How did the Ottoman Sultans Manage Economic Life?

We know that money was first used by the Lydians. The monetary policies that developed over time also have an important place in history. In this context, I believe that having an idea about monetary policies, state treasury and fiscal policies in the Ottoman Empire is important for better understanding and interpreting our monetary and fiscal policies in today's Turkey.

The economic history of the Ottoman Empire is divided into two sub-periods: 

The first is the classical era (expansion), in which the established closed agricultural economy showed regional differences within the empire; and the second is the reform period, which includes state-organized reforms on the state and public functions, starting with administrative and political arrangements. 

The Ottoman Empire had a systematic financial organization since the period of the principality. It is said that the first Ottoman financial organization was established by Çandarlı Kara Halil Pasha and Kara Rüstem Pasha of Karaman during the reign of Murat Hüdavendigar (Murat I). When we look at the issue in the light of this information, it is understood that the Ottoman financial system emerged in the early years of the state and the Ottoman state system, which turned into a gigantic empire over time, became functional in this direction.

In a code of law on economic life prepared during the reign of Fatih, the rule of law was emphasized at the highest level by saying, "This code of law is the law of my ancestor and grandfather, and it is even my law!". The Fâtih Code of Laws stipulates that once a year, my bookkeepers should read my income and expenditures to my court and they should wear a hil'at-i fahire. And the money in and out of my treasury shall be included and excluded by order of my bookkeepers". The importance the Ottomans attached to the organization of finance and how they embraced this understanding from the earliest times is also evident in the Fatih Code of Laws.

In fact, if the Ottomans were to become a world state, similar regulations regarding economic life were necessary and obligatory. Because a state that did not have income and expenditure accounts, did not know what would come from where and when, and did not have statistical information on this issue would have been unthinkable in the past as it is today. At the head of the Ottoman finance organization was a senior state official called "Defterdar". This official was responsible for the duties that today's Ministers of Finance are obliged to fulfill. At first, the organization was headed by a chief defterdar and his retinue. This chief bookkeeper was responsible for all financial affairs. However, in time, as the Ottoman territory expanded, the number of bookkeepers was increased to two. As stated in the Code of Laws, the defterdar was the representative of the sultan's property. During the foundation period, revenues amounted to a larger sum. On the other hand, expenses were not so high. In this period, most of the Ottoman soldiers were sipahi with fiefs. In addition, the income from the has and fiefs of most of the state officials was sufficient for themselves. The state's expenditure was only the money (salary) given to the Kapıkulu soldiers. The surplus revenues were used for construction works such as mosques, madrasahs, bridges, inns and baths.

Miri Treasury and Enderun Treasury

Ottoman finance was composed of two parts: the "Miri treasury" (or external treasury) and the Enderun treasury (or internal treasury). The duty and authority of the external treasury was determined as collecting the general revenues of the state and using the necessary expenditures locally. The internal treasury belonged to the sultan. The sultans could use this treasury as they wished. If the money in the external treasury was not sufficient, money was borrowed from the internal treasury and efforts were made to keep the wheels of the state turning harmoniously without interruption. The external treasury was opened and closed with the seal of the sovereign, which was placed on the vizier. This treasury was under the responsibility of the defterdar and the supervision of the vizier.

Until some time ago, it was known that the first Ottoman coin was issued during the reign of Orhan Bey, but with the discovery of Osman Bey's coin, this information lost its validity. Accordingly, it is understood that the first Ottoman coin was put into circulation during the reign of Osman Gazi. Ottoman money made of silver was called "akça". Each sultan issued coins in his own name as a sign of his sovereignty. Ottoman rulers minted silver and copper coins until the reign of Fatih Sultan Mehmet. During the foundation period and later periods, care was taken to ensure that the money was pure silver. The wealthy class in the Ottoman Empire could not grow much due to the understanding of waqf and the state's concern for power. Moreover, due to the functioning of the state, individuals had no property rights. Property was concentrated in the person of the sultan. In a way, the sultan meant the Ottoman State. The sultan turned the wheel by transferring property and money through temporary allocations. In this context, with the sultan's blessing and knowledge, those who took office in the state had access to money and resources, had plenty of opportunities and generally lived a rich life. Bureaucrats were seen as the richest and most powerful class in Ottoman society. For this reason, the 'state gate' was seen as an important privilege, and people wanted their children to serve in the state. 

