Peter the Great

The Emperor, noted one foreigner, “could dispatch more affairs in a morning than a houseful of senators could do in a month

In the end, Peter’s tax policies were a success for the state and a massive burden for the people. When the Emperor died, the state did not owe a kopek. Peter had fought twenty-one years of war, constructed a fleet, a new capital, new harbors and canals without the aid of a single foreign loan or subsidy (indeed, it was he who paid subsidies to his allies, especially Augustus of Poland). Every kopek was raised by the toil and sacrifice of the Russian people within a single generation. He did not float internal loans so that future generations could help to pay for his projects, nor did he devalue the currency by issuing paper money as Goertz had done on behalf of Charles XII of Sweden. Instead, he laid the entire burden on his contemporary Russians. They strained, they struggled, they opposed, they cursed. But they obeyed.

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

“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.”

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

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. Consequently, with all the money thus concealed by nobility and peasants, it has no circulation and the country reaps no benefit from it

By the end of Peter’s reign, a vast industrial and mining complex consisting of twenty-one iron and copper foundries had risen in the Urals, centering on the town of Ekaterinburg, named in honor of Peter’s wife.

The only long-term way to extract more revenue from his people, Peter realized, was to increase the production of national wealth, thus increasing the tax base.

The Tsar pulls uphill alone with the strength of ten, but millions pull downhill

Peter, a man of simple tastes, was distressed and disgusted by the shameless rapacity of his lieutenants clutching at every opportunity to rob the state. On all sides, he saw bribery, embezzlement and extortion, and the Treasury’s money “flowing from everybody’s sleeves.” Once, after hearing a Senate report listing further corruption, he summoned Yaguzhinsky in a rage and ordered the immediate execution of any official who robbed the state of even enough to pay for a piece of rope. Yaguzhinsky, writing down Peter’s command, lifted his pen and asked, “Has Your Majesty reflected on the consequences of this decree?” “Go ahead and write,” said Peter furiously. “Does Your Majesty wish to live alone in the empire without any subjects?” persevered Yaguzhinsky. “For we all steal. Some take a little, some take a great deal, but all of us take something.” Peter laughed, shook his head sadly and went no further.