Cyprus, as I Saw It in 1879 Part 24

Revenue from Salt.

A considerable revenue was derived from the Government monopoly of the salt lakes in the neighbourhood of Larnaca and Limasol. The salt was sold for local consumption and for exportation to the coast of Syria, but an injudicious increase to the selling price, with short weights and increased cost of shipment, diverted the supply of the Syrian demand from Cyprus to the salt lakes of Tunis, and gradually reduced the revenue from this source. Owing to the excessive rains of last year, and the influx of more fresh water into the lakes than could be evaporated by the sun's rays during the summer, the lakes are at present unproductive. But in the earlier months of the current year, under Turkish administration, the sum of 1,756,840 piastres was recovered and credited in the Treasury on account of previous salt dues, and that amount is accordingly entered on the estimate with its English equivalent of 15,145 pounds. No other receipts are expected in the current year, and the revenue from salt has practically ceased. A considerable outlay will be required to repair and secure the salt lakes against the irruption of the drainage of the surrounding country.

The past revenue from salt should be excluded from the computation of the payment to be made to the Porte from the surplus revenues of Cyprus, under Article III of the Convention of 4th June, 1878.

To sum up. Having regard to the revenue arrangements concluded before arrival of the British in Cyprus, to the realisations in the first four months of the current year under Turkish administration, and to the altered conditions under which the finance of the remainder of the year has to be administered, I am of opinion that the revenue may be safely estimated at 170,000 pounds, as below:--

Pounds t.i.thes on land . . . . . . . . . . . . . . . . . . . . . 72,000 Tax on property, professions, and trades . . . . . . . . 22,000 Tax on sheep . . . . . . . . . . . . . . . . . . . . . . 11,000 Tax for exemption from military service. . . . . . . . . 9,000 Customs duties . . . . . . . . . . . . . . . . . . . . . 13,400 Excise on tobacco and spirits . . . . . . . . . . . . . 16,850 Salt monopoly . . . . . . . . . . . . . . . . . . . . . 15,145 Miscellaneous . . . . . . . . . . . . . . . . . . . . . 10,605 Total . . . . . . . . . . . . . . . . . . . . . . . . . 170,000

In future years even though the revenue from the salt monopoly be entirely lost, we may confidently hope for such an expansion of the revenue from land*, (*footnote: The island of Cyprus is 140 miles bang from east to West, with an average breadth of 30 miles. This gives an area of 4,200 square miles, or 2,688,000 acres. a.s.suming even 1,500,000 acres to be culturable, with an average rental of 2 shillings an acre, the should have a revenue from this source alone of 150,000 pounds a year.) from houses, from customs and excise duties, as will ensure a total income of more than 200,000 pounds a year.

Expenditure of Cyprus.

The estimate of expenditure is based upon the actual cost of the Turkish and native establishments now maintained, and the cost of the new agencies created by the change of administration. The account of expenditure rendered by the Ottoman Government for the past five years gives an annual average of about 24,000 pounds a year. Deducting from this rate the pay of officials and subordinate establishments no longer retained, also pensions and charitable allowances, and the cost for six months of the old Zaphtieh or police force (the corresponding charge for the reformed police force being added to the estimated cost of British establishments), the balance of 1,972,000 piastres, or 17,000 pounds, may be accepted as a fair estimate of the charges for native establishments in the island during the current official year. The charges for British establishments are estimated at 35,000 pounds, and they include expenses, incidental to the occupation of a new country, that are not likely to recur. It will be possible, in the future, to reduce the scale of charges for British and native establishments, as further experience is gained, and the entire machinery of the executive administration is brought under effective control.

The estimated expenditure for Native and British establishments may be broadly divided under the following heads:--

Central Administration- Including pay of the Turkish Governor for part of the year, and of the British High Commissioner, Financial and Judicial Commissioners, and High Court for remainder of the year . . . . . . . . . . . . . . . . . . 12,400

District Administration-- Including British Commissioners of District, Native and British Establishments . . . . . . . 13,500 Military Police . . . . . . . . . . . . . . . . 16,500 Customs and Excise Establishment . . . . . . . 5,000 Prisons . . . . . . . . . . . . . . . . . . . . 3,000 Miscellaneous . . . . . . . . . . . . . . . . . 1,600 -------- 52,000

