Russia on the Black Sea and Sea of Azof

The subject of the opening of the Danube is so intimately connected with the countries about which I have written, that I think it will be interesting to the public to read the following memorandum which has just been sent home by Mr. Cunningham, the English Consul at Galatz, and a merchant at that port.

MEMORANDUM.

As the navigation of the Danube forms one of the Four Points to be settled between the Allies and Russia, there can be little doubt that the present war will not terminate without the navigation of that river being placed on a clear, secure, and lasting footing, and such as to encourage the investment of capital in mercantile enterprises in the vicinity of this river. Further, that those nations interested in the trade and navigation of the river will adopt proper means not only to remove all material impediments to the navigation in the first instance, but also that they will provide a permanent fund, by a tax on vessels frequenting the river or otherwise, to keep the channels in the best state for the security and despatch of shipping; and will further make such arrangements as shall appear most conducive to the extension of the trade of the countries situate along its banks.

No one measure would conduce more to the facility of the trade and navigation of the river, to the prosperity of the countries on the Lower Danube, and to the extension of their agriculture, than the formation of a free port at the mouth of the river Danube.

In order to understand the advantages which a free port at the mouth of the Danube would confer on the trade of the river, it is necessary to state how it is carried on at present, and the difficulties it has to contend with, particularly in the export trade in grain.

All the grain of Wallachia is exported from Ibraila.

All the grain of Moldavia is exported from Galatz.

All the grain of Bulgaria which goes out by the Danube is exported from Matchin.

Note.—In spring, when the water in the Danube is high, some small sea-going vessels go up to Silistria to load Bulgarian wheat, and to Giurgevo to load Wallachian wheat.

All the grain of Bessarabia which goes out by the Danube is shipped from Reni and Ismail.

The grain, the produce of one of these provinces, cannot be brought to any other province, not even for shipment, but the vessel must go to the port where the grain is in order to receive it.

This state of things causes much trouble, inconvenience, and expense to the merchant, as the merchant residing in one of the towns mentioned (generally in Galatz) may be shipping grain from all these ports at one time, without being able to ascertain the quality or condition of the grain he is shipping at any port excepting at the place where he resides. It is also inconvenient and expensive to shipmasters, who must first call at Galatz for orders, and may afterwards be sent to any of the ports mentioned.

Galatz and Ibraila are called free ports by their respective governments, but most improperly so: first, grain and tallow cannot be brought from Wallachia into Galatz, nor from Moldavia into Ibraila; the importation of these two articles into Moldavia or Wallachia from any quarter whatever, even for exportation, is prohibited. It follows therefore that the grain of Turkey cannot be warehoused in Galatz or Ibraila for exportation. As grain forms nine-tenths of the export trade of the Danube, it follows that the name of Free Port is altogether illusory.

Excepting the above two articles, and salt, all other articles may be brought into Galatz and Ibraila, and exported without payment of duty, provided the following forms be observed. On introducing the article it must be declared for exportation, and it must not be sold. If sold, the buyer must pay duty on exporting the article. But it must be observed that all articles the production of Moldavia and Wallachia are brought into Galatz and Ibraila respectively by land without payment of duty, and the duty is only paid on being exported by water from the so-called free port.

It is scarcely necessary to add that as in Turkey and Russia there is no pretension to a free port, the duty on all articles sent into either of these countries would have to be paid on entering, and again on being exported. The introduction of grain into Russia is prohibited.

It must be evident that it would be very advantageous to the export trade of the Danube, which is at present almost entirely confined to grain, to have some one point where the grain from all the different shipping ports could be brought forward in river craft, and there loaded on board of sea-going vessels. This can only be effected by having a free port established. But this free port would be equally advantageous for imports, which, being brought to one place, could be more conveniently sent forward to their various ports of destination along the Danube.

