the Jews. Another institution which I inspected was the State printing press, a fine building containing the latest machinery; and afterwards I was shown the building of the magnificent new church of St. Alexander Newsky, which, being constructed in blocks of white stone just behind the old church of St. Sophia, is costing over three million francs, and is to be in memory of the Russian liberator of Bulgaria. Truly, everywhere one turns in Sofia one sees some new buildings, for signs of rapid progress and up-to-dateness are on every hand. Bulgaria, with Servia, is surely destined to expand in the near future, and the “big Bulgaria” must some day ere long be an accomplished fact. [Illustration: The Royal Palace: Sofia.] [Illustration: The Main Boulevard: Sofia.] CHAPTER II BULGARIA AS A FIELD FOR BRITISH ENTERPRISE Audiences of members of the Bulgarian Cabinet—Dr. Dimitri Stancioff, Minister for Foreign Affairs, the coming man of Bulgaria—His policy—Facts about the mineral wealth and mining laws—Advice to traders and capitalists by the British Vice-Consul in Sofia—Our methods as compared with those of other nations.