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Chapter 34 - Economic reform (January-March, 1872)

Economic Reform]

The Russian Empire under Alexander III and Finance Minister Nikolai von Bunge undergoes a remarkable economic reform. The bank of the Russian Empire was reformed, creating the Central Bank of Saint Petersburg, with branches dedicated to the creation of currency, loans and money storage, currency exchange, and the concentration of Russian gold and silver throughout the Russian Empire.

It was decided that the Russian Empire would adopt bimetallism, adopting at least in part the gold standard but also preserving the silver standard, being cautious about economic change.

Russia is still a developing country, but it is also a great power that must take care of itself economically.

The greatest reform occurred with respect to banks and loans, with the creation of the Peasant Land Bank, and the creation of various private credit institutions that emerged in the Russian industrial-economic growth.

The Peasant Bank Land was part of a major land reform project, allowing peasants low-interest loans for land administration and purchase. These loans turned out to be higher for noblemen who did not meet certain characteristics (such as living and managing their productive lands).

In addition, successful banks such as those of the Gintsburgs and Polyakovs families (descendants of tax collectors) were formed.

The banking and economic reform allowed further stabilization of the ruble. Russia on the other hand experienced an economic explosion greater than in previous times, literacy was growing, foreign investment, the metallurgical industry, agriculture, etc.

The Russian Empire was changing from being a largely feudal state to a more capitalist and technologically modern state, with growing industry.

Other large Russian companies would emerge during this time, or some companies of the Russian Empire would experience the beginning or a first economic golden age.

The Zaitsevs and Brodskys started sugar production empires around this time.

Speaking of other reforms, Minister Nikolai von Bunge with the support of Tsar Alexander III strictly prohibits child labor, with serious fiscal problems for those factories or companies that use this type of labor.

In part, such decisions help to focus children on other tasks such as education or sports.

It was decided to expand the Mutual Assistance Cashier (or KVP for Russians), a mutual aid fund for workers, although it was not a union and the strike was still prohibited.

There were also more Mining Associations (created for the first time in 1861), in the Urals and Siberia, again, not exactly unions, but they were groups in charge of solving problems and social insurance of miners in the regions of Siberia and the Urals.

Yet Russia still had to improve its labor laws in several respects.

Although obviously not everything could be good, eventually certain actions would cause problems for the Russian government or its society as a whole.

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Administratively speaking, large-scale urban planning begins, Russian cities now began to be deeply planned for their economic development according to the Zemstvo commission "State Urban Planning", developed by the Ministry of Finance.

The urban development of Russia in its early phases focused on practicality, roads, hospitals, apartments (common and student) and schools.

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[Sports culture: The first]

The first Russian preliminaries have come to an end, and with this it is 4 teams out of the 16 teams that will participate in the Russian Soccer League.

*Smolensk:A mainly middle-class Russian team, from the growing city of Smolensk. City accompanied by a remarkable history that now is sposoring its own team of football.

* Arkhangelsk: Oldest team in the Russian Empire, principally middle class sponsored by industrialists of the region.

* Kharkov: A team currently formed by a cooperative of the working class of Kharkov, a city in social and economic growth.

* Novosibirsk: The second football team of Siberia (after Omsk and Chita, but older than Vladivostok) formed mainly by industrialist initiative.

There are then 12 teams to be chosen.

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[Paneslavism: Romanov Scholarship]

Emperor Alexander III in the great economic boom of 1872 launched the "Romanov Scholarship", a scholarship to attend secondary and tertiary education in the Russian Empire for the various members of the "Slavdom" by ethnicity (Serbs, Bulgarians, Macedonians, Slavs, Poles , Sorbs, Montenegrins, Croats, Slovenians, Slovaks, Czechs, etc) and nationality (since a "Russian" is not just an ethnic Slavic, it can also apply to those with Russian citizenship).

That is, Slavs and descendants who live within the Russian Empire, and outside of it, depending on the application.

Under the terms of the scholarship, no candidate would be rejected because of religion or place of birth.

The use of Slavdom was a propaganda tactic towards the nationalist and Slavophile-Pan-Slavic mass of the Russian Empire, the Moskva for example greatly applauded the intention to attract more Slavs from abroad to Russia.

The mass that most began to apply for the Romanov Scholarship outside of Russia were Serbs and Bulgarians, other Slavic groups showed less interest (although there were people willing to go).

Among them, a young Austro-Hungarian of Slavic origin attended to attend his final year and then go on to tertiary education, Nikola Tesla. The main interest of the young Tesla (and that by sheer luck he was able to convince his father) was the Russian advance in electricity.

Nationally in the Russian Empire those who benefited most of course were the members of All Russia, the Great Russians, Little Russians (Ukrainians) and White Russians (Belarusians).

Although some Poles currently dared to try the Romanov scholarship. Leaving at least a small generation of more Russophile Poles during its first year.

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[German-Italian-Russian Summit]

It was clear that the German Empire and the Kingdom of Italy were seeking to invite Russia to a summit for diplomacy, Russia was a continental power, and one of the great powers.

Being a great power in the 19th century meant that the interests of that state were going to be taken into account in most cases.

In this case Germany and Italy brought Russia to have a counterweight against Austria and France, or at least to prevent Russia from allying with Austria-Hungary and France (which would surround Germany by land).

