Duvan I Srpska Država U XIX Veku

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BO[KO MIJATOVI] Duvan i srpska dr`ava u XIX veku Tobacco and the Serbian State in the 19th Century BO[KO MIJATOVI] Duvan i srpska dr`ava u XIX veku

Tobacco and the Serbian State in the 19th Century BO[KO MIJATOVI] Duvan i srpska dr`ava u XIX veku Tobacco and the Serbian State in the 19th Century BO[KO MIJATOVI]

CENTAR ZA LIBERALNO-DEMOKRATSKE STUDIJE CENTER FOR LIBERAL-DEMOCRATIC STUDIES Bo{ko Mijatovi} Boško Mijatovi} DUVAN I SRPSKA DR@AVA TOBACCO AND THE SERBIAN STATE U XIX VEKU IN THE 19TH CENTURY

Izdava~ Publisher Centar za liberalno-demokratske studije Center for Liberal-Democratic Studies Za izdava~a For the publisher Zoran Vaci} Zoran Vaci} Grafi~ko oblikovawe Design by Slavko Milenkovi} Slavko Milenkovi} Olivera Stojadinovi} Olivera Stojadinovi} Autorske fotografije Original photographs by Neboj{a Babi} Neboj{a Babi} Slavko Milenkovi} Slavko Milenkovi} Prevod Translator Marija Rosi} Marija Rosi} Lektura prevoda Language Editor Anastasia Primbas Jelasity Anastasia Primbas Jelasity [tampa Printed by Cicero Cicero Tira` Print run 1100 1100 ISBN 86-7415-082-09 ISBN 86-7415-082-09 2006. 2006 Sadr`aj Contents

Predgovor 7 Preface 7 O PU[EWU U SRBIJI TOKOM XIX VEKA 9 ON SMOKING IN SERBIA IN THE 19TH CENTURY 9 UZGAJAWE I PRERADA DUVANA DO POJAVE MONOPOLA 25 GROWING AND PROCESSING OF TOBACCO BEFORE MONOPOLY 25 OPOREZIVAWE DUVANA 37 TAXATION OF TOBACCO 37 Regalna taksa 37 Regal Fee 37 Trgovinski ugovor sa Austrougarskom 39 Trade Agreement with Austria-Hungary 39 Tro{arina na duvan 42 Tobacco Excise Duty 42 TRGOVA^KI MONOPOL IZ 1884 47 THE 1884 TRADE MONOPOLY 47 POTPUNI MONOPOL IZ 1885 59 THE 1885 FULL MONOPOLY 59 Ratni zajam na osnovu duvana 59 War Loan on the Basis of Tobacco 59 Zakon o monopolu i ugovor o zakupu 62 Law on Monopoly and Lease Agreement 62 Otkup dela akcija monopola duvana 69 Buying Part of Tobacco Monopoly Shares 69 Fabrika duvana 73 Tobacco Factory 73 Fabrika {ibica 79 Match Factory 79 Krijum~arewe 81 Smuggling 82 Optu`ba protiv Vuka{ina Petrovi}a 88 Accusations against Vukašin Petrovi} 89 NACIONALIZACIJA MONOPOLA 93 NATIONALIZATION OF THE MONOPOLY 93 Sporazum sa zakupcem 93 Agreement with the Lessee 93 Mijatovi} i Vuji} 100 Mijatovi} and Vuji} 101 Zajam za isplatu monopola duvana 106 Loan for the Tobacco Monopoly Payoff 106 Dr`avna eksploatacija monopola 110 Government Exploitation of the Monopoly 110 Afera Mite Raki}a 114 The Mita Raki} Affair 114 Radikali na vladi 118 Radicals in Power 118 Seqaci i monopol 123 Farmers and the Monopoly 121 LIBERALI ZA UKIDAWE MONOPOLA 127 LIBERALS IN FAVOR OF MONOPOLY LIFTING 127 Diskusija o ukidawu monopola 127 Discussion on the Lifting of the Monopoly 127 Novi zakon o monopolu duvana 131 New Law on Tobacco Monopoly 132 Novi monopolski zakon na delu 145 New Monopoly Law at Work 146 Poskupqewe iz 1892. 150 The 1892 Price Increase 152 Posledwi poku{aj liberala 155 The Last Attempt by the Liberals 157 STABILIZACIJA MONOPOLA 161 STABILIZATION OF THE MONOPOLY 161 Kraqev dr`avni udar 161 King’s Coups d’État 161 Proizvodwa i potro{wa 1893. 166 Production and Consumption in 1893 166 Monopolska slava 168 Monopoly Patron Saint’s Day 169 Neutralne vlade 170 Neutral Governments 171 Karlsbadski aran`man 174 Carlsbad Arrangement 175 NOVI MONOPOLSKI RE@IM 181 NEW MONOPOLY REGIME 181 Ure|ewe Samostalne monopolske uprave 181 Structure of the Autonomous Monopoly Directorate 181 Pravilnik o pozajmicama proizvo|a~ima 187 Rules on Loans to Producers 188 Krijum~arewe 189 Smuggling 190 Ambiciozniji pristup u 1896. i 1897. 191 More Ambitious Approach in 1896 and 1897 192 Velikoprodaja duvana 196 Tobacco Wholesale 197 Poseta kwaza Nikole 199 Prince Nikola’s Visit 199 VLADA VLADANA \OR\EVI]A 203 VLADAN ÐOR\EVI]’S GOVERNMENT 203 Nabavke turskih duvana i proizvodwa 1898. godine 203 Procurement of Turkish Tobaccos and Production in 1898 203 Afere iz 1898. godine 207 Scandals in 1898 207 Prodajne cene duvana 209 Selling Prices of Tobacco 209 KVALITET DUVANA 217 TOBACCO QUALITY 207 VI[KOVI, MAWKOVI I SPOQNA TRGOVINA 223 SURPLUSES, DEFICITS AND FOREIGN TRADE 223 DR@AVNI PRIHODI OD MONOPOLA 233 PUBLIC REVENUE FROM THE MONOPOLY 233 Napomene 239 Endnotes 239 Ova kwiga ostvarena je zahvaquju}i finansijskoj pomo}i kompanije Philip Morris d.o.o. Beograd. This book has been realized thanks to the financial support of Philip Morris d.o.o. Beograd. Predgovor Preface

eriod kojim se bavi ova kwiga – XIX vek – zani- he period dealt with in this book – the 19th century – Pmqiv je i vaàn za duvansku industriju Srbije, Tis interesting and important for Serbia's tobacco po{to je u potpunosti promewen ambijent u kome se industry, since the environment in which tobacco busi- odvijaju poslovi sa duvanom. Umesto slobodnog predu- ness was conducted underwent a profound change. Free zetni{tva iz ve}eg dela veka, krajem veka postojao je entrepreneurship pursued for the most of the 19th centu- potpun i ve} stabilizovan dràvni duvanski monopol, a ry was replaced toward its end by a full and already stabi- umesto priproste poluzanatske obrade duvana indu- lized government tobacco monopoly, while primitive strijska prerada i proizvodwa cigareta automatskim semi-artisanal methods of processing tobacco were sup- ma{inama. U su{tini, ova kwiga prati radikalnu pro- planted by industrial processing and production of ciga- menu uslova u kojima se odvija duvanska delatnost u rettes by means of automated machines. Essentially, this Srbiji i wenu ekonomsku stranu. Centralna tema ove book is looking at the radical change of conditions in kwige, zna~i, nisu ni etnolo{ki, ni tehnolo{ki, ni which the tobacco activity was performed in Serbia and istorijski aspekt, ve} ekonomsko-finansijski, ali uz its economic side. Therefore, the pivotal topic of this book etnolo{ke, tehnolo{ke i istorijske komponente, is neither an ethnological, nor a technological, nor a his- onoliko koliko je to bilo potrebno i mogu}e. torical aspect, but the economic and financial one, though Posebnu te{ko}u u radu predstavqala je ~iweni- with ethnological, technological and historical compo- ca da je arhivska gra|a vrlo skromna, po{to su arhi- nents, to the extent which was necessary and possible. vi i Uprave monopola i Fabrke duvana uni{teni u I A special difficulty in working on this book was related svetskom ratu, kao i mnogi drugi fondovi Ministar- to the fact that archival materials are very scarce, since the stva finansija i srpske vlade uop{te. Tek se poneki archives of both the Monopoly Directorate and the Tobacco dokument o duvanu i monopolu moè prona}i u preo- Factory were destroyed in World War I, as well as many stalim fondovima Arhiva Srbije. Ni arhiv Narodne other holdings of the Ministry of Finance and the Serbian banke iz tog doba nije dostupan, odnosno u potpunosti government in general. Just an occasional document on je nesre|en. Ne postoje ni zasebna, a ozbiqnija ve}a tobacco and the monopoly can be found in the remaining ili mawa istoriografska dela o pu{ewu ili proiz- holdings of the Archives of Serbia. Not even the National vodwi duvana u Srbiji, osim kwiga Sevdelina Andre- Bank's archives from that period are accessible, that is, jevi}a za ni{ko podru~je s kraja XIX i tokom XX they are completely unorganized. There are no separate, veka. Par napomena o razvoju duvanske industrije u more serious historiographic studies either, in-depth or kwigama koje se bave razvojem industrije u XIX veku not, on smoking or tobacco production in Serbia, with the (Nikola Vu~o, Milorad \unisijevi}) svakako ne exception of the books by Sevdelin Andrejevi} for the

7 popuwavaju prazninu. A i monopolska uprava izbega- region of Niš from the late 19th century and in the course vala je svaki publicitet i bila gotovo neprimetna u of the 20th century. A couple of remarks on the develop- javnosti, posebno od 1895. godine, verovatno zato {to ment of the tobacco industry in the books dealing with the dr`avnom monopolu nije potrebna reklama. Stoga je 19th century industrial development (Nikola Vu~o, Milo- autor morao da se, vi{e nego {to bi voleo, osloni na rad Ðunisijevi}) certainly cannot fill the gap. Furthermore, onda{wu {tampu, stenografske bele{ke skup{tine the Monopoly Directorate tried to avoid any publicity and Srbije i se}awa javnih aktera iz toga doba kao was almost invisible in the public, particularly after 1895, osnovne izvore gra|e. probably because a government monopoly needs no adver- Zahvaqujem se kustosu Vesni Du{kovi} na sve- tising. Therefore, the author had to rely, more heavily than srdnoj pomo}i, posebno kod fotografija. Zahvaqujem it was to his liking, on the then press, stenographic notes of se i Etnografskom muzeju u Beogradu, Istorijskom ar- the Serbian Assembly and reminiscences of public figures hivu Beograda, Istorijskom muzeju Srbije i Muzeju from that period, as the primary sources of material. grada Beograda, koji su mi stavili na raspolagawe I am grateful to Curator Vesna Duškovic for her ve}inu fotografskog materijala kori{}enog u kwizi. unfailing help, particularly with respect to photographs. I Svi datumi u tekstu dati po starom, julijanskom would also like to express my gratitude to the Ethno- kalendaru, koji se koristio u Srbiji XIX veka i koji graphic Museum in Belgrade, the Belgrade Historical zaostaje za gregorijanskim kalendarom 12 dana od 18. Archive, the Historical Museum of Serbia and the Bel- februara 1800. do 17. februara 1900. godine. grade City Museum, which put at my disposal most of the photographs used in the book. 15. februar 2006. All the dates in the text are based on the old, Julian Autor calendar, which was used in Serbia in the 19th century and which was 12 days behind the Gregorian calendar from 18 February 1800 to 17 February 1900.

15 February 2006 Author

PREDGOVOR O pu{ewu u Srbiji tokom XIX veka ON SMOKING IN SERBIA IN THE 19TH CENTURY

@enu, pu{ku i lulu ne pozajmquj nikome. Never lend your wife, rifle and pipe. NARODNA POSLOVICA A POPULAR PROVERB

starijoj istoriji upotrebe i gajewa duvana ery little is known about tobacco use and grow- Ome|u Srbima i u Srbiji vrlo se malo zna. Po Ving among Serbs and in Serbia in the distant jednoj narodnoj pesmi, ~uveni narodni junak past. According to a Serbian folk poem, the famous Kraqevi} Marko bio je veliki pu{a~. Jednom folk hero Marko Kraljevi} (King Marko) was a heavy prilikom je Marko, malo podnapijen, sreo tri- smoker. Once Marko, a bit tipsy, met thirty Turks deset Turaka sa kapetanom na ~elu. Marku se led by a captain. Marko suddenly felt like smoking, prohtelo pu{iti, pa je zatraìo od Turaka da mu so he asked the Turks to fill his pipe. They took it napune lulu. Ovi je uze{e od neznanog delije i from the unknown brave man, started with the fill- po~e{e puniti, ode lula od ruke do ruke, tride- ing, and while the pipe went from hand to hand, the set kesa Turci istreso{e, ni tre}inu lule ne Turks emptied thirty tobacco pouches without fill- napuni{e. To se Marku nikako nije dopalo, te je ing as much as one third of the pipe. Marko did not kapetana lulom tako lako udario da ga je od kowa like it at all, so he hit the captain with his pipe so odmah rastavio. Rasterani Turci osta{e àle}i lightly that he threw the fellow from the horse in a kapetana, a Marko ode àle}i lule i duvana. single blow. The Turks remained there mourning Ovo, naravno, ne moè biti istina, jer je the captain, while Marko went away resenting the Marko ìveo u drugoj polovini XIV veka kada du- loss of the pipe and tobacco. van uop{te nije bio poznat u Evropi. Pesma je This, of course, cannot be true, because Marko o~igledno nastala znatno kasnije, kada je pu{e- lived in the latter half of the 14th century, when we postalo uobi~ajeno zadovoqstvo i za narodne tobacco was still unknown in Europe. It is obvious pesnike. Jo{ je zabavnije religiozno mi{qewe that the poem was created much later, when smok- nekih Srba iz Crne Gore iz prve polovine XIX ing became a customary enjoyment for folk poets as veka, koje je zabeleìo Vuk Karaxi}, da je duvan well. Even more amusing is a religious belief of ispao iz utrobe „prokletoga Arije”, {to bi some Serbs from Montenegro dating back to the morao biti hri{}anski jeretik iz IV veka, i da early half of the 19th century. Vuk Karadì} wrote 1 je zato „grehota duvan pu{iti”. that tobacco had fallen out of the belly of “damned

9 ârdak hoxine ku}e u Beogradu (Feliks Kanic) A closed balcony of the Khojah's house in Belgrade (Felix Kanitz) Duvan je u Srbiju sigurno do{ao preko Arija”, who should be a Christian heretic Arius from Turaka, odnosno Osmanskog carstva ~iji je deo the 4th century, and that it was the reason why Srbija bila. U Tursku su duvan verovatno doneli “smoking tobacco is sinful”.1 1600/1601. godine „engleski nevernici” nude}i Tobacco must have been introduced to Serbia ga kao „lek protiv nekih bolesti vlage”, kako re~e by the Turks, i.e. from the Ottoman Empire which jedan savremenik, turski istori~ar Pe~evi. Vrlo Serbia belonged to. In all likelihood, “English infi- brzo se pro{irio po svim pokrajinama, a ve} dels” brought tobacco to Turkey in 1600–1601, 1611. godine zabeleèn je u Srbiji: francuski offering it as “a medicine against some diseases of putopisac Lefevr video je u Prokupqu neke Turke humidity”, as described by one of the contempo- kako pu{e duvan u hladovini pored du}ana, a uz raries, Turkish historian Ibrahim Pe~evi. Very soon, kafu. No, uskoro su usledile zabrane uìvawa, sa it spread across all the provinces and as early as o{trim kaznama, ukqu~uju}i i smrtnu pod Mura- 1611 it was registered in Serbia: French travel tom IV (1633). Jedan od pamfleta protiv kafe i writer Lefevre saw some Turks in Prokuplje, smok- duvana napisao je u prvim decenijama XVII veka ing tobacco in the shade near their shop, over cof- muftija Muniri Belgradi, koji je ìveo u Beo- fee. However, prohibitions of this pleasure were gradu, a pod nazivom Spev protiv upotrebe kafe, soon to follow, with severe penalties, including cap- vina, opijuma i duvana. Duvan je ve} tada gajen na ital punishment under Murad IV (1633). One of the 2 Balkanskom poluostrvu. pamphlets against coffee and tobacco was written in Uzrok neprijateqskog stava osmanske vlasti the first decades of the 17th century by mufti prema duvanu izgleda da je leào u bojazni ili od Muniri Belgradi, who lived in Belgrade, with the poàra, po{to su ku}e uglavnom bile drvene, ili title An Epic against the Use of Coffee, Wine, od kuge, kako procewuju neki istori~ari. Zabrane Opium and Tobacco. Tobacco was already being ipak nisu ostvarivale svrhu, kao ni u drugim grown in the Balkan Peninsula then.2 zemqama, i – dràva je popustila polovinom The reason for an antagonistic attitude of the XVII veka. Shvatila je da je boqe napla}ivati Ottoman authorities toward tobacco seemed to be poreze, po ugledu na, nov~anim stvarima vrlo the fear of either fire, since the houses were mostly vi~ne, Mletke i Francusku kardinala Ri{eqea, wooden, or plague, as some historians think. Yet, koji su ve} krenuli putem monopola i taksi na the prohibitions failed in serving the purpose, as in duvan, nego ubijati podanike. Kako re~e Ibrahim other countries, and the state conceded in the mid- Pe~evi, duvan se tada pridruìo kafi, vinu i 17th century. It realized that, instead of killing their opijumu kao „~etvrti jastuk na sofi zadovoqstva”. subjects, it was better to collect taxes, following the Tako je ostalo zadugo i nije se bez razloga u example of the Venetians, known for being very Srbiji do dana dana{weg odràla sintagma skillful in financial matters, and Cardinal Riche- „pu{i kao Tur~in” za nekoga ko puno pu{i. Da je lieu’s France, that had already embarked on the duvan do Srba do{ao preko Turske svedo~i ~iwe- road of monopoly and levies on tobacco. As Pe~evi nica da je re~ duhan arapskog porekla i ozna~ava put it, tobacco then joined coffee, wine and opium dim, kao {to su i nazivi duvanskog pribora as “the fourth cushion on the sofa of pleasure”. It uglavnom tursko-orijentalnog porekla: ~ibuk, has remained so for quite a while and it is with rea- lula, kami{ (tanki deo lule, ~iji se slobodan son that even nowadays the phrase “smoking like a kraj drì u ustima), kesa i sli~no. Turk” is used in Serbia for a person who smokes a

ON SMOKING IN SERBIA IN THE 19TH CENTURY Milenko Stojkovi} Milenko Stojkovi}

U Srbiji XIX veka pu{ili su uglavnom sta- lot. The etymology of the Serbian word for tobacco, riji mu{karci i varo{ani. U po~etku je domi- which comes from the Arabic word duhan meaning niralo pu{ewe na lulu (~ibuk i duga bana}an- smoke, corroborates the assumption that tobacco ska lula),3 pa je tako po~etkom XIX veka Milen- reached the Serbs through Turkey, as do the names ko Stojkovi}, jedan od najve}ih vojvoda iz I srp- of tobacco accessories, which have mainly Turkish – skog ustanka, pu{io duga~ak turski ~ibuk (v. Oriental origins: chibouk, pipe, Turkish pipe (the sliku). Ta neobi~na du`ina lule, bar za dana- thin part of the pipe, whose loose end one puts in {we navike, verovatno je posledica te`we da se his mouth), tobacco pouch and the like. snizi temperatura duvanskog dima i smawi In 19th century Serbia smokers were mostly wegova qutina. older men and townsfolk. At the beginning, smok- Milo{a Obrenovi}a, vo|u II srpskog ing a pipe was predominant (the chibouk and long ustanka, ~esto opisuju sa „se|a{e kwaz Milo{ Banat pipe),3 so in the early 19th century Milenko pu{e}i na veliki ~ibuk”; ili „po ve~eri, Knez Stojkovi}, one of the greatest voivode (a top-ranking se|a{e na divanani, o~ekuju}i ~ibuk i kavu”. army officer) from the First Serbian Uprising,

O PU[EWU U SRBIJI TOKOM XIX VEKA Najuzbudqivije je bilo kada Milo{, posle pre- smoked a long Turkish chibouk (see the picture). kliwawa svoje ène Qubice i bra}e da joj po{te- That unusual length of the pipe, at least from the di ìvot posle ubistva Petrije, „po}uta malko, perspective of modern habits, probably resulted 4 odbi dva-tri dima”, pa izre~e re~i oprosta. from the endeavor to decrease the temperature of Ili, polovinom XIX veka veliki pesnik Branko tobacco smoke and reduce its sharpness. Radi~evi} je, prema se}awu pesnika Jove Ili}a, Miloš Obrenovi}, the leader of the Second Ser- kod ku}e „uvek bio… sa turskim ~ibukom od po bian Uprising, is often described in the following 5 metra u ruci”. I kraq Milan Obrenovi} je stra- manner: “there sat Prince Miloš, smoking his big sno pu{io, ali modernije cigare. chibouk”; or “after dinner, the Prince used to sit on Pu{ewe èna uglavnom se smatralo nepri- the divan, waiting for his chibouk and coffee”. The stojnim, kao i u drugim krajevima sveta. Kako most exciting bit was when Miloš, having heard his re~e, sa o~iglednim neodobravawem, jedan posla- wife Ljubica and his brothers, who had implored nik iz 1890. godine: „kod nas ne samo qudi, nego him to save her life after her murder of Petrija, 6 ~ak i ène pu{e”. No, srpski monopol radio je “kept silent for a while, blew two or three puffs” and na {irewu pu{ewa me|u ènama: postojale su then uttered the words of abolition.4 Or, in the mid- cigarete posebnog tipa wima namewene, a zvale 19th century, the great poet Branko Radi~evi} was

Lula kneza Milo{a Prince Miloš's pipe

ON SMOKING IN SERBIA IN THE 19TH CENTURY Tabakera i cigara kneza Mihaila Prince Mihailo’s cigarette case and cigar

su se turske cigarete za dame (tako je pisalo na remembered by the poet Jova Ili} as “always being… kutiji) i bile su blaè nego one za mu{karce. with a half a meter long Turkish chibouk in his Jedna kategorija èna pu{ila je u ve}em procen- hand” at his home.5 King Milan Obrenovi} was a tu, a to su bile Ciganke. Sli~no ènama, ni pu{e- passionate smoker, too, but he smoked more mod- we mladih nije gledano sa odobravawem, po{to se ern cigars. verovalo da pu{ewe ometa wihov razvoj. Like in other parts of the world, smoking by Ali, uìvawe u duvanu se postepeno {irilo women was generally considered improper. As put tokom vremena, kao {to se {irilo i pu{ewe ciga- by a deputy in 1890, showing obvious disapproval: reta koje su qudi sami zavijali. Sredinom XIX “in our country, not only men, but also women veka‚ navodi jedan posmatra~, „kod nas se u velike smoke”.6 However, the Serbian monopoly was duvan svuda odoma}io… Kud se god makne{ svuda working on the spreading of smoking among se dimi: u sobama privatnih qudi (sa vrlo retkim women; there were cigarettes of a special kind odli~nim izuzetkom), po javnim lokalima, ~itao- intended particularly for them, and they were called nicama, kasinima, sastancima politi~kim, po Turkish cigarettes for ladies (that was written on kontorama i zvani~nim birovima, po kupejima the pack) and they were milder than those for men. omnibuskim i èlezni~kim. Kod nas po~iwu i There was a category of women among whom the

O PU[EWU U SRBIJI TOKOM XIX VEKA dame emancipovati se, pa se ve} nahode gospe, koje prevalence of smoking was higher, and those were se nazivaju otmenima, da pu{e kao Tur~in”. Autor Gipsy women. As in the case of women, smoking by 7 teksta u Danici, ina~e otvoreni protivnik pu- youth met with disapproval because it was believed {ewa i po tome me|u prvim Srbima, nezadovoqan that smoking was stunting their development. je takvim stawem i tvrdi da „najstra{nije u pu{e- Nonetheless, the smoking of tobacco was gradu- wu to je da su skoro svi nau~ili se na duvan jo{ u ally catching on over time, just as the smoking of cig- {mokqanskim i klipanskim godinama, pa posle arettes spread, which people were rolling by them- ne mogu da se odu~e, no naprotiv gledaju kako }e selves. In the mid-19th century, as noted by an sve ja~im i ja~im duvanom i cigarama sebe dra`i- observer, “in our country, tobacco is very common ti”. Navodi dva razloga protiv duvana: prvi, da everywhere… Wherever you go, smoke is everywhere:

Na beogradskoj ulici In a Belgrade Street

ON SMOKING IN SERBIA IN THE 19TH CENTURY Po`arevqanin (Nikola Arsenovi}) An inhabitant of Po`arevac (Nikola Arsenovi})

in rooms of private people (with very rare excellent exceptions), in public places, reading rooms, casinos, political meetings, in halls and official bureaus, in compartments on omnibuses and trains. Ladies are becoming emancipated in our country, too, so some of them, who call themselves noble, already see it fit to smoke like a Turk”. The author of a text in Dani- ca,7 known as a strong opponent of smoking and in that respect one of the first among the Serbs, was dissatisfied with such a situation and claimed that: “the most horrible thing about smoking is that almost all became addicted to tobacco when they were still green, in their salad days, and they could not quit later in life; on the contrary, they start looking for ever stronger tobacco and cigars to stimulate themselves”. He cited two arguments against tobacco: the first one was that the smoker and his clothes reeked of tobacco; and the second, more important one, was that nicotine is toxic and therefore harmful to man. He referred to “many renowned physicians who attrib- ute various diseases to the abuse of tobacco, such as: dizziness, grand mal, cramps, insomnia, dull stomach pains, fits, general weakness of nerves, flickering of eyelashes, blindness, deafness, various inflamma- tions, etc”. But, as he said, all the “evidence of the harmfulness of smoking” and “said consequences of the use of tobacco” and “all warnings and evidence did not help at all” and “every charge is usually ward- ed off by the words: it is sweet and pleasant, so even if it were a poison, it would do us no harm because we are used to it”. The forecast is very pessimistic:

O PU[EWU U SRBIJI TOKOM XIX VEKA pu{a~ i wegovo odelo jako zaudaraju; i drugi i va- “But all these facts and arguments will not bring the `niji, da je nikotin otrov i stoga {kodqiv za tobacco users to their senses or rid them of their itch ~oveka. Poziva se na „puno slavnih lekara koji and passion. They got used to it, and now they cannot pripisuju preteranom upotrebqavawu duvana or will not cure themselves of this habit”. mnoge bolesti, kao: nesvesticu, veliku bolest, gr- But there were still many people who believed ~eve, nespavawe, ti{tawe u èlucu, nastupe, ob- in the healing powers of tobacco. Ever since its {tu slabost u ìvcima, igrawe trepavica, slepo- appearance, medical and less medical stories and }u, gluvo}u, razli~ita zapaqewa itd”. Ali, kako allegations were spread throughout Europe that it re~e, svi „dokazi o {kodqivosti pu{ewa” i „à- was very useful as a medicine and that it cured losne posledice od upotrebqavawa duvana” i „sve various diseases. Thus, in the second half of the opomene i dokazi ni{ta ne pomogo{e”, a „obi~no 19th century in Serbia, the chief authority for the se svaki juri{ odbija time: slatko je i prija, pa i issues of tobacco processing, Kosta Crnogorac, da je otrov ne}e nam {koditi, jer smo se na wega believed that tobacco could mitigate the effects of navikli”. Prognoza je vrlo pesimisti~ka: „Ali rheumatism, headache, toothache, as well as eye sva ova fakta i razlozi ne}e duvan~ije usavetova- and ear pains.8 ti i }ef im i strast ukloniti. Nau~ili su se, pa Also in villages, where a vast majority of people ne mogu ili ne}e da se odu~avaju”. lived, smoking was gradually gaining ground. Just as Ali, bilo je i daqe puno onih koji su verova- the townsfolk emulated the Turks, the peasants li u lekovitost duvana. Naime, jo{ od wegove emulated the inhabitants of towns and were gradu- pojave, u Evropi su se {irile stru~ne i mawe ally accepting tobacco as their enjoyment. The fact stru~ne pri~e i tvrdwe da je vrlo koristan u that tobacco was easily accessible in the rural areas, zdravstvenom smislu i da le~i brojne bolesti. at least in some villages, because it was grown there, Tako je i u drugoj polovini XIX veka u Srbiji also had a certain influence. “Peasants in our coun- glavni autoritet za pitawa tehnologije duvana try smoke, and quite a lot at that”, wrote big tobacco Kosta Crnogorac verovao da se duvanom mogu merchant Stojan Todorovi} in 1884.9 ublaìti reumatizam, glavoboqa, zuboboqa i Smoking by farmers was a provocation to the 8 bolovi o~iju i u{iju. spiritual fathers of the nation, who were never in I po selima, gde je velika ve}ina naroda short supply: thus, in 1881 deputy Veljko Jakovil- ìvela, pu{ewe se postepeno {irilo. Kao {to jevi} claimed in the Assembly “that smoking su se varo{ani ugledali na Turke, tako su se tobacco was a very luxurious thing for a farmer, seqaci ugledali na varo{ane i postepeno pri- and a sad one as well, when he had no money to hvatali uìvawe u duvanu. A i ~iwenica da je buy salt, and yet wanted to buy and smoke tobac- duvan lako dostupan na selu, bar u nekima od co”.10 And he supported a proposal for the taxa- wih, jer se tu i proizvodi, imala je svoga utica- tion of tobacco. ja. „Seqak na{ pu{i, i to prili~no mlogo”, Tobacco was usually named after the area from pisao je veliki duvanski trgovac Stojan Todo- which it originated: Poàrevac tobacco, Jagodina 9 rovi} 1884. godine. tobacco, etc. The most highly appreciated was Baji- Pu{ewe seqaka izazivalo je du{ebri`ni- novac tobacco (from the villages around Bajina ke, kojih nikada nije nedostajalo: tako je posla- Bašta), followed by Aleksinac tobacco. In terms of nik Veqko Jakovqevi} 1881. godine tvrdio u tobacco kinds, two Turkish varieties, Boš~a and

ON SMOKING IN SERBIA IN THE 19TH CENTURY Skup{tini „da je pu{ewe duvana za seqaka vrlo Prose~a, were consumed the most. It seems that luksuzna stvar i àlosna kad on nema za {ta soli Prokuplje tobacco was the worst.* 10 da kupi, a ho}e da kupuje i pu{i duvan”. I po- How many people smoked in 19th century Serbia? drào je predlog za oporezivawe duvana. Of course, nobody can say exactly, because no reliable Duvan se obi~no nazivao po kraju iz koga surveys were taken in those days. We are left, there- poti~e: poàreva~ki, jagodinski itd. Najcewe- fore, with estimates, more or less serious. We shall niji je bio bajinovac (iz sela oko Bajine Ba{te), mention here one estimate made back then: when a zatim aleksina~ki. Po vrstama gledano, naj- Liberal deputies proposed the lifting of the tobacco vi{e su se tro{ili bo{~a i prose~a, dve vrste monopoly in 1889, their intention was to compensate turskog duvana. Izgleda da je prokupa~ki duvan for the monopoly proceeds by levying a fee on smok- bio najgori.* ers, so they came up with an estimate that there were Koliko je qudi u Srbiji XIX veka pu{ilo? 280,000 of them in Serbia (see later). If we assume Naravno, to niko ta~no ne zna, jer nisu ra|ena that no children under 18 years of age or women con- solidna anketna istraìvawa. Ostaju procene, sumed tobacco, and that was basically the actual situ- mawe ili vi{e ozbiqne. Ovde }emo pomenuti ation, and knowing the demographic profile of the jednu onda{wu: kada su liberalni poslanici population of that time, we arrive at an estimate that, predloìli ukidawe monopola duvana 1889. go- as the Liberals believed, every one in two adult men dine, naumili su da prihod od monopola zamene smoked, including the oldest ones. Compared to other taksom na pu{a~e, pa su procenili da ih u Srbi- countries, it was a fairly high percentage. ji ima 280 hiqada (videti kasnije). Ukoliko And what was the consumption of an average pretpostavimo da duvan nisu tro{ila deca do 18 smoker? That question, too, can be answered with rel- godina i ène, a tako je uglavnom bilo, i znaju}i ative certainty. In 1893, total tobacco consumption in demografski profil populacije toga vremena, Serbia was 851,000 kilograms,11 which is 394 grams dobijamo procenu da je tada, po uverewu libera- in per capita terms or 3,041 grams per smoker, if we la, pu{io svaki drugi odrastao mu{karac, ukqu- proceed from the Liberals’ estimate mentioned above ~uju}i i one najstarije. To je, komparativno po- on the number of smokers. In order to obtain a clear- smatrano, prili~no visok procenat. er picture of how much 3,041 grams of tobacco a year A koliko je prose~an pu{a~ pu{io? I na to really is, we can translate that tobacco in short one- pitawe se moè dati relativno pouzdan odgo- gram cigarettes, which were smoked back then, which vor. Ukupna potro{wa duvana u Srbiji bila je means that our average smoker consumed 8.3 ciga- 11 1893. godine 851 hiqadu kilograma, {to daje rettes a day. It is not much, even if we slightly 394 grama po stanovniku ili 3.041 grama po increase this quantity to adjust for the tobacco which jednom pu{a~u, ukoliko po|emo od pomenute was escaping the eye of the monopoly-related statis- liberalske procene o broju pu{a~a. Da bi nam tics. As a matter of fact, in Serbia, as in the rest of the bilo jasnije koliko je to 3.041 grama duvana world, smoking was moderate until the beginning of

* Pouka kako se proizvodi duvan, Ekonomno ode- * Instructions on How to Produce Tobacco, Economic qewe Ministarstva finansija, 1865, str. 4; Department, Ministry of Finance, 1865, p. 4; for zbog toga je ovaj okrug ispao iz kruga za sa|ewe that reason this district was left out of the circle duvana po monopolskom zakonu iz 1890. godine, for the planting of tobacco under the monopoly SBNS za 1889, str. 2586 law of 1890, SBNS for the year 1889, p. 2586

O PU[EWU U SRBIJI TOKOM XIX VEKA godi{we, moèmo taj duvan pretvoriti u kratke the 20th century. It was only then that it started to cigarete od jednog grama, kakve su se tada rapidly spread and the quantity of tobacco, or ciga- pu{ile, {to zna~i da je na{ prose~an pu{a~ rettes, per smoker, started to climb. The reason for tro{io 8,3 cigareta na dan. To nije mnogo, ~ak i that was the emergence of efficient matches, which ukoliko unekoliko pove}amo ovaj iznos za duvan made lighting safer and easer, as well as of high- koji je izmicao oku monopolske statistike. U capacity industrial machines for making cigarettes, stvari, u Srbiji je, kao i u celom svetu, pu{ewe which brought about a drop in their prices, and of do po~etka XX veka bilo umereno. Tek tada ono advertising campaigns, which influenced the wishes brzo raste i pove}ava se koli~ina duvana, odno- and habits of people, men and women alike. sno cigareta po jednom pu{a~u. Uzroci tome su Let us look at regional differences in tobacco pojava efikasne {ibice, koja ~ini paqewe consumption. In the same year, 1893, Belgrade was bezbednijim i lak{im, industrijskih ma{ina far ahead, with 1,889 grams per inhabitant on an velikog kapaciteta za proizvodwu cigareta, annual basis. It was followed by a group of northern koje su donele wihovo pojeftiwewe, i reklam- districts: Valjevo 536, the Danube Basin (Smederevo) nih kampawa, koje su uticale na èqe i navike 534, the Drina Valley 501 and Poàrevac 482. South- qudi, kako mu{karaca, tako i èna. eastern districts, those which managed to escape Pogledajmo regionalne razlike u potro{wi Turkish embrace only recently, were lagging behind duvana. U istoj, 1893. godini daleko je pred- in terms of tobacco consumption, which is a bit sur- wa~io Beograd, sa 1889 grama po stanovniku prising. Consumption was quite low in two main godi{we. Za wim sledi grupa severnih okruga: tobacco growing/producing districts – Kruševac Vaqevski 536, Podunavski (Smederevo) 534, Pod- (including Aleksinac) 232 grams and Vranje 212 riwski 501 i Poàreva~ki 482. Jugoisto~ni grams. Since the data we provide here originate from okruzi, oni koji su tek skoro, 1878. godine, izbe- the Monopoly Directorate, in all probability these dis- gli iz turskog zagrqaja, vidimo da zaostaju po tricts had considerable informal consumption, of a potro{wi duvana, {to je pomalo neo~ekivano. personal and family type, which dodged the govern- Zatim, potro{wa je dosta niska u dva okruga sa ment coffers and circumvented the monopoly. daleko najve}om proizvodwom duvana – u Kru{e- And what was an average smoker consuming? va~kom (sa Aleksincem) 232 grama i Vrawskom Data on the monopoly sales of 1893 give a partial 212 grama. Budu}i da su podaci koje navodimo answer: 93.3 percent was cut tobacco, cigars poreklom iz Uprave monopola, bi}e da je u ovim accounted for 3.5 percent, cigarettes for 2.8 percent okruzima bila prili~na nezvani~na potro{wa, and snuff for 0.2 percent. The domination of cut ona li~na i porodi~na koja je zaobilazila dr- tobacco over cigars and cigarettes is huge, which àvnu blagajnu i monopol. means that an average Serbian smoker, in his wish to A {ta je prose~an pu{a~ tro{io? Podaci o save money, avoided finer finished goods,* and used prodaji monopola iz 1893. godine daju nam deli- ordinary tobacco instead, to roll it into cigarettes by mi~an odgovor: 93,3% je bio rezani duvan, 3,5% himself or to put it into a pipe. Unfortunately, there cigare, 2,8% cigarete i 0,2% burmut. Domina- cija kriànog duvana nad cigarama i cigaretama je ogromna, {to zna~i da je prose~an srpski * For instance, the price of a kilogram of Serbian tobacco of the finest quality was 14 dinars in 1887, pu{a~ izbegavao, {tedwe radi, finije finalne and of the cigarettes of the same quality 25 dinars.

ON SMOKING IN SERBIA IN THE 19TH CENTURY proizvode,* ve} je uzimao obi~an duvan i sam ga are no accurate data on the ratio between pipes and ili motao u cigarete ili stavqao u lulu. O pro- personally rolled cigarettes, but some rough esti- porciji lule i li~no zavijenih cigareta na à- mates do exist: the share of the 4th category tobacco lost nemamo ta~nih podataka, ali pribli`ni in total consumption was 15.6 percent, and that postoje: u~e{}e duvana IV kategorije u ukupnoj tobacco could be used only in pipes, since it was of potro{wi bilo je 15,6%, a taj duvan je bio upo- the poorest quality and cut in bigger pieces.12 Finer trebqiv jedino za lulu, po{to je bio najlo{iji i kinds of tobacco could be used for pipes as well, but 12 krupno se~en. I finiji duvani su se mogli ko- was done to a lower extent. ristiti za lulu, ali je to ~iweno u mawoj meri. It is interesting to take a look at the results of an Interesantno je pogledati rezultate analize analysis of consumption by rural and urban popula- potro{we seoskog i varo{kog stanovni{tva. tions. Of course, no official data of this type are avail- Svakako, zvani~nim podacima ove vrste ne ras- able, so the replacement was found in regression polaèmo, pa smo zamenu na{li u regresionoj analysis. Namely, we were looking for a link between analizi. Naime, potraìli smo vezu izme|u the number of inhabitants in urban and rural areas brojnosti varo{kog i seoskog stanovni{tva u in all the districts and the tobacco consumption in svim okruzima sa potro{wom duvana u wima i them, and arrived at the following finding: with each dobili slede}i nalaz: sa jednim dodatnim varo- incremental town inhabitant in the district the tobac- {kim stanovnikom u okrugu potro{wa duvana ra- co consumption went up by 1,593 grams a year, while ste za 1593 grama godi{we, a sa jednim seoskim with each incremental villager, it increased by 294 za 294 grama.** Dakle, najve}i pu{a~i su varo{a- grams.* Hence, the biggest smokers were inhabitants ni, dok seqaci znatno mawe pu{e. of towns, while farmers smoked considerably less. Tokom XIX veka, do po~etka XX, pu{ewe se In the course of the 19th century, until the jo{ pro{irilo, pa u vi{im, gradskim krugovima beginning of the 20th century, smoking spread fur- ve} pu{e i mnoge ène i mladi, dok su nepu{a~i ther, so in higher, urban circles many women me|u odraslim mu{karcima „zaista retki”. Tada already smoked, as well as young people, while non- su ve} uvo|ene zvani~ne zabrane pu{ewa za smokers among adult males were “truly rare”. {kolsku omladinu, pa i u nekim dràvnim Already back then official bans on smoking were nadle{tvima, ali bez èqenih efekata. Poli- introduced for students, and even on some govern- cijskom naredbom iz 1892. godine zabraweno je i ment premises, but they failed to achieve the intend- 13 pu{ewe u beogradskim tramvajima. ed effect. By virtue of a police decree of 1892 smok- Srbi su pu{ili lo{ duvan – to su uglavnom ing was banned on Belgrade tramcars as well.13 bile najslabije klase na trì{tu. Tako je u 1893. Serbs smoked poor quality tobacco – as a rule, godini u~e{}e srpskog duvana III kategorije, od those were the lowest classes on the market. Thus, in koga su se motale najslabije cigarete, i IV kate- 1893, the share of Serbian tobacco of the 3rd catego- gorije, jo{ lo{ijeg po{to je bio samo za lulu, ry, which was used for rolling the weakest cigarettes, and of the 4th category, even poorer in quality since * Na primer, kilogram srpskog duvana najboqeg it was only for pipes, reached as much as 80.6 of total kvaliteta ko{tao je 1887. godine 14 dinara, a cigareta istog kvaliteta 25 dinara. ** R2 je 0,51; t statistika je 4,18 i 3,93, *R2 is 0.51; t statistics are 4.18 and 3.93, respektivno. respectively.

