In imitation of the grades of office in the Russian armies, Schamyl established a difference of rank among his own chieftains. Three of his most eminent partisans received titles corresponding to those of generals; and a number of his murids, especially the chiefs of the murtosigators, were made captains. At the same time these high officers were distinguished by decorations after the European fashion. The generals were authorized to wear on each breast stars of silver; the captains had silver plates of an oval form; and the chiefs of the guard who had distinguished themselves by acts of extraordinary heroism were presented with medals bearing complimentary inscriptions in the Arabic character. There were also various other rewards of military merit established, such as epaulettes of beaten silver, daggers with silver hilts, and ensigns decorated with fine needle-work. And to correspond with these marks of honorable distinction were instituted badges of disgrace, such as the patch sewed on the back, and the rag tied around the right arm. Finally, a system of military punishments was introduced, comprising various fines, imprisonment, and death.
For a revenue Schamyl does not depend, like his predecessors, on the fifth of the booty taken from the enemy, and the fines imposed for violations of the scharyat, but has introduced a regular system of taxation. A poll-tax to the amount of a silver rouble, or its value in kind, is levied on every family; one tenth of the produce of the land goes into the public treasury; the property of every person dying without direct heirs, falls to the government; and the wealth accumulated in the mosques and shrines, consisting of the gifts of the pious, has been applied to the uses of the State, the mollahs receiving regular pay in exchange, and the wandering dervishes, who lived on voluntary contributions, having either been incorporated into the army or driven out of the country. Economical in the use of his revenues and living himself in a style of simplicity scarcely superior to that of his comrades in arms, the Imam has accumulated considerable funds, and is known to have deposited in secret places in the woods of Andi and Itchkeria treasures of gold, precious stones, and various valuables. The sinews of his war are not indeed gold and silver, but love of freedom and hatred of the infidel; still he understand as well as the rulers of countries more civilized, that riches are a strong ally; and moreover he can neither issue paper-money nor live by borrowing. But while he has wisely laid up in store for the conduct of the war and the upholding of his government whatever could be saved by frugal and simple living, he has always dealt out with a liberal hand the means necessary for rewarding acts of extraordinary valor or self sacrifice, for making converts to the faith of the Sufis, or for winning over to his side a hostile tribe or chieftain.