The unit of the Turkish revenue system is the village; then the nahie, or group of villages; then the caza (canton); then the sandjak (arrondiss.e.m.e.nt); and, lastly, the vilayet, or province, under a Governor-General, Director of Finance, and Council of Administration.

Throughout these several stages-from the village to the nahie, caza, sandjak, and chief place of the vilayet-there are excellent rules for the check and disposition of the revenues, but they are not observed.

Indeed, in the judicial, as in the revenue and financial administration of the island, the organisation of establishments and rules of procedure are commendable in every way, but the rules are unknown to, or ignored by, the officials employed to administer them.

The t.i.thes are farmed by the Turkish Government to merchants and speculators in the spring of each year, when the ripening crops enable all concerned to estimate the extent and quality of the year's produce.

The sale of the t.i.thes (by villages, nahies, or cazas, as may be preferred) commences in March and ends on the 15th June, and whatever t.i.thes then remain unsold the Government undertakes to recover through its own agents.

When the sales are effected the t.i.the-farmer signs a bond for the amount, payable in six monthly instalments, commencing from the 1st August, with interest on instalments not paid at due date. Each t.i.the-farmer is required to have a sufficient surety, who also signs the bond and is jointly and equally responsible with the princ.i.p.al. After conclusion of the agreement, the t.i.the-farmer proceeds at once to watch the fields in which he is interested and to estimate the yield. He sees the grain cut, threshed, heaped, and insists upon its remaining upon the threshing-floor until his claim is satisfied-the claim always exceeding the stipulated tenth. For wheat, barley, and other grains, arrangements have to be made by the cultivators for transit to the nearest port of embarkation, on terms more or less unfavourable to themselves. Their cattle are taken away for transport when most required in their own fields, and they have to bear all the expenses of transit, except the expense of the first mile, which is paid by the t.i.the-farmers. For fruit, vegetables, and other perishable articles, the t.i.the is commuted in a money payment, respecting which there are usually disputes, determinable by the local Kaimakam or head Government official of each caza. The awards of these officials are always in favour of the t.i.the-farmers, who are members of the Administrative Councils, or otherwise persons of influence in the cazas comprised in their respective engagements. Later in the year, or about the 15th August, the vineyards are similarly visited by the t.i.the-farmers or their representatives, and estimates of the produce are made by them and by the cultivators. These estimates always differ, and are the subject of constant disputes, which are referred to the Kaimakam, whose award is generally in favour of the t.i.the-farmer. As the grape cannot be removed until the claim is settled, the cultivator submits to the exactions of the t.i.the-farmers rather than risk the deterioration or loss of his stock, and is thus practically mulcted in proportions far exceeding a tenth of the entire produce. The effect of these illegal exactions has been to reduce the cultivation of the grape throughout the island.

But, though keen in their dealings with the peasantry, the t.i.the- farmers are slow in their own payments to the Government Treasury.

These payments are required, under their bonds, in six monthly instalments from the 1st August; grace is allowed for forty days, and the instalments are required to commence on the 10th September. They are delayed, however, on various pretexts, and reclamations and remissions of revenue are often unjustly obtained through collusion with the local Kaimakams and Malmudirs. Thus, the t.i.the-farmer makes his bargain with the Government when the crops are ripening, recovers his claim directly they are gathered, indefinitely postpones his own obligations to the Government and often evades them altogether. Although, under his bond, interest is payable on overdue instalments, it is never enforced. An examination of the accounts revealed the existence of considerable arrear claims extending over several years, and for the most part irrecoverable now. Practically, the t.i.the-farmer's obligations have never been discharged in the year to which they belonged. Of the collections credited in the year 1876-77, nearly one-half was on account of the claims of prior years.

These facts clearly show that the operation of the t.i.the system has resulted in a loss of revenue to the State. It has impoverished the peasant, involving him in the toils of the money-lender as well as of the t.i.the-farmer. It has checked the productiveness of the island, the area now under cultivation being less than a third of all the culturable lands of Cyprus. Some modification of the tax, or of the machinery for its collection, would therefore seem to be imperatively required.

