AELITA AMBRULEVIČIŪTĖ

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1 KLAIPĖDA UNIVERSITY LITHUANIAN INSTITUTE OF HISTORY AELITA AMBRULEVIČIŪTĖ RETAIL TRADE IN THE VILNIUS, KAUNAS AND GRODNO PROVINCES IN (A NETWORK, EXPANSION, MODERNISATION) Summary of doctoral dissertation Humanities sciences, History (05 H) Klaipėda, 2010

2 The dissertation was prepared in in the Klaipėda University Scientific supervisor: Dr. Darius Staliūnas (Lithuanian Institute of History, Humanities sciences, History 05 H) Research advisor: Doc. Dr. Stanislovas Pamerneckis (Vilnius University, Humanities sciences, History 05 H) The dissertation will be defended at the Research Board of History of the Klaipėda University and Lithuanian Institute of History: Chairman: Dr. Rimantas Miknys (Lithuanian Institute of History, Humanities sciences, History 05 H) Members: Doc. Dr. Vygantas Vareikis (Klaipėda University, Humanities sciences, History 05 H) Prof. Dr. Šarūnas Liekis (Mykolas Romeris University, Humanities sciences, History 05 H) Habil. Dr. Tamara Bairašauskaitė (Lithuanian Institute of History, Humanities sciences, History 05 H) Prof. Habil. Dr. Mindaugas Maksimaitis (Mykolas Romeris University, Social sciences, Law 01 S) Opponents: Dr. Vladas Sirutavičius (Lithuanian Institute of History, Humanities sciences, History 05 H) Doc. Dr. Remigijus Civinskas (Vytautas Magnus University, Humanities sciences, History 05 H) The public defence of the dissertation will be held at the open meeting of the Research Board of History at 1 p. m. on the 14 th of May, 2010 at Klaipėda University, Senate hall. Address: H. Manto-84, LT-92294, Klaipėda, Lithuania The summary of the dissertation was sent out on 12 th of April The dissertation is available for reading at the libraries of Klaipėda University and the Lithuanian Institute of History. 2

3 KLAIPĖDOS UNIVERSITETAS LIETUVOS ISTORIJOS INSTITUTAS AELITA AMBRULEVIČIŪTĖ MAŽMENINĖ PREKYBA VILNIAUS, KAUNO IR GARDINO GUBERNIJOSE METAIS (TINKLAS, PLĖTRA, MODERNĖJIMAS) Daktaro disertacijos santrauka Humanitariniai mokslai, istorija (05 H) Klaipėda,

4 Disertacija rengta metais Klaipėdos universitete Mokslinis vadovas: dr. Darius Staliūnas (Lietuvos istorijos institutas, humanitariniai mokslai, istorija 05 H) Mokslinis konsultantas: doc. dr. Stanislovas Pamerneckis (Vilniaus universitetas, humanitariniai mokslai, istorija 05 H) Disertacija ginama Klaipėdos universiteto ir Lietuvos istorijos instituto Istorijos mokslo krypties taryboje: Pirmininkas: dr. Rimantas Miknys (Lietuvos istorijos institutas, humanitariniai mokslai, istorija 05 H) Nariai: doc. dr. Vygantas Vareikis (Klaipėdos universitetas, humanitariniai mokslai, istorija 05 H) prof. dr. Šarūnas Liekis (Mykolo Romerio universitetas, humanitariniai mokslai, istorija 05 H) habil. dr. Tamara Bairašauskaitė (Lietuvos istorijos institutas, humanitariniai mokslai, istorija 05 H) prof. habil. dr. Mindaugas Maksimaitis (Mykolo Romerio universitetas, socialiniai mokslai, teisė 01 S) Oponentai: dr. Vladas Sirutavičius (Lietuvos istorijos institutas, humanitariniai mokslai, istorija 05 H) doc. dr. Remigijus Civinskas (Vytauto Didžiojo universitetas, humanitariniai mokslai, istorija 05 H) Disertacija bus ginama viešame Istorijos mokslo krypties tarybos posėdyje 2010 m. gegužės mėn. 14 d. 13 val. Klaipėdos universiteto Senato salėje. Adresas: H. Manto-84, LT-92294, Klaipėda, Lietuva Disertacijos santrauka išsiuntinėta 2010 m. balandžio 12 d. Disertaciją galima peržiūrėti Klaipėdos universiteto ir Lietuvos istorijos instituto bibliotekose. 4