O PU[EWU U SRBIJI TOKOM XIX VEKA Devojka iz Ni{a (Vladislav Titelbah) A girl from Niš (Vladislav Titelbah) dostizalo ~ak 80,6% celokupne potro{we duvana tobacco consumption in Serbia.14 Those better class- 14 u Srbiji. One boqe i srpske i turske klase dues of both Serbian and Turkish tobacco and ciga- vana i cigareta tro{ene su u malim koli~inama. rettes were consumed in small quantities. Duvan se obi~no prodavao u posebnim duvan- Tobacco was usually sold in specialized tobacco xijskim radwama, a samo ponekad u bakalnicama, shops, and just sometimes in groceries, together with sa drugom robom. Duvanxije su, pored duvana, other goods. Besides tobacco, tobacconists were selling prodavale i cigaret papir, lule, mu{tikle, cigarette paper, pipes, cigarette holders, tobacco boxes kutije ili kese za duvan, kresiva, {ibice i drugi or pouches, tinderboxes, matches and other smoking pu{a~ki pribor. Duvanski proizvodi prodavali accessories. Tobacco products were also sold at fairs, su se i na va{arima: tako i na pirotskom pana|u- including the Pirot fair, where merchants from D`uma ru, gde su ih jo{ pre pripajawa Srbiji donosili and Seres (Sérrai), important tobacco growing regions trgovci iz Xume i Sereza, va`nih duvanskih of the European part of Turkey, were bringing them 15 krajeva evropske Turske. even before Pirot became part of Serbia.15 Pogledajmo pone{to od duvanskog pribora Let us take a look at some of the tobacco acces- 16 {to je kori{}eno tokom XIX veka. sories used in the 19th century.16

Kesa za duvan A tobacco pouch

O PU[EWU U SRBIJI TOKOM XIX VEKA 1 1. ^ibuk 1. Chibouk 2. Muštikla 2. A cigarette holder 3. Kresivo 3. Flint and steel 4. Kutija za duvan 4. A tobacco box 5. @enska mašica za cigarete 5. Women's cigarette tongs 6. Kesa za kresivo 6. A flint and steel pouch

Nargile A nargileh (a water pipe)

6 Lula A pipe Uzgajawe i prerada duvana do pojave monopola

GROWING AND PROCESSING OF TOBACCO BEFORE MONOPOLY

okom ve}eg dela XIX veka proizvodwa duvana or most of the 19th century, tobacco production Tje u Srbiji bila slobodna i neoporezovana. Fin Serbia was free and untaxed. Anybody could Svako je mogao da sadi duvan i da ga prera|uje i plant tobacco, and process and sell it, without any prodaje, a bez ikakvih formalnih uslova, dozvo- formal preconditions, licenses or tobacco duties. la i duvanskih taksi. The freedom of entrepreneurship resulted in Sloboda preduzetni{tva u~inila je da je, the existence of around one thousand mortar men prema procenama, po~etkom 1880-tih godina u (avandìje), i.e. craftsmen engaged in the processing Srbiji bilo oko hiqadu avanxija, odnosno zana- of and retail trade in tobacco in Serbia in the early tlija koji prera|uju i prodaju duvan na malo. U 1880s, according to estimates. Their number in Kru{evcu ih je tada bilo 28. U 1836. u Poàrev- Kruševac was 28 at that time. In 1836, three per- cu se duvanxijskim zanatom bavilo wih troje, a sons were engaged in the tobacco craft in Poàrevac, 1862. sedam. Avanxijskim/duvanxijskim zanatom and seven in 1862. In the first part of the 19th cen- bavili su se u prvom delu XIX veka uglavnom tury, mortar men/tobacconists were mostly Turks, Turci, Jermeni i Grci, kao dominantno varo{ko Armenians and Greeks, as the predominant urban stanovni{tvo. Srbi su se postepeno ukqu~ivali population. Serbs were gradually getting into the u posao, da bi ga prakti~no u potpunosti preuze- business, only to take it over, practically completely, 17 li tek po sticawu nezavisnosti 1878. godine. as late as after gaining independence in 1878.17 U Srbiji su postojali dobri uslovi za gajewe Conditions for growing tobacco in Serbia were duvana, po{to on traì pobrdne terene, kre~- good, since it likes hilly terrains, calcareous-sandy wa~ko-peskovitu zemqu i ne previ{e vlage. I soil and not too much humidity. And many hands, dosta ruku, tj. pogodan je za vi{e~lane porodice that is, it is suitable for large families whom it keeps kojima obezbe|uje posla preko najve}eg dela busy over the largest portion of the year. As a labor- godine. Kao radnointenzivna biqka, bio je pogo- intensive crop, it was suitable for those regions in dan za one krajeve Srbije u kojima se ve} javqala Serbia where agricultural overpopulation, meaning agrarna prenaseqenost, odnosno sve vi{e qudi growing numbers of people on the given land, was na datoj zemqi. already setting in. U Srbiji su tokom ovog dela XIX veka In the course of this part of the 19th century, uglavnom gajene dve vrste duvana: krupni krxan two kinds of tobacco were predominantly grown in

25 (Nicotina rustica, var. cordata) i, u znatno mawoj Serbia: wild tobacco (Nicotina rustica, var. cordata) meri, bajinovac, duvan gajen u okolini Bajine Ba- and, to a much lesser degree, Bajinovac, a kind of {te. Oba su bila turskog porekla, tj. rasa|eni su tobacco grown in the vicinity of Bajina Bašta. They od turskih rumelijskih duvana. Virxinijski i were both of Turkish origin, that is, they were plant- merilendski duvani nisu gajeni, ~ak ni za me{a- ed out from Turkish Rumelian tobacc os. Virginia vine, po{to su pu{a~i u Srbija uglavnom bili and Maryland tobaccos were not grown, not even for naviknuti na orijentalne, turske duvane. blends, because smokers in Serbia were used mostly Stabqika krxana raste do 1 m u visinu, a raz- to oriental, Turkish tobaccos. grawava se od same zemqe. Li{}e krupnog krxana The stem of wild tobacco can grow up to a je srcastog oblika i debelo. Cvet je kratak i zao- height of 1 m and it branches out from the very bqen, a boje zelenkasto-ùte. Zbog krupnog i ground. The leaves of wild tobacco are heart- debelog li{}a ovaj krxan je vrlo otporan na shaped and thick. The flower is short and rounded, hladno}u i stoga moè da se uspe{no sadi na and its color is greenish-yellow. Its big and thick peskovitom zemqi{tu. Najboqe se sadi u redo- leaves make wild tobacco very resistant to the cold vima, kako bi kasnije mogao lak{e da se okopava and therefore it can successfully be grown on sandy i razgr}e. Pored Srbije, ova je vrsta duvana soil. It is best to plant it in rows, to make it easer to masovno sa|ena u Ma|arskoj i Rumuniji.18 earth and dig it up later on. Besides Serbia, this U Srbiji je polovinom XIX veka na posebnoj species of tobacco was mass-planted in Hungary ceni bio bajinovac, kao duvan prijatnog mirisa i and Romania as well.18 arome, koji se proizvodio na ograni~enom Around the middle of the 19th century, Bajinovac podru~ju, u selima oko Bajine Ba{te (Vi{esava, was particularly sought-after in Serbia, as a kind of Obajgora itd). Ali, wegova proizvodwa je tokom tobacco which has a pleasant smell and aroma, and vremena – jo{ pre 1880. godine – smawena. Sli~- which was produced in a limited area, in the villages no se dogodilo i sa ~a~anskim kurilovcem. Ina~e, around Bajina Bašta (Višesava, Obajgora, etc.). But stabqika bajinovca je maqava i dostiè visinu its production was reduced over time – with the od 1,4 metra, a cvetni pupoqak ima oblika jajeta decline starting even before 1880. A similar thing senice. Cvet je prvo bledo qubi~ast, a beli~ast happened also to the tobacco from â~ak called kada se potpuno razvije. Zemqi{te na kome baji- Kurilovac. The stem of Bajinovac is hairy and can novac najboqe uspeva je peskovito i {qunkovito reach a height of 1.4 meters, while its flower bud has i ne |ubri se. Boja prevrelog bajinovca je otvore- the shape of a titmouse egg. The flower is first lilac, no crvena, a katkada crvenkasto-ùta.* and off-white when fully developed. The soil on Oko polovine XIX veka duvan je u Srbiji which Bajinovac is most successfully grown is sandy gajen u gotovo svim okruzima „po malo”, a „u ve}oj and gravelly and no fertilizers are used on it. The koli~ini” u ~a~anskom (kraqeva~ki kraj), kru- color of fermented Bajinovac is light red, and some- {eva~kom, uì~kom i podrinskom okugu.19 times reddish-yellow.*

* Rasad bajinovca prenet je u Osat u isto~noj * Seedlings of Bajinovac were brought to Osat in Bosni jo{ polovinom XIX veka i prodavao se eastern Bosnia as early as the mid-19th century kao bajinovac, a kasnije na austrijskom tr`i{tu and it was sold as Bajinovac, and later, on the kao Sultanov cvet (Sultan fleur), prema K. Crno- Austrian market, as the Sultan’s Flower (Sultan gorac, isto, str. 79 fleur), according to K. Crnogorac, ibid, p. 79

UZGAJAWE I PRERADA DUVANA DO POJAVE MONOPOLA Su{ewe duvana Tobacco curing

Jedan od va`nih doga|aja u istoriji gajewa Around the middle of the 19th century, tobacco duvana u Srbiji je nagli napredak proizvodwe u was grown in Serbia in nearly all the districts “on a aleksina~kom okrugu. Polovinom XIX veka duvan small scale”, and in the districts of â~ak (around u tom kraju uop{te nije sa|en, a prvi podsticaji Kraljevo), Kruševac, Uìce and the Drina Valley “in do{li su od dràve u 1851. godini tako {to je larger quantities”.19 seqacima deqeno seme turskog duvana bo{~e. One of the important events in the history of Dràva je na taj na~in poku{avala da u Srbiji tobacco growing in Serbia was a sudden leap in pro- podstakne produkciju jedne kulture koja se odli- duction in the district of Aleksinac. In the mid-19th kuje radno intenzivnom proizvodwom i da, tako, century, tobacco in that region had not been plant- doprinese pove}awu dohotka seqaka. Kod pojedi- ed at all, and the first incentives came from the gov- naca je poku{aj uspevao, ali su rezultati, op{te ernment in 1851, through free distribution of the gledano, u prvo vreme bili skromni. U izve- seed of a Turkish tobacco variety called Boš~a to {tajima iz na~elstva iz 1863. i 1864. godine farmers. In this manner, the government was trying kaè se da u narodu „nema obi~aja da se duvan seje to boost the production of a crop in Serbia, which is i obdelava”, da se „u selima slabo seje” jer „qudi labor-intensive, and thus contributes to higher ne umedu oko wega da rade”. Ipak, prime}uje se da income-generation by farmers. At an individual

GROWING AND PROCESSING OF TOBACCO BEFORE MONOPOLY Se~ewe duvana Tobacco cutting se u samoj varo{i Aleksinac duvan sve vi{e level, the attempt was successful, but on a broader 20 gaji. U relativno kratkom roku, aleksin~ani su scale, the initial results were modest. The reports se izve{tili u poslu i wihov kraj je preuzeo vo|- from the district councils in 1863 and 1864 say that stvo u proizvodwi duvana u Srbiji po kvantitetu, “it was not customary among country folk here to ali je i po kvalitetu bio me|u prvima. Sli~nog plant and cultivate tobacco”, that “it is not much kvaliteta aleksina~kom bio je leskova~ki duvan, sown in the villages” because “people do not know a ne{to qu}i kru{eva~ki. Karanova~ki, ma~van- how to handle it”. Still, there were observations to ski i dowomilanova~ki duvani bili su jo{ the effect that in the town of Aleksinac itself tobac- qu}i, a podse}ali su na seqa~ke ma|arske ili co was increasingly grown.20 In a relatively short rumunske duvane. period, the inhabitants of Aleksinac became skillful Prema popisu zemqi{ta iz 1867. godine, in this job and their region took the lead in tobacco duvanom je bilo zasa|eno 1803 hektara, a predvo- production in Serbia in terms of quantities, while dili su Aleksina~ki okrug (284 ha), Podriwski being in the top group with respect to quality as (207 ha), Kragujeva~ki (186 ha) i Poàreva~ki well. The tobacco from Leskovac was of similar 21 (178 ha). I u ostalim okruzima je sa|en duvan, quality to the Aleksinac tobacco, while the Kruševac mada u mawem ili malom obimu. tobacco was a bit sharper. The Karanovac, Ma~va Ipak, duvan je u Srbiji bio slabijeg kvalite- and Donji Milanovac tobacco varieties were even ta u pore|ewu sa turskim i sli~nim duvanima. sharper, and they reminded one of Hungarian or Verovatno je u pravu bilo Ekonomno odeqewe Romanian farm-style tobaccos. Ministarstva finansija kada je 1865. godine According to the 1867 land census, 1803 hectares ocenilo da srpski duvan nije posebno dobar i da were planted with tobacco, with the leading districts se „neve{tinom proizvo|a~a, a naravno i utica- being Aleksinac (284 ha), the Drina Valley (207 ha), jem drugog podnebqa, gube ona boqa svojstva Kragujevac (186 ha) and Poàrevac (178 ha).21 Tobac- pravog turskog duvana”. I zatim daje savete kako co was grown in other districts as well, though on a da se dobije duvan „boqeg svojstva” „kada se bude smaller, or small, scale. boqe negovao”. Da je doma}i duvan bio slabijeg Yet, tobacco in Serbia was of a poorer quality kvaliteta svedo~e i cene duvana u izvozu i uvozu: in comparison with Turkish and similar tobaccos. u petogodi{wem periodu 1865/66–1869/70 pro- The Economic Department of the Ministry of se~na cena jednog kilograma izvezenog duvana Finance was probably right when in 1865 they bila je 1,7 dinara, a uvezenog duvana 4,5 dinara, assessed that Serbian tobacco was not particularly 22 gotovo tri puta skupqe. Zna~i, slabiji duvan good and that due to “lack of skills on the part of bio je doma}i, a boqi uvozni. I tokom slede}ih the producers and, of course, the influence of a decenija relacije su ostale iste: turski duvan se different climate, those better properties of gen- smatrao boqim, a srpski lo{ijim, pa su i nabav- uine Turkish tobacco were lost”. And then it gave ne i prodajne cene bile vi{e za turski i niè advice on how to obtain tobacco of “better quality” za srpski. “once it is better nurtured”. The export and import Kasnije, pod dràvnim monopolom, razvila se prices of tobacco also testified to the fact that proizvodwa duvana u vrawskom kraju, ~iji je duvan domestic tobacco was poorer in quality: in a five- tada bio cewen kao najboqi u Srbiji. Zvan je Mo- year period, from 1865/66–1869/70, the average rava. Jo{ kasnije, na prelasku iz XIX u XX vek, price of one kilogram of exported tobacco was 1.7

GROWING AND PROCESSING OF TOBACCO BEFORE MONOPOLY pove}an je uzgoj i u ni{kom kraju, sa duvanom koji dinars, and of the imported one 4.5 dinars, that is, je po poreklu i kvalitetu bio srodan vrawskom.* almost three times higher.22 Hence, poorer quality Seqaci su, naj~e{}e, samo sadili i zatim tobacco was domestic, and the better one was su{ili duvan, a tek poneki su ga i fermentisa- imported. In the course of the subsequent decades, li. Onda su duvan pakovali (ukalupqivali) u too, the relations remained the same: Turkish dewke i prodavali majstorima avanxijama (du- tobacco was considered to be better, and the Ser- vanxijama), koji su ga u prodavnici ili posebnoj bian one worse, hence the purchase and selling radionici fermentisali, sortirali, rezali i prices were higher for Turkish and lower for Ser- prodavali. Avanxije su ime dobili po avanu, bian tobacco. napravi pomo}u koje je rezan duvan, a ~iji je dru- Later on, under the government monopoly, gi naziv bio taba~ar. Drugi alati bili su noè- tobacco production was developed in the region of vi, re{eto, belegija za o{trewe noèva i tocilo. Vranje, whose tobacco was appreciated at that time Ovaj avan nije sluìo za tucawe, ve} za rezawe i as the best in Serbia. It was called Morava. Still imao je druga~iju konstrukciju od obi~nog avana. later, around the turn of the 20th century, produc- On je predstavqao izdubqeni trupac obloèn tion was increased in the region of Niš as well, koòm (v. sliku). Na predwoj strani u~vr{}en je which was similar to the tobacco from Vranje in ori- no`. Zadwi deo avana zvao se kolewak, jer je tu gin and quality.* duvanxijski radnik pri radu drào koleno. In most cases, farmers were just planting and Sredwi deo avana zvao se kalupxik, jer su se u then drying tobacco, and only some fermented it as wega stavqali kalupi ({tosovi) duvana, a pred- well. Then they packed (molded) tobacco in bales wi ~elo. Radilo se tako {to se kalup duvanskog and sold it to craftsmen mortar men (tobacconists), li{}a stavi u kalupxik i „levom rukom se to who fermented it in their shops or separate work- li{}e pritiska i polako gura udesno prema shops, and then sorted, cut and sold it. Mortar men otvoru avana, a desnom rukom reè se pokretnim were named after the mortar, a special bowl in noèm, koji je suprotnim krajem od ru~ice which tobacco was cut, and whose other name was privezan za sam otvor avana”. U jednoj avanxij- crusher (taba~ar). Other tools included knives, skoj radwi obi~no je bilo vi{e ovakvih avana. sieves, whetstone for sharpening knives and a grind- Pomo}u wih je duvan tako dobro rezan da se ni po ing wheel. This mortar was not used for crushing, ~emu nije razlikovao od kasnijih ma{inski pre- but for cutting and was constructed differently ra|enih duvana. Momci koji su rezali duvan uz from an ordinary mortar. It was a hollowed log pomo} avana zvali su se reza~i. Jedan dobar rad- lined with leather (see the picture). A knife was nik mogao je da za jedan dan iskrià od deset do fixed at its front. The rear part of the mortar was dvadeset kilograma duvana, bez sortirawa, i da called knee-holder (kolenjak), because that was the 23 zaradi 20 para od kilograma. place where the tobacco assistant held his knee

* Pri razmatrawu lokacije proizvodwe treba ima- * In considering production locations, one should ti na umu promene granica okruga tokom vreme- bear in mind the changes in district boundaries na: tako je duvanski deo aleksina~kog prvo pri- over time: thus the tobacco part of the Aleksinac pao kru{eva~kom, a potom ni{kom okrugu, pa je district first belonged to the Kruševac and then to proizvodwa u ova dva okruga naizgled pove}ana. the Niš district, therefore the production in these two districts seemingly increased.

UZGAJAWE I PRERADA DUVANA DO POJAVE MONOPOLA Avan za se~ewe duvana A mortar for cutting tobacco

Pri sortirawu odvajani su ùti listovi od while working. The middle part of the mortar was crvenih. Od ùtih listova kriàn je boqi du- called mould (kalupdìk), because that was the van, a od crvenih gori. Crni su listovi bacani. place where moulds (stacks) of tobacco were put, Mnoge duvanxije su i same uzgajali duvan, pa and the front part was called forehead (~elo). The su ga sadile, brale, fermentisale, su{ile, sor- work was performed in the following manner: a tirale, kalupile i kriàle, a zatim prodavale. stack of tobacco leaves was put in the mould, »the Duvanxije su pravile i burmut, a od najsit- leaves were pressed with the left hand and slowly nijeg i najqu}eg li{}a. Su{ile su ga u pe}ima pushed to the right, towards the mouth of the mor- na umerenoj toploti, a zatim tucale u tu~anim tar, where it was cut with the right hand, by using posudama pomo}u }uskije i prosejavale po tri a moveable knife tied by the opposite end of the puta, naj~e{}e kroz svilena sita. Dobijeni prah handle to the very mouth of the mortar«. In a

GROWING AND PROCESSING OF TOBACCO BEFORE MONOPOLY stavqale su u kutijice i prodavale. Posebno su se tobacconist shop there were usually several such trudili da im li{}e pri su{ewu ne pregori, jer mortars. Tobacco was so well cut in them that there bi u tom slu~aju izgubilo od svoje ja~ine. Ipak, was no difference whatsoever between the tobacco qubav prema u{mrkavawu nikada se u Srbiji nije cut in this manner and subsequent machine- razvila kao u nekim drugim zemqama, na primer processed tobacco. The boys who were cutting Engleskoj, gde je po~etkom XIX veka ono bilo tobacco in mortars were called cutters. A good dominantan metod potro{we duvana: pu{ewe na worker could cut between ten and twenty kilograms lulu smatrano je tada vulgarnim, a fine cigare of tobacco in one day, without sorting it, and to jo{ nisu stigle sa Kube. make 20 paras from each kilogram.23 U prvo vreme u Srbiji se pu{io samo kri- In sorting, yellow leaves were separated from àni duvan, a cigaret-papir se uvozio iz ino- the red ones. Yellow leaves were used for producing stranstva. Kriàni duvan obi~no je bio sme{a better tobacco, while red ones were for poorer qual- razli~itih sorti, uglavnom doma}ih, ali i ity tobacco. Black leaves were discarded. stranih (turskih) koje su mu popravqale ukus jer Many tobacconists were growing tobacco them- su bile miri{qavije. Samo je jedna privatna selves, so they planted it, picked it, fermented, fabrikacija u Beogradu koristila i ameri~ki i dried, sorted, molded and cut, and then they sold it. {panski duvan za stvarawe boqih me{avina. Tobacconists also produced snuff from the Kasnije su avanxije ru~no izra|ivale i cigarete tiniest leaves with the sharpest taste. They dried it pomo}u hilzni.* in ovens on medium heat, and then they crushed it Duvan je od seqaka u tre}oj ~etvrtini XIX in brass bowls by using a crowbar and sieved it veka otkupqivan po ceni koja je zavisila od kva- three times, in most of the cases through silky liteta i kretala se od 2 do 6 dinara po kilogra- sieves. The powder they obtained was put in small mu, dok je strani duvan u listu (uglavnom turski) boxes and sold. They were particularly careful to nabavqan po 12 din/kg. Avanxije su prodavale prevent the burning of leaves when they dried kriàn duvan po 6–10 din/kg za lo{iji i 12–24 them, because then tobacco would lose some of its din/kg za finiji duvan. Prema drugom izvoru, sharpness. Still, the passion for snuffing never iskriàn duvan prodavan je po 2–40 dinara od developed in Serbia to the extent in which it devel- 24 stare oke (1280 grama). Ipak, ove podatke iz oped in some other countries, like England, where etnolo{ke literature treba uzeti sa rezervom, in the early 19th century it was a dominant method of tobacco consumption: at that time, smoking a * Kratka istorija cigareta: mo`da su nastale u pipe was considered vulgar, and fine cigars had yet Brazilu, a mo`da u [paniji; Portugalci su ih to arrive from Cuba. preneli na Levant Turcima; po Evropi su se pro{irile tokom Napoleonovih ratova i za- In the early days, only cut tobacco was smoked tim posle Krimskog rata, kada su francuski i in Serbia, and cigarette paper was imported from engleski vojnici nau~ili na wih od Turaka, abroad. Cut tobacco was usually a blend of differ- svojih saveznika. Savijane su ru~no, pu{ili su ih uglavnom siroma{niji slojevi, a finija go- ent varieties, mostly domestic, but it also included spoda su ih smatrala otpatkom nastalim pri foreign (Turkish) ones, to improve the taste pravqewu dobrih cigara. Pobedu nad lulom i because they had nicer smells. Only one private cigarom, bar po kvantitetu, doneo im je prona- lazak visoko produktivnih ma{ina za zamota- factory in Belgrade used American and Spanish vawe tokom 1880-tih godina. tobacco as well, for making better blends. Later on,

UZGAJAWE I PRERADA DUVANA DO POJAVE MONOPOLA Cena duvana Price of tobacco

din/kg din/kg Jan 65 Jan 66 Jan 67 Jan 68 Dec 68 4 4 3,5 3.5 3 3 2,5 2.5 2 2 1,5 1.5 1 1 jan. 65 jan. 66 jan. 67 jan. 68 dec. 68

Izvor: Dràvopis Srbije, Source: Serbia’s Statistics, kwiga V, 1871. volume V, 1871 jer nisu zasnovani na sistematskom statisti~- tobacconists also made cigarettes, by using manual kom pra}ewu, ve} na uvidu i se}awu pojedinaca. cigarette rolling machines.* Dràvna statistika daje ne{to druga~ije In the third quarter of the 19th century tobacco rezultate. Kretawe prose~ne mese~ne cene doma- was purchased from farmers at a price which }eg duvana za period 1865-1868. godina prikaza- depended on the quality and ranged between 2 and no je na prethodnom grafikonu. 6 dinars per kilogram, while foreign tobacco leaves Cena doma}eg duvana obi~no se kretala izme- (mainly Turkish) were procured at 12 din/kg. |u 2 i 2,5 dinara po kilogramu, a prosek za ceo Tobacconists were selling cut tobacco at a price period je 2,37 dinara. Doma}i duvan bio je ranging from 6–10 din/kg for poorer quality and slabijeg kvaliteta nego strani turski, pa je i wegova cena bila znatno nià. * A short history of cigarettes: maybe they were Uvoz duvana je bio skroman: iznosio je u pro- first made in Brazil, and maybe in Spain; the Por- seku 30 hiqade kilograma godi{we u periodu tuguese brought them to the Levant to Turks; they 1865/66–1869/70, i to prvenstveno finijeg tur- spread throughout Europe during the Napoleonic Wars and then after the Crimean War, when skog duvana (bo{~e). Uvoz je uglavnom dolazio iz French and English soldiers were introduced to Turske (oko ½ duvana), ali i iz Austrougarske (¼). them by the Turks, their allies. They were rolled Izvoz duvana bio je ne{to ve}i po koli~ini manually and smoked mainly by poor segments of the population, while fine gentlemen considered od uvoza: dostigao je 54 hiqade kilograma godi- them to be the waste from the manufacture of {we u proseku. Destinacija izvoza bila je slede- good cigars; a victory over the pipe and cigar, at }a: Turska 55%, Austrougarska 38% i Vla{ka least in terms of quantity, was brought to them by an invention of highly productive rolling 7%. Uglavnom je izvoèn srpski duvan, ali bi se machines in the course of the 1880s.

GROWING AND PROCESSING OF TOBACCO BEFORE MONOPOLY na{lo ne{to i turskoga kojim je pomalo snabde- 12–24 din/kg for finer tobacco. According to anoth- vana Austrougarska. er source, cut tobacco was sold at a price ranging Vrednosno posmatrano, ovih godina je ~as from 2–40 dinars for an old oke (1280 grams).24 bilo suficita, ~as deficita duvanskog trgo- Still, this information from ethnological literature vinskog bilansa za Srbiju, sa ukupnim umerenim should be taken with a qualified acceptance, deficitom. because it is based on insights and recollections of Oko 1880. godine ukupna proizvodwa duvana individuals, rather than on systematic statistical u zemqi procewivana je na oko hiqadu tona monitoring, godi{we. Vo|stvo je tada drào, i po obimu Official statistics produced somewhat different proizvodwe i po kvalitetu, aleksina~ki okrug. results. The movements in the average monthly Procewena proizvodwa po okruzima prikazana price of domestic tobacco for the period 1865–1868 25 je na slede}oj tabeli, dok je proizvodwa u beo- are presented in the previous figure. gradskom i crnore~kom okrugu bila neznatna. The price of domestic tobacco usually ranged Iz tabele se vidi da je duvan gajen prakti~no u between 2 and 2.5 dinars per kilogram, while the svim okruzima, {to zna~i da nije bilo ve}e average for the entire period was 2.37 dinars. Domestic tobacco was of a poorer quality than foreign, Turkish tobacco, hence its price was consid- Proizvodwa, 1880. Production, 1880 erably lower. Tobacco imports were modest: on average, they Okrug tona District tonnes amounted to 30,000 kilograms a year in the period 1865/66–1869/70, with finer Turkish tobacco Aleksinac 400 Aleksinac (Boš~a) accounting for the bulk of them. Imports were mainly coming from Turkey (around ¾ of Kru{evac 150 Kruševac tobacco), but also from Austria-Hungary (¼). Exports of tobacco were quantity-wise some- Ni{ 80 Niš what higher than imports: on average, they reached â~ak 50 54,000 kilograms a year. The destinations of exports â~ak were as follows: Turkey 55 percent, Austria-Hungary Poàrevac, Podriwe, [abac 40 38 percent and Wallachia 7 percent. Serbian tobacco Poàrevac, the Drina Valley, Šabac accounted for the bulk of exports, but one could also Krajina, Kragujevac 30 find some Turkish tobacco that was supplied to Aus- Krajina, Kragujevac tria-Hungary in smaller quantities. Uìce, ]uprija, Kwaèvac, Vrawe 20 In terms of value, in those years Serbia’s tobac- Uìce, ]uprija, Knjaèvac, Vranje co trade balance alternated between surpluses and Jagodina, Smederevo 15 deficits, running a moderate deficit on a net basis. Jagodina, Smederevo Around 1880, total tobacco production in the Vaqevo, Pirot 10 country was estimated at around one thousand Valjevo, Pirot tonnes a year. The district of Aleksinac was the Toplica, Rudnik 5 Toplica, Rudnik leader at that time, both in production volumes and in quality, while production in the districts of

UZGAJAWE I PRERADA DUVANA DO POJAVE MONOPOLA specijalizacije prema klimatskim uslovima i Belgrade and Crna Reka was negligible. The esti- karakteristikama zemqi{ta, ali ni po dràvnoj mated production by district was as presented in the i politi~koj proceni ko i gde treba da seje. Do- previous table. 25 du{e, duvan je sa|en tek na oko 1800 hektara u The table shows that tobacco was grown in prac- celoj Srbiji, {to nije mnogo i {to zna~i da je tically all the districts, which means that there was gajen u tek po nekoliko sela u ve}ini okruga, ali no major specialization based on the climate and i da su ga pojedinci sadili na malim povr{i- properties of soil, or on a government and political nama, drè}i se na~ela diverzifikacije pro- assessment as to who should plant tobacco and izvodwe kako bi se smawio rizik lo{e godine. where. Admittedly, in the whole of Serbia, tobacco Za ostavu i ~uvawe duvana postojali su javni was planted on a mere 1800 hectares, which is not magacini (antropoi), o kojima se dràva brinu- much and which means that in most of the districts 26 la, u Beogradu, Aleksincu, Kru{evcu i â~ku. there were only a few villages where it was grown, as well as that it was planted on small areas by individual farmers, who stuck to the principle of production diversification in order to reduce the risks asso- ciated with a lean year. Tobacco was stored and kept in public warehouses (antropoi) in Belgrade, Aleksinac, Kruševac and â~ak, which were in the government’s care. 26

Muštikla A cigarette holder

GROWING AND PROCESSING OF TOBACCO BEFORE MONOPOLY Kosta Cuki} Kosta Cuki} Oporezivawe duvana

TAXATION OF TOBACCO

Regalna taksa Regal Fee edina da`bina u vezi sa duvanom, do po~etka he only levy related to tobacco, until the early J1880-tih godina, bila je regalna taksa na uveze- T1880s, was a regal fee on imported tobacco. The ni duvan. Poreski sistem je tada bio jednostavan: tax system of that time was simple: the main tax glavni porez bio je onaj direktni – od 5, odnosno 6 was the direct one – amounting to 5 or 6 thalers per talira po glavi doma}instva. Ni posrednih po- head of a household. There were no indirect taxes reza nije bilo, a tro{arine, kr~marine i sli~ne either. Excise duties on tobacco and alcoholic bever- da`bine uvedene su tek 1881. godine i kasnije. ages, and similar levies were introduced as late as Ministar finansija Kosta Cuki} uveo je re- 1881 and beyond. galnu taksu na duvan 1864. godine kao na~in Finance Minister Kosta Cuki} introduced the pove}awa dr`avnih prihoda, potrebnih za naci- regal fee on tobacco in 1864 as a way to increase onalno oslobodila~ke planove kneza Mihaila. government revenue, necessary for Prince Mihai- Istovremeno, to je bio indirektan na~in da se lo’s plans for national liberation. At the same time, pove}aju carine u vreme kada Srbiji niko nije it was an indirect manner to increase customs priznavao fiskalnu samostalnost, a posebno ne duties in the times when nobody recognized fiscal pravo da sama odre|uje carinsku tarifu. Naime, autonomy to Serbia, in particular the right to inde- Austrougarska je tretirala Srbiju kao deo pendently set customs tariffs. Namely, Austria- carinskog podru~ja Turske, {to je formalno i Hungary treated Serbia as part of the Turkish cus- bila, i nije prihvatala ideju o samostalnoj toms area, which it formally was, in fact, and did carinskoj politici Srbije. Da bi se tome dosko- not accept the idea of an independent customs pol- ~ilo, Cuki} je uveo regalne takse, izme|u osta- icy of Serbia. In order to get around it, Cuki} intro- lih i regalnu taksu na duvan, koja je po svojoj duced regal fees, including a regal fee on tobacco, su{tini bila jednaka carini: napla}ivana je which essentially amounted to a customs duty: it samo na uvezeni duvan i napla}ivale su je cari- was levied only on imported tobacco and collected narnice. Tarifa regala za jednu oku izra`ena je by customs houses. The regal fee tariff for one oke u gro{ima i okama, a prevedena na dinare i ki- was set in grochen per oke, and converted into lograme iznosila je: dinars and kilograms it amounted to:

37 Regalna taksa Regal Fee

vrsta duvana gro{a za oku din/kg tobacco kind grochen per oke din/kg bo{~a u listu 4 gro{a i 10 para 2,18 Boš~a – leaves 4 grochen and 10 paras 2.18 bo{~a se~ena 4 gro{a i 2 pare 2,07 Boš~a – cut 4 grochen and 2 paras 2.07 prose~a u listu 3 gro{a 26 para 1,87 Prose~a - leaves 3 grochen 26 paras 1.87 prose~a se~ena 3 gro{a 20 para 1,79 Prose~a – cut 3 grochen 20 paras 1.79 xuma u listu 2 gro{a 30 para 1,41 D`uma – leaves 2 grochen 30 paras 1.41 xuma se~ena 2 gro{a 25 para 1,34 D`uma – cut 2 grochen 25 paras 1.34 vla{ki i ni{ki 1 gro{ 25 para 0,83 Wallachia and Niš 1 grochen 25 paras 0.83

Na sto komada prostih cigara regal je izno- For one hundred plain cigars, the regal fee sio 3 gro{a i 10 para (1,30 dinara) i finih 4 amounted to 3 grochen and 10 paras (1.30 dinars) and gro{a i 20 para (1,80 dinara). for fine ones, 4 grochen and 20 paras (1.80 dinars). Nije pro{la ni godina dana a regalna taksa Not even a year had elapsed and the regal fee on na duvan pove}ana je na 6 gro{a za oku za sve tobacco was raised to 6 grochen for one oke of all kinds vrste duvana u listu, tj 3,07 dinara za kilogram. of tobacco leaves, or 3.07 dinars for one kilogram. The Ista je tarifa uvedena i za 100 cigareta. Zna~i, same tariff was also introduced for 100 cigarettes. This taksa je bitno pove}ana, a posebno za slabije means that the fee was substantially raised, particular- duvane. Izjedna~ewe je najverovatnije posledica ly on poorer quality kinds of tobacco. The leveling of nemogu}nosti da se carinski organi izbore sa the fee was probably a consequence of the fact that the marifetlucima trgovaca prilikom prijavqi- customs authorities could not cope with the fraudu- vawa i manipulacije duvanom, kako se doga|alo i lent practices of merchants at declaring and handling u kasnijim vremenima. tobacco, which is a story that kept repeating itself. Prihod od regala nije bilo veliki: u pe- The revenue from the regal fee was not particu- riodu 1867–1870. godine izneo je prose~no 95 larly high: in the period 1867–1870 it was 95,000 hiqada dinara godi{we, a i podbacivao je u dinars a year on average, and it even underper- odnosu na buxetske planove, pa je u celom perio- formed relative to the budget projections, yielding a 27 du dostigao samo 2/3 predvi|enog iznosa. mere 2/3 of the projected amount in actual collec- Ovaj regal bio je deo Cuki}evog plana una- tions over the entire period.27 pre|ewa proizvodwe duvana u Srbiji. Ideja je This regal fee was part of Cuki}’s plan for the svakako bila da se povoqno uti~e na proizvodwu promotion of tobacco production in Serbia. The duvana tako {to }e pove}awe cene uvoznih, idea certainly was to provide incentives to tobacco

OPOREZIVAWE DUVANA uglavnom turskih duvana dovesti do pove}awa production by increasing the price of imported, tra`we za doma}im, jeftinijim duvanima. mainly Turkish, tobaccos, and thus boosting demand Druga dva dela plana bila su, prvo, edukacija i for domestic, cheaper tobaccos. The other two parts seqaka i dràvnih ~inovnika o vrlinama i of the plan were to first train both farmers and civil tehnologiji gajewa duvana, ~emu je trebalo da servants on the virtues and technology of tobacco posluì publikacija Pouka kako se proizvodi growing with the help of the publication Instructions duvan, koju je Ekonomno odeqewe Ministarstva on How to Produce Tobacco, which the Economic finansija pripremilo i objavilo 1865. godine. Department of the Ministry of Finance prepared and I drugo, dràva je nabavqala zasade boqih published in 1865. In the second part of the plan, the sorti turskog duvana i delila ih je seqacima ne state was procuring seedlings of finer Turkish tobac- samo u aleksina~kom kraju, ve} i na drugim co varieties and distributing them to farmers not 28 podru~jima Srbije sve do pojave monopola. only in the region of Aleksinac, but also in other Za ovaj regal kasnije se govorilo da je blago- regions of Serbia, during the entire period preceding tvorno uticao na proizvodwu duvana u Srbiji. the introduction of the monopoly.28 Za takvu tvrdwu nemamo potvrde u podacima. Later on, it was said that this regal fee had had a Naime, najraniji podatak je onaj o povr{ini positive effect on tobacco production in Serbia. zemqi{ta zasa|enog duvanom iz 1867. godine, There is no corroboration of this assertion in the koji govori o 1803 hektara, {to je povr{ina, u data. Namely, the earliest piece of data is the one on proseku gledano, koja se i kasnije sadila. Dakle, the area of land planted with tobacco, dating from ili su od 1864. godine, kada je donet propis o 1867, which mentions 1803 hectares. In terms of regalu, do 1867. godine, kada je izvr{en popis averages, it was the same area which was planted zemqi{ta, zasa|ena povr{ina zemqi{ta i pro- later as well. Accordingly, in the period between izvodwa duvana bitno porasle, {to nije verovat- 1864, when the regulation on the regal fee was no s obzirom na kratko}u vremena, ili do veli- passed, and 1867, when the land census was taken, kog porasta kao posledice regala i nije do{lo. either the planted area and tobacco production went up steeply, which is not very likely bearing in Trgovinski ugovor sa AU mind the brevity of this period, or the huge rise driven by the regal fee never really occurred. Po~etkom 1880-tih godina na vlasti u Srbiji je napredwa~ka stranka, koja je namerila, zajedno sa knezom, odnosno kraqem Milanom Obrenovi- Trade Agreement with Austria-Hungary }em, da unapredi Srbiju i pretvori ovu zaostalu In the early 1880s, the Progressive Party was in power provinciju turskog carstva u naprednu evropsku in Serbia. Together with the Prince, i.e. King Milan zemqu. I rezultat napredwa~kog rada na moder- Obrenovi}, it intended to advance Serbia and turn this nizaciji Srbije nije izostao, pa je predsednik backward province of the Ottoman Empire into a pro- vlade Milutin Gara{anin (1884–1887) mogao s gressive European country. And the efforts of the Pro- ponosom da iznese sedmogodi{wa dostignu}a gressivists toward Serbia’s modernization soon yielded vlasti napredwaka: „ostavila je iza sebe dve results, making Prime Minister Milutin Garašanin velike èleznice svetskog i dve unutra{weg zna- (1884–1887) able to proudly present the achievements ~aja; re{ewe agrarnih odnosa u novooslobo|enim of the Progressivists’ seven years in power which: “left

