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AMBASSADOR MORGENTHAU'S STORY
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dreds of American religious, charitable, and educational institutions, practically stood on American territory and looked upon the American Embassy as their guardian. Several nations had their own post offices, as they did not care to submit their mail to the Ottoman postal service. Turkey likewise did not have unlimited power of taxation over foreigners. It could not even increase their customs taxes without the consent of the foreign powers. In 1914 it could impose only 11 per cent, in tariff dues, and was attempting to secure the right to increase the amount to 14. We have always regarded England as the only free-trade country, overlooking the fact that this limitation in Turkey's customs dues had practically made the Ottoman Empire an unwilling follower of Cobden. Turkey was thus prohibited by the Powers from developing any industries of her own; instead, she was forced to take large quantities of inferior articles from Europe. Against these restrictions Turkish statesmen had protested for years, declaring that they constituted an insult to their pride as a nation and also interfered with their progress. However, the agreement was a bi-lateral one, and Turkey could not change it without the consent of all the contracting powers. Yet certainly the present moment, when both the Entente and the Central Powers were cultivating Turkey, served to furnish a valuable opportunity to make the change. And so, as soon as the Germans had begun their march toward Paris, the air was filled with reports that Turkey intended to abrogate the capitulations. Rumour said that Germany had consented, as part of the consideration for Turkish aid in the war, and that England had agreed to the abrogation, as part of her payment for Turkish neutrality. Neither