HUNT'S

MERCHANTS'

MAGAZINE.

AUGUST, 1842.

ART. I.-COMMERCE OF GREECE.

GEOGRAPHICAL POSITION OF GREECE FAVORABLE TO MARITIME COMMERCE-COMMERCIAL SPIRIT AND ENTERPRISE OF THE GREEKS, ETC.-MONEY AND COINS-TARIFF OF FOREIGN COINS PERMITTED TO CIRCULATE IN GREECE, WITH THEIR VALUE IN GREEK CURRENCY-WEIGHTS AND MEASURES-RATE OF INTEREST AND DISCOUNT-MORTGAGE LAWS-NATIONAL BANK-BANK LAWS CUSTOMHOUSE ESTABLISHMENT-BONDING SYSTEM-THE TARIFF-IMPORT DUTIES-→→→ MARINE INSURANCE COMPANIES, ETC. ETC. ETC.

THE geographical position of Greece must convince the most superficial observer that it is pre-eminently adapted for a maritime state; for placed as she is at an equal distance from the three continents of the Old World, with an almost unlimited number of ports, bays, creeks, and roadsteads, she is enabled to carry on a large and lucrative commerce, and engross the carrying trade of the Mediterranean and Levant, without going far from home. This must appear a natural conclusion to the general observer, but even distinguished statesmen have acknowledged the superior capacity of Greece for extending her commerce and navigation. When Lord Palmerston announced to the House of Commons in 1832 the definitive settlement of the Greek affairs, and demanded its sanction to the guarantee for the new loan, he expressed his conviction, "that the commerce of Greece would in a short time rival that of Italy when in the zenith of her prosperity."

The spirit and enterprise of the Greeks have taken a commercial turn, and in spite of the difficulties they have had to contend with, have been singularly developed. These it was which kept alive the reminiscence of a country annihilated in name, and for ages nearly forgotten by the rest of Europe; and, although their commerce was carried on upon barren rocks, selected as offering the least inducement to their more refined and luxurious conquerors to settle among them, the frugal habits of the people taught them to persevere with patience till the dawn of brighter days, when the sun of liberty should shine forth triumphantly, putting an end to their humiliating condition, and uniting them as a free and independent nation in one of the most beautiful parts of the world.

On the sterile rocks and barren islands to which the Greeks flocked for VOL. VII.-NO. II.

10

an asylum, a population was naturally produced which could find no food at home. Hardy, temperate, and bold, they found themselves obliged to resort to the element that surrounded them for the maintenance of their wives and children; and the education which they received in their early years in buffeting with the winds and waves, conduced to render them intrepid and experienced mariners. The sea became their element, and commerce their daily calling.

Hydra, Spetzia, and Psara were the most important of these commercial insular colonies, which were thus called into being during the wars occasioned by the French revolution, when the flags of France, Spain, and Italy, were banished from the Mediterranean, and those countries themselves deprived of their regular supplies of corn from Egypt and the Black Sea.

A few of the first vessels, after escaping the vigilance of the British blockading squadrons, and repulsing with success the attacks of the Algerine corsairs, returned to their barren islands from Genoa, Marseilles, and Cadiz, having doubled their capital in five months. This was the first impetus given to the enterprise of the islanders, who, in a short time, proceeded to Odessa and Alexandria, where they bought corn at a cheap rate, and frequently realized three times the cost price for their cargoes. These commercial speculations not only led them to affluence, but tended greatly to increase the daring courage and intrepidity of the Greek sailors; for exposed as they incessantly were to fierce attacks from the corsairs of the Barbary coast, they were obliged, in self-defence, to arm their vessels; and it is a remarkable fact, that in all their numerous rencontres, there is not a single instance on record of their having been taken; on the contrary, the pirates themselves were always either made prisoners, and obliged to walk the plank, or forced to sheer off with damage.

Such a union of commercial enterprise and personal courage, backed by success, had greatly altered their condition in thirty years. These three islands alone possessed upwards of 300 large merchantmen, a part of which were armed with heavy guns. But what particularly distinguished these hardy islanders, was the intelligence or natural sagacity (for scarcely any of them could read or write) with which they formed their speculations, and the uniform honesty and simplicity of their transactions. The crews of the vessels were mostly members of the same family; they received no regular pay, but had a certain share in the speculation, the profits of which, when realized, were divided with the most scrupulous good faith-first the capital, than the interest, (reckoned at three per cent per month,) and, lastly, the profit.

The undertaking was carried into execution by the captain, who had the whole sum at his disposal; nor is there any instance of fraud or embezzlement. This patriarchal honesty was most conspicuous among the Hydriots, among whom such occurrences as the following were frequent. A captain gave notice at Hydra, that he was fitting out his vessel for Odessa, to purchase grain there, and carry it for a market to Leghorn. Such of his countrymen as chose to take part in the undertaking, brought him their bags of money, which were received unopened and uncounted; nor were even receipts made out and signed by the captain, so great was the mutual confidence. It frequently happened that even the names of the parties were not given or asked for, (both parties being perfectly illiterate,) but in no case was there ever cause of complaint. On the return

of the vessel to refit, the parties interested were invited on board, and each received his principal and share of the profit in Spanish dollars, the accounts having been made out with a piece of chalk.

