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CHAPTER IV.

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COMMERCE OF THE BLACK SEA—PROHIBITIVE SYSTEM AND ITS PERNICIOUS RESULTS—DEPRESSED STATE OF AGRICULTURE—TRADE OF ODESSA—ITS BANK.

From the destruction of the Genoese colonies in the Crimea, in 1476, down to the treaty of Kainardji, a period of 300 years, the Black Sea remained closed against the nations of the West, and was the privileged domain of Turkey. Its whole coast belonged to the sultans of Constantinople, and the khans of the Crimea. The Turks, and the Greeks of the Archipelago, subjects of the Ottoman Porte, had the sole right of navigating those waters, and all the commerce of Europe with that portion of the East was exclusively in the hands of the latter people. The conquests of Peter the Great, and subsequently those of the celebrated Catherine II., changed this state of things. The Russians advanced towards the south, and soon made themselves masters of the Sea of Azof, the Crimea, and all the northern coasts of the Black Sea. Nevertheless, it was not until July 21, 1774, after six consecutive campaigns, and many victories achieved by the Russians, by sea and land, that the treaty of Kainardji was signed, which by throwing open the Bosphorus and the Dardanelles, effected a real revolution in the commercial relations of Europe, and definitively secured to Russia that immense influence which it exercises to this day over the destinies of the East. The treaty of Kainardji ere long received a more ample extension. Austria, France, and successively all the other powers, partook in the advantages of the Black Sea navigation. Russia was, therefore, justly entitled to the gratitude of Europe, for the new channels she had opened to its commerce.

Once mistress of the Black Sea, and free to communicate with the Mediterranean, Catherine earnestly applied herself to the foundation of a port, which should be at once military and commercial. The mouth of the Dniepr, one of the largest rivers of Russia, at first attracted her attention. General Hannibal founded the town of Kherson upon it, in 1788, by her orders; and in 1783, a Frenchman, afterwards ennobled by Louis XVI., established the first foreign commercial house there, and contracted to supply the arsenals of Toulon with the hemp and timber conveyed down the Dniepr. Kherson, however, did not prosper as might have been expected. The empress's intentions were defeated by the exigencies of the system of customs prevailing in the empire, and it was impossible to obtain for the port of Kherson the franchises so necessary for a new town, and for the extension of its commerce.

The dismemberment of Poland gave a new turn to Catherine's commercial ideas. The port of Kherson was abandoned, or nearly so, in 1796, and the preference was given to Odessa, which, by its more western position, considerably facilitated the exportation of agricultural produce, wherein consisted the chief wealth of the palatinates of Podolia, Volhynia, and the other provinces newly incorporated with the Russian possessions. No change, however, was made in the system of customs, and it was not until 1803, in the reign of Alexander, that a reduction of one-fourth was made in the duties imposed by the general tariff on all exports and imports in the harbours of the Black Sea. In 1804, Odessa was made an entrepôt for sea-borne goods, the entrance of which was permitted into Russia. They might remain there in bond for eighteen months; a favour which was the more important at that period, because, as the import duties were considerable, the merchants would have been obliged to draw heavily on their capital, had they been obliged to defray them at once. An ukase of the 5th of March, in the same year, allowed transit, free of duty, to all foreign goods which were not prohibited in Odessa, or which arrived there from other towns of Russia; such goods if destined for Moldavia and Wallachia, were to pass through the custom-houses of Mohelef and Dubassar; for Austria, through those of Radzivilof; for Prussia, through those of Kezinsky; and foreign goods sent through these four establishments to Odessa, were allowed free transit there by sea. These liberal and very enlightened arrangements vastly augmented the prosperity of Odessa, and soon attracted the attention of all speculators to that port.

About the year 1817 an increased duty was laid on all foreign goods in the Black Sea; but at the same period Odessa was definitively declared to be a free port, without restriction. Things continued thus until 1822; and it was during this interval that all those great foreign houses were established in Odessa, some of which exist to this day. The commerce of Southern Russia had 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. 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 plans of amelioration whether by the incapacity or by the bad faith and cupidity of its functionaries. Last year the subject of the navigation of the Dniestr was again taken up, and it is even alleged that the Russian government has given orders for two steam-vessels destined to ply on that river.