5 Industrialization of Western Europe is associated with economical changes that were brought on by the discovery and usage of nonorganic sources of energy. This formed the basis of the modern methods of industry. The less developed regions of Central and Eastern Europe, though influenced by these processes of modernization, could not go forward quickly enough because of the economical retardation of the Russian Empire, comparing to Western European countries. Lithuanian provinces being incorporated into the Russian imperial system were reliant on the restricted administrative institutions which influenced social, political, educational and religious aspects of life. Both agricultural development and marketing were also influenced by those institutions. The explanation of the development of Lithuanian domestic trade might illustrate the nature of social and economical modernization in Eastern Europe under the circumstances of restrictive foreign administration. The research has been based on analyzing both macro- and micro-economical levels of these processes. Object of research and actuality of the topic. The retail trade network (representing the reflections of the process of industrialization at a micro-level), the process of development, the expansion and modernization of trade in provinces of Vilnius, Kaunas and Grodno were chosen as the objects of research. The time period for the objects of research is the middle of XIX century the beginning of XX century. In this context it is crucial to distinguish the lower level history researches. Because in researches of Lithuania s economy development priorities are given to history of: industry, formation and spread of transport, manufacture, technology development and agricultural development. And only a small group of researchers emphasized the experience of the economically active (Jewish ethnoconfessional) group. In papers on trade development (such as manufacture process prolongation) the topic of research is foreign and domestic trade. But topics such as: small and mediocre businessmen, small and mediocre business, domestic trade, consumption and trade 5

6 exchange didn t attract the attention of historians. That is why the relevance of this topic is determined by the cultural moral rehabilitation of trade and business in whole in modern Lithuania. While the historians views focus onto the aspects of the land s economy (which are: business, consumption, trade exchange) which were ignored before in the dominating (not only in the Marxist) productional paradigm (the points of utmost importance were manufacturing technology, manufacture, manufacture relations and means of manufacture). The novelty of the research. Low level history researches continue to be the socio-cultural histories prerogative. While in socioeconomical development researches in Lithuania traditionally focus on manufacturing processes. They mostly include macro economical level history. In this research the sphere of microeconomics will be encompassed with a focus on society s socio-economical development and materialistic culture development processes. That is to say the lower level economy modernization process will be researched. As discussed prior it would be the middle of the XIX century the beginning of the XX century retail trade analysis of Lithuanian provinces. This research could become the foothold for further researches of material culture and various every day life aspects in Lithuania. The aim and the tasks of the research. Research objective to ascertain the retail trade system development processes in Lithuania in a chronological order from the middle of the XIX century to the beginning of the XX century while researching: the industrialization processes influence on retail trade in Lithuania and beyond its borders, modernization of its forms. To reach the main goal additional objectives have been set : 1) to research the law s effect on the domestic retail trade development by analyzing tsar s administration s the traits of economical politics and the change of trade act regulation; 2) to find out did the modernization of trade influence the common division of labor in ethno-confessional principals in the field of trade; 6

7 3) to analyze: the retail trade development, the influence of economical change in the trade structure reorganization, the changes in consumers needs brought by the expansion of manufacture; 4) distinguish the factors which had influence in some of the businessmen starting illegal businesses. Historiography. There are many socio-economical researches of Lithuania. Yet commonly these researches are limited to the analysis of: relations in manufacture, formation and development of industry and transport, development of agriculture and etc. Also the foreign and domestic wholesale development is highlighted (Juozas Juriginis, Kazimieras Meškauskas, Malvina Meškauskiene, Vytautas Puronas). These scientists researched the problems related to the dissertation in fragmental fashion while only partialy approaching the aspects of domestic trade development. In broader researches on the domestic trade development (done by Albinas Rimka, Petras Šalcius, Juozas Jurginis) the exogenous factors are emphasized wich formed the conditions for the development of the domestic market and the growth of trade in the post-reform time period. Also often the trade is researched as prolongation of the manufacturing system (Mečislovas Jučas, Juozas Jurginis, Vytautas Merkys, Leonas Mulevičius). The retail trade development and the modernization of the trade structure was researched by Mečislovas Jučas, Virgilijus Pugaciauskas, V. Tamošaitienė, Boris Mironov, Večeslav Šved, Michail Šaučenija etc. They focused on organizational trade forms, the number of companies and their local distribution, scope of product turnover and etc. The results of these papers depict: interrelations of diffrent trade ofrms, the growrh of the retail trade network, the perish and expansion of diffrent trade forms after the change of nature of manufacture. Researches of these scientists are closely related to the questions risen in the dissertation. Yet some aspects (development of trasportation and carrying trade forms, mart and market-place network expansion etc.) of the researches require a more extensive analysis. In this dissertation it is endeavoured to supplement and broaden the researches done by scientists while 7

8 emphysizing the untouched trade related aspects: the retail trade development, the change of trade governing laws, residents consumption needs, the change of daily lifestyle after the apearance of the factory production supply and etc. The researched problem is also associated with the ethnological researches (Antanas Daniliauskas, Pranė Dundulienė, Juozas Kudirka, Vacys Milius, Angelė Vyšniauskienė, Irma Šidliauskienė, Jūratė Morkūnienė) which let a close study to be made on: change of consumption, changes in usage of furniture and clothing, helps to highlight the domestic trade organization in villages. Also the researched problem is associated with the ethnical studies and social issues of the merchants. In the soviet historiography historians (Vyrautas Merkys, Liudas Truska, Antanas Tyla. Rimantas Vėbra) traditionally emphasized the formation, interrelationship, large capital and large national (industry and business) of the bourgeoisie, peasantry and worker class. While the small and mediocre merchant and also the small and mediocre trade business occupied only a small part of the research. Other solution proposed by the others historians (Andreas Kappeler, John D. Klier, Alexej Miller, Daniel Stone, Anthony D. Smith and in works of others) who primarily focused on the Russian empire s one or other ethnical group which participated in the modernization processes. Authors emphasize the historically brought on division of labor when explaining the causes of this phenomenon. In the Lithuanian provinces that would be represented by Jew domination in the production and trade sectors and the domination of local ethnical groups in agriculture. These points were better explained by the researches (of Lithuanian historians) which were adjusted to the local specifics. Different social-economical aspects of development emphasized the: problems of merchant caste, the national bourgeoisie and national business formation; the Hebrew and Christian economical relationship. Tamara Bairašauskaitė and Remigijus Civinskas researched the integration of the Jewish into the townspeople and merchant castes. They highlighted the legal and social job conditions of the Jewsih merchants. Also questions like: 8