According to Prof. İnalcık; "In the 1500s, the annual income of a sanjak bey ranged between 4 thousand and 12 thousand ducats of gold. In the same period, a rich merchant of Bursa could only have a fortune of four thousand gold coins. After the sultan's family, this small class of bureaucrats constituted the richest segment of the state. They were followed by foreign merchants and the Muslim population. By law, the central state could only confiscate 37% of the total revenue, with the remainder going to the provinces. This was seen as a natural consequence of the state's militarism and constant mobilization. 

The number of foreign merchants who received berat (business license) from the Ottoman Empire in 1793 gives an idea of the Ottoman tax system. Taxes collected from the public were one of the primary sources of income for the Ottoman finances. Taxes, which were a remedy used to ensure the regular continuity of public services, had an important place in economic and social life. The tax system, which the Ottoman state regime developed by taking over from its predecessors and implementing it, has an important place in terms of public administration and the economic history of the state. For this reason, I think it is necessary to analyze the tax system, which constitutes an important part of the Ottoman economic history. 

The Ottoman Empire, which was shaped around a Muslim society since its foundation, was based on the sources of Islamic law in its early years, with its institutions that it developed and perfected, and the basis of the taxes it collected from its subjects. Since the Ottoman Empire appeared on the stage of history as a political entity, it felt the need to introduce many tax items. These practices of the Ottoman Empire are not as complex and incomprehensible as they are portrayed by tables with hundreds of tax names. Indeed, all these tax items, which were collected under different names depending on the locality and time, can be simplified in a way that will give us the necessary information by drawing the outlines of a system based on solid principles. Taxes, which constitute the main basis of finance, one of the most important institutions of the Ottoman state system, are generally divided into two main parts. One of these is the Sharia Taxes, which are based entirely on the Sharia and derived mainly from the Book (Qur'an) and the Sunnah (Sunnah), called "Tekâlif-i Shar'iyye". The second was the Customary Taxes imposed by the state out of necessity due to financial difficulties, which was called "Tekâlif-i Örfiye".

The Ottoman State, with its structure based on a Muslim society and applying Sharia law both theoretically and practically in every field, did not ignore the practices of other Muslim states in this regard. In this respect, we cannot consider the Ottoman history and organization on its own and completely separate from its predecessors. This is because the Ottomans did not hesitate to adopt the ways of life, ethics, economics, customs, traditions and other characteristics of the Muslim Turks who had settled in Anatolia before them. For this reason, a city or town did not undergo much change when it passed from the Karamanids, Seljuks, Germiyan or any other principality to the Ottomans. Because there were no major differences between the organization and institutions of the Ottoman Empire and those of the Anatolian principalities. 

One of the characteristics of the Ottoman tax system was that the tax levied on the subject did not offend him (the subject) either financially or legally. In fact, this was true not only for the taxes levied by the state itself, but also for the taxes levied by the fief holder on its behalf. In fact, the owner of a fief was not authorized to collect more than a certain number of taxes, the types and amounts of which were determined by law. Anyone who exceeded his authority and abused it was stripped of his dirlik, never to be returned. 

The Ottoman Empire granted capitulation privileges to foreigners at various periods. The privileges granted to foreign merchants were important because they brought destruction to the economic structure in the long term. For example: In 1838, with a treaty imposed by the British Empire, the state monopoly was abolished and the tax on exports was reduced to 12% and the import tax to 3%. In this way, state lands became an open market for foreigners. It was only in 1928, after the War of Independence, that the capitulations were fully abolished. 

Sharia taxes, which formed the basis of Ottoman finance, also had a very important place in the economic life of the state. In the Ottoman Empire, the provisions of the taxes constituting the basis of Tekâlif-i Shar'iyyah were as described in detail in fiqh books. However, since the Ottoman Empire hosted people of different religions, languages and nationalities within its borders, the names and types of taxes included in the takālif-i shar'iyyah were also different. In this respect, in addition to the basic taxes such as Zakat, Öşür, Jizya and Haraj, there were about eighty tax items as their parts. 

