The expected large surplus for the financial year 1862-63 was not realised, but proved a considerable deficit. The budget for the year 1863-64, published at Constantinople in October 1863, by order of the Government, showed, nevertheless, again a surplus, the total sums being as follows:

The details of the budget are given in the subjoined state

Several of the above items of expenditure, such as the amount set down for the civil list, are manifestly incorrect, differing from other official statements. Instead of a surplus, there was a considerable deficit during the years 1859-62. These deficits amounted to the following sums, according to reports made by the Grand Vizier: :

The actual revenue for the year 1859-60 was, in round numbers £9,711,000 expenditure

11,088,000

1,377,000

1,574,536

1,700,000

1,697,000

£6,348,536

Loss by exchange in the years 1860-62

Total deficit in three years

The loss by exchange arises from the Government receiving its revenue in paper at home, and having to pay a portion of its liabilities abroad in gold. It should be included in the ordinary expenditure of the year, but this is apparently not done.

At the commencement of the year 1862, the unfunded liabilities of Turkey amounted to

1. Paper money, 9,099,0461.

2. Floating debt, 10,900,7861. This debt was previously esti

* Despatch of Lord Hobart to Earl Russell, dated Constantinople, Dec. 10,

1862.

mated by Fuad Pasha, the Grand Vizier, at 7,700,000l. But that amount did not include a sum of 2,250,000l., or 500,000 purses, due to certain bankers to whom assignments had been given on arrears of revenue; nor did it include a sum of 967,000l., or pay

215,000 purses, for arrears of due to the army.

The foreign debt of Turkey consists of the loan of 1854, annual charge, 210,000l.; 1855, annual charge, 250,000l.; 1858, annual charge, 350,000l.; 1860, annual charge, on the average, 140,0007.; 1862, annual charge, 640,000l.; 1863, annual charge, 640,000l.; add for charges, about 30,000l. ;{total, 2,260,000l. The Egyptian tribute covers the charge on the 1844 and 1855 loans to the extent of 360,000l. The customs and octroi of Constantinople are specially pledged for that of the 1858 loan. For those of 1860 and 1863, a long list of special revenues was assigned, and for that of 1862 the tobacco, salt, stamps, and license revenues form the security.*

The total amount of the liabilities of Turkey in 1863, has been estimated at from 50,000,000l. to 55,000,000l. Of this sum the foreign debt amounts to 227,2201., contracted in the following loans :

The internal debt consists principally in treasury obligations, called Eshamis,' and Serghis,' repayable, according to promise, at the end of fourteen and of ten years. There is also a debt of 4,500,000l. owing to Galatz merchants, for which interest at the rate of 9 per cent. has to be paid. A number of unpaid claims on the Government and departmental loans, constitute a further debt of 8,500,000l. To discharge some of these liabilities, the Turkish Government, after having contracted the English loan of 1862, issued 17,000,000l. in 'Consolidés,' and borrowed a nominal sum of 6,000,000l. (at 68) from the Directors of the Ottoman Bank in March, 1863. An additional loss of 2,000,000l. was granted by the same bank to the government (also at 68) in September, 1864.

* The Levant Herald, May 11, 1864.

† Mr. B. Cochrane in the House of Commons, May 29, 1863.

‡ Letter of Times' Correspondent, dated Constantinople, Sept. 14, 1863.

K K

Army and Navy.

6

The military force of Turkey is divided into-1st, the regular active army, called Nizam; 2nd, the reserve, or Redif; 3rd, the contingents of auxiliaries; and, 4th, the irregular troops. The regular active army consists of six corps or ordou,' under the command of a field-marshal, or 'mushir,' with their head-quarters at Scutari, Constantinople, Monastir, Karbrout, Damascus, and Bagdad. Each ordou consists of two divisions, commanded by a general of division, or 'ferik.' Each division is divided into three brigades, commanded by generals of brigade, or 'livas.' The ordou consists of eleven regiments, namely, six regiments of foot, four of horse, and one regiment of artillery. Besides the six ordous, there are three detached corps-one brigade on the island of Candia, numbering 4,000 regulars, 3,500 irregulars, and 600 native cannoniers- a total of about 8,000 men; a second brigade in Tripoli, consisting of one regiment of foot, and one of horse, to the strength of 4,000 men; and a third brigade, of 4,000 men, at Tunis. three detached corps muster, therefore, to the strength of 16,000 foot and horse.

The

The special corps, under the command of the Grand Master of the Artillery, are likewise divided into ordous. They consist of— 1. The central corps of artillery-four regiments-one reserve regiment, and three special regiments which are quartered in the various fortresses of the empire, in the forts of the Dardanelles and of the Danube, on the coasts of Asia Minor and the Black Sea; 2. The engineer brigade of two regiments of 800 men each.

It

The Reserve, or Redif, forms a second army, with the same organisation as that of the Nizam, and consisting of the same number of regiments of the various arms. These regiments are divided into battalions, squadrons, and companies, and have their standing staffs of officers and corporals on active service, receiving full pay. is the duty of the latter to live in the towns and villages among the soldiers, who, though on leave, are nevertheless not discharged from the service, and these soldiers they must collect and drill once a week. The Redif soldiers meet every year for four weeks at the head-quarters of their respective ordous, and take part in the field manoeuvres. While thus on service the men have the regular pay and the usual allowance of provisions.

The auxiliaries consist of the contingents of the tributary provinces. These provinces are — Wallachia and Moldavia, Servia, Bosnia and the Herzegovina, Upper Albania, and Egypt. The actual number of these troops varies greatly at different periods; and depends on the politics of the time or the enemy against whom they are expected to take the field. In the late war with