The works on the Dniepr are scarcely in a more forward state than those of the Dniestr. It is known that below Iekaterinoslaf the course of the river is traversed by a granite chain, which extends between that town and Alexandrof, a distance of more than fifteen leagues. At the time of the conquest of the Crimea and the shores of the Black Sea, it was proposed to render navigable the thirteen rapids that form what has been improperly denominated the cataracts of the Dniepr. Works were begun at various times, but always abandoned. They were resumed under Nicholas with new ardour, but the government was soon discouraged by the enormous cost, and, above all, by the peculations of its servants. The whole amount of work done up to the present time is a wretched canal 300 yards long, more dangerous for barges to pass through than the rapids themselves. This canal was finished in 1838. The works had not yet been resumed when we left Russia in 1841. The rapids of the Dniepr are therefore still as impracticable as ever, and it is only during the spring floods, a period of a month or six weeks, that barges venture to pass them; and even then it rarely happens that they escape without accident. More than eighty men were lost in them in 1839, and a multitude of barges and rafts were knocked to pieces on the rocks. The goods that thus descend the Dniepr consist almost exclusively of timber and firewood, and Siberian iron. Corn never makes any part of the cargo, because in case of accident it would be lost beyond recovery. But what will really seem incredible is, that the German colonists settled below the rapids, are obliged to convey their produce to the Sea of Azov in order to find any market for it; hence the greater part of the government of Iekaterinoslaf, and those of Poltava and Tchernikof, watered by the Dniepr, are in a perpetual state of distress, though they have wheat in abundance; and the peasants sunk into the deepest wretchedness, are compelled every year to make journeys of 300 miles, and often more, to earn from six to seven francs a month in the service of the landowners on the borders of the Black Sea. The eastern part of the government of Iekaterinoslaf profits by the vicinity of the Sea of Azov, and tries to dispose of its corn in Taganrok, Marioupol, and Berdiansk, a port newly established by Count Voronzof.

This general survey of the means of transport possessed by Russia, is enough to show that the corn-trade of these regions owes its vast development in a great measure to fortuitous circumstances; and that the absence of easy communication, and the prohibitive system, both tend to bring it down lower and lower every year. Here follows a statement of the price of corn at Tulzin, one of the least remote points of Volhynia, and the cost of carriage to Odessa, during the years 1828–30, and 1839, 40, 41.

1828–30. Rubles. 1839–40-41.
Price of 100 kilogrammes of wheat on the spot 15.30 63.70
Cost of carriage to Odessa 1.56 2.50
Export Duties 0.39 0.39
Total 17.25 66.59
Or 15.s.9d. 61s.3d.

From this table we see that prices rose remarkably during the latter years. We must remark, however, that the years 1828–29-30, were unusually productive, and the prices prevailing in them are by no means an average. But it is altogether obvious that with such prices, and an absolute blank in importation, the commerce of Southern Russia must necessarily perish. In 1841, the merchants could only offer the masters of merchant vessels two-and-a-half francs per sack for freight to Marseilles, while the latter can hardly realise any profit even at the rate of four francs. For Trieste they offered only twenty, and even eighteen kreutzers, whereas not less than sixty will yield any remuneration. Ship owners will not henceforth be tempted to visit Odessa in quest of gain. The English alone have obtained tolerable freights.

To all these causes of ruin are to be added the enormous charges to which merchants are subject; those of the first class pay 300 rubles for their licence, always in advance; the postage charges for letters are exorbitant; there are persons whose yearly correspondence costs 10,000, 15,000, 20,000 rubles. An ordinary letter to London pays seven and even eight rubles. Again, the great merchants not choosing to sit idle, keep up the high prices by their purchases: they may no doubt gain occasionally by these speculations, but they generally lose. Witness the disasters and failures of the year 1841. What chance of prosperity can there be for a trade that at the moment of the departure of the goods, hardly ever promises any profit at the current prices in the place of destination, and which consequently lives only on the hope of an eventual rise? How will it be with it in a few years, when the canals and railroads projected in Germany, shall have been finished? At this day the wheat of Nuremberg and Bamberg, reaches England by way of Amsterdam.