TAXATION OF TOBACCO krajevima; organizovanu vojsku; promeweno celo- behind two major railroads of international and two of kupno naoruàwe; grupisane op{tine; nezavi- local significance; the resolution of land-related issues snost sudova; izmewen poreski sistem; stvorenu in the newly liberated regions; an organized army; all Narodnu banku i veliki broj nov~anih zavoda; weaponry replaced; municipalities grouped; independ- podignutu Akademiju nauka i ve{tina; ure|eno ence of courts; a modified tax system; the National u~iteqsko i sve{teni~ko stawe i obnovqenu Bank and a large number of financial institutions 29 Kraqevinu srpsku”. Nije malo za kratko vreme. established; an Academy of Arts and Skills erected; an Jedan od va`nih poslova ministra spoqnih orderly situation of teachers and clergymen and a poslova i finansija êdomiqa Mijatovi}a bio je renewed Kingdom of Serbia“.29 Quite a record for trgovinski sporazum sa Austrougarskom. On je do- such a short period of time. sta pa`we posvetio tro{arinama u Srbiji. Sa One of the important jobs of êdomilj Mijatovi}, razlogom, jer je u Srbiji, kao i u Turskoj, postojao the Minister of Foreign Affairs and Finance, was a stari obi~aj uvo|ewa poreza na promet – tro{ari- trade agreement with Austria-Hungary. He paid a na i regalnih taksi – samo na uvezene proizvode lot of attention to excise duties in Serbia. With good (duvan, so, {e}er, finija alkoholna pi}a, sapuni, reason, because in Serbia, as in Turkey, there existed {ibice, cigaretpapir itd), a ne i na iste te ili an old custom to introduce sales taxes – excise na druge doma}e proizvode, ~ime je fakti~ki izi- duties and regal fees – only on imported goods gravana ugovorena carina i pove}avana carinska (tobacco, salt, sugar, finer alcoholic beverages, za{tita. U ostalom delu Evrope vladalo je stan- soaps, matches, cigarette paper, etc.), but not on dardno pravilo jednakog optere}ewa svih, i uvo- those same or other goods that were locally pro- znih i doma}ih, proizvoda porezima na promet. duced, which practically meant playing around the Da bi se ograni~ila mogu}nosti Srbije da agreed customs duties and increasing customs pro- dodatnim porezima optere}uje iskqu~ivo wene tection. In the rest of Europe, a standard rule was in robe na srpskom trì{tu, Austrougarska je insi- force of putting an equal burden of sales taxes on all stirala da u ugovor u|e odredba po kojoj se unutra- goods, imported and domestically produced alike. {wim da`binama strani proizvodi ne mogu vi{e In order to limit the ability of Serbia to levy sur- optere}ivati nego doma}i. Tako|e je ograni~eno charges only on Austro-Hungarian goods on the Ser- pravo Srbije da ustanovqava dràvne monopole bian market, Austria-Hungary insisted on incorporat- na samo tri proizvoda – duvan, so i barut – jer se ing into the Agreement a provision under which local i ovde bojala da }e Srbija {irokim kori{}ewem charges levied on foreign goods may not be higher monopola izigrati odredbe o ujedna~enom opore- than those on goods produced in the country. Like- zivawu stranih i doma}ih proizvoda i spre~iti wise, Serbia’s right to establish government monopo- uvoz mnogih roba na sopstveno trì{te. lies was limited to three products only – tobacco, salt Ipak, ni takve op{te odredbe o tro{arinama and gunpowder – because it was afraid that Serbia nisu potpuno onemogu}avale Srbiju u dodatnom might go around the provisions on equal taxation of optere}ewu uvoznih roba. Jer, Srbija je mogla, i foreign and domestic goods in this domain as well, ~inila je to, da optereti porezima na promet one through a large-scale use of monopolies, and prevent proizvode koji se ne proizvode u zemqi ve} se imports of many goods on its market. samo uvoze, kako je Cuki} u~inio sa duvanom, a sa Nevertheless, not even such general provisions dobrim finansijskim rezultatima. Stoga su, na on excise duties managed to completely prevent

OPOREZIVAWE DUVANA êdomiq Mijatovi} êdomilj Mijatovi} austrougarsko insistirawe, u ugovor unete odred- Serbia from additionally burdening imported goods: be kojima se direktno propisuje visina ovih because Serbia could, and did, burden with sales poreza – tako, regalni danak na duvan i so moè taxes those goods which were not locally produced postojati i daqe u Srbiji dok se ne uvedu dràv- but were exclusively imported, as Cuki} did with ni monopoli, s tim da se na duvan pla}a 205 tobacco, scoring good financial results. Therefore, dinara, na cigare 400 dinara i na cigaret papir on Austria-Hungary’s insistence, provisions were 125 dinara, a sve na 100 kilograma. incorporated in the Agreement, which explicitly Pristankom na propisivawe visine tro{a- prescribe the level of these taxes – thus, the regal rina trgovinskim ugovorom Srbija jeste ukinula levies on tobacco and salt could continue to exist in deo sopstvene fiskalne suverenosti, ali je Serbia, pending the introduction of government stekla neke bitne pogodnosti koje nisu bile monopolies, with their amounts being 205 dinars on uobi~ajene: Austrougarska je prihvatila postoja- tobacco, 400 dinars on cigars and 125 dinars on cig- we tro{arina na robe koje se ne proizvode u arette paper, all on 100 kilograms. Srbiji i pristala da se zadrì regalna taksa na By agreeing to the setting of excise duty levels in a duvan, koja je optere}ivala iskqu~ivo uvozni, a trade agreement, Serbia did relinquish part of its own ne i doma}i duvan, i neke akcize uvedene u poje- fiscal sovereignty, but it gained some crucial advan- dina lokalna podru~ja. Bio je to izraz blagona- tages that were not common: Austria-Hungary klonog razumevawa Austrougarske prema fiskal- accepted the existence of excise duties on those goods nim potrebama Srbije, proistekao iz wene èqe which were not produced in Serbia and agreed to da u~vrsti tek uspostavqeni uticaj u Beogradu. maintaining the regal fee on tobacco, which was levied exclusively on imported tobacco, and not on Tro{arina na duvan domestically produced, and some excises introduced in certain local regions. It was a reflection of bona fide Za trgovinskim sporazumom sa Austrugarskom understanding on the part of Austria-Hungary for sledio je zakon o tro{arini na duvan, iz juna Serbia’s fiscal needs, arising from its wish to consoli- 1881. godine. Po ovom zakonu tro{arina je na- date its only recently gained influence in Belgrade. pla}ivana od trgovaca duvanom, pre nego {to duvan unesu u svoje radwe ili stovari{ta, pri ~emu su sve duvanxijske radwe morale biti pri- Tobacco Excise Duty javqene policijskoj vlasti (prekr{ilac pla}a The trade agreement with Austria-Hungary was fol- 500 dinara kazne). Kriàwe duvana moglo se vr- lowed by a law on tobacco excise duty, of June 1881. {iti samo u duvanxijskim prodavnicama. Pro- Under this Law, excise duty was collected from davci su morali voditi kwige prometa, a, radi tobacco merchants, before they bring tobacco into kontrole naplate, uvedeno je ìgosawe duvanskih their shops or warehouses, with the mandatory reg- omota i kutija i plombirawe duvanskih dewkova. istration of all tobacconist shops with the police Tro{arinska tarifa bila je diferencira- authorities (the fine for offenders was 500 dinars). na prema poreklu i kvalitetu: za doma}i duvan Cutting of tobacco could be performed only in napla}ivana je 40 para po kilogramu, na slabi- tobacconist shops. Salesmen had to keep business ji strani („basma”) 2 dinara po kilogramu i na books recording their turnover, while the stamping kvalitetniji strani („bo{~a i amerikanski”) of tobacco wrappings and packs and the sealing of

OPOREZIVAWE DUVANA 5 dinara po kilogramu. Nepla}awe tro{arine po- tobacco bales were introduced for the collection vla~ilo je kaznu od 5 do 20 puta utajene sume, pri control purposes. ~emu je potkaziva~u pripadala tre}ina kazne. Different levels of excise duty were set accord- Osnovni problem bio je kako obezbediti na- ing to the origin and quality: for domestic tobacco platu tro{arine, tj. ko je wen obveznik. Zakon je the amount was 40 paras per kilogram, 2 dinars predvideo lepo na~elno re{ewe: da tro{arinu were levied on a kilogram of poorer quality foreign pla}a trgovac koji preuzme duvan od seqaka/pro- tobacco (“Basma”) and 5 dinars on a kilogram of izvo|a~a. Me|utim, te{ko}e su donosile druga- higher quality foreign tobacco (“Boš~a and Ameri- ~ije transakcije: kada se pojavi posrednik izme- can”). The non-payment of excise duties carried a |u wih u obliku bakalina, ili kada seqak fer- fine amounting to 20 times the stated sum, with one menti{e i krià duvan, ili kada duvanxijski third of this fine going to the informer. trgovac uzgaja duvan i sli~no. U takvim situaci- The main problem was how to ensure the collec- jama mogu}nost izbegavawa pla}awa tro{arine tion of excise duties, i.e. who should be the taxpay- veoma raste, {to se i stalno doga|alo, uz znatne er. The Law stipulated a fine arrangement in princi- gubitke dràvne kase. Lepo je u Skup{tini rekao ple: excise duty was to be paid by the merchant who poslanik Kosta Antula, ina~e trgovac, da je took over the tobacco from the farmer/producer. zakon prakti~no nesprovodqiv. However, difficulties were created by other types of Po usvajawu zakona nastala je trka ko }e transactions: when an intermediary stepped in, ste}i pravo prodaje duvana. Zakon je bio jasan, to such as a grocer, or when a farmer fermented and su pravo imale ovla{}ene duvanxije, ali je mo- cut tobacco, or when a tobacco merchant was grow- gu}e domi{qawem poku{ati popravku zakona. ing tobacco, and the like. In such situations, the Tako su kru{eva~ki bakali tvrdili da u gradu possibility to evade paying excise duty was consider- nema duvanxija, pa su, kako bi narod mogao da ably higher, and that was actually happening all the uìva u duvanskom dimu, predloìli ministru time, with considerable losses for the public purse. da im se dozvoli prodaja duvana u bakalnicama. It was nicely put in the Assembly by deputy Kosta Za to su saznale kru{eva~ke duvanxije, pa su Antula, who was a merchant himself, that, for all dojavile nadle`noj vlasti o svom postojawu jo{ practical purposes, the law was non-implementable. iz starih vremena i smerno zamolile ministra Upon the adoption of the Law, a race started for finansija da „molbu bakala smatra kao neumesnu the right to sell tobacco. The Law was clear, that right i neistinitu”. No, kru{eva~ki bakali ne behu pertained to authorized tobacconists, but it was possi- qudi koji se lako predaju, pa su krenuli da svoje ble to try and fix the Law by ingenuity. Thus, the gro- radwe upisuju kao duvanxinice, a prodaju duvana cers of Kruševac claimed that there were no tobac- kao „glavno zanimawe”. A sporedno zanimawe conists in their town, so they proposed to the Minis- bila bi im prodaja bakaluka, slu~ajno u istoj ter, in order for their townsfolk to be able to enjoy the radwi u kojoj prodaju duvan. Me|utim, kod mini- tobacco fumes, to allow them to sell tobacco in their starstva finansija ova politika nije na{la groceries. The Kruševac tobacconists found out about pro|u, jer je isto, kako reko{e, prodavati duvan that, and informed the competent authority that they 30 uz bakaluk, kao i bakaluk uz duvan. had existed from time immemorial and humbly asked Bilo je i drugih domi{qawa. Tako je dvana- the Finance Minister to “consider the application of est najve}ih trgovaca, odnosno uvoznika duvana the grocers as inappropriate and false”. Yet, the

TAXATION OF TOBACCO zamolilo ministra finansija da zate~eni duvan Kruševac grocers were not the kind that gives up easi- u magacinima ne bude, prilikom oporezivawa ly, so they started to register their shops as tobac- novouvedenom tro{arinom, tretiran kao bo{~a conist shops, and the selling of tobacco as their “core (boqi duvan) ve} kao basma (slabiji duvan). Jeste activity”. And their non-core activity would be the da je taj duvan i ranije bio obeleèn kao bo{~a, selling of groceries, which happened to be in the same ali to ne stoji iz dva razloga, smatraju oni: prvo, shop in which they sold tobacco. However, they could ono {to je bila bo{~a izgubilo je kvalitet usled not sell this policy to the Ministry of Finance, because, dugog stajawa; i drugo, jo{ je strani isporu~ilac as they put it, there was no difference between selling markirao basmu kao bo{~u iz svojih trgova~kih tobacco alongside with groceries and selling groceries razloga, pa je pravedno da taj duvan plati mawu alongside with tobacco.30 tro{arinu. Vrlo duhovito: kada prodaju duvan, There were some other ingenious ideas as well. tvrde da je kvalitetan; kada treba platiti porez, Thus, the twelve biggest merchants, i.e. tobacco kaù da je lo{. Mo`da bi to pro{lo, ali se ubr- importers, asked the Finance Minister not to treat zo javila jedna ve}a grupa duvanxija, sitnijih the tobacco found in the warehouses as Boš~a (finer trgovaca, koji sve~ano izjavi{e da sve re~eno ni- tobacco), but as Basma (more inferior tobacco), for je istina i da to veliki trgovci èle da plate 2 the purposes of taxation with the newly introduced dinara tro{arine umesto 5. „Mi im sa svoje duty. Though it was true that the said tobacco had strane ne bi kvarili voqu, da se to ne ti~e na{e been labeled as Boš~a, it was not really so for two koè”, reko{e oni i objasni{e ministru da bi reasons, in their opinion: first, what had been Boš~a time bila ubijena konkurencija i zaveden mono- once, lost its quality due to the long period in the pol onih koji imaju trogodi{we rezerve duvana, warehouses; and second, it was the foreign supplier po{to bi oni, optere}eni malom tro{arinom, who had labeled Basma as Boš~a for his own com- mogli niskim cenama upropastiti svakoga ko po- mercial reasons, so it would be just for this tobacco 31 ku{a da uveze novu bo{~u. I bili su u pravu. to pay less excise duty. Very funny: when they sell Jula 1882. godine izmewen je zakon o tro{a- tobacco, they claim it is of high quality; when it rini na duvan kako bi se otklonile neke wegove comes to paying taxes, they say it is inferior. They slabosti i pove}ala tarifa. Dok je za doma}i almost got away with this, but very soon a sizeable duvan zadràna taksa od 40 para po kilogramu, group of tobacconists came forward, small mer- za strani je izmewena tako da se za duvan u listu chants, who solemnly declared that everything that pla}alo 4 dinara i za se~en i kriàn 6 dinara had been said was not true and that it was all about po kilogramu. Dakle, ukinuto je razli~ito opo- big merchants wanting to pay 2 dinars of excise rezivawe prema kvalitetu stranog duvana, duty instead of 5. “On our part, we would not have po{to se pokazalo da je prakti~no nemogu}e interfered with their scheme, if our skin had not dosko~iti onima koji èle da jednu vrstu duva- been at stake”, they said and explained to the Minis- na prikaù kao drugu i da plate mawi porez. ter that it would kill the competition and introduce Kako re~e jedan poslanik, qudi koji su vi~ni a monopoly of those who had three years’ reserves marifetlucima „metu basme po nekoliko lista of tobacco, since they would be able, due to the fact na bo{~u i tako proture bo{~u kao basmu” i that they were paying lower excise, to ruin anybody plate mawi porez. Iz istog razloga odba~en je who tired to import new Boš~a with their low predlog da se doma}i duvan kategorizuje kao prices.31 And they were right.

OPOREZIVAWE DUVANA lo{, sredwi i dobar, sa razli~itim tarifama. In July 1882, the Law on Tobacco Excise Duty Ministar finansija êdomiq Mijatovi} rekao was amended in order to eliminate some weaknesses je da bi to toliko umnoìlo ~inovnike, pa bi it had and to increase the tariff. While the fee on „iza{la skupqa dara nego maslo”. Nije prihva- domestic tobacco was kept at 40 paras per kilogram, }en ni predlog da se smawi tro{arina na doma- the fee on the foreign one was changed to amount to }i duvan; logika zastupnika tro{arine bila je 4 dinars per kilogram of tobacco leaves and 6 dinars standardna za to vreme – duvan je luksuz i ko per kilogram of shredded and cut tobacco. So, differ- èli da pu{i ima i da plati. Jovan Raji~i} ences in the taxation of foreign tobacco based on its tvrdio je da duvan tro{e „i mala deca, a da je quality were eliminated, since it turned out that it 32 skupqi ne bi mogla da pu{e”. Poslanici kao was practically impossible to outsmart those who Jovan nadali su se da }e tro{arina i poskupqe- wanted to falsely present the kind of tobacco they we duvana odbiti qude od pu{ewa, ali se i tada were importing in order to pay less tax. As one deputy i uvek pokazalo da oporezivawe te{ko da uti~e once said, people skilled in frauds “put a couple of na mawe uìvawe poroka. Ali, neosetqivost Basma leaves on Boš~a and thus present Boš~a as uìvalaca na pove}awe poreza uvek se dopada Basma”, paying less tax. For the same reason the pro- poreznicima – mogu}e je pove}avati poreske posal to categorize domestic tobacco as inferior, stope i prihode bez prevelike bojazni da }e se medium and good, with different tariffs, was reject- smawiti prodata koli~ina i poreska osnovica. ed. Finance Minister êdomilj Mijatovi} said that it Posledica uvo|ewa tro{arine na duvan sva- would increase the number civil servants so much kako je bio rast prodajnih cena, kako pokazuje that “the game would not be worth the candle”. The slede}i grafikon. proposal to reduce excise duty on domestic tobacco

Cena srpskog duvana Price of Serbian tobacco

din/kg din/kg Jan 81 Jan 82 Oct 82 2,2 2.2

2 2

1,8 1.8

1,6 1.6

1,4 1.4

1,2 1.2 jan. 81 jan. 82 okt. 82

Izvor: Dr`avopis Srbije, Source: Serbia’s Statistics, kwiga XIV, 1889 volume XIV, 1889

TAXATION OF TOBACCO Dok je u prvom polugo|u 1881. godine cena was not accepted either; the logic of the advocates of kilograma doma}eg duvana iznosila prose~no excise duty was standard for that time – tobacco is 1,58 dinara, dotle je po uvo|ewu tro{arine pora- luxury and he who wants to smoke, has to pay for it. sla i u slede}em periodu, do pred kraj 1882. Jovan Raji~i} claimed that tobacco was consumed by godine, dostigla prose~no 1,98 dinara. Zna~i, “small children as well, and had it been more expen- uve}ana je ta~no za 40 para po kilogramu koliko sive they would not have been able to smoke”.32 je i tro{arina iznosila. Deputies such as Jovan hoped that excise duty and a Nimalo neo~ekivano, i kod tro{arine na higher tobacco price would dissuade people from duvan su se, kao i kod drugih tro{arina, javili smoking, but it turned out, as it always turns out, prili~ni problemi sa naplatom – {verc je cve- that taxation is not very likely to deter people from tao, a dr`avni organi su bili nemo}ni. Nije enjoying their vices. However, tax people have always pomoglo ni to {to je pravilnik o izvr{ewu liked addicts’ insensitivity to tax increases – it is pos- zakona imao 72 ~lana, nasuprot skromnih 13 u sible to increase tax rates and revenues without too samom zakonu. Slo`ena procedura kontrole i na- much fear that sold quantities would decrease and plate tro{arine izazvala je 1882. godine {trajk that the tax base would shrink. 33 beogradskih duvanxija. Prihod od tro{arine A consequence of the introduction of tobacco na duvan bio je daleko ispod o~ekivawa: tako je u excise duty certainly was an increase in the selling buxetu za 1883. godinu planiran prihod od prices, as presented in the previous figure. jednog miliona, a ostvaren je od samo 453 hiqade While in the first part of 1881 the price of a dinara, zna~i ni polovina. kilogram of domestic tobacco was 1.58 dinars on average, after the introduction of excise duty it rose and in the following period, until late 1882, the average price reached a level of 1.98 dinars. Conse- quently, it was increased by exactly 40 paras per kilogram, which was the amount of excise duty. It was not surprising that considerable problems arose in the collection of tobacco excise duty, as in the collection of other excise duties as well – smuggling was flourishing, and the authorities could not do anything about that. Not even the fact could help that a bylaw on the implementation of this law had 72 articles, as opposed to a modest 13 in the law itself. The complex procedure for control and collection of excise duties was the reason for a strike by Belgrade tobacconists in 1882.33 The revenue from tobacco excise duty was far below the expectations: in the 1883 budget, revenue of one million had been planned, while the actual collection amounted to a mere 453,000 dinars, which was not even half of the projection.

OPOREZIVAWE DUVANA Trgova~ki monopol iz 1884. godine

THE 1884 TRADE MONOPOLY

ràva nikako nije uspevala da od posred- he government was constantly failing in collect- Dnih poreza (tro{arina i kr~marina) izvu- Ting the amount of money it planned and needed ~e onoliko novca koliko je planirala i koliko from indirect taxes (excise duties on tobacco and joj je bilo potrebno. Stoga se re{ila 1884. go- alcoholic beverages). For that reason, it decided in dine na uvo|ewe monopola na duvan, koji je za- 1884 to introduce a monopoly on tobacco, which ista zgodan artikl za monopolisawe. Ipak, was a convenient commodity for monopolization. ovoga puta nije uveden potpun, ve} delimi~an Yet, the monopoly which was introduced at that monopol stoga {to u tom trenutku niti je drà- point was not complete, but partial; the government va imala administrativnih kapaciteta da na had no administrative capacity to take up the organ- sebe preuzme organizaciju proizvodwe i trgo- ization of tobacco production and trade, on the one vine duvana, niti se pojavila strana grupa koja hand, while on the other, no foreign group emerged, bi taj posao preuzela na sebe. which would undertake to perform this job. U junu je Skup{tina donela zakon o trgovawu In June, the Assembly adopted a law on trade in duvanom, kojim je zamewen zakon o tro{arini tobacco, which supplanted the law on tobacco excise na duvan. Tro{arina se te{ko napla}ivala, tj. u duty. The excise duty was difficult to collect, that is, tehnologiji naplate nalazilo se dosta prostora the collection technology was leaving a lot of leeway za izbegavawe da`bine, pa je trebalo ne{to u~i- for tax avoidance, so something had to be done. As niti. Kako re~e jedan vladin poslanik, „kada bi one of the government appointed deputies said, “had postupali qudi po starom zakonu i ne bi people abided by the old law, and had they given to krijum~arili nego bi davali dràvi onu sumu the state the sum it requested, instead of being koju je traìla, onda ovaj zakon ne bi iza{ao”. engaged in smuggling, then this law would have Izvestilac Vuka{in Petrovi} tom prilikom never been passed”. Rapporteur Vukašin Petrovi} re~e: „dràvnim finansijama pruì}e ovaj said on that occasion: “as for public finances, this sistem daleko ve}a sredstva, bi}e, dakle, kao system will ensure much more resources, and as a izvor prihoda izda{niji od dosada{weg source of revenue it will be more generous than the na~ina optere}ewa duvana u na{oj zemqi. Eko- previous method of taxing tobacco in our country. nomna pak korist od ovog zakona bi}e u tome, The economic benefit from this law, on the other {to se proizvodwa ne ograni~ava i ne oteàva, hand, will come from the fact that the production

47 naprotiv ona ostaje slobodna”. Ovim prihodom will not be restricted or impeded, on the contrary, it bi se, tvrdio je Vuka{in Petrovi}, u buxetu will remain free”. This revenue would replace in the 1883/84. godine zamenio „prirez poreski, koji 1883/84 budget, claimed Petrovi}, “a surtax that bi daleko ja~e pao na teret narodu nego {to }e would have placed a much heavier burden on the pasti taksa na duvan, koju pla}aju samo oni {to shoulders of the people than the tobacco fee, which pu{e, dakle oni koji ho}e a ne moraju da pla- is paid only by those who smoke, hence those who }aju”. Proizvodwa i formirawe cena su ostali want, but are not obliged, to pay it”. The production slobodni, {to je Finansijski odbor skup{tine and pricing remained free, which the Financial ocenio veoma korisnim.* Me|utim, pravo trgo- Committee of the Assembly assessed as very useful.* vine preneto je u dr`avnu nadle`nost, koja je, However, the trading right was transferred into the opet, prepu{tala trgovinu zakupcima napla- competence of the government, which, for its part, }uju}i im takse za dozvolu za rad i za prodaju. Ta ceded the trade to lessees whom it charged fees for taksa, ili licenca, iznosila je jednokratno za operating and trading licenses. That fee, or license, trgovinu na veliko 300 dinara, za trgovinu na amounted to 300 dinars upfront and 30 dinars malo 100 dinara, a godi{we 30 i 10 dinara annually for wholesalers, while for retailers it was respektivno. Niko sem ovih ovla{}enih duvan- 100 dinars upfront and 10 dinars annually. Apart xija nije smeo prodavati duvan. from these authorized tobacconists, no one else was Pored pla}awa dozvole za rad, du}anxije su allowed to sell tobacco. pla}ale i taksu na duvan koji prodaju, {to je, u In addition to the amount they had to pay for stvari, bila tro{arina. Taksa, pla}ana taksenim operating licenses, tobacconists also paid a fee on markama, kretala se od 2 pare za 10 grama najjef- the tobacco they were selling, which, in fact, was tinijeg duvana do 30 para za 10 grama najskupqeg excise duty. The fee, paid by means of duty stamps, duvana, {to je prikazano u slede}oj tabeli: ranged between 2 paras per 10 grams of the cheapest tobacco and 30 paras for 10 grams of the most expensive tobacco, as presented in the table below:

Monopolska taksa (u parama za 10 grama) Monopoly fee (in paras per 10 grams)

cena duvana do 5 5–10 10–20 20–30 30–40 40+ price of tobacco to 5 taksa 2 4 10 15 20 30 fee

* SBNS za 1883, str. 1020 i 1021; ovu prednost * SBNS for the year 1883, pp. 1020 and 1021; this slobodne inicijative nad dr`avnom kontro- advantage of free initiative over government con- lom poslanici }e vrlo brzo zaboraviti kada trol was to be forgotten by the deputies very slede}e godine budu doneli novi zakon o potpu- quickly, when they passed a new law the following nom dr`avnom monopolu na duvan. year on full government monopoly on tobacco.

TRGOVA^KI MONOPOL IZ 1884. GODINE A na cigarete, bez obzira na veli~inu pakova- And on cigarettes, irrespective of the size of the wa, pla}a se taksa od 2 pare „od komada”, na cigare packaging, the fee amounting to 2 paras “from a 5 para po komadu i na burmut 5 para za 10 grama. piece” was levied, on cigars 5 paras per piece, and on Ukoliko bliè razmotrimo tarifnu poli- snuff 5 paras per 10 grams. tiku, lako }emo videti razlike u optere}ewu i If we take a closer look at tariff policy, we easily skokove na grani~nim cenama duvana. Prose~na notice differences in the levels of the tax burden, as stopa monopolske takse na duvan iznela je 64% well as leaps in the marginal tobacco prices. The aver- na neto cenu, a kretala se izme|u 44% za duvan od age rate of the tobacco monopoly fee was 64 percent 9 dinara za kilogram i 100% za duvan od 10 di- of the net price, with the rate ranging from 44 per- nara za kilogram. cent on the tobacco of 9 dinars per kilogram to 100 Radi ja~e kontrole i nadzora prometa duvana, percent on the tobacco of 10 dinars per kilogram. propisano je da se neprera|eni duvan ~uva u With a view to strengthening the control and magacinima koje dràva odredi, naravno i pri- supervision of the trade in tobacco, there was a vatnima, po{to bi wih bio mawi broj nego requirement to store unprocessed tobacco in ina~e, pa bi nadzorna vlast, verovalo se, bila u warehouses designated by the government for stawu da obavi svoj kontrolni posao. that purpose, including private ones, of course, Kazne za neovla{}eno trgovawe duvanom bile since that would limit their number and, as it was su drakonske i i{le su do 5 hiqada dinara, {to believed, enable the supervisory authorities to je tada bilo jedna polovina (visoke) godi{we perform their job. ministarske plate. Prilikom zamene nov~ane Fines for unauthorized tobacco trade were dra- kazne za zatvorsku (10 dinara za jedan dan zatvo- conian, going up to 5,000 dinars, which was half of ra), to je ~ak prelazilo 16 meseci. Nije pomoglo the (high) annual minister’s salary at that time. If zalagawe êdomiqa Mijatovi}a prilikom ras- the fine was converted into a prison term (at 10 prave u skup{tini da se one smawe, jer „mi smo dinars for a day of imprisonment), it exceeded 16 jo{ mlad narod, mi smo na putu kristalizacije”, months. To no avail was êdomilj Mijatovi}’s plead- pa qudi lak{e gre{e nego u drugim zemqama. ing in the parliamentary debate for lower fines, Odgovorio mu je izvestilac Petrovi} klasi~nim “because we are still a young nation, we are on the argumentima u korist o{trog ka`wavawa: road to crystallization”, so people err more easily „[titimo jednog ~oveka koji je ne samo jednog than in other countries. He received his reply from ~oveka, svog bli`weg pokrao no koji je pokrao dr- rapporteur Petrovi}, who used classic arguments in àvu i narod. Neka mu najstroì sud sudi i to favor of stringent punishments: “We are supposed nikada ne}e biti strogo no }e biti pravi~no i ja to protect a man who stole not only from one man, ne bih zazirao da ga stavim pod preki sud da mu his neighbor, but also from the state and the people. redovno sudi, jer onda bi dobili ono {to ho}e- Let him be tried by the strictest of all the courts and mo. Milosr|a nema krijum~arima i ja mislim da that will never be strict, but fair, and I would not }e skup{tina biti slo`na sa mnom da ne treba hesitate to court-martial such persons, because krijum~are ~uvati”. then we could achieve what we want to achieve. Problemati~no je bilo i re{ewe da te kazne There can be no mercy for smugglers and I believe izri~u sreske i okru`ne vlasti, dakle policij- the Assembly will agree with me that smugglers ske. Uzrok tome bila je te`wa za efikasno{}u, should receive no leniency”.

THE 1884 TRADE MONOPOLY jer, kako je rekao Vuka{in Petrovi}, „da se ove The arrangement according to which these sen- stvari sude po postupku sudskom oteglo bi se u tences were handed down by the county and district beskona~nost i ja ne znam koga time {titimo… authorities, meaning the police, was also problemat- [to da lopovu koji ho}e da krade ~inimo kom- ic. Underlying such an arrangement was the endeav- pliment i da ga sudu predajemo”. Aron Nin~i} je or to enhance efficiency, because, as put by Vukašin izrazio zebwu zbog predlo`ene kaznene politike Petrovi}, “if these matters were tried in judicial pro- i sugerisao da sudovi, „radi ve}e li~ne sigurno- ceedings that would drag on infinitely, and I do not sti”, sude ve}e duvanske krivice, ali bez uspeha. know who we are protecting by doing so…Why Podr{ka ovom zakonu dolazila je iz razli- should we do a favor to a thief who wants to steal by ~itih razloga. Tako je poslanik Veqko Jakovqe- handing him over to a court?” Aron Nin~i} vi} opet glasao u korist predloga zato {to od expressed his apprehension about the proposed 34 duvana „deca gube snagu”. penal policy and suggested that courts “for the sake of higher personal security”, try higher-profile tobacco cases, but to no avail. Kutija za duvan A tobacco box The reasons for supporting this law were different. Thus, deputy Veljko Jakovljevi} once again voted in favor of the proposal because tobacco caus- es “children to lose their strength”.34 The main change relative to the previously applicable law on tobacco excise duty was a significant increase in levies: while the old excise duty ranged between 40 paras and 6 dinars per kilogram of tobacco, the new monopoly fee reached amounts ranging from 2 to 30 dinars per kilogram, which was about five times more. The government coffers were in a crisis: reformist élan of the Progressivist government brought about a considerable rise in budget expenditure, while revenue was lagging behind. The introduction of a trade monopoly was an attempt to squeeze substantially more money from tobacco for public finances than before. Essentially, this law cannot be considered to be a law on the tobacco monopoly, despite its name, because there were hardly any substantive elements of a genuine monopoly in it. The state only collected fees on licenses for sold tobacco and fees on trade in tobacco. The former fee was not a characteristic of a monopoly, because the taxation of shops had existed before in Serbia, while the latter one on tobacco was nothing but excise duty. In a true monopoly

TRGOVA^KI MONOPOL IZ 1884. GODINE Glavna promena u odnosu na do tada vaè}i system, the state controls both the quantities and zakon o tro{arini na duvan bilo je bitno pove- prices of tobacco, thus vitally influencing all impor- }awe da`bina: dok je stara tro{arina iznosila tant factors of the business. However, in this law, od 40 para do 6 dinara po kilogramu duvana, the state only found a suitable manner to make dotle je nova monopolska taksa dostigla 2 do 30 tobacconists collect the taxes which tobacco is dinara po kilogramu, zna~i oko pet puta vi{e. expected to yield on its behalf. So, tobacconists were Dràvna blagajna je bila u krizi: reformski paying fees to the government, and recovering them elan napredwa~ke vlade doneo je znatno pove}a- from buyers through higher prices. we buxetskih rashoda, dok su prihodi kaskali za That was supposed to increase collection of rev- wima. Uvo|ewe trgova~kog monopola bio je poku- enue from tobacco, since it turned out that tobacco {aj da se od duvana iscedi znatno vi{e para za excise duty had a hard time reaching the public purse. fiskus nego do tada. In the debate on the tobacco monopoly, êdomilj U osnovi, ovaj se zakon ne moè smatrati za- Mijatovi} was giving assurances to the deputies that konom o monopolu na duvan, mada se tako zove, “with the tax law and the tobacco monopoly, I am jer u wemu te{ko da ima su{tinskih elemenata absolutely sure that Serbia has no reason for concern, pravog monopola. Dràva jedino ubira takse na that in the coming ten years it will have no need to licence za prodati duvan i takse na promet impose new taxes; on the contrary, it will cut the duvana. Prva taksa nije oznaka monopola, jer je existing ones”. Be it an illusion or a bluff, this allega- oporezivawe radwi i ranije postojalo u Srbi- tion was wrong, as it turned out soon after that. Mija- ji, dok je duvanska taksa obi~na tro{arina. U tovi} also correctly added that “this is not what it pravom monopolskom sistemu dràva kontro- should be, this is not yet a true tobacco monopoly, but li{e i koli~ine i cene duvana, dakle presudno I hope we shall be there soon”.35 uti~e na sve bitno za poslovawe. No, u ovom The state immediately issued a call for competi- zakonu, dràva je samo na{la pogodan na~in da tive bids for the lease of both wholesale and retail duvanxije, umesto we same, sakupe poreze koji trade, against the payment of a lease fee, which was se od duvana o~ekuju. Tako duvanxije pla}aju supposed to be public revenue. In the summer of dràvi takse, a wih prevaquju na kupce kroz 1884, auctions were held for the issuance of the pove}ane cene. right to collect revenue from tobacco to lessees. It Time je trebalo poboq{ati naplatu prihoda was an idea known for centuries: since government od duvana, po{to se pokazalo da tro{arina na agencies demonstrate poor capacity for collecting duvan te{ko ulazi u dràvnu kasu. Prilikom fiscal revenue, it would be wise to lease the collec- rasprave o duvanskom monopolu êdomiq Mija- tion of revenue to private persons, as they are more tovi} je uveravao poslanike da „sa zakonom o energetic than disinterested civil servants. Howev- porezi i monopolom na duvan, ja sam apsolutno er, things did not go very well with leasing, since the siguran da Srbija moè da bude spokojna, da od interest was modest and the attained levels of the sad pa za deset godina ne}e imati potrebe da za- lease fee in many districts were lower than what the vodi nove poreze, nego jo{ i da smawi ove”. Bila Ministry had expected. Thus in the district of Uìce zabluda ili blef, ova tvrdwa bila je pogre{na, three unsuccessful auctions were held – the highest kako se ubrzo pokazalo. Mijatovi} je ta~no dodao selling prices achieved in bidding were 35,000, i da ovo „nije ono {to bi trebalo da bude, ovo jo{ 52,000 and 62,000 dinars, while Vukašin Petrovi}

THE 1884 TRADE MONOPOLY nije pravi monopol duvana, ali ja se nadam da had expected 160,000 and was ready to accept 35 }emo do}i skoro do toga”. 100,000 dinars.36 Dràva je odmah raspisala konkurs za zakup In some districts, private lessees with the right i velikoprodaje i maloprodaje, uz pla}awe to collect revenue from tobacco duty stamps were zakupnine koja bi bila dràvni prihod. Tokom found – for example, a company from Kragujevac leta 1884. godine dràne su licitacije za izda- leased these rights for the districts of Kragujevac, vawe prava naplate prihoda od duvana zakupci- â~ak, Niš and Rudnik – while in other districts, ma. Bila je to ideja poznata vekovima: po{to where no agreement was reached with prospective dràvni organi pokazuju slabu sposobnost za lessees, the government itself performed these naplatu fiskalnih prihoda, dobro bi bilo izda- tasks. This is how it looked in the Vranje district: ti privatnicima ubirawe prihoda u zakup, “tobacco merchants keep their tobacco locked in po{to su oni agilniji nego slabo zainteresova- their storages, to which the keys are held by them ni dràvni ~inovnici. Me|utim, izdavawe u and by the local councils, because there is no con- zakup nije i{lo najboqe, po{to je interes bio venient building to keep all the tobacco, and they skroman i po{to su postignute zakupnine u mno- process it in a government building called “the met- gim okruzima bile mawe nego {to se u Ministar- ropolitanate”, with the processing being carried out stvu o~ekivalo. Tako su u uì~kom okrugu odrà- under the supervision of the controller, appointed ne tri neuspele licitacije – najvi{e izliciti- for that purpose. From the revenue raised on tobac- rane cene bile su 35, 52 i 62 hiqade dinara, a co – by selling tobacco stamps – the controller has Vuka{in Petrovi} je o~ekivao 160 hiqada i bio an annual salary amounting to 600 dinars, and in 36 spreman da prihvati 100 hiqada dinara. addition to that, he also has 3 percent of that rev- I tako, u nekim okruzima na|eni su privatni enue as a bonus”. Among tobacconists of that time zakupci prava ubirawa prihoda od taksenih mara- this law created confusion, or “apprehension” as ka na duvan – na primer, Kragujeva~ka kompanija they termed it mildly in their numerous complaints zakupila je ova prava u kragujeva~kom, ~a~anskom, to the Minister of Finance, in which they asked for ni{kom i rudni~kom okrugu – dok je u dugim okru- protection and guaranteed work.37 zima, u kojima nije postignut dogovor sa potenci- Of course, a new system of operation in the jalnim zakupcima, sama dràva vr{ila te poslo- tobacco trade, certainly less favorable for tobac- ve. Evo kako je to izgledalo u vrawskom okrugu: conists, prompted them to be resourceful and to try „duvanski trgovci svoj duvan drè u svojim maga- and bypass the monopoly and related costs. Some of zama pod kqu~em wihovim i na~elstva, jer nema them presented better tobacco as inferior and tried zgodne zgrade za sme{taj svega duvana, a prera|uju to pay a lower fee, others tried to avoid the levy by ga u dràvnoj zgradi, zvanoj „mitropolija”, i ta engaging in trade with other districts, the third prera|evina vr{i se pod nadzorom kontrolora, na group simply circumvented the monopoly and con- tu ceq postavqenog. Od prihoda od duvana – tinued with business as usual, secretively. Lessees prodatih duvanskih maraka – kontrolor ima godi- were this time on the side of the government, {we plate 600 dinara i, sem toga, na ime nagrade because retailers’ avoidance to observe monopoly ima od istog prihoda procenat 3%”. Me|u tada- regulations was detrimental to them as well. Thus {we du}anxije ovaj zakon uneo je pometwu, ili the Kragujevac company asked the Minister of „bojazan”, kako su sami ublaèno govorili u Finance to put an end to tobacco smuggling and

