rural population, but it is a significant fact that, according to the census of 1897 the population of the towns of Russia represented about 13 per cent. of the total population. If, however, villages and small settlements be included with the towns, the town population would be about 20 per cent. Some interesting conclusions concerning the increase of population in Russia, based on the census of 1897 were published in a French periodical in 1898. Although the density, according to that census, was only 51 inhabitants per sq. m. in European Russia, as compared with 183 in France, 235 in Germany, 316 in England and 518 in Belgium, there are signs that this difference in density is rapidly decreasing. In the more settled districts a far higher average of density is reached. For instance, it is 194 in Poland and from 90 to 114 in Muscovy. St. Petersburg, with 1,267,000 inhabitants, appears to be on the increase, but is likely to be surpassed in the rapidity of its growth by Moscow, which had 988,000, and by other cities which are not situated in what is now regarded as the kernel of the Empire. In fact it is held by this writer that the kernel of the Empire is losing its relative importance, for while the population in Central Russia has increased 20 per cent., that of outlying regions has increased from 40 per cent. to 60 per cent. The centre of gravity seems to be moving toward the south and east, and St. Petersburg cannot be regarded as the centre of population. An enormous mass of the population moves into the less settled regions each year. For instance, it is said that during the first ten months of 1896, 196,000 immigrants arrived in Siberia. The Cossack region is also gaining rapidly, having increased to the extent of 2,500,000 in the two years preceding 1897. This movement is interesting in connection with the view of certain writers that the time may come when Poland, Lithuania, the Cossack region, and Muscovy will separate from the region of St. Petersburg as the natural centre and form a federated state. As to the increase of the population in general this writer estimates that in 1724 there were only 16,000,000 Russians; in 1762, 20,000,000, in 1796, 37,000,000 in 1809, 46,000,000, and in 1897, 130,000,000. Part of this increase is, of course, accounted for by the incorporation of new territories.

1

Postal and Telegraph Systems.-In 1895 there were forwarded by the internal service 271,286,000 letters and postal cards, 16,545,000 letters with money, and 202,420 periodicals and packages. In 1895 there were 78,396 miles of telegraph line and 157,397 miles of wire. The state owned nineteen-twentieths of the entire system.

Industry and Commerce.—A systematic presentation of statistics of industry and commerce for the year 1898 is impossible at the present date, but some interesting facts are presented in the reports from American Consuls during that year. Foreign capital has sought investment in Russia in increasing amounts in recent years, and at the close of 1897, $65,000,000 was considered a low estimate of the amounts invested there. Although native industries have advanced, Russia is still an excellent market for the manufactures of other countries. The Germans have been especially skillful in taking advantage of this fact, and large numbers of German commercial agents are quartered in Russia. As a result they sell more goods there than the merchants of any other nation on the continent. Germany has natural advantages in situation and means of transportation, as well as in the fact that many of the Russian merchants speak the German language. The progress of the petroleum trade in the past few years has been remarkable. The centre of production is Baku, and it was estimated in 1897 that the average daily production of crude oil was about 139,000 barrels larger than it ever had been before. Foreign capital has sought investment here, resulting in a considerable rise of prices. It has been planned to build a pipe line for refined oil, from Baku to Batum, a point about 415 miles to the west. Iron is another natural product whose output has greatly increased in recent years. During 1897 the increase was so rapid that Russia, which ten years before held the seventh place among iron-producing countries, was advanced to the fifth place. It was estimated that during the year Russia had produced 2,043,000 tons, an increase of 15 per cent. over the previous year. The production in the Ural mountain regions has increased with especial rapidity, advancing 108,000 tons in 1897 as compared with the previous year. The output of iron has also increased in the Kerch peninsula in the Black Sea, and foundries have been established at Rostoff, on the River Don, and in northern Russia. The increase in consumption of iron has also been large, but in 1897, the increased production was sufficient to cover it. The government, as the owner of the principal railways, is virtually the only purchaser of steel rails. The production of cast iron has also increased decidedly in recent years, rising from 1,275,534 tons in 1893 to 2,053,422 tons in 1897. (See IRON AND STEEL and PLATINUM.) Since 1895 the production in the distilling industries has fallen off. Central Russia is the main centre of these industries, and they are very important. The leading_countries receiving Russian exports in 1895 were, in the order of their importance, Germany, Great Britain, The Netherlands, France, Austria Hungary, Italy, Belgium and Turkey, and of these Germany and Great Britain took by far the largest share. The leading countries importing to Russia in the same year were, in the order of their importance, Germany,

Great Britain, United States, Austria Hungary, France, Belgium and Italy. Of all the commodities exported from Russia those grouped under the class food supplies had the greatest value, and next in importance was raw and half-manufactured material.

