Ottoman arms met with almost systematic reverses; both the ordinary and the reserve treasuries were depleted; a proposal to contract a foreign loan (1783) came to nothing, and the public debt (duyun-i-usnumiye) was created by the capitalization of certain revenues in the form of interest bearing bonds (sehims) issued to Ottoman subjects against money lent by them to the state (1785).
In 1888 it was proposed by the public debt administration to undertake the collection of specified revenues to be set aside for the provision of railway guarantees, the principle to be followed being, generally, that such revenues should consist of the tithes of the districts through which the railways would pass, and that the public debt should hand over to guaranteed railway companies the amounts of their guarantees before transmitting to the imperial government any of the proceeds of the revenue so collected.
The serious feature of the situation lay less in the income than in the intangible expenditure, namely, the vast sums required for interest on the various forms of public debt and for pensions.
At the same time it was granted an extension of penal powers, and the losses on reftieh (duty on tobacco exported to Egypt) were to be partially borne by the public debt administration.
As finance minister in the Rattazzi cabinet of that year he had been confronted with a public debt of nearly 120,000,000, and with an immediate deficit of nearly 18,000,000.
Under the auspices of the Ottoman public debt administration silk culture is also carried on with much success, especially in the vilayets of Brusa and Ismid.
In 1891 he was obliged to suspend the service of the public debt and make arrangements by which the bondholders accepted a reduced rate of interest.
It can overspend and rack up public debt and destroy the currency.
The public debt of Venezuela dates back to the War of Independence, when loans were raised in Europe for account of the united colonies of Colombia, Ecuador and Venezuela.
The ceded revenues administered directly by the public debt council have shown remarkable expansion, and may be fairly looked upon as exemplifying what would occur in the general revenues of the empire when good and honest administration and regular payment of officials finally took the place of the carelessness, corruption and irregularity which existed up to the change of regime.