TRGOVA^KI MONOPOL IZ 1884. GODINE brojnim àlbama ministru finansija, traè}i suggested, in order to accomplish this objective, to 37 da budu za{ti}eni i da im posao bude obezbe|en. first make an inventory of all the tobacco held by Naravno, novi sistem rada u duvanskoj stru- tobacconists, so that their turnover could be con- ci, svakako mawe povoqan za duvanxije, izazivao trolled later on, and second, to seize the mortars and ih je na domi{qawe i poku{aje izvrdavawa knives “left behind”, in particular in the counties of monopola i sa wim povezanih tro{kova. Jedni su Leskovac and Vlasotince.38 prikazivali boqi duvan kao lo{iji i poku{ali The government understood the depth of the da plate mawu taksu, drugi su kroz trgovinu sa smuggling problem. As the Prime Minister and drugim okruzima poku{avali da se izvuku od Finance Minister Milutin Garašanin said: “I have da`bine, tre}i su jednostavno zaobilazili reports from many lessees that police officers do not monopol i nastavili da rade po starom, kriju}i supervise at all, or very superficially supervise, the se. Zakupci su ovoga puta bili na strani dràve, sale of tobacco in general. Furthermore, even in jer je izbegavawe monopolskih propisa od strane those cases where lessees have caught someone maloprodavaca i wima nanosilo {tetu. Tako je smuggling, selling tobacco without duty stamps, the Kragujeva~ka kompanija traìla od ministra police authorities… are negligent in investigating finansija da stane na put krijum~arewu duvana i such cases”, so he issued an order to the police to be predlagala da se u tom ciqu, prvo, popi{e sav more pro-active in the enforcement of law.39 duvan kod du}anxija kako bi se ubudu}e mogao The difficulties with tobacconists could still be kontrolisati wihov promet i, drugo, oduzmu solved in most of the cases, through stepped up con- „zaostav{i” avani i noèvi, a posebno u lesko- trols and fines, but it was tougher with farmers. 38 va~kom i vlasotina~kom srezu. Namely, a considerable tobacco price increase made Vlada je shvatala dubinu problema krujum~a- them cut back their purchases from tobacconists rewa. Kako re~e predsednik vlade i ministar and rely on themselves or turn to other farmers, i.e. finansija Milutin Gara{anin: „Imam izve{}a they either planted a couple of tobacco plants them- od mnogih zakupaca da policijske vlasti ili selves, for their personal use, or bought tobacco nikako ili vrlo slabo vode nadzor nad prodajom from their neighbors who planted more than they duvana uop{te. No, i u slu~ajevima kada zakupci needed for personal consumption. As once said by a uvate koga u krijum~arewu, da duvan bez marke big tobacco merchant and lessee for Belgrade and prodaje, vlasti policijske… nemarno vr{e isle- the district of Belgrade, Stojan Todorovi}: “after the |ewe”, pa je naredio ve}u aktivnost policije na passage of this tobacco law, he [farmer] is afraid 39 ~uvawu zakona. that smoking might cost him two or three times Te{ko}e sa du}anxijama su se, ipak, uglavnom more than before and that is why he has stopped mogle re{iti poja~anom kontrolom i kaznama, buying tobacco in towns and villages at tobac- ali je sa seqacima bilo teè. Naime, znatno po- conist’s and grocer’s, and switched to smoking his skupqewe duvana navelo ih je da smawe kupovine own product. It is well known that many a farmer od du}anxija i okrenu se sebi i drugim seqacima, here grows a bit of tobacco, and those farmers who tj. ili da sami zasade ne{to strukova, a za li~nu still have no tobacco buy it from farmers who do, upotrebu, ili da kupuju od svojih kom{ija koji su and then they cut it themselves and smoke”. Of zasadili vi{e nego za li~nu upotrebu. Kako re~e course, this was followed by bitter complaints that veliki trgovac duvanom i zakupac za Beograd i he himself had “almost no benefit from the entire

THE 1884 TRADE MONOPOLY beogradski okrug Stojan Todorovi}: „kako ovaj rural population in the district, and where the zakon o duvanu iza|e, on „seqak” se boji da ga pu{e- farmer – accordingly, the masses – takes no part in we staje 2 ili 3 puta skupqe no pre|e i zato on pre- the business, any result is poor, because urban peo- sta sa kupovinom duvana u varo{i i po selima kod ple – city slickers – are far fewer by comparison”. duvanxije i du}anxije, pa pre|e na pu{ewe svog Therefore he suggested to the Minister to take an proizvoda. Poznato je da mlogi na{ seqak proiz- inventory of all the tobacco held by farmers, for the vodi pone{to duvana, a oni seqaci koji ga i danas purposes of control40, which probably gave the nemaju kupuju duvan kod seqaka koji ga imaju i onda Minister a good laugh. ga sami seku i pu{e”. Naravno, tome je usledila A special problem for tobacconists was posed kukwava kako on sam nema „gotovo nikakve asne od by the fact that the monopoly fee was also levied on celog okru`nog selskog staleà, a gde seqak – the tobacco stocks already in their shops, which dakle masa – ne sudeluje u radu tu je svaki rezultat meant double taxation. Rapporteur Vukašin Petro- mr{av, jer varo{ana – kaputa{a – ima srazmerno vi} defended such an arrangement by claiming that mlogo mawe”. Pa je predloìo ministru popisiva- tobacconists would shift these double levies on 40 we duvana kod svakog seqaka, kontrole radi na smokers anyhow, so from the standpoint of the {ta se ovaj verovatno veselo nasmejao. tobacconist it was irrelevant, and from the stand- Poseban problem za du}anxije bila je ~iwe- point of the state useful, because a different nica da se monopolska taksa napla}uje i na zate- arrangement would be very difficult to implement ~eni duvan, {to zna~i dvostruko oporezivawe. administratively (“one would have to go in a per- Izvestilac Vuka{in Petrovi} branio je to son’s house and cause havoc”).41 Of course, Petro- re{ewe tvrdwom da }e duvanxije i tako i tako vi} was not right about this one, because tobac- prevaliti duple da`bine na pu{a~e, tako da je sa conists who had already had tobacco in stock were stanovi{ta duvanxije to nebitno, a sa stanovi- bound to fare worse than those who were to pro- {ta dràve korisno stoga {to bi druga~ije re- cure it under the new law without having to pay the {ewe bilo administrativno te{ko izvesti („mo- old excise duty. 41 ralo bi se ~oveku u}i u ku}u i ~udo na~initi”). Double taxation made Svetozar Spasi} (see pic- Naravno, Petrovi} ovde nije bio u pravu stoga ture) lodge an appeal with the Minister of Finance, {to }e du}anxije sa zate~enim duvanom svakako asking to be exempted from the new levy or to be at pro}i lo{ije od onih koji ga nabave pod novim least refunded the already paid charges. In a study zakonom i ne plate staru tro{arinu. of its kind he asserted that both science and justice Dvostruko oporezivawe navelo je Svetozara prohibited double taxation, and that for his 1,333 Spasi}a (videti sliku) da uputi àlbu mini- kg of Turkish tobacco he had previously already stru finansija traè}i da bude oslobo|en nove paid customs duties and the regal fee in the amount da`bine ili, bar, da mu se vrate ve} one pla}e- of 3,132 dinars, as well as tobacco excise duty in the ne. U pravom elaboratu tvrdio je da i nauka i amount of 2,975 dinars, and that he was supposed pravda zabrawuju oporezivawe dva puta, a on je to pay another 19,995 dinars of the monopoly fee ranije, za svojih 1.333 kg turskog duvana, ve} under the new Law. He also indicated that he would platio carinu i regal 3.132 dinara i tro{ari- not apply for the right to trade in tobacco under the nu 2.975 dinara, a da bi sada trebalo da plati new Law.42 His appeal was rejected as unlawful both jo{ 19.995 dinara monopolske takse. Najavio je by the Minister of Finance and the State Council.

TRGOVA^KI MONOPOL IZ 1884. GODINE The government soon realized that things were not going as planned. Already in the spring of 1885 it was assessed that it would be unrealistic to expect 2.2 million of revenue, as projected in the budget for the said year, but that only 1.6 million dinars could be collected. As early as 1884 Vukašin Petro- vi} started to think about a new law on the tobacco monopoly, which would increase the government revenue from the then 1.5 million to 4 million dinars a year. So Prime Minister Garašanin swung into action: in the spring of 1885, he initiated talks between êdomilj Mijatovi}, at that time Serbia’s Envoy in London, and Schenk from the Viennese Bankverein regarding the cession of the tobacco monopoly, under a law which the government intended to send to the parliament as soon as that same year. Bankverein was interested in making an offer, together with some German partners, to take over the monopoly, but it also wanted to obtain Reklama An advertisement some information first about the state of affairs and to send an expert who would examine the produc- i da se ne}e prijaviti za pravo trgovine duva- tion and consumption of tobacco and all other rele- nom po novom zakonu.42 Wegova àlba odbijena je vant circumstances on the ground in Serbia.43 i od ministra finansija i od Dràvnog saveta, However, the Serbian government was not negotiat- kao suprotna zakonu. ing only with Bankverein; it was also in contact with Vlada je ubrzo uvidela da se stvari ne odvi- Länderbank, which too was interested in taking jaju prema predvi|awima. Ve} u prole}e 1885. over the Serbian tobacco monopoly,44 since they godine procewivalo se da je nerealno o~ekivati perceived it as a good opportunity for a lucrative prihod od 2,2 miliona, kako je stajalo u buxetu business. There is no doubt that the course of za tu godinu, ve} da }e se dobiti samo 1,6 milio- events – Serbia’s war with Bulgaria – accelerated na dinara. Vuka{in Petrovi} je jo{ 1884. godi- the pace that led to the conclusion of an agreement ne po~eo da razmi{qa o novim zakonu o monopo- with Länderbank, under the new Monopoly Law. lu na duvan, kojim bi se dràvni prihod pove}ao It was obvious that the Progressivist govern- sa teku}ih 1,5 na 4 miliona dinara godi{we. I ment, being disappointed with the initial results of premijer Gara{anin je krenuo u akciju: u prole- the trade monopoly, decided to abandon it and }e 1885. godine inicirao je razgovore êdomiqa introduce a more “advanced” system, which was to Mijatovi}a, tada poslanika Srbije u Londonu, enable easier collection of projected revenue. How- sa [enkom iz be~kog Bankferajna oko ustupawa ever, the question remains whether that was a wise monopola duvana, a po zakonu koga vlada jo{ te solution or whether it would have been better if Ser- godine ima nameru da po{aqe u skup{tinu. bia had kept the trade monopoly. Namely, it was

THE 1884 TRADE MONOPOLY Bankferajn je bio zainteresovan da, zajedno sa logical for certain weaknesses at the initial stages of nekim nema~kim partnerima, iznese ponudu i the operation of this system to come to the fore, but preuzme monopol, ali je èleo da se prethodno they would have been eliminated in time, through obavesti o stawu stvari i po{aqe stru~waka ko- the improvement of work procedures and experi- ji bi ispitao proizvodwu i potro{wu duvana i ence gained by officials in the controlling authori- 43 sve ostale bitne okolnosti u samoj Srbiji. ties. The speed with which the government rid itself Ali, srpska vlada nije pregovarala samo sa of one tobacco taxation system and moved to anoth- Bankferajnom, ve} je bila u kontaktu i sa Len- er shows great distrust in the abilities of the public derbankom koja je, tako|e, bila zainteresovana administration and the possibility of its improve- 44 da preuzme srpski monopol duvana, vide}i tu ment on the one hand, and great trust in a positive jednu dobru priliku za zaradu. Nema sumwe da je outcome of the cooperation between the state and rat Srbije sa Bugarskom ubrzao tok doga|aja i do- the private lessee of the monopoly, on the other. veo do sklapawa ugovora sa Lenderbankom, a po novom zakonu o monopolu. O~igledno je da je napredwa~ka vlada, budu- }i razo~arana prvim rezultatima trgova~kog monopola, re{ila da ga napusti i uvede „na- predniji” sistem, koji omogu}uje lak{u naplatu planiranog prihoda. Me|utim, pitawe je da li je to bilo pametno re{ewe ili bi bilo boqe da je Srbija ostala sa trgova~kim monopolom. Nai- me, moè se verovati da su se u po~etku funkci- onisawa ovog sistema ispoqile slabosti koje bi se tokom vremena re{ile, a kroz usavr{avawe postupaka po kojima se radi i sticawe iskustva slu`benika u kontrolnim organima. Brzina kojom se vlada re{ila jednog sistema oporezivawa duvana i pre{la na drugi pokazuje veliko nepoverewe u sposobnosti dràvne administracije i mogu}nost wenog popravqawa, sa jedne, i veliko poverewe u pozitivan ishod saradwe dràve sa privatnim zakupcem monopola, sa druge strane.

TRGOVA^KI MONOPOL IZ 1884. GODINE Potpuni monopol iz 1885. godine

THE 1885 FULL MONOPOLY

Ratni zajam na osnovu duvana War Loan on the Basis of Tobacco oliti~ki zaplet doveo je septembra 1885. political imbroglio brought Serbia on the verge Pgodine Srbiju pred rat sa Bugarskom. Povod Aof a war with Bulgaria in September, 1885. It je bilo ujediwewe kneèvine Bugarske sa Isto~- was triggered by the unification of the Principality nom Rumelijom, a uzrok borba za prevlast na of Bulgaria with Eastern Rumelia, but the real rea- ovom delu Balkana. son was the struggle for domination in this part of Kao i devet godina ranije, pred ratove sa the Balkans. Turcima, vlast je u Srbiji bila iznena|ena raz- Like nine years before, prior to the wars with vojem doga|aja i ponovo je dràvna blagajna bila Turks, the course of events once again took the prazna – u woj se nalazilo samo 60 hiqada dina- authorities in Serbia by surprise, and once again the ra, prema re~ima ministra finansija Vuka{ina public purse was empty – a mere 60,000 dinars were Petrovi}a. Na wegovu àlopojku, kao i na bojazan in it, according to Finance Minister Vukašin Petro- da }e se zajam morati uzeti pod nepovoqnim vi}. His laments, as well as the fears that it would be uslovima, kraq Milan je reagovao jednostavnim unavoidable to take out a loan on unfavorable „ko mari za uslove. Na|ite vi samo para, pa ma terms, were dismissed by King Milan, who simply pod kakvim bilo uslovima”. Kraq je od ministra said: “Who cares about the terms? Just find the finansija traìo za rat 10 do 12 miliona dina- money, on any term”. The King requested 10 to 12 ra, predsednik vlade Gara{anin 20 do 25, {to je million dinars for the war from the Finance Minis- Petrovi} utvrdio na 25, s tim da se pola potro- ter. Prime Minister Garašanin requested 20 to 25, 45 {i na rat a pola na druge dràvne potrebe. which Petrovi} fixed at 25, with half of the sum Napredwaci su dobro pamtili politi~ke i being spent on the war and half on other needs of finansijske nevoqe u koje su i srpska dràva i the country.45 liberalska vlada upale za vreme i posle ratova The Progressists vividly remembered political sa Turcima zbog nesta{ice novca, rekvizicija, and financial troubles in which both the Serbian kupovina na po~ek, potro{enih privatnih depo- state and the Liberal government had found them- zita, nepla}awa interesa i sli~nih jada i nika- selves during and after the wars with Turks, due to ko nisu hteli da ih ponove tokom predstoje}eg the scarcity of money, requisitions, purchases with

57 Kraq Milan Obrenovi} King Milan Obrenovi} rata. Iako se pretpostavqalo da }e se rat sa bu- deferred payment, spent private deposits, non-pay- garskim ba{tovanxijama, kako su ih juna~ki Sr- ment of interest and similar tribulations, and they bi zvali, pretvoriti u {etwu do Sofije,* ipak je did not intend to see it happen again in the forth- trebalo dosta novca za mobilizaciju i tro{kove coming war. Although it was generally assumed that intendanture. the war with Bulgarian gardeners, as the virile Serbs Srbija je tada bila u vrlo prijateqskim od- called them, would turn into a walk to Sofia,* a con- nosima sa Austrougarskom, ~ak je predstavqala siderable amount of money was still needed for deo wene interesne sfere, tako da se s razlogom mobilization and costs of the supplies. moglo verovati u povoqan ishod. 11. septembra At that time, Serbia was in very friendly rela- 1885. godine ministar finansija Vuka{in tions with Austria-Hungary, even constituted part Petrovi} poslan je u Be~ da pregovara o zajmu od of its sphere of influence, hence one had every rea- efektivnih 25 miliona dinara i isto ve~e se son to believe in a positive outcome. On 11 Septem- sastao sa direktorom Lenderbanke Hanom. ber 1885, Finance Minister Vukašin Petrovi} was Ministri spoqnih poslova i finansija Austro- sent to Vienna to negotiate a loan worth 25 million ugarske Kalnoki i Kalaj pomogli su zajam i Len- dinars in cash and on the same evening he met with derbanka je tri dana kasnije, 14. septembra, odo- Länderbank’s General Manager Hahn. Austria- brila kredit sa kursom 62,5% i kamatnom sto- Hungary’s Ministers of Foreign Affairs and Finance pom od 5%. Istoga dana je u Beograd poslato pr- Kalnoky and Kallay, respectively, had supported the vih 2 miliona dinara za najhitnije potrebe. loan and Länderbank approved it 3 days later, on 14 Ostalo je pitawe da li }e srpska skup{tina September, with a price of discount of 37.5 percent praviti probleme oko zajma i prate}ih uslova. and an interest rate of 5 percent. On the same day, Prvo je trebalo, krajem septembra, pro}i ve- the first 2 million was sent to Belgrade, for the most liki skup{tinski odbor od 21 ~lana, kojim je urgent needs. predsedavao nezgodni Milan Piro}anac, tada The question remained whether the Serbian predsednik Napredne stranke. Kako su ti uslo- Assembly would make problems because of the loan vi bili prili~no lo{i, usuraire po Piro}ancu, and terms of borrowing. The first step that had to be vlada je izjavila da po boqim uslovima novac made, scheduled for late September, was passing ne mo`e na}i i najavila ostavku ukoliko skup- the loan through a large parliamentary committee {tina ne izglasa zakon o zajmu. Tako je Gara{a- comprising 21 members, chaired by troublesome nin zaigrao na sigurno, znaju}i da je pretwa Milan Piro}anac, the then President of the Progres- ostavkom neminovan pogodak. Niko od poslani- sive Party. Since these terms were quite bad, ka nije imao hrabrosti da se u predve~erje rata usuraire (usurious) according to Piro}anac, the gov- i u vreme mobilizacije suprotstavi zajmu. I ernment said that it could not find the money on zaista, ratne prilike obi~no nisu najpovoqnije more favorable terms and threatened to resign if the vreme za velike politi~ke promene i, posebno, Assembly failed to vote for a law on the loan. za promenu vlade. Garašanin thus decided to play it safe, aware that

* Kraq Milan je rekao da misli „da }emo za 7 * King Milan said that he thought we would “be dana biti sa Bugarima gotovi”, V. Petrovi} – done with the Bulgarians in 7 days”, V. Petrovi} – Memoari, str. 30. Memoirs, p. 30.

THE 1885 FULL MONOPOLY threatening with a resignation was a full hit. There was no deputy who had the courage to oppose the loan on the eve of the war and at times of mobilization. And in fact, war circumstances are typically not the best of times for major political changes and, in particular, for changing the government. The law of 22 September 1885 authorized the Minister to conclude an agreement on a loan worth up to 25 million dinars, which was to be “used primarily for the protection and upholding of the interests of the country”. The agreement with Län- derbank and Comptoir d’Escompte of Paris, as the second creditor, was signed on 25 September for 40 million dinars in nominal terms and with an interest rate of 5 percent. Since for the banks it was an option loan (it took some time to sell Serbian government bonds on western markets, and one also waited for the war to end and for Serbia’s credit rating to improve), while Serbia needed the money urgently, the agreement provided for an advance to the Serbian government in the amount of 12.5 million dinars, which was disbursed within three months (4 disbursements of 3, that is, 3.25 million). The banks did not have much confidence in the Milutin Gara{anin Milutin Gara{anin ability of the Serbian state to regularly repay installments of its debts, so once again certain fiscal rev- Zakonom od 22. septembra 1885. godine ovla- enue served as collateral for repayment of the loan – {}en je ministar da zakqu~i ugovor o zajmu od from the newly established government monopoly najvi{e 25 miliona dinara, koji se ima „upotre- on tobacco. Other fiscal revenues, which could have biti prvenstveno na za{titu i odràvawe inte- been put up as collateral, were basically already resa zemaqskih”. Ugovor sa Lenderbankom i Kon- used for earlier loans. For all practical purposes, the toarom za eskont iz Pariza, kao drugim kredito- only non-collateralized revenue was the direct tax, rom, potpisan je 25. septembra na nominalnih 40 but the lenders did not want to accept it anyhow, miliona dinara i kamatnom stopom od 5%. because of the possibility of its underperformance Kako je zajam za banke bio opcijski (trebalo in lean years. je vremena za plasman srpskih dràvnih obve- This was one of the most unfavorable loans the znica na zapadnim trì{tima, a i ~ekao se za- Serbian state has ever taken out from foreign banks, vr{etak rata i poboq{awe srpskog kreditnog but it is difficult to conclude a good loan agreement ugleda), a Srbiji je novac hitno bio potreban, in times of war – needs are urgent, and lenders are

POTPUNI MONOPOL IZ 1885. GODINE ugovorom je obezbe|ena privremena pozajmica naturally prone to take advantage of the situation, as vladi Srbije od 12,5 miliona dinara, koja je sta- well as to count in the risks that war carries. For vqena na raspolagawe u roku od tri meseca (4 is- example, Serbia’s defeat in the war and its obligation plate od po 3 odnosno 3,25 miliona). to pay considerable reparations to Bulgaria, the ter- Banke nisu previ{e verovale u sposobnosti mination of its existence as an independent state, srpske dràve da redovno otpla}uje anuitete na the shrinking of its territory and economic power, a svoje dugove, pa je i ovog puta kao garancija za change of regime and policies as a consequence of otplatu zajma posluìo jedan siguran fiskal- the war, would have been, in all probability, very ni prihod – od novoustanovqenog dràvnog mo- troublesome for the creditor to recover the lent nopola na duvan. Druge mogu}e zaloge, na fi- amount, which all induced him to ask for better skalne prihode, bile su uglavnom ve} zauzete terms in advance. Serbia was in favor with the Aus- ranijim zajmovima. Nezaloèn je prakti~no je- tro-Hungarian government – otherwise there would dino bio neposredni porez, ali wega zajmodav- have been no loan in the first place – but the Austro- ci nisu ni hteli da prime, jer moè podbaciti Hungarian government did not meddle in the issues u nerodnim godinama. of the issue price and interest rates, allowing Län- Bio je ovo jedan od najnepovoqnijih zajmova derbank to rip Serbia off. koje je srpska dràva sklopila sa stranim bankama, ali je u vreme ratova te{ko sklopiti povoqan zajam – potrebe su bile urgentne, a zajmodavci Law on Monopoly and Lease Agreement prirodno skloni da iskoriste situaciju, kao i da The flip side of the loan agreement was the estab- ukalkuli{u rizik koji rat sa sobom nosi. Na lishment of a full tobacco monopoly and its lease to primer, ukoliko bi Srbija izgubila rat i bila the financial institutions which provided the loan. prisiqena da pla}a velike reparacije Bugarskoj, Namely, on the same day the Law on the Loan was ukoliko bi prestala da postoji kao nezavisna dr- adopted, 22 September 1885, a new law on the àva, ukoliko bi joj teritorija i ekonomska snaga tobacco monopoly was passed by the Assembly.* bile smawene, ukoliko bi rat doveo do promene While the old law from the previous year had estab- reìma i politike kreditor bi, verovatno, lished the government monopoly only on trade in morao da se pomu~i sa naplatom datog zajma, {to tobacco, this new one expanded it to include pro- ga navodi da unapred traì povoqnije uslove. cessing, exports and imports. As it is normal with a Austrougarska vlada bila je naklowena Srbiji, u true monopoly, the government wanted to collect, protivnom zajma ne bi ni bilo, ali se nije mnogo in addition to the excise duty, also commercial and me{ala u pitawa kursa i kamatnih stopa, dozvo- entrepreneurial earnings. An important reason for qavaju}i Lenderbanci da o{i{a Srbiju. the introduction of a monopoly is technical, tax- related: it makes it much easier to collect fiscal rev- Zakon o monopolu i ugovor o zakupu enue than if you do it by means of excise duty. Nali~je ugovora o zajmu bilo je ustanovqavawe potpunog monopola duvana i wegovo izdavawe * The speed with which the law was prepared and adopted confirms that the government had draft- finansijskim institucijama koje su obezbedile ed it even before the war, for the purposes of the zajam. Naime, istoga dana kada je usvojen zakon o mentioned negotiations with Bankverein.

THE 1885 FULL MONOPOLY zajmu, 22. septembra 1885. godine, izglasan je u While in the case of excise duty the tax administra- Skup{tini novi zakon o duvanskom monopolu.* tion has to deal with a large number of merchants Dok je stari iz prethodne godine uspostavqao who are only looking for ways to avoid the payment samo dràvni monopol na trgovinu duvanom, ovaj of duties, in the case of a monopoly there is only one novi je to pro{irivao i na preradu, izvoz i uvoz. merchant, if the monopoly is leased to a private Kako je kod pravog monopola uobi~ajeno, dràva businessmen, or none, if the government has kept je èlela da naplati, pored tro{arine, i trgo- the monopoly to itself. va~ku i preduzetni~ku dobit. Vaàn razlog The law prescribed that the government would uvo|ewa monopola je poresko-tehni~ki: wime se issue licenses for the production of tobacco, organ- daleko lak{e napla}uje fiskalni prihod nego ize public warehouses, set purchase and retail kroz tro{arinu. Dok tamo poreska uprava ima po- prices, and lease the trade. The system, from the sla sa velikim brojem trgovaca, koji samo gledaju production side, was as follows: interested farmers kako da izbegnu pla}awe da`bina, dotle ovde, kod would file applications in the course of September, monopola, postoji samo jedan trgovac, ukoliko je indicating how much tobacco they wanted to plant monopol izdat privatniku u zakup, ili nijedan, and of which quality. The Finance Minister was ukoliko dràva sama drì monopol. obliged to give priority to those who were already Zakon je propisivao da }e dràva izdavati growing tobacco, who had no prior convictions, who dozvole za proizvodwu duvana, organizovati could prove within three years that they were able dràvna skladi{ta, odre|ivati otkupne i malo- to produce tobacco of a better quality and who prodajne cene, a samu trgovinu davati u zakup. applied for at least five thousand stems, then to the Sistem je, sa proizvodne strane, bio slede}i: counties which applied for at least 5 hectares and zainteresovani seqaci podnosili su molbe za municipalities which applied for the planting of at odobrewe tokom septembra, navode}i koliko i least 15,000 plants. A grower was not allowed to kakvog duvana èle da posade. Ministar finan- plant more than he had been permitted by the Min- sija bio je duàn da prvenstvo da onima koji se ister, he was responsible for the delivery of each ve} bave sa|ewem duvana, koji nisu osu|ivani, tobacco stem and leaf to the government monopoly koji u roku od tri godine dokaù da mogu da pro- (they had to report missing stems to the tobacco izvode kvalitetniji duvan i koji prijave najmawe guard so that a note could be drawn up) and he had 5 hiqada strukova, zatim srezovima koji prijave to plant tobacco in regular rows, without combina- najmawe 5 hektara i op{tinama koje prijave sa|e- tions with other plants. we najmawe 15 hiqada strukova. Sa druge strane, The price of tobacco was to be fixed every three uzgajiva~ nije smeo da zasadi vi{e nego {to mu je years, jointly by the ministers of finance and the dozvoqeno od strane ministra, odgovoran je za national economy, without any reductions, while tak- isporuku svakog struka i svakog lista duvana ing into account the tobacco variety (six in total), pro- dràvnom monopolu (nestale strukove mora da duction costs, the hitherto price and purchase prices in other countries. The minimum purchase price could not be lower than 1 dinar per kilogram, while * Brzina kojom je pripremqen i usvojen zakon potvr|uje da je jo{ pre rata vlada uradila the selling price was limited to not more than 24 nacrt, a vezano za pomenute pregovore sa dinars for domestic and 50 dinars for a kilogram of Bankferajnom. imported tobacco. The law also set forth a method for

POTPUNI MONOPOL IZ 1885. GODINE prijavi duvanskom stra`aru kako bi se sa~inila the sale of processed tobacco: one “big middle man” zabele{ka) i mora da sadi duvan u pravilnim re- for each district, with a larger number of “small-scale dovima, a bez me{awa sa drugim biqem. middle men” in districts, covering each village or each Cenu duvana odre|iva}e na tri godine zajed- part of a town. The processing was to be performed in no ministri finansija i narodne privrede, bez state-owned factories. smawivawa, a imaju}i u vidu sortu duvana ({est The envisaged fines for smugglers ranged na broju), tro{kove proizvodwe, dotada{wu between 100 and 500 dinars, plus on each smuggled cenu i otkupnu cenu u drugim zemqama. Najni`a kilogram – 30 for tobacco, 50 for cigarettes and 100 otkupna cena nije smela biti mawa od 1 dinara for cigars and snuff. po kilogramu, dok je prodajna ograni~ena na Most importantly, article 63 of the Law author- najvi{e 24 dinara za doma}i i 50 dinara po ized the government to assign its monopoly rights to

Mu{tikla A cigarette holder

kilogramu za uvozni duvan. Zakonom je predvi- a private entrepreneur or a company. The lease |en i na~in prodaje prera|enog duvana: po jedan period was fixed at 50 years, with the right of the „veliki preprodavac” za svaki okrug, a u okruzi- state to terminate the agreement after 25 years ma ve}i broj „sitnih preprodavaca”, a u svakom without any compensation. The lessee had to under- selu ili kvartu u varo{i. Prerada se imala take to pay “all presently existing customs duties” obavqati u dràvnim fabrikama. on imported tobacco, but no direct taxes, then to, Za krijum~are su predvi|ene kazne od 100 “in the shortest possible period of time, build a do 500 dinara, plus od krijum~arenog kilogra- tobacco processing plant and warehouses for storing ma – 30 za duvan, 50 za cigarete i 100 za cigare it, wherever it is necessary”, “to purchase all the i burmut. tobacco found in the country at the point of his Najva`nije, ~lanom 63 zakona ovla{}ena je assumption of the right to the monopoly” and to vlada da moè svoja monopolska prava ustupiti “inform the Minister of Finance, not later than July privatnom preduzima~u ili nekom dru{tvu. Rok each year, how much tobacco he would need for the zakupa je predvi|en na 50 godina, s tim da drà- coming year, so that the Minister can issue va ima prava da posle 25 godina raskine ugovor approvals for the sowing of tobacco on that basis”.46 bez naknade. Zakupac se morao obavezati da The government never really intended to organ- pla}a na uvozni duvan „sve sad postoje}e carin- ize and hold the tobacco monopoly on its own, since ske takse”, ali ne i neposredne poreze, zatim da that would have been too overwhelming for its }e „u najkra}em roku podi}i fabriku za preradu administrative capacities and budget abilities at

THE 1885 FULL MONOPOLY duvana i magacine za sme{taj istih, svuda gde je that time. Instead, it intended to rent the monopoly potrebno”, „da otkupi sav duvan {to se zate~e u to a foreign company. êdomilj Mijatovi} expressed zemqi kad stupi u pravo uìvawa monopola” i that on another occasion by saying that it was better „da najdaqe u mesecu julu saop{ti ministru for the state to just have a share in the profit and finansija koliko }e trebati duvana za idu}u avoid a headache over the appointment of civil ser- godinu, te da prema tome ministar izda i odo- vants, administering the monopoly and a large 46 brewa za sejawe duvana”. number of detailed jobs. He also cited another rea- Vlada nije ni nameravala da sama organizu- son which tells a lot about the mindset of politi- je i drì monopol duvana, po{to bi to prevazi- cians: “I do not know whether we, guided by politi- {lo wene tada{we administrativne sposobno- cal considerations and a wish to keep our friends sti i buxetske mogu}nosti, ve} je nameravala da happy, could have as much profits as a company monopol iznajmi jednom stranom dru{tvu. which is guided exclusively by commercial inter- êdomiq Mijatovi} je to jednom drugom prili- est”.47 He was right – it was better to keep local don- kom izrazio rekav{i da je boqe da dràva samo keys away from the carrot – but the problem lay in u~estvuje u dobiti i da nema glavoboqe oko po- the fact that not even the foreign donkey was well- stavqawa ~inovnika, vo|ewa administracije i intended. It, too, was trying to eat all the carrots, to ~itave gomile detaqnih poslova. Naveo je i the detriment of the Serbian state. jedan drugi razlog koji dosta govori o na{im On 16 October 1885 an agreement was conclud- politi~kim naravima: „ja ne znam da li bi mi, ed on the lease of the tobacco monopoly with Comp- koji bi tako bili rukovo|eni politi~kim obzi- toir National and Länderbank, to which the Finance rima i da zadovoqimo na{e prijateqe, mogli Minister assigned the exclusive right to process, imati tolike dobiti koliko moè imati jedno import, export and sell tobacco and tobacco prod- dru{tvo koje se rukovodi samo trgova~kim inte- ucts in the country for a period of 50 years. It was 47 resom”. Imao je pravo – boqe je bilo dràti not at all surprising that the monopoly was ceded to doma}e ma~ke daqe od ka{e – ali je problem bio the banks which had granted the war loan to Serbia to {to ni strana ma~ka nije bila dobronamer- – it was a package deal between Serbia and Länder- na. I ona je poku{avala da pojede svu ka{u, a na bank and Comptoir, and the resumption of the {tetu srpske dràve. above mentioned negotiations from before the war. 16. oktobra 1885. godine zakqu~en je ugovor o The banks set up an enterprise named Company for zakupu duvanskog monopola sa Narodnim kontoa- the Tobacco Monopoly Lease in Serbia. rom i Lenderbankom, kojima je ministar finan- The contracting parties undertook to draw up a sija prepustio iskqu~ivo pravo prerade, uvoza, “List of Terms and Conditions” within six months, izvoza i prodaje duvana i duvanskih prera|evina which would constitute part of the Agreement, gov- u zemqi na 50 godina. Nije nimalo ~udno da je erning minimum and maximum prices of monopol prepu{ten bankama koje su Srbiji dale unprocessed and processed tobacco. Under the ratni zajam – bio je to vezan posao Srbije sa Len- Agreement, for the first five-year period, the lease derbankom i Kontoarom i nastavak ve} pomenu- fee for the tobacco monopoly amounted to 2.25 mil- tih pregovora od pre rata. Banke su formirale lion a year, for the second five-year period 2.5 mil- preduze}e ~iji je naziv bio Dru{tvo za zakup lion a year and for the third five-year period 2.75 monopola duvana u Srbiji. million a year, while for the remaining 35 years the

POTPUNI MONOPOL IZ 1885. GODINE Ugovorne strane su se obavezale da za 6 mese- amount was 3 million dinars a year. Furthermore, it ci sa~ine jedan „pogodbenik”, koji }e predsta- was agreed that the government’s share in the net vqati deo ugovora, a kojim }e se urediti mini- profits from the monopoly should be 15 percent in malne i maksimalne cene neprera|enog i prera- the first five-year period, 20 percent in the second, |enog duvana. Po ugovoru, za prvo petogodi{te za- 25 percent in the third, 30 percent in the fourth kupnina duvanskog monopola iznosila je 2,25 five-year period and 33.3 percent in the remaining miliona godi{we, za drugo petogodi{te 2,5 mi- 30 years. The Serbian government reserved the liona godi{we, za tre}e petogodi{te 2,75 mili- right to terminate the Agreement after 25 years ona godi{we i za preostalih 35 godina 3 milio- without paying damages, while the lessees were na dinara godi{we. Pored toga, ugovoreno je da entitled to the termination of the Agreement only in vlada u~estvuje u ~istoj dobiti monopola u pr- the first 10 years. The lessee paid 500,000 dinars as vom petogodi{tu sa 15%, u drugom 20%, u tre}em caution money. 25%, u ~etvrtom 30% i za ostalih 30 godina sa All the laws, including this one on the tobacco 33,3%. Srpska vlada zadràla je pravo da raski- monopoly, were first reviewed by a large parliamen- ne ugovor posle 25 godina bez pla}awa {tete, dok tary committee chaired by Piro}anac and su zakupci imali pravo da raskinu ugovor samo Novakovi}. They were not at all satisfied with the tokom prvih 10 godina. Zakupac je poloìo kau- Agreement because, according to their assessment, ciju od 500 hiqada dinara. the tobacco monopoly was leased for too little Prethodno je sve zakone, pa i ovaj o monopolu money (for 2.25 million, although it was worth, in duvana, pregledao veliki skup{tinski odbor na their opinion, 5–6 million a year), but they were ~ijem su ~elu bili Piro}anac i Novakovi}. Ugo- aware of the fact that Serbia “needed the money at vorom nikako nisu bili zadovoqni, jer su proce- any cost”. They hoped that the situation could be wivali da se monopol duvana ustupa prejeftino fixed at some later stage, arguing at the same time (za 2,25 miliona iako vredi, mislili su, 5-6 mi- that tobacco was not bread and that people could do liona godi{we), ali su shvatali da Srbiji „tre- without it. And if Serbia won, who would raise this ba para po {to po to”. Nadali su se da }e se ka- issue anyway.48 And the law was smoothly pushed snije mo}i popraviti situacija, ali i uveravali through the Assembly. da duvan nije lebac i da se bez wega moè. A ako The new law on the tobacco monopoly was 48 Srbija pobedi, ko }e praviti pitawe od toga. I scheduled to enter into force on 22 December 1885, zakon je bez te{ko}a pro{ao kroz skup{tinu. but the war with the Bulgarians and wrangling with Novi zakon o monopolu duvana trebalo je da the foreign lessees caused certain delays, so Minis- stupi na snagu 22. decembra 1885. godine, ali su ter Petrovi} issued an order to continue applying rat sa Bugarima i natezawa sa stranim zakupci- the old law “pending my second order”.49 ma doveli do izvesnog odlagawa, pa je ministar However, the matter with the lessees was not Petrovi} naredio da se i nadaqe primewuje sta- settled yet. The creditor banks understood very 49 ri zakon „do moje druge naredbe”. well the gravity of Serbia’s financial position in No, stvar sa zakupcima jo{ nije bila gotova. late 1885, as well as the opportunities it opened for Banke poverioci shvatile su dobro teìnu fi- them. Länderbank’s Director Hahn claimed that nansijskog poloàja Srbije krajem 1885. godine, he did not believe that the French part of the kao i mogu}nosti koje im to pruà. Direktor group would accept the realization of the option,

THE 1885 FULL MONOPOLY Lenderbanke Han tvrdio je da ne veruje da }e i.e. the second half of the part of the loan in the francuski deo grupe prihvatiti realizaciju amount of 25 million, because the terms of the opcije, odnosno druge polovine dela zajma od 25 tobacco monopoly were unfavorable for the miliona, jer su uslovi monopola duvana nepo- lessees. And a Länderbank representative, Mr. voqni za zakupce. A predstavnik Lenderbanke Rappapor, was trying to convince his Serbian Rapapor ube|ivao je sredinom decembra srpske interlocutors in mid-December that it was not easy sagovornike kako u tada{wim prilikama nije in the then circumstances to find money solely on lako na}i novac samo na osnovu kreditnog ugleda the basis of Serbia’s credit rating, and that a com- Srbije i kako bi trebalo {to pre obrazovati dru- pany should be established as soon as possible to {tvo kome bi se ustupio srpski duvanski mono- which the Serbian tobacco monopoly would be pol, {to je bilo po~etak ucene. Da bi Lenderban- assigned, which was the beginning of blackmail. In ka pristala da u~estvuje u srpskom monopolu order for Länderbank to accept to participate in duvana, predlagao je da se izmene i zakon i the Serbian tobacco monopoly, he suggested ugovor izme|u Lenderbanke i srpske vlade, po- amending both the law and the agreement between {to su postoje}i vi{e strate{ke nego komerci- Länderbank and the Serbian government, since jalne prirode. „Sledovatelno, ni zajam ceo ne the existing ones were more of a strategic, than mo`e Lenderbanka na sebe da primi, ako se vlada commercial nature. ”Consequently, Länderbank ne bi obavezala jo{ danas da }e tra`iti od Skup- cannot assume the obligation to extend the entire {tine” promenu minimalne cene duvana od 1 di- loan, unless the government undertakes as early as nara za najslabiju vrstu duvana i oslobo|ewe mo- today to ask the Assembly” to change the mini- nopolskog dru{tva od „pla}awa uvoznog danka ”, mum tobacco price of 1 dinar for the most inferior 50 tj. regalne takse. I delimi~no je uspeo, pa je kind of tobacco and to exempt the monopoly com- monopolsko dru{tvo oslobo|eno regala na uvo- pany from the “payment of the import duty”, i.e. zni duvan, ali je cena najlo{ijeg duvana ostala the regal fee.50 He succeeded in part: the monop- visokih 1 dinar po kilogramu. oly company was exempted from the payment of Pogodbenikom od 6. januara 1886. utvr|ene su the regal fee on imported tobacco, but the price of cene „za kupovinu zemaqskog duvana” za prve tri the lowest quality tobacco remained at the high godine, dok su prodajne cene prepu{tene zakup- level of 1 dinar per kilogram. cu, a u granicama odredbe iz ugovora. Otkupne The List of Terms and Conditions of 6 January cene utvr|ene su na 1 do 2–3 din/kg po {est kate- 1886 defined the prices for the “purchase of local- 51 gorija kvaliteta. Kasnije se pojavio i duvan ly-produced tobacco” for the first three years, ispod {este kategorije, tzv. {kart, koji je bio while the selling prices were left to the lessee, ili nezreo ili te{ko o{te}en i koji se otkupqi- though within the price band specified in a provi- vao ukoliko ga je mogu}e ma i delimi~no upo- sion of the Agreement. The purchase prices were trebiti u preradi duvana; cena mu je utvr|ivana set at 1 to 2–3 din/kg, divided into six quality cate- ve{ta~ewem. Ovo }e biti, pokazalo se vremenom, gories. Later on,51 a class of tobacco appeared, va`na kategorija duvana u Srbiji, a svakako je which was lower than the sixth category, the so- predstavqala ustupak Lenderbanci, odnosno called discard, which was either unripe or severely zaobilazan na~in da se smawi cena najslabijeg damaged and which was purchased provided that duvana sa 1 dinar po kilogramu. U skup{tini su it was possible to use in tobacco processing at least

POTPUNI MONOPOL IZ 1885. GODINE partially; the price of such tobacco was fixed in expert evaluation. This was going to become an important category of tobacco in Serbia, as it turned out, and it certainly constituted a concession to Länderbank, i.e. an indirect way to reduce the price of the poorest quality tobacco below 1 dinar per kilogram. In the Assembly, the Radicals were attacking the purchase prices as too low, leading to Serbian tobacco growers’ ruin, and generating huge profits for the lessees of the monopoly, which was their usual exaggeration. The selling prices of tobacco were set at 7 to 21 dinars per kilogram. The rumor of 15 April 1886 that êdomilj Mijatovi} “was working on the termination of the Agreement on the tobacco monopoly” testifies to the fact that things were not going so smoothly. Logotip Kraqevske srpske uprave duvana Mijatovi} himself said later that it had been his A logotype of the Serbian Royal Tobacco Monopoly duty as minister either to try and “fix the Agree- ment” or to “restore the monopoly to the govern- nabavne cene napadane od strane radikala kao ment’s hands.” Moreover, he “suggested to the preniske, koje }e srpske uzgajiva~e duvana dove- company to transfer the monopoly back” even sti do propasti, a zakupce monopola do ogromne “before the actual transactions”, but the company dobiti, {to je bilo wihovo uobi~ajeno preteri- did not agree to that. It was obvious that the Ser- vawe. Prodajne cene duvana utvr|ene su na 7 do 21 bian side was not too happy about the transfer of dinar po kilogramu. the monopoly under the pressure of financial Da sve nije teklo glatko svedo~i i glas od 15. needs for the war with Bulgaria, and that it aprila 1886. godine da êdomiq Mijatovi} „ra- immediately started searching for ways to rectify di na raskinu}u ugovora o monopolu duvana”. Sam things. Nevertheless, a Protocol on the monopoly Mijatovi} rekao je kasnije da je bio duàn, kao takeover was signed a few days later, on 21 April ministar, da poku{a ili da „popravi ugovor” ili 1886, and the monopoly commenced its opera- da „monopol vrati u dràvne ruke”. [tavi{e, on tions on 15 July of that same year.52 In the mean- je „predloìo dru{tvu da ustupi monopol natrag” time, by virtue of a simple ministerial order53 the i „pre nego {to se do|e do posla”, ali dru{tvo previous method of operation remained in use – nije pristalo. O~igledno je da srpska strana nije in some districts it was done by the old private bila previ{e zadovoqna ustupawem monopola lessees (whose contracts had expired on 31 Octo- pod pritiskom finansijskih potreba za rat sa ber 1885), and in some, where there were no pri- Bugarskom i da je odmah gledala kako da popravi vate lessees (districts of Vranje, Crna Reka, the stvar. Ipak, protokol o prijemu monopola potpi- Drina Valley, Poàrevac, Pirot, Uìce), by the san je nekoliko dana kasnije, 21. aprila 1886, a government itself.