9 Hebrew integration into the Christian society, the governments caste pilicy strategy and its realization were risen. Also researchers (T. Bairašauskaitė, Zita Medišauskienė, R. Civinskas, Vladas Sirutavičius) are drawn by the XIX century s first half s: social worldview, the change of community s mentality and the newly developing culture s appearance forms in business. The interpretations by these authors of the social-economical modernization step over the boundaries of the common economical realia. Their work is an important foothold when searching answers for questions concerning the relations of Jews and Christians in trade during the second half of XIX century the beginning of the XX century. Sources. The Materials directly connected with trade were found in Lithuania s national history archive foundations: foundation 378 (general-governors common and political office departments of Vilnius, year ); foundation 382 (construction department of the Vilnius province, year ); foundation 388 (statistics committee of the Vilnius province, year ); foundation 419 (gendarme department of the Vilnius province, year ); foundation 515 (The treasury of the Vilnius province, year ); foundation 517 (Tax committee of the Vilnius province, year ); foundation 525 (department of agriculture and governmental property of Vilnius and Kaunas, year ); foundation 387 (folk food committee of Vilnius province, year ); foundation 551 (custom-house of Taurage, year ); foundation 937 (documents of Dumas office of the Vilnius city, year ); foundation 948 (the trade and industry companies employee association of Vilnius, year ); Kaunas district archive I-49 foundation (department of the Kaunas province, year ) and I-68 foundation (statistics committee of Kaunas province, year ); the Science Academy Library s foundation 78 (trade-house of Vilnius, year ), foundation 12 (agricultural and political life of the first half of the XX century). They helped to clarify the changes in the structure of the trade 9

10 relations between the trader and the consumer, the changes in administration and etc. For a different type of resource group the Russian empires laws are chosen (full set of laws of the Russian empire). This resource is especially significant in explaining: the effect of the law order on the land s economy development; the choices made by the characters involved in the economy when starting from the middle of the XIX century the social-economical possibilities of all the layers of society were changed by the linearization of economies operating conditions and the reforms of the economy. The unraveling of the chosen topic requires statistical data. That is why the statistical data reports made by tsarina Russia s clerks are referenced. Vast in a factographical meaning the material presented in economical-geographical-statistical reviews (Материалы для географии и статистики России, собранные офицерами генерального штаба Materials for the geography and statistics of Russia collected by the officers of the general department) encompasses the sixth decade. Furthermore it shows the economical status of provinces of Vilnius, Kaunas and Grodno. Also it highlights the regional specifics of each province and gives more detailed statistical information on the separate regions. From this group of resources also Memory books ( Памятные книжки ) and Reviews ( Обзоры ) of Vilnius, Kaunas and Grodno provinces need to be mentioned. Statistical publications and statistical data resources of trade, manufacture and treasury departments which enable to analyze development of the trade and show its status are vital to the research. In the memories of the contemporaries of the researched time period, in the articles of periodic publications and papers we find picturesque material on the every day life of the XIX century s community, changes in consumption, community s views on the trade and business in general. Also we find what consumer commodities were bought and used in every day life. A few of authors can be mentioned: Josef Frankas, Liudvikas Adomas Jucevičius, Mikalojus Katkus, Petras Leonas, Motiejus Valančiaus, Ignotas Chodzko and others. 10

11 Research methods. The dissertation is a complex retail trade development analysis of the mid XIX century XX century beginning of Lithuanian provinces. The theoretical-methodological research foundation consists of objectivity and historicism principles. In a view point of discipline a wider interdisciplinary context of socio-economy and history is taken. The dissertation is of the analytical format thus the historical method is applied which helps to highlight the social, political, domestic and foreign economical factors which have influenced the sphere of trade. The critical methodology is crucial for the research to be correct when working with primal documents such as: trade regulating acts, archive documents, statistical data, testimonies of the contemporary s. The chronology of the work and geographical boundaries. The choice of the chronological boundaries was based on the economical reforms (of which the erasure of serfdom in year 1861 was probably the most important) carried out by the tsars administration in the mid XIX century which became the trampoline for the expansion of the new economical conditions. And as the closing boundary the year 1914 is chosen when at the beginning of the First World War the processes of trade development were stopped and the turnover of trade diminished. In a geographical sense the research encompasses three provinces: Vilnius, Kaunas and Grodno which were called Lithuanian by Tsars administration. In year the subordinate territories of the governor-general of Vilnius were reduced. After that Vilnius, Kaunas and Grodno formed a separate administrative unit controlled by the governor-general of Vilnius. Structure of work. The work consists of: a preface, three research sections, a conclusion, a resource list and a literature list and other additions. In the first part it is expedient to discuss these points: the Russian empire s specifics of economy and its influence on the economical development of the Lithuanian provinces, small and mediocre trade businesses domination, domestic trade development and the changes in the number of traders. Also the Russia s legislation 11