There are not wanting points of a.n.a.logy, as of difference, between Cyprus and some of the British provinces of India, and a suggestion has been made to subst.i.tute the Indian system of a fixed money payment for the tenth of the produce in kind. Curiously enough, the converse proposition has lately found favour in India in connection with the agrarian riots in the Dekkan, and what is there regarded as the bane of the Indian system is now proposed here as the antidote of the Turkish system. Like the Cypriote, but in a greater degree, the Dekkan peasant is poor, indebted, and indifferent to the improvement of his land, and both are constantly liable to the effects of drought and famine. But whilst the State requires from the former only a tenth part of his actual crops, the Indian peasant is liable for the full money rate fixed without regard to the rainfall and the crops. As between the State and the peasant, the elastic t.i.the tax would seem to be preferable-its evil working in Cyprus being due mainly to the irresponsible and unscrupulous agencies entrusted with the collection of the t.i.thes. In attempting any reform, therefore, care should be taken at the outset to avoid principles or methods that have contributed in India to evils similar to those that have to be rectified here. The direction and scope of the reform must necessarily depend upon more complete information than is at present available respecting the land tenures and local agricultural customs of this island, the varieties of soil, the means of irrigation actual and possible, and the conditions and habits of the agricultural cla.s.ses generally.

Information on these essential points may, however, be obtained before the termination of the present engagements with the t.i.the- farmers in March 1879. A rough field survey would prepare the ground for a systematic inquiry into rights and interests in each estate and village throughout the several districts of the island.

The inquiry, conducted by the respective commissioners of districts in the next few months of favourable weather, may be made to embrace the following points 1. The extent of the several holdings, and whether held under proprietary, sub-proprietary, or occupancy rights.

2. The average produce of each estate or holding, and its value, say for the last three or four years.

3. The areas respectively (1) under cultivation, (2) not under cultivation but culturable, (3) unculturable and barren waste.

4. In the case of culturable lands not under cultivation, inquiry should be made whether this is the result of the oppressive way of collecting t.i.thes, or the want of money or cultivators, or whether the land is required for grazing or other purposes.

5. The character of the soil in various parts of the island, and the respective producing capabilities.

6. The arrangements, existing and possible, for irrigation by wells, aqueducts, and tanks.

7. The proportion of the people occupied in agriculture, and the proportion in other pursuits than husbandry.

8. The personal condition of the agricultural cla.s.ses, whether well housed, well clad, with good cattle, ploughs, and gear, or the reverse.

9. The standard for measuring land. The area of each estate or holding, after measurement, should be reduced to English standard acres.

The result of these inquiries, accurately and clearly recorded, would afford valuable data for determining the extent to which the present t.i.the arrangement may be modified for the ensuing financial year.

Whatever modification may be adopted in substance, the tax will at least be collected without injustice or oppression, and the cost of collection will be covered by the increased revenue which must result from an improved administration. The proportion of the produce heretofore taken in Cyprus, as the share of the Sovereign power, is considerably below that taken in other Eastern countries. In India, this share under the ancient Hindoo Rajahs was one-sixth. Under the Mohammedan rule, a third of the average produce of average land was held to be the Government share. Under British rule, from one-third to one-half of the rental is the standard of a.s.sessment at the present day, representing a much larger proportion than a tenth of the produce of the land. And in Cyprus (as has been shown in the preceding remarks), although the declared share of the State was only one-tenth, the peasantry have contributed a very much larger proportion, the difference forming the perquisites of the collectors of the revenue. Hence it may fairly be a.s.sumed that the British administration may take a larger share than one-tenth of the produce, without imposing any additional burden whatever on the people.

It may rather be hoped that any increased State demand upon the cultivator will still leave him a larger proportion of the fruit of his labours than he has heretofore enjoyed, with absolute freedom in disposing of it to the best advantage.

A further increase of the revenue from land may be antic.i.p.ated from the extension of cultivation. With light a.s.sessments, improved communications, and occasional State aid, a large proportion of the culturable lands, now lying neglected, may be gradually brought under cultivation, stimulating the industry of the people, and increasing the productiveness and wealth of the island.

For the current year, however, the existing arrangement with the t.i.the-farmers must be accepted, and the revenue estimated accordingly.

The year's t.i.thes were sold for 82,088 Turkish liras, or nearly 74,000 pounds sterling, and the whole amount has yet to be collected. Already, the t.i.the-farmers plead inability to recover their dues from the cultivators. The truth probably is that, whilst the British administration has somewhat checked their habitual exactions, it has emboldened the peasantry to resistance which would never have been attempted under the Turkish rule. Due justice will be done between the parties, but, in any case, the Government claim of 82,088 liras is covered by sufficient security, and will be realised for the most part.

