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One of the principal arguments of those who held that the Russian village was in a state of deep and worsening crisis was the fact that it was constantly falling into arrears on the redemption payments (mortgage money owed the government for its help in procuring land for the peasants in the 1861 Emancipation settlement). The question has recently been raised whether these arrears really prove the impoverishment of the village.23 Instead of making mortgage payments, the peasant steadily increased purchases of consumer goods, as shown by the rise in government revenues from sales taxes, which more than doubled in the decade 1890–1900. Citing this evidence, an American historian concludes:

If the peasants were the primary source of indirect tax income, then they must have been the major consumer of the goods taxed, that is, sugar, matches, and so forth. Therefore, since they could purchase nonagricultural goods, one can hardly depict the rural sector as ravaged by a ruthless tax system … Peasant land redemption arrears grew not because of an inability to pay, but because of an unwillingness to pay.24

This argument is reinforced with evidence of a rise in peasant savings and an increase in farm work wages. It raises doubts whether the Russian village was indeed suffering from severe undernourishment as claimed by liberal and socialist politicians.*

Well-informed contemporaries, while conceding that the country faced serious agrarian problems, questioned whether these were caused by land shortages and whether the transfer of privately held, non-peasant land into peasant hands would significantly improve things. One such observer, A. S. Ermolov, a onetime Minister of Agriculture, formulated a cogent counterargument to conventional wisdom, the soundness of which subsequent events amply confirmed.25 Ermolov held that one could not reduce all of Russia’s agrarian difficulties to the inadequacy of peasant allotments: the problem was much more complex and had to do mainly with the way the peasant tilled his allotments. The peasants deluded themselves, and were encouraged in their delusion by intellectuals, that seizing landlord properties would greatly improve their economic situation. In fact, there was not enough private land to go around: even if all privately held arable land were distributed among peasants, the resulting increase, which Ermolov estimated at 0.8 hectare per male peasant, would not make much of a difference. Second, even if adequate land reserves could be found, their distribution would be counterproductive because it would only serve to perpetuate outmoded and inefficient modes of cultivation. The problem with Russian agriculture was not the shortage of land but the antiquated manner of cultivating it—a legacy of the times when it had been available in unlimited quantities: “In the vast majority of cases, the problem lies not in the absolute land shortage, but in the inadequacy of land for the pursuit of the traditional forms of extensive agriculture.” The peasant had to abandon the habits of superficial cultivation and adopt more intensive forms: if he could increase cereal yields by no more than one grain per grain sown, Russia would overflow with bread.* To prove his point, Ermolov noted the paradox that in Russia the prosperity of peasants stood in inverse ratio to the quality and size of their land allotments, a fact which he ascribed to the need of land-poor peasants to pursue more intensive forms of agriculture. In central Russia, at any rate, he saw no correlation between the size of communal allotments and the well-being of peasants. Furthermore, the elimination of landlord estates would deprive the peasantry of wages earned from farm work, an important source of additional income. Ermolov concluded that “nationalization” or “socialization” of land, by encouraging the peasant in his traditional ways of cultivation, would spell disaster and force Russia to import grain. The author suggested a variety of measures resembling those that would be introduced in 1906–11 by Peter Stolypin.

Such voices of experience, however, were ignored by intellectuals who preferred simplistic solutions that appealed to the muzhik’s preconceived ideas.

At the turn of the century, Russian industrial workers were, with minor exceptions, a branch of the peasantry rather than a distinct social group. Because of the long winters during which there was no field work, many Russian peasants engaged in non-agrarian pursuits known as promysly. Such cottage industries produced farm implements, kitchenware, hardware, and textiles. The custom of combining agriculture with manufacture blurred the distinction between the two occupations. Peasants engaged in promysly furnished a pool of semi-skilled labor for Russian industry. The availability of cheap labor in the countryside, which, if not needed, could fall back on farming, explains why the majority (70 percent) of Russian workers held jobs in industrial enterprises located in rural areas.26 It also explains why Russian workers failed to develop until very late the professional mentality of their Western counterparts, many of whom were descendants of urban artisans.

Russia’s first full-time industrial workers were serfs whom Peter I had bonded to state-owned manufactures and mines. To this group, known as “possessional peasants” (possessionnye krest’iane), were subsequently added all kinds of people who could not be fitted into the estate system, such as wives and children of army recruits, convicts, prisoners of war, and prostitutes.

The German economist Schulze-Gävernitz divided the 2.4 million full-time industrial employees in Russia at the end of the nineteenth century into four subgroups:27

1. Peasants seasonally employed in local industries, usually in time free from agricultural work; they slept under the open sky in the summer and in the shops, near the machines, in the winter.

2. Workers banded in cooperatives (arteli) who hired themselves out and distributed among members the cooperative’s earnings. Housed in barracks furnished by the employer, they usually left their families behind. Because they did not lead a normal family life, workers in this group regarded their status as transient and usually returned to the village to help out with the harvest. Russia’s largest industry, textile manufacture, relied heavily on such labor.

These two groups constituted the majority of Russians classified by the 1897 census as industrial workers. They consisted mostly of peasants. The next two categories had severed ties with the village.

3. Workers who lived with their families. Because wages were low, their wives usually also sought full-time employment. They often resided in communal quarters provided by the employers, the living spaces of which were separated by curtains, with kitchens used communally. The employers also often provided them with factory shops and schools. This arrangement would be adopted by the Soviet Government during its industrialization drive in the 1930s.

4. Skilled workers who no longer depended on their employers for anything but wages. They found their own lodgings, bought provisions on the open market, and if laid off, no longer had a village to which to return. It is only in this category that the dependence of the worker on the employer, reminiscent of serf conditions, came to an end. Workers in this category were to be found mainly in the technically advanced industries, such as machine-building, centered in St. Petersburg.

As this classification indicates, industrial employment, in and of itself, did not lead to urbanization. The majority of industrially employed Russians continued to reside in the countryside, where most of the factories were located, and retained close connections with their villages. It comes as no surprise, therefore, that they also retained a rural outlook: Schulze-Gävernitz concluded that the principal differences between Russian and Western European industrial workers derived from the fact that the former had not yet broken ties to the land.28 The only significant departure from this pattern could be found among skilled workers (Group Four) who as early as the 1880s began to display “proletarian” attitudes. They developed an interest in mutual aid associations and trade unions, about which they had learned from foreign sources, as well as in education. The illegal Central Labor Circle, formed by a group of skilled St. Petersburg workers in 1889, was Russia’s first rudimentary trade union. The strikes of textile workers in St. Petersburg in 1896–97 to protest working conditions were the earliest overt manifestations of this new spirit.29