Although Sergei Yulievich Witte was already the most powerful minister in the Russian civil administration in theory, due to his position as Chairman of the Council of Ministers, his influence was significantly bolstered by his concurrent role as Minister of Finance.
It was only at this point that the outside world began to grasp the changes in Russia's highest institutions.
"First Minister of Finance."
This title was used by the London Times to refer to Witte, now regarded as one of Russia's top officials.
The term "Prime Minister," which would later become synonymous with the role of the British Prime Minister starting from 1902, had its origins in this period. Thus, the British, who were already familiar with the term, quickly found a fitting equivalent.
The role of the Minister of Finance, needless to say, carries significant advantages. It is a position of high authority and control, capable of setting the tone for the nation's "overall economic life."
While earlier articles have described the cumbersome nature of Russia's vast bureaucratic departments, a more tangible analogy for the size and scope of the Russian Ministry of Finance might be:
Today, the functions of the Russian Ministry of Finance are equivalent to the combined roles of several U.S. departments: the Treasury, the Office of Management and Budget, the Department of Commerce, the Government Printing Office, the Bureau of Standards, the Internal Revenue Service, and the Coast Guard's land equivalent, the Border Guard, primarily tasked with anti-smuggling operations.
The Ministry is responsible for minting and printing currency, collecting tariffs, drafting the national budget with the assistance of the State Council, managing railway affairs, encouraging and frequently subsidizing commercial and industrial enterprises, lending to landowners and farmers, negotiating trade treaties, and deploying financial commissioners overseas.
These commissioners wield considerable influence in countries like Korea and Iran, and they would also come to play a significant role in dealings with the Qing Dynasty.
More importantly, as previously mentioned, the Minister of Finance has the authority to allocate or withhold funds from other departments, allowing Witte to reward, punish, or make favors.
Clearly, the Ministry of Finance wields extensive powers, and the energetic Witte had further expanded its scope.
Of course, how much power can actually be exercised is another matter. This depends on the emperor's preferences, Witte's energy and intelligence, the support and capability of subordinate bureaucrats, the attitude of the State Council, and non-governmental power groups, particularly influential political factions and hereditary nobles.
"Your Majesty, after consulting with several capable aides, I believe your idea of streamlining the departmental scope and establishing dedicated ministries is indeed feasible."
A few days later, despite his inner reservations, Witte carried out Nicholas's orders.
"Then Witte, what is the reluctance in your words about?"
Nicholas smiled, his tone light, which eased Witte's demeanor.
"I hope Your Majesty will reconsider the idea of reducing the powers of the Ministry of Finance."
"Well, what are your reasons?"
Nicholas nodded, acknowledging that he had also considered this.
"You previously mentioned that the proposed Council of Ministers would be similar to the British Cabinet system. However, Your Majesty may not know that during the establishment of the British Cabinet system, to ensure the Prime Minister's orders had weight, it was often the case that the First Minister of Finance also held this role."
Witte briefly explained the origins of the British Prime Minister and candidly admitted that without the substantial power of the Minister of Finance, he might not be able to command respect.
"I understand your point... But as far as I know, Witte, there should be three major issues on your mind recently."
"…Your Majesty is perceptive."
"Whether it's the construction of the Trans-Siberian Railway, the establishment of a liquor monopoly system, or the introduction of the gold standard in Russia, all require extraordinary effort from someone of great talent. While handling these state matters beneficial to Russia, do you still have enough focus to oversee the development of Russia's industry and commerce?"
Despite Witte's pride, he would have liked to respond that he could handle everything, but instead, he slightly lowered his imposing demeanor.
"So Your Majesty means to separate the industrial and commercial affairs under the Ministry of Finance into a distinct ministry?"
Nicholas's revelation clarified Witte's doubts.
Perhaps the emperor had never intended to completely sever the powers of the Ministry of Finance but merely to establish a separate department for industry and commerce.
Witte's thoughts churned as he tried to gauge Nicholas II's intentions, knowing it was difficult to read the emperor's psychological state from his expression.
"Yes, this will not significantly affect your powers as Minister of Finance. Also, since you haven't commented on my proposal to dismantle the Ministry of the Interior, I assume you have a well-developed plan?"
"Indeed."
Compared to relinquishing his own power, Witte was more willing to support the idea of dismantling the Ministry of the Interior, which had long obstructed and interfered with the activities of the Ministry of Finance.
"Very well... Agricultural, economic, and judicial matters will be separated and assigned to other departments."
Witte's memorandum roughly reorganized the Ministry of the Interior into a department managing bureaucratic personnel, police affairs, and administrative tasks related to provincial governments, though it remained a relatively broad department.
"The Ministry of the Interior will still be a comprehensive department, but significantly streamlined compared to its current size," Witte explained.
"Good, I am satisfied. This matter will be put to a vote at the Council of Ministers, and I will send a secretary to attend."
"As you command, Your Majesty."
Witte left as efficiently as usual, but Nicholas still had work to complete.
"Please summon Interior Minister Durnovo. I have something to discuss with him."
After instructing one of the state secretaries stationed in a side office to notify Durnovo, Nicholas closed his eyes for a moment.
Soon, Durnovo, with his distinctive beard, arrived looking somewhat disheveled.
"Your Majesty, how may I assist you?"
"Here's the matter, Durnovo."
After Nicholas acknowledged Durnovo's brief courtesy, he presented a major decision to the Interior Minister.
"…If this is Your Majesty's decision, I will follow your orders. However, under these circumstances, I will no longer be able to continue as Interior Minister."
Durnovo listened calmly to Nicholas's decision, first reflecting with a neutral expression, then revealing a look of resignation.
