To facilitate trade, Russia needed more circulating currency. New Russian coins had been minted since Peter's return from the West with the Great Embassy, but coins were so scarce that merchants in Petersburg, Moscow and Archangel borrowed them at fifteen percent interest simply to keep their business operating. One reason for this scarcity was the ingrained habit of all Russians, from peasant to noble, of quickly hiding any money on which they could lay their hands. As a foreign visitor explained, "Among the peasants, if by chance one happens to gain a small sum, he hides it under a dunghill, where it lies dead to him and to the nation. The nobility, being afraid of making themselves noticed and obnoxious to the court by the show of their wealth, commonly lock it up in coffers to molder there, or those more sophisticated send it to banks in London, Venice or Amsterdam.
*In 1918. Ekaterinburg was the site of the murder of the family of the last Russian Emperor, Nicholas II. Today, the city is named Sverdlovsk.
Consequently, with all the money thus concealed by nobility and peasants, it has no circulation and the country reaps no benefit from it." At the beginning of the war, a decree declared that "the hoarding of money is forbidden. Informers who discover a cache are to be rewarded with one third of the money, the remainder to go to the state."
Another reason for the scarcity of coinage was an insufficiency of precious metals. Gold- and silversmiths who came to Russia became discouraged and went home, and many freshly coined roubles were defective as to both alloy and weight of metal. Peter knew this and it worried him, but as the mines simply were not producing enough gold and silver, he was forced to allow the debasement to continue. In 1714, to preserve the nation's economy, Peter forbade the export of silver, In 1718, merchants leaving Russia were searched and any gold, silver or copper coins found were confiscated. On the least suspicion, customs officers would dismantle the carriages or sledges in which merchants were traveling. In 1723, this regulation was strengthened by adding the death penalty for anyone caught exporting silver. On the other hand, the import of gold and silver was vigorously encouraged; there was no duty on these metals. And when Russians sold their goods to foreigners, they were not permitted to accept Russian money in payment, but had always to receive foreign money.*
Peter's commands, issued impatiently from above, often were received without the slightest understanding of what was wanted or why. This compelled the Tsar not only to supervise everything closely himself, but also to employ force to get things done. Traditionally conservative, Russians balked at innovations, and Peter told his ministers, "You know yourselves that anything that is new, even if it is good and necessary, our people will not do without being compelled." He never apologized for using force. In a decree in 1723, he explained that "our people are like children who never want to begin the alphabet unless they are compelled to by the teacher. It seems very hard to them at first, but when they have learned it, they are thankful. So in manufacturing affairs, we must not be satisfied with the proposing of the idea only, but we must act and even compel."
Commerce is a delicate mechanism, and state decrees are not usually the best way to make it work. In Peter's case, it was not simply the element of compulsion that detracted from the success of his efforts—he himself was not always sure what he wanted. When his attention wandered or he was distracted, those below
*All this has a familiar ring to foreigners who live or travel in the Soviet Union today.
him, uncertain as to his desires, did nothing and all activity stopped. Peter's methods were strictly empirical. He tried this or that, ordering and countermanding, seeking a system that worked, sometimes without thoroughly understanding what was needed or the nature of the obstacles confronting him. His constant changes in direction, his minute regulations leaving no scope for local adjustment, confused and drained initiative from Russian merchants and manufacturers. Once, when the Dutch ambassador was pressing for Russian approval of a new commercial treaty and had been frustrated by repeated delays, he was told by Osterman, "Between ourselves, I will tell you the truth. We have not a single man who understands commercial affairs at all."
There were occasions when enterprises foundered simply because Peter was not present to give instructions. His temper could be so fierce and unpredictable that, in the absence of specific orders, people were unwilling to take initiative and simply did nothing. In Novgorod, for example, a large number of leather saddles and harnesses had been stored for the army. The local authorities knew that they were there, but because no order to distribute them had come down from above, they were left until "eventually, moldy and rotten, they had to be dug up with spades." Similarly, in 1717, many oak trunks brought from central Russia through the canals to Lake Ladoga for use in building the Baltic fleet were left to wash up on the shores and bury themselves in mud, simply because Peter was away in Germany and France and had not left specific instructions for their use.
To bridge the gap between the innovative Tsar who, despite his consuming interest, was often occupied with other matters, and the uncomprehending, unwilling nation, there were the foreigners. None of Peter's work in developing the national economy would have been possible without the foreign experts and craftsmen who poured into Russia between the time of Peter's return from the West in 1698 and his death in 1725. The Tsar engaged more than a thousand foreigners during his first visit to Amsterdam and London, and thereafter Russian envoys and agents at foreign courts were urgently commissioned to search out and persuade local artisans and technicians to enter Russian service.
Foreign craftsmen, foreign ideas and foreign machines and materials were at work in every sphere of industrial, commercial and agricultural activity. Vines, brought from France, were planted near Astrachan to produce wine which a Dutch traveler pronounced as "red and pleasant enough." Twenty shepherds, arriving from Silesia, were sent to Kazan to shear the sheep and
teach the Russians there how to make wool so that it would no longer be necessary to buy English wool to clothe the army. Peter saw better horses in Prussia and Silesia and ordered the Senate to establish stud farms and import stallions and mares. He observed Western peasants reaping grain with a long-handled scythe rather than the short-handled sickle which Russian peasants had always bent to use, and decreed that his people must adopt the scythe. Near Petersburg was a factory which turned Russian flax into a linen as fine in every respect as linen from Holland. The flax was spun in a workhouse where an old Dutch woman was teaching eighty Russian women how to use the spinning wheels, which were little known in Russia. Not far off was a paper mill run by a German specialist. Throughout the land, foreigners were teaching Russians how to build and operate glass factories, brick kilns, powder mills, saltpeter works, ironworks and paper mills. Once in Russia, foreign workers enjoyed numerous special privileges, including free houses and exemption from taxes for ten years. Surrounded by suspicious and xenophobic Russians, they lived under the Tsar's personal protection, and Peter sternly warned his people not to harm or take advantage of them. Even when a foreigner failed, Peter usually treated him with kindness and sent him home with a sum of money.