THE 1885 FULL MONOPOLY monopol je po~eo sa radom 15. jula iste godine.52 Buying Part of Tobacco Monopoly Shares U me|uvremenu je obi~nom ministrovom nared- bom53 produèn dotada{wi na~in rada – u nekim Mijatovi} was not giving up. Ever since his appoint- okruzima su to ~inili stari privatni zakupci ment as Finance Minister, he was trying to find a (kojima je ugovor istekao 31. oktobra 1885. godi- remedy. He first tried to find some other company ne), a u nekima, u kojima nije bilo privatnih which would take over the exploitation of the zakupaca (vrawski, crnore~ki, podriwski, poà- monopoly on terms which would be more favorable reva~ki, pirotski, uì~ki), sama dràva. for Serbia, but he failed. Then, in his wish for the Ser- bian state to take the monopoly itself, he proposed to Otkup dela akcija monopola duvana the lessees termination of the Agreement on an amicable basis, but representatives of the monopoly Mijatovi} nije odustajao. Od preuzimawa mini- company did not accept that. They simply asked why starstva finansija, on se trudio da popravi “your people did not buy shares” and offered 2,500 stvar. Prvo je poku{ao da na|e neko drugo shares for sale. Mijatovi} asked for more and they dru{tvo koje bi, pod povoqnijim uslovima za Sr- reached agreement at 5,000, which was a quarter of biju, preuzelo eksploataciju monopola, ali nije the total number.54 With that quarter, Serbia would uspeo. Zatim je, èle}i da srpska dràva sama initially receive 40 percent of net profit from the preuzme monopol, predloìo zakupcima spora- monopoly, since it was already entitled to 15 percent zuman raskid ugovora, ali predstavnici mono- under the original contract, even without a stake in polskog dru{tva nisu pristali. Pitali su, the company. With time, that percentage would auto- jednostavno, za{to „va{i qudi nisu kupili matically grow to 58 percent, since its contractual, akcije?” i ponudili na prodaju 2.500 akcija. Mi- non-equity-related right was to rise from 15 percent jatovi} je traìo vi{e i pogodili su se za 5.000, to the maximum of 33.3 percent. The basic advan- {to je bila jedna ~etvrtina ukupnog broja.54 Sa tage of this plan was the fact that the Serbian state tom ~etvrtinom, Srbija bi primala na po~etku would arrive at 40 or more percent of profit, while 40% ~iste dobiti od monopola, po{to ve} po po- the administrative issues would remain somebody ~etnom ugovoru i bez svojine ima pravo na 15%. U else’s responsibility, i.e. the responsibility of the pri- kasnijem periodu taj bi procenat rastao auto- vate firm which was a lessee. êdomilj Mijatovi} was matski, do 58%, po{to weno ugovorno, nevla- still convinced that the Serbian state did not have sni~ko pravo raste sa 15% na maksimalnih capacities for major administrative undertakings. 33,3%. Osnovna vrlina ovog plana je to {to }e The financial side of the deal was as follows: the dràva Srbija sti}i do 40 i vi{e procenata do- company extended a loan to the Serbian state biti, a da }e se administracijom i daqe baviti amounting to 250 dinars for each share (the price of neko drugi, tj. privatna firma zakupac. êdo- a share was 500 dinars in nominal terms, but it was miq Mijatovi} je i daqe bio uverewa da srpska paid in with only 50 percent), which added up to a dràva nema sposobnosti za velike administra- total of 1.25 million dinars, with an interest rate of tivne poduhvate. 6 percent a year. The principal was to be repaid in Finansijska strana posla bila je slede}a: four annual installments, from 1887 to 1890. The dru{tvo je dalo zajam srpskoj dràvi od 250 di- collateral for the loan were these same shares of the nara za svaku akciju (cena jedne akcije bila je monopoly company pledged with the creditor banks.

POTPUNI MONOPOL IZ 1885. GODINE nominalno 500 dinara, ali je upla}ena tek sa However, the debt was repaid in two equal install- 50%), {to je ukupno 1,25 miliona dinara a sa 6% ments – the first one was paid from the loan out of kamate godi{we. Predvi|eno je da se glavnica which the Radicals were covering short-term debts, otpla}uje u ~etiri godi{we rate, od 1887. do and the other one at the point when the Agreement 1890. godine. Kao obezbe|ewe zajma posluìle su with the monopoly company was terminated and same akcije monopolskog dru{tva, koje su banke the debt was finally repaid by the Serbian state out poverioci uzeli u zalog. Me|utim, dug je ispla- of a loan taken out for that purpose.55 }en u dve jednake rate – prva iz zajma kojim su Radical Taušanovi} proposed to take a harder radikali pokrivali privremene dugove, a druga line on the lessees and requested that the state u vreme raskida ugovora sa monopolskim dru- immediately terminate the Agreement due to huge {tvom i wegove definitivne isplate od strane profits of the lessee, either on the basis of a legal 55 srpske dràve iz za to uzetog zajma. “hitch” or on the basis of nonconformity of the Radikal Tau{anovi} predlagao je o{triji Agreement with the law, or for a consideration. kurs prema zakupcima i traìo da dràva, zbog Mijatovi} was against forcible termination of the ogromne dobiti zakupca, odmah raskine ugovor, Agreement and he thought that the state had to bilo na osnovu neke pravne „za~koqice”, bilo comply with the agreements it signed: “Do not zbog nesaglasnosti ugovora sa zakonom, bilo uz impose on us the forcible method, which will only naknadu. Mijatovi} je bio protiv nasilnog ras- compromise the dignity of the state and lead to kida ugovora i smatrao je da dràva mora da huge damage.” And the logic that the monopoly po{tuje ugovore koje potpi{e: „Nemojte nam na- company was advocating (buy the shares!) was close metati nasilan na~in, koji }e samo kompromi- to him, because, indeed, anybody could buy shares tovati dostojanstvo dràve i do velike {tete and become a (co)owner of the joint stock company, dovesti”. A logika koju je zastupalo monopolsko including the Serbian state. “If the people think that dru{tvo (kupite akcije!) bila mu je bliska, jer, this monopoly is some kind of a goldmine, then, zaista, svako moè da otkupi akcije i postane after all, this is the best beginning of bringing this (su)vlasnik akcionarskog dru{tva, pa i srpska goldmine into our hands”. “Serbia”, as he used to dràva”. Ako narod misli da je ovaj monopol say, “can continue to buy shares and thus become kakav zlatni rudnik, onda, ipak, ovo je najboqi the majority owner or the full owner”.56 po~etak da taj zlatan rudnik dobijemo u na{e Mijatovi} was skeptical about the optimistic ruke”. Srbija, govorio je, moè da nastavi da estimates of the profit which the tobacco monopoly kupuje akcije i tako postane ve}inski ili could yield: “We count on this to be a lucrative deal 56 potpuni vlasnik. and that there will be some huge profits, but we also Mijatovi} je bio skepti~an prema optimi- reckoned that tobacco excise duty would bring 2–3 sti~kim procenama dobiti koju duvanski mono- million” while it “did not bring more than 900,000 pol moè da donese: „mi ra~unamo da je to sjajan dinars”. He reminded of the experiences with the posao i da }e biti velike dobiti, a mi smo tako Serbian administration, the favoritism and the ra~unali i kad smo mislili da }e tro{arina na turning of a blind eye on improper and criminal duvan doneti 2–3 miliona” a „nije donela vi{e business dealings, and posed an important question: od 900.000 dinara”. Podsetio je na iskustva sa can the state be as successful in running a company srpskom administracijom, na protekcije i as a privately owned firm which is driven exclusive-

THE 1885 FULL MONOPOLY gledawe kroz prste nesolidnom i kriminalnom ly by the motive of profit? “I would not be able to poslovawu i postavio jedno va`no pitawe: moè make so much profit as the company can make…I li dràva da jednako uspe{no vodi jedno predu- think that it is better to have a share in the profit ze}e kao privatna firma koja je pokretana and not to have any headaches, like employing pub- iskqu~ivo profitnim motivom? „Ja ne bih mo- lic servants, or taking care of the paper work, or a gao isterati toliku dobit koliku moè dru{tvo whole bunch of detailed tasks. Instead, it is better isterati… mislim da je boqe da u~estvujemo u for us to do our other jobs “.57 Mijatovi} was right. dobiti i da nemamo glavoboqe, ni da postavqa- If there has to be a monopoly, a private one is more mo ~inovnike, ni da vodimo administraciju, ni efficient and operates more successfully than a gov- ~itavu gomilu detaqnih poslova, no da radimo ernment monopoly. The question is only who gets 57 na{e druge poslove”. Mijatovi} je bio u pravu. the money – the foreigners or the Serbian state. Ukoliko ve} monopol mora da postoji, privatni There was a general perception in the public that je efikasniji i boqe posluje nego dràvni. Pi- the tobacco monopoly was leased cheap to foreigners tawe je samo kome ide novac – strancima ili and that the joint stock company set up by Länder- srpskoj dràvi. bank and Comptoir d’Escompte was making huge U narodu i javnosti bilo je ra{ireno uvere- profits at Serbia’s expense. Indeed, the monopoly we da je monopol duvana ustupqen strancima was leased under the pressure of the war with Bul- isuvi{e jeftino i da akcionarsko dru{tvo koje garia, to obtain a war loan, so it was only natural for su formirale Lenderbanka i Eskontni kontoar such rumors to go around. The opposition was par- ubira veliku dobit na ra~un Srbije. I zaista, ticularly loud in claiming that the purchase prices of monopol je ustupqen pod pritiskom rata sa Bu- raw tobacco fixed at that time, in early 1886, were garskom, da bi se dobio ratni kredit, i prirod- extremely unfavorable (ranging from 1 to 3, i.e. 4, no je da takvi glasovi uzmu maha. Naro~ito je dinars per kilogram) and that they would impoverish opozicija tvrdila da su tada, po~etkom 1886. go- the families of tobacco producers and cause a drop dine, ustanovqene otkupne cene sirovog duvana in tobacco production, as well as that the selling krajwe nepovoqne (od 1 do 3, odnosno 4 dinara prices of processed tobacco were too high. po kilogramu) i da }e doneti osiroma{ewe po- The discussion in the Assembly was opened on rodica proizvo|a~a i smawewe proizvodwe du- 25 July 1886, not even a month after the beginning vana, kao i da su prodajne cene prera|enog duva- of the operation of the monopoly company. Former na preterano visoke. Finance Minister Vukašin Petrovi} who had deter- Diskusija u skup{tini pokrenuta je 25. jula mined the purchase prices together with the then 1886, dakle ni mesec dana od po~etka rada mono- Minister of National Economy, claimed that the polskog dru{tva. Biv{i ministar finansija prices were not unfavorable, that they had been Vuka{in Petrovi}, koji je odredio otkupne cene fixed in cooperation with the police authorities on zajedno sa onda{wim ministrom za narodnu the basis of the going prices in the past and that they privredu, tvrdio je da cene nisu nepovoqne, da were higher than the prices in the neighboring coun- su odre|ene u saradwi sa policijskim vlastima tries. And he was right, because, for example, in a na osnovu ranije postignutih cena i da su one 1893, under the government monopoly, the average vi{e od cena u susednim dràvama. I bio je u purchase price of a kilogram of tobacco in Serbia pravu, jer je, na primer, prose~na otkupna cena was a mere 0.78 dinars, which was far lower than

POTPUNI MONOPOL IZ 1885. GODINE kilograma duvana u Srbiji iznosila 1893. godi- Petrovi}’s prices of 1886. Furthermore, Petrovi}, ne, pod dràvnim monopolom, samo 0,78 dinara, who signed the Monopoly Lease Agreement, claimed {to je znatno niè od Petrovi}evih cena iz that the monopoly company did not have more than 1886. godine. Daqe, Petrovi}, koji je potpisao 1 million of net profits. However, merchant Ðor|e ugovor o zakupu monopola, tvrdio je da monopol- Neši}, a Progressist but Petrovi}’s rival, claimed that sko dru{tvo nema vi{e od 1 miliona ~iste the lessee’s profits were around 6 million and that dobiti, dotle je trgovac \or|e Ne{i}, napred- the former minister had created an “evil”, while Rad- wak, ali protivnik Petrovi}a, tvrdio da je ical Taušanovi}, formerly a tobacconist, estimated dobit zakupca oko 6 miliona i da je biv{i these profits, vastly exaggerating, at an enormous 12 ministar stvorio jedno „zlo”, a radikal Tau{a- to 14 million dinars.58 novi}, ina~e biv{i duvanxija, procewivao je tu A serious objection was that the tobacco dobit, mnogo preteruju}i, na ogromnih 12 do 14 monopoly was exempt from the regal fee on import- 58 miliona dinara. ed tobacco, in contravention of the law. That was Ozbiqna primedba bila je da je duvanski true, since the Progressist government had suc- monopol bio, protivno zakonu, oslobo|en regala cumbed to the blackmailing pressure of Länder- za uvezeni duvan. To je bila istina, po{to je bank’s representatives on the eve of peace with the napredwa~ka vlada podlegla ucewiva~kom Bulgarians. Due to this arrangement, the govern- pritisku predstavnika Lenderbanke u vreme ment coffers were losing more than a million per pred sklapawa mira sa Bugarima. Ovim re{e- year, and cheap imports had an adverse impact on wem dràvna blagajna izgubila je vi{e od tobacco production in Serbia, because it was cheap- milion dinara godi{we, a jeftinim uvozom er for the monopoly company to import foreign bila je pogo|ena proizvodwa duvana u Srbiji, jer tobacco than to pay for the domestic variety. In line se monopolskom dru{tvu vi{e isplatilo da uvo- with this, the company approved a mere half of the zi strani nego da pla}a doma}i duvan. U skladu s five thousand applications for tobacco planting in tim, dru{tvo je od pet hiqada zahteva za sa|ewe 1887. And out of the requested 114.2 million stems, duvana u 1887. godini odobrilo samo jednu it issued licenses for only 32.8 million, namely for polovinu, a od traènih 114,2 miliona strukova the production of 600,000 kilograms, thus prevent- dalo dozvolu samo za 32,8 miliona, odnosno za ing many farmers and parts of the country to earn proizvodwu od 600 hiqada kilograma, i, tako, some income. On the other hand, tobacco imports li{ilo zarade mnoge seqake i krajeve zemqe. Sa were increased to 574,800 kilograms in 1886.59 A druge strane, uvoz duvana je pove}an na 574,8 drop in local purchases and a rise in tobacco imports 59 hiqada kilograma u 1886. godini. No, smawe- were logical consequences of still high purchase we otkupa u zemqi i pove}awe uvoza duvana bilo prices in Serbia in comparison with the low pur- je logi~na posledica ipak visokih otkupnih chase prices in Austria-Hungary. cena u Srbiji u pore|ewu sa niskim otkupnim Minister Mijatovi}, out of loyalty to Vukašin cenama u Austrougarskoj. Petrovi} as a colleague, claimed that in those war cir- Ministar Mijatovi} je, kolegijalno prema cumstances he himself probably would not have Vuka{inu Petrovi}u, tvrdio da u onakvim rat- been able to negotiate a better deal. Several years nim prilikama ni on sam verovatno ne bi uspeo later the Serbian state took back the tobacco monop- da zakqu~i boqi ugovor. Nekoliko godina oly from foreigners, so we can take a look at the then

THE 1885 FULL MONOPOLY kasnije srpska dràva preuzela je duvanski mo- profits of the monopoly and use them to close this nopol od stranaca, pa moèmo pogledati tada- discussion. Net profits of the tobacco monopoly run {wu zaradu monopola i iskoristiti je da zakqu- by the state were 2.2 million in the first year upon ~imo ovu diskusiju. îsta dobit duvanskog mono- the takeover of the monopoly, 1889, gradually going pola u dràvnoj reìji bila je 2,2 miliona u pr- up in the subsequent years to reach 5.5 million in voj godini po preuzimawu, 1889, da bi slede}ih 1893. It stayed at that level until the end of 1898, godina postepeno rasla do 5,5 miliona u 1893. which is considerably less than Taušanovi}’s overly godini. Na toj se visini zadràla zakqu~no sa optimistic forecast, but at the level of Neši}’s. How- 1898. godinom, {to je znatno mawe od preopti- ever, there were another two factors significantly misti~ke prognoze Tau{anovi}a, ali na nivou contributing to higher profits of the state-run tobac- Ne{i}eve. Me|utim, jo{ su dva ~inioca bitno co monopoly: firstly, in time, the Monopoly Direc- doprinela da dobit duvanskog monopola u dràv- torate increased selling prices of tobacco products; noj reìji donese vi{e nego ina~e: prvo, tokom and secondly, the prices of purchased tobacco were vremena monopolska uprava je pove}ala prodajne very low in all those years (ranging from 0.69 dinars cene duvanskih prera|evina; i drugo, cene otku- to 1 dinar per kilogram),60 which is much, much pqenog duvana bile su vrlo niske svih ovih godi- lower than the prices set by Petrovi}. Consequently, na (kretale su se izme|u 0,69 i 1 dinar po kilo- the profits of the government monopoly were sub- 60 gramu), {to je mnogo, mnogo niè od cena koje stantially increased on the basis of lower purchase je odredio Petrovi}. Dakle, dobit dràvnog and higher selling prices of tobacco. Without that, monopola znatno je uve}ana po osnovu niìh they would have been considerably lower than both otkupnih i vi{ih prodajnih cena duvana. Bez the actual profits and Neši}’s estimate, maybe at the toga, ona bi bila bitno mawa i od ostvarene i od level of the annual fee for the monopoly lease Ne{i}eve procene, mo`da na nivou godi{weg (around 2.5 million dinars) or even less. All in all, zakupa monopola (oko 2,5 miliona dinara) ili those with moderate views about the financial ~ak niè. Sve u svemu, u pravu su bili oni koji su potential of the tobacco monopoly in Serbia (Petro- umereno gledali na finansijski potencijal movi} and Mijatovi}) were right. Länderbank and nopola duvana u Srbiji (Petrovi} i Mijatovi}). Comptoir could not earn nearly as much as people in Lenderbanka i Kontoar nisu mogli da zarade ni Serbia believed they were making. And a subsequent blizu onoliko koliko se to u Srbiji verovalo. A rise in the profits of the government monopoly was kasnije pove}awe dobiti dràvnog monopola achieved not because it was taken from the foreign- izvedeno je ne zahvaquju}i ~inu preuzimawa ers, but with the help of the price squeeze at the monopola od stranaca, nego makazama cena na ra- expense of the Serbian subjects, who were selling ~un srpskih podanika, koji su jeftinije prodava- their tobacco for less and buying it for more than li i skupqe kupovali duvan nego pod strancima. under the foreigners.

Fabrika duvana Tobacco Factory Lenderbanka je ozbiqno pristupila poslu sa Länderbank approached the business of tobacco fab- fabrikacijom duvana: odmah je pokrenula iz- rication seriously: it immediately launched the con- gradwu nove i solidne fabrike u Beogradu. Ali, struction of a new and solid factory in Belgrade. But,

POTPUNI MONOPOL IZ 1885. GODINE Lokacija fabrike duvana (mapa iz 1905) The location of the tobacco factory (a 1905 map) do wenog zavr{etka trebalo je negde raditi. Prva pending its completion, one had to work somewhere. fabrika duvana privremeno je ustanovqena u The first tobacco factory was temporarily set up in centru grada: sme{tena je u dve da{~are u Knez the city center: it was placed in two board stalls in Mihajlovoj ulici na mestu gde je sada zgrada Knez Mihajlova Street, on the location of the present SANU, dok se pakovawe odvijalo odmah preko building of the Serbian Academy of Sciences and puta, u prizemqu zgrade na po~etku îka Qubine Arts, while the packaging was carried out right ulice, gde se sada nalazi novija zgrada Filozof- across the street, on the first floor of a building at skog fakulteta. Opremu su sa~iwavale ~etiri the beginning of îka Ljubina Street, which is now krià~ke ma{ine, koje su rukom pokretane, i 90 the location of the newer building of the Faculty of duvanskih avana. Malo kasnije nabavqeno je jo{ Philosophy. Its equipment comprised four cutting {est ru~nih krià~kih ma{ina. Kancelarije machines, manually propelled, and 90 tobacco mor- uprave nalazile su se na prvom spratu zgrade u tars. A little later another six manual cutting

THE 1885 FULL MONOPOLY îka Qubinoj. Nije mnogo vremena pro{lo, a machines were procured. The management offices fabrika je, sa svim ma{inama, preseqena iz were located on the second floor of the building in ovih prostorija u zgradu koja se nalazila levo îka Ljubina Street. After a short while, the factory od ulaza u portu stare crkvice sv. Marka iz was moved together with all the machines from Takovske ulice. these premises into a building which was situated on Ipak, ve} 1887. godine zavr{ena je nova fa- the left-hand side of the entrance to the churchyard brika za preradu duvana kod Mostara,* tada na of the old St. Marco’s Church in Takovska Street. periferiji grada, a na kraju ulica Savske (tada Still, as soon as 1887, the new tobacco process- Moravske) i Sarajevske i izme|u koloseka èle- ing factory was finished near Mostar,* on the city’s zni~ke stanice i veze ulice Kneza Milo{a sa perimeter at that time, at the end of Savska (then obrenova~kim drumom (sada Bulevar Vojvode Mi- Moravska) and Sarajevska streets and between the {i}a). Sve ma{ine i radnici sa Ta{majdana railroad tracks of the Railroad Station and the route tamo su preseqeni, a posebnu korist fabrici da- connecting Kneza Miloša Street with Obrenovac vao je direktan èlezni~ki pristup. Road (now Vojvoda Miši}’s Boulevard). All the Vlasnik placa na kome je podignuta fabrika machines and workers from Tašmajdan were moved bio je sam kraq Milan, koji je dopuwavao prihode there, and direct access to the railroad was a special od civilne liste, ina~e nedovoqne za wegov tro- advantage of the factory. {axijski na~in ìvota, izdavawem nekretnina. The owner of the lot on which the factory was Ovaj plac Milan je izdao kompaniji koja je drà- built was nobody else but King Milan, who topped la monopol duvana, pa mu je Lenderbanka, u~esnik up his income from the civil list, insufficient for his u tom poslu, odjedanput isplatila maja 1887. prodigal lifestyle, by renting real estate. Milan rent- godine oko 125 hiqada dinara za vi{egodi{wi ed this lot to the company holding the tobacco zakup, ~ija je godi{wa visina izgleda bila 5 monopoly; in May 1887 Länderbank, a participant hiqada dinara.** in that deal, made a one-off payment to him in the Po preseqewu fabrike na novu lokaciju, na amount of around 125,000 dinars covering the rent staroj kod Markove crkve ustanovqeno je glavno for a number of years, with the annual rental fee skladi{te duvana uprave monopola, {to je probably being 5,000 dinars.** zadugo ostalo. After the factory was moved to its new loca- Radnici beogradske fabrike, kao i dràv- tion, the old one near St. Marco’s Church was nih duvanskih magacina u kojima je sme{tan i turned into the main tobacco warehouse of the fermentisan duvan, regrutovani su delimi~no Monopoly Directorate, and was used for that pur- me|u avanxijama i reza~ima, kako stoga {to su pose for a long time. bili kvalifikovani za ovaj posao, tako i zbog to- Workers of the Belgrade factory, as well as of the ga {to su ostali bez posla. Naime, uspostavqawe government tobacco warehouses where tobacco was

* Trg je zvan Kod monopola do I svetskog rata, do * The name of the square was At the Monopoly before World kada se tu nalazila fabrika. Kasnije je War I, until which time the factory was situated there. Later prozvan Mostar, po obli`woj kafani. on, it was renamed into Mostar, after a nearby restaurant. ** M. Piro}anac – Dnevnik, 22.5.1887; postoji i ** M. Piro}anac - Diary, 22/5/1887; there is also less reliable mawe pouzdana informacija da je Milan ovom information that Milan actually sold the lot to the Monop- prilikom prodao plac monopolskom dru{tvu. oly Company on this occasion.

POTPUNI MONOPOL IZ 1885. GODINE Kompleks fabrike duvana krajem XIX veka The compound of the tobacco factory in the late 19th century monopola duvana u~inilo je da ceo jedan zanat – stored and fermented, were recruited partially from avanxijski/duvanxijski – preko no}i izgubi among mortar men and cutters, both because they razlog postojawa i da se svi – i preduzetnici i were qualified for the job and because they were left radnici – na|u na ulici. Bilo je to te{ko vreme jobless. Namely, with the establishment of the tobac- za ove qude navikle na stari na~in `ivota, pa i co monopoly, an entire trade – of mortar men/tobac- lepe zarade (posebno avanxije): trebalo je prila- conists – lost its raison d’être overnight and all of goditi se novom vremenu i za sebe na}i novi them – both entrepreneurs and workers – found izvor prihoda i novi posao. Neki su bar deli- themselves in the street. It was a tough time for mi~no uspeli, nalaze}i zaposlewe u fabrici, these people accustomed to the old lifestyle, includ- magacinima i monopolskoj upravi, a neki su, ing decent wages (particularly mortar men): one had opet, promenili zanat ili osiroma{ili. Ostali to adjust to the new times and find a new source of su samo neki kao ~isti trgovci, kao maloprodav- income and a new job. Some succeeded, at least par- ci bez proizvodwe i izvozno-uvozne trgovine. tially, by finding employment in the factory, ware- Radili su za sitan procenat koji su primali od houses and the Monopoly Directorate, while others velikoprodavaca, odnosno monopolskog dru{tva. changed their trade or were reduced to poverty. Only

THE 1885 FULL MONOPOLY Prvi upravnik Kraqevske srpske Uprave du- some of them managed to survive as just traders, as vana bio je Moric (Mauric) Opalka, a i wene pro- retailers without production and export-import storije nalazile su se na prvom spratu zgrade u activities. They worked for a small cut they received îka Qubinoj. Prvi direktor fabrike bio je êh from wholesalers, i.e. the monopoly company. âp, a zatim na duè Viqem Bader. Dnevna pre- The first Director of the Serbian Royal Monop- rada iznosila je oko 2.000 kg kriànog duvana. oly Directorate was Mauric Opalka, while its prem- Po{to je dràva preuzela monopol od stra- ises were on the second floor of the building in îka naca, Uprava monopola preseqena je u palatu La- Ljubina Street, too. The first General Manager of hovari u Knez Mihajlovu 40, kupqenu od Radova- the factory was a Czech named Chap, followed by na Barlovca. Direktor fabrike i daqe je ostao William Bader, who stayed in this position for a inèwer Bader, kao stru~an ~ovek u pore|ewu sa longer period. Its daily processing capacity was doma}im protiv kandidatima. around 2,000 kilograms of cut tobacco. Ve} 1890. godine ose}alo se da fabrika ne za- After the government had taken over the dovoqava ni po obimu proizvodwe, niti po funk- monopoly from the foreigners, the Monopoly Direc- cionalnosti. Kako je sama uprava priznavala: torate was moved to the Lahovari Palace in 40 Knez „Usled toga {to prodaja duvana s dana na dan sve Mihajlova Street, bought from Radovan Barlovac. vi{e raste, na{a fabrika u sada{wem stawu Engineer Bader remained at the helm of the factory, nema mogu}nosti da na vreme fabrikuje toliko as a skilled professional, in comparison with his duvana koliko je za potro{wu potrebno. Stoga je domestic competitors for that post. nu`no da se na{a fabrika pro{iri”. Pored toga, As early as 1890, a general feeling was created „sadawa fabrikacija jo{ nije u tom stepenu that the factory was not adequate, both in terms of savr{enstva da potpuno odgovara savremenoj output volume and functionality. The Directorate fabrikaciji duvana”, pa se predlaè da se izve- itself conceded that: “Due to the fact that tobacco 61 de „korenita reforma u fabrici”. O~igledno sales are growing on a daily basis, our factory in its je da privatno monopolsko dru{tvo nije uspelo present condition has no capacity to fabricate the da za kratko vreme zakupa monopola izgradi i quantity of tobacco required for consumption in a unapredi fabriku do najvi{e mere. timely fashion. Therefore, it is absolutely necessary I zaista, dràva je krenula da poboq{a teh- for our factory to expand”. In addition, “the present ni~ku stranu rada fabrike, pa je pored deset fabrication has not yet achieved such degree of per- postoje}ih ru~nih krià~kih ma{ina, nabavila fection so as to completely live up to the standards i sedam motornih krià~kih ma{ina tipa W. of up-to-date tobacco fabrication,” hence it was pro- Lieber, koje su radile i posle I svetskog rata. posed to carry out “radical reform in the factory”.61 Godine 1893. nabavqene su prve industrijske ma- Obviously, the private monopoly company did not {ine za izradu cigareta tipa Decoufle iz Fran- manage to build and upgrade the factory to the cuske, na tada{wem svetskom tehnolo{kom nivou. highest possible degree in the short period of the Wihov projektant, Anatol Dekufle, delio je monopoly lease. slavu pronalaza~a automatskih ma{ina za proiz- And indeed, the government set off to vodwu cigareta sa Amerikancem Xejmsom Bonsa- improve the technical aspect of the operation of kom. Ipak, ove su ma{ine pravile prostije ciga- the factory, so in addition to the existing ten man- rete, dok su one finije i daqe izra|ivane ru~no. ual cutting machines it also procured seven W.

POTPUNI MONOPOL IZ 1885. GODINE Proizvodwa se odvijala u beogradskoj fabri- Lieber motor-driven cutting machines, which ci do 1914. godine, kada je preseqena u Ni{, were still in operation after World War I. In 1893, prvo u duvanski magacin, da tamo ostane za stal- the first Decoufle industrial cigarette-making no. Naime, odmah na po~etku I svetskog rata, jo{ machines were procured from France, at that time u julu 1914. godine, Uprava monopola je zapo~ela state-of-the-art equipment. Their designer, Ana- evakuaciju fabrike da bi je spasla od dejstva te- tole Decoufle, shared the glory as the inventor of {ke austrougarske artiqerije, ukopane na Beà- automated cigarette-making machines with James nijskoj kosi. Na àlost, poduhvat nije uspeo. U Bonsack of the U.S. However, these machines kratkom roku preneto je u Ni{ sedam krià~kih were making lower-quality cigarettes, while the ma{ina tipa W. Lieber, a sve ostalo – druge finer ones were still manually produced. ma{ine, pune magacine duvana (oko 2 hiqade The production had been carried out in the tona) i zgrade – austrijska artiqerija sravnila Belgrade factory until 1914, when it was moved to

Ru{evine fabrike duvana 1914. godine The debris of the tobacco factory in 1914

THE 1885 FULL MONOPOLY je sa zemqom i pretvorila u zgari{te. A pred rat, Niš, first into a tobacco warehouse, only to remain 1913. godine, proizvodwa je bila: 783,4 tone there permanently. Namely, at the very beginning kriànog duvana, 113,7 miliona cigareta i 2,8 of World War I, already in July 1914, the Monopoly tona burmuta. Ma{inski park ~inilo je 10 ru~- Directorate began the evacuation of the factory in nih ma{ina za kriàwe, 7 motornih ma{ina za order to save it from the fire of Austro-Hungarian kriàwe tipa W. Lieber, 6 ma{ina za izradu ci- heavy artillery, entrenched accrossacross the Sava 62 gareta i 16 ma{ina za pakovawe paklica. Dodu- River. Unfortunately, the attempt was unsuccess- {e, i pre I svetskog rata bilo je planova, pa i od- ful. Very quickly, seven W. Lieber cutting luka vlade o preseqewu fabrike u Ni{ radi po- machines were transported to Niš, but everything ve}awa kapaciteta i modernizacije, ali su bal- else – other machines, warehouses full of tobacco kanski ratovi omeli namere. (some 2,000 tonnes) and buildings – were razed to the ground by the Austrian artillery and turned Fabrika {ibica63 into ashes. Just before the war, in 1913, the production had been: 783.4 tonnes of cut tobacco, Posle neuspe{nog poku{aja Jovana Ven~anca iz 113.7 million cigarettes and 2.8 tonnes of snuff. 1869. godine i slede}ih godina da napravi The machine pool had comprised 10 manual cut- fabriku {ibica na Terazijama, priliku da poku- ting machines, 7 W. Lieber motor-driven cutting {a dobio je Moris Tomas, industrijalac iz machines, 6 cigarette-making machines and 16 Brisela. 1887. godine dobio je olak{ice iz Za- machines for packaging cigarette packs.62 Admit- kona o potpomagawu doma}e industrije, tj. ustu- tedly, even before World War I there had been pqeno mu je zemqi{te i dato pravo na besplatnu plans, even a government decision, to move the se~u dràvnih {uma. Zemqi{te se nalazilo iz- factory to Niš with a view to increasing its capacity nad Top~iderskog puta u Beogradu, a posle odre|e- and streamlining it, but the Balkan Wars thwarted nog natezawa akcionarskom dru{tvu dato je pravo those intentions. na se~u vrba i topola na re~nim adama (Ciganli- ji, {aba~koj i drinskim ostrvima). Za dnevnu 63 proizvodwu fabrici su trebala ~etiri drveta od Match Factory 40-60 cm u pre~niku. After Jovan Ven~anac’s unsuccessful attempt to Gradwa fabri~ke zgrade zapo~eta je 1888, a build a match factory in Terazije Street in 1869 and zavr{ena 1890. godine. Fabrici je bilo dozvoqe- the following years, a chance for that was given to no da proizvodi samo tzv. {vedske {ibice, one Morris Thomas, an industrialist from Brussels. In koje ne sadrè sumpor i fosfor i stoga nisu 1887, he was given incentives provided for by the {kodqive za qude. Law on Support to Domestic Industry: he was grant- Firma se odmah suo~ila sa trì{nim neda- ed land and the right to cut state owned woods free }ama. Iako je ministar narodne privrede prepo- of charge. The land was located off Top~ider Road in ru~io svim dràvnim nadle{tvima da se sluè Belgrade, and after some wrangling, a joint stock samo doma}im {ibicama, iako su sve prodavnice company was granted the right to cut willows and duvana morale da na vidnom mestu istaknu natpi- poplars on the river islets (Ciganlija, the Šabac Islet se o prodaji ovih {ibica, ipak je trì{tem do- and islets on the Drina). For daily output, the facto- minirala autrijska {ibica. Tome su uzrok bili i ry needed four trees of 40–60 cm in diameter.

POTPUNI MONOPOL IZ 1885. GODINE Fabrika {ibica Match works nedovoqan kapacitet doma}e fabrike, i navika The construction of the factory building started gra|ana da se koriste austrijskim {ibicama, i in 1888 and was completed in 1890. The factory was neume{nost rukovodstva fabrike, pra}ena suko- allowed to make only the so-called Swedish match- bima me|u akcionarima. Pored toga, fabrika je es, those that do not contain sulfur and phosphorus uredno pla}ala regalne takse i tro{arine, ~ega and therefore are not harmful to people. su bile po{te|ene uvozne, a prokrijum~arene {i- The firm immediately encountered problems on bice. Usled male prodaje i proizvodwe, finan- the market. Despite the fact that the Minister of the sijska pozicija fabrike bila je nepovoqna. National Economy had recommended to all govern- Poboq{awe stawa nastaje 1893. godine, kada ment bodies to use exclusively locally produced se ustanovqava monopol {ibica kojim je predvi- matches, and despite the fact that all the tobac- |eno da dràva poseduje iskqu~ivo pravo na conist shops had to put notifications in visible wihovu proizvodwu i prodaju. Prilago|avaju}i places about the sale of these matches, the market se novom stawu, naredbom ministra finansija je was still dominated by Austrian matches. The rea- fabrici dozvoqen daqi rad aprila 1895. godine, sons for that were: the insufficient capacity of the ali pod kontrolom i za ra~un Uprave dràvnih domestic factory and the people’s habit of using monopola. Za fabriku {ibica je ovo re{ewe Austrian matches, as well as the lack of skills on the bilo povoqno, jer se preduze}e nalazilo u rasulu, part of the factory management, coupled with con- a i rok povlastice je bio na izmaku. Poboq{awe flicts among shareholders. Furthermore, the factory nastaje kada je dràva 1898. godine raskinula was paying all regal fees and excise duties, of which ugovor sa Firtom o isporuci {ibica. Na kraju foreign, though smuggled, matches were spared. je, 1901. godine, dràva i otkupila fabriku za Due to low sales and output, the financial position 350 hiqada dinara i bitno je unapredila. of the factory was unfavorable.