12 passing is discussed, which influenced the retail trade development of the Lithuanian provinces. Also the issue of Jewish traders dominance in the business is discussed which came into being because of the traditional ethno-confessional principles in the division of labor in the sphere of trade. In the second part the development of trade organizing, peculiarities and changes in the retail trade network of cities and villages are researched. Also further discussion involves manufacture, wholesale and retail trade relationship and their development; domestic trade structure reorganization while highlighting the spread of stock and change of consumption needs. In the third part the commercial institutions in the legal regulation are emphasized pointing out the flaws in the decree of trade and their impact on the outspread of illegal business relations such as: noncompliance with the trade regulations, tax evading, appearance of juridical and economical factors of organized smuggling and their expansion, book smuggling ratio and the commercial aspect of book carrying. I. THE ORGANIZATION OF TRADE AND ITS DEVELOPMENTS CONDITIONS 1. GENERAL CHARACTERISTIC OF ECONOMIC DEVELOPMENT OF THE LITHUANIAN PROVINCES The economical development of Lithuanian provinces in was coherent with the worldwide capitalistic system and with the Russian empire s economical development. The prime indicator of Lithuania s involvement into the world s market was the strong relationship between the country s economical condition and the tendencies of the world economy and its junctures oscillations. Another important factor that influenced the country s economy is the tsar s government s economical policy implemented across the whole empire which was destined to reach certain goals. The differenced 12

13 domestic toll rate and the protectionist toll policies were not the decisive factors by themselves. However they enclosed the Lithuanian provinces into certain economical conditions: because of the toll rate certain obstacles emerged for the export of goods and exportation into other provinces; using expensive imported raw materials for industrial production manufacture made the costs rose. Conclusively because of the higher cost the products could not compete in the market whereas using the locally available raw materials for production mostly only small light industry could develop. Despite the economical retardation and the obstacles created by the empire: the industry started developing, the agricultural production became more intense, the domestic market was expanding and the number of adapted residents to the economical situation also grew since the middle of XIX century in Lithuania. When the grain export possibilities diminished it was chosen to switch stockbreeding and dairying development. And since the last decade of XIX century the industrial manufacturing was becoming more intense as the economical involvement with other regions was expanding and the importance of trade grew. 2. THE SOCIAL STRUCTURE OF MERCHANTS AND THEIR WORK POSSIBILITIES After the Lithuania-Poland division the laws of the Russian empire started taking effect. Merchants of the Lithuanian provinces were divided into three groups. With certain restrictions trade was allowed to other castes like: noblemen, townspeople and peasants. Yet the laws of the first half of the XIX century indirectly restrained the possibilities of trade for the peasant (the largest layer of the society) and noblemen castes. The law of the 1824 had the most effect on the peasant involvement in the trade business because of the heightened tax rate and the decree of 1824 that restrained the rights of trade by the introduced order for purchasing the mandatory trading certificates 13

14 (they had to obtain the permit from a nobleman or a governor which not always was possible). In the first half of the XIX century the development of trade business among the peasants was slow there were few peasants that undertook the profession of a trader although it was common from the older times for artisans and peasants to sell their own production in their homes or near by marts. Besides that there was a strong competition of merchants and townspeople. The noblemen also didn t undertake the expanding of professional trade. Till the decrees of (because of the decree of year 1807 and 1824 for the noblemen of the west provinces that undertook trade it was mandatory to register as merchants) and the heavy business tolls it was more beneficial for the noblemen to trade through middlemen (in this case Jews) and not to join a guild. Even after the elimination of the guild s restrictions for noblemen and the given privileges for the third guild by the decree of year didn t elevate the urge for business development. The Noblemen (a caste having vast economical opportunities) took poor economical initiative. Only progressive and most educated noblemen promoted the innovations in manufacture. The law didn t have much effect on the noblemen s ability to do business. Likely the cause of the poor enterprise in the sphere of trade was more influenced by old traditions and the community s views on business. The conservative view point of the community on the noblemen s trade activities could have been one of the obstacles strangling their initiative. The well organized trade system by the Jewish merchants also could have been a great obstacle. In the middle of the XIX century townspeople and Jews were professionally undertaking trade. Most of the merchants were managing according to the townsman s license or joined the third guild. In the second half of the XIX century after the reforms of 1861 trade started intensifying. Although in the Lithuanian provinces the business wasn t on a large scale because of: heavy local competition, narrow consumer market and heavy business tolls. Though the number of merchants in the eight tenth decades increased the most in the first and the second guilds, still the merchant caste wasn t vast. The small 14

