Karadeniz Araştırmaları

Abstract

The economic depression that the Ottoman Empire began to feel increasingly deeper in the 19th century pushed the state to take new measures. While the regulations that were introduced on the value of money failed to offer the required financial recovery, the wars with Russia, in particular, began to leave the state treasury helpless. Having resorted to domestic debt through Galata bankers during previous economic crises, the Ottoman Empire turned to external debt for the first time during the Crimean War of 1853-1856. However, this external debt was followed by other borrowings, burdening the state with more debts even to pay the interest on its main borrowings. The Ottoman economy started to slide into financial bankruptcy rather than a crisis. Finally, demand of the European states to collect their own receivables led to the foundation of the Ottoman Public Debt Administration (OPDA) as per the agreement made in 1881. Upon establishment of the administration, the monopolies on salt and alcoholic beverages, as well as the taxes on silk, tobacco, and various other revenues were turned over to the OPDA. Tobacco revenues were later transferred to the Tobacco Directing Administration, which was a joint stock company. The European States set out to collect their receivables through the administration. Founded in Istanbul, the OPDA built its organizational structure in a short time, which later turned into an institution that operated systematically in all Ottoman provinces during the reign of Sultan Abdülhamid II. One of these institutions was established in the province of Kastamonu. This study explores the organization process of the OPDA in the province of Kastamonu, and the problems faced by the administration within the province between its establishment and the Second Constitutional Era.