then reached its apogee. After the long wars of the French empire the agriculture of Europe was in a very depressed condition, and it was necessary to have recourse to Russia for the corn which other countries could not raise in sufficient quantity for their own subsistence. Odessa thus became, under the wise administration of the Duc de Richelieu, one of the most active commercial cities of eastern Europe; its population increased prodigiously; the habits induced by prosperity gave a new stimulus to its import trade, and every year hundreds of vessels entered its port to take in agricultural freights of all kinds.
Dazzled by this commercial prosperity, till then unexampled in Russia, and, doubtless believing it unalterably established, the government then chose to return to its prohibitive system, and, whether through ignorance or incapacity, the ministry deliberately ruined with their own hands the commercial wealth of Southern Russia. In 1822, at the moment when it was least expected, an ukase suppressed the freedom of the port of Odessa, and made it obligatory on the merchants to pay the duties on all goods then in the warehouses. This excited intense alarm, and as it was totally impossible to pay immediately such enormous duties as those imposed by the general tariff of the empire, the merchants remonstrated earnestly and threatened, all of them, to commit bankruptcy. The governor of the town, dismayed at the disasters which the enforcement of the law would occasion, took it on his own responsibility to delay; and commissioners were sent to St. Petersburg to acquaint the emperor with the state of commerce in Odessa. Alexander, whose intentions were always excellent, and who had no doubt been deceived by false reports, promptly annulled the ukase. The freedom of the port of Odessa was therefore re-established, but not to the same extent as before. Concessions were made to the board of customs, a fifth of the duties exacted in other Russian ports was imposed on goods entering Odessa, and the other four-fifths were to be paid on their departure for the interior. The limits of the free port were also considerably reduced, and two lines of custom-houses were formed, the one round the port, the other round the town. These lines still subsist.
The victories of the board of customs did not stop here, and new measures, suggested and supported no doubt by fraud, were put in force. We have spoken of the free transit traffic through the towns of Doubassar, Radzivilov, and Odessa. This traffic was increasing rapidly; all the merchants of western Asia were beginning to take the Odessa route to make their purchases in the great fairs of Germany. There was every probability that Odessa would be one of the principal points of arrival and exchange for all the produce of Europe and Asia. The Transcaucasian provinces enjoyed very extensive commercial freedom at this period by virtue of an ukase promulgated, October 20, 1821. Redoutkalé, at the mouth of the Phasis, on the shores of Mingrelia, was then the port to which all the goods from Leipsic were conveyed by sea; from thence they passed to Tiflis and Erivan, and were then distributed over all the adjacent countries, through Turkey, Armenia, and even as far as Persia. The Armenians had secured this traffic almost exclusively to themselves. They appeared for the first time in Odessa in 1823. The next year they advanced as far as Leipsic, where they bought European manufactures to the amount of more than 600,000 francs; in 1825 their purchases rose to 1,200,000 francs, and in 1826 to 2,800,000. All these goods were conveyed by land to Odessa, and there embarked on the Black Sea for Redoutkaleh. It may easily be conceived what a happy influence such a traffic would have exercised over the agriculture and cattle rearing of Southern Russia, and eventually on the prosperity of the population engaged in this carrying trade. But all these promising elements of prosperity were to be annihilated by the narrow views of the minister of finance. The commercial franchise of the Caucasian provinces, after having lasted for ten years, was suddenly suppressed on the first of January, 1832. The most rigorous prohibitive system was put in force; Tiflis, the capital of Georgia, more than 220 miles from the Black Sea, was made the centre of the customs administration, and all goods destined for that part of Asia had to pass through that town to be examined there and pay duty.
By these arbitrary and exclusive measures, the government thought to encourage native manufactures; and by prohibiting the goods of Germany, France, and England, it hoped to force the productions of Russia on the trans-Caucasian provinces. The transit trade was, of course, proscribed at the same period. By a first ukase, the merchants were forced to deposit at the frontier in Radzivilof, double the value of their goods, and the money was only to be returned to them at Odessa, upon verification of their bales. It is obviously not to be thought of that merchants, however wealthy, should carry with them, in addition to the capital to be expended on their purchases, double the value of their goods in transitu. This new measure, therefore, was sufficient of itself alone to put an entire stop to the transit trade. The Persians and Armenians forsook this route, and chose another, to the great detriment of Russia. At present the value of the transit is from 180,000 to 200,000 francs, the goods being chiefly yellow amber, sent from Prussia to Turkey. For a charge of fifteen francs per twenty kilogrammes, the Jews undertake to give security to the customs in title-deeds, which they hire at the rate of five or six per cent., and they despatch the goods directly to Odessa.
England, always so prompt to seize opportunities, took advantage of the blunders of Russia. She secured a position in Trebizond, and her merchants, recoiling from no sacrifice, formed there an immense entrepôt, from which they soon sent out the manufactures of their country into all the provinces of Asia. Business to the amount of more than 2,000,000l. sterling, is now carried on in Trebizond, and two sets of steamboats ply between it and Constantinople.
Thus Russia lost one of the most important commercial lines in the world, and by her extravagant increase of duties she completely extinguished the lawful import trade of the Caucasian provinces. But English and other foreign goods still find their way there by contraband, and the government officers are themselves the first to profit by this system; for they are still more desirous than the native inhabitants to procure manufactured goods, and, above all, at a moderate price. The prohibitive measures of Russia have, therefore, really recoiled on the government itself, and the treasury loses considerably by them, not only in the Caucasus, but also on the European frontiers. Owing to the freedom of its port, the town of Odessa, of course, suffers less from the disastrous effects of this prohibitive system, and finds some commercial resources in its own consumption, and in that of its environs. Nevertheless, as this consumption, (which notwithstanding the contraband trade is kept in full vigour by the Jews, and even by the highest classes,) is out of all proportion to the exportation, and as there is very little exchange traffic, foreign vessels are gradually deserting the Black Sea; and, besides this, their charges for freight are necessarily too high, in consequence of their being obliged in almost every instance to repair in ballast to the harbours of South Russia. Then we must take into account the remoteness of the Black Sea; the dread, not yet quite effaced, with which it is regarded; the impossibility of finding freights anywhere except in Odessa; the excessive severity of the winter, and the usual obstructions of the harbours by ice during three or four months every year. All these things combine to repel mariners; so that nothing, except extraordinary cheapness and great profits, could induce merchants to send their vessels for freight to the ports of Southern Russia.
Thus driven away by the prohibitive system of Russia, many nations are seeking to establish markets for their productions elsewhere. It is also to be remarked that agriculture has made very great progress in Europe since the re-establishment of peace; and consequently the exportation of corn from Russia has considerably diminished. Nevertheless, we are of opinion that Southern Russia would have lost little of its agricultural importance, notwithstanding its system of customs, if the government, instead of remaining stationary, had sincerely entered on a course of improvement.
All circumstances seem to combine in New Russia to make the productions of the soil as economical as possible, and to enable them to compete successfully with those of all other countries. The soil is virgin and very abundant; labour is cheap and the price of cattle extraordinarily low; whilst serfdom, by obliging thousands of men to employ at least half their time for the benefit of their lords, ought naturally to tend to diminish the price of bread stuffs. Unfortunately the means of communication have been totally neglected, and the government has taken no steps to facilitate transport; in consequence of this the price of grain, instead of falling is constantly increasing, and merchants are no longer willing to purchase except in seasons of scarcity.