15 and mediocre business dominated. In the eight decade the joint average of bought small trade and guild licenses were: 85.73% in the province of Vilnius, 82.30% in the province of Kaunas and 85.60% in the province of Grodno. In the tenth decade the joint average of bought licenses was respectively 82.20%, 80.26% and 82.09%. The percentile increase of the bought licenses for the small and mediocre businesses while comparing the eight (taking the ninth decade in the province of Grodno) and the tenth decades was: province of Vilnius 53%, province of Kaunas 75%, province of Grodno 43%. The Vilnius and Grodno province s examples illustrate that the domestic retail trade market was still expanding in XX century s beginning: in the province of Vilnius through the years the number of bought licenses for small trade increased an additional 32%, in the province of Grodno through years the increase was 13%. 3. TRADE AS A SPHERE OF ETHNO-CONFESSIONAL DIVISION OF LEBOR In the XIX century trade was the Jewish ethno-confessional minority s sphere of specialization and dominance. With it (and other businesses) only a small number of residents managed of a non Jewish origin. This condition was influenced by the law of the Russian empire the Jews were forced into a certain economical frame. Moreover the trade regulating laws by themselves strengthened their positions in the trade business. The goal of governmental institutions to integrate Jews into the townspeople caste by: evicting them into cities and making them constantly fear of being written off into the category of the useless could have stimulated them to choose crafts and trade. And the prohibition for the Jews to buy land could have strengthened the positions of the Christians in the sphere of agricultural production. In this situation the niche of trade was overtaken by Hebrews almost by a 100% and the agricultural production almost by 100% by the Christians. In year 1897 in the Vilnius province the sphere of 15

16 agriculture was occupied by: 99.01% of Christians and 0.9% of Hebrews; the sphere of trade was occupied by: 9.6% of Christians and 89.5% of Hebrews. In the Kaunas province the sphere of agriculture was occupied by: 94.7% of Christians and 1.3% Hebrews; the sphere of trade was occupied by: 11.5% of Christians and 87.0% Hebrews. And similarly in the Grodno province: agriculture 99.2% Christians and 0.7% Hebrews; trade 4.4% Christians and 94.7% Hebrews. It could be that the strong competition of Jews and the dominance in the sphere of trade and also the well organized retail trade network structure fully satisfied the needs of the country s residents. Consequently it suppressed the peasants (noblemen s as well) initiatives to get involved in the trade business. Because seeing the dominance of an other ethno-confessional group in one of the businesses the peasant could assume that the business was their tradition. It is considered that because of the composed tradition and with the presence of a strong competition in trade no merchants with large capitals emerged from the ranks of peasants. And only a few of the artisans and peasants professionally undertook trade. Besides that in this context of moral values a righteous Christian (especially a god fearing peasant) raised by the traditions of the Christian village probably wanted to protect him self from the alien disgraceful and dishonest as well as Jewish activities. So the Christians avoided any other form of business except for the Christian agriculture. Therefore the religious peasants looked upon trade as a business that is unsuitable for Catholics. The nationalism s ideologists of the XIX century s ending of the XX century s beginning endeavored to reinterpret the ability to make business as suitable type of economical activity for the reviving nation. These endeavors were in synchrony with the ongoing commercialization process and the changing economical activity conditions. Since the second half of the XIX century the traditionally agricultural Lithuanian/Belarusian ethno-cultural groups emerged into this orbit. Little by little mastering the trade skills the villagers indulged into trade business. However even after the economical 16

17 reforms of 1861 when the number of traders grew the residents of a non Jewish origin majorly were immersed into the business slowly. The breaking point was in the end of the ninth decade when the mores and the manner s standards of economy were changing. And the Christian part of the society changed its attitude towards the trade while gradually undertaking business. In the beginning of the XX century in the Kaunas province a little more than 10% of the peasants and 5% of the noblemen were professional traders. Those numbers are not huge but Kaunas province s data shows that in the beginning of the XX century there were peasants and noblemen undertaking a stable niche in the professional trade business. II. THE DEVELOPMENT OF DOMESTIC TRADE FORMS AND ITS STRUCTURAL SHIFTS There were various forms of domestic trade in the Lithuanian provinces. In towns and townships without the stationary shops (mostly small shops like kiosks) the trade business was located in market-places and marts whereas villagers could purchase needed goods from inns and carriers. 1. UNSTABLE TRADE FORMS AND THEIR COURSE OF DEVELOPMENT 1.1 TRANSPORTATION AND CARRYING TRADE The transportation and carrying trade forms were especially convenient till the middle of the XIX century when the domestic market was poorly developed and the distances were relatively large to the nearest market as the transport communication was undeveloped. On the other hand the peasants weren t free. The noblemen restricted trading for the peasants by buying their 17