THE 1885 FULL MONOPOLY Krijum~arewe The situation improved in 1893, when the Od po~etka rada monopola duvana stvari nisu match monopoly was established, under which the i{le kako su zakon o monopolu duvana i ugovor government was the exclusive holder of the right to izme|u zakupca i srpske vlade predvi|ali. their manufacture and sale. In the process of adap- Osnovni problemi, kao {to se moglo o~ekivati, tation to the new circumstances, on the strength of bili su krijum~arewe duvana iz susednih zemaqa an order by the Minister of Finance the factory was i uzgajawe duvana bez dozvole. Tako se uprava du- allowed to continue operation in April 1895, but vanskog dru{tva àlila: „prijavqeni su mnogi under the control and for the account of the Gov- slu~ajevi krijum~arstva iz sviju krajeva zemqe”; ernment Monopoly Directorate. For the match fac- na primer, turski duvan se krijum~ari u vrawski tory, this solution was favorable, because the com- i prokupa~ki okrug, pa ~ak stiè do Kru{evca i pany was in a shambles, and the period of the â~ka, bugarski u Pirot i Zaje~ar, a u krajinski incentive was about to expire. The improvement okrug stiè duvan sa Ada-Kale. Zatim, u mnogim took place when the state in 1898 terminated the

Turski i srpski carinik (Feliks Kanic) A Turkish and a Serbian customs officer (Felix Kanitz)

POTPUNI MONOPOL IZ 1885. GODINE sredinama, kao u kolubarskom srezu i smederev- contract with Firth on match deliveries. Eventually, skom okrugu (Krwevo, Lozovik, Selevac, Velika in 1901, the state purchased the factory for Plana itd) je „na|eno mnogo duvanskih sadova, 350,000 dinars and seriously upgraded it. mada za te krajeve nije izdata nijedna dozvola za sa|ewe duvana”. Monopolsko dru{tvo je konfi- skovalo dosta duvana, ali nije bilo zadovoqno Smuggling rezultatima. From the beginning of the operation of the tobacco Uprava se àlila i na lokalnu srpsku vlast, monopoly, things were not evolving as envisaged nalaze}i da ova ne sara|uje na pravi na~in – niti under the Tobacco Monopoly Law and the Agreement hvata krijum~are, niti one koje uhvati preda nad- between the lessee and the Serbian government. The le`nim organima, niti pokre}e sudski postupak, main problems were, as was to be expected, the niti ih ka`wava kako zakon nalaè, niti predaje smuggling of tobacco from neighboring countries konfiskovani duvan monopolskom dru{tvu, niti and unauthorized tobacco growing. Thus, the man- daje nagrade potkaziva~ima, niti upla}uje deo agement of the tobacco company complained: “Many kazne monopolskom dru{tvu, niti obave{tava cases of smuggling were reported in all parts of the monopolsko dru{tvo o postupku i kaznama. Do sa- country”; for example, Turkish tobacco was smuggled da „uprava duvana nije nigda u stawu bila da {to into the districts of Vranje and Prokuplje, reaching as doku~i o toku istrage i donesenoj presudi nekoga far as Kruševac and â~ak, Bulgarian tobacco into koji se ogre{io o zakon”. Po{to je u pitawu „veli- Pirot and Zaje~ar, while the tobacco that went to the ka zloupotreba”, Uprava je molila ministra Timo~ka Krajina district was coming from Ada Kale. finansija êdomiqa Mijatovi}a da se „ve}a Then, in many regions, such as in Kolubara County pa`wa” pokloni krijum~arewu, da se preduzimaju and Smederevo District (Krnjevo, Lozovik, Selevac, zakonom odre|ene mere protiv prekr{iteqa i da Velika Plana, etc.) “many tobacco plantations were vlast „ve}ma ide na ruku na{im nadzornim orga- found, although not a single license for planting nima, kojima }emo dati nalog da poni{te nedo- tobacco was issued for these regions”. The monopoly 64 zvoqene sadove i uzapte ve} pobrani rod”. company seized a lot of tobacco, but they were not Ni ministar Mijatovi} nije sedeo skr{te- satisfied with the results. nih ruku, nego je slao stroge raspise okru`nim i The management also complained about the drugim vlastima, upozoravaju}i ih „da se prestu- local Serbian authorities, being of the opinion that pi protiv zakona o monopolu duvana umnoàvaju they did not cooperate in the proper manner – they i da se duvan na mnogim mestima protivzakonito were neither catching smugglers, nor turning those proizvodi, sa strane krijum~arski uvozi i u ze- who had been caught over to the competent author- mqi rasprodaje”. Apelovao je na wihovu patriot- ities, nor initiating judicial proceedings, nor pun- sku svest kada ih je podse}ao da i srpska dràva ishing them as prescribed by the law, nor handing u~estvuje u dobiti od monopola sa 40%, ali i da over the seized tobacco to the monopoly company, je „na{a du`nost” da „nastojavamo da se ta~no i nor rewarding informers, nor transferring part of savesno ispuwavaju zakon i ugovor o monopolu fines to the monopoly company, nor informing the duvana”. Uz to je preporu~io o{tre mere protiv monopoly company about the proceedings and prekr{ilaca i saradwu sa organima monopol- fines. So far, “the tobacco company management 65 skog dru{tva. has never been able to figure out anything regarding

THE 1885 FULL MONOPOLY Sa druge strane, na àlbe Uprave odgovarao je the progress of investigations and judgments ren- svojim optu`bama, tvrde}i da „sa svih strana” dered against persons who breached the law.” Since stiù àlbe na kvalitet monopolskog duvana, that was “major abuse”, the Directorate kindly ~iju su {kodqivost za zdravqe ustanovile i asked Finance Minister êdomilj Mijatovi} to stru~ne komisije, kao i da se organi monopol- ensure that “more attention” is paid to smuggling, skog dru{tva potcewiva~ki odnose prema srp- that measures against perpetrators as provided for skim dràvnim organima, {to ne}e biti toleri- by the law are taken and that the authorities “are sano. Ukoliko monopolsko dru{tvo ne promeni more helpful to our supervisory bodies, which will pona{awe, govorio je Mijatovi}, mora}u da be issued orders to destroy unauthorized planta- „nesnosnom stawu… kraj u~inim”, nagove{tavaju- tions and seize already harvested crops”.64 }i tako raskid ugovora. Ne{to kasnije, Mijato- Minister Mijatovi} did not sit on his hands vi} je nastupio sasvim direktno. U sporu oko either; he kept sending sharply worded circulars to naimenovawa duvanskih nadzornika i straàra, district and other authorities, warning them that rekao je da }e, ukoliko Uprava ne izda plate “violations of the law on the tobacco monopoly were svima koje je on naimenovao, „smatrati da ona on the rise and that tobacco was illegally produced gazi zakon i ugovor i da }emo na osnovu zakona in many places, smuggled from abroad and sold all 66 narediti: da se obustavi sva radwa upravina”. over the country.” He appealed to their patriotic Pokazuje se da ni Mijatovi} nije bio blaga i awareness when he reminded them that the Serbian meka priroda, kako je ostao zapam}en u na{oj state, too, had a cut in the monopoly profits of 40 istoriografiji, ve} da je umeo da bude ~vrst i percent, as well as that it was “our duty” to “endeav- nepopustqiv kada je to smatrao nu`nim. or to ensure exact and conscientious enforcement U godini uspostavqawa monopola duvana, tj. u of the law and the Agreement on the tobacco 1886. godini, duvan je sa|en u 12 okruga, a po sta- monopoly.” Furthermore, he recommended tough rim navikama, tj. i sa dozvolom i bez we. Mini- measures against offenders and cooperation with star finansija Mijatovi} popustio je narodu: the bodies of the monopoly company.65 pred lavinom slu~ajeva proizvodwe bez dozvole In parallel with that, he refuted the complaints poklekao je i zanemario zakonske odredbe o ka- of the Directorate with counter-accusations that znama. Kako je sam rekao: „ja imam izve{}a da je complaints about the quality of the monopoly i preko toga u mnogim mestima posejan i odgajen tobacco, whose harmfulness to human health was duvan bez dozvole”. Iako je to jasno ogre{ewe o established even by expert commissions, “were zakon, re~e, sve je to u~iweno u prvoj godini coming from everywhere”, as well as that the bodies vaèwa monopolskog zakona, pa on veruje „da se of the monopoly company had a disparaging atti- moè uzeti da je to u~iweno vi{e u neznawu stva- tude toward the Serbian authorities, which would ri nego u zloj nameri da se krijum~ari”. Da pro- not be tolerated. If the monopoly company did not izvo|a~i ne bi stradali od ruke zakona, on je, „po change its behavior, said Mijatovi}, “I will have put sporazumu sa upravom duvana”, re{io da se neu- an end… to this unbearable situation”, thus hinting kim proizvo|a~ima naknadno razdele odobrewa at the termination of the Agreement. Some time 67 za sa|ewe kada podnesu zahteve. Verovatno je later, Mijatovi} was totally direct. In a dispute over ministar bio u pravu i verovatno je da su seqaci the appointment of tobacco supervisors and guards, bili neuki te prve godine rada monopola, ali se he said that if the Directorate failed to pay wages to

POTPUNI MONOPOL IZ 1885. GODINE Prijava za sadwu duvana iz 1887. An application for tobacco planting of 1887 tokom slede}ih godina pokazalo da su oni nekako all those who had been appointed by him, he would i daqe neuki i da dosta ve{to rade u svoju korist, “consider them to be in violation of the law and the a na {tetu monopola. A Mijatovi}eva popustqi- Agreement and we would order on the strength of vost samo ih je podstakla da se i naredne godine the law to suspend all the activities of the Direc- prave neuki i da zaseju daleko vi{e duvana nego torate”.66 This also shows that Mijatovi} had no {to je dozvoqeno. mild and soft nature, as he is remembered in histo- Za 1887. godinu monopolsko dru{tvo predlo- riography, but that he knew how to be tough and ìlo je sadwu u samo 6 okruga, navode}i da su u adamant when he considered it necessary. tim okruzima boqi prirodni uslovi za gajewe In the year the tobacco monopoly was estab- duvana i da je wima zgodnije, zbog kontrole, da lished, that is in 1886, tobacco was planted in 12 dis- proizvodwa bude koncentrisana na mawem broju tricts, in line with the old habits, i.e. both with and mesta. Za obim proizvodwe predloèno je 6 without licenses. Finance Minister Mijatovi} made a hiqada metri~kih centi. Seqaci su prijavili concession to the people: faced with an avalanche of nameru da zasade 114,2 miliona strukova duvana, cases involving unauthorized production he gave in a monopolska uprava im je odobrila samo 32,8 and ignored the penal provisions of the law. As he miliona. No, zasejano je mnogo vi{e. Znatan deo himself said: “I have reports that on top of that in krivice za te{ko}e monopolskog dru{tva sa many places tobacco was sown and grown without a prevelikom proizvodwom u 1887. godini svakako license”. Although it was a clear violation of the law, leì na samom dru{tvu, jer je vrlo kasno, tek u he continued, all that had been done in the first year martu 1887. godine, zavr{ilo spiskove proizvo- of the implementation of the tobacco monopoly law, |a~a kojima bi trebalo odobriti sa|ewe i posla- so he believed that “one could assume that it was lo ih ministarstvu finansija radi distribuci- done more out of ignorance, than with evil inten- 68 je dozvola seqacima (18. mart 1887). Seqaci, tions to smuggle”. In order for the producers not to me|u kojima su znatan deo ~inili oni koji su i be hit by the arm of the law, he decided “pursuant to ranije, pod slobodnim reìmom, sejali duvan, the Agreement with the tobacco Directorate” to sub- nisu znali {ta da rade u uslovima neizvesnosti sequently distribute licenses for planting to unin- – da li da sade ili ne. Ve}ina ih je rizikovala i formed producers, when they file applications.67 The posadila, veruju}i da }e se nekako izvu}i od Minister was probably right and it is very likely that kazne. Svakako, me|u wima je bilo dosta i onih farmers had been uninformed in that first year of koji ranije nisu sadili duvan, ali su u monopolu the operation of the monopoly, but in the course of videli {ansu da zarade na lepim cenama i the following years it turned out that they somehow sigurnom plasmanu. remained uninformed and that they were quite skill- Po~etkom te, 1887. godine ministar Mijato- fully working for their benefit and to the detriment vi} je, ose}aju}i da se problem ponavqa, poku- of the monopoly. And Mijatovi}’s forbearance just {ao pretwama: podsetiv{i da su kazne po zakonu inspired them to pretend to be uninformed in the o duvanskom monopolu „stroge” i rekav{i da je following year as well, and to plant immensely more prijavqeno znatno vi{e strukova nego {to je tobacco than was approved. odobreno prema potrebama, ministar je gromko For 1887, the monopoly company proposed izneo da „niko ne sme da rasadi vi{e nego {to planting in only 6 districts, stating that in those mu je odobreno”, kao i da prekr{ioce ~ekaju districts natural conditions for growing tobacco

POTPUNI MONOPOL IZ 1885. GODINE kazne od jedan dinar za svaki struk duvana koji je were better and that it was more convenient, for 69 vi{ak i wihovo ~upawe o tro{ku proizvo|a~a. purposes of control, to have production concen- I nije uspeo, jer je zasa|eno znatno vi{e nego trated in a smaller number of places. In terms of {to je odobreno. Polovinom godine promewena output volume, the proposal was for 6,000 metric je vlada i radikal Mi{a Vuji} preuzeo je mini- quintals. Farmers reported their intention to plant starstvo finansija. 114.2 million plants of tobacco, but the Monopoly Jo{ avgusta 1887. godine Vuji} je, posle àlbe Directorate authorized the planting of only 32.8 monopolskog dru{tva da lokalni organi ne dozvo- million. Nevertheless, much more was planted. A qavaju wihovim organima uni{tavawe nedozvoqe- fair share of the blame for the monopoly company’s nih sadova (a prema zakonu), dozvolio zavr{etak difficulties with overproduction in 1887 certainly uzgajawa duvana svima onima koji su ga ve} zasadi- rests with the company itself, because they finished li preko hiqadu strukova iako nisu imali dozvo- the lists of producers who should be allowed to lu, ali s tim da monopolska uprava nema obavezu plant and sent them to the Ministry of Finance for otkupa ilegalnog duvana i uz obavezu proizvo|a~a the purpose of license distribution to farmers with da duvan izvezu u roku od dve godine. Obrazloìo great delay, i.e. as late as March 1887 (18 March je takvu odluku time {to je „qudima javqeno da ne 1887).68 Farmers, among whom a good many had mogu gajiti duvan tek po{to su oni duvan rasadi- been sowing tobacco even before under the free li”,* pravdaju}i se wihovim nedovoqnim pozna- regime, did not know what to do during the period vawem zakona s obzirom da je to bila tek prva of uncertainty – to plant or not. Most of them took 70 godina vaèwa monopolskog zakona. Imao je na the risk and planted tobacco, believing that they umu veliku {tetu koju bi srpska poqoprivreda would somehow find a way to escape fines. Of pretrpela ukoliko bi se taj zasad uni{tio, ali i course, among them there was a fair number of ugled radikala na selu. Sa stanovi{ta monopol- those who had not sown tobacco before, but they skog dru{tva, ovakva odluka ministra bila je saw a chance in the monopoly to make money on svakako {tetna. Jer, i pored formalne obaveze da good prices and certain sales. seqaci sav vi{ak duvana izvezu u inostranstvo, At the beginning of that year, 1887, Minister bilo je sigurno da }e dobar deo ipak zavr{iti u Mijatovi}, sensing that the problem was about to doma}oj potro{wi (ko }e kontrolisati izvoz?) i repeat itself, tried with threats: after recalling that na taj na~in umawiti legalnu prodaju. A seqaci the fines under the tobacco monopoly law were su, i onako anarhi~ni, shvatili da taj monopol i “stringent” and indicating that considerably more nije ba{ mnogo stra{an i da dràva ne}e ili ne plants had been reported than approved based on sme da ih ka`wava zbog prekr{aja. the needs, the Minister resolutely said that “no one Radi pove}awa izvesnosti za proizvo|a~e, pa was allowed to plant more than he was approved”, as i radi wihovog uveravawa da }e cene biti umere- well as that offenders were facing fines amounting ne kako bi se smawio wihov interes, odlu~eno je to one dinar for each unauthorized tobacco plant da se objave otkupne cene za 1888, 1889. i 1890. plus the covering of the costs of their uprooting.69 71 godinu, kao u slede}oj tabeli. However, he failed, because much more was planted than had been authorized. In the middle of the year, * Prirodno bi bilo da seqaci po~nu da rasa|uju the government was changed and Radical Miša duvan tek po{to za to dobiju dozvolu! Vuji} took over the Ministry of Finance.

THE 1885 FULL MONOPOLY Otkupne cene duvana Purchase Prices of Tobacco As early as August 1887, after a complaint from the monopoly company that the local authorities I klasa 2–3 dinara were not permitting their bodies to destroy unau- I class 2–3 dinars thorized plantations (pursuant to the Law), Vuji} II klasa 1,4 dinara allowed all those who had already planted more II class 1.4 dinars than a thousand tobacco plants to finish the grow- klasa 1,3 dinara III ing cycle despite the fact that they did not have III class 1.3 dinars licenses, but without an obligation on the part of the IV klasa 1,2 dinara IV class 1.2 dinars Monopoly Directorate to purchase the illegal tobacco and with an obligation on the part of the produc- V klasa 1,1 dinara V class 1.1 dinars ers to export their tobacco within two years. He VI klasa 1 dinara explained such decision by the fact that “people VI class 1 dinar were informed that they were not allowed to grow tobacco only after they had planted tobacco”,* citing their lack of information about the law as justifica- Za 1888. godinu prijavqeno je ~ak 320,8 tion for that, since it was only the first year of the miliona strukova, {to je izraz ogromnog intere- application of the monopoly law.70 He took into sovawa srpskog seqaka za biqku koja je za veliku account not only the great damage that Serbian ve}inu wih bila nova, ali i wihovog pogre{nog agriculture would sustain if these plantations were uverewa da je 1 din/kg zaista najnià otkupna destroyed, but also the reputation of the Radicals in cena. Da je taj broj odobren ove i slede}ih godi- the rural areas. From the standpoint of the monop- na, Srbija bi postala duvanska velesila, kao oly company, such a decision from the Minister was Makedonija ili Gr~ka. Me|utim, privatni zaku- certainly detrimental because, despite the formal pac monopola svakako nije razmi{qao o izvozu i obligation of farmers to export all excess tobacco, it dugoro~nom razvoju proizvodwe duvana u Srbiji, was clear that a good portion of it would neverthe- ve} je traìo maksimum profita u ugovorenim less end up in domestic consumption (who was okvirima, {to je kasnije radila i dràva. Stoga going to control exports?), thus reducing legal sales. je odobreno sa|ewe tek svakog ~etvrtog prijavqe- And farmers, anarchical as they were, understood nog struka, tj. 84,5 miliona, dok je sa dozvolama that the monopoly was not all that frightful and that 72 zaista zasa|eno 71,9 miliona strukova, {to su the state did not want, or dare, to punish them for ipak velike brojke. Zanimqiva je ova razlika: their offenses. znatno je mawe zasa|eno nego {to je dozvoqeno. In order to increase the certainty for producers, Kao da su neki seqaci koji su dobili dozvolu and in order to provide assurances that the prices sa|ewa na kraju odustali. Ipak, verovatnije je da would be moderate so as to curb their interest, a su odustali od sa|ewa malih dozvoqenih koli~i- decision was taken to announce purchase prices for na i u celini se prebacili na ve}e ilegalno uz- 1888, 1889 and 1890, as in the previous table.71 gajawe, a kako im duvanski nadzornici ne bi ~e- sto zalazili u ku}u radi redovne kontrole. Oslawaju}i se na dobronamernost dràve iz * It would be only natural for farmers to start planting tobacco after they were issued with a 1887. godine, mnogi seqaci su i u 1888. godini relevant license!

POTPUNI MONOPOL IZ 1885. GODINE zasejali duvan bez ikakvih dozvola, neposredno For 1888, applications were submitted for as povrediv{i zakon. Da bi presekla takvu praksu, many as 320.8 million plants, which was an expres- odnosno da bi o~iglednim primerom odbila sion of huge interest for the Serbian farmer in a seqake od gajewa duvana bez dozvole, nova, konzer- plant which was new to a vast majority of them, as vativna vlada Nikole Hristi}a kaznila je sve well as of their mistaken belief that 1 din/kg was prekr{ioce po paragrafu za krijum~are, po~upa- really the lowest purchase price. Had that number la im zasade i osudila na velike nov~ane kazne. been approved in that and subsequent years, Serbia Te je kazne trebalo da tokom 1889. godine naplate would have become a tobacco superpower, like nova, radikalska vlada i wen ministar finansi- Macedonia or Greece. However, the private lessee of ja Mihailo Vuji}. No, Vuji} je re{io da zaustavi the monopoly certainly did not think about exports ruku zakona i otpisao je prekr{iocima, kojih je and long-term development prospects of tobacco bio veliki broj, nov~ane kazne, pozivaju}i se na production in Serbia, but tried to maximize its prof- ozbiqnu opasnost da ogroman broj porodica bude it within the agreed framework, which was later on potpuno upropa{}en egzekutivnim naplatama i done by the government as well. Therefore, the pravdavaju}i seqake zaka{wewem koje je mono- licenses were issued only for one in four requested polsko dru{tvo na~inilo prave}i raspored pro- plants, i.e. 84.5 million, while the number of plants izvodwe. Dakle, proizvo|a~i „nevino su se ogre- actually planted with licenses was 71.9 million.72 {ili o zakon”, a jedna ih je kazna ve} stigla – This difference arouses interest: considerably less duvan im je po~upan jo{ 1888. godine. Legalna was planted than approved, as if some farmers who proizvodwa je ove godine dostigla 1.152.207 had been granted licenses gave up on the planting in 73 kilograma, koliko je izneo otkup duvana. the end. Yet, it is more likely that they gave up on planting small approved quantities and switched Optu`ba protiv Vuka{ina Petrovi}a entirely to illegal growing of larger quantities, in order to avoid frequent visits of tobacco supervisors Vuka{in Petrovi} nije imao sre}e kao mini- to their houses for scheduled controls. star – vi{e puta bio je optuìvan za razna Counting on the benevolent disposition of the navodna nedela. Nijednom nije optuèn za kori- state demonstrated in 1887, many farmers sowed stoqubqe, ali ni optu`be nisu bile lake. Prvu tobacco without any licenses in 1888 as well, in od wih vodio je jedan skup{tinski odbor protiv direct violation of the law. In order to put an end to Petrovi}a ujesen 1886. godine. Za Petrovi}a tu such practice, i.e. to dissuade farmers from unau- nema dileme – on smatra da je potekla iz wegovog thorized tobacco growing by means of an obvious suparni{tva sa Mijatovi}em. „Primiv{i 23. example, the new Conservative government led by marta ministarstvo finansija od mene, êda je Nikola Hristi}, punished all the offenders under the neumorno trudio se da na|e ma kakvu zaka~ku u provision applicable to smugglers, uprooted their mome radu”, iz ~ega je, uz pomo} Mijatovi}evih plantations and imposed huge fines. These fines prijateqa \or|a Ne{i}a i Avrama Ozerovi}a, should have been collected in the course of 1889 by proisteklo skup{tinsko isle|ewe. Posledwa the new Radical government and its Finance Minis- dvojica, ina~e veliki trgovci, navodno su ter Mihailo Vuji}. However, Vuji} decided to stop Petrovi}u zamerili {to im nije, kao ministar, the arm of the law and he wrote off fines to the dozvolio da nezakonito uvezu nekoliko hiqada offenders, a fairly large number of them, citing as a

THE 1885 FULL MONOPOLY reason the serious danger that a huge number of families could be totally ruined by enforced collec- tions of fines and justifying farmers by the delays caused by the monopoly company in preparing a production schedule. Consequently, producers “innocently ran afoul of the law”, and one punishment had already befallen them – their tobacco was uprooted back in 1888. Legal production in that year reached 1,152,207 kilograms, which was the amount of the purchased tobacco.73

Accusations against Vukašin Petrovi} Vukašin Petrovi} was not very fortunate as a minister – he was accused of various alleged wrongdoings on several occasions. Although he was never accused of self-seeking, the accusations were not light. The first of them was made by a parliamentary committee against Petrovi} in the autumn of 1886. For Petrovi}, there was no dilemma about it – he thought it had arisen from his rivalry with Mijatovi}. “After taking over the Finance Ministry from me on 23 March, ^eda relentlessly endeavored to find any slippage whatsoever in my work”, which resulted, with the help of Mijatovi}’s friends Ðor|e Neši} and Avram Ozerovi}, in parliamentary scrutiny. The latter two, who were big merchants, allegedly bore Vuka{in Petrovi} Petrovi} a grudge for not allowing them, during his Vuka{in Petrovi} ministership, to unlawfully import several thousand tonnes of salt and thus make good money, circum- venting the monopoly; that was their retaliation.74 tona soli mimo monopola i tako lepo zarade, pa A large parliamentary committee for investigat- 74 su se sada svetili. ing the state of public finances made some serious Veliki skup{tinski odbor za ispitivawe objections to his work as Finance Minister in their stawa dr`avnih finansija stavio je u svom iz- report. In Petrovi}’s words, if these allegations had ve{taju ozbiqne zamerke na wegov rad u vreme been proven he “would have put a bullet through his dok je bio ministar finansija. Kada bi one bi- head “.75 There were two main objections, of which le dokazane, Petrovi} bi, kako je sam rekao, the first one was related to the misuse of the war 75 „kur{um u ~elo sebi dao”. Dve su osnovne ta~- (tobacco) loan, and the second to the mismanage- ke optu`be bile, prvo, lo{e kori{}ewe ratnog, ment of the tobacco monopoly.

POTPUNI MONOPOL IZ 1885. GODINE duvanskog zajma i, drugo, lo{e upravqawe du- With respect to the first objection, Petrovi} had vanskim monopolom. an easy job defending himself because the commit- Kod prve ta~ke optu`nice Petrovi} se lako tee made mistakes in the basic figures and logic. opravdao, jer je odbor izgre{io u elementarnim The second part of the report charged Petrovi} ciframa i logici. with mishandling the tobacco monopoly, whose Drugi deo izve{taja teretio je Petrovi}a za lease to the monopoly company, owned by Länder- lo{e poteze sa monopolom duvana, ~ija je predaja bank and Comptoir d’Escompte, was the basis for u zakup monopolskom dru{tvu, koje je bilo u the conclusion of the loan agreement. In this case, vlasni{tvu Lenderbanke i Eskontnog kontoara, too, objections of a formal nature were made first, bila osnova za zakqu~ewe zajma. I ovde su prvo that Petrovi} violated the law, but he easily proved iznesene zamerke formalne prirode – kako je that it was not true. Then Neši} and Ozerovi} again Petrovi} kr{io zakon, ali je on lako pokazao da moved to the second line of attack and claimed that to nije ta~no. Zatim su Ne{i} i Ozerovi} opet Petrovi} had entered into an unfavorable agreement pre{li na drugu liniju napada i tvrdili da je with the lessee and that he had pushed through a Petrovi} sklopio lo{ ugovor sa zakupcem i da je bad law on the tobacco monopoly, at the expense of isposlovao lo{ zakon o monopolu duvana, a na the national interests. {tetu zemaqskih interesa. To be precise, the objection against him was Elem, zamereno mu je da je otkupna cena duva- that the purchase price of the tobacco produced in na proizvedenog u Srbiji, koju je utvrdio zajedno Serbia, which he had set together with the Minister sa ministrom narodne privrede, preniska i da of the National Economy, was too low and that it }e dovesti do smawewa proizvodwe i osiroma{e- was bound to result in reduced production and wa mnogih krajeva Srbije u kojima se gaji duvan. impoverishment of many regions in Serbia where Tada{wa monopolska otkupna cena duvana kreta- tobacco was grown. The then monopoly purchase la se izme|u 1 dinar za kilogram najlo{ijeg i 3 price of tobacco ranged between 1 dinar for a kilo- dinara za kilogram najboqeg doma}eg duvana. gram of the poorest quality domestic tobacco and 3 Protivnici su tvrdili da se posledwih godina dinars for a kilogram of the best domestic tobacco. duvan bio skupqi, da je cena i{la i do 4–5 dina- The opponents claimed that in the recent years ra za najboqi duvan. „Pod za{titom duvanskog tobacco was more expensive, that the price went as zakona od posledwih godina, pod za{titom high as 4–5 dinars for the best quality tobacco. skupog regala za strani duvan”, rekao je Ozero- “Under the protection of the tobacco law since vi}, „na{a je sopstvena proizvodwa duvana u toku recent years, under the protection of the expensive posledwih 3–4 godine uveliko porasla”, a ova regal fee on foreign tobacco”, said Ozerovi}, “our niska cena }e ugroziti ta dostignu}a. own tobacco production has grown significantly Petrovi} im je odgovorio da je, u skladu sa over the past 3–4 years”, and this low price would zakonom, pri odre|ivawu cena imao u vidu doma- undermine these achievements. }e cene (dobio ih je od policije iz unutra{wo- Petrovi} replied to them that in fixing the sti), tro{kove proizvodwe i cene u susednim prices, in keeping with the law, he had had in mind zemqama. Tako su otkupne cene duvana u Austro- domestic prices (on which the information had been ugarskoj 16, 24 i 32 krajcare po kilogramu, {to je supplied by the police throughout the country), pro- samo 40, 60 i 78 para, zna~i nekoliko puta duction costs and prices in the neighboring coun-

THE 1885 FULL MONOPOLY jeftinije nego u Srbiji. Podsetio je jo{ da pre- tries. Thus the purchase prices of tobacco in Aus- visoke otkupne cene neminovno izazivaju kri- tria-Hungary were 16, 24 and 32 kreuzers per kilo- jum~arewe. I zaista, propisane otkupne cene du- gram, which was only 40, 60 and 78 paras, so sever- vana nisu bile niske, ~ak su bile vrlo povoqne al times cheaper than in Serbia. He also recalled za proizvo|a~e, o ~emu svedo~e ne samo cene u Au- that too high purchase prices inevitably give rise to strougarskoj, ve} i u Srbiji nekoliko godina smuggling. Indeed, the prescribed purchase prices kasnije, kada je dràva upravqala monopolom of tobacco were not low; they were even very favor- duvana i kada je prose~na otkupna cena 1893. go- able to producers, which was obvious not only from dine iznosila mawe od jednog dinara. A razlog the prices in Austria-Hungary, but also in Serbia visokih cena doma}eg duvana tih godina lako several years later, when the government ran the nalazimo u izjavi samog Ozerovi}a: dràva je tobacco monopoly and when the average purchase propisala visoke regalne takse na uvezeni duvan, price in 1893 amounted to less than one dinar. And ~ime je u~inila uvozni duvan skupim i neatrak- the reason for high prices of domestic tobacco in tivnim, pa je odmah cena duvana u Srbiji visoko those years can be easily found in the statement by sko~ila. Proizvo|a~i jesu od toga profitirali, Ozerovi} himself: the government imposed high ali su potro{a~i preskupo pla}ali svoj duvan. regal fees on imported tobacco, thus making Druga ozbiqna odborska zamerka bila je sle- imported tobacco expensive and unattractive, so the de}a: ni u zakonu, ni u ugovoru Petrovi} nije price of tobacco in Serbia immediately jumped high. predvideo obavezu zakupca monopola da otkupi Producers did make profit on that, but consumers izvesnu ili svu koli~inu doma}eg duvana, pa }e were paying too much for their tobacco. monopolsko dru{tvo mo}i da od doma}ih proiz- The second serious objection of the committee vo|a~a otkupi sitnicu od par stotina kilogra- was the following: Petrovi} did not provide for the ma, a ostatak da nabavi u inostranstvu. I Ne{i}, obligation of the monopoly lessee, either in the law trgovac i proizvo|a~ duvana, i Ozerovi} pri- or in the Agreement, to purchase a specific quantity znavali su da Petrovi} nije prekr{io zakon, of domestic tobacco, or all of it, so the monopoly ali su tvrdili da je obaveza srpskog ministra da company would be able to purchase from domestic se brine o doma}oj proizvodwi i dràvnim in- producers a trifle in the amount of a couple of hun- teresima. Stvar je potpuno jasna: za{titnici dreds of kilograms, and procure the rest abroad. doma}ih proizvo|a~a traìli su, prvo, izuzetno Both Neši}, a tobacco merchant and producer, and visoku otkupnu cenu duvana, a, zatim, obavezu Ozerovi} admitted that Petrovi} had not broken the monopolskog dru{tva da otkupquje doma}i law, but they claimed that it was an obligation of a duvan po tim cenama umesto jeftinijeg duvana Serbian minister to take care of domestic production iz uvoza. Ta je veza logi~na, jer visoka otkupna and interests of the state. The matter was absolutely cena ne moè biti realizovana ukoliko mono- clear: the protectors of domestic producers were ask- polsko dru{tvo moè da je zaobi|e uvozom jef- ing for, firstly, an extremely high purchase price of tinijeg stranog duvana. Dakle, ovde imamo na tobacco, and then an obligation of the monopoly delu jedan doma}i duvanski lobi, koji zaklawa company to purchase domestic tobacco at those sopstvene interese iza navodnih dràvnih i ko- prices instead of cheaper imported tobacco. That ji se èstoko bori protiv strane konkurencije. connection was logical, because the high purchase Petrovi}u je bilo lako da poentira: „izvesna price could not be realized if the monopoly company

POTPUNI MONOPOL IZ 1885. GODINE gospoda kaù: trebao si, prvo, da obaveè{ had a possibility to go around it by importing cheap- onoga ~oveka koji je uzeo na{ duvan da kupuje svu er foreign tobacco. So, what we have here is a koli~inu od nas, da mu metne{ bezgrani~no domestic tobacco lobby in action, which hides its veliku cenu kupovine, a da spusti{ bezgrani~no own interests behind the alleged state interests and nisku cenu za prodaju. To se moè izvr{iti u which fiercely fights foreign competition. It was easy 76 na{oj du{i, a u istini ne”. for Petrovi} to score: “Certain gentlemen tell me: I tako, Petrovi} se branio i odbranio. first, you should have put this man who took our Skup{tina ga nije osudila po zakonu o mini- tobacco under an obligation to buy all his tobacco starskoj odgovornosti, o tome nije ni bilo govo- from us, then you should have set an enormously ra, kako zbog dobre odbrane Petrovi}a, tako i high purchase price for him, while lowering the zbog podr{ke koju su mu dali Gara{anin, Mijato- absurdly low selling price. It can be done in our vi} i, iza scene, kraq Milan. Ona je samo usvoji- imagination, but not in reality”.76 la rezoluciju u kojoj su bile izraène èqe da se And so Petrovi} defended himself. The Assembly raskine ugovor o zakupu monopola duvana i drà- did not convict him under the law on ministerial va preuzme monopol u svoje ruke. Mijatovi} ga je responsibility; that was out of the question, owing to po zavr{etku sednice izqubio i ~estitao mu na both Petrovi}’s good defense and the support lent to odli~noj odbrani. Sam Petrovi}, pomalo neo~e- him by Garašanin, Mijatovi} and, behind the scenes, kivano zbog toga {to su ga i Mijatovi} i Gara{a- King Milan. The Assembly only adopted a resolution nin branili pred skup{tinom, optuùje napred- expressing the wish to terminate the Tobacco wake i tvrdi „da se cela kampawa protivu mene Monopoly Lease Agreement and to transfer the digla u nameri da se na mene, uqeza napredwa~- monopoly into the government’s hands. After the end kog, svali sva odgovornost za raspiku}stvo of the sitting, Mijatovi} kissed and congratulated him napredwa~ke finansijske uprave, koju je, u najva- for the excellent defense. Nonetheless, somewhat `nijim momentima, predstavqao êda”, dodaju}i unexpectedly, because both Mijatovi} and Garašanin 77 da se u Gara{aninu „quto prevario”. Ova se defended him before the Assembly, Petrovi} accused Petrovi}eva tvrdwa moè odràti samo ukoliko the Progressists and claimed “that the whole cam- se pretpostavi da je utisak koji je wegova odbrana paign against me was launched with the intention to ostavila bio tako ubedqiv da su organizatori put all the blame on me, a Progressist intruder, for akcije protiv Petrovi}a (Mijatovi} i Gara{a- the squandering by the Progressist financial authori- nin) morali promeniti pona{awe i, mo`da pod ties, which were represented, in the most important uticajem kraqa Milana, na kraju stati u wegovu moments, by êda”, adding that he had “grossly mis- odbranu, i protiv svoje voqe. judged” Garašanin.77 Petrovi}’s statement makes sense only under an assumption that his defense made such a convincing impression that the organiz- ers of the action against Petrovi} (Mijatovi} and Garašanin) had to change their behavior and, maybe under King Milan’s influence, to eventually rise in his defense, even against their will.

THE 1885 FULL MONOPOLY Mihailo Vuji} Mihailo Vuji} Nacionalizacija monopola

NATIONALIZATION OF THE MONOPOLY

Sporazum sa zakupcem Agreement with the Lessee konomska strana monopola uvek je problema- he economic side of a monopoly is always prob- Eti~na. Slobodno trì{te lako i dobro re{a- Tlematic. A free market resolves the issues of va pitawa obima proizvodwe i visine cena. Me- output volumes and price levels easily and effi- |utim, pojava monopoliste, makar i sa najboqim ciently. However, the emergence of a monopolist, namerama, obi~no naru{ava taj fini trì{ni even with the best of intentions, usually disturbs mehanizam jer iskqu~uje veliki broj pojedinaca that fine market mechanism, because it excludes a koji svi zajedno uti~u na razvoj doga|aja i ustano- large number of individuals who all together influ- vqava jedan centar u kome se donose sve odluke. A ence the course of events, and establishes a single takav centar nikada nije savr{en i ne uspeva u center where all the decisions are made. And such a svom zadatku. Monopolista uvek èli da smawi center is never perfect and it fails in its mission. A nabavnu cenu i pove}a prodajnu cenu. Vlada kao monopolist always wants to decrease the purchase monopolista to lako izvodi, i tada stradaju pro- price and increase the selling one. The government izvo|a~i duvana i kupci prera|evina. Kada je mo- as a monopolist always has an easy job doing that, nopol predat u zakup, onda se vlada brine o inte- and then tobacco producers and buyers of tobacco resu gra|ana i ko~i zakupca u wegovoj optimalnoj products suffer. When a monopoly is leased, then politici cena i proizvodwe, ali ostaje jedan the government takes care of the interests of citi- te{ko re{iv problem – dobro poznat problem zens and inhibits the lessee in his optimal pricing principala i agenta iz ekonomske teorije, gde se and production policies, but one very hard-to-solve interesi dràve, kao principala, i zakupca, kao problem remains – a well-known problem of the wegovog agenta, nikako ne poklapaju. Kako dovoq- principal and agent from the economics theory, no sveobuhvatan ugovor nije mogu}, ostaje {iroko where the interests of the state, as the principal, podru~je za kasnije sporove. Pored toga, neposto- and the lessee, as its agent, are not at all aligned. jawe konkurencije, bilo da je monopol u dràv- Since it is not possible to give an answer which nim rukama, bilo da je dat u zakup, neminovno do- would be comprehensive enough, plenty of uncov- vodi do leèrnijeg rada i slabije efikasnosti ered ground remains to give rise to disputes later poslovawa, {to se pokazalo i u slu~aju Srbije. on. In addition, the absence of competition,

93 Ustanovqavawe monopola soli i duvana u Sr- whether the monopoly be in the hands of the gov- biji bilo je deo {irih poslova – izgradwe i ernment or leased, unavoidably leads to sloppiness finansirawa èleznica i uzimawa zajmova na in work and lower operating efficiency, which was podlozi prihoda od soli i duvana za potrebe na- demonstrated in Serbia’s case as well. oruàwa vojske i ratovawa sa Bugarskom. Razlozi The establishment of the salt and tobacco za takvu politiku bili su vi{estruki: nu`da da monopolies in Serbia was part of large-scale opera- se dobije zajam u nepovoqno vreme, odsustvo tions – constructing and financing railroads and doma}ih stru~nih qudi koji bi vodili èlezni- borrowing against collateralized revenues from cu ili monopole, odbojnost liberalno nastroje- salt and tobacco for the needs of arming the mili- nog ministra finansija prema dràvnom upra- tary and waging a war against Bulgaria. The rea- vqawu preduze}ima i sli~no. I sam onda{wi sons for such policy were manifold: the urgent premijer Gara{anin je kasnije naveo sli~ne need to obtain a loan at an unfavorable time, a lack razloge za izdavawe monopola u zakup strancima: of local professionals to run the railroad company uslovqenost ratnog zajma zakupom monopola, or monopolies, the aversion of the pro-liberal nedovoqna stru~nost doma}ih qudi i èqa da Finance Minister to the public management of stranci, kao stru~niji, „organizuju jednu sasvim enterprises and the like. At some later point, then novu radwu” i podnesu neminovne gubitke iz Prime Minister Garašanin himself cited similar prvih godina rada. I wegova vlada je znala da je reasons for the leasing of the monopoly to foreign- monopol duvana „jedno korisno preduze}e koje na ers: the conditionality of the war loan, which was 78 kraju krajeva treba da pre|e u dràvne ruke”. linked to the monopoly lease, lack of local expert- Retko je ko u zemqi bio zadovoqan i finan- ise and a wish to have foreigners, as more compe- sijskim efektima monopola i na~inom na koji tent, “organizing a completely new activity” and ih stranci vode – vladalo je op{te mi{qewe da suffering the inevitable losses in the first years of su ugovori nepovoqni i da se Srbiji nanosi operation. His cabinet, too, was aware that the {teta lo{im poslovawem stranaca. Umereniji tobacco monopoly was “a useful undertaking, glasovi êdomiqa Mijatovi}a i Vuka{ina which at the end of the day should come into the Petrovi}a predstavqali su veliku mawinu u government’s hands”.78 horu onih koji su tvrdili da reke zlata teku iz Very few people in the country were satisfied Srbije. A stranci su, koliko su god mogli, kori- with both the financial effects of the monopolies stili one odredbe ugovora koje su im omogu}ava- and the manner in which foreigners were running le uve}awe zarada, pa i preko toga. them – an opinion was widespread that agreements êdomiq Mijatovi} je jo{ tokom 1886. godi- were unfavorable and that damage was being ne preuzeo, odnosno u ime dràve otkupio jednu inflicted on Serbia through the mismanagement by ~etvrtinu vlasni{tva nad preduze}em koje je eks- foreigners. The more moderate voices of êdomilj ploatisalo monopol duvana u Srbiji, ali nije Mijatovi} and Vukašin Petrovi} were a tiny minority smatrao da bi bilo dobro nasilno raskinuti ugo- in the choir of those who claimed that golden rivers vor. Nova radikalska vlada s kraja 1887. godine i were flowing out of Serbia. And foreigners, for their ministar finansija Vuji} bili su za o{triji part, used the provisions of the agreements which kurs prema zakupcima i prvo su krenuli da od enabled them to increase their profits as much as stranaca preuzmu monopol duvana. Monopolsko they could, and even beyond that.

