The Triumvirate, which would have ruled the Russian Empire, met in the Royal Palace at the night of 11 March, after the assassination of Tsar Alexandr II Meri. They drafted the Priority Action Plan to rescue the Russian Empire. First, Heir had to be isolated in the Gatchina palace. Second, all troops had to be gathered on the outskirts to Saint-Petersburg (Novgorod, Pskov, Vyborg and Ladoga). Third, Government must initiate a consulting with the leading representatives of the Senate to exclude possibility of uprising inside the capital.
The socialist as well as the communist deputies, who gained almost 20% of seats last year, abandoned meeting of the Senate. Sergey Witte managed to conclude the agreement only with reactionary and conservative factions on 10 April 1882. The left factions and radical liberals began to go the provinces to agitate for uprising. Some of them were presumably imprisoned and extrajudicially executed by secret police. Violence has been gradually spreading the Empire and Sergey Witte said: “If we didn’t stop them, the country will face chaos….”.
The communists upraised in the city of Olviopol two month later after the death of Tsar Alexandr II Meri. Armed combatants seized the building of City Council and took some facilities in the outskirts. The South army led by General Gurko marched quickly to the city and disarmed the rebels. Ringleaders of the rebellion were executed by hanging.
This year a more serious uprising occurred in Moscow on 28 November 1882, where anarcho-liberals upraised to overthrown the monarchy and establish a republic. They were able to fight the regular troops on the streets of Moscow, Vladimir, Kursk and Tver. Loyal army fought the rebels, using artillery and cavalry regiments. Street battles have lasted for two months and cost the hundreds of lives.
Imperial forces suppressed the protests, thus participants in the rebellion were arrested and sent into exile in Siberia, having lost their civil rights and property. Investigation has shown that the most of them were liberal-oriented intellectuals and artisans. There were many landowners and capitalist have joined the ranks of the rebels. Workers of industrial factories didn’t attach to the rebellion.
Sergey Witte was not satisfied, having received reports about suppression of the revolt. He knows Militant socialists are plotting against government to raise a major nation-wide rebellion. They might have about 400 regiments, according to the records of secret police, that makes them a real threat to the Regime. If they all had rebelled, the Empire would have collapsed. He must either crash them or placate some left factions by sort of social reforms. Triumvirate elaborated a plan to overwhelm the revolution. The Imperial forces of 87 regiments were committed to Saint-Petersburg. The defensive line ran 10 kilometers from the capital. Saint-Petersburg has been passed on the martial law and garrison transited to a state of emergency. Sergey Witte applied to the Senate to adopt the measures needed for rescue state. More than half of the Senate voted for a state of emergency. Both the liberals and the social-democrats voted for stability against brutal radical from both sides.
Rebellion broke out on 22 March 1884 (in the name of Great riots of 1807/1808), covering huge territories of Ukraine, Poland, Lithuania, Thrace, Perm and Volga. Dozens of cities raised against the regime to fight for “better life”. Major battles took place in the outskirts of Grodno and Nizhniy Novgorod. In the battle of Grodno loyal troops defeated the rebels, killing more than 85 000 men at that time.
Nizhniy Novgorod, a rich and influential trade city, has become battlefield between the revolutionary and loyal forces. General Michail Skobelev, a member of the triumvirate, was fatally injured while commanding the troops. Alexandr Ulyanov, brother of Vladimir Lenin, a leader of small radical left party, was also shot during the battle of Nizhniy Novgorod. Well, then that did go unnoticed.
Grodno, a strong fortress in Lithuania, was stormed by the rebels on 24 May 1884. Loyal troops led by Dmitry Kuropatkin managed to consolidate and attack the seized city month later. Bloody battle lasted for three months and ended with the victory of the loyalists. During all summer of 1884 government forces were fighting the rebellion throughout the Russian Empire. Military actions had ended only in fall of the year.
