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with the coasts of the White Sea。



    But the great increase of her industry; and especially of her



civilisation; dates from the reign of Peter the Great。 The history



of Russia during the last hundred and forty years offers a most



striking proof of the great influence of national unity and



political circumstances on the economic welfare of a nation。



    To the imperial power which established and maintained this



union of innumerable Barbaric hordes; Russia owes the foundations



of her manufactures; her vast progress in agriculture and



population; the facilities offered to her interior traffic by the



construction of canals and roads; a very large foreign trade; and



her standing as a commercial power。



    Russia's independent system of trade dates; however; only from



the year 1821。



    Under Catherine II。 trade and manufactures had certainly made



some progress; on account of the privileges she offered to foreign



artisans and manufacturers; but the culture of the nation was still



too imperfect to allow of its getting beyond the first stages in



the manufacture of iron; glass; linen; &c。; and especially in those



branches of industry in which the country was specially favoured by



its agricultural and mineral wealth。



    Besides this; further progress in manufactures would not; at



that time; have been conducive to the economic interests of the



nation。 If foreign countries had taken in payment the provisions;



raw material; and rude manufactures which Russia was able to



furnish if; further; no wars and exterior events had intervened;



Russia by means of intercourse with nations more advanced than



herself would have been much more prosperous; and her culture in



general would in consequence of this intercourse have made greater



progress than under the manufacturing system。 But wars and the



Continental blockade; and the commercial regulations of foreign



nations; compelled her to seek prosperity in other ways than by the



export of raw materials and the import of manufactures。 In



consequence of these; the previous commercial relations of Russia



by sea were disturbed。 Her overland trade with the western



continent could not make up for these losses; and she found it



necessary; therefore; to work up her raw materials herself。 After



the establishiment of the general peace; a desire arose to return



to the old system。 The Government; and even the Emperor; were



inclined to favour free trade。 In Russia; the writings of Herr



Storch enjoyed as high a reputation as those of Mons Say in



Germany。 People were not alarmed by the first shocks which the home



manufactories; which had arisen during the Continental Blockade;



suffered owing to English competition。 The theorists maintained



that if these shocks could only be endured once for all; the



blessings of free trade would follow。 And indeed the circumstances



of the commercial world at the time were uncommonly favourable to



this transition。 The failure of crops in Western Europe caused a



great export of agricultural produce; by which Russia for a long



time gained ample means to balance her large importation of



manufactured goods。



    But when this extraordinary demand for Russian agricultural



produce had ceased; when; on the other hand; England had imposed



restrictions on the import of corn for the benefit of her



aristocracy; and on that of foreign timber for the benefit of



Canada; the ruin of Russia's home manufactories and the excessive



import of foreign manufactures made itself doubly felt。 Although



people had formerly; with Herr Storch; considered the balance of



trade as a chimera; to believe in the existence of which was; for



a reasonable and enlightened man; no less outrageous and ridiculous



than the belief in witchcraft in the seventeenth century had been;



it was now seen with alarm that there must be something of the



nature of a balance of trade as between independent nations。 The



most enlightened and discerning statesman of Russia; Count



Nesselrode; did not hesitate to confess to this belief。 He declared



in an official circular of 1821: 'Russia finds herself compelled by



circumstances to take up an independent system of trade; the



products of the empire have found no foreign market; the home



manufactures are ruined or on the point of being so; all the ready



money of the country flows towards foreign lands; and the most



substantial trading firms are nearly ruined。' The beneficial



effects of the Russian protective system contributed no less than



the injurious consequences of the re…establishment of free trade



had done to bring into discredit the principles and assertions of



the theorists。 Foreign capital; talent; and labour flowed into the



country from all civilised lands; especially from England and



Germany; in order to share in the advantages offered by the home



manufactories。



    The nobility imitated the policy of the Empire at large。 As



they could obtain no foreign market for their produce; they



attempted to solve the problem inversely by bringing the market



into proximity with the produce  they established manufactories



on their estates。 In consequence of the demand for fine wool



produced by the newly created woollen manufactories; the breed of



sheep was rapidly improved。 Foreign trade increased; instead of



declining; particularly that with China; Persia; and other



neighbouring countries of Asia。 The commercial crises entirely



ceased; and one need only read the latest reports of the Russian



Minister of Commerce to be convinced that Russia owes a large



measure of prosperity to this system; and that she is increasing



her national wealth and power by enormous strides。



    It is foolish for Germans to try to make little of this



progress and to complain of the injury which it has caused to the



north…eastern provinces of Germany。 Each nation; like each



individual; has its own interests nearest at heart。 Russia is not



called upon to care for the welfare of Germany; Germany must care



for Germany; and Russia for Russia。 It would be much better;



instead of complaining; instead of hoping and waiting and expecting



the Messiah of a future free trade; to throw the cosmopolitan



system into the fire and take a lesson from the example of Russia。



    That England should look with jealousy on this commercial



policy of Russia is very natural。 By its means Russia has



emancipated herself from England; and has qualified herself to



enter into competition with her in Asia。 Even if England



manufactures more cheaply; this advantage will in the trade with



Central Asia be outweighed by the proximity of the Russian Empire



and by its political influence。 Although Russia may still be; in



comparison with Europe; but a slightly civilised country; yet; as



compared with Asia; she is a civilised one。



    Meantime; it cannot be denied that the want of civilisation and



political institutions will greatly hinder Russia in her further



industrial and commercial progress; especially if the Imperial



Government does not succeed in harmonising her political conditions



with the requirements of industry; by the introduction of efficient



municipal and provincial constitutions; by the gradual limitation



and final abolition of serfdom; by the formation of an educated



middle class and a free peasant class; and by the completion of



means of internal transport and of communication with Central Asia。



These are the conquests to which Russia is called in the present



century; and on them depends her further progress in agriculture




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