As steam power for river navigation has such an evident advantage over sailing vessels, it is quite behind the age to take sailing vessels 100 miles up a river for cargo, when the cargo can be brought down more easily and economically to the mouth of the river by steam; it is therefore apparent that, in seeking to establish a free port on the Danube for the first time, it ought to be placed as near as possible to the sea. For this reason the free port should be placed either at the Sulina mouth or at the St. George’s mouth. As, however, Sulina consists only of a narrow strip of land between the river and a marsh, and as that strip is subject to be overflowed, Sulina is not suited for the site of a town. At the St. George’s mouth, on the right bank of the river, the land is high and well suited for the erection of a town, therefore the free port should in preference be placed there. It is probable that, on application being made, the Turkish Government would grant the rights of a free port to the whole of the island Ruselm formed by the Danube, the branch called Donnawitza, the lake Ramsim, and the sea. Even on the left bank, on the island of St. George, the ground is much higher than at Sulina. At the outset the St. George’s mouth presents a difficulty in comparison to that of Sulina, namely, whereas the Sulina mouth has only a single bar of about 150 yards broad, the St. George’s mouth has banks extending out fully a mile; but, as the entrance into the St. George’s has never been carefully surveyed, it is not known whether a channel may not extend all the way out, which only requires to be marked out by buoys; but in every case there can be no doubt that a channel could be opened up and kept open, at an expense which would fall very light on the number of vessels likely to enter it, in comparison to the heavy lighterage which they have hitherto had to pay at Sulina. The St. George’s branch is much finer than the Sulina; it discharges at least ten times more water than the Sulina does, and this should render it easy to make a deeper channel than at Sulina; it is much broader, and therefore would afford more accommodation for shipping. It may be asked why, when the St. George presents so many advantages over the Sulina, no attempt has been made to render these advantages available? but when it is considered that Russia only held the left bank of this branch, while Turkey held the right bank, whereas Russia held both sides of the Sulina branch, it is evident that it was for the advantage of Russia to keep the St. George closed, and thus have the whole trade of the Danube under her control.

To show precisely the disadvantage of having to ascend the river with sailing vessels to receive cargo, it may be stated that sailing vessels seldom arrive from Sulina at Galatz in less than fourteen days, and not unfrequently they take a month to come up. Again, in going down, what between putting part of their cargo into lighters in order to go over the shoals in the river, and what by grounding and getting the vessel off again, three weeks or a month are frequently consumed between Galatz and Sulina. But the best proof is in the rates of freight, as a vessel, obtaining 12s. per quarter from Galatz to England, would take cargo from the mouth of the Danube to England for 8s. per quarter.

No doubt a vessel might save much time by being towed up the river by a steamer; but there would always be danger of the vessel grounding, and part of the cargo would always have to be put into lighters. The steamer could bring down four times more grain in proper barges than the vessel could carry, and in less time.

The uncertain political position of the Danube, and the difficulties and delays caused by quarantines, have hitherto prevented steam navigation from taking any considerable extension in that river; in fact, there have not yet been any steamers exclusively for the trade of the Principalities and Bulgaria. The steam navigation on the Lower Danube at the commencement of the present war with Russia was as follows:—The Imperial Royal Danube Steam Navigation Company of Vienna despatch a steamer weekly from Vienna to Galatz, and vice versâ. A steamer went weekly both up and down between Galatz and Turno Severin, on the Wallachian side of the river; and a steamer weekly between Galatz and Skella Cladova, on the Turkish side of the river. Besides these steamers, this Company had occasionally tugsteamers between this place and Calafat; and within the last four years it has had a number of iron barges, called shlepfs, on the Lower Danube, to be towed by steamers, for the conveyance of grain and other merchandise. The Austrian Lloyd’s Steam Company of Trieste had steamers performing six voyages monthly between Galatz and Constantinople: this Company also kept a steamer plying between Galatz and Ibraila. The Russians had a steamer performing two voyages monthly between Galatz and Odessa.

When, however, the trade and navigation of the Danube shall have been placed on a satisfactory and permanent footing, there can be little doubt that the companies having steamers on the Danube will increase their number, so as to meet the requirements of trade; or, should such not be the case, other companies will be established, as capital cannot be long wanting for an investment which offers at once security and good returns.

Until the war between Russia and Turkey in 1828, grain and tallow from the Principalities could only be sent to Constantinople. Certain Turkish commissioners came yearly to the provinces and purchased grain, fixing their own price for it, and that price was so low as not to be remunerative to the cultivator. Consequently, very little grain was then grown in the Principalities, and it was harvested and brought to market in a most careless manner, having a great deal of earth and dirt mixed with it, and the quality was very bad.

By the Treaty of Adrianople, the Russians gave free trade to the Principalities and the cultivation of grain was extended. So soon as the exportation of grain from the Principalities began to take a certain extension, the Russian Government perceived the double error it had committed, and endeavoured to correct it: this double error was, first, the trade of the Principalities was increased, and the attention of Europe was thereby called to them; secondly, the grain exported from the Principalities came into competition and lowered the price of the grain of the Russian ports on the Black Sea. For this end the Russians prevented the establishment of a general entrepôt on the Danube; they imposed vexatious quarantine regulations on shipping and merchandise; and they prevented the removing of banks and shoals and other impediments to the navigation of the river.

Notwithstanding all these discouragements and impediments, the exportation of Moldavia and Wallachia by Galatz and Ibraila down the Danube in the year 1852 had reached the following quantities:—

The exportation of grain from Turkey, and consequently from Bulgaria, was prohibited until the year 1839, when the exportation was allowed by the treaty of commerce made between Turkey and England in that year. The exportation of grain from Bulgaria by the Danube has made very little progress hitherto, and not more than 200,000 quarters of grain of all sorts have been exported by the Danube in any one year.

