The works on the Dniepr are scarcely in a more forward state than those of the Dniestr. It is known that below Iekaterinoslaf the course of the river is traversed by a granite chain, which extends between that town and Alexandrof, a distance of more than fifteen leagues. At the time of the conquest of the Crimea and the shores of the Black Sea, it was proposed to render navigable the thirteen rapids that form what has been improperly denominated the cataracts of the Dniepr. Works were begun at various times, but always abandoned. They were resumed under Nicholas with new ardour, but the government was soon discouraged by the enormous cost, and, above all, by the peculations of its servants. The whole amount of work done up to the present time is a wretched canal 300 yards long, more dangerous for barges to pass through than the rapids themselves. This canal was finished in 1838. The works had not yet been resumed when we left Russia in 1841. The rapids of the Dniepr are therefore still as impracticable as ever, and it is only during the spring floods, a period of a month or six weeks, that barges venture to pass them; and even then it rarely happens that they escape without accident. More than eighty men were lost in them in 1839, and a multitude of barges and rafts were knocked to pieces on the rocks. The goods that thus descend the Dniepr consist almost exclusively of timber and firewood, and Siberian iron. Corn never makes any part of the cargo, because in case of accident it would be lost beyond recovery. But what will really seem incredible is, that the German colonists settled below the rapids, are obliged to convey their produce to the Sea of Azov in order to find any market for it; hence the greater part of the government of Iekaterinoslaf, and those of Poltava and Tchernikof, watered by the Dniepr, are in a perpetual state of distress, though they have wheat in abundance; and the peasants sunk into the deepest wretchedness, are compelled every year to make journeys of 300 miles, and often more, to earn from six to seven francs a month in the service of the landowners on the borders of the Black Sea. The eastern part of the government of Iekaterinoslaf profits by the vicinity of the Sea of Azov, and tries to dispose of its corn in Taganrok, Marioupol, and Berdiansk, a port newly established by Count Voronzof.
This general survey of the means of transport possessed by Russia, is enough to show that the corn-trade of these regions owes its vast development in a great measure to fortuitous circumstances; and that the absence of easy communication, and the prohibitive system, both tend to bring it down lower and lower every year. Here follows a statement of the price of corn at Tulzin, one of the least remote points of Volhynia, and the cost of carriage to Odessa, during the years 1828–30, and 1839, 40, 41.
| 1828–30. | Rubles. | 1839–40-41. |
| Price of 100 kilogrammes of wheat on the spot | 15.30 | 63.70 |
| Cost of carriage to Odessa | 1.56 | 2.50 |
| Export Duties | 0.39 | 0.39 |
| Total | 17.25 | 66.59 |
| Or | 15.s.9d. | 61s.3d. |
From this table we see that prices rose remarkably during the latter years. We must remark, however, that the years 1828–29-30, were unusually productive, and the prices prevailing in them are by no means an average. But it is altogether obvious that with such prices, and an absolute blank in importation, the commerce of Southern Russia must necessarily perish. In 1841, the merchants could only offer the masters of merchant vessels two-and-a-half francs per sack for freight to Marseilles, while the latter can hardly realise any profit even at the rate of four francs. For Trieste they offered only twenty, and even eighteen kreutzers, whereas not less than sixty will yield any remuneration. Ship owners will not henceforth be tempted to visit Odessa in quest of gain. The English alone have obtained tolerable freights.
To all these causes of ruin are to be added the enormous charges to which merchants are subject; those of the first class pay 300 rubles for their licence, always in advance; the postage charges for letters are exorbitant; there are persons whose yearly correspondence costs 10,000, 15,000, 20,000 rubles. An ordinary letter to London pays seven and even eight rubles. Again, the great merchants not choosing to sit idle, keep up the high prices by their purchases: they may no doubt gain occasionally by these speculations, but they generally lose. Witness the disasters and failures of the year 1841. What chance of prosperity can there be for a trade that at the moment of the departure of the goods, hardly ever promises any profit at the current prices in the place of destination, and which consequently lives only on the hope of an eventual rise? How will it be with it in a few years, when the canals and railroads projected in Germany, shall have been finished? At this day the wheat of Nuremberg and Bamberg, reaches England by way of Amsterdam.
But without going so far, Southern Russia now sees growing up against it in the Black Sea a competition, which is daily becoming more formidable. The principalities of the Danube, have made immense progress in ten years, in consequence of the franchises and privileges bestowed on them by the treaty of Adrianople. Galatz and Ibraïla, now furnish a considerable quantity of corn to the foreigner; and in spite of the disadvantages of having to ascend the Danube, masters of vessels now prefer repairing to those ports on account of their administrative facilities, and above all by reason of the commercial resources which importation offers there. In 1839, Marseilles bought more than 4000 hectolitres of wheat in the markets of Galatz and Ibraïla, whilst the port of Odessa hardly supplied it with twice that quantity. We will return by and by to the question of the Danube, when we come to speak of Bessarabia.
Another measure fatal to the corn-trade, was the decision of the government with respect to the confiscated lands of the Poles. After the revolution of 1831, more than 423,000 peasants were sequestrated to the crown. These peasants occupied extremely fertile regions lying very near Odessa: Ouman, the property of Alexander Potocki, made part of them. The government committed the management of these lands to public servants, selected chiefly from among the retired veteran officers, or those who had been incapacitated for service by their wounds. Under such management, pillage and the most utter neglect were the order of the day, and the consequence was, that the lands produced literally nothing to the crown, and served only to enrich their administrators. Weary of this disorder, the government determined in 1836 to detach nearly 93,000 peasants from these lands, and incorporate them with the military colonies. Nor did it stop there, but under pretext of removing all opportunity for extortion on the part of its servants, it issued an order in 1840, confining the new colonists to the cultivation of oats and barley, and forbidding them to sow wheat for exportation. These regulations, occasioned by the general corruption of the public servants, which the imperial will is powerless to check, produced melancholy results for the trade of Odessa, and that town was suddenly deprived of the agricultural produce it used to draw from the fertile soil of Ouman.
We must now enter into some considerations, bearing more immediately on Odessa itself. The credit that town enjoys abroad is extremely limited by the inordinate privileges of the imperial bank. In cases of bankruptcy, that establishment is entitled to disregard all competing claims, and to pay itself immediately by the sale of the real and personal property of its debtor, without reference to his other creditors; it is entitled to pay itself: 1st. the capital lent; 2nd. A surcharge of eight per cent., called re-exchange, arising out of the cost of brokerage and renewal of bills every three months; and, 3rd. Interest on the capital and surcharge, at the rate of 1–½ per cent, per month, until the whole debt is liquidated. The fatal effects of such a system may easily be conceived; the merchants of Odessa can seldom establish a credit with foreign houses.
As for the uses of the bank, they consist: 1st. In discounting town bills that have not more than four months to run; 2nd. In making advances on goods;