Major rebellion broke out on Formosa, the Russian colonial island in the Yellow sea. The Chinese insurgents of 120 000 men slaughtered the Russian garrison and civilian population, who were loyal to Russia. Officers, solders, civil servants and landowners were fiercely executed by armed nationalist combatants. Horrible massacre lasted for 10 months and thousands of colonists were killed mercilessly by mobs organized partly with the support of the Manchurian governors, who sponsored the rebellion.
Shortly before the rebellion, the Russian Empire had plans for seizing India for the provinces rich of species and dye. Dye was highly needed for the growing national textile industry. Thus, a mobilized high-trained and good equipped army located on Hainan Island. General Mirsky fast telegraphed to Admiral Dolgoruky, when he received news of riots on Formosa. They began to plan a punitive expedition to Formosa, gathering troops from the islands on the Pacific Ocean.
The Russian forces landed on 22 March 1884, while the Imperial Navy had blockaded the rebellious island. Royal troops cleared the island off the national-socialist militants. Regiments from garrisons on the Pacific islands have eagerly joined the punitive expedition. More than 120 000 local residents were executed during this punitive expedition, many of them were forcibly enslaved and sold to the Manchurian selfish traders. Governors, who financed the rebellion, resold them with profit to slave-traders, who exporting these unfortunate people to inland Manchuria… Not only adults but also children were mercilessly enslaved and transported to China. Some scholars argue that it was genocide.
The riots had been completely suppressed at the mid of 1885. National economy was in ruins, while the Russian society was exhausted with bloodshed. Civil turmoil has caused hundreds of thousands of killed and injured people, dozens of destroyed towns and looted villages, decline in prestige of the Monarchy. Alexandr III Meri seemed to have lost his mind… He never left the castle in Gatchina and avoided meetings. Thus, Sergey Witte consolidated the government, becoming Prime Minister, and continued to be a de-facto ruler of Russia for the following ten years.
Sergey Witte had become a de-facto ruler of the Russian Empire, as just before it Onton Tichanov was a Regent four centuries ago. Two members of the Triumvirate left the political arena. General Michail Skobelev was shot in the battle of Nichny Novgorod, while admiral Loris-Melikov was injured during assassination on the St. Petersburg’s shipyard. He had to retire because of health conditions. Alexandr III Meri was lock in the castle of Gatchina after dramatic death of his father and the following social disaster.
Thus, Prime Minister Sergey Witte became a Regent of partly incapable monarch. He was neither a tricky courtier like Onton Tichanov nor brave adventurer and noble usurper as Sofia Romanov, but a high-skilled administrator with outstanding record of achievements. The man, who would have become a ruler of the Empire, started his career in rail road industry. During suppression of the revolt, he gained support of army, The Officer Corp, bureaucracy and capitalist formed the basis of his power.
Despite social discontent and repeating uprising of the radicals from both sides, the government survived to keep potentially explosive social situation under control. Sergey Witte was concerned rather about an increasing political polarization than armed rebellious against the Government. Alexandr III Meri was absent from the king’s affairs, granting the Prime Minister absolute discretion. Witte’s success drew the envy of other powerful figures at the court, who also desired power.
The Prime Minister launched a broad reform agenda in all the fields of government. Such reforms as Market structure (1885), Organized factories (1886), Late Classical Economics (1887), Money billing (1888), Scientific Management (1890) and Business regulation (1891) had definitively saved the country during the years of economic and social crisis after the rebellion. Labor class continued to grow, surpassing the level of 700 000 persons. The Russian Empire developing economy, like the leading European nations, had achieved considerable success and been ranked the 5th place of the most industrialized countries.
From the graph above we can see the trend of gross domestic product from the 1840s to 1895. The Russian economy has collapsed in the first part of reign of Alexandr II Meri because of crucial changes in world economies. As industrialization gathered momentum, especially in the Western Europe, the Russian economy had begun to fall behind the civilized world. Russia can’t mitigate the huge lag in the technologies neither by population nor natural resources. Continious territorial expansion did not bear fruit.