NACIONALIZACIJA MONOPOLA dru{tvo prikazalo je u bilansu za 1887. godinu Already in the course of 1886, êdomilj Mija- gubitak od 1,6 miliona dinara, {to je, prema ugo- tovi} took over, i.e. bought on behalf of the state, voru, trebalo da nadoknadi srpska dràva. Bio je one quarter of the equity in the company which to, tvrdo se verovalo u Srbiji, ~ist bezobrazluk, exploited the tobacco monopoly in Serbia, but he ili poku{aj pqa~ke, zasnovan na nedovoqno pre- thought that it would not be good to forcibly termi- ciznim odredbama ugovora i na lo{em vo|ewu nate the agreement. A new Radical cabinet, which poslovnih kwiga od strane administracije mono- came into power at end-1887, and Finance Minis- polskog dru{tva. Bilo je i mawih nesporazuma i ter Vuji}, were in favor of a tougher position on the te{ko}a u odnosima vlade i monopolskog lessees and they set off to take over the tobacco dru{tva, kao u leto 1887. godine, kada je Mihailo monopoly from the foreigners first. The monopoly Vuji}, u skladu sa preporukom sanitetske komi- company accounted for a loss of 1.6 million dinars sije, odbio da da upotrebnu dozvolu za jedan in its balance sheet for 1887, which should have kontingent duvana, po{to je „sav konfiskovan been covered by the Serbian state under the Agree- duvan bu|av da je wegova upotreba po zdravqe ment. It was, according to a firm belief in Serbia, pu{a~a {kodqiva” i da se mora ili uni{titi utterly preposterous, amounting to an attempted ili izvesti iz Srbije; Vuji} je zamerio dru{tvu i robbery based on too vague provisions of the {to protura vrlo lo{ ma|arski duvan kao Agreement and poor keeping of the business books srpski, {to nije dozvoqeno Dodatkom uslovniku, by the administration of the monopoly company. i naredio je carinarnici Beograd da „pu{}a” There were also some minor misunderstandings 79 samo boqe vrste turskog duvana. and difficulties in the relationships between the Sa druge strane, monopolsko dru{tvo stalno government and the monopoly company. Once se àlilo ministru finansija na postupke such misunderstanding occurred in the summer of lokalnih vlasti u vezi krijum~arewa duvana. 1887, when Mihailo Vuji} refused to issue an Naime, krijum~arewe jeftinijeg duvana iz Tur- inspection certificate for a tobacco shipment, in ske bilo je prirodan odgovor na duvanski mono- line with a recommendation of the Health Board, pol. Tada je granica obi~no bila bez jakog nadzora since “all the seized tobacco was moldy and its use i sva{ta je uvoèno bez ve}e kontrole, pa i duvan. would be harmful to the health of smokers” and it Ili je duvan uvoèn èleznicim preko Vrawa do had to be either destroyed or taken out of Serbia; Ni{a, a sa la`nim deklaracijama. Na~ini su Vuji} also condemned the company for palming bili inventivni i brojni. A srpske vlasti nisu very bad Hungarian tobacco off as Serbian, which pruàle zakonom obaveznu pomo} organima mono- was not permitted under the Annex to the List of polskog dru{tva (duvanskim straàrima i nad- Terms and Conditions, so he ordered the Belgrade zornicima), ve} su pomalo navijali za svoje seqa- customs house to “let in” only better kinds of ne i gledali im kroz prste. êsto je padala re~ Turkish tobacco.79 predstavnika monopolskog dru{tva protiv re~i On the other hand, the monopoly company nekog kmeta ili pandura o predmetnom doga|aju, a repeatedly complained to the Finance Minister ministar finansija je, sa àqewem, obave{tavao about the acts of the local authorities regarding dru{tvo da istraga nije dala zadovoqavaju}e tobacco smuggling. Namely, the smuggling of rezultate, odnosno da se ~iwenice ne mogu ta~no cheaper tobacco from Turkey was a natural ustanoviti. Bio je to izraz op{te atmosfere u response to the tobacco monopoly. At that time,

NATIONALIZATION OF THE MONOPOLY Srbiji u kojoj stranci nisu oboàvani, niti je there usually was no strict surveillance of the bor- bilo ko od doma}ih, od ministra finansija na der and all kinds of things were imported without niè, ba{ èleo da im posao zakupa dobro po|e. very thorough control, including tobacco. Another Neposredan povod za raskid ugovora dao je route for importing tobacco was the railroad via Vuji} u leto 1887. godine, kada je pokazao ~vrstu Vranje and Niš, with forged declarations. The meth- nameru da po~ne da napla}uje regalnu taksu na ods were inventive and numerous. The Serbian uvezeni duvan. Na to je, po wegovom shvatawu ugo- authorities did not provide mandatory assistance to vora, srpska dràva imala pravo, a {to su the bodies of the monopoly company (tobacco napredwa~ki ministri finansija prestali da guards and supervisors) pursuant to the law; ~ine pred ucenom Lenderbanke u vreme realiza- instead, they even sided to some extent with their cije opcijskog ratnog zajma tokom sukoba sa fellow villagers and looked the other way. Very Bugarskom. Naime, êdomiq Mijatovi} je apri- often, it was the word of a representative of the la 1886. godine potpisao jedan protokol sa monopoly company against the word of a village predstavnicima dru{tva Hanom i Rapaporom, mayor or a policeman on the subject at hand, and koji je decidirano naveo da }e dru{tvo pri uvo- the Minister of Finance regretted to inform the zu duvana pla}ati samo carine i sporedne company that the investigation had failed to pro- carinske takse, a ne i regalne takse. Time je u duce satisfactory results, i.e. that it was not possible korist zakupaca protuma~ena dilema o tome da to establish exact facts. It was a reflection of a gen- li regalna taksa spada u carinske da`bine, eral atmosphere in Serbia, in which foreigners were kojih dru{tvo nije oslobo|eno, ili u poreze, not exactly adored, nor did any locals, from the kojih je oslobo|eno. Me|utim, Vuji} je tvrdio da Finance Minister downwards, really want them to ga dogovor prethodnog ministra ne obavezuje fare well in the lease business. kada je suprotan zakonu i ugovoru, kao i da regal- An immediate cause for the termination of the na taksa spada u carinske da`bine, po{to se, Agreement was provided by Vuji} in the summer of kako je rekao, napla}uje iskqu~ivo na uvezeni 1887, when he demonstrated a firm intention to duvan (a ne i na doma}i) i po{to je napla}uju start collecting the regal fee on imported tobacco. In carinarnice (a ne poreski organi), i to po his interpretation of the Agreement, the Serbian carinskom postupku. Dru{tvo nije pristalo da state was entitled to do that, only the Progressist pla}a regalnu taksu smatraju}i je i daqe pore- finance ministers had stopped doing it faced with zom, a ne carinskom da`binom, i pozvalo se na blackmail from Länderbank at the time of the real- ugovorni karakter protokola, potpisanog od ization of the option war loan during the conflict strane srpskog ministra. Tvrdilo je da se wego- with Bulgaria. Namely, in April 1886, êdomilj ve odredbe ne mogu mewati bez formalne sagla- Mijatovi} signed a Protocol with representatives of snosti obeju strana i izjavilo da }e ovaj pro- the company Hahn and Rappapor, which explicitly blem „izgubiti zna~aj” po{to je dru{tvo „tvrdo stated that the company was to pay only customs re{eno da ubrzo razvije proizvodwu doma}eg, duties and secondary customs fees on tobacco 80 srpskog duvana u najve}em mogu}em obimu”, imports, but not regal fees. In this manner, the ~ime bi uvoz postao prakti~no nepotreban. dilemma whether the regal fee belonged to the Ovim pismima zapo~eti su pregovori dveju group of customs duties, from which the company strana, koji su nastavqeni po~etkom slede}e, was not exempt, or taxes, from which it was exempt,

NACIONALIZACIJA MONOPOLA 1888. godine, kada je dru{tvo ponudilo dve opci- was resolved in favor of the lessees. However, Vuji} je: prvo, da se ugovor raskine, da srpska dràva maintained that he was not bound by the agreement preuzme sva prava i obaveze monopolskog reached by his predecessor if it was in contravention dru{tva i da, za uzvrat, isplati dru{tvu jedno- of the law and Agreement, as well as that the regal kratnu naknadu {tete od 500 hiqada dinara i da fee fell into the category of customs duties, since it otkupi po stvarnoj ceni sve objekte, materijale i was, as he said, levied solely on imported tobacco ma{ine, ukqu~uju}i i zalihe duvana; i drugo, da (but not on domestic) and since it was collected by se ugovor ne raskine, ali da srpska dràva dobi- customs houses (and not the tax authorities), in a je 50% u~e{}a u ~istoj dobiti, zatim da se ostva- customs procedure. The company did not accept to ri dogovoreno kontingentirawe proizvodwe pay the regal fee, still considering it to be a tax and duvana u zemqi kako bi se ona bar delimi~no not a customs duty, and invoked the contractual za{titila od inostrane konkurencije i da dr- nature of the Protocol, signed by a Serbian minister. àva garantuje dividendu dru{tva od 7% godi- They claimed that its provisions could not be {we. Ta je ponuda definitivno uobli~ena na changed without formal agreement of both parties konferenciji predstavnika srpske vlade i mo- and declared that this problem would “lose impor- nopolskog dru{tva od 13. marta 1888. godine. tance”, since the company was “set in its decision to Ova druga varijanta bila je nepovoqna za very soon develop the production of domestic, Ser- Srbiju, na {ta je odmah ukazalo Videlo. Naime, bian, tobacco, to the largest possible extent”,80 thus wome bi Srbija navodno dobila 50% vrednosti making imports practically unneeded. monopola, {to je i tada prakti~no imala, ali bi These letters initiated negotiations between the bila du`na da vlasnicima garantuje dividendu two sides, which were resumed in the beginning of od 7%, {to bi bio teàk i nepotreban teret za the following year, 1888, when the company offered Srbiju s obzirom da je dru{tvo, kako samo kaè, two options: first, to terminate the Agreement, with imalo znatne gubitke u dotada{wem radu. the Serbian state taking over all the rights and Napredwaci su i za prvu varijantu (preuzimawe duties of the monopoly company and in return mak- monopola) na{li re~i kritike, tvrde}i da nije ing a single bullet payment to the company as com- pametno otkupqivati za velike pare monopolsko pensation for damages in the amount of 500,000 dru{tvo kada }e, zbog gubitaka, i sami zakupci dinars, and purchasing all the facilities, materials uskoro jednostrano raskinuti ugovor, pa }e Sr- and machines at their market prices, including the bija bez ikakvih tro{kova i naknada dobiti na- tobacco stocks; and second, not to terminate the zad monopol duvana. Nisu zaboravili ni da pod- Agreement, in which case the Serbian state would vuku da je boqe da monopol bude u privatnim ru- obtain a 50 percent share in net profits, the agreed kama, jer nije dobro da dràva bude u „ve~nim su- introduction of quotas for tobacco production in the kobima, u stalnom trvewu sa narodom” oko kon- country would be carried out with a view to protect- 81 trole proizvodwe i trgovine duvanom. ing it, at least partially, from foreign competition Tokom pregovora, Mihailo Vuji} podsetio je and the state would guarantee to the company a div- predstavnike dru{tva na iskazani gubitak od idend of 7 percent a year. This offer was finally for- 1,57 miliona i ponudio je za jedno takvo neren- mulated at a conference between representatives of tabilno preduze}e samo 1,5 miliona dinara, {to the Serbian government and the monopoly compa- bi ukqu~ivalo i vrednost akcija i naknadu ny on 13 March 1888.

NATIONALIZATION OF THE MONOPOLY This second variant was not favorable for Ser- bia, and it was immediately pointed out by Light. Namely, according to this variant, Serbia would ostensibly obtain 50 percent of the value of the monopoly, which for all practical purposes it already had, but it would be under an obligation to guarantee to the owners a dividend amounting to 7 percent, which would have been a difficult and unnecessary burden on Serbia, bearing in mind that the company, as they themselves were saying, had had 82 {tete. Odluku o raskidu ugovora doneo je mini- considerable losses in their operation in the past. starski savet na sednici od 30. marta, kao i da }e The Progressists criticized even the first variant eksploataciju monopola dràva preuzeti u svoje (the takeover of the monopoly), claiming that it was ruke. Skup{tina je naredila raskid ugovora sa not wise to spend a lot of money on buying the Kontoarom i Lenderbankom zakonom usvojenim monopoly company when the Agreement was bound 14. aprila 1888, prihvativ{i bez ikakve disku- to be unilaterally terminated very soon by the sije Vuji}evu platformu, ali sa znatno ve}om lessees themselves, due to the losses, returning the naknadom zakupcima i, ~ak, bez diskusije: radi- tobacco monopoly to Serbia without any costs or kalski prvak Tau{anovi} je, kao prvi govornik, compensation. They also did not forget to underline pohvalio preuzimawe monopola i predloìo da that it was better for the monopoly to be in private se zakon usvoji aklamacijom. Tako je i bilo. hands, because it was not good for the state to be in Osnovna re{ewa: “eternal clashes, in constant friction with the peo- • da dràva preuzme svu aktivu i pasivu mono- ple” over the control of tobacco production and polskog dru{tva u Srbiji, ali da {teta iz trade.81 dotada{weg poslovawa koju }e platiti Srbi- During the negotiations, Mihailo Vuji} remind- ja ne sme pre}i 1 milion dinara po bilansu; ed the company representatives of the posted loss od tada pa do dana preuzimawa, dràva }e amounting to 1.57 million and offered for such a platiti akcionarima preostalih 15 hiqada loss-making company a mere 1.5 million dinars, akcija uz 5% kamate, i which would include both the value of equity and • da ministar finansija moè zakqu~iti compensation for damages.82 The decision on the zajam za isplatu tro{kova preuzimawa termination of the Agreement was taken by the

NACIONALIZACIJA MONOPOLA monopola od 5 miliona efektivnih, uz ka- Ministerial Council at its meeting of 30 March, as matu od najvi{e 9% godi{we na stvarno well as a decision that the government was to take primqenu sumu, koji }e se ispla}ivati iz over the exploitation of the monopoly. The Assem- prihoda dràvnog duvanskog monopola. bly ordered the termination of the Agreement with Po preuzimawu monopola iz stranih ruku, Comptoir and Länderbank by virtue of a law adopt- pred vladu se postavilo pitawe {ta raditi s ed on 14 April 1888, accepting Vuji}’s platform, wim. Jedna je mogu}nost nastaviti taj posao, ali u with a considerably higher amount of compensation dràvnoj reìji, a druga ukinuti monopol i for the lessees, without any discussion; further- vratiti proizvodwu (mo`da i trgovinu) duvana u more, a top-ranking Radical official, Taušanovi}, as vode slobodne konkurencije. Vlada se opredelila the first speaker, praised the takeover of the za prvu opciju, ne èle}i da dràvna blagajna monopoly and suggested that the law be adopted by izgubi jedan lep prihod. Ali, opozicija je pod- voice vote. And so it was. The key arrangements se}ala na stara obe}awa, pitaju}i Vuji}a „je li vi were the following: ono vikaste da je monopol duvana ne samo {tetan, • the state takes over all the assets and liabilities no i nezakonit? A da li vi bar sada poku{aste da of the monopoly company in Serbia, but the 83 ga uni{tite?”. operating loss of the previous years which is to Odmah sutradan, radikalska vlada je pala i be paid by Serbia must not exceed 1 million na zakonu je potpisan novi ministar finansija u dinars per balance sheet; between that point kabinetu Nikole Hristi}a, Mita Raki}, pa je and the day of the takeover, the state will pay to wemu ostalo u zadatak da na|e pare za isplatu the shareholders the remaining 15,000 shares vlasnika monopolskog dru{tva i da sprovede u with interest at a rate of 5 percent, and delo preuzimawe monopola duvana u srpske ruke. • the Minister of Finance may contract a debt âk su i napredwaci pozdravili preuzimawe earmarked for covering the costs of the monopola duvana, iako su ranije branili posao monopoly takeover in the amount of 5 million wegovog zakupa. „Iako }e izvr{ewe toga re{ewa in cash, with an interest rate of not more than 9 stati na{u dràvu velikih materijalnih `rta- percent per annum on the actual disbursement, va, opet je moralni dobitak od daleko nadma{ni- which would be repaid out of the proceeds of je vrednosti”, pisalo je Videlo, mada su, kao sva- the government tobacco monopoly. 84 ka opozicija, kritikovali operativna re{ewa. Upon taking the monopoly from the hands of foreigners, the government was faced with a ques- Mijatovi} i Vuji} tion of what to do with it. One possibility was to continue the operations, this time managed by the gov- Smena napredwa~ke ere radikalskom krajem ernment, and the other one was to lift the monopoly 1880-tih godina donela je zaokret u ekonomskoj and return the tobacco production (and maybe even politici, zasnovan na razli~itom vi|ewu eko- trade) into the realm of free competition. The gov- nomskih fenomena od strane vladaju}ih strana- ernment opted for the first possibility, not wanting ka i wihovih vode}ih ekonomista, ina~e mini- the public purse to lose a fine source of revenue. But stara finansija. Taj preokret jasno je vidqiv u the opposition insisted on reminding them of old oblasti duvana i odnosa dràve prema monopolu: promises and kept asking Vuji} “was it you who dok je napredwa~ki period obeleèn izdavawem shouted that the tobacco monopoly was not only

NATIONALIZATION OF THE MONOPOLY monopola privatnom dru{tvu, dotle je glavna od- detrimental, but also unlawful? And have you tried lika radikalskog bila wihova nacionalizacija at least now to destroy it?”83 i prelazak u dràvnu reìju. The very next day, the Radical government fell Napredwaci su u ekonomskoj politici bili and the law was signed by a new Finance Minister in najliberalnija politi~ka struja u onda{woj Nikola Hristi}’s cabinet, Mita Raki}; hence, he was Srbiji. Nasuprot uverewu radikala, pa i libe- left with the task of finding money for the payoff to rala, da dràva moè i mora odigrati veliku the owners of the monopoly company and of actual- ulogu u ekonomskom ìvotu neposredno se anga- ly carrying out the transfer of the tobacco monopoly ùju}i u za{titi i podsticawu doma}e indu- into Serbia’s hands. Even the Progressists welcomed strije i zanata, napredwaci su verovali da dr- the tobacco monopoly takeover despite the fact that àva nije u stawu da direktno u~ini ve}e kori- in earlier days they had defended the deal for leas- sti ekonomskom napretku, ve} da je boqe da se ing it. “Although the implementation of that solu- drì proverenih na~ela liberalnog kapitali- tion will entail substantial material sacrifices to be zma i ne ometa spontani razvoj preteranom dr- made by our state, the value of the moral gain àvnom intervencijom. remains far higher,” wrote Light, while criticizing Tako glavni ekonomista napredwaka i vi{e- the operational arrangements, as any opposition struki ministar finansija (i spoqnih poslova) would do.84 êdomiq Mijatovi} napada tada{wi „protekci- onski fanatizam, koji izaziva samo saàqewe”, i navodi za napredwake da „nismo protekcioni- Mijatovi} and Vuji} ste” i da „ne verujemo da su visoke carine The switch from the Progressists to the era of the bezuslovno ~arobno sredstvo kojim se industri- Radicals in the late 1880s brought about a turn- ja moè da stvori, a jo{ mawe da su one ~udo- around in economic policy, based on different views tvorno sredstvo kojim se osigurava politi~ka of economic phenomena by the ruling parties and

Omot cigaret papira Envelope of cigarette paper

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NACIONALIZACIJA MONOPOLA nezavisnost”. Uop{te, Mijatovi} je me|u srp- their leading economists, usually finance ministers. skim ekonomistima XIX veka najliberalnije This turnaround is clearly discernable in the field of orijentisan. Ili, kasniji predsednik Srpske tobacco and the attitude of the state toward the kraqevske akademije Milan \. Mili}evi} je monopoly: while the Progressist era was marked by 1881. godine, kao nadle`ni na~elnik, predlagao the leasing of the monopoly to a private company, svom ministru privatizaciju po{te, odnosno, the main feature of the Radical period was the kako je rekao, „da se po{ta pusti iz dràvnih nationalization of the monopolies and their transfer ruku i da se ustupi privatnima. Nekako je ruko- into the government’s hands. 85 vawe tom radwom veoma nespretno”. In economic policy, the Progressists were the Mijatovi} nije imao nikakvih dilema i most liberal political option in Serbia at that time. smatrao je za pogre{no mi{qewe „da dràva Contrary to the belief of the Radicals, and even Lib- treba da sama preduzme najva`nija i najve}a erals for that matter, that the state can and must preduze}a industrijska”, po{to misli da je do- play a major role in economic life by being directly bro da se i pri osnivawu novih grana ostavi engaged in the protection and encouragement of „privatnoj preduzimqivosti slobodna inicija- domestic industry and crafts, the Progressists tiva”. Razloge tome nalazio je u neminovno mawoj believed that the state is not able to make any direct efikasnosti dràvnih preduze}a u odnosu na contribution to economic progress, but that it is bet- privatna. Ukoliko dràva ipak èli ili mora ter for it to stick to the proven principles of liberal da zadrì neka dobra u svome vlasni{tvu, ili u capitalism and not to stand in the way of sponta- zemqama u kojima nema dovoqno ni znawa, ni ka- neous development with unwarranted government pitala, Mijatovi} je preporu~ivao izdavawe do- intervention. bara u zakup privatnicima, umesto da ih dràva Thus, the chief economist in the Progressive sama iskori{}ava. Time bi se pove}ali ekonom- Party and their Finance Minister (and Foreign Min- ski rezultati zato {to svaki zakupac radi u svom ister) several times, êdomilj Mijatovi}, attacked interesu, pa }e „u svom sopstvenom interesu gle- the then “protectionist fanaticism, which inspires dati da istera {to ve}i prinos”, kao i zbog only pity”, and said of the Progressists that they ve}ih prihoda za dràvu. Od mogu}a tri metoda were “no protectionists” and did “not believe that utvr|ivawa zakupnine („ispod ruke”, javna neo- high customs duties were some absolute magic grani~ena licitacija i ograni~ena licitacija), wand which could create industry, and even less Mijatovi} je odbacio davawe ispod ruke, po{to that they were a miraculous tool to ensure political je „skop~ano s mnogim velikim isku{ewima ve- independence”. Generally speaking, Mijatovi} was likih zloupotreba”. Neograni~enu licitaciju the most liberally oriented among the Serbian 19th nije preferirao, po{to je smatrao da na taj na- century economists. Milan Ð. Mili}evi}, who was to ~in dobro moè do}i u ruke ne onome ko je naj- become the President of the Serbian Royal Acade- sposobniji da ga najracionalnije iskoristi, ve} my, suggested to his minister in 1881, in his capaci- onome ko, mo`da u ponesenosti ili zbog lo{e ty as head of the relevant department, to privatize procene, ponudi najvi{e. Zalagao se za ograni~e- the national post office, i.e. in his words: “to let the nu licitaciju organizovanu za one potencijalne post office leave the government hands and be zakupce „o kojima se znade da mogu pruìti ceded to private ones. Somehow, the management 86 garantije za razlo`nu privredu”. of that activity is very clumsy “.85

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NATIONALIZATION OF THE MONOPOLY Izdavawe monopola duvana privatnom pre- Mijatovi} had no dilemmas and believed that the duze}u bilo je, kako se vidi, deo ekonomske fi- opinion according to which “the government should lozofije napredne stranke i, posebno, wenog carry out the most important and greatest industrial glavnog ekonomiste. Prvi Mijatovi}ev monopol undertakings by itself” was a misconception, since je monopol soli iz 1882. godine, kada ga je for- he was of the opinion that it was good, even in the mirao kako bi na{ao novac za otplatu zajma za founding of new branches, to leave “the free initia- naoruàwe, a bez tro{ka za buèt. Su{tinski, tive to private ingenuity”. He found the reasons for zarada od uvoza soli preba~ena je od nekolicine that in the inevitably lower efficiency of state-run stranih i doma}ih trgovaca novom monopoli- enterprises in comparison with the private ones. sti, a dràva je primila oru`je bez angaòvawa However, to the countries where the government buxeta. Svestan ekonomskih slabosti monopola, still wanted, or had, to keep ownership of certain Mijatovi} je u~inio dosta da bi ih sveo na naj- assets, or where there was not enough knowledge or mawu meru. Prvo, monopol je zakupcu – kredito- capital, Mijatovi} recommended the lease of assets ru ustupqen na licitaciji, {to je najkonkurent- to private entities, instead of their exploitation by niji metod izbora – ukoliko ve} monopol mora the state itself. That would enhance economic per- da postoji, najboqe je izdati ga na trì{an formance, because each lessee would work in his na~in, po{to }e tada ekonomski efekti biti own interest, so “out of his own interest he would najboqi. Drugo, zakonom je monopolisti zabra- endeavor to maximize the return”, and thus also wena maloprodaja „da bi se ova sloboda prodaje increase revenue for the state. From among three na mawe koli~ine obezbedila od konkurencije possible methods of leasing (“under the table”, pub- onoga koji pravo iskqu~ivog uvoza dobija”. Ma- lic open tender and restricted tender), Mijatovi} loprodaja je ostavqena slobodna i konkurentna. rejected leasing under the table, because “it is associ- Tre}e, zakonom su odre|ene maksimalne cene po- ated with many difficult temptations to commit seri- jedinih vrsta soli koje zakupac monopola moè ous abuse”. An open tender was not his favorite, da ustanovi, s tim da je ta granica bila odre|ena because he thought that in such a manner an asset prema dotada{wim cenama. Vlada i skup{tina could end up not in the hands of the one who is the èlele su, i uspele, da za{tite potro{a~e od fittest to use it in the most cost-effective way, but of eventualnog pove}awa cena koje bi monopolista, the one who, maybe in his enthusiasm or misjudg- budu}i slobodan od konkurencije, lako mogao da ment, made the highest bid. He was in favor of a izvede. Bila je to, dakle, kombinacija monopola restricted tender organized for those potential i trì{ta koja je mogla dobro da funkcioni{e. lessees “of whom it is known that they are able to Sli~no tome, pod Mijatovi}em su u privat- offer guarantees for reasonable management”.86 noj reìji izgra|ene prve pruge, a eksploatacija Obviously, the leasing of the tobacco monopoly èleznica tokom 1880-tih godina prepu{tena to a private company was part of the economic phi- privatnom preduze}u. losophy of the Progressive Party, and in particular of Sa druge strane, radikali su odbacivali its chief economist. Mijatovi}’s first monopoly was liberalni koncept spontanog dru{tvenog i eko- the salt monopoly of 1882, when he established it in nomskog napretka i shvatali dràvu kao mo}an order to find money for the repayment of a loan for instrument za postizawe dru{tvenih i ekonom- armaments, without incurring expenditure for the skih ciqeva, kao izraz kolektivne voqe koja zna budget. Essentially, the proceeds from the salt

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NACIONALIZACIJA MONOPOLA {ta je najboqe za narod i koja je u stawu da to naj- imports were shifted from a handful of foreign and boqe izvede. domestic merchants to the new monopolist, and the Mihailo Vuji}, vode}i radikalski ekonomi- government procured arms without spending from sta, predsednik vlade 1901–1902. godine i vi{e- the budget. Aware of the economic weaknesses of struki ministar finansija, zalagao se da eko- monopolies, Mijatovi} did a great deal to minimize nomska politika potpomaè stvarawe „narodne, them. Firstly, the monopoly was granted to the les- doma}e industrije” i to kreditirawem „udruè- see-creditor in a bidding procedure, which is the wa” i „proizvo|a~kih zadruga” iz buxeta, po{to most competitive selection method – if there has to „na prvo mesto dolazi poziv dràve, da kulturna be a monopoly, it is best to lease it in a market- i privredna poduze}a u op{te podsti~e i potpo- based manner, since that will produce the best eco- maè i to ne samo zakonskim regulisawem i nomic effects. Secondly, the law prohibited the za{ti}ivawem, ve}, prema potrebi, ba{ i samim monopolist from engaging in retail trade “in order materijalnim potpomagawem… Tako je npr. to safeguard this freedom of selling smaller quanti- dràva du`na, da saobra}ajna sredstva podsti~e, ties from the competition of the one who has been kredit organizuje, pa i samu privatnu radinost granted the exclusive right to import”. Retail trade potpomaè, jer u tome leì tek prava snaga naro- was preserved as free and competitive. Thirdly, the 87 da, pa naravno onda i svekolika mo} dràve”. law set maximum prices for certain types of salt, Poseban zna~aj radikali su pridavali za{tit- which the monopoly lessee could charge, with the nim carinama i uop{te spoqnotrgovinskoj ceiling being defined on the basis of the prices in politici (ministar i profesor Stevan R. Popo- the past. Both the government and the Assembly vi}), kao i koncesijama za izgradwu industrij- wanted and managed to protect consumers against skih preduze}a, kao instrumentima brze indu- possible price increases which a monopolist, being strijalizacije (Kosta Tau{anovi}). Tako su free from competition, could easily impose. So, it radikali, sve do XX veka, bili za aktivisti~ku was a combination of a monopoly and a market politiku dràve, za vlast koja }e znatno nepo- which could function very well. srednije uticati na ìvot gra|ana nego {to je to Along the lines of this model, during Mijatovi}’s ~inila napredwa~ka dràva. term in office, the first railroads were built through „Dràva je, kaè Vuji}, r|av privrednik, pa i the engagement of private parties, and the exploita- r|av vlasnik zemaqa, ona moè da upravqa dobri- tion of the railroads in the course of the 1880s was ma samo o velikom tro{ku. Weni ~inovnici, koji ceded to a privately owned company. nemaju neposredna interesa u dobicima dràvne On the other hand, the Radicals renounced the privrede, postaju nemarqivi, oni se ~esto priku- liberal concept of spontaneous social and economic pqaju po „blagonaklonosti”, a ne po wihovoj progress and understood the state as a powerful stru~noj spremnosti i podobnosti. Pa i u poli- instrument for achieving social and economic ti~kom pogledu nije dobro da dràva ima vrlo goals, as an expression of collective will, which mnogo agenata ili ~inovnika. Gde ima mnogo knows what the people’s best interests are and zvani~nih poloàja, tu gra|ani dobijaju voqu which is capable of accomplishing them in the best samo za dràvnu slu`bu, pa postaju naizmenice, possible manner. ili u jedno isto vreme servilnim i revolucio- Mihailo Vuji}, the leading Radical economist, narnim… Da dràva ne radi dobro industrijske Prime Minister from 1901 to 1902 and several

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NATIONALIZATION OF THE MONOPOLY times Finance Minister, advocated such economic policy which would support the creation of “national, domestic industry”, namely through providing loans to “associations” and “manufacturing cooperatives” out of the budget, since “the primary mis- Omot cigaret papira sion of the state is to encourage and support cultur- Envelope of cigarette paper al and economic undertakings in general, not only through legal regulation and protection, but also through concrete material support, as appropriate … Thus, for instance, it is the duty of the state to encourage the transportation industry, organize credit activity, and even support free enterprise, because that is where the true power of the people lies, and then, of course, the overall power of the state, too”.87 The Radicals attached special impor- tance to protective customs duties and foreign trade policy in general (Minister and Professor Stevan R. Popovi}), as well as to concessions for the construction of industrial companies, as instruments of fast industrialization (Kosta Taušanovi}). Thus, up until the 20th century, the Radicals were in favor of a pro- active role of the state, of a government which would much more directly impact lives of the citizens than the Progressist government did. “The state is”, says Vuji}, “a bad businessman, even a bad land owner, it can manage assets only with high costs. Its civil servants, who have no direct interest in the profits of the state economy, become lax, they are often recruited on the basis of “affiliation” and not according to their professional competence and suitability. Even politically, it is not good for the state to have very many agents or clerks. Where official positions are numerous, there is only appetite for civil service among citizens, so they become, in turns or at the same time, servile and revolutionary… That the government is not good at industrial activities is beyond dispute, so it would be unreasonable for it to be engaged in spin- ning, weaving, blacksmithing, shoemaking, or any other such activity. But there are activities which are

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NACIONALIZACIJA MONOPOLA radwe, to je neosporno, pa bi bilo nerazumno da so simple that even the state can perform them – for ona radi upreda~ku, tka~ku, kova~ku, obu}arsku i example, the fabrication of tobacco, post and tele- t.d. radwu. Ali ima radwa koje su tako proste da graph, even railroads; the state appears to be better ih i dràva moè da preduzme – na primer fabri- suited to exploit them than individuals or big compa- kaciju duvana, po{te i telegrafe, pa i èleznice, nies”88 (italics added). Although he was against dràva kao da moè jo{ boqe da eksploatuje no nationalization in principle, Vuji} nevertheless was 88 pojedinci ili velika dru{tva” (podvukao BM). flexible, as we can see, and allowed the state to take Iako je u na~elu protivan podràvqewu vlasni- over certain economic branches, believing that it {tva, Vuji} je, vidimo, ipak bio fleksibilan i could perform these activities without efficiency dozvoqavao je dràvi preuzimawe pojedinih pri- losses, maybe even profitably. vrednih grana veruju}i da ih ona moè obavqati On the basis of such views about the role of the bez gubitka efikasnosti, ~ak mo`da i uz dobitak. state as an owner, it is not surprising that Vuji}, in Na osnovu ovakvih pogleda na vlasni~ku his capacity as Finance Minister, nationalized not ulogu dràve, nije ~udno da je Vuji}, kao mini- only the tobacco monopoly, but also the monopolies star finansija, nacionalizovao ne samo mono- on salt and railroads. Not only did he believe that the pol duvana, ve} i monopol soli i èleznice. Ne monopolies were leased to the foreigners too cheaply samo da je verovao da su monopoli ustupqeni and that therefore they should be returned to strancima prejeftino i da ih zato treba vratiti domestic hands, but also that the state could effi- u doma}e ruke, ve} i da dràva moè da ih efika- ciently exploit them in its own. If that had not been sno sama eksploati{e. Da nije tako, poku{ao bi so, he would have tried to lease them to some other da ih izda u zakup nekome drugom privatnom private company, but on terms which would be more preduze}u, a pod uslovima koji bi bili povoqni- favorable to the state. Obviously, he did not even ji za dràvu. On na to, vidimo, nije pomi{qao. think about that. I tako, onaj sistem koji je po~etkom 1880- And thus, the system that Mijatovi} had built tih godina gradio Mijatovi} – izdavawe mono- in the early 1880s – leases of the monopolies to pola privatnim firmama – ru{en je krajem te private firms – was destroyed toward the end of decenije od strane Vuji}a, a kroz nacionaliza- that decade by Vuji}, through the nationalization ciju monopola. of the monopolies.

Zajam za isplatu monopola duvana Loan for the Tobacco Monopoly Payoff Da bi izvr{ila svoje finansijske obaveze prema In order to meet its financial obligations toward the dotada{wim zakupcima monopola duvana, srpska hitherto lessees of the tobacco monopoly, the Ser- vlada je, zakonom od 20. aprila 1888. godine, bian government was authorized, on the strength of ovla{}ena da moè uzeti potreban zajam od 5 a law dated 20 April 1888, to take out a required loan miliona dinara, sa kamatom koja ne sme pre}i in the amount of 5 million dinars, at an interest rate 9% godi{we na stvarni iznos zajma. Ovo je neo- which not be higher than 9 percent per annum on bi~no visoka kamata, nezabeleèna u dotada- the actual amount of the loan. This was an extreme- {woj, ali i budu}oj istoriji srpskih dràvnih ly high interest rate, unrecorded in the history of dugova. Takva visoka kamata propisana je kao Serbian public debt, both before and after this loan.

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NATIONALIZATION OF THE MONOPOLY Obveznica Obligation nali~je preliminarno ugovorenog vrlo niskog Such a high interest rate was set as a trade off for the kursa zajma. Ali, stvar nije toliko lo{a koliko initially agreed very low issue price on the loan. But lo{e izgleda. Po{to je razmotrio ponude tri this was not as bad as it seemed. After considering finansijske grupe, ministar finansija Mita Ra- bids by three financial groups, on 3 June 1888, ki} je 3. juna 1888. godine zakqu~io ugovor sa be~- Finance Minister Mita Raki} entered into an agree- kim Bankferajnom o zajmu u nominalnoj vredno- ment with the Viennese bank Bankverein on a loan sti od 10 miliona dinara u zlatu, a na osnovu jed- nominally worth 10 million dinars in gold, based on nog miliona obveznica vrednih 10 dinara svaka. a million 10-dinar bonds. Those were lottery bonds, Obveznice su bile lutrijske, uz izvla~ewe dobi- with a drawing of prizes. The repayment period was taka. Rok zajma utvr|en je na 65 godina, a prose~na fixed at 65 years and the average amount to be set suma koja }e se izdvajati za otplatu (godi{wina) aside for the repayment (the annuity) at 350,000 na 350 hiqada dinara.* Za garanciju zajma pred- dinars.* The collateral for the loan were tobacco vi|eni su prihodi od duvanskog monopola. monopoly proceeds. Na osnovu ovog ugovora primila je srpska On the basis of this agreement, the Serbian blagajna 6,1 milion dinara, a na slede}i, od treasury received 6.1 million dinars, in the follow- starijih zajmova razli~it na~in: ~istih 5 mili- ing manner, different from previous loan disburse- ona dinara bio je prinos zajma, {to daje bedan ment methods: 5 million dinars net was the return kurs od 50%; me|utim, Srbija je imala pravo, po on the loan, which gives a miserable issue price of ugovoru, na deo emisione dobiti od prodaje obve- 50 percent; however, under the agreement, Serbia znica, zna~i na deo razlike izme|u cene po obve- was entitled to a share in seigniorage from the sale znici koju srpska dràva prodaje Bankferajnu (5 of bonds, meaning in the difference between the dinara) i cene po kojoj Bankferajn proda obve- price of a bond which the Serbian state sells to znice krajwim kupcima. Bila je to participaci- Bankverein (5 dinars) and the price at which ja srpske dràve u eventualnom uspehu zajma, Bankverein sells these bonds to end-buyers. That odnosno podela rizika i zarade sa Bankferajnom. was a cut in the potential success of the loan for the Na ime ove dobiti srpska dràvna blagajna Serbian state, that is, the sharing of the risk and primila je jo{ 1,1 milion dinara, {to ukupno profit with Bankverein. On this basis, the Serbian daje 6,1 milion prihoda srpskoj blagajni i podi- state treasury received another 1.1 million dinars, 89 è fakti~ki kurs zajma na i daqe niskih 61%. which gave 6.1 million in total of inflow into the Interesantna je i sloèna konstrukcija ovog Serbian treasury and raised the actual issue price zajma. Zajam je formalno zakqu~en bez kamate. on the loan to a still low 61 percent.89 Me|utim, Srbija je po ugovoru imala obavezu da The way this loan was structured is interesting tokom amortizacionog veka (otplate) ispla}uje and complex. It was formally contracted without obveznice po rastu}oj ceni, tako da je prve, 1889. interest. However, under the agreement, Serbia

* ^. Mijatovi} svim srpskim poslanicima, * ^. Mijatovi} to all Serbian deputies, 11/6/1888, 11.6.1888., AS, MID, PO, 1888, F-II, I/1, pov. AS, MID, PO, 1888, F-II, I/1, ref. no. 513; To be br. 513; Preciznije, godi{wina je u prve ~eti- more precise, in the first four years, the annuity ri godine iznosila 400 hiqada, u slede}e ~e- was 400,000, in the following four years tiri 300 hiqada, a sve preostalo vreme 350 300,000, and for the rest of the repayment peri- hiqada. od 350,000.

