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Great Eastern Crisis (1875–78)


The Great Eastern Crisis of 1875–78 (Serbo-Croatian: Velika istočna kriza; Turkish: Şark Buhranı ("Eastern Crisis", for the crisis in general), Ramazan Kararnamesi ("Decree of Ramadan", for the sovereign default declared on 30 October 1875) and 93 Harbi ("War of 93", for the wars on the Balkan peninsula between 1877–78, referring in particular to the Russo-Turkish War, the year 1293 on the Islamic Rumi calendar corresponding to the year 1877 on the Gregorian calendar)) began in the Ottoman Empire's territories on the Balkan peninsula in 1875, with the outbreak of several uprisings and wars that resulted in the meddling of international powers, and was ended with the Treaty of Berlin in July 1878.

The state of Ottoman administration in the Balkans continued to deteriorate throughout the 19th century, with the central government occasionally losing control over whole provinces. Reforms imposed by European powers did little to improve the conditions of the Christian population, while at the same time managing to dissatisfy a sizable portion of the Muslim population. Bosnia suffered at least two waves of rebellion by the local Muslim population, the most recent in 1850. Austria consolidated after the turmoil of the first half of the century and sought to reinvigorate its longstanding policy of expansion at the expense of the Ottoman Empire. Meanwhile, the nominally autonomous, de facto independent principalities of Serbia and Montenegro also sought to expand into regions inhabited by their compatriots. Nationalist and irredentist sentiments were strong and were encouraged by Russia and her agents.

On 24 August 1854, during the Crimean War, the Ottoman Empire took its first foreign loans. The empire entered into subsequent loans, partly to finance the construction of railways and telegraph lines, and partly to finance deficits between revenues and the lavish expenditures of the imperial court, such as the construction of new palaces on the Bosphorus strait in Constantinople. Some financial commentators have noted that the terms of these loans were exceptionally favourable to the British and French banks (owned by the Rothschild family) which facilitated them, whereas others have noted that the terms reflected the imperial administration's willingness to constantly refinance its debts. A large amount of money was also spent for building new ships for the Ottoman Navy during the reign of Sultan Abdülaziz (r. 1861–1876). In 1875, the Ottoman Navy had 21 battleships and 173 warships of other types, which formed the third largest naval fleet in the world after those of the British and French navies. All of these expenditures, however, put a huge strain on the Ottoman treasury. In the meantime, a severe drought in Anatolia in 1873 and flooding in 1874 caused famine and widespread discontent in the heart of the empire. The agricultural shortages precluded the collection of necessary taxes, which forced the Ottoman government to declare a sovereign default on its foreign loan repayments on 30 October 1875 and increase taxes in all of its provinces, including the Balkans.


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