"Yes…"
This was also something Nicholas had considered.
The question now was whether Durnovo would stay or go.
Initially, Nicholas had envisioned retaining Durnovo to facilitate the consolidation of the Russian civil service. However, with Witte systematically assuming the role of Chairman of the Council of Ministers, Durnovo's significance had diminished.
Nicholas's second consideration was the need for a cooperative Interior Minister to assist in the dismantling of the Ministry of the Interior.
Durnovo had become aware of this requirement, which clarified to Nicholas the true meaning behind Durnovo's statement about being unable to continue as Interior Minister.
If the Ministry of the Interior were compared to a small kingdom of power, Durnovo's cooperation in Nicholas's plans would be akin to "selling out the country," betraying the interests of his department and diminishing his influence among his subordinates.
However, the advantage was the pursuit of personal gain.
Nicholas suspected that Durnovo's reluctance was also a maneuver to seek favors.
Additionally, there was a minor bias stemming from the Empress Dowager's dissatisfaction. Maria had repeatedly complained about Durnovo's intrusion into private correspondence for nearly half a year.
One characteristic of aging is the tendency to endlessly harp on a single issue.
"If Durnovo can no longer serve as Interior Minister, do you have any recommendations for a successor?"
Nicholas decided to offer Durnovo a favor by considering his recommendation if it was viable.
"Your Majesty, you might consider Preobrazhensky as the next Interior Minister."
Without much hesitation, Durnovo strongly recommended the Deputy Interior Minister, Preobrazhensky, as a successor.
"Very well, but I will make a decision on the candidate after you have completed your current tasks."
"As you command, Your Majesty."
Durnovo bowed and departed.
"Sergei Witte, are you familiar with Preobrazhensky and Sipyagin?"
A few days later, when Witte met with Nicholas again, he was asked for his opinion on the matter.
Witte hesitated momentarily, as providing opinions on others could lead to personal enmity. However, given that the inquirer was Emperor Nicholas II, he reluctantly responded.
"Are you considering candidates for the future Interior Minister?"
"Exactly."
"I suspect Preobrazhensky is Durnovo's recommendation, as Durnovo had also suggested him to Emperor Alexander III... As for Sipyagin, he was a favored candidate for Interior Minister during the previous reign."
"You are perceptive, Witte. But what I want to know is your opinion on these two candidates."
"I am well-acquainted with both Preobrazhensky and Sipyagin. Preobrazhensky, an engineer from the law school, served as a prosecutor in the judiciary. Under Loris-Melikov's tenure as Interior Minister, he was promoted from prosecutor to the head of the police department, and later to Interior Minister..."
Witte reflected briefly before continuing with his assessment of Vyacheslav Konstantinovich Preobrazhensky.
"I do not wish to influence Your Majesty's decision, but frankly, he is undoubtedly an intelligent and experienced individual. He is diligent and highly capable. However, as for how much trust I place in him or his convictions—whether they are sincere and deep—that is difficult to gauge."
Witte's praise might have been a diplomatic maneuver, an attempt to appear modest before expressing his true reservations. Nicholas listened thoughtfully.
"Convictions?"
"Yes, in other words, beliefs… When Preobrazhensky was a prosecutor, he made many liberal statements, which led to his appointment as head of the police department by Loris-Melikov, a confidant of Emperor Alexander II. However, when Loris-Melikov was replaced by Ignatiev, Preobrazhensky's views shifted to Slavophilism, abandoning his previous Western-oriented stance. When Tolstoy succeeded Ignatiev as Interior Minister, Preobrazhensky began to support autocracy and despotism, expressing reverence for Tolstoy with a devout fervor, as if reciting scripture."
After detailing his views on Preobrazhensky, Witte paused before continuing.
"As for Preobrazhensky's true opinions and beliefs, I doubt anyone could fully understand them. He tends to adjust his stance based on what benefits him personally and the prevailing political winds."
"Very well, is this your view on Preobrazhensky?"
"Yes."
Witte hesitated but had made his opposition clear without being definitive.
"And Sipyagin?"
Dmitry Sergeyevich Sipyagin served as Governor of Moscow Province from 1891 to 1893 and was promoted to Deputy Interior Minister in early 1894.
"Sipyagin, despite also being a law school graduate, is significantly less capable compared to Preobrazhensky, both in terms of education and talent. He has experience as a chief nobleman, deputy governor, and governor, so he is well-versed in local administrative affairs. Overall, he is of sound mind, but compared to Preobrazhensky, he falls short in knowledge, ability, and experience."
"I see. Anything else?"
"If Sipyagin has any strengths, it is his steadfast beliefs."
Witte explained that Sipyagin's views were those of a staunch noble, upholding the principles of autocracy and patriarchal rule in local governance.
"In summary, Sipyagin would be a staunch defender of aristocratic principles."
"Hmm… Very well, I will give it further thought."
Nicholas did not continue the discussion with Witte, as perspectives and motivations varied, and he needed other opinions to consider.
Nicholas had some understanding of Preobrazhensky's cunning and Sipyagin's stubbornness, but he needed to verify their qualifications.
After discussing some routine administrative matters with Witte, Pobiedonostsev came to see the Emperor.
The Chief Prosecutor of the Orthodox Church had been dealing with corruption and unorthodoxy within the church for nearly a decade. During his tenure, the church's lower clergy had been significantly expanded.
"By the way, Pobiedonostsev, what is your opinion of Preobrazhensky and Sipyagin?"
"Preobrazhensky is a talented opportunist, while Sipyagin is a sincere fool."
Pobiedonostsev answered promptly and decisively, which aligned with Nicholas's own thoughts.