There are many reasons no doubt for this want of progress; among which are, the improper interference of the Turkish Government, which has already forbidden the exportation of grain four different times, under pretext that there was a scarcity of grain in Turkey; the interference of pashas and other Turks in authority, who are always endeavouring to have a monopoly of the grain trade of their districts; also the insufficient protection of the cultivators. But another reason, and which had great influence, was the want of a proper place for shipping on board of sea-going vessels, as there is no place on the Turkish side of the Danube with suitable warehouses, and Turkish grain was not allowed to be warehoused in Wallachia or Moldavia.

Little doubt can be entertained, that inquiry will be made into the causes which prevent the extension of agriculture in Turkey for the purpose of removing them, and that, in consequence, the exportation of grain from Bulgaria will increase rapidly.

Grain of Bessarabia is exported from Reni and Ismail on the Danube, but by far the larger portion of the produce of that province goes to Odessa for shipment, being attracted to that place by the lower rate of freights which prevails there than on the Danube. Were the freights from the Danube reduced to the same rates as those from Odessa, there can be little doubt that nearly the whole of the grain produced in Bessarabia would be brought to the Danube for shipment. The quantity of grain exported from Ismail is larger than what is exported from Reni; in the year 1852 the quantity exported from these two ports may have amounted, to 400,000 quarters. It is proper to observe, that although Ismail is situate on the Kilia branch of the Danube, yet the vessels at present frequenting that port enter and go out by the Sulina branch, and would consequently go by the St. George’s were it rendered more commodious.

From what has been stated it results that the quantity of grain exported from the Danube in 1852 was:—

But the production of Moldavia and Wallachia goes on increasing at the rate of about five per cent. yearly, and should this free port be obtained, a further impetus will be given to the exportation by the reduction of freights. For the same reason it may be expected that the exportation of Bessarabia by the Danube will be greatly increased, as produce, in place of being carried to Odessa, will be brought to the Danube for shipment. Then as regards Bulgaria, taking into account internal impediments to cultivation, which may be expected to be removed, and facilities to exportation and lower freights, it cannot be doubted that the production and exportation of grain from Bulgaria will increase very rapidly. For these reasons it may safely be reckoned, that ten years after the establishment of peace, and a convenient free port near the mouth of the Danube, the following quantities of grain will be exported from the Danube:—

Regarding the present manner of bringing forward grain for shipment on board of sea-going vessels, it is to be observed that all the grain shipped from Galatz comes forward to that place by land. Of that shipped from Ibraila, not over one-fifth comes forward by land; the rest is brought down the Danube by river craft, called kerlatze, from Calafat, Islas, Giurgevo, Calarrach, &c. Latterly, the Vienna Danube Steam Navigation Company has occasionally brought down grain from Upper Wallachia in shlepfs or iron barges. Of the grain shipped from Bulgaria, a portion is shipped from Silistria by small vessels, which go up to that place in spring when the water is high; the remainder is brought down, by kerlatze, from Widdin, Sistove, Rustchuk, &c., to Matchin, for shipment. At Matchin some warehouses have lately been built. The grain shipped from Bessarabia is all brought forward to Reni and Ismail by land.

The rate of freight, by kerlatze, from Calafat to Ibraila, in the course of the last four years, has ranged from P. 60-P. 120 of the G. S. per 1000 okes, equal per quarter to 2s. 2d. to 4s. 3d.; but P. 80 per 1000 okes may be taken as the usual freight, or per quarter 2s. 10d., for conveyance the distance of 300 miles English. The freight charged by the Austrian Danube Steam Company for conveying grain in iron barges, towed by steamers from Calafat to Ibraila, varies according to the season and demand, but may be taken on an average at 30 kreutzers per 100 funti, 4s. per imperial quarter. The kerlatze, or river craft, perform a voyage from Ibraila up to Calafat, empty and back with a cargo of grain, in about two months. A steamer towing shlepfs can perform the same voyage in ten days.

The freight from Galatz to England may be taken as 50 per cent. higher than the freight from Odessa to England; thus, when freight from Odessa is 7s. per quarter, the freight from Galatz is 10s. 6d.: these are low freights. But were there a port at the St. George’s mouth, the freight from thence to England could never be more than from Odessa, but would probably be 10 per cent. less. Thus allowing 1s. or 1s. 6d. per quarter for freight from Galatz to St. George, there would be a saving, when freights were low, of at least 2s., and when freights were high 5s. to 6s. per quarter, in favour of bringing grain to the ships, in place of sending the ships to the grain.

There would also be a great saving on the Insurance, and in the time of sending the merchandise to market.

Charles Cunningham.

Galatz, April 4, 1855.

LONDON: PRINTED BY WILLIAM CLOWES AND SONS, STAMFORD STREET,
AND CHARING CROSS.