Russia

When the great reformer came to the throne he found in his Tsardom, besides many workshops, some ten foundries, all of which were under orders "to cast cannons, bombs, and bullets, and to make arms for the service of the State." This seemed to him only a beginning, especially for the mining and iron industry, in which he was particularly interested. By importing foreign artificers and placing at their disposal big estates, with numerous serfs, in the districts where minerals were plentiful, and by carefully stipulating that these foreigners should teach his subjects well, and conceal from them none of the secrets of the craft, he created in the Ural a great iron industry, which still exists at the present day. Finding by experience that State mines and State ironworks were a heavy drain on his insufficiently replenished treasury, he transferred some of them to private persons, and this policy was followed occasionally by his successors. Hence the gigantic fortunes of the Demidofs and other families. The Shuvalovs, for example, in 1760 possessed, for the purpose of working their mines and ironworks, no less than 33,000 serfs and a corresponding amount of land. Unfortunately the concessions were generally given not to enterprising business-men, but to influential court-dignitaries, who confined their attention to squandering the revenues, and not a few of the mines and works reverted to the Government.

The army required not only arms and ammunition, but also uniforms and blankets. Great attention, therefore, was paid to the woollen industry from the reign of Peter downwards. In the time of Catherine there were already 120 cloth factories, but they were on a very small scale, according to modern conceptions. Ten factories in Moscow, for example, had amongst them only 104 looms, 130 workers, and a yearly output for 200,000 roubles.

While thus largely influenced in its economic policy by military considerations, the Government did not entirely neglect other branches of manufacturing industry. Ever since Russia had pretensions to being a civilised power its rulers have always been inclined to pay more attention to the ornamental than the useful—to the varnish rather than the framework of civilisation—and we need not therefore be surprised to find that long before the native industry could supply the materials required for the ordinary wants of humble life, attempts were made to produce such things as Gobelin tapestries. I mention this merely as an illustration of a characteristic trait of the national character, the influence of which may be found in many other spheres of official activity.

If Russia did not attain the industrial level of Western Europe, it was not from want of ambition and effort on the part of the rulers. They worked hard, if not always wisely, for this end. Manufacturers were exempted from rates and taxes, and even from military service, and some of them, as I have said, received large estates from the Crown on the understanding that the serfs should be employed as workmen. At the same time they were protected from foreign competition by prohibitive tariffs. In a word, the manufacturing industry was nursed and fostered in a way to satisfy the most thorough-going protectionist, especially those branches which worked up native raw material such as ores, flax, hemp, wool, and tallow. Occasionally the official interference and anxiety to protect public interests went further than the manufacturers desired. On more than one occasion the authorities fixed the price of certain kinds of manufactured goods, and in 1754 the Senate, being anxious to protect the population from fires, ordered all glass and iron works within a radius of 200 versts around Moscow to be destroyed! In spite of such obstacles, the manufacturing industry as a whole made considerable progress. Between 1729 and 1762 the number of establishments officially recognised as factories rose from 26 to 335.