with the main theme of supporting the independence of the Ottomans' former provinces and then bringing all of the Slav peoples of the Balkans under Bulgaria or using Armenians in the east sets the stage. At the end of the century, from the Russian perspective, Romania, Serbia, and Montenegro and the autonomy of Bulgaria were achieved. That alarmed the Great Powers. After the Congress of Berlin, the Russian expansion was controlled by stopping the expansion of Bulgaria. The Russian public felt that at the end of Congress of Berlin thousands of Russian soldiers had died for nothing. The military of the Ottoman Empire remained an effective fighting force until the second half of the eighteenth century when it suffered a catastrophic defeat against Russia in the 1768-74 war. Selim III came to the throne with an ambitious effort for military reforms in 1789. He failed and was replaced by Mahmud II in 1808 who established martial law through Alemdar Mustafa Pasha. At first, he allied with the Janissaries to break the power of the provincial governors and then turned on the Janissaries and removed them altogether during the 1826 Auspicious Incident. Efforts for a new system (1826–1858) began following the Auspicious incident. Economic historian Paul Bairoch argues that free trade contributed to deindustrialization in the Ottoman Empire. In contrast to the protectionism of China, Japan, and Spain, the Ottoman Empire had a liberal trade policy, open to foreign imports. This policy had its origins in the capitulations of the Ottoman Empire, dating back to the first commercial treaties signed with France in 1536 and taken further with capitulations in 1673 and 1740, which lowered duties to 3% for imports and exports. The liberal Ottoman policies were praised by British economists such as John Ramsay McCulloch in his Dictionary of Commerce (1834), but later criticized by British politicians such as Prime Minister Benjamin Disraeli, who cited the Ottoman Empire as "an instance of the injury done by unrestrained competition" in the 1846 Corn Laws debate: The Ottoman public debt loomed large during this period. The Empire had previously not taken foreign loans. But with the demands of the Crimean War, the Empire took its first loans in 1854. The public debt quickly ballooned, becoming larger than any other European nation's. The Panic of 1873 depressed the economy, and was followed by poor harvests. The Ottomans found themselves unable to repay the