The state banks, already hampered by maladministration, were encumbered by huge quantities of real estate which had been taken over as compensation for unredeemed mortgages.
Guchkov attacked the maladministration in the navy, pointing out that no reforms were possible so long as grand-dukes were at the head of its departments.
To the difficulties caused by disaster, depopulation and maladministration there was added the danger of foreign invasion when war broke out in Europe between Francis I.
The first was the chaotic confusion of the finances resulting from the maladministration of the national resources since the deposition of Dom Pedro II., and the corruption that had crept into every branch of the public service.
The heavy cost involved in the suppression of internal disorders, maladministration,and the hindrances placed in the way of economical development by the semi-independence of the federal Salles.