In addition, the names of the offices themselves were changing. There was a new Department of the Navy, a Department of Artillery and a Department of Mines. The heads of these departments, now called ministers, managed the routine business of government. Most petitions formerly addressed to the Tsar, were now addressed to the specific department or minister concerned. Peter discovered that when he was away from Moscow, the members of the old boyar council, now called the Privy Council, frequently failed to attend meetings. If, later, the Tsar criticized council decisions, these men avoided blame by saying that they had not been present. Thus, Peter demanded punctual attendance at all meetings and decreed that all decisions be signed by every member present. These papers, along with minutes of all meetings and other important papers, were sent by courier to Peter wherever he might be.
To handle these documents, Peter kept with him at all times a mobile personal chancery headed by his Cabinet Secretary, Alexis Makarov. A talented and modest man from the north, Makarov had risen on merit from a minor post in the provincial civil service to this key position in Peter's government. It was his duty not to offer advice but to see that all matters were brought to the Tsar's attention in the right sequence and at the most appropriate time.
*Ivan the Terrible had banned all Jews from Russia. However, Jews who renounced their religion were free to rise in society and government in Imperial Russia.
In this role, which required enormous tact and afforded enormous power, Makarov was assisted by a young German, Andrew Osterman. The son of a Lutheran pastor, Osterman was employed to translate correspondence between the Tsar and foreign courts. With the passing of time, Osterman's role was to become far greater.
Most of the business of Peter's government in those years concerned the war and taxes. Peter's decrees, like his constant traveling through the country, almost invariably dealt with the enrollment of recruits or the collection of revenues. The Tsar's demands for money were insatiable. In one attempt to uncover new sources of income, Peter in 1708 created a service of revenue officers, men whose duty it was to devise new ways of taxing the people. Called by the foreign name "fiscals," they were commanded "to sit and make income for the Sovereign Lord." The leader and most successful was Alexis Kurbatov, a former serf of Boris Sheremetev who had already attracted Peter's attention with his proposal for requiring that government-stamped paper be used for all legal documents. Under Kurbatov and his ingenious, fervently hated colleagues, new taxes were levied on a wide range of human activities. There was a tax on births, on marriages, on funerals and on the registration of wills. There was a tax on wheat and tallow. Horses were taxed, and horse hides and horse collars. There was a hat tax and a tax on the wearing of leather boots. The beard tax was systematized and enforced, and a tax on mustaches was added. Ten percent was collected from all cab fares. Houses in Moscow were taxed, and beehives throughout Russia. There was a bed tax, a bath tax, an inn tax, a tax on kitchen chimneys and on the firewood that burned in them. Nuts, melons, cucumbers, were taxed. There was even a tax on drinking water.
Money also came from an increasing number of state monopolies. This arrangement, whereby the state took control of the production and sale of a commodity, setting any price it wished, was applied to alcohol, resin, tar, fish, oil, chalk, potash, rhubarb, dice, chessmen, playing cards, and the skins of Siberian foxes, ermines and sables. The flax monopoly granted to English merchants was taken back by the Russian government. The tobacco monopoly given by Peter to Lord Carmarthen in England in 1698 was abolished. The solid-oak coffins in which wealthy Muscovites elegantly spent eternity were taken over by the state and then sold at four times the original price. Of all the monopolies, however, the one most profitable to the government and most oppressive to the people was the monopoly on salt. Established by% decree in 1705, it fixed the price at twice the cost to the government. Peasants who could not afford the higher price often sickened and died.
To tighten administrative control and increase the efficiency of tax collectors across the sprawling mass of the empire, Peter in 1708 divided Russia into eight giant governorships, assigning these eight provinces to his closest friends. Thus, the Moscow governorship was assigned to Boyar Tikhon Streshnev, St Petersburg went to Menshikov, Kiev to Prince Dmitry Golitsyn, Archangel to Prince Peter Golitsyn, Kazan to Boyar Peter Apraxin, Azov to Admiral Fedor Apraxin, Smolensk to Boyar Peter Saltykov and Siberia to Prince Matthew Gagarin. Each governor was responsible for all military and civil affairs in the region, especially the production of revenue. Unfortunately, as some of the "governors" resided in the capital far from their provinces, and others had conflicting duties (Menshikov was usually with the army), their authority left much to be desired.
Nevertheless, the effort continued. The governors commanded, the fiscals schemed, the tax collectors strained and the people labored, but only so much money could be squeezed from the Russian land. More could come only from the development of commerce and industry. Peter, observing the successful practices of English and Dutch trading companies in Russia, ordered Moscow merchants to form similar associations. At first, the Dutch were worried that their own efficient trade machinery would be jeopardized, but they soon realized that these fears were groundless. "As concerns the trading business," the Dutch minister wrote reassuringly to Holland, "the matter has fallen through of itself. The Russians do not know how to set about and begin such a complex and difficult business."
No matter how much the people struggled, Peter's taxes and monopolies still did not bring in enough. The first Treasury balance sheet, published in 1710, showed a revenue of 3,026,128 roubles and expenses of 3,834,418 roubles, leaving a deficit of over 808,000 roubles. This money went overwhelmingly for war. The army took 2,161,176 roubles; the fleet, 444,288 roubles; artillery and ammunition, 221,799 roubles; recruits, 30,000 roubles; armament, 84,104 roubles; embassies, 148,031 roubles, and the court, medical department, support of prisoners and miscellaneous, 745,020 roubles.
The extraordinary demand for taxes was matched by an extraordinary demand for men. In the nine years from Narva to Poltava, Peter drafted over 300,000 men into the army. Some were killed or wounded, others died of disease, but the overwhelming proportion of the losses came from desertion. Additional drafts of peasant labor were conscripted to work on Peter's ambitious construction projects. Thirty thousand laborers a year were needed for work on the fortifications at Azov and the building of the naval base at Tagonrog. The shipyards at Voronezh and work on a never completed Don-Volga canal required more thousands. And well before Poltava, the effort to build St. Petersburg was consuming more men than anything else. In the summer of 1707, Peter ordered Steshnev to send 30,000 laborers to St. Petersburg from the Moscow region alone.
These unprecedented demands for money and men drew groans from all classes. Discontent and complaint were not new in Russia, but always the people had blamed the boyars when things went wrong, not the tsar. It was Peter himself who had shattered this image. Now, the people understood that the Tsar was the government, that this tall man dressed in foreign clothes was giving the orders which made their lives so hard. "Since God has sent him to be the Tsar, we have no happy days," grumbled a peasant. "The village is weighed down with furnishing roubles and half-roubles and horses' carts, and there is no rest for us peasants." A nobleman's son agreed. "What sort of tsar is he?" he asked. "He has forced us all into service, he has seized upon our people and peasants for recruits. Nowhere can you escape^ him. Everyone is lost. He even goes into the service himself and yet no one kills him. If they only killed him, the service would stop and it would be easier for the people."