An additional measure which greatly advantaged landlords was colonization. Catherine believed firmly in the mercantilist notion that population equalled wealth. She did all in her power to promote immigration to the empire, including inviting whole communities of religious dissenters, mostly Mennonites, to resettle from southern Germany to southern Russia. She also opened borderlands in the south-east (near Ufa and Orenburg) and south-west (in the territories north of the Black Sea known officially as ‘New Russia’) to nobles, granting vast tracts of land to those who resettled their serfs there. Apart from mercantilism, here the empress was also motivated by concerns of security: by settling large Russian populations on borderlands historically populated by Turkish peoples (mostly Bashkirs and Kalmyks), Tatars, and Cossacks, she hoped to domesticate these peoples and integrate them into the empire. Catherine further believed that the borderlands were ripe for agricultural exploitation. Endowed with fertile soil and favourable climate, this underpopulated region had remained untapped for centuries because their open plains made them difficult to defend and vulnerable to incursions from without.
Quitrent and corvée: serf dues
By the late eighteenth century, however, the balance of power in the south had shifted from the indigenous populations in favour of the Russian state. Cossack hosts and tribal populations retained considerable autonomy and, in most instances, enjoyed exemption from conscription and the poll tax. But their service obligations as subject peoples were now firmly inscribed in law and practice. None of them favoured the influx of Russian nobles and serfs, but, beyond verbal protests and occasional disturbances, they were powerless to resist. As a result, the vast rich expanse of the Black Sea basin was now opened for cultivation. These lands generated higher yield, with seed grain ratios of 4:1 to 5:1 rather than the usual 3:1 in central Russia. A large portion of this output went to market and, because of the proximity to the Black Sea, for export. To handle this burgeoning trade, in 1794 Catherine founded the port city of Odessa, which within a few decades would become one of the largest cities in the empire.
These developments—the price revolution, the expansion of rural markets, the export of grain, and the increasing control over serf labour—proved a veritable windfall for those nobles able to take advantage of them. According to one estimate, their profit from corvée rose from 36 copecks per male serf in 1710 to 10 roubles in 1800, a rate that far exceeded by sevenfold the general inflation rate. In practice, only a relatively large estate was able to exploit this opportunity, and that required a noble family to remain visible and acquire enough land so as to counteract the downward pressure of partible inheritance. Although some nobles succeeded, many others did not, widening further the stratification along the continuum of poor and rich noble.
Taken as a whole, Russia’s eighteenth-century economy presented quite a paradox. On one hand, it could boast of burgeoning trade and markets, increased exports, rapid expansion of paper money, and very healthy growth rates. On the other hand, all of this led somehow to a wealthier and more privileged nobility alongside a weaker, smaller, and less secure merchant status. The centre of gravity for wealth, social power, and even population stood far more firmly in the countryside in 1800 than it had a century earlier.
The Pugachev Rebellion
Probably the single greatest blow to the moral foundations of the existing order was the fateful decision by Peter III to free the nobility from service. The reciprocal principle of universal service—serfs serve the noble, the nobles serve the state—had provided the primary justification for serfdom; Peter the Great had said as much, as had every one of his successors. It was the tsar’s will; and, as the Orthodox Church taught, God Himself demanded obedience to the tsar’s will. But ‘freeing’ the nobles had abrogated this reciprocity. Here and there serfs circulated rumours that this was just the first step, that soon the tsar would free them as well. When this did not happen, and when Peter III was deposed shortly afterwards, these rumours were transmuted into a variant of the familiar pretender myth: Catherine II and her cohort were illegitimate (indeed, German!) usurpers, Peter III was not dead but had taken refuge with loyal Orthodox peasants until he could return triumphantly, reclaim his throne, and complete his emancipatory project. This myth spawned numerous pretenders during the 1760s and 1770s, some as far away as Silesia, Hungary, and the Urals, all claiming to be the true Peter.