TURKISH     EMPIRE-,-vOTTOMAN      PORTE.              
1.159

basis than those of any other European country except England an(1
Germany. It is quite evident where he thinks retrenchment should
begin, viz, at the head of the governmenet.
       I have, &c.,
                                                     J. H. GOODENOW.


                                   [Inclosure.]
                           THE TURKISH BUDGET.
                           REPORT OF THE COMMISSION.
  The following is the report addressed to the grand vizier by the special
advising
commission authorized by the Sultan's iradJ to examine the Ottoman budget
for the
Turkish year 1290, (March, 1874, to March, 1875.)
  The confidence which the government has shown in confiding to us so important
a
task, would induce us under any circumstances to do our utmost to accomplish
it.
But at this moment, when a succession of adverse circumstances has hampered
the
action of the Turkish treasury, and thrown a discredit upon the finances
of the Ottoman
Empire which is not justified by their real condition, wo have deemed it
our duty to
make the most minute inquiries, in order to ascertain the facts, and to set
forth in our
report, with complete frankness, the results of those inquiries, the conclusions
to be
derived from them, and the means which are alone capable, in our opinion,
of re-estab-
lishing the credit of the empire. We fully agree with the opinion expressed
by your
excellency that a complete and truthful statement of the financial situation,
even in its
most unfavorable details, is the only means of inspiring well-founded confidence.
In
the prosecution of our task, we have had to ask for a number of explanations,
revenue
tables, and other documents. Everything was communicated to us by the finance
de-
partment with the utmost alacrity, and we are happy to state that the order
and
clearness of these books and documents do honor to the treasury accountants.
  In examining in detail the budget of revenue we found two classes of items,
requir-
ing different kinds of examination, the old taxes and the new taxes, of which
the col-
lection begins with the financial year 1290, (March, 1874, to March, 1875.)
  With regard to the old taxes, we checked the estimates of the budget by
a compari-
son with amounts actually received under each head in previous years, and
had before
us for this purpose a comparative table of receipts for each year, from 1278
(Turkish)
to 1287 inclusive. We formed our estimates upon these data, with the explanations
we
sought, as to the manner of calculating the presumed increase or diminution
of reve-
nue, according to the receipts of preceding years. Not having the experience
of the
past to guide us with regard to the new taxes, we had to confine ourselves
to an
examination of the grounds upon which the calculations had been based for
the
estimated returns from these sources presented to us. In general, and subject
to subse-
quent remarks which follow, we found the estimates are grounded on moderate
Calculations, and that there is reason for larger returns than the amounts
set forth.
With those remartks, we submit some observations on the leading items of
the estimates
of revenue, some of which call for no comment, after the explanations furnished
to us.
  Some taxes, especially the verghis (poll-tax) and the tithes, cannot be
entirely col-
  lected within the year. We calculate, following the result of previous
years, that the
  arrears which will necessarily accrue during the ensuing year, will be
counterbalanced
  by the sums still coming in from those taxes unpaid during the past year,
as has
  hitherto been invariably the case, and we therefore confirm the estimate
in the present
  budget. The produce of the tithes is essentially variable, depending upon
the quan-
  tity and prices of the harvests. The sheep-tax has shown remarkable elasticity
with
  partial variations. Its produce, from 900,000 pounds Turkish in 1278, amounted
to
  2,000,000 pounds Turkish in 1287. The past year of 1289 having been unfavorable
to
  sheep, we hope that the diminution of 15,000 pounds Turkish, set down in
the present
  budget to make the return the same as that actually reached last year,
will not in the
  end be found to have been necessary. The tithe on agricultural produce
has similarly
  in previous years resulted in an average increase of 5 per cent. annually,
anfd the esti-
  mate on this head in the present budget has been calculated on such an
increase. This
  increase appears to arise in part from the real growth of the wealth of
the country,
  which will be still more rapidly dleveloped with the extension of roads
and communi-
  cations, and in part from an improved system of collection. We deeply regret
that
  the government, under the pressure of fiscal necessities which we recognize,
finds itself
  forced to augment the rate of this tax, which weighs almost entirely upon
the labor-
  ng population, and that, too, at the moment when, by the wise measure of
abolishingi
  the internal customs duties, it had decided upon a course which is destined
to greatly
  develop the commerce and wealth of the provinces. We believe, however,
that the
  improvement in the means of collecting this tithe, which has already partially
taken
  p~lace, and which is still being followed up, will, while increasing the
revenue, result