'IRAQ AND THE PERSIAN GULF' [‎309r] (620/862)

CURRENCY
479
Currency in Circulation in I.D.s
31 Dec.
1933 •
. 2,898,363
31 Mar.
1939 •
4,773,297
»
1934 •
• 3 . 429 , 36 s
>>
1940 .
6,183,293
1935 •
• 3 , 794,320
>>
1941 .
6,623,291
»
1936 .
. 4,641,312
>>
1942 •
. c.
22,000,000
>>
31 Mar.
1937 •
• 5,003,312
>>
1943 •
. c.
25,000,000
1938 .
• 4,838,300
31 Dec.
1943 •
. c.
34,000,000
PUBLIC FINANCE
In Ottoman days Iraq was probably an expense rather than an asset
to the Government in Constantinople, although with the very com
plicated system of public finance in force it is hardly possible to say
on which side the balance really fell. The principal taxes were
farmed out to tax-collectors, who were expected to hand over fixed
amounts and were permitted to retain for themselves any surplus
they could wring out of the taxpayers. It was a profitable pastime
in some areas, but dangerous and unprofitable in others.
Tax farming, known as iltizam, had a long history in the Ottoman
dominions. It was based broadly on a system of tithes, which was
generally understood and unquestioned, but in practice the tithe
was much modified, and demands would often vary widely and
inexplicably. The assessment of the value of agricultural produce
was more difficult in Iraq than elsewhere for four reasons: {a) lack
of exact and local knowledge on the part of the taxing authority,
since most of the country was unsurveyed; (b) the structure of society
was unfavourable, since marketing conditions varied widely, trade
followed no settled channels, and account books were rarely kept by
traders; (c) the agricultural public was unwilling or unable to co
operate with the administrative authorities; and (d) the officials were
often ill-educated, lazy, and corrupt, with the result that they pre
ferred to pass on the difficulties of assessment to others, at a price.
The British authorities at once took steps to bring order out of
this chaos. To begin with, the allocation of taxes which had hitherto
been the concern of five different departments, each responsible to
the central government in Constantinople, was centralized in one,
a newly created Revenue Department. Its tasks were to suppress the
tax-farmer and to fix a definite rate of taxation which did not fluctuate
with market prices. These goals, though steadily kept in view, were
not attained immediately.
Reforms were begun long before the whole of Iraq was occupied,
but it was not until the financial year 1919/1920 that the Mosul vilayet
was included, so that until that year the financial administration