Based on its military and fiscal apparatus, absorbing the major part of the country's resources, the government increased its annual budget to an enormous amount of two billions of rubles, it made the stock-exchange of Europe its treasury and the Russian tax-payer a slave to European high finance. Gradually, the Russian state became an end in itself. It evolved into a power independent of society. It left unsatisfied the most elementary wants of the people. It was unable even to defend the safety of the country against foreign foes. Yet, it seemed strong, powerful, invincible. It inspired awe.
It became evident that the Russian state would never grant reforms of its own free will. As years passed, the conflict between absolutism and the requirements of economic and cultural progress became ever more acute. There was only one way to solve the problem: "to accumulate enough steam inside the iron kettle of absolutism to burst the kettle." This was the way outlined by the Marxists long ago. Marxism was the only doctrine that had correctly predicted the course of development in Russia.
In the _second_ chapter, "City and Capital," Trotzky attempts a theoretical explanation to the weakness of the middle-class in Russia. Russia of the eighteenth, and even of the major part of the nineteenth, century, he writes, was marked by an absence of cities as industrial centers. Our big cities were administrative rather than industrial centers. Our primitive industries were scattered in the villages, auxiliary occupations of the peasant farmers. Even the population of our so called "cities," in former generations maintained itself largely by agriculture. Russian cities never contained a prosperous, efficient and self-assured class of artisans--that real foundation of the European middle class which in the course of revolutions against absolutism identified itself with the "people." When modern capitalism, aided by absolutism, appeared on the scene of Russia and turned large villages into modern industrial centers almost over night, it had no middle-class to build on. In Russian cities, therefore, the influence of the bourgeoisie is far less than in western Europe. Russian cities practically contain great numbers of workingmen and small groups of capitalists. Moreover, the specific political weight of the Russian proletariat is larger than that of the capital employed in Russia, because the latter is to a great extent _imported_ capital. Thus, while a large proportion of the capital operating in Russia exerts its political influence in the parliaments of Belgium or France, the working class employed by the same capital exert their entire influence in the political life of Russia. As a result of these peculiar historic developments, the Russian proletariat, recruited from the pauperized peasant and ruined rural artisans, has accumulated in the new cities in very great numbers, "and nothing stood between the workingmen and absolutism but a small class of capitalists, separated from the 'people' (i.e., the middle-class in the European sense of the word), half foreign in its derivation, devoid of historic traditions, animated solely by a hunger for profits."