During the earlier months of the current year, before the British occupation, the sum of 1,306,321 piastres was recovered on account of silk t.i.thes and t.i.thes of prior years. Adding this sum to the unrealised claims, and leaving a margin for default, the receipts for the year may be taken at 8,352,000 piastres, or 72,000 pounds sterling. The average of the previous five years was 8,584,786 piastres, and they included three years of scarcity. The account rendered by the Ottoman Government for the past year, 1877-78, exhibits the dimes or t.i.thes at 12,500,595 piastres, but that was the amount of the year's demand, and the actual realisations amounted only to 5,072,872 piastres. Looking to the favourable conditions of the present year as compared with the past year, the estimate of 72,000 pounds sterling may be accepted.

t.i.thes on Vakouf Lands.

The tenth part of the produce of vakouf lands, fields, and gardens is appropriated for the maintenance of mosques, monasteries, tombs, and other religious foundations. The t.i.thes on vakouf lands are paid to the Mutavelli, or local administrators of the vakoufs, who remit 20 per cent to the Minister of the Evkaf at Constantinople, and retain the balance.

The Mutavelli are not required to account to any Government functionary for the revenue of vakouf lands beyond the annual subsidy of 20 per cent to the Evkaf. It is understood, however, that in many cases the objects and purposes for which these vakouf lands were a.s.signed have long since ceased to exist, and thus not only are the pious intentions of the founders frustrated, but a considerable public revenue is diverted into private channels. The legal conditions attached to these vakouf lands, and to the lands and other property in Cyprus claimed for the Ottoman Crown and State (under Article IV of the Convention between Great Britain and Turkey) are at present the subject of a special inquiry, and the result will have an important bearing on the revenue to be hereafter administered by the British Government. For the present year, the t.i.thes on vakouf lands have been farmed for 1,676 Turkish liras in the districts of Famagousta, Kyrenia, Papho, and Limasol. No t.i.thes have been sold in the other divisions. As the t.i.thes on vakouf lands do not belong to the general revenues of the island, they are not included in the estimate now submitted.

Verghis.

This tax is divided into three cla.s.ses:-- 1. Emlak verghisi, or impost on houses or immovable property, at 4 per thousand on the purchasing value.

2. Impost of 4 per cent on the rent of immovable property, or houses not occupied by their owners. The rent is a.s.sumed at io per cent of the value.

3. Verghi temetu, or impost on professions and trades, at 3 per cent on profits and salaries.

Before the beginning of each financial year, the district authorities prepare statements designating the contributions required from each village and town, according to the number of houses, the number and means of the population. The a.s.sessment is made roughly, and the tax is recovered by Moukhtars of villages, selected by the inhabitants and confirmed by the district authorities. All collections are forwarded, as recovered, to the Treasury of the sandjak.

All sales and transfers of immovable property, with the t.i.tle-deeds thereto appertaining, have to be registered in the Registration Office, and the means are thus partially afforded for a.s.sessing the owners of property for the 4 per thousand on the value, and the 4 per cent. on the rental.

But the 3 per cent. on professional profits and salaries is arbitrarily fixed for each village, or group of villages, and the Moukhtars levy the personal contributions of each tax-payer as they think fit.

In this process there is considerable oppression of the poorer taxpayers, and also loss of revenue to the State. Both would be obviated, or at all events mitigated, by entrusting the a.s.sessment to Government officers, and by a more careful and exact registration of property, and of profits from trades and professions. The revenue from the licence tax in towns must largely increase in the future.

As a rule, the district officers endeavour to recover the verghis before tax-payers are subjected to the exactions of the t.i.the-farmers for payment of the dimes and other imposts. In some of the Turkish vilayets, the Government have gone so far as to forbid the local tribunals from condemning the tax-payers to pay the claims of third parties until they have a.s.surance that the verghis have been paid.

The average yield of the verghis tax in the last five years was 3,521,083 piastres, or 30,354 pounds per annum. The account of the last year of the series (1877-78) showed a revenue of 3,193,850 piastres, or 27,535 pounds. The demand for the current year is 3,380,246 piastres, of which only 518,545 piastres have been recovered up to the present time.