The expenditure of the current year being estimated at 52,000 Pounds, and the revenue at 170,000 Pounds, the resulting surplus will be 118,000 pounds. An examination of the accounts of Cyprus, for the five years preceding the British occupation, enables me to affirm that the average surplus of revenue over expenditure in that period was less than 100,000 Pounds per annum. The future yearly contribution to the Ottoman Government from the surplus revenues of Cyprus, under the Convention of the 4th June, 1878, will not, therefore, exceed, and may fall short of, the sum of 100,000 Pounds. Nearly one half of this claim for the current year was taken by the Turks from surplus revenue before our arrival. We shall easily make up the balance from the revenue now in course of collection. And, under ordinary conditions, the current revenue will not only cover the annual payment to the Porte and the expenses of administration, but also provide a fair outlay for roads and sanitary improvements.

(Signed)

GEO. W. KELLNER, Financial Commissioner of Cyprus.

NICOSIA, CYPRUS, September 25, 1878.

ESTIMATE OF REVENUE AND EXPENDITURE FOR THE YEAR 1878-79

----------------------------------------------------------------------- |No| Revenue | Amount|No| Expenditure |Amount | ----------------------------------------------------------------------- | | | _L_ | | | _L_ | | 1| Dimes or t.i.thes on pro-| |1 |Pay of the Turkish Go-| | | | duce of land . . . . | 72,000| |vernor of Cyprus for | | | | | | |part of the year, and | | | | | | |of the British High | | | | | | |Commisioner for | | | | | | |remainder of the year;| | | | | | |also Secretarial | | | | | | |Establishments for the| | | | | | |entire year. | 9,000| | | | | | | | | 2| Verghis, or tax upon | |2 |Finance and Accounts | | | | property, professions | | |Establishments . . . | 1,400| | | and trades . . . . . . | 22,000| | | | | | | | | | | | 3|Tax for exemption from | | | | | | |Military Service. . . . | 9,000 |3 |Law and Justice, | | | | | | |including Insular High| | | | | | |Court . . . . . . . . | 2,000| | | | | | | | | 4|Sheep tax . . . . . . . | 11,000|4 |Administrative Estab- | | | | | | |lishments of the six | | | | | | |districts of Cyprus, | | | | | | |including cost of col-| | | | | | |lection of district | | | | | | |revenues, establish- | | | | | | |ments of district | | | | | | |Judicial Courts, &c. .| 13,500| | | | | | | | | 5|customs Duties . . . . .| 13,400|5 |Cost of Prisons . . . | 3,000| | | | | | | | | 6|Excise on Tobacco and | |6 |Cost of Military | | | |Spirits . . . . . . . . | 16,850| |Police Force . . . . .| 16,500| | | | | | | | | 7|Salt Monopoly . . . . . | 15,145|7 |Customs and Excise | | | | | | |Establishments . . . .| 5,000| | | | | | | | | 8|Miscellaneous, including| |8 |Miscellaneous, | | | |tax on sale and transfer| | |including Educational | | | |of landed property, on | | |Establishments . . . .| 1,600| | |measurements, on con- | | | |_______| | |tracts, judicial fees | | | | | | |and fines, &c . . . . . | 10,605| | | | | | | | | | | | | | | | Total of Estimated| | | | | | | Expenditure . . . | 52,000| | | | | | | | | | | | | Surplus . . . . . |118,000| | | Grand total Estimated|_______| | | | | | Revenue . . . . . . .|170,000| | Grand total . . . |170,000| |__|________________________|_______|__|______________________|_______|

DETAIL ESTIMATE OF EXPENDITURE FOR BRITISH AND NATIVE ESTABLISHMENTS IN CYPRUS FOR 1878-79,

British Establishments.

