According to some historical records...
According to some historical records, the number of those residents reached four hundred. They formed part of the army of the Prophet during war time, stood in rows behind him whenever he led the congregational prayers, sat under his pulpit whenever he delivered sermons and conveyed his orders to other Muslims as needed. The Messenger of Allah used to gradually help them get married and get them to acquire housing and means of earning a living and the like.
People sensed the bliss of Islam, so they remained on its path. Medina enjoyed a measure of prosperity which no other areas of the Arabian Peninsula had ever known before, nor did the world ever before come to know a government such as that. Chosroe and Caesar's governments and the like were distant from people, arrogant towards them, not mixing with them.
They used to levy huge taxes, rule the people as despots, plundering their wealth, causing poverty, diseases, ignorance and chaos prevailed in their lands. However, the government ruling Medina and its suburbs was an ideal one. Although historians have documented the events taking place during the Prophet's time, we never heard about crimes or disputes except rarely.
The role model of the Prophet was present in people's minds, and they used to emulate it; so, there was no need for a police force or an executive power, usury, monopoly, or taxes other than zak"t152 or jizya153 or khir"j154. Everything went very well; therefore, we do not find in the history of Medina that there were complaints about chaos or the absence of law and order.
His Government The Islamic legislative system benefits everyone and equates everyone, giving the nation true power, peace of mind, stability, firmness and progress. People's belief in lofty Islamic ideals, represented in the person of the Prophet, prevailed on everything.
It is obvious that in such an environment, personal problems and disputes are minimized, and people are overwhelmed by the spirit of togetherness, adopting the trend of giving, generosity, avoiding falling into 152 Zak"t is the generic term for the tax Muslims pay under the Islamic government, and it consists of two categories, the Zak"t that is levied on certain categories of goods, and Khums that is levied on annual income surplus.
153 Jizya is the tax the non-Muslims pay under the Islamic government. 154 Khir"j is the income the gets government from land letting.