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NATIONALIZATION OF THE MONOPOLY godine otkupqivala jednu obveznicu za 12,5 was obliged to redeem bonds during the discharge dinara, a posledwe, 1953. godine za 40 dinara. of the debt (repayment period) at a rising price, so Na taj na~in bi srpska vlada isplatila vlasni- in the first year, 1889, it redeemed a bond for 12.5 cima obveznica ukupno 22.790.000 dinara. Ta dinars, while in the last one, 1953, for 40 dinars. In rastu}a cena ukqu~uje, u stvari, kamatu. Pored this manner, the Serbian government would pay to toga, vlasnici obveznica imali su {ansu da na the holders of the bonds a total of 22,790,000 lutrijskim izvla~ewima ostvare dodatni dobi- dinars. That rising price actually included interest. tak: predvi|eno je 5803 zgoditka, gde je najmawi In addition, the holders of the bonds had an oppor- 50 i najve}i 300.000 dinara, a u ukupnom iznosu tunity for an additional gain, if they won a draw in od 14.405.000 dinara. the lottery: 5803 prizes were envisaged, with the Interesantan je i neuobi~ajen na~in otplate lowest one amounting to 50 and the highest one to zajma: Srbija je, po ugovoru, ispla}ivala godi- 300,000 dinars, and totaling 14,405,000 dinars. {we samo 350 hiqada dinara, {to je bilo dovoq- The manner for the repayment of this loan was no samo za anuitete (22,8 miliona ukupno), dok je interesting and unusual: under the agreement, Ser- Banferajn ispla}ivao lutrijske dobitke (14,4 bia was paying only 350,000 dinars a year, which miliona ukupno). Kamatna stopa koja je padala was enough just for the annuities (22.8 million in na teret Srbije iznosila je, dakle, 3% na nomi- total), while Bankverein was paying lottery prizes nalni iznos zajma, a 5,6% na efektivno primqe- (14.4 million in total). Consequently, the rate of ni iznos od 6,1 milion, {to je znatno ni`e nego interest which Serbia had to pay amounted to 3 per- kod ranijih zajmova (5% nominalnih, odnosno cent on the nominal amount of the loan, and 5.6 90 oko 7% efektivnih) i zato vrlo povoqno. percent on the actually disbursed amount of 6.1 A za{to bi i odakle Bankferajn pla}ao lu- million, This was considerably lower compared to trijske dobitke? Pla}ao je zato {to je posao bio earlier loans (5 percent in nominal terms and vi{e nego dobar, pa je na{ao ~ist ra~un za u~e- around 7 percent effectively), which is why it was {}e u otplati. A imao je odakle da pla}a. Naime, very favorable.90 Bankferajn je prodao ove obveznice za 13,5 dina- Why would Bankverein pay lottery prizes and ra po komadu, jer su one, iako nominirane na 10 out of what? It paid because the deal was more than dinara, donosile ne samo 12,5 do 40 dinara po good, so they had a clear financial motive to partici- komadu, ve} i mogu}nost atraktivnih lutrijskih pate in the repayment. And they had a source for dobitaka, te su bile popularne kod austrijske making these payments. Namely, Bankverein sold publike. Emisiona dobit Bankferajna iznela je, these bonds at 13.5 dinars a piece, because despite dakle, velikih 7,4 miliona dinara i iz te sume the fact that their face value was 10 dinars, they je bilo mogu}e izdvojiti jedan deo za kasnije oba- were bringing not only between 12.5 and 40 dinars veze, {to je i u~iweno: Bankferajn je izdvojio apiece, but also a chance to win attractive lottery 300 hiqada dinara za tzv. dopuwavawe fonda prizes, and therefore they were popular with the lutrijskih dobitaka. Zatim, Srbija je svake godi- Austrian investors. Consequently, Bankverein’s ne izdvajala 350 hiqada dinara za isplatu kupo- seigniorage reached a high 7.4 million dinars and out na, {to je u prvih tridesetak godina bilo znatno of that sum it was possible to set aside a part for sub- vi{e nego {to je potrebno, po{to je amortizaci- sequent obligations, which was actually done: oni plan predvi|ao vrlo nisku otplatu u prvim Bankverein set aside 300,000 dinars for the so-called

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NACIONALIZACIJA MONOPOLA decenijama i wihov rast u preostalim – na pri- replenishment of the fund for lottery prizes. Then, mer, 1889. 45 hiqada, 1914. 81 hiqada, 1927. 378 Serbia was setting aside 350,000 dinars each year hiqada i 1953. godine 2,89 miliona dinara. for the payment of coupons, which in the first 30- Stoga su se u periodu do 1920. godine pojavqiva- odd years was significantly more than required, le pozitivne razlike izme|u ugovorene fiksne since the amortization schedule envisaged very low godi{wine koju Srbija pla}a Bankferajnu od repayments in the first decades and a rise in repay- 350 hiqada i obaveza po amortizaciji obveznica, ments in the remaining ones – for example, in 1889 a koje su (razlike) iznosile od 305 hiqada u – 45,000, in 1914 – 81,000, in 1927 – 378,000 and 1889. do 269 hiqada u 1914. godini. Po{to su in 1953 – 2.89 million dinars. Therefore, in the peri- lutrijski dobici iznosili prose~no 220 hiqada od before 1920, positive differences appeared dinara godi{we, Bankferajn u prvim decenija- between the contractually fixed annuity that Serbia ma otplate uop{te nije morao da dodaje svoja paid to Bankverein, in the amount of 350,000, and sredstva za ovu namenu; tek je u posledwe tri the obligations arising from the redemption of decenije otplate zajma morao da dopla}uje iz bonds, which (the differences) ranged from 305,000 sopstvene blagajne za servisirawe lozova. Dru- in 1889 to 269,000 in 1914. Since lottery prizes gim re~ima, za otplatu kompletnog zajma amounted to 220,000 dinars a year on average, in (anuitet i zgodici) bilo je dovoqno da Srbija the first decades of the loan repayment Bankverein pla}a 350 hiqada dinara godi{we i da Bankfe- did not have any need to contribute its resources for rajn odvoji iz emisione dobiti 300 hiqada dina- this purpose; only in the last three decades of the ra i da ih kapitalizuje (zajedno sa neutro{enim loan repayment period did it have to pay an addi- sredstvima iz godi{wine koju pla}a Srbija) po tional sum from its own purse for servicing lottery 6% godi{we u prvim decenijama otplate. tickets. In other words, in order to repay the entire Ni Baknferajn nije pro{ao lo{e, naprotiv, loan (annuities and lottery prizes), it was enough if a ceh su podneli kupci obveznica, koji, zamajani Serbia paid 350,000 dinars a year and if Bankverein neobi~nom konstrukcijom zajma – prvi kupon za set aside 300,000 dinars from the seigniorage and 25% ve}i od nominalne vrednosti obveznice, capitalized it (together with the unspent portion of dosta lutrijskih dobitaka u prvih par godina the annuities paid by Serbia) at 6 percent a year in otplate – nisu primetili ono {to je bitno, a to the first decades of the repayment. je za wih vrlo nepovoqan amortizacioni plan, Bankverein did not fare badly, either. On the tj. vrlo nisku otplatu zajma u prvim godinama i contrary, the price was paid by the purchasers of decenijama i vrlo visoku u dalekoj budu}nosti. bonds who were misled by the unusual structure of Zbog neobi~ne tehnike ovoga zajma, dogodilo the loan – the first coupon 25 percent higher than se, eto, da tr`i{na vrednost wegovih obveznica the nominal bond value, plenty of lottery prizes in bude ve}a od nominalne vrednosti: tako je cena the first several of years of the repayment – and loza od nominalnih 10 dinara varirala u jesen failed to notice an important thing: a very unfavor- 1889. godine u Be~u oko 12 dinara, {to je able amortization schedule, i.e. very low repayments prirodno po{to se tada primicalo izvla~ewe of the loan in the first years and decades and very obveznica po ceni od 12,5 dinara. high in the more distant future. Bio je ovo jedan povoqan zajam, bez obzira na Due to the unusual technique of this loan, it naizgled nepovoqan kurs. Srpski zajmovi, kao somehow happened that the market value of its

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NATIONALIZATION OF THE MONOPOLY uostalom i svi drugi, postali su tehni~ki sloè- bonds was higher than their nominal value: thus in ni i vrlo nejasni, tako da je te{ko bilo svesti ih the autumn of 1889, the price of the lottery ticket in na jednostavnu meru. XIX vek nije, kao {to vidimo, Vienna of nominal 10 dinars fluctuated around 12 bio zadovoqan dana{wim normalnim zajmom tipa dinars, which was natural since it was the time A dinara nominalnih i primqenih, kamatna when the drawing of bonds at a price of 12.5 dinars stopa B%, rok V godina. Tada su izmi{qali razne was approaching. interesantne konstrukcije kako bi kod kupaca The terms of this loan were favorable, irrespec- stvorili utisak da je posao atraktivniji nego {to tive of the seemingly unfavorable issue price. Ser- jeste. I uspeli su da zamajaju ne samo kupce, ve} i bian loans, as all other loans for that matter, became na{e komentatore, koje su zaveli formalno nizak technically complex and very unclear, so it was dif- kurs zajma i ukupna suma otplate (uvek su ra~una- ficult to reduce them to a simple measure. The 19th li ve}u), dok su zanemarivali vrlo va`nu dinami- century, as we can see, was not satisfied with today’s ku otplate. normal loans, whose elements are: a nominal and Iz prinosa zajma ispla}en je, prvo, tro{ak disbursed amount of dinars – A, an interest rate of od 4,3 miliona dinara za preuzimawe duvanskog x% – B, and a repayment period of x years – C. Back monopola, zatim 650 hiqada za otkup 5 hiqada then, people invented various interesting structures akcija duvanskog monopola koje je zaloìo êdo- in order to create an impression among investors miq Mijatovi} dve godine ranije i, na kraju, that the deal was more attractive than it really was. ranije uzete mawe pozajmice od Lenderbanke i And they managed to mislead not only investors, 91 Handelsgezel{afta. but also commentators, who were seduced by the formally low issue price on the loan and the total Dràvna eksploatacija monopola amount for repayment (they always calculated a higher sum), while overlooking a very important Od 1. jula 1888. godine dràva je po~ela da eks- schedule of repayment. ploati{e ovaj monopol u sopstvenoj reìji. Out of the return on the loan, the following was Fakti~ko preuzimawe kasnilo je dva meseca, a paid: first, the costs of the tobacco monopoly za to vreme dru{tvo je radilo, kaù, na {tetu takeover in the amount of 4.3 million dinars, then dràve. U organizaciji monopola dràva nije 650,000 for the buyback of 5,000 shares of the tobac- promenila ni{ta, ~ak je zadràn, kao iskusan co monopoly pledged by êdomilj Mijatovi} two years i sposoban, stari Lenderban~in administra- before, and finally, smaller loans previously taken out tivni aparat. from Länderbank and Handelsgesellschaft.91 Velikoprodaja duvana izdavana je pod zakup licitacijama, a prvi zakupac bila je Kragujeva~- ka kompanija. U ~ar{iji se pri~alo da je ovaj Government Exploitation of the Monopoly zakup dat ispod ruke, da je Kompanije uzela On 1 July 1888, the government began the 13,5% ukupne dobiti, a da licitacioni postu- exploitation of this monopoly as its own operation. pak, naknadno ogla{en zbog pritiska poslovnih The actual takeover was delayed by two months, krugova, uop{te nije okon~an. Izgleda da Kompa- and during that period, according to rumors, the nija nije ~isto vodila duvanske poslove, jer je company operated to the detriment of the state. bila ukqu~ena u aferu Mite Raki}a. The government did not change anything in the

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NACIONALIZACIJA MONOPOLA Kragujeva~ka kompanija bila je tih godina organization of the monopoly, even the old Länder- jedno sna`no preduze}e u ekspanziji, koje se bavi- bank’s administrative apparatus was kept, as expe- lo raznim preduzima~kim, gra|evinskim i trgo- rienced and capable. va~kim poslovima. Osnovao ju je 1875. godine Tobacco wholesale was leased in auctions, and Marko Markovi}, a wen puni naziv bio Marko O. the first lessee was the Kragujevac Company. Rumor Markovi} i kompanija. Pored zakupa velikopro- had it that this lease was arranged under the table, daje duvana, odnosno nabavki duvana za monopol- that the Company took 13.5 percent of the total sko dru{tvo, izgradila je prugu Lapovo–Kraguje- profit, and that the auction procedure, subsequently vac, delove pruga Beograd–Vrawe i Ni{–Pirot u announced due to pressures from business circles, duìni od 120 kilometara i put Kraqevo–Ra{ka was never finalized. It seems that there was some- ibarskom klisurom, trgovala je raznim arti- thing fishy about the Company’s tobacco operations, klima (posebno suvim {qivama), uzela je 1885. because it was involved in the Mita Raki} affair. godine od dràve u zakup kr~marinu za 440 hiqa- The Kragujevac Company was a strong firm da dinara godi{we, organizovala je veleprodaju i undergoing a period of expansion in those years and maloprodaju duvana i ~ak je zakupila desetak u pursuing various entrepreneurial, construction and Bugarskoj. Imala je parni mlin u Beogradu. trade activities. It was founded in 1875 by Marko Poslove je vodio Kosta Zdravkovi}, tih godina Markovi}, and its full name was Marko O. Markovi} kraqev poslanik, a sin generala Stevana Zdrav- i kompanija (Marko O. Markovi}&Co.). In addition kovi}a, liberala i vi{estrukog ministra gra|e- to leasing tobacco wholesale, i.e. procuring tobacco vina. Bio je to jedan dokaz mogu}nosti da se i for the monopoly company, it built the Lapovo- srpski kapital i srpski preduzetnici nose sa Kragujevac railroad, parts of the railroads from Bel- strancima i da prave velike poslove. grade to Vranje and from Niš to Pirot, 120 kilome- Radikali i liberali ~esto su napadali Kra- ters in total, and the Kraljevo-Raška road through gujeva~ku kompaniju i Zdravkovi}a, ina~e ~lana the Ibar Gorge. It also traded in various goods (par- Glavnog odbora Napredne stranke, za navodne ticularly prunes) and had a steam mill in Belgrade. mahinacije sa duvanom i preterane zarade. Tako In 1885, it leased the excise duty on alcoholic bever- je Odjek tvrdio da kompanija ima ogromnih 1 ages from the state for 440,000 dinars a year, organ- milion dinara godi{weg profita na ime ugovo- ized wholesale and retail trade in tobacco, and even ra o prodaji duvana (700 hiqada od provizije od leased the tithe in Bulgaria. The operations of the 13,5% i 300 hiqada na razlici aìje). Zdravko- Company were run by Kosta Zdravkovi}, in those vi} je ovo nazvao la`ju i, sasvim ta~no, izneo da years a King’s deputy, the son of General Stevan iz bruto rabata od 13,5% koji Kompanija dobija Zdravkovi}, a Liberal and Construction Minister od dràve kao velikoprodavac, ona mora da several times. It was proof that Serbian capital and plati sve svoje tro{kove i naknadu maloprodav- Serbian entrepreneurs were able to compete with cima, {to, kako je rekao, iznosi oko 12,5%, ili foreigners and to strike large-scale deals. 680 od 750 hiqada; i drugo, kompanija pla}a The Radicals and Liberals often attacked the dràvi onim novcem koji prima od potro{a~a Kragujevac Company and Zdravkovi}, who was a (srebrom), pa ne ostvaruje nikakvu zaradu na member of the Main Board of the Progressive Party, aìji. Ponudio je, kao i par meseci ranije, da accusing him that he had allegedly committed fraud neko drugi preuzme taj posao i da wemu isplati with tobacco and made enormous profits. Thus,

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NATIONALIZATION OF THE MONOPOLY za od{tetu samo 10% navodne zarade, ali se ni Echo claimed that the Company had a huge 1 mil- 92 ovaj put nije na{ao niko zainteresovan. lion dinars in annual profits from the tobacco sales Po preuzimawu monopola duvana u svoje ruke, agreement (700,000 from commission at a rate of za v.d. upravnika monopola postavqen je Ra{a 13.5 percent and 300,000 from the difference in the Milo{evi}, sekretar Poreske uprave, ina~e agio). Zdravkovi} called that a lie and, completely umereni radikal. Budu}i da dràva nije htela da correctly, said that the Company had to pay, out of sama obavqa sve poslove, posebno one trgova~ke, the 13.5 percent gross discount that it was given by gledala je da nabavku duvana iz inostranstva i the government as a wholesaler, all its costs as well prodaju prera|evina ustupi nekom drugom, kva- as remuneration to retail traders, which, according lifikovanijem za taj posao. Da monopol u dràv- to him, amounted to around 12.5 percent or nim rukama ima svoje neizbe`ne mane pokazuje i between 680,000 and 750,000; moreover, the com- poku{aj nabavke duvana od strane predstavnika pany was making payments to the state with the same Uprave monopola, koji je u Solunu kupio money it had received from consumers (silver), so it aprila 1888, odmah po preuzimawu monopola od was not earning anything on the agio. As he had stranog dru{tva, dve hiqade dewaka pokazalo se done a couple of months earlier, he offered this deal „vrlo hr|avog duvana”, kako je odande prekornim for just 10 percent of the alleged profits to anyone 93 tonom javqao srpski generalni konzul. Da li je who would be interested to pay him out and take it u pitawu bila korupcija ili samo neume{nost over, but this time, too, there were no candidates.92 pra}ena nezainteresovano{}u, nije toliko ni After taking over the monopoly in its hands, the va`no – va`no je da dràvni slu`benici obi~no government appointed Raša Miloševi}, the Secretary slabo obavqaju {kakqive nov~ane poslove. of the Tax Administration, a moderate Radical, as Stoga je jo{ Mita Raki}, ministar finansija acting Monopoly Director. Since the government did u vladi Nikole Hristi}a, ubrzo po raskidu ugovo- not want to perform all the tasks by itself, in particu- ra sa zakupcem monopola, sklopio dva ugovora sa lar those commercial ones, it endeavored to assign srpskim trgovcima: prvi, 17. juna1888. godine o the procurement of tobacco from abroad and sales of nabavci duvana sa Ilijom Licikasom, kojim je tobacco products to somebody else who was better ovaj drugi preuzeo na sebe obavezu da za dràvni equipped to do that. The unavoidable deficiencies of monopol nabavqa sav potrebni duvan, posebno u placing a monopoly into the government’s hands inostranstvu (punomo}nik Licikasa i stvarni were demonstrated once again when the Monopoly partner bio je Kosta Zdravkovi}, iz Kragujeva~ke Directorate tried to procure tobacco by itself, 94 kompanije). Taj je ugovor raskinut slede}e godi- through its representative who bought in Salonika in ne, posle dugotrajnog natezawa, po{to je Licikas April 1888, immediately after the takeover of the isporu~io Upravi monopola oko 1.500 bala (57,9 monopoly from the foreign company, 2,000 bales of tona) duvana sumwivog kvaliteta. Opozicija je na- what afterward turned out to be “very bad tobacco”, pravila ~itavu aferu od ovog duvana zvanog Kava- as Serbia’s Consul General reported from there in a la Refuzo, dok je dràva obrazovala dve komisije reproving tone.93 Whether it was a case of corrup- za ocenu kvaliteta predatog duvana. Na kraju je po- tion, or plain incompetence coupled with lack of stignuto sporazumno poravnawe, a tek je {est go- interest, does not really matter – what matters is the dina kasnije Ra{a Milo{evi} priznao da je Kra- fact that public servants are usually bad in dealing 95 gujeva~ka kompanija u ovoj aferi bila nevina. with tricky financial transactions.

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NACIONALIZACIJA MONOPOLA That is why Mita Raki}, the Finance Minister in Nikola Hristi}’s cabinet, rushed to enter, soon after the termination of the Agreement with the monopoly lessee, into two contracts with Serbian traders: on 17 June 1888, into the first one on the procurement of tobacco with Ilija Licikas, under which the latter undertook to procure all the necessary tobacco for the government monopoly, particularly abroad (Licikas’s proxy and actual partner was Kosta Zdravkovi}, from the Kragujevac Compa- ny).94 That contract was cancelled the following year, after a long period of wrangling, because Licikas had delivered to the Monopoly Directorate around 1,500 bales (57.9 tonnes) of tobacco whose quality was dubious. The opposition constructed a whole scandal around this tobacco called Kavala Refuzo, while the government set up two commissions for the evaluation of the quality of the delivered tobacco. In the end, an amicable settlement was reached, and only after six years did Raša Miloševi} confess that the Kragujevac Company had been innocent in this affair.95 Upon the termination of its cooperation with Licikas, the government changed the system and procured tobacco it needed from tobacco merchants, without concluding any more contracts on the Ra{a Milo{evi} exclusive right and by doing business with individual Ra{a Milo{evi} merchants on a case-by-case basis. It used classic Po prekidu saradwe sa Licikasom, vlada je auctions for the selection of the best bit, which can promenila sistem i nabavqala je potreban duvan only be commended. And Ilija Licikas ran into other preko duvanskih trgovaca, ne zakqu~uju}i vi{e problems with the state: on 18 August 1889, he was ugovore o iskqu~ivom pravu, ve} posluju}i sa caught in an attempt to export four carloads of pojedinima od wih od prilike do prilike. Za tobacco to Austria without paying export duties. Two odabir najpovoqnije ponude koristila je klasi~- carloads had already crossed the border and reached ne licitacije, {to se samo mo`e pohvaliti. A Zemun, but they were returned.96 Ilija Licikas imao je i drugih problema sa And second, on 17 June 1888, the Finance dr`avom. Tako je 18. avgusta 1889. godine uhva}en Minister concluded a contract with Marko O. u poku{aju da izveze 4 vagona duvana u Austriju Markovi}, that is, with Kosta Zdravkovi} and the bez pla}awa izvozne carine. Dva vagona ve} su Kragujevac Company, pursuant to which the Min- bila pre{la u Zemun, ali su vra}ena.96 istry of Finance transferred the “exclusive right to

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NATIONALIZATION OF THE MONOPOLY I drugo, 17. juna1888. zakqu~io je ministar sell the products of the tobacco factory for the finansija ugovor sa Markom O. Markovi}em, entire country” to the Company; the contract was odnosno Kostom Zdravkovi}em i Kragujeva~kom valid for a year, and the Kragujevac Company kompanijom, kojim je Ministarstvo finansija undertook to purchase tobacco worth 5.5 million ustupilo „iskqu~ivo pravo prodaje proizvoda du- dinars at the prescribed selling price; Markovi} was van. fabrike za celu zemqu”; rok trajawa ugovora free to select wholesalers, but the Ministry of predvi|en je na godina dana, a Kragujeva~ka kom- Finance reserved for itself the right to issue licens- panija obavezala se da }e otkupiti duvana za 5,5 es to retailers, tobacconists; the retailers were enti- miliona dinara po propisanoj prodajnoj ceni; tled to 5 – 10 percent of the turnover, depending on velikoprodavce je mogao odabrati Markovi}, ali the district, while the Kragujevac Company had je pravo da izdaje dozvole maloprodavcima, 8.75 percent of the turnover on a net basis, after duvanxijama zadràlo za sebe ministarstvo the payments to retailers. The opposition attacked finansija; maloprodavci su imalo pravo na 5 do the government for granting the wholesale monop- 10% od prometa, a zavisno od okruga, dok je Kragu- oly, allegedly without a tender and with too high jeva~ka kompanija imala neto 8,75% od prometa, earnings for the Company (“it is mind-boggling just po isplati maloprodavaca. Opozicija je napala to think of this Raki}’s wrongdoing”), arguing that vladu {to je monopol velikoprodaje ustupila, the Company was earning about 700,000 dinars on navodno, bez licitacije i sa prevelikom zaradom this needless mediation, since the job could be per- za kompaniju („mozak nam se muti kad pomislimo formed by a single office with a couple of employ- i na ovo crno delo Raki}evo”), tvrde}i da je zara- ees in Belgrade.97 da kompanije na nepotrebnom posredni{tvu oko 700 hiqada dinara, po{to posao moè obaviti jedna kancelarija sa par slu`benika u Beogradu.97 The Mita Raki} Affair A scandal involving Finance Minister Mita Raki} Afera Mite Raki}a broke in September 1888, when Serbian Inde- pendence, an organ of the Liberal Party, published Afera ministra finansija Mite Raki}a izbila the information that a rumor had been going around je septembra 1888. godine, kada je Srpska nezavi- Belgrade for several days that Raki}’s position was snost, organ liberalne stranke, iznela u javnost shaken, and when Pester Lloyd reported from Bel- da se po Beogradu ve} nekoliko dana pri~a kako grade that Raki} was to resign because he had trans- je Raki}ev poloàj uzdrman i kada je Pester Lojd ferred the tobacco monopoly to the Kragujevac javio iz Beograda da }e Raki} podneti ostavku Company on unfavorable terms and because he had zbog toga {to je monopol duvana ustupio Kraguje- bought a large quantity of poor quality tobacco. Ser- va~koj kompaniji pod nepovoqnim uslovima i bian Independence also added that there were {to je kupio veliku koli~inu slabog duvana. reports that Raki} had been acting on his own, with- Srpska nezavisnost je jo{ dodala da se pri~a da out informing other members of the cabinet, and je Raki} radio bez znawa drugih ~lanova vlade i that he had invoked the approval from the highest da se pozivao na odobrewe sa najvi{eg mesta, {to place, which the highest place denied. “The story je najvi{e mesto demantovalo. „Govori se da je g. goes that Mr. Raki} received a handsome sum of Raki} dobio znatnu sumu novaca od onoga od koga money from the person whom he had purchased bad

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NACIONALIZACIJA MONOPOLA tobacco from. Even about the sale of the tobacco monopoly to the Kragujevac Company there are all kinds of rumors”, wrote Serbian Independence. That was followed by a ruthless attack on Mita, in which it was alleged that he, too, was affected by Bontoux’s golden rain, that he had had his finger in the transfer of the salt monopoly to Anglobank as well, that he was connected with “Mache” of Trieste, that he had “acquired nice quarters, and fine furniture, and fancy clothes, and full cellars and pantries”.98 Serbian Independence did not invent the story; the corroboration of it can be found in other sources as well. The definitive truth, however, was never established, only more or less convincing versions from some people remained, as well as Raki}’s consent to step down from his ministerial post without an investigation and trial. Vladan Ðor|evi}, a minister at that time, described the following three actual or alleged sins committed by Raki}. The first one had already been noticed during the final consultations about the lineup of Hristi}’s government, when Raki} Mita Raki} (at that time a ranking official in the Foreign Min- Mita Raki} istry) forgot in the desk next to which he was sitting a calling card on which he had personally written how je otkupio r|av duvan. Pa i o prodaji monopola much money he had received and from whom in rela- duvana kragujeva~koj kompaniji ima raznih tion to the appointments of honorary consuls abroad. glasova”, pisala je Srpska nezavisnost. Tome je It was found by Dani}, and it was known, or believed, usledio grub napad na Mitu kako je wega zaka~ila that it ended up with King Milan.99 i Bontuova zlatna ki{a, kako se znao na}i i kod His second sin was the modification of the terms ustupawa solskog monopola Anglo-banci, kako je of the contract with the Kragujevac Company. After povezan i sa tr{}anskom „Make”, kako je „stekao the tobacco monopoly was taken away from the for- lepe dvore, i sjajan name{taj, i gospodsko odelo, eigners, Raki} insisted in a cabinet meeting on i pune podrume i „{pajzove”.98 entrusting the monopoly to this firm, rather than to Srpska nezavisnost nije izmislila pri~u, ve} district dealers, as provided for by the law. He argued se o tome mogu na}i potvrde i na drugim stranama. that it was a much better choice from the financial Definitivna istina ipak nije utvr|ena, ve} su standpoint, since the Company had already been samo ostale mawe ili vi{e ubedqive verzije nekih engaged in selling tobacco in smaller quantities. qudi i pristanak Raki}a da odstupi sa ministar- After lengthy discussions, the government made a skog polo`aja bez istrage i suda. Vladan \or|evi}, concession to its minister, but it decided that the tada{wi ministar, opisao je slede}a tri Raki}eva contract should be concluded for six months, or a

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NATIONALIZATION OF THE MONOPOLY stvarna ili navodna greha. Prvi je prime}en jo{ year at most, which was noted down in the Protocol prilikom posledwih konsultacija oko sastava of the meeting. After some time, êdomilj Mijatovi} Hristi}eve vlade. Tada je Raki} (u tom trenutku found out that the contract was concluded for a year visoki ~inovnik Ministarstva inostranih dela) and a half, which Raki} admitted in a cabinet meet- zaboravio u stolu pored koga je sedeo vizitkartu na ing. He asserted that he had done that in agreement kojoj je svojeru~no napisao koliko je novca od koga with King Milan, but the King strongly denied that. dobio prilikom naimenovawa po~asnih konzula u His fellow ministers requested a modification of the inostranstvu. Wu je na{ao Dani}, a znalo se, ili contract in the part referring to the duration of the 99 verovalo, da je zavr{ila kod kraqa Milana. lease period, so Raki} did that and reduced it to one Drugi greh bila je izmena uslova ugovora sa year. Then he went abroad, and his representative Kragujeva~kom kompanijom. Po{to je monopol during his absence, êdomilj Mijatovi}, presented to duvana oduzet strancima, Raki} je na sednici his fellow ministers the original of the new contract, vlade navaqivao da se monopol poveri ovoj fir- from which it could be seen that Raki} had also mi umesto okru`nim prodavcima, kako je predvi- changed some other provisions, which brought gains |ao zakon, tvrde}i da je to finansijski daleko for the Kragujevac Company. In this manner, the boqi izbor, po{to je Kompanija i do tada proda- state suffered considerable damage, according to vala duvan na sitno. Posle duìh diskusija, Ðor|evi}, and some people claimed that they knew vlada je popustila svome ministru, ali je zakqu- the time and place where Raki} had received money ~ila da se ugovor sklopi na {est meseci, najvi{e from the Company. na godinu dana, {to je zabeleèno u protokol sed- Raki}’s third sin was related to tobacco procure- nice. Posle nekog vremena, êdomiq Mijatovi} ment. Mita Raki} submitted a report to the govern- ustanovio je da je ugovor zakqu~en na godinu i po ment that there was not enough tobacco in the coun- dana, {to je i sam Raki} priznao na sednici vla- try and that it should be procured without too many de. Tvrdio je da je to u~inio u sporazumu s kraqem formalities, for the statutory bidding procedure was Milanom, {to je ovaj energi~no demantovao. quite time consuming and during that period the Kolege ministri zahtevali su da se ugovor prome- tobacco factory would have to stand idle. Further- ni u delu o roku trajawa zakupa, a Raki} je to u~i- more, claimed Raki}, the Directorate had received nio i sveo ga na godinu dana. Zatim je otputovao u an offer of standard quality tobacco “from a certain inostranstvo, a wegov zastupnik tih dana, êdo- party”, at a price which was lower than previous miq Mijatovi}, doneo je svojim kolegama mini- ones. The government approved the purchase of up strima orginal novog ugovora, iz koga se videlo to 250,000 kilograms, which was considered to be a da je Raki} promenio jo{ neke odredbe kojima je sufficient quantity for the operation of the factory stvarao korist Kragujeva~koj kompaniji. Dràva pending the completion of the bidding procedure, je time bila dosta o{te}ena, prema \or|evi}u, a and authorized Raki} for that quantity. He bought a neki qudi tvrdili su da znaju vreme i mesto na full 775,000 kilograms from Ilija Licikas, an agent of kome je Raki} primio novac od Kompanije. the Kragujevac Company; the opposition claimed Tre}i Raki}ev greh ticao se nabavke duvana. that the purchase price of that bad tobacco was 60 Mita Raki} podneo je vladi izve{taj da u zemqi paras per kilogram, so the Company had earned a nema dovoqno duvana i da ga je potrebno nabaviti full 80 paras per kilogram from commission. Later bez mnogo formalnosti. Jer, zakonom propisani on, Mijatovi} informed the Company that these two

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NACIONALIZACIJA MONOPOLA postupak licitacije traje dosta dugo i za to vreme contracts were null and void and that the largest bi fabrika duvana morala da stoji nezaposlena. Uz quantity which could be imported was limited to to, tvrdio je Raki}, upravi je stigla jedna ponuda 300,000 kilograms, while the damage to the public duvana standardnog kvaliteta „sa izvesne strane”, a purse, according to the calculation made by the min- po ceni niòj od dotada{wih. Vlada se sloìla da isters themselves, was almost a million dinars. That se kupi do 250 hiqada kilograma, {to je smatrano autumn, in December, the rumor was going around dovoqnom koli~inom za rad fabrike do zavr{etka the town that Mihailo Vuji} had requested that Mita licitacionog postupka, i na toliko ovlastila Raki} “be officially indicted”.100 Raki}a, a on je kupio od Ilije Licikasa, agenta However, according to Vukašin Petrovi}, the story Kragujeva~ke kompanije, celih 775 hiqada kilo- was completely different. During Raki}’s absence grama. Opozicija je tvrdila da je kupovna cena tog from the country, êdomilj Mijatovi} told such awful lo{eg duvana 60 para/kg, tako da Kompanija zara|u- things about Raki} to the King and the Prime Minis- je celih 80 para/kg na proviziji. Mijatovi} je, ter that they threw him out of the cabinet immediate- kasnije, obavestio Kompaniju da ta dva ugovora ne ly. “êda depicted him as an ordinary thief who is vaè i da najve}a koli~ina koja se sme uvesti ne stealing with Kosta Zdravkovi} and others”; “he par- sme pre}i 300 hiqada kilograma, a ministri su ticularly pointed to the deal with Bankverein regard- sami ra~unali da je time dràvna kasa o{te}ena za ing the tobacco loan with lottery tickets”. However, skoro milion dinara. Te jeseni, decembra meseca, when Raki} came to his house to sort things out, Mija- po varo{i se govorilo da je Mihailo Vuji} traìo tovi} received him absolutely friendly, as Raki} per- 100 da se protiv Mite Raki}a „podigne javna tu`ba”. sonally told Petrovi}, and explained that the King and Me|utim, stvar se, po Vuka{inu Petrovi}u, the Prime Minister “had misunderstood him”. odvijala sasvim druga~ije. êdomiq Mijatovi} je According to Raki}, and Petrovi} believed him, the za vreme Raki}evog odsustva iz zemqe izneo kraqu whole thing was nothing but Mijatovi}’s foul play i predsedniku vlade tako stra{ne stvari o Raku}u which some people fell for. If Raki}’s and Petrovi}’s da su ga ovi odmah izbacili iz kabineta. „êda ga version of the events was accepted, it would mean that je prikazao kao ordinarnog lopova, koji krade s there was no mention whatsoever of Raki}’s under- Kostom Zdravkovi}em i drugima”; „naro~ito mu je handed dealings during cabinet meetings, nor did izneo posao sa Bankferajnom oko duvanskog zajma anyone see these harmful contracts. This version sa lozovima”. No, kada mu je Raki} do{ao u ku}u da would have hardly been worth mentioning, since too bi se objasnili, Mijatovi} ga je, po pri~awu many people knew about the scandal and since Raki} samog Raki}a Petrovi}u, do~ekao krajwe prija- tacitly admitted that he had done it when he stepped teqski i rekao da su ga kraq i predsednik vlade down without saying as much as a word, had he not „r|avo razumeli”. Po Raki}u, kome Petrovi} veru- died as an indebted man soon after that, in March je, sve je bila Mijatovi}eva intriga na koju su 1890, leaving his family to “live in strained circum- neki naseli. Ukoliko se prihvati verzija doga|aja stances on a meager pension”.101 Raki}a i Petrovi}a, zna~ilo bi da na sednicama According to Raki}’s father-in-law, Milan Ð. vlade nije bilo ni re~i o Raki}evim mahinacija- Mili}evi}, Raki} left behind a sizeable debt: 25,000 ma, niti je bilo ko video lo{e sklopqene ugovore. to Kreditna banka and 5,000 to the National Bank, Ova verzija te{ko da bi bila vredna spomena, jer excluding interest, and a debt to the Fund Direc- je previ{e qudi znalo za aferu i jer je Raki} torate. “These are the sources of money which many

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NATIONALIZATION OF THE MONOPOLY pre}utno priznao delo kada je bez re~i istupio iz were so concerned about”, said Mili}evi}. Even vlade, da nije ubrzo, marta 1890. godine, umro kao later, Raki}’s family struggled for a whole decade zaduèn ~ovek, a da wegova porodica kasnije „ì- with his debts.102 So, if the family remained poor, 101 vi kukavno od neznatne penzije”. the question is what happened to the money. The Prema Raki}evom tastu Milanu \. Mili}evi- story about the foul dealings remains, after all, }u, za Raki}em su ostali znatni dugovi: 25 hiqada unresolved for now. Kreditnoj banci i 5 hiqade Narodnoj banci, ne The Raki} affair was concluded with his removal ra~unaju}i kamate, i dug Upravi fondova. „Eto from the cabinet, i.e. his resignation. In a way, it was otkud pare koje su mnogoga bole u o~i”, kaè Mili- an indirect confession that not everything was clean }evi}. I kasnije se, celu deceniju, Raki}eva poro- and that there was some truth in journalists’ allega- 102 dica mu~ila sa dugovima. Ako je porodica osta- tions about Raki}’s underhanded dealings. “Differ- la siroma{na, pitawe je gde se deo novac. Pri~a o ences between the Minister of Finance and his col- lopovluku ostaje, ipak, nere{ena do daqeg. leagues in the cabinet”, announced Mijatovi} Raki}eva afera zavr{ena je wegovim uklawa- euphemistically “gave rise to the Minister of wem iz kabineta, odnosno wegovom ostavkom. Finance’s withdrawal from the cabinet”.103 The gov- Time je posredno priznato da sve nije bilo ~isto ernment did not insist on an official investigation i da je u novinskim optu`bama o Raki}evim and possible punishment, because such a procedure mahinacijama bilo istine. „Nesuglasice izme|u would have been politically harmful to it as well, ministra finansija i wegovih drugova u kabine- while Raki} probably assessed that it was better to tu”, objavio je blago Mijatovi}, „donele su sa keep it quiet. And so the unfortunate ministership of sobom istupawe ministra finansija iz kabine- Mita Raki} ended on 8 October 1888. 103 ta”. Vlada nije insistirala na sudskom utvr- It was not until a year later, in late 1889, during |ivawu ~iwenica i eventualnom ka`wavawu, jer the Radical government and Assembly, that a par- bi i woj taj postupak naneo politi~ku {tetu, a i liamentary procedure was launched for determining Raki} je, izgleda, procenio da je boqe da se ne Raki}’s responsibility. The Assembly did not have naru{ava ti{ina. I nesre}no ministrovawe time to review the case, because Raki} died soon Mite Raki}a zavr{eno je 8. oktobra 1888. godine. after that, on 5 March 1890, although his adver- Tek godinu dana kasnije, krajem 1889. godine, saries did not leave him alone with their campaign u vreme radikalske vlade i skup{tine, pokrenut even on his deathbed. je skup{tinski postupak za utvr|ivawe odgovornosti Raki}eve. Skup{tina nije stigla da razmatra slu~aj, jer je Raki} ubrzo, 5. marta 1890. go- Radicals in Power dine, umro, a protivnici mu svojom kampawom Following the abdication of King Milan in February nisu davali mira ni na samrtnoj posteqi. 1889, a Radical government was formed, with Mihai- lo Vuji} as Finance Minister, while Lazar Pa~u was Radikali na vladi appointed as Director of the Monopoly Directorate. The story goes that he accepted the appointment only Po abdikaciji kraqa Milana februara 1889. after a long period of resisting Vuji}’s persuasion. godine, uspostavqena je radikalska vlada, sa Mi- The business with tobacco constantly provoked hailom Vuji}em kao ministrom finansija, dok suspicion, as well as founded and unfounded

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NACIONALIZACIJA MONOPOLA Lazar Pa~u Lazar Pa~u je za upravnika uprave monopola postavqen protests, so the Radical government released the Lazar Pa~u. Ka`u da je prihvatio postavqewe tek Kragujevac Company and took a different track. In posle dugog opirawa Vuji}evim navaqivawima. May 1889, a tender was held for the assignment of Poslovawe sa duvanom stalno je izazivalo po- rights to tobacco wholesale in all the districts in Ser- dozrewe i opravdane i neopravdane proteste, pa bia. The main requirements were: the willingness to je radikalska vlada otpustila Kragujeva~ku kom- trade at the prices prescribed by the state, i.e. the paniju i krenula drugim putem. Maja 1889. godi- willingness to adhere to the applicable law on the ne odr`an je konkurs za ustupawe prava veliko- tobacco monopoly, as well as the willingness to pur- prodaje duvana u svim okruzima Srbije. Osnovni chase from the Monopoly Directorate at least the uslovi bili su slede}i: prvo, spremnost da se quantity defined by the Directorate for each district

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NATIONALIZATION OF THE MONOPOLY trguje po cenama koje propisuje dràva, odnosno (ranging from 55,000 to 550,000 kilograms). In spremnost na po{tovawe vaè}eg zakona o mono- each district, there would be one wholesaler, retail- polu duvana, kao i spremnost da se od uprave ers would be designated by the Monopoly Direc- monopola nabavi najmawe ona koli~ina koju je torate, the wholesaler would pay the tobacco to the uprava odredila za svaki okrug (od 55 do 550 Directorate before delivery, he would be obliged to hiqada kilograma). U svakom okrugu bi bio jedan maintain books and to secure a good assortment velikoprodavac, maloprodavce bi odre|ivala and regular supplies, and between 13 and 17 per- uprava monopola, duvan bi velikoprodavac pla- cent of the gross turnover, depending on the dis- }ao upravi pre ekspedicije, on bi morao da vodi trict, would go to him. In order to win the tender, kwige i da obezbedi dobar asortiman i redovnu one had to offer to buy the largest quantity. The snabdevenost, a pripadalo bi mu izme|u 13 i 17% tender was not very successful: for a mere nine dis- od bruto prometa, zavisno od okruga. Pobednik tricts, there were bidders who met the requirements tendera bio bi onaj ko ponudi najve}i otkup. stipulated in the invitation to tender, while for the Uspeh konkursa bio je slab: tek za devet okruga remaining twelve, there were no bids fulfilling these javio se neko ko je zadovoqavao „ofertalne” requirements.104 uslove, dok za preostalih dvanaest nije bilo po- After taking over the monopoly, the state had to 104 nuda u skladu sa tim uslovima. import tobacco for the needs of the Belgrade factory Po preuzimawu monopola u svoje ruke, dràva of tobacco products. It was first interested in Turk- je morala uvoziti duