Turning to our other ally, Russia, we find that she underwent a course of treatment similar to that which well-nigh prussianized Italy. In the Tsardom the task was especially easy owing largely to the advantages offered to Teutonic immigrants from the days of yore, to the German-speaking inhabitants of the Baltic provinces, to the proselytizing German schools which flourish in Petrograd, Moscow, Odessa, Kieff, Saratoff, Simbirsk, Tiflis, Warsaw and other centres, to German colonies scattered over Russia and to religious sects. During the Manchurian campaign the Commercial Treaty drafted in Berlin, and at first denounced by Count Witte as ruinous to his country, was agreed to and signed.[31] It was Hobson’s choice. After that the empire, which had already been a favourite and fruitful field for Germany’s experiments, became one of the most copious sources of her national prosperity. Commercial push and political espionage were so thoroughly fused that no line of demarcation remained visible.

Russia’s losses were proportionate and at the time were computed at 35,000,000 marks a year. In the Tsardom the imposition of this tribute was resented. By the Teutons their economic victory was followed by political influence. Their agents and spies abounded everywhere. Time passed, and as relations between the two empires grew tenser, the danger defined itself in sharper outline to the eyes of Russian statesmen, who resolved, however, to postpone remedial measures until the day should come for the discussion of the renewal of the Commercial Treaty. The knowledge that Russia would refuse either to prolong that one-sided arrangement or to make another like it, and that the consequences of this refusal would be disastrous to Germany’s economic and financial position, stimulated German statesmen to bring matters to a head before Russia could back her recalcitrance with a reorganized army, and was one of the contributory causes of the European struggle.

Since then the war has flashed a brilliant light on the dark places of German intrigue, and some of the sights revealed are hardly credible. Whithersoever one turns one is confronted with the same striking phenomenon; the preponderant influence wielded in almost every walk of life, private and public, by institutions and individuals who in some open or clandestine way are under German tutelage. In the sphere of economics this is particularly noticeable. Three-fourths of Russia’s foreign trade was in German hands. Dealings between Russians and foreigners were transacted chiefly through Germany. Imports and exports passed principally through German offices, established throughout the length and breadth of the Tsardom, and commercial dealings were conducted by merchants in Berlin, Hamburg, KÖnigsberg, Leipzig, and other centres of the Fatherland. Merchandise was carried in and out of the country by German railway lines, or to German ports in German bottoms. Even American cotton and Australian wool and tallow were disposed of in Russia by German middlemen who had them conveyed in German steamers. On the other hand, Russian corn, sugar, spirits, were taken to Europe by German transport firms. Intending Russian emigrants were sought out by agents of German steamship companies, sent to German ports and accommodated on German steamers. In brief, whenever the Tsar’s subjects had anything to sell to the foreigner or to buy from him, their first step was to go in search of a German, through whom the sale or purchase might be effected.

In domestic economics the same phenomenon was everywhere noticeable. To a Russian’s success in almost any commercial or industrial venture, the co-operation of the German was an indispensable condition. Individual enterprise might sow and governmental legislation might water, but it was German goodwill that vouchsafed the fruit. Wherever Russian industry showed its head, Germans flocked thither to take the concern in hand, regulate its growth, and co-ordinate its effects with those of other industries which were under the patronage of German banks. It was in vain that Witte and his fellow workers threw up barriers that seemed impassable to German enterprise. They were turned with ease and rapidity. Thus in order to protect the textile industries of Moscow, prohibitive tariffs were levied on textile fabrics of German origin. But the irrepressible Teuton crossed the frontier, established his factories in Poland, founded the German-Jewish town of Lodz, and snapped his fingers at the Government of the Tsar. And forthwith Lodz assumed all the characteristics of a German city. German schools flourished there, German agents abounded, German became the recognized language, and permission was at one time given to German reserves there, to undergo their periodic term of military drill for the Kaiser’s army!