18 production cheaply and forcing to buy at a high price. Moreover even if the peasant was to go to a market-place there was no guarantee he would sell his product at a higher price than the offered on the spot by the nobleman and buy cheaper than offered by the carrier. Thus till the reform of year 1861 villagers had to feel more confident when selling their production to resellers which often visited the villages and bought the every day products from carriers which presented the goods directly to their homes. After the elimination of the corvee and the regulation of the new decrees new opportunities have opened for the villagers to act on their own in the trade business. The mart and the market-place as well as the agricultural production sale s networks were expanding. In towns and townships alongside the market-places more stationary shops were opened which spread across villages and the outskirts of the cities making an even distribution of trade spots in the whole territory in the end of XIX century. In these conditions in the Lithuanian provinces (contrariwise to other places where there was no dense settlement network and the settlements were hardly reachable) as the network of marts-markets and stationary shops thickened there was no objective need for expanding such a trade form. Though the exact turnover of this trade form is not known because of the flaws in accounting left some possibilities to bypass the law and so a part of the official statistics wasn t registered. Overall in Lithuanian provinces by the year s 1897 census data there were 3321 individuals who assigned them selves to the category of transporters and carriers (6.0% self-willed residence who managed trading) although by the official statistical data only 150 of them (or 0.45%) bought the license for trade. This shows that the number of transporters and carriers was much greater than denoted in the officers statistical reports. From time to time this form of trade was livelier. However in the second half of the XIX century when the conditions for business were changing there was a clear tendency that transportation and carrying trade form was declining. The expanding domestic market had much effect on these changes. 18

19 1.2 THE ROLE OF MARTS IN THE STRUCTURE OF THE DOMESTIC MARKET Till the appearance of the railroad and manufacture marts had an important role in trade. Not only peasants and artisans but also rich merchants came to the marts to sell their goods. Here the imported industrial goods were sold as well as the local production intended for export. Also agricultural produce, artisans and homeworkers production, various household wares and imported goods from other regions here were sold by retail and wholesale. The importance of foreign and interregional trade grew as Lithuania immersed into interlocal market exchange. As the possibilities for export were expanding the scope of manufacture and agricultural production grew as well as the general indicators of the turnover of trade. The domestic market expanded and its structure changed as: the economical conditions were changing, the manufacture and mass production spread MART ORGANIZATION PERIODICITY AND THE NATURE OF TRADE Big marts didn t take place in the provinces of Vilnius and Kaunas. Till the end of XIX century the St. George s ( ) mart was very important in the Vilnius province and since the last decade of the century gegužine of Vilnius (taking place in may) and the horse marts ( and ). The province of Kaunas was known for its Zarasu (15.01 and 03.08), Šiluvos (08.09) and Vizdžiu (06.01, 16.07) marts. The marts that were closer to the boarder specialized in agricultural produce that was meant for export as it was comfortable to trade with foreign merchants. In the Grodno province in the first half of the XIX century the most famous was the Zelva mart (25.06 / ). In the sixth decade its turnover often was more than 1 million rubles and it was larger than the joint annual turnover of marts of Vilnius or Kaunas. Traditionally marts worked 1 2 days, sometimes a few weeks and rarely a month. Often marts were organized on church holidays when 19

20 the peasants were free from their duty to the landlord. The most popular marts were associated with Easter holidays and the names of the saints. Although in the middle of the XIX century s Vilnius provinces the mart network was not strongly developed so it had a more seasonal nature. The reason was behind the low living standards and the agricultural traditions that made the consumption of different goods low. Moreover the majority of the residence provided with the most necessary goods for them selves. Most of the marts were organized during April-June and September-October. These periods are associated with: relatively good weather conditions, with the beginning of a new season for agriculture when the needs of peasants where high and the September-October period after the harvest peasants could sell a portion of their production and buy the most necessary goods for the winter season. Since the sixth decade not to disturb the trade in the already existing marts (which were held on the popular moths) new marts were organized on the unpopular months. In the tenth decade when the number of the marts grew the distribution became fairly equal across the year. Yet 50 60% of the marts were still held during April- June and September-October. Together the assortment of goods changed. After the economical reforms of year 1861 the appearing production of local factories wasn t sold in massive amounts through the network of marts. Only a small portion of the industrial goods made its way through the retail market into the marts which was intended to satisfy the needs of local residents. Since the eighth decade of the XIX century the horse marts became essential to the country s trade. Since the last decade of the XIX century the main assortment of goods in marts of Lithuanian provinces was: agricultural produce, cattle and poultry intended for export into Prussia. A lot of marts in the provinces of Kaunas and Vilnius specialized in flax and linen product trade. Lithuanian flax was exported into France, Germany, Belgium, England and Austria. Meanwhile the mass production industry created its own sale s network for production handling in the eighth tenth decades of the XIX century. 20