But without going so far, Southern Russia now sees growing up against it in the Black Sea a competition, which is daily becoming more formidable. The principalities of the Danube, have made immense progress in ten years, in consequence of the franchises and privileges bestowed on them by the treaty of Adrianople. Galatz and Ibraïla, now furnish a considerable quantity of corn to the foreigner; and in spite of the disadvantages of having to ascend the Danube, masters of vessels now prefer repairing to those ports on account of their administrative facilities, and above all by reason of the commercial resources which importation offers there. In 1839, Marseilles bought more than 4000 hectolitres of wheat in the markets of Galatz and Ibraïla, whilst the port of Odessa hardly supplied it with twice that quantity. We will return by and by to the question of the Danube, when we come to speak of Bessarabia.

Another measure fatal to the corn-trade, was the decision of the government with respect to the confiscated lands of the Poles. After the revolution of 1831, more than 423,000 peasants were sequestrated to the crown. These peasants occupied extremely fertile regions lying very near Odessa: Ouman, the property of Alexander Potocki, made part of them. The government committed the management of these lands to public servants, selected chiefly from among the retired veteran officers, or those who had been incapacitated for service by their wounds. Under such management, pillage and the most utter neglect were the order of the day, and the consequence was, that the lands produced literally nothing to the crown, and served only to enrich their administrators. Weary of this disorder, the government determined in 1836 to detach nearly 93,000 peasants from these lands, and incorporate them with the military colonies. Nor did it stop there, but under pretext of removing all opportunity for extortion on the part of its servants, it issued an order in 1840, confining the new colonists to the cultivation of oats and barley, and forbidding them to sow wheat for exportation. These regulations, occasioned by the general corruption of the public servants, which the imperial will is powerless to check, produced melancholy results for the trade of Odessa, and that town was suddenly deprived of the agricultural produce it used to draw from the fertile soil of Ouman.

We must now enter into some considerations, bearing more immediately on Odessa itself. The credit that town enjoys abroad is extremely limited by the inordinate privileges of the imperial bank. In cases of bankruptcy, that establishment is entitled to disregard all competing claims, and to pay itself immediately by the sale of the real and personal property of its debtor, without reference to his other creditors; it is entitled to pay itself: 1st. the capital lent; 2nd. A surcharge of eight per cent., called re-exchange, arising out of the cost of brokerage and renewal of bills every three months; and, 3rd. Interest on the capital and surcharge, at the rate of 1–½ per cent, per month, until the whole debt is liquidated. The fatal effects of such a system may easily be conceived; the merchants of Odessa can seldom establish a credit with foreign houses.

As for the uses of the bank, they consist: 1st. In discounting town bills that have not more than four months to run; 2nd. In making advances on goods; 3rd. In serving as a bank of deposit for the mercantile houses; 4th. In giving drafts on the other banks of the empire, and paying their drafts on itself; 5th. In receiving deposits on interest.

The drafts were of great use in commerce, particularly for the payments between St. Petersburg, Moscow, and Odessa: the charge upon them was a quarter per cent., whilst the conveyance of money through the post costs one per cent., besides postage. This convenient system was unfortunately put an end to in 1841. The charge on drafts now amounting to five per cent., operations of this kind have consequently become impossible. It was, probably, with a view to the revenues of the post-office, that this sage measure was adopted by the minister of finance.

Every one knows, that in order that a bank of discount should carry on business profitably for itself and for the commerce it is intended to assist, it must deal only in genuine commercial bills. Merchants recognise as genuine and discountable bills, only those drawn by other places for banking operations, and home bills drawn in consideration of goods sold for payment at a determinate future date. Now the Odessa bank not being a bank of issue, does not practise acceptance properly so called; Constantinople is almost the only town that draws on Odessa, and that but for small amounts, and as these acceptances are at twenty-one days' date, they are rarely discounted. Sales of goods for bills are also seldom practised, and from all we could learn, we believe they make but a very small part of the business of the Odessa bank. Goods are generally bought in that town on trust and without bills.