L. s. d.

Cost of the Nicosia Division . . . . . . . . . . . . . 1,844 12 0 Cost of other five divisions of Cyprus, viz., Larnaca, Famagousta, Limasol, Papho, and Kyrenia . . . 7,000 0 0 Financial Commissioner . . . . . . . . . . . . . . . . 666 0 0 Judicial ditto . . . . . . . . . . . . . . . . . . . 600 0 0 Judicial Clerk, and contingencies . . . . . . . . . . 200 0 0 Interpreter of High Court . . . . . . . . . . . . . . 240 0 0 Director of Customs . . . . . . . . . . . . . . . . . 510 0 0 Customs and Excise Establishments . . . . . . . . . . 5,000 0 0 High Commissioner and office establishments, travelling expenses, including furniture, 400L. . . . 5,700 0 0 Travelling allowances for High Commissioner . . . . . 300 0 0 Re-organised Police Force for the Island of Cyprus, including pay, rations, and clothing . . . . . . . . . 11,000 0 0

Temporary translators to be hereafter absorbed in Civil Establishments and contingencies in connection therewith . . . . . . . . . . . . . . . . . 1,340 0 0 Miscellaneous . . . . . . . . . . . . . . . . . . . . . 600 0 0 ------------ 35,000 0 0

Native Establishments.

Add. Piastres.

Expenses of Turkish Establishment 2,609,549

Deduct.

Pay of Mutessarif for six months, 60,000 piastres; Zaphtiehs for six months, 500,000 piastres; Pensioners and correspondence &c. . . . . . . . . 637,549 ------------- 1,972,000 17,000 0 0

Total cost of British and Native Civil Establishments in Cyprus . . . . . . . . . . . . . . . . . . . . . . . 52,000 0 0

ESTIMATES OF REVENUE AND EXPENDITURE IN CYPRUS FOR 1879-80.

ESTIMATE OF REVENUE, 1879-80

Nature of Revenue. Estimate, 1879-80.

Piastres L t.i.thes 8,640,000 Verghis 3,400,000 Military exemption 1,080,000 Sheep tax 1,220,000 Miscellaneous 2,000,000 Customs 2,800,000 Excise 2,128,000 --------------------------- Total 21,268,000 == 177,233

ESTIMATE OF EXPENDITURE, 1879-80.

Designation. Annual Cost L s. d. L s. d.

ESTABLISHMENTS OF THE CENTRAL ADMINISTRATION.

The High Commissioner, Executive and Legislative Councils 11,106 17 0 The Department of Finance and Accounts 2,127 0 0 The Department of Law and Justice 4,985 12 0

DISTRICT ESTABLISHMENTS.

The District of Nicosia 4,453 8 0 " Larnaca 4,585 3 0 " Famagousta 3,035 8 0 " Limasol 3,306 4 0 " Papho 2,959 0 0 " Kyrenia 2,131 0 0

Customs and Excise 4,636 18 0 Police 23,241 14 0 Prisons 2,583 17 0 Miscellaneous 1,000 0 0 Expenses of collection of taxes. .h.i.therto sold to tax-farmers 5,000 0 0 -------------- Total of Establishments. 75,152 1 0

Payment under agreement with the Porte (about) 96,000 0 0 Interest on money borrowed for Public Works, shown in the annexed Schedule, say 1,200 0 0 Expenses of the Survey 1,990 0 0 ---------------- Total Expenditure 174,342 1 0

APPENDIX.

SCHEDULES.

ROUGH DETAIL OF THE ROADS TO BE CONSTRUCTED IN THE FINANCIAL YEAR 1879-80.

From Nicosia to cut through the fortifications at the Papho Gate, making a raised causeway over ditch and a road connecting it with the Government Office at the High Commissioner's residence, and with the main road from Nicosia to Larnaca, about 2 1/2 miles 800 From Nicosia to Kyrenia, about 16 miles 1,100*

From Va.s.silia to Hai Grosch (Kyrenia district), about 22 miles 1,600*

From Larnaca to Limasol, about 40 miles 6,000*

From Limasol to Papho, about 39 miles 5,000& Chrysokou to Levka, about 32 miles 5,000& Nicosia to Famagousta, about 35 miles 4,000^ Famagousta to Trich.o.m.o, about 15 miles 1,000^ To improve the tracks between Trich.o.m.o and Carpas, 35 miles 2,700^ Rebuild culverts on Larnaca-Famagousta road 200^ Improving country roads in Larnaca district 900^ Gap in Mountain road from Larnaca to Messaria, to make it practicable for carts 100^ ------- Total 28,400 *Not finished for carts. &Not commenced.

^Most of these have not been commenced, August 1879.

ROUGH DETAIL OF NEW BUILDINGS TO BE CONSTRUCTED IN THE FINANCIAL YEAR 1879-80.