21 THE DYNAMIC OF THE MART NUMBER GROWTH AND CHANGES IN THE TURNOVER OF TRADE In the second half of the XIX century the mart network expanded: in the Vilnius province in year 1862 marts were organized in 31 settlements, ; in the Kaunas province of year 1852 in 22 settlements, year ; in the Grodnos province: year , year In the Provinces of Vilnius and Kaunas the number of large marts (with a daily delivery of goods worth more than rubles) grew together with the indicators of foreign trade and wholesale (In the province of Vilnius since 1879 to 1911 from 7.2% to 15%. In the province of Kaunas during from 5.25% to 15%. Yet in the Grodnos province during the period of the number of marts declined from 10.87% to 3.85%). Around 60 70% of all of the marts in the Lithuanian provinces were of small nature and satisfied mostly the needs of the local residents. The cost to deliver the goods into those marts didn t exceed 5000 rubles and the profit made up 40% of the price deliverance (in later decades 60%). The joint turnover of all marts was rising because of the increasing mart number where as the change in the turnover was influenced by local specifics and world conjuncture. And in the seventh decade the turnover of marts diminished because of the political events and the general economical depression in the transition period. In the ninth tenth decades the trade in marts stabilized and in the first decades of XX century it even started to grow. The upturn of the turnover in marts at the time of the re-establishment of agriculture was influenced by: the agriculture commercialization tendencies, the growth of the number of residents and close contacts with the foreign market. The growth of the turnover of marts in the first decades of the XX century is associated with the Russian empire s (also the Lithuanian provinces ) economical upturn and growing opportunities for agricultural produce export. The statistics of the second half of the XIX century point to the constant growth of the number of marts since the middle of the seventh decade and the growth of the turnover of trade in them till the 21

22 beginning of the XX century. However a more detailed data analysis shows that the majority of the marts had a diminishing turnover in the end of the XIX century or a change of the dominator. Comparing the marts common trade turnover data with the turnover average we can clearly see the reduction of the data s average. In the Vilnius province the average value of brought goods balances on the mark of The average of sold goods started to rise in the eighth decade and stabilized in the beginning of the XX century after crossing the 4000 rubles mark. Similar tendencies prevailed in the province of Kaunas when the joint turnover of marts was rising while the average was diminishing. In the Grodno province equal change is observed in the joint and the average turnovers. Here the mart data is dependant on the Zelva mart which had a turnover up to 77% (as an example in year 1860) of the total mart turnover of the province. Consequently when the mart started declining in the end of the seventh decade the general indicators of marts of the province had to decline too. In the last decade of the XIX century officers which gathered the statistical data of the Grodno province stated that apart from the Cechanovec mart (which spanned over 7 days) all other marts worked one day and they only satisfyed the needs of local residents by providing agricultural produce so to say no large transactions were made. Besides that the large marts of the Grodno province were outrivaled by the marts organized at the same time in Vilnius and Warsaw. The diminishing importance of marts in the trade structure and reorientation to agricultural produce trade were caused by a few factors. Firstly while the manufacture was expanding the structure of goods sales were changing in the end of the XIX century: while the manufacture was expanding the wholesale of large-scale industrial products didn t expand because of the trade specifics inside the marts. The industrial production started to be sold directly from the factories or through the wholesale warehouse and retail store network where as the agricultural production in marts and through a special wholesale warehouse network dedicated to the agricultural production (grain, flax, timber etc.). After the appearance of the railroad and the improvement of transport communications constant connections were 22

23 made with the centers of manufacture which upturned the supply of the shops with goods from distant provinces. Also railroads vitalized the interregional transportation of goods inside the country and to / from foreign countries. At that time opportunities opened for manufacturing companies to constantly supply their clients and other. After the differentiation of the sale s market the turnover of trade diminished when looking at marts separately. In marts cultivators or artisans could vend their own production without any middlemen. That is why the growing number of marts rather shows: the tendencies of agriculture commercialization, the reorientation of peasant agriculture to manufacture for the market and their involvement in trade and becoming businessmen than the mart s as a trade form s modernization. 1.3 THE FEATURES OF THE MARKET-PLACE NETWORK DEVELOPMENT In the Lithuanian provinces the market-place network developed more rapidly since the middle of the XIX century when the tsar s government started to implement economical reforms. In pursuance of the treasury s revenue increase the economy s regulation system was changed: mandatory inventories were introduced (firstly in governmental estates) and corvee was substituted with monetary rent. So that peasants could sell their own production tsar s government started establishing new markets. Yet the market-place network expanded through out the whole researched period as tsar s officers gave out the licenses for market establishing till the beginning of the XX century. Market-places were not organized during Saturdays because the Jews dominated the trade while the most popular day for marketplaces was the Sunday. Yet on Sundays and holidays it was allowed to start the trade after the celebration and forms of worship. In the end of the XIX century in townships of Lithuanian provinces market-places were organized on: Sundays, Thursdays and Mondays where as in 23

24 towns on Mondays or Sundays, Wednesdays and Fridays. In townships in which market-places were organized once per week Thursdays are chosen, rarely Tuesdays. In places where the majority of the residents were Jews market-places were organized on Fridays as well. In the second half of the XIX century beginning of the XX century the commercialization of peasant agriculture and direct peasant involvement in to the trading business had a huge influence on the expansion of the market-place network when the caste got bigger commercial rights. Also more opportunities were given to peasants to access the sphere of trade: squires could not restrain peasants in trade cause of that the number of merchants increased and so did the competition and the monopoly of buyers weakened. In the second half of the XX century the main assortment of goods in market-places was the manufacture and food products made by peasants and artisans. This phenomenon explains the specialization of the market when the turnover of manufacture expanded and marketplaces (so as marts) could not fully satisfy and assure the constant sale s demands for industrial production. For those needs to be satisfied more stationary trade companies (such as shops) which worked during the whole week were opened. Market-places became the places of artisan s and peasant s production sale which managed with accidental trade because of the specifics of trade (here contrariwise to the shops you didn t have to have a permanent spot for trading and all the willing participants could vend; furthermore they could come on the time that was comfortable for them). From a consumer handling view point the market-place system was more comfortable than the mart system (market-places were organized 1 3 times per week whereas marts were organized 2 4 times and rarely 6 8 times per year) and more reliable than the transportation and carrying trade system (market-place s work schedule was stable and well known for everybody whereas carriers could not assure the constancy). This became an important circumstance in attendance to the needs of a settlement with few consumers. Yet in larger townships and towns where there were more 24