When Sergey Witte took the office in 1875, the national economy had been struggling for more than twenty years. Most of the goods were produced by artisans in their own homes, state factories were few in number, in addition, they were exceptionally ineffective. Whether the government subsided them or stimulated capitalists to invest money, the Russian industry was mainly an underdog with great number of small self-owned entities. By 1871 the production on factories was less than a third of total amount.
On contrary, after two major recessions (1855-1860; 1867-1872), caused by various reasons, including military conflicts, world economy has skyrocket since the middle of the 1870s. Russia was falling behind more and more against this background. Sergey Witte as a de-facto ruler of Russia insisted on the setting up an ambitious industrious program. Some of the industries had to create from scratch, while other were to modernize completely.
Look at the table above, which describes path of the Russian industrialization for the last twenty years of the 19th century. Steel production has risen by two and a half times since 1872. Textile industry has been built from the ground up with direct state funding (enormous financial investments). All fabric and regular clothes are manufactured on state large-scale factories. Production of furniture increased eightfold due to replacement of artisans with factories (from 55% to 95%). Unlike the industries noted above, alcohol branch was funded neither by the State nor huge industrial groups. Private investors, who had been artisans earlier, expanded their production in the southern provinces of the Empire.
The success of industrial policy has strengthened the position of Sergey Witte at the royal court and society. In 1892, gross domestic product (GDP) began to grow for the first time since the 1850s. Recession seemed to go to waste… Investors began to actively buy state bond, by which large-scale infrastructure projects (like Trans-Siberian Railway) are carried out.
The Russian Empire had a very high level of taxes as well as tariffs on the imported goods, which gravely limited the development of national economy and consumer power. Sergey Witte thought this policy doesn’t match the emerging industry of Russia. If common people have no funds to buy consumer goods, so factories will bear the loss from overproduction. Protectionist tariffs raise the price of raw goods such dye, cotton and robber, thus factories are becoming less profitable. Implementation of new economic policy was discussed and approved at the regular meeting of Minister Cabinet under the chairmanship of Sergey Witte himself. The decision, that would have benefited the country, had proved fatal for Sergey Witte and cost him his post and his life.
The Russian Empire has always be a Millitary Power with internal instability and weak economy. Sergey Witte succeded megalomania of Alexandr II Meri, marked by enermous millitary spendings, extermely expensive modernization of fleet and large-scale infrustruture projects. Almost all factories were state-owned and many of them were ineffective due to lack of resources, absence of capitalists and clerks. By 1890, Russia had only 6000 capitalists out of 21 million-persons population.
A new economic policy was adopted on 12 July 1890. Taxes as well as tariffs were lowered, while capitalists were promoted in the most populated regions like Moscow and St.Petersburg. Next year a new financial invention of Business regulation was done to stimulate domestic financial market. Inexperienced investors were positive about national prospects. The Revolution was supressed, while economy was growing rapidly by 10% per year. Civilization of Perm region, that was rich of iron and coal, would have accelerate steel production.
Everything fell apart in the beginning of 1892. when unknown changes on world market caused drastic decrease in demand for the Russian natural resources. The collapse in grain prices impacted Russia's farm economy, causing great poverty in rural areas. Tax revenues have fallen sharply. National stock market panicked in response to budget crysis. Inexperienced investors rushed to sell off state bonds. Invention of telephone led to massive panic among domestic investors as well as international financial funds. In the fall of 1892, the Saint-Petersburg stock market dropped sharply, and panic selling caused the stock market to crash.
Sergey Witte didn't know what to do, either imprison financial traders and profiteers or raise cupons. His uncertaincy worsen situation, while another communist uprising on 23 May 1892 prevented Government from cuting budget expenditures. Financial situation was deteriorating all the year and Government had to default on debts on 04 September 1892.