Of the three Entente Powers challenged by Germany in 1914, Russia was therefore by far the worst equipped for the unwonted effort which the European War demanded of each. For her liberty of action, and, in some cases, even her liberty of choice, was hampered by the financial, economic, and political network which Germany had slowly and almost imperceptibly woven over the entire population. In the fine meshes of this net several organs of national life were caught, immobilized and connected with the Fatherland. And it was not until they strove to move and discharge their functions on behalf of the Russian nation that they became fully conscious of their plight. German intrigue and subterranean scheming, under the mask of sympathy—now for the autocracy, now for socialism—had effected far-reaching changes in the Empire, which few even among observant politicians appear to have realized. These innovations were embodied in the thraldom of Russian banks to German financial institutions; in the splendid organization which kept old German colonies that were scattered over the Empire in touch with each other, and co-ordinated their action; in the eloquent Russian advocates and influential dignitaries who contributed to the furtherance of German ideas and interests and swayed the policy of the State; and in the dependence of the great Russian Empire on its enemy for munitions, and almost every other technical necessary of war.

From the days of the great Peter this Teuton influence had been creeping imperceptibly over the Slav race like some cancerous soul-growth. It infused a subtle poison in the State organism, the most appalling effects of which are only now assuming visible shape. Two palace revolutions were brought about by a national reaction against the predominance of this foreign influence, which was resented by the people not merely because it was alien, but largely also because of its unscrupulous and ruthless character. Some of the most atrocious cruelties which students of Russian history associate with court and political life in the Tsardom, during the best part of two centuries, had their sources in the sheer malignity of Teuton Ministers who spoke and acted in the name of the autocrat of the moment. It is characteristic that the Minister MÜnnich, in the school for officers which he founded in Petersburg, had Russian history eliminated from the programme as superfluous, German history being allowed to remain; and that out of 255 students, only eighteen studied the Russian language, whereas 237 applied themselves to German. The first Sovereign to rebel against this Teuton supremacy in his Empire was the late Alexander III., who made no secret of his profound dislike for German ways. But as the Russian proverb has it, “one man in the field, is not a soldier.” Hercules, to cleanse the Augean stables, had need of the water of a river, and the anti-German Tsar could not hope to make headway without the co-operation of his army of officials, who themselves were permeated with the Teutonic spirit. And as passive resistance was their attitude, his purging scheme was abortive. As a matter of cool calculation, the only hope of freeing Russia from the meshes of the German net was a war between the two peoples. And all radical legislation had therefore to be postponed.

In the meanwhile the Germans, having organized and primed their agents, have been teutonizing Russia cunningly and effectively. With the precious assistance of their own kith and kin settled in the Baltic provinces and elsewhere, they employed the never-failing expedient of taking an active and, when possible, a leading part in domestic Russian politics, and invariably on both sides. At the Court they have always been well represented, and in the ranks of the inarticulate and Parliamentary Opposition they have also been playing a noteworthy part. In factories and other industrial and commercial institutions they arranged strikes, called indignation meetings and hatched conspiracies at critical junctures when it was to Germany’s interest that Russia’s attention should be riveted upon home affairs. No Parliamentary Bill could be privately drafted, no railway scheme could be secretly discussed, no Ministerial measure could be canvassed; nay, seldom could a confidential report be drawn up to the Emperor himself without the knowledge of the Berlin authorities and the occasional intervention of their agents in Petrograd. It is interesting to note that in 1914 a secret memorandum of a highly confidential character, from a statesman to the Tsar, found its way to Berlin soon after it had been presented to the monarch and had a certain influence on the decisions which led to the war.

The work of economic interpenetration carried on under the Ægis of such powerful patrons and resourceful coadjutors was greatly facilitated by the German colonies scattered over Russia for generations. Many of these foreigners had been invited by Catherine II., receiving large grants of land and various privileges which enabled them to flourish at the expense of the native population, on which they looked down with open contempt.

At that time the extent of free land was considerable in Bessarabia, Volhynia, and the provinces of Kherson, Ekaterinoslav, Saratoff and Samara, where down to the year 1915 entire cantons were inhabited by Germans. In the Novouzensky canton, for example, they constituted 40 per cent. of the population, in that of Berdyansk 17 per cent. and in the Akkerman canton 14 per cent. The inducements which had been held out to them to settle in these fertile districts were irresistible. Each colonist received fifty dessiatines of land,[32] extensive pastures for cattle, grants for the journey and the cost of stocking his farm, absolute immunity from all taxes, rates and military service, and complete local autonomy apart from that of the Russian community.

The Germans whom these boons attracted were of two categories: sectarians (Menonites), who eschewed military service on religious grounds; and ne’er-do-wells, who objected to the restraints of law and justice in the Fatherland; besides a considerable percentage of tramps. Most of the men of the second category fared as badly in their adopted country as they had in their native land. They gave themselves up to intemperance and kindred vices, and their descendants still lead a hand-to-mouth existence in the Tsardom which their privileges alone could not better. The sectarians, on the other hand, formed a compact co-operative body, and by dint of persevering industry and shrewdness, made the most of their favoured position and prospered. With their common savings they purchased such vast tracts of land from the neighbouring gentry that in time the Russian population was constrained to emigrate to Siberia and other distant parts of the Empire. And when the present conflict was unchained they were in possession of an area of fertile land bigger than Pomerania, which is one of the largest provinces of Prussia. In the Volga country alone they owned 879,420 dessiatines, or, say, 1,884,471 acres! In the south of Russia there are 519 German settlements, and the area they occupy is estimated at more than 31,252 square versts.[33] And the land of the country gentry in the neighbouring districts was fast passing into their hands.[34] They have their own local government, their banks which help them to acquire Russian land, their insurance companies and their schools. In short, they were a compact little State within the Tsardom.

The sectarians still hold aloof from the native population. Indeed, almost the only relations in which they stand to Russians are those of masters and agricultural labourers. They hire Russian peasants to till their land and they compel them to work hard for small wages. Many of these colonies have the appearance of little German towns. They have added industrial pursuits to agricultural, possess flour mills, timber mills, and plough their farms with German implements. They are aggressively German in sentiment, language, character and Kultur.

That in brief is the history of one type of German colonization in the Tsardom. There is another at which it may not be amiss to cast a glance. It is of recent date and consists of German elements already resident in the Tsardom. It is a monument of Teuton audacity and Slav forbearance. One might ransack the history of European nations without finding another such instance of downright effrontery and disloyalty on the part of a privileged section of the community, and of easy-going toleration on the part of the State. The German elements of the provinces of Kurland and Livland, subjects of the Tsar though they are, resolved after the abortive revolution of 1906 to raise a living wall against the rising tide of Russian influence. And as is the wont of the Teuton throughout the world, they employed Russia’s men and Russia’s money to achieve their anti-Russian object. This object was to attract some twenty thousand Germans to the province, provide them with farms on easy terms, and look to time, the industry of the men, the fecundity of the women and the teachings of the schools to create a new German State in that part of the Russian Empire. It was part of the functions of these colonists, we are frankly told by their historiographer,[35] “to serve, even as armed defenders” against the Russians! In no other country on the globe is such a scheme conceivable.

The undertaking was organized and carried out by two brothers, BrÖdrich by name, in one of whom the Tsar’s Government placed implicit confidence and evinced it by appointing him to be chief of the police in the canton of Goldingen. In this post of trust the German leader was able to further the anti-Russian cause materially. And he utilized his opportunities to the utmost for the purpose during the five years of his tenure of office. He himself travelled in search of suitable German colonists and had numerous agents on the look-out for such. He finally got about 13,000 to settle in Kurland and 7000 in Livland. The Kurlandische Kreditverein advanced the necessary capital as mortgagee of the land, and within five or six years many of the colonists had already paid off their debts, sold their farms to other Germans and bought untilled land in the neighbourhood for themselves. The school was responsible for the required standard of German patriotism. The success of the experiment exceeded the highest expectations, and to-day the man of confidence of the Tsar’s Government, Karl Robert BrÖdrich, is become chief of the local administration under Wilhelm II., and deservedly enjoys the confidence of the Kaiser’s Ministers.

This type of German invasion in Russia, especially in recent years, was carried out with a supreme disdain of the laws of the Empire which is equally characteristic of those who display and those who tolerate it. In virtue of a law inscribed in the Statute Book on 14/26 March 1887, foreigners are not permitted to purchase or own land outside the cities in the provinces of Kurland and Livland, whereas in Esthland there is no such prohibition. Yet in Esthland only 6396 dessiatines belong to Germans, whereas in the two provinces whence they are absolutely excluded Germans possess 36,852 dessiatines and 6396 dessiatines respectively! In the territory of the Don Cossacks no foreigner may possess land under any circumstance, yet the Germans own there 3700 dessiatines. Again, in the provinces of Podolia and Volhynia, where, for State reasons, the ownership of land is allowed only to Russians, Germans purchased and own 63,831 dessiatines in the latter province and 12,475 in the former. Altogether the amount of Russian territory which passed into the hands of the Teutons is enormous. In July 1915, when the inventory was not yet completed, the area inscribed had reached the total of 2,450,000 dessiatines or about 5,250,000 acres.[36] “This figure—” we are assured—“is still far from complete, inasmuch as a large number of data from various provinces have not been included in it, and there are no entries at all for the three provinces of the kingdom of Poland where military operations are going on and where unhappily the presence of German colonists has been utilized by the German General Staff.”[37]

In Poland there were well over 500,000 German colonists, besides a large number of new-comers, whose unwritten “privileges” included, as we saw, occasional permission to their young men liable to serve a few weeks annually in the ranks of the German army to discharge that duty under German officers in Russian Poland! In the Ukraine and the most fertile districts of the Volga basin hundreds of thousands of Germans lived, throve, and upheld the traditions as well as the language of the Fatherland, under the eyes of tolerant local authorities.

Hard by old Novgorod, the once famous Russian republic and cradle of the Russian State, a number of German colonists settled some 150 years ago. The population of two of these settlements numbers several thousand souls, descendants of the original settlers, in the fourth and fifth generation. They had had time enough, one would think, during that century-and-a-half to assimilate Russian ways and to acquire a thorough knowledge of the Russian tongue. Well, these colonists do not speak the language of the country in which they and their forbears have been living for over 150 years! They still consider themselves German, and if you ask them who their sovereign is they answer unhesitatingly—Kaiser Wilhelm! During Russia’s recent military reverses, which threatened for a time to culminate in the capture of Riga, and possibly of Petrograd as well, these parasites in the body politic of Russia displayed their joy in various unseemly ways, which aroused the indignation of their Slav neighbours. In one of their schools the Russian visiting authorities were received with demonstrations of hostility. It is usual for the portrait of the Russian Tsar to be set up in every school in the Empire. In one of these educational establishments it was discovered in the lavatory with the eyes gouged out.

Long before this war Berlin had become alive to the importance of these colonies as factors in the work of pacific interpenetration and political propaganda. Wandering teachers from the Fatherland were accordingly sent among them to link them up with their brethren at home, and fan the embers of patriotism which long residence in the Tsardom had not quenched. Little by little, the political fruits of these apostolic labours began to show themselves: the colonists, whose main preoccupation had been to occupy the most fertile soil in the district, began to take over the approaches to Russia’s strategic plans, and to display an absorbing interest in Russian politics. Several Zemstvos fell into their hands, and were practically controlled by them, and they contrived to gain considerable influence in the elections to the Duma.

The chance of a useful part for these German colonies to perform having thus unexpectedly arisen on the horizon, they seized it with promptitude and utilized it with the thoroughness that characterizes their race. The numbers prosperity, and influence of the colonies grew rapidly. Land that had belonged to the Russian peasantry was taken over by the foreign parasites, and while the Tsar’s Minister, were toiling and moiling to transport hundreds of thousands of Russian husbandmen and their families in search of land beyond the Ural Mountains to the virgin forests of Eastern Siberia, there in the very heart of European Russia were hundreds of thousands of intruders, who, with the help of their German Colonial banks, were acquiring additional tracts of land from which their native owners had been ousted.

I pointed out this anomaly over and over again, and long before the war I described it in review articles. The well-known German Professor, Hans DelbrÜck, replied shortly afterwards, in the Contemporary Review,[38] denying point-blank the truth of my statements, which were drawn from official sources, and confirmed by the evidence of my senses. For I had visited several of the colonies in question. Besides these German settlements, there had also been a number of German industrial and commercial establishments in the Empire which, at first nowise harmful, were afterwards taken in hand by emissaries from Berlin, linked up together, affiliated to one or other of the great financial houses of Germany, and transformed into redoubtable instruments of Teuton domination. Capital was subscribed, syndicates were formed, railway-building and electro-technical industries were organized, Russia’s railways policy modified, and metallurgical works were monopolized by the Germans. Here again financial institutions discharged the functions of motive power. At the beginning, about thirty million roubles were subscribed for the creation of banks, and by dint of push, importunity, secret influence and intrigue, these institutions received on deposit the savings of the Russian peasant, merchant, landowner, and official, which finally mounted up to several hundreds of millions. With this money they were enabled to control the markets and constrain Russian institutions and individuals to bow to their will.

Contracts in Russia were appropriately drafted in the German language, being directed to the promotion of German interests. Incipient and even long-established Russian firms were either killed by unfair competition or compelled to enter the syndicates and forego their national character. Inventions and new appliances were tested, plagiarized, and employed in the service of the Fatherland. And while preparing for the war which was to set Germany above the nations—Deutschland Über Alles—these syndicates followed the policy dictated from Berlin, sowed discord between Russian firms and various State departments, organized strikes and paid the strikers in competing establishments, and thus deprived the Russian State of industrial organs on which it would necessarily have to rely in war-time. To give but one example of this cleverly devised attack, the cotton industry of the Tsardom was in the hands of the Germans when war was declared. Another of the most important groups of Russian industries is that of naphtha. When this precious liquid is dear, many of the lesser works have to close; when it is cheap, even small industrial enterprises are able to go on working. By way of obtaining complete control of this vital element of Russia’s industrial life, the Deutsche Bank went to work to form a syndicate, had a number of private wells bought up, united them in one, acquired numerous shares in Russian oil companies, and had the manager of another German bank—the well-known Disconto Gesellschaft—made a member of the Board of the Russian Nobel Company.

One of the results of this ingenious deal was a sharp rise in the prices of all the products and some of the by-products of naphtha. The increase continued at an alarming rate, filling the pockets of the German shareholders, whose syndicates received the oil at cost price for their own consumption, while Russian firms were forced to acquire it at the market value or to shut down their works. Amongst the worst sufferers from these anti-Russian tactics were the steam-navigation companies of the Volga, which had jealously warded off all attempts to germanize them.

In conditions as restrictive as these, it is well-nigh impossible for Russian industry to hold its own, much less prosper and grow. And only the most vigorous and best-organized enterprises in the Empire, like that of the Morozoffs in Moscow, managed to pursue their way unscathed. In Russian Poland, where textile industries flourished, and the total annual production was valued at 294,000,000 roubles, over one-third of these industries belonged to the Germans, whose yearly output amounted to more than one-half of the grand total, i.e., to 150,000,000 roubles.[39] In all these industrial and commercial campaigns the German prime movers had carried out their operations more or less openly. But where interests affecting the defences of the Empire were concerned, caution was the first condition of success, and, as usual, the Teutons proved supple and adaptable. By way of levying an attack against the shipbuilding industry, they pushed shaky Russian concerns into the foreground, while studiously keeping themselves out of view. Thus in one case new Russian banks were founded, and old ones in a state of decay were revived by means of German capital and encouraged to form a syndicate with the Nikolayeffsky shipbuilding works and certain foreign banks. An official inquiry, presided over by Senator Neidhardt, lately revealed the significant fact that each firm of this syndicate had bound itself to demand identical prices for the construction of Russian ships, and under no circumstances to abate an iota of the demand. And it was further agreed that these prices should be so calculated as to yield to the members of the syndicate one hundred per cent. profit.

This allegation is not a mere inference, nor a rumour. It is an established fact. Neither is the proof circumstantial; it consists of the original agreement in writing signed by the authorized representatives of the institutions concerned. The data were laid before the members of the Russian Duma by A.N. Khvostoff.[40] Thus the Russian peasant is taxed for the creation of a fleet, and the Duma votes an initial credit of, say, 500,000,000 roubles for the purpose. And if the shipbuilding companies and their financial bankers were honest the aim could be achieved. But in the circumstances what it comes to is that the nation must pay 500,000,000 more, in order to get what it wants. And this tax of a hundred per cent. is levied by German parasites on the Russian people. One might scrutinize the history of corruption in every country of Europe without finding anything to beat this Teutonic device, which at the same time gratified the cupidity of the money-makers and dealt a stunning blow at the Russian State. Half of the shares of the celebrated Putiloff munitions factory are said to have belonged to the Austrian Skoda Works.