25 consumers than in villages the market-place system could only partially satisfy the consumers needs because the consumers wanted to buy the most necessary goods every day at a comfortable time. In the sphere of consumer attendance service this flaw was eliminated by the stationary shop system. 2. THE QUANTITATIVE AND QUALITATIVE STATIONARY RETAIL TRADE NETWORK EXPANSION PECULIARITIES 2.1. THE TOWN VILLAGE AND THE SMALL MEDIOCRE BUSINESS ROLES In the middle of the XIX century the majority of the stationary trade companies were still established in towns and large townships although there were only a few of them while the work schedule was instable. Because the residence used their own and artisan made production and only imported or unavailable goods were bought in stores. In the second half of the XIX century the beginning of the XX century the work schedule of companies was changing and their number increased: In the Vilnius province through out the number of stationary trade companies which paid the percentile tax and the distributive tax could increase over 214%, in the Kaunas province through out %, in the towns and townships of the Grodno province through out %. The truth is that because of the common oscillations in the company development dynamics the growth of the company number was not uniform. Such factors as industrial crisis or crop failure, the domestic market supervision control tightening or implementation of the excise duty had an influence on the trade company number oscillations. Yet the store number growth dynamic was not uniform in: the administrative and outskirt centers of provinces, towns and townships, villages and settlements. A specially big separation can be observed in the empire s province and general-government s centers. In the second half of the XIX century 40% of the total number of stationary trade 25

26 companies belonging to the Vilnius province concentrated in Vilnius and in the surroundings. In Kaunas till the last decade of the century concentrated 40% of the total of stationary trade companies of the Kaunas province while in 1895 even 47% of all of the province s companies were working. In the Grodno province in the middle of the XIX century a few stationary trade network centers are visible: in Grodno, Slanim, Kobrin, Bialystok and Brest while in the beginning of the XX century only three centers were left: in Grodno, in Slanim and in Brest. Inside them 60% of the province s shops were concentrated. In towns the majority of the residence could only buy the most important goods for life and because of that here trade had a higher meaning. Besides that the town consumed more because here the residence was higher in number and the needs were higher than in villages or townships. In the first post-reform decades no special trade structure changes were made: the processes of growth of the stationary trade market and the expansion of the assortment of goods underwent slowly. Firstly the domination of agricultural businesses in townships and small settlements even in the first post-reform decades let the residents to fully satisfy their needs with minimal expense. Expansion of the network and its stabilization started somewhere around the middle of the ninth decade. That was the time when the scope of industrial manufacture grew and the commercialization of agriculture accelerated. Also the specialization in manufacture got clearer as the industrial production scope increased and the commercialization of agriculture spread. Together the consumption grew and the need for industrial consumer commodities as well as food products escalated. The consumption needs of villagers grew and there was an increased need for stores in them (for example in the Vilnius province in the end of XIX century beginning of the XX century the majority of villages had at least one store). As the stationary trade network expanded the trade companies work schedule changed. With the expansion of manufacture and mass consumer commodity production the need for a massive sale s network emerged. A network that could ensure constant sale s for 26

27 production companies. For satisfying those needs the network stationary trade was most suitable. Because trading forms such as: marts, market-places, carrying and transportation could not ensure it completely due to the instable work schedule. In the researched period in the Lithuanian provinces small mediocre shops dominated. The dominance of small and mediocre companies in the Lithuanian provinces can be explained by a few factors: 1) here as well as in other provinces of the Russian empire the privilege of a large capital were not accessible to small merchants; 2) the maintenance of a small or a mediocre company didn t require big funding nor big expenses for accommodations and inventory renewal nor hired employees all of this was done in time by the owner or his family. 2.2 THE CHANGE OF PREFERENCE AND CONSUMPTION In poorly industrialized Lithuanian provinces the lower quality goods made by artisans and home workers were still widely used. Furthermore the primary commodities and the main part of food production people made by them selves. At that time in the Western Europe countries appealing manufactured goods were appearing. In poorly industrialized Lithuanian provinces food production and consumption traditions changed slowly. In the seventh decade of the XIX century while the industry was still undeveloped the assortment of consumer commodities underwent little change. Besides that from view point of demand (even more the assortment expansion of consumer commodities) because of certain policy and economical factors this was not a time of novation installment. Even in the eighth decade of the XIX century the assortment of goods in shops little did change. The change in assortment of goods can be discussed from the ninth decade of the XIX century. Yet the essential turning point for consumption happened in the last decade of the XIX century when: the industry and agriculture developed rapidly, the consumer paying ability grew and 27

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