From another point of view, the fact that foreigners living in the Ottoman Empire are exempt from taxation, in accordance with the capitulations, makes it impossible for the Sublime Porte to procure the indispensable means for the carrying out, not only of the reforms but of its everyday needs.
The impossibility of increasing the indirect taxation is bringing about the increase of direct taxes, and therefore makes the burden on the Ottoman tax-payers all the heavier. The fact that foreigners who enjoy in the Ottoman Empire every protection and every privilege as well as freedom in their business transactions are exempt from taxation constitutes in itself an intolerable injustice and creates at the same time a situation detrimental to the independence and prestige of the Government. While the Imperial Government was firm in its resolution to continue its efforts regarding the reforms, the general war broke and increased the financial difficulties of the country in such a degree that all the innovations and all the reforms which have been decided upon and actually begun are threatened to remain without effect.

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