At the outset of the present war, when Russia’s needs were growing greater and more pressing, the works controlled by Germans and Germany’s agents diminished their output steadily. In lieu of turning out, say, 30,000 poods of iron they would produce only 5,000, and offer instead of the remainder verbal explanations to the effect that lack of fuel or damage to the machinery had caused the diminution. Again, one of these ubiquitous banks buys a large amount of corn or sugar, but instead of having it conveyed to the districts suffering from a dearth of that commodity, deposits it in a safe place and waits. In the meantime prices go up until they reach the prohibition level. Then the bank sells its stores in small quantities. The people suffer, murmur, and blame the Government. Nor is it only the average man who thus complains. In the Duma the authorities have been severely blamed for leaving the population to the mercy of those money-grubbers whom German capital and Russian tribute are making rich. “Averse to go to the root of the matter,” one Deputy complained, “the Government punishes a woman who, on the market sells a herring five copecks dearer than the current price, yet at the same time it permits the Governors to promulgate their own arbitrary laws regulating imports and exports from their own provinces. In this way Russia is split up into sixty different regions, each one of which pursues its own policy unchecked.”

The importance of the rÔle played by the banks financed by German capital in Russia can hardly be overstated. They advance money on the crops and take railway and steamship invoices as guarantees—they are centres of information respecting everybody who resides and everything that goes on in the district and the province. I write with personal knowledge of their working, for I watched it at close quarters in the Volga district and the Caucasus with the assistance of an experienced bank manager. Their political influence can be far-reaching, and the services which they are enabled to render to the Fatherland are appreciable. And they rendered them willingly. As extenders of Germany’s economic power in the Empire they merited uncommonly well of their own kindred. Thus of Russia’s total imports in the year 1910, which were valued at 953,000,000 roubles, Germany alone contributed goods computed at 440,000,000. These consisted mainly of raw cotton, machinery, prepared skins, chemical products, and wool.

How steadily our rivals kept ousting the British out of Russian markets by those means may be gathered from the following comparative tables. The percentage of Russia’s requirements supplied by the two competing nations varied, during the fifteen years between 1898 and 1913, as follows—

In the year 1901 Germany supplied 31 per cent. of the total value of Russia’s imports; in 1905 her contribution was 42 per cent.; and the increase went steadily forward, reaching over 50 per cent. in the year 1913. If we add to this the net profits of German industrial and commercial undertakings in the Russian Empire, we may form a notion of the appropriateness of the comparison which likened the Tsardom to a vast German colony. The entire economic system of the country was rapidly approaching the colonial type. And to these economic results one should add the political.

It is fair to assume that at the outset the main motive of this industrial invasion was the quest of commercial profit. Subconsciously political objects may have been vaguely present to the minds of these pioneers, as indeed they have ever been to the various categories of German emigrants in every land, European and other. But in the first instance the creation of German industries in Russia was part of a deliberate plan to elude the heavy tariffs on manufactured goods. It has been aptly described by an Italian publicist[41] as legal contraband, and it supplies us with a striking example of German enterprise and tenacity. It attained its object fully. About three-fourths of the textile and metallurgical production in the Tsardom, the entire chemical industry, the breweries, 85 per cent. of the electrical works and 70 per cent. of gas production were German. And of the capital invested in private railways no less than 628,000,000 roubles belongs to Germans. Even Russian municipalities were wont to apply to Germany for their loans, and of the first issues of thirty-five Russian municipal loans no less than twenty-two were raised in the Fatherland.

The necessity of waging war against this potent enemy within the gates intensified Russia’s initial difficulties to an extent that can hardly be realized abroad, and was a constant source of unexpected and disconcerting obstacles. Some time before the opening of the war, a feeling of restiveness, an impulse to throw off the German yoke, had been gradually displaying itself in the Press, in commercial circles, and in the Duma. These aspirations and strivings were focussed in the firm resolve of the Russian Government, under M. Kokofftseff, to refuse to renew the Treaty of Commerce which was enabling Germany to flood the Empire with her manufactures and to extort a ruinous tribute from the Russian nation. Two years more and the negotiations on this burning topic would have been inaugurated, and there is little doubt in my mind—there was none in the mind of the late Count Witte—that the upshot of these conversations would have been a Russo-German war. For there was no other less drastic way of freeing the people from the domination of German technical industries and capital, and the consequent absorption of native enterprise.