In imports the chief classes in respect to value were raw and half-manufactured material and fully manufactured goods. As to manufactures, Russia imported in 1895 between thirteen and fourteen times as much as she exported. In general she ranks as one of the great grain-producing countries of the world, her products in this class being wheat, oats, maize, millet, buckwheat, etc. In 1897 there was a failure of the crop in western Europe as well as in Russia. The high prices led to an increase in the exportation of all cereals from Russia, with the exception of oats, but the increase was possible, not because the producers' supplies were greater, but owing to the large stock on hand. Besides the grain crop there was a falling off in the flax and hemp crop. The American Consul-General reported in the summer of 1898 that the total harvest of flax fibre in all the governments of Russia was smaller by 31% per cent. in 1897 than the yield in 1896. There was a marked decrease in hemp also. There being no decrease in the area under cultivation, the decline in these crops was due to unfavorable conditions. The cultivation of beets, however, increased. In the spring of 1898 the area under cultivation was larger than in any previous year. See SIBERIA.

Revenue and Expenditure and National Debt.-The budget estimates for 1898 place the revenue and expenditure each at 1,474,049,923 rubles. There was a deficit of 106,000,000 rubles in external revenue, which was due for the most part to the increased outlays on the railways. The national debt of Russia on January 1, 1897, showed a total of 6,735,376,443 rubles. In 1898 it was placed at about £715,000,000, of which about £250,000,000 was spent on account of railways.

Currency.-Russia has gone steadily on in her attempts to establish the gold standard on a firm basis. The Minister of Finance, M. de Witte, who is reckoned one of the ablest financiers in Europe, submitted his budget statement on January 20, 1898. He reports that excellent results have followed from the change of the standard which has now been completely brought about. During the year the circulation of gold coins more than quadrupled and at the same time there was an increase of 109,000,000 rubles of gold 'in the treasury. The amount in the banks and in circulation was 1,470,000,000 in gold, 162,000,000 in silver, and 999,000,000 in notes.

In January, 1898, the Russian Financial Agent, M. de Routkowsky, attaché of the Russian legation at Washington, made a statement in regard to the reform of the currency during the year that had just closed. The principal points in this statement were as follows: Russia was formerly a single standard silver country, the monetary unit being the silver ruble, containing 18.02 grams of pure silver. Gold coins of various denominations circulated as currency, and there were state credit notes issued by the Bank of State, which was the only credit institution having the right of issue. Silver was legal tender to any amount in payment of taxes and duties to the government, and the credit notes, which were based on the entire property of the state, were also legal tender at par with silver in the payment of taxes and dues. These notes and the silver and gold coin circulated at par until the heavy expenses of the Crimean War, followed by those of the Russo-Turkish War, obliged the government to suspend the exchange of the notes for coin. The period of suspension extended for nearly forty years, and the country was placed on the basis of an inconvertible paper currency. Then came an attempt at gradual reform. The government, curtailed its expenses, increased its revenues, and made good the deficit in the state budget. Fifteen years of this policy resulted in the accumulation of a large quantity of gold, obtained partly through foreign loans, and the result was so to improve the national currency that at the end of fifteen years gold could be borrowed for 3.2 per cent, instead of 6 per cent., which was the former rate. This done, the government determined to rid the country of its inconvertible paper. The gold ruble was definitely established as the new unit of currency in 1897. It should contain .7742 grams of pure gold, equal to 51.45 cents in United States gold. The silver ruble had declined from 100 Copecks, gold value, to 45 copecks, and the credit notes from 100 to 6623. Silver had not only declined but was liable to frequent fluctuations, and the government considered it unfit for a monetary standard. As to the State Bank of Russia it still remains the only credit institution with the right to issue state credit notes, and it may still issue such notes for an unlimited amount. These notes are legal tender. To the value of 600,000,000 rubles they may be issued on the basis of 300,000,000 rubles of gold deposits, but if the amount of issue exceeds 600,000,000 rubles, such excess must be guaranteed to the full amount in gold. On December 5, 1897, the amount of outstanding state credit notes in banks and in circulation, was 1,068.000,000, and the amount of gold in coin and in bank was 1,160,000,000. Silver is retained in the currency as a subsidiary metal for the minor coins, and the laws of 1897 made no change in its character as legal tender in the payment of taxes and dues to the gov

