TNT History Archives: Ottoman Mint-condition Corruption (1909)/Part II

//Ed. note: Chemist Alemdarzade Hakkı begins now to 
dig deeper into his accusations of fraud and embezzlement
at the Ottoman Mint, orchestrated by Mint Director Hakkı
Halid Bey.//


               The Ottoman Mint building in Istanbul.

First of all, Hakkı Bey had mint workers take over the duties of those
at 'kefçe' (one of the mint's workshops), whom he deemed to be too
upright.  Next, he had his own personnel make the 'dirhem' (drachma)
of the export cashier's office heavier in order to enable more material
to be imported to the mint.

(To make this process clearer I need to explain a bit further: although
there were many cashier offices at the mint, the two most important
were 'kefçe', where expensive metal imports for the factory were
weighed.  The other one was the office where coins were weighed and
then sent to the Finance Ministry, the 'Hazine-i hassa' (Sultan's privy
purse), banks and other institutions.  The 'kefçe' office was located next
to the foundry and workers there weighed the imported materials and
then passed them on to the mint workers.  However, Hakkı Bey decided
many times to exclude the 'kefçe' workers from this process and have his
mint workers do it.  As a result, workers assigned to 'kefçe' were those
who would either be kept unaware of this maneuver or pretend not to
see it.)


          Bank-ı Osmani general HQS building in Istanbul.

So even though the quantities involved were slight and only occasionally

attracted any raised eyebrows, no one objected because no one could 

imagine that the government would be involved in such a degree of 

dishonesty.  And in the event that anyone did raise an objection, they 

would be silenced with accusations that they were daring to question the 

accuracy of the mint's weighing procedures.  

The person most likely to object would have been the inspector from the

Bank-ı Osmani, Monsieur Teste, but Hakkı Bey and his father Halid Bey

pampered him and, from time to time, placated him with honors and 

medals given to him by the Palace, through the intercession of İzzet Paşa.
In addition, gold watches given to Monsieur Teste by the workers in the
'çarkhane' and 'sikkehane' workshops of the mint and by Bank-Osmani
served to increase his gratitude toward the mint.

These placating practices continued up until 20 September 1909, when
they were exposed by the new officials of the Bank-ı Osmani.  (It is
certain that in the course of these new investigations Bank officers,
the mint's chief accountant and chief secretary, 'kefçe' officials and
inspectors from the Finance Ministry will be questioned.)




Now, let us look at other embezzlements.  These involve the 'tolerances'
(allowable amount of variation) related to measuring and weighing of
gold and silver coins and medals; the conversion of raw silver to coins;
purchases of tools and instruments; and coloring and repairs. 

Let us examine one of these in detail:  as is known, by law, the Ottoman
gold lira must be pegged to an average measure of 916.66.  Leaving the
mint director to one side, even the government cannot knowingly
diminish this average measurement to obtain some benefit.  Once in a
while, an accident, or a mistake, or a mathematical or industrial error
may arise in connection with the measurement but this can be
ameliorated by adjusting other measurements. 

'Tolerances' that are allowable, whether above or below, must be proven,
and mints the world over adhere to this practice.  The public and the
entire world have been guaranteed that the Ottoman gold lira is equal to
an average measurement vis-a-vis gold of 916.66 and when an Ottoman
lira is melted it must amount chemically to 916.66 pure gold in relation
to the 'dirhem' (drachma).  But if these gold liras are all processed with
a tolerance that is less, then when they are melted and re-melted a
number of times the measurement will decrease.  In essence, it can be
said that, in this way the value of Ottoman gold is being stolen.

//END of PART II//