On what bases then have the operations of the Odessa bank hitherto rested? Rather, we are disposed to think, on fictitious than on real commerce. From its first establishment, the bank, strong in its privileges, thought to serve trade by encouraging discounts; and the facilities it afforded, induced many persons to avail themselves of this means of credit. Every one in Odessa knows how many disasters have been the consequence. Suppose a merchant wished to make a speculation, to buy for instance, a ship-load of wheat, amounting to 12,000l.; if he had only 80,000 or 100,000 rubles capital, he obtained the indorsement of one or more of his friends, and the bank immediately advanced him the whole sum necessary, at three months. The merchant was, therefore, forced to dispose of his goods as fast as possible, in order to meet his engagements with the bank: clogged and disturbed in his operations, and fearing lest he should involve his friends, he must often have incurred great losses, and after a few similar speculations, his ruin, and that of his friends were inevitable. Such has been the fate of many a merchant, in consequence of the unfortunate facility they found in obtaining money. The bank ought to have been aware, that instead of genuine commercial bills, it was discounting mere accommodation paper, and that there is an immense difference between discount for the realisation of business actually done, and discount for the realisation of business yet to be done. Unquestionably, the bank ought to have modified its system, after seeing the mischiefs it led to; but it has persisted in its original course, and were it to desist from it without a radical change of institutions, the operations of an establishment constructed on so vast a scale would become quite insignificant.

Hitherto, then, the bank of Odessa has completely failed to answer the purpose for which it was founded; it has done infinitely more harm than good to trade, and its enormous privileges have, moreover discredited Odessa abroad. The abolition of these privileges could repair the errors and mischiefs of the first establishment. The bank would thereby be compelled to discount only genuine commercial paper, and to do business on a much smaller scale; but its operations, though restricted, would be but the more advantageous for itself and for commerce; every one would then conduct his business with, reasonable regard to the extent of his means; failures would no longer be so ruinous to creditors; and this new bank, in correspondence with those of St. Petersburg and Moscow, by continuing to make transfers as in the beginning, and by accepting deposits at four per cent., would suffice for all the wants of the place. Unfortunately, judging from the last measure adopted with respect to transfers, there is no hope whatever that a new bank will be established, or that the existing one will undergo the requisite reforms. Yet if the Russian government, which persists in its prohibitive system, wishes to avoid the complete destruction of the commerce of Southern Russia, it must absolutely change its line of conduct, it must devote its strenuous attention to the means of internal communication, and render the commercial transactions of Odessa as easy and economical as possible. What is most deplorable in Russia is, that the truth never finds its way to the head of the state, and that a public functionary would think himself undone if he disclosed the real state of things; hence in the memoirs, reports, and tables laid before the emperor, the good only is acknowledged, and the evil is always disguised. Once committed to this course of dissimulation and lying, the public functionaries render all improvements impossible; and by always sacrificing the future to the present, do incalculable mischief to the country. The question is now entertained, of depriving Odessa of its last franchises, and putting its port on the same footing with the other commercial places of the empire. If Count Cancrine has not yet succeeded in doing this, the town has to thank the protection and the influence of Count Voronzof.

The following table shows the exports and imports at the different ports and custom-houses of Southern Russia, during the years 1838 and 1839, the value being set down in paper rubles.