The fortunes thus realized were very considerable. At Hydra, upwards of twenty families possessed a million of dollars each, and several of them had ten or a dozen ships out at the same time. M. Conduriottis was the owner of eighteen vessels of from 250 to 400 tons each. But when the revolution broke out, all these fine vessels were freely offered at the altar of their country's liberty, and the greater part of these large fortunes sacrificed in the same manner, so that at the end of the war, the whole country was reduced to its pristine poverty.

The government of Capodistria which succeeded, was not such as to give an impulse to commercial enterprise, which can alone secure to Greece a permanent rank in the scale of nations. It was no part of the president's subtle policy to encourage trade. Preferring a people devoted to agriculture, on whom he had a better hold, he treated with contempt all those engaged in mercantile pursuits, as not belonging to any political party, and liable to remove from the country, if not pleased with his government, their sole object being, as he expressed himself, to make 100 per cent profit.

Under the fostering care of the present government, the commerce and navigation of the country have made rapid strides. The king is perfectly convinced that commerce must be the main spring of the future wealth and prosperity of the kingdom; and ever since his accession to the throne, without neglecting the other branches of the state, he has kept a most vigilant eye on the development of the national industry, and introduced so many useful measures to revive, improve, and protect it, that many wealthy Greeks who were settled in Russia, Germany, Italy, and Turkey, have been induced to return and establish themselves in their native country.

Money and Coins.-On the arrival of the king, the nominal money of the country was the Phoenix and Lepta-coins introduced by Capodistria as a substitute for the Turkish piastres, which had been current in Greece for a century and a half, but which had latterly become so deteriorated in value, that whilst in 1816 five piastres were equal to a Spanish dollar, the latter was current in 1833 for twenty-four Turkish piastres. In one year alone (1832) the value of the currency was depreciated twenty per cent, which, of course, caused great inconvenience and severe losses to the commercial part of the community, particularly at Syra, where the mercantile transactions, amounting to two hundred millions of francs per annum, so severe a check was given to trade, as nearly produced a general bankruptcy, the fall in the price of all goods being equivalent to the deterioration of the metallic currency.

Capodistria saw the magnitude of the evil, but had neither the inclination nor the ability to remedy it. He published a decree, it is true, introducing a new monetary system, but was unable to enforce its execution. According to this plan, he took as an unit the sixth part of an Austrian convention dollar, to which he gave the name of Phoenix, and divided it into 100 parts, called lepta. Of these phoenix, which were coined in an old coining machine which had formerly belonged to the knights of Malta, none contained the whole, and the majority only two thirds, of the legal quantity of silver; so that he was obliged to call them in, or rather to stop

their circulation: thus the phoenix only existed on paper and in the gov ernment books, whilst the Turkish piastres continued as before the circu lating medium for general purposes, and in all private transactions. His copper money was also considerably below the proper standard; and consisting as it did principally of large cumbrous pieces of twenty lepta, it of course formed a bad substitute for the diminutive Turkish coins, which, though of no intrinsic value, were exceedingly portable, and circulated throughout the Levant.

To regulate the currency and place it on a respectable footing, was one of the great problems reserved for the king's government to solve; and it must be admitted that their labors have been eminently successful.

The government took as a basis for the new monetary system the Spanish pillar dollar or colonati, a coin whose intrinsic value is well known all over the world, and which has always been especially current in the Levant. The unit chosen is called the drachme, and it is exactly one-sixth part of a Spanish dollar, or about four per cent more than the legal standard value of the phoenix. It is divided, like the phoenix, into 100 lepta, the superiority of the decimal system having been sufficiently proved by the experience of France, America, and other countries.

The only gold coin of Greece is the Otho d'or, which passes for twenty drachmes.

The silver coins are the Greek dollar or five drachme piece, the drachme, the half drachme, and quarter drachme.

The copper coins are pieces of ten, five, two, and one lepta.

The gold and silver coins were struck at Munich and Paris, the copper ones at Athens.

The Mint was established in 1836, and commenced its operation on the 31st August of that year. Although it was originally intended to have coined money of every description, its operations have been confined exclusively to copper, the silver coin in circulation having been found to be made at a cheaper rate at Paris and Munich.

This establishment is under the minister of finance, and consists of a director, a controller, a secretary, and the necessary number of workmen, which varies according to the work to be performed.

Since its commencement in 1836, down to the 31st of December, 1840, the mint has coined in pieces of ten, five, two, and one lepta, to the value of 662,373 drs. 71 leptas, the expenses of which were 411,367 drs., leaving a clear profit of 251,006 drs. 71 leptas.

The expense of coinage, including the metal, is as follows:

Pieces of 10 lepta cost 4.3555 leptas.

Thus it appears that the greatest profit arises from pieces of 10 leptas; whilst on those of one lepta there is a loss of about 30 per cent. The profit, however, on the whole shows an average of about 100 per cent. One of the very first acts of the new government was the publication of a royal ordonnance on the currency, (dated 20th February, 1833,) and