Zakat, as one of the five pillars of Islam, was a part of the life of the state and a revenue regulation in terms of social justice. According to Islamic law, zakat was not a charity or a simple alms. It was seen as the right of the state and society over the individual. The state did not leave the taxpayer free to decide whether or not to pay zakat. It obliged him to collect it and spend it instead. Zakat, which every Muslim who met certain conditions was obliged to pay, was practiced in the Ottoman Empire as in other Muslim states. 

In the Ottoman Empire, the tribute was one of the taxes that mostly concerned non-Muslim subjects. As in Islamic tax law, in the Ottomans too, the kharaj was divided into two parts. These were called Haraç-i Muvazzaf and Haraç-i Mukassem. Since both of these two parts of kharaj were sharia taxes, it was not possible to determine the beginning of its first levy or its first collection. Haraj-i Muvazzaf was a fixed amount levied on land and had different names depending on the time and region. Some of these were taken almost as a fee for the land. 

According to Islamic tax law, Ashar, or Öşür, was a tax levied on agricultural crops by Muslims under certain conditions. In the Ottoman Empire, other terms were also used instead of the word "Öşür", which had emerged in recent times. Dimus, Ikta and Sâlariye were words of this kind that had become part of state life. Dimus was used in the Syrian registers, Ikta in the Iraqi registers and Sâlariye in the Anatolian and Rumelia registers. 

According to Islamic law, the jizya was the state's equivalent of zakat, which was closely related to the non-Muslim citizens (subjects) of the state. Because by binding the non-Muslim subjects to the jizya, a balance in the life of the state was ensured. In the eyes of Islam, Muslims and dhimmis (non-Muslim subjects of the state = ahl al-dhimma) were citizens of the state. They enjoyed the same rights and benefited from the opportunities of the state to the same extent. For this reason, in return for the zakat paid by Muslims, Ahl-i zimmet paid jizya.  The jizya, which was included in the Tekâlif-i Ser'iyye section of Ottoman tax law, constituted one of the most important sources of revenue for the finance. Being a Muslim state, the practice of jizya was initiated in the Ottoman Empire from the first years of its foundation. Protecting the rights of non-Muslims under the administration of the state, eliminating any harm that might come to them and imposing taxes in return for military service was a trivial matter. So much so that it would not be correct to define this as a significant and different treatment between Muslim and non-Muslim citizens. Indeed, the state not only protected all the rights of its subjects, the dhimmis, but also tried to eliminate any harm that might come to them. In fact, any injustice done to them or a crime committed against them was immediately punished in the most severe manner. As a matter of fact, in a decree dated November 26, 1567, sent to the Bey of Alacahisar, it was stated that four sipahs who had massacred three dhimmis in the mountains should be executed upon being found guilty. This document shows that criminals were punished according to their crimes regardless of their religion, race and nationality. This event, which seems very normal today, was not so easily practiced in the world of those centuries.

In the Ottoman Empire, all official surveys of the sultans regarding the jizya were based on the provisions and practices of the Shari'ah regarding the jizya. In the Ottoman Empire, the only people who were obliged to pay this tax were men who had reached the age of puberty (bulûğ) and were of sound mind and body. In addition, priests who lived on alms, those who were too ill to work and became poor, those who were younger or older than 14-75 years old, and women were exempt from jizya. As it can be understood from this, the jizya in the Ottomans was applied entirely according to the principles of Islamic law. Initially, the same amount of jizya was not collected in all regions of the state. In this period, the value and value of the money in circulation was not the same. For this reason, the amount of jizya could decrease or increase according to the fatwas issued and the regions. The most important fatwa that draws our attention in this regard is the fatwa of Sheikhulislam Ebussuud Efendi (1545-1574). When we look at this fatwa, we are informed about the social structure of the society, such as the measures of poverty and wealth of that period. As a matter of fact, he said, "A disbeliever who is capable of doing good deeds, but is not capable of two hundred dirhams-i shar'iyyah, that is a lowly person, twelve dirhams-i shar'iyyah will be taken. A disbeliever who is capable of two hundred dirhams-i shar'iyyah and who is capable of doing good deeds is an evsat model, twenty dirhams-i shar'î will be taken. Those who have ten thousand dirhams-i shar'iyyah are the 'a'la makules, their jizya-i shar'iyyah is forty dirhams-i shar'iyyah." 

