By these arbitrary and exclusive measures, the government thought to encourage native manufactures; and by prohibiting the goods of Germany, France, and England, it hoped to force the productions of Russia on the trans-Caucasian provinces. The transit trade was, of course, proscribed at the same period. By a first ukase, the merchants were forced to deposit at the frontier in Radzivilof, double the value of their goods, and the money was only to be returned to them at Odessa, upon verification of their bales. It is obviously not to be thought of that merchants, however wealthy, should carry with them, in addition to the capital to be expended on their purchases, double the value of their goods in transitu. This new measure, therefore, was sufficient of itself alone to put an entire stop to the transit trade. The Persians and Armenians forsook this route, and chose another, to the great detriment of Russia. At present the value of the transit is from 180,000 to 200,000 francs, the goods being chiefly yellow amber, sent from Prussia to Turkey. For a charge of fifteen francs per twenty kilogrammes, the Jews undertake to give security to the customs in title-deeds, which they hire at the rate of five or six per cent., and they despatch the goods directly to Odessa.
England, always so prompt to seize opportunities, took advantage of the blunders of Russia. She secured a position in Trebizond, and her merchants, recoiling from no sacrifice, formed there an immense entrepot, from which they soon sent out the manufactures of their country into all the provinces of Asia. Business to the amount of more than 2,000,000_l. sterling, is now carried on in Trebizond, and two sets of steamboats ply between it and Constantinople.
Thus Russia lost one of the most important commercial lines in the world, and by her extravagant increase of duties she completely extinguished the lawful import trade of the Caucasian provinces. But English and other foreign goods still find their way there by contraband, and the government officers are themselves the first to profit by this system; for they are still more desirous than the native inhabitants to procure manufactured goods, and, above all, at a moderate price. The prohibitive measures of Russia have, therefore, really recoiled on the government itself, and the treasury loses considerably by them, not only in the Caucasus, but also on the European frontiers. Owing to the freedom of its port, the town of Odessa, of course, suffers less from the disastrous effects of this prohibitive system, and finds some commercial resources in its own consumption, and in that of its environs. Nevertheless, as this consumption, (which notwithstanding the contraband trade is kept in full vigour by the Jews, and even by the highest classes,) is out of all proportion to the exportation, and as there is very little exchange traffic, foreign vessels are gradually deserting the Black Sea; and, besides this, their charges for freight are necessarily too high, in consequence of their being obliged in almost every instance to repair in ballast to the harbours of South Russia. Then we must take into account the remoteness of the Black Sea; the dread, not yet quite effaced, with which it is regarded; the impossibility of finding freights anywhere except in Odessa; the excessive severity of the winter, and the usual obstructions of the harbours by ice during three or four months every year. All these things combine to repel mariners; so that nothing, except extraordinary cheapness and great profits, could induce merchants to send their vessels for freight to the ports of Southern Russia.
Thus driven away by the prohibitive system of Russia, many nations are seeking to establish markets for their productions elsewhere. It is also to be remarked that agriculture has made very great progress in Europe since the re-establishment of peace; and consequently the exportation of corn from Russia has considerably diminished. Nevertheless, we are of opinion that Southern Russia would have lost little of its agricultural importance, notwithstanding its system of customs, if the government, instead of remaining stationary, had sincerely entered on a course of improvement.