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. The wheat sent to Odessa from Khivia, Volhynia, Podolia, and Bessarabia, arrives in carts drawn by oxen. The journeys are tedious, the extreme rate of travelling being not more than fifteen miles a day; and they are costly, for the carriage of a tchetvert or seven bushels of corn varies from four to six rubles; moreover, the transport can only be effected between May and September in consequence of the deplorable state of the roads during the other seven months of the year. The result of all this is that wheat, though very cheap in the provinces we have mentioned, is quoted at very high prices comparatively at Odessa, so as not to leave foreign speculators a sufficient profit to compensate for the length of the voyage to the Black Sea, the outlay of capital, and the enormous expenses caused by the quarantines to which many goods are subject. Besides this, Odessa is the only port that offers any facilities for commerce; Kherson situated in the midst of a fertile and productive region, is only a harbour of export, and its commerce cannot possibly extend; for the ships destined to take in freight at that port must previously perform quarantine in Odessa. All the landowners are therefore forced to send their produce to Odessa, if they would have any chance of sale. But, as we have already observed, the means of communication are everywhere wanting. It must, indeed, be owned that the construction of stone-faced roads is attended with great difficulty, for throughout all the plains of Southern Russia the materials, are scarce and for the most part of bad quality, being limestone of a friable character. But might not the produce of a great part of Poland, and of all new Russia, be conveyed to Odessa by the Pruth, the Dniestr, and the Dniepr?
The only goods conveyed down the Dniestr consist at present of some rafts of timber and firewood from the mountains of Austrian Gallicia. The Russian government has repeatedly been desirous of improving the navigation of the river in compliance with the desire of the inhabitants of its banks. A survey was made in 1827, and again in 1840. Unfortunately all these investigations being made by men of no capacity led to nothing. An engineer was commissioned in 1829 to make a report on the works necessary for rendering the river practicable at Jampol, where it is obstructed by a small chain of granite. He estimated the expense at 185,000 francs, whereas it was secretly ascertained that 10,000 would be more than enough. The project was then abandoned. Thus with the best and most laudable intentions, the government is constantly crippled in its