ernment, although between private individuals it is not legal tender to an unlimited amount. A new law went into operation on March 31, 1898, making silver currency a legal tender for payment of government dues and taxes to an unlimited amount with the exception of customs dues; while in transactions between private individuals silver is legal tender only to the amount of 25 rubles. The same law limits the coinage of silver to three rubles per capita.

The Russian Financial Agent gives the amount of gold and silver coins in the Imperial Bank and in circulation on January 1, 1898, as follows:

Apparently Russia is out of her financial difficulties. The annual report of the director of the United States Mint shows from what countries Russia has derived her present gold supply. On July 1, 1898, he showed that the Russian treasury held over $70,000,000 of United States gold coin, $50,000,000 in English sovereigns, $27, 000,000 of German gold coins and $15,000,000 in francs.

Army. The Russian army consists of the active army, the first reserve and the second reserve. The period of service in the active army of European Russia is five years, in the first reserve three years, and in the second reserve five years. In 1896 there were 987,917 men liable to military service, but of these 77,542 were found unfit and 30,585 did not appear. In 1898 the war strength was about 2,500,000 men, but besides this there was an available reserve of 1,064,000, frontier battalions numbering 41,000, Cossacks numbering 142,000, territorial reserves numbering about 2,000,000 and a national militia numbering about 1,200,000. A great part of this force, however, is available only in emergency and on account of the great distances to be covered and the difficulty of mobilization is not to be reckoned at its full strength. In 1898 two new army corps were created and a new independent cavalry brigade was formed. The peace strength of the army in Europe and the Caucasus was given as 768,000 men, of whom 497,000 were infantry, 109,000 cavalry and 107,000 artillery, and the number of troops stationed elsewhere was given as 92,000, of whom 66,000 were infantry, 10,000 cavalry and 8,000 artillery. Strong forces were massed on the frontiers toward Germany and Austria and in the Caucasus; and the military commands in Asia were considerably strengthened. The military budget estimates for 1898 were 288,888,664 rubles, which showed a considerable increase over 1896. Railways.—In September, 1897, the mileage in operation was 26,211, while upwards of 7,700 miles were in process of construction. Some account of the Trans-Siberian Railway is given in the following paragraphs on history.

HISTORY.

An account of Russia's Chinese policy and its results in 1898 will be found in the article CHINA (q. v.).

Internal Affairs.-Early in the year 1898 the government made earnest efforts to promote the merchant marine. Plans for a ship canal to connect the Baltic with the Black Sea were said to have been perfected. On May 27, 1898, it was provided that ships purchased for foreign trade should be admitted free of duty and the duty on ships intended for internal trade was greatly reduced. The events in China seemed to demand an increase in the navy, and in March a considerable expenditure was ordered for that purpose. In the summer of 1898 90,000,000 rubles were appropriated for new warships; work on several new vessels was begun and one powerful battleship was launched. As to the general condition of the people, the consequences of the failure of the crops in 1897 were discernible early in 1898. In parts of the empire there was serious scarcity. In the summer of 1898 agriculture was checked by a long period of drought and towards the end of September it was reported that the crops in southern Russia were not up to the average, and that in northern and central Russia they had completely failed.

The American Consul-General at St. Petersburg, writing under date of August 18, 1898, submitted some reports on the Russian famine. It was said in these reports that the failure of the crop of cereals in 1897, in some localities, had not resulted in what could properly be called a famine, for there had been no cases of death from hunger during the year and no epidemic of typhoid fever. Still the peasantry were in a bad condition, their case being made worse by the rapid increase of the population, the small parcels of land in the possession of each family and the ignorance of the proper methods of cultivation. It was said that owing to these and more deep-seated causes, such as the lack of forests and the exhaustion of the soil, the prosperity of the Russian peasantry was on the decline. In Kazan it was reported that seven districts

were wholly without bread and without fodder. This latter circumstance brought especial hardship to the peasant by the loss of cattle and horses.