The slackness of the Turkish revenue officials in collecting this tax is due partly to the change of administration and uncertainty as to future taxation of the island, and partly to the war tax and other burdens imposed upon the people during the past year. The needful measures have now been adopted for effecting recovery, and as the tax affects property and the well-to-do cla.s.ses, it is hoped that about 2,000,000 piastres will be recovered in the next six months. Adding this sum to the recoveries already effected, the revenue of the entire year is estimated at 2,552,000 piastres, or 22,000 pounds.

Tax on Exemption from Military Service.

This superseded the capitation tax formerly levied upon Christian subjects, and other subjects of the Porte who were not Mohammedans, for exemption from military service. It is a tax of 27 3/4 piastres for each male inhabitant from twenty to forty years of age, but practically it is levied upon males below and above the limits of age. Returns of the numbers coming under this impost are settled between the heads of villages and the Moukhtars. The latter are required to recover the money and pay it in twelve monthly instalments into the chest of the sandjak.

The rate of 27 3/4 piastres is equivalent to 5s. per man per annum.

There is no apparent reason why it should not be paid at once and credited in the Government Treasury immediately on payment.

This tax is unpopular and offensive to those whom it affects throughout the Turkish dominions. The Greek, Armenian, Bulgarian subjects of the Porte have protested against it from time to time, but without effect.

Were these declared eligible for military service on the same terms as Mohammedan subjects, but with the option of providing subst.i.tutes, the impost would be relieved of its invidious character, and perhaps yield a larger revenue to the State than heretofore. This, however, equally with the exoneration tax, would be inappropriate in Cyprus under a British administration, which does not require any considerable proportion of the population for military service. It is matter for consideration, therefore, whether this light tax may be continued in some other form.

The average yield of this tax during the past five years was eqivalent to 12,270 pounds a year. It increased last year, on account of the war, to 15,110 pounds. But in the current year the recoveries have been slack, for the reasons stated above in regard to the verghis, and the estimate is therefore for 1,044,000 piastres, or 9,000 pounds.

Tax on Sheep.

There is a regular enumeration of the sheep and goats throughout every village in the island during the month of March, and the tax is evied at the rate of 2 1/2 piastres, or about 6d. per head. The tax is collected by the Local Government officials, and with proper arrangements should all be recovered in the month of April, but there are considerable arrear claims, extending back to several years.

The average revenue derived from this tax in the last five years was 9,854 pounds per annum. The recoveries already made in the current year amount to 1,187,364 Piastres, or 10,235 pounds. The estimate for the entire year is taken at 1,276,000 piastres, or 11,000 pounds, and the realisation of this sum may be expected.

Miscellaneous Revenue.

Under this head are comprised various small taxes, such as the tax on sales and transfers of landed property, on contracts, on measurements, on sale of cattle, on swine, stamps, judicial fees and fines, &c. The average yield of these taxes in the last five years was 767,005 piastres, with an increasing tendency in the later years. The amount recovered in the first six months of the current year was 743,775 piastres. The estimate for the entire year may therefore be safely taken at 1,102,000 piastres, or 9,500 pounds.

Customs.

We now come to the indirect taxes. I hope on a future occasion to describe, more fully than time will allow at present, the effect of the existing customs tariff in the past, and the modifications that may be made under British administration in this important branch of the public revenue, and in the excise on tobacco and spirits. It is sufficient to say at present that the customs revenue is derived from a duty of 8 per cent. upon imports and 1 per cent. upon exports, and that the receipts of the last five years give an average of 981,405 piastres, or 8,460 pounds. The increased population and trade consequent upon the British occupation of the island have already had a sensible effect upon the revenue. The collections in the first four months of the current official year under Turkish rule amounted to 268, 718 piastres, or 2,316 pounds. In the next two months of British administration they amounted to 305,386 piastres, or 2,632 pounds, being an increase of over 127 per cent., and that without any change in the tariff or the customs regulations. A continuance of this rate may safely be reckoned upon for the next six months, and the revenue of the entire year is therefore estimated at 1,554,400 piastres, or 13,400 pounds. This estimate takes account of the probable early abolition of all export duties.

Excise on Tobacco and Spirits.

The receipts of the last five years give an average annual revenue of 6,475 pounds for tobacco and 4,546 pounds for spirits. The receipts for the first six months of the current year amount to 4,400 pounds for tobacco and 3,930 pounds for spirits. The estimate for the entire year is 8,650 pounds for tobacco and 8,200 pounds for spirits, and it is expected that the actual realisations will fully cover the estimate.