When diplomatic relations were broken off, and war was finally declared, Germany was already the unavowed protectress of Russia. And when people point, as they frequently do, to the war as the greatest blunder ever committed by the Wilhelmstrasse since the Fatherland became one and indivisible, I feel unable to see with them eye to eye. Seemingly it was indeed an egregious mistake, but so obvious were the probable consequences which made it appear so that even a German of the Jingo type would have gladly avoided it had there not been another and less obvious side to the problem. We are not to forget that in Berlin it was perfectly well known that Russia was determined to withdraw from her Teutonic neighbour the series of one-sided privileges accorded to her by the then existing Treaty of Commerce, and that this determination would have been persisted in, even at the risk of war. And for war the year 1914 appeared to be far more auspicious to the German than any subsequent date.

Handicapped by these foreign parasites who were systematically deadening the force of its arm, the Russian nation stood its ground and Germany drew the sword.

Improvisation—the worst possible form of energy in a war crisis—was now the only resource left to the Tsar’s Ministers. And the financial problems had first of all to be faced. In this, as in other spheres, the country was bound by and to Germany, so that the task may fairly be characterized as one of the most arduous that was ever tackled by the Finance Minister of any country—even if we include the resourceful Calonne. And M. Bark, who had recently come into office, was new not only to the work, but also to the politics of finance in general. Happily, his predecessor, who, whatever his critics may advance to the contrary, was one of the most careful stewards the Empire has ever possessed, had accumulated in the Imperial Bank a gold reserve of over 1,603,000,000 roubles, besides a deposit abroad of 140,720,000 roubles. Incidentally it may be noted that no other bank in the world has ever disposed of such a vast gold reserve.

Although one of the richest countries in Europe, Russia’s wealth is still under the earth, and therefore merely potential. Her burden of debt was heavy. For at the outbreak of the war the disturbing effects of the Manchurian campaign and its domestic sequel, which had cost the country 3,016,000,000 roubles, had not yet been wholly shaken off. And, unlike her enemy, Russia had no special war fund to draw upon. As the national industries were unable to furnish the necessary supplies to the army, large orders had to be placed abroad and paid for in gold. At the same moment Russia’s export trade practically ceased, and together with it the one means of appreciably easing the strain. The issue of paper money in various forms was increased, loans were raised, private capital was withdrawn from the country, various less abundant sources of public revenue vanished, and the favourable balance of trade dropped from 442,000,000 roubles to 85,500,000. Germany, on the other hand, possessed her war fund, in addition to which she had levied a property tax of a milliard marks a year before the outbreak of hostilities; she further drew in enormous sums in gold from circulation, and generally mobilized her finances systematically.

But Russia was compelled to improvise, to make bricks without straw. Her war on a front of two thousand versts long had to be waged with whatever materials happened to be available. Japan—who, I have little doubt, will be found at the close of the great struggle to have benefited largely by her pains—exerted herself to provide munitions for her new friend and ally. The United States, Great Britain and France also contributed their quota. For many of these orders placed abroad gold had to be exported, and as Russia has no other natural way of importing gold but by selling corn, which there were no means of transporting, a sensible depreciation of the rouble resulted. Great Britain and France have also had to make heavy purchases abroad for their military needs, but these two countries can still export wares extensively and keep the payments in gold within certain limits. Even Italy receives a noteworthy part of her annual revenue in the shape of emigrants’ remittances from abroad. But once Russia’s gates were closed and her corn had to remain in the granaries, elevators, or at railway stations, the shortage in her revenue became absolute. During the first three months of the year 1915 the value of Russian exports over the Finnish frontier and the Caucasian coast of the Black Sea was only 23,000,000 roubles, showing a falling off of about 93 per cent., as compared with the worth of the produce exported during the corresponding three months of the preceding year.