Partly as a result of the socio-economic status of the society, but largely as a result of state leniency, the classification of the jizya taxpayer has always favored those who paid the least amount of jizya (the edna class) over the other classes. In Muslim states, the jizya payer could easily enjoy all human rights and obligations. As C.H. Becker points out in the article "Jizya" in the Encyclopedia of Islam, the taxpayers who paid the jizya entered into a contract with the Islamic state that granted them the right not only to tolerate their beliefs and rituals, but also to ask for protection, and it is possible to see many similar examples in the Ottoman Empire. As a matter of fact, we are in possession of a document showing the distribution of atiye and aid given by the state to Jews whose shops were burnt down in a fire in Edirne. In the Ottoman Empire, the jizya, which was collected for the treasury, was collected by different institutions in Muharram every year. This practice, which eliminated unity, sometimes put the state treasury into great difficulties. In order to remedy this situation, in 1101 (1689), Grand Vizier Köprülüzâde Fâzıl Mustafa Pasha, after consultation with the relevant authorities of the time, tied the collection of the jizya to certain principles and systems and ensured that the collection was carried out from a single source. After this, he had separate seals engraved for each of the three classes of dhimmis. He had them labeled as "a'la", "evsat" and "edna fakir". In order to distinguish these seals, and thus the taxpayers of jizya, from each other with clear and precise lines, different applications were made in both their shapes and writing characters. This means that this practice continued until the abolition of the jizya. In this practice, the colors of the jizyah stamps and the jizyah papers were also changed. The names of the year, class, jizya accountant, chief treasurer and jizya collector were also written on the papers. The practice of jizya in the Ottoman Empire continued until 1855 when the jizya was changed into a military fee. 

Customary taxes

In the Ottomans, in addition to the sharia taxes, there was another tax arising from basic needs and based on custom. This was considered in a separate category called customary taxes or tekâlif-i örfiye. The Ottoman Empire, like other states before it, had to determine and impose customary taxes due to the necessities such as feeding and equipping a large number of soldiers and keeping the navy ready for war. The wars were going on non-stop and the sharia taxes were far from meeting the costs imposed by this situation, forcing the state to impose such a tax. Therefore, in the last years of Bayezid II (1481-1512), the state tried to eliminate this problem by imposing a customary tax called "imdadiye-i seferiye". Apart from the sharia taxes, customary taxation had become a necessity for the state. This necessity compelled the state to maintain these customary taxes and to take necessary measures to ensure that their amount did not decrease. As a result of this necessity, the number and items of customary taxes were increased according to the determined needs. It has already been mentioned that such a practice was permitted. 

It is stated that the Ottomans did not have this second part of customary taxes, "sakka", which continued until the Tanzimat, and that such a tax was not levied on the subjects, but some taxes were mistaken for "sakka" due to their resemblance to it. Nevertheless, it is known that such taxes emerged from time to time, especially from the 17th century onwards. However, the sultans fought against this and sent "justice notices" to prevent such a practice. The collection of customary taxes was different from the collection of sharia taxes. Sharia taxes were generally reserved for the reaya, or more accurately, the peasants, who were the owners of agricultural crops. Although sharia taxes such as zakat and jizya were excluded from this rule, the peasant, who was more familiar with agricultural crops, was considered to be the payer of agricultural taxes such as eşür and kharaj. Customary taxes, on the other hand, were mostly imposed on urban dwellers, especially traders and those associated with markets. 

Since the customary tax system applied in the cities was based on trade and industrial activity, many taxes were included in this section. Likewise, unlike the sharia taxes, most of which were levied by the sipahis on behalf of the state, these were levied annually by the governor, trustees, voivodas, local elders and the qadi on the population or households of the town. Distribution books were drawn up according to the calculation of "Rûz-i Hızır" and "Rûz-i Kasım" to be collected in two installments per year. These books were recorded in the registry of the sharia courts. In these books, the entire amount of customary tax that had been decided to be collected from the people of a country was written down. This amount would be divided equally among individuals. A certified copy of these books would be given to the kethüda, the emin or special officials for collection. Taxpayers would fulfill their civic duties by paying their taxes in the form and amount covered by these books. Customary taxes, whose names and types changed according to time and region, became an indispensable financial aid for the treasury. 

