The financial situation in Turkey is of an alarming nature, I found to my great delight. I myself had never been a real enemy of the Turks. I considered them a simple, good-hearted race, and in many ways superior to the inhabitants of the surrounding countries. What I found out during my last visit has, however, entirely changed my opinion. In many desirable ways they can claim the honour of equalling their German masters, but in cruelty, barbarism, and utter unscrupulousness they now excel even the Germans. No! I am no longer a friend of the Turks. Especially am I no friend of their Government. When eight months previously I was in Turkey, I was astonished at the amount of gold that was in circulation. I had always heard that Turkey was such a poor country, and I was greatly surprised, when I entered a bank for the purpose of changing Austrian bank-notes, to find that I could get as much gold in exchange as I wanted, and I was puzzled, especially as that gold looked suspiciously new. I afterwards found that it was part of the gold that Germany had lent, or given, to her Turkish friend to get her to participate in the war. Gold had also been given for the purpose of paying requisitions, which were many, for the Turks as a result of the Balkan War had exhausted nearly all their war material. I found out that many of those requisitions had, however, not been paid. In fact, of the new war requisitions not one had been paid, most of the gold having been peculated by the Turkish officials in high places. The result was a bitter quarrel with the Germans, which, however, had been kept secret. For obvious reasons the Germans refused to send any more gold--they had none themselves. Some months ago Enver Pasha went to Berlin to try and settle the affair, and his mission seems to have been successful. On this visit to Constantinople I found the financial situation was critical. All the gold had disappeared, and, what is even more significant, silver was hardly to be obtained either. This is due to the fact that the new Treasury bonds recently issued by the Turkish Government are refused in the interior of Turkey, which is where the farms are situated. The Anatolian farmers promptly refused to accept paper money in exchange for their products, and the Turkish merchants, in order to purchase the harvest, etc., were compelled to pay the farmers in silver money. The result is that there is hardly any silver left in Constantinople, but there is any amount of it circulating in the interior of Asia Minor.