"But there is something very important. What does Russia get by allying with Germany and Italy? That it does not get by staying neutral or allying with France and Austria-Hungary." Emperor Alexander III holds his conversations with the foreigners.

Otto von Bismarck and Kaiser Wilhelm I spoke for a few moments. Tsar Alexander III knew German but by protocol he decided to ignore the whispers among the Germans.

"The German economy and the Russian economy are constantly growing, and Germany is a much more stable state than Austria-Hungary or France at the moment. Unlike the French, German investments can continue to flow regularly to Russia." Otto von Bismarck testified in a remarkable analysis of the situation. "Unlike Austria and France, Prussia was neutral in the war between Russia and the Ottomans. And Russia was neutral towards us in our recent wars, that's a good start for our bilateral relationships"

"Italy has an outlet to the Mediterranean, Russian exports could increase there if we strengthen ties." The Italian delegation proposes.

From the beginning, Russia made clear its demands if it was to enter into an alliance with Germany and Italy. It would be a purely defensive war.

The most basic terms of the alliance for the three parts were this ones:

* Mutual support in case any of the three countries were attacked by another great power (read: Austria-Hungary and France, although the United Kingdom is also included in the list of great powers).

* Germany and Russia will support Italy if it is attacked by France and / or Austria-Hungary without provocation.

* Italy and Russia will help Germany if she is attacked by France and / or Austria-Hungary.

* Germany and Italy will help Russia if it is attacked by Austria-Hungary and / or France.

Proposals that Wilhelm I, Alexander III and Victor Emmanuel II could agree with, being simple and practical, coinciding with the main German-Italian objectives.

In addition, the promises of economic support and trade agreements between Russia and the other signatories (Germany and Italy) were implicit.

But then there were other Russian wishes:

* Diplomatic support regarding the possibility of a Russo-Ottoman (Turkish) war.

Italian wishes:

* Diplomatic support for Italian colonial interests in North Africa and other regions.

German wishes:

* Tripartite consultation in the case of any wish on territorial changes in the Balkans, the Adriatic Sea, the Aegean Sea and the Austro-Hungarian territory.

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Chancellor Otto von Bismarck could pressure Italy to accept the terms in the Balkans, the Adriatic, the Aegean and Austria-Hungary, but on the other hand, the issue was to convince Russia.

The Russian Empire had its eyes on the Ottoman Empire, which Bismarck knew would alienate the UK and could potentially cause an Austro-Hungarian intervention against the possible alliance.

At the end of the day, because Tsar Alexander III considered that the proposals did not suit Russian interests, Russia did not join the Dual Alliance of Italy and Germany.

The clauses of said agreement would remain secret until many years later, on the other hand there were mixed feelings for all European politics. Fear and relief that Russia had not joined the German-Italian alliance.

However parts of the arguments were true, German investments in Russian heavy industry would continue to increase in the coming years while France remained unstable.

In the UK it was still unclear who was the most dangerous, Russia or one of the European alliances. At the end of the day, Russia was still considered a barbarian land among various circles, whose closest encounter with Russia was the spread of the Crimean War or La Russie in 1839 (written by Marquis de Custine).

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[Central Asia: Turkmenistan Mission]

February came, and Russia finally decided to start planning the conquest of the Turkmen lands, for this the general Konstantin Petrovich von Kaufmann put commander Mikhail Dmitrievich Skobelev in charge of the expedition.

This decision would lead Skobelev to lead the so-called Akhal-Teke oasis expedition, also called the Akhal-Tekin expedition or the Geok-Tepe fortress expedition.

From the first moment, Commander Skobelev focused his attention on administrative-military questions to resolve the pacification of the region, studying the roads, paths, routes and resources of the Turkmen in great detail.

The expedition manifested itself in 1873.

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[International]

On the African continent, Yohannes IV is crowned emperor in the ancient city of Axum, the last time this happened was more than 500 years ago.

A rather surprising astronomical event occurs, a solar flare associated with a geomagnetic storm causes the Northern Lights to be seen as far south as Cuba, in the Caribbean.

Authorities in the Spanish Philippines, also known as New Spain, execute priests José Burgos, Mariano Gómez and Jacinto Zamora. The charges are subversion, related to a mutiny by local military personnel.

Whether or not such a riot seems to signify the beginning of Philippine nationalism.

The Orleanists and Legitimists to the French throne began to prepare their coup against the young emperor Napoleon IV, motivated by his political support, social and economic instability, and the current difficulties of the Bonapartist government in standing after the Franco war. Prussia and the abdication of the former Emperor Napoleon III.

Emperor Napoleon IV was barely 15 years old in March, but in the Second French Empire things were not going to resolve themselves just because Napoleon IV came of age.

There are still opponents of the monarchy-conservatives, liberal-republicans and other types of radicals. France at this time has been seriously losing its economic-military power.

Patrice de MacMahon, 6th Marquis of MacMahon and an important military commander in the recent Franco-Prussian War (and Legitimist), agreed to participate after meeting Henry V, willing to maintain part of the current French system.

On the other hand Otto von Bismarck tries to achieve a treaty with the British to secure the commercial lines towards German Southeast Asia.

However Prime Minister William Ewart Gladstone is obviously angry that the Germans took Luxembourg and Alsacoa-Lorraine (something he was against).

Both Bismarck and Gladstone want to keep the peace in Europe, but the current German movements leave much to be desired for Gladstone.