It is a curious fact that part of this reduced trade continued to be carried on with Germany for months after the war had begun. A Russian publicist has remarked that at the opening of the campaign the voice of the nation was heard saying: “Corn we have in plenty, and vegetables and salt. It is we who feed Europe. Germany will therefore starve without our corn. Our armies may retreat, but our corn will go with them; and the more the Germans advance into Russia, the further they are away from their bread.” And in this the average Russian saw a pledge of victory. But before six months had lapsed, the everyday man grew indignant. For he learned that his corn was being conveyed through Finland and Sweden into Germany, and in such vast quantities as had never before been heard of. Here is a street scene illustrative of this traffic and the feelings it aroused. A long string of carts laden with flour blocks in one of the Petrograd streets leading to a bridge over the Neva; a General walking with his wife stops one of the drivers and asks: “Wherever are you taking the flour to?” “Where do you suppose? Sure we’re taking it to the Germans. We have to feed the creatures. They are a bit faint.” “There you see!” exclaimed the General to his wife; “didn’t I tell you? And every morning without fail the same long line of carts blocks the streets while our corn is being taken to the Germans!”[42] It is to be feared that this commerce has not yet wholly ceased. For the Russians, like ourselves, are considerate of the Germans.

That that story of trading with the enemy is no idle anecdote is evident from the circumstance, based on official Russian statistics, that during ten months from August to May, while the war was being waged relentlessly between the two empires, Russia bought from Germany no less than 36,000,000 roubles’ worth of manufactures. How much the Central Empires purchased from Russia, I am unable to say. That commerce is one of the almost inevitable consequences of improvisation and one of the most sinister. Some months after the outbreak of the war the Imperial Government levied a duty of a hundred per cent. on all commodities coming from Germany, Austria-Hungary, and Turkey. That was assumed to be a prohibitive tariff. But it failed to keep out imports from the Fatherland. In the one month of April 1915, Germany sent 3,000,000 roubles’ worth of manufactured goods into Russia, and in May 2,500,000 roubles’ worth. And the Allied Press was then descanting on the stagnation in German trade and the starvation of the German people. The explanation of this anomaly lies in the unforeseen and enormous scarcity and rise of prices in the home markets. Some metal wares—for instance, various kinds of instruments and of wire appliances, etc.—are not to be had in Russia for love or money, consequently a hundred per cent. duty is but a heavy tax paid by the consumer, not an effective prohibition.[43] Since then, I am assured, the Government has adopted stringent measures which some people believe to have put an end to that form of trading with the enemy.

It is hard for foreigners to realize the plight to which Russia has been reduced by the closing of her gates. As the Nile waters were the source of Egypt’s prosperity, so the abundant Russian harvests constitute the life-giving ichor which flows in the veins of the Russian nation. Without superfluous corn for exportation, the State would be unable to meet its obligations, maintain its solvency, or provide the motive power of progress. The exportation of agricultural produce was the fountain head not only of Russia’s material well-being, but of her moral and cultural evolution: everything, in a word, was dependent upon plentiful harvests and extensive sales of cereals abroad. And, suddenly, the gates were closed, the corn was stored, and the nation left without its revenue. Nobody but a Russian, or one who has lived long in the country, can realize fully all that this tremendous blow connotes. Parenthetically, it may be remarked that it adds a motive, and one of the most potent, to those which inspire the heroic sacrifices of the people, quickening the flame of devotion to their Allied cause. Russia is now literally fighting for her own liberty, for escape from the iron circle that shuts her off from the sea, and isolates her from the western world in which it is her ambition and her mission to play a helpful part.

One needs no further explanation why the Russian Government put pressure upon M. DelcassÉ and Sir Edward Grey to open the Dardanelles route for the Russian corn. Neither is it to be wondered at that while the Allied Forces in Gallipoli were still grappling with the Turks, the Tsar’s Ministers should have thrust into the foreground the question of Constantinople and the Straits, and insisted upon an immediate pragmatic settlement. True, that was not statesmanship; it was anything but political wisdom; but at any rate it was human on the part of all concerned. If this Titanic struggle, in which Russia is perhaps the greatest sufferer, is to bring her any palpable and enduring advantage, this, it was urged, can take but one form—freedom from the preposterous restraints that bar her way to the sea, and through the sea to the outside world. This and other pleas were powerful; but for this very reason and for the purpose of realizing her natural striving I personally would have temporarily negatived the Russian proposal and left nothing undone to ensure its withdrawal. For if I were asked to point to the efficient cause of the Allies’ present lamentable plight in the Near East, I should single out this premature arrangement and its necessary consequences. For Roumania and Bulgaria were at the moment as bitterly opposed to Russia’s overlordship in the Dardanelles and her possession of Constantinople as were France and Great Britain in the days of yore. And they embodied their opposition in acts.

[31] In June 1904.