The most important of these taxes was the tax called "imdadiye". This type of tax, which was divided into two parts as "imdadiye-i seferiye" and "imdadiye-i hazariye", was, as the name suggests, a tax item levied and collected in connection with campaigns and wars. It was a type of tax levied on citizens to cover the costs of war. This tax was imposed because the Ottoman Empire was faced with non-stop wars and the treasury could not bear the financial burden. Imdadiye tax, which was imposed in order to supply the money needed by the state treasury (beytü'l-mal), which became empty during the battles, and to ensure the equipping of the military, was sometimes sent to the treasury, and sometimes given directly to the serdar who was in charge of the army. This tax, the amount of which was increased or decreased by edicts depending on the situation and need, was recorded and collected in distribution books. This tax was levied not only on commoners such as tradesmen and merchants. According to the situation, statesmen also participated in this tax.

In the Ottoman Empire, one of the tax items falling under the category of customary taxes was a type of tax called "Avârız". This tax was a physical, financial and in-kind tax. This tax, also known as Avâriz-i divaniye, had emerged as a result of the distribution and apportionment of state expenses to the population of the country. Although it is a very old tax, it is not known exactly when it was introduced. However, we are aware of the existence of this tax in Anatolian principalities before the Ottomans thanks to some documents. Uzunçarşılı, who published these documents concerning tax exemption, states that a similar tax was also practiced in the Ottomans and says "The exemption procedures from taxes and duties, namely "avâriz-i divaniye" and "rüsûm-i örfiyye" in the Anatolian principalities were identical. If we compare the records of the Karamanoğulids with the Ottoman survey records in the section of documents on this matter, our opinion will become definitive." 

Lütfi Pasha notes that this tax was levied once every 4-5 years and that it was levied only once during the reign of Yavuz Sultan Selim (1512-1520). Sometimes, when the state realized that it could not meet its expenses from certain tax sources, it would decide to mobilize all the means of the country with some special measures, and according to this decision, it would determine the amount of money, services, goods and crops it needed and collect them as taxes distributed to various regions and localities.

One of the Ottoman customary taxes was called "fees". This tax was mostly collected from those who were employed by official offices. These fees, which were charged under different names, were collected in return for the judgments issued by judges, kadi, and judicial officers in the courts, the judgments recorded in the registers, the fatwas issued in writing by the office of the mashihat, the division of inheritance between the heirs of a deceased person, and transactions such as marriages.

Conclusion

The Ottomans had established a system in which military development and the utilization of financial resources were the main sources of sovereignty and wealth. Agriculture, which fed the subjects, was considered more important than production and trade. In contrast to the Ottoman Empire, the West, with its wealth-power-wealth equation, gave more importance to production and industry, while the Ottoman Empire preferred to prioritize agriculture. The Ottomans continued in the orbit of regional expansion, traditional monopoly, conservative land ownership and agriculture. 

Most cities in the Ottoman geography focused on one production area and were known for certain products. Konya was known for weaving, Tokat for coppersmithing, Amasya and Erzincan for silversmithing, Ankara and Kastamonu for soft fabrics, Bursa for silversmithing, Thessaloniki for çuhacılık, Edirne for shoemaking, Bulgaria for aba and hair weaving. The Ottoman Empire exported products such as cotton, wool, leather, oil, carpets and dyes, while importing ornaments, tin, lead, paper, velvet, glassware and watches from abroad, especially from Europe. 

The Ottomans had inherited a network of caravanserais in Anatolia from the Seljuk Empire that preceded it. It was in the Ottoman interests to ensure the safety of messengers and convoys and to develop merchant caravans. The caravanserai network was extended to the Balkans, and lodgings were built for merchants and livestock. The Ottomans successfully managed monetary policies in the lands they ruled for 600 years. However, in the last period of the empire, extravagance and extravagance dominated the way the state was governed. It was a fact that when a state's monetary policy was disrupted, all its balances were also disrupted. It was this reality that erased the Ottoman Empire from the stage of history.