[Extract.]

Mr. Tuckerman to Mr. Seward.

No. 22.]

Sir: The National Assembly adjourned on the 5th instant, having voted the budget for 1868, amounting to about 34,000,000 drachmas for [Page 140] the ordinary, and about 12,000,000 drachmas for the “extraordinary” expenses of the kingdom, being greatly in excess of the expenses of any previous year, and leaving a deficit in the treasury of some 10,000,000 or 12,000,000, which can only be provided by a fresh loan. This loan for 25,000,000 of francs has been authorized by the Chambers at five per cent., but with whom can it be negotiated? If It is understood that England will take it at the rate of fifty per cent., which would in reality be supplying the amount wanted immediately for current expenses at the annual interest of ten per cent., with an indebtedness added to the nation of twice the sum actually borrowed by it. The efforts of the government to compromise with the holders of the old five per cent. loan of 1824–’25, contracted under circumstances of great national peril at fifty-six and fifty-nine, are impeded by the opposition of the British minister here. It is not improbable that the loan now asked for may be negotiated in England at a better rate than is now offered, if the Greek government will modify its views regarding its ancient indebtedness. Before the adjournment of the Chamber the prime minister proposed a vote of thanks to the United States Congress and people, for their expressions of sympathy in behalf of Crete. The resolution passed unanimously, and the result was received with loud cheers.

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I have the honor to be, sir, your obedient servant,

CHARLES K. TUCKERMAN.

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