Relief measures were adopted by the Red Cross Society and the government came to the rescue by a law reducing the duty on agricultural machinery and abolishing it on fertilizers. A Commission of Inquiry was appointed to investigate the conditions in the districts threatened with famine and reported that herbage and grain were totally lacking. The authorities took steps to make it certain that the rural districts would be provisioned and supplied with seed for the fields. The suffering was most severe in the province of Kazan, where the cattle died off for lack of proper food and horses and oxen were sold for one-half or one-third of what would have been received for them at favorable seasons. As the year advanced the distress seemed to deepen. At the beginning of October it was reported that great distress in the northern and central provinces was likely to ensue as the result of the total failure of the crops.

Though externally at peace, the Empire suffered from occasional disturbances within its borders. In the province of Ferghana, Turkistan, a Russian garrison was at-· tacked by the natives at Andijan on May 30, and a number of soldiers were killed. The revolt was put down with severity; the ringleaders were hanged and a large number of the rebels were sentenced to the same punishment, but most of them were afterwards reprieved and sent to Siberia. The cause of the outbreak was said to have been the fanatical hatred of Russian rule which had been developing in that region for several years. The native administrators who had assumed offices which were formerly held by Russians were said to have abused their power, and to have robbed the people at every point. Order was not maintained and brigandage increased. The discontent of the people under these conditions was, it is said, fomented by secret agents from India, who tried to stir up Mohammedan fanaticism against the Russians. There were signs of coming danger in 1896 and 1897, when marauding bands traversed the country and when two Russian officers were murdered. But this account of the matter, which points evidently to British instigation as one of the causes of the revolt, has not any official sanction, and may not be entirely correct. At St. Petersburg it was declared that the revolt was due wholly to religious fanaticisms and especially to the resentment of the Mohammedan priests, who had been deprived of certain immunities, including exemption from taxation, and who were excited by a Mohammedan revival, resulting from the victory of the Turks over the Greeks. The leader of the forces that attacked the Russian post was Ishan Mahomed Ali Khalif, who was captured and executed.

The Trans-Siberian Railway.-The Trans-Siberian Railway was pushed on energetically during the year 1898 and it was said that it would be completed in 1904. In 1891 there was a railway from St. Petersburg to Tcheliabiansk, a distance of 1,300 miles, while the total length of the route between St. Petersburg and Vladisvostock was 6,000 miles. In 1898 there were between 1,300 and 1,400 miles of track in operation in western Siberia. The work was being carried on simultaneously in several sections, the two large sections including the line between Moscow and Irkutsk, and between Irkutsk and Vladivostock. It was expected in 1898 that the entire line between Moscow and Vladivostock would be opened by rail and steamer in 1900. It was said in 1898 that the Russian government had planned to expend 50,000,000 rubles on the line in the next four years. By a treaty with China, Russia secured the right of carrying the railway into central Manchuria and 'from both directions, viz: from a point in Siberia and from Vladivostock; and to build a line from this point in central Manchuria to Port Arthur, unless China undertook to build such a line herself. This gave Russia the opportunity of opening communication with an important commercial railway, to shorten the route and to avoid certain engineering difficulties. The proximity of Port Arthur makes it possible for Russia to provision quickly the military forces which she may station on the Asiatic coast.

The Czar's Peace Proposal.-On August 24 Nicholas II of Russia caused a note to be sent to the foreign diplomats at St. Petersburg, urging the necessity of a convention for discussing the maintenance of peace and the disarmament of the nations. This peace proposal caused a great stir throughout Europe and America. The text of the circular which was handed to the foreign diplomats by Count Muravieff is as follows:

"The maintenance of general peace and the possible reduction of the excessive armaments which weigh upon all nations present themselves in existing conditions to the whole world as an ideal toward which the endeavors of all governments should be directed. The humanitarian and magnanimous ideas of his majesty the emperor, my august master, have been won over to this view in the conviction that this lofty aim is in conformity with the most essential interests and legitimate views of all the powers; and the imperial government thinks the present moment would be very fa vorable to seeking the means. International discussion is the most effectual means of insuring all people's benefit-a real durable peace, above all, putting an end to the