EXPORTS.
PORTS. 1838. 1839.
Goods. Specie. Goods. Specie.
Odessa 38,300,872 3,730 48,551,077 54,406
Ismael (on the Danube) 3,913,494 9,915 2,793,244
Reny (on the Danube) 718,040 50,773 609,541 77,745
In Bessarabia
Novoselitza 1,978,172 163,868 3,277,660 81,868
Skouliany 829,602 525,638 737,462 540,618
Leovo 96,832 60,537 58,906 36,709
Tagranok 7,666,943 60,537 8,219,648
Marioupol 4,152,710 60,537 6,808,526
Berdiansk 2,971,426 60,537 4,107,638
Kertsch 226,999 60,537 123,082
Theodosia 1,281,244 60,537 955,108
Eupatoria 9,299,365 60,537 2,394,867
Balouclava
Total 64,435,699 814,461 78,637,759 793,346
IMPORTS.
PORTS. 1838. 1839.
Goods. Specie. Goods. Specie.
Odessa 17,483,635 3,825,258 19,297,201 3,992,799
Ismael (on the Danube) 253,697 1,632,996 238,996 820,035
Reny (on the Danube) 50,193 797,497 85,429 553,174
In Bessarabia
Novoselitza 221,324 1,939,604 245,198 3,048,064
Skouliany 222,507 497,200 195,088 721,015
Leovo 52,336 29,932 55,664 26,291
Taganrok 5,887,901 1,415,596 5,334,369 2,885,279
Marioupol 300 640,660 987 1,515,525
Berdiansk 300 768,722 987 825,113
Kertsch { 175,321 { 250,887
Theodosia { 673,535 1,678,658 { 695,130 1,891,947
Eupatoria { 185,480 { 131,222
Balouclava 6,605
Total 25,212,834 13,226,132 26,520,171 16,281,242
Total of Duties 25,212,834 8,492,074 26,520,171 8,215,426

The foreign goods that entered the interior of the empire in 1839, by way of Odessa, amounted in value to 9,130,148 paper rubles, which, curiously enough, was not even half the total importation of that port. From this we may judge of the consumption of Odessa, and at the same time of the extent of the contraband trade.

From these tables we see that there is no equilibrium in the trade of Odessa. Southern Russia absorbs every year more than 15,000,000 of foreign specie, and its exports are treble its imports. It is evident that such a trade rests on no solid basis; that its prosperity is due only to accidental circumstances, and that ships will gradually abandon the Black Sea, and seek some other destination, wherever agriculture flourishes, and is accompanied by a less exclusive system of customs. In the present state of things, the cultivation of corn in Egypt would be enough to ruin immediately all the ports of Southern Russia. With such contingencies before it, the government of Russia ought to ponder well before obstinately persevering in its present system. Mariners do not like the northern parts of the Black Sea, and once they shall have left them, they will return to them no more.

The year 1839 was most memorable in the commercial history of Odessa. The exports, consisting almost entirely of corn, amounted to 48,000,000 paper rubles. The harvests in the country had been very abundant, and as those of the rest of Europe were very unpromising, the demand was at first so encouraging that the merchants launched out into the boldest speculations. These were successful for a while, but disasters soon followed, and the houses which were supposed to have realised profits to the amount of millions, failed a year or eighteen months afterwards. Since that time trade has always been in a perilous state. In 1840, under the still subsisting influence of the movement of the preceding year, there was a diminution of 7,184,021 rubles; and in 1841 the first quarter alone presented a decrease of 6,891,332 rubles in comparison with the corresponding quarter in 1840.

On examining a general table of the exportation of Odessa, we see that during Napoleon's wars its commerce, completely stationary, did not exceed five or six millions of rubles. After the events of 1815, during the horrible dearth that afflicted all western Europe, the exports rose in 1817 to more than 38,000,000. In 1818 they fell without any transition to 20,000,000. During the war of 1828–29 they sank to 1,673,000. After the treaty of Adrianople, Southern Russia, being encumbered with an excess of produce, the exports again rose to 27,000,000. After this they varied from twenty to thirty, until 1839 when they reached the highest point they ever attained, namely, 48,000,000. We have already explained the causes of this factitious augmentation. From these data we see that the activity of the trade of Odessa has always arisen out of fortuitous circumstances, which are becoming more and more rare, and that it is by no means the result of the progressive development of agricultural resources: the country is, therefore, completely stationary.

It is also easy to convince ourselves, by simple comparison, that the commerce of Southern Russia is far from prosperous. In 1839, the most productive year, the custom-houses yield but 8,215,426 rubles; and ten seaports distributed over more than 400 leagues of coast, together with three land custom-houses, show on an average but from forty-five to fifty-five millions of exports, and hardly a third of that amount of imports; whilst Trebizond alone annually sends out more than 50,000,000 worth of English goods into the various adjoining countries.



Travels in the Steppes of the Caspian Sea, the Crimea, the Caucasus, &c

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