Russia under the Old regime

THE MISSING BOURGEOISIE

Vodka, which is distilled from grain [rather than potatoes, as is often mistakenly believed), was likewise a crcwn monosoly until the eighteenth century when the monopoly was turned over to dvoriane. It was dispensed exclusively in licensed shops.

Among commodities derived from tribute, the place of honour belonged to precious furs. These the tsar obtained from the regular tribute (iasak) levied on the inhabitants of Siberia; a tax collected from Siberian merchants requiring them to turn over to the T'easury the best pelt out often in their stock; and contributions of voevoly who had to sell to the Treasury at fixed prices all the furs given them by the populace as part of their 'feeding'. These mountains of skins weie sold either to western merchants resident in Russia or dispatched t" the Middle East and China. Whenever they went abroad. Russian ambassadors took with them trunks filled with furs which, having fiven out the presents, they sold to cover their expenses. Private cbalers were allowed to trade only in the less valuable skins, unfit for ejport.

Many of the goods used in tsarist commene were imported from abroad. The tsar asserted the right "f first refisal on all foreign merchandise landed in the country. Before being ofered to private traders, all such merchandise had to be submr.ted for inpection to tsarist agents who bought whatever they liked on his behalf t non-negotiable prices. A foreigner who refused the price offe-ed could lot sell the merchandise in question to anyone else in Russia Goods obtained in this manner were either used by the tsarist househcld or resod for domestic consumption. This practice enabled the crowa to come the wholesale trade in luxuries. The crown also claimed a monopoly HI the export of certain commodities in great demand abroad, such ascaviar, flax, tar, potash and leather.

Last but not least, the crown made extensive use of regalia, claiming the sole right to commerce in any commodity ilehose. The government rarely failed to impose royal monopolies whenever private initiative demonstrated the existence of a maiket for sone previously untraded item. Thus, for example, in 1650 the governmen learned that the inhabitants of Astrakhan were doing brisk business vith Persia in madder, a plant used in the manufacture of dyes. It immeliately declared madder a state monopoly, ordering it to be lencefortl sold exclusively to the Treasury at fixed prices; the Treasury in turn,resold it to the Persians at negotiable prices. A similar injunction was inposed twelve years later on several commodities which tsarist agents disovered private businessmen had been selling at a handsome profit to westerners: Russian leather, flax, meerschaum and beef fat.4 In practice, any product which entered into commerce became the subjot of a state monopoly. It is difficult to conceive of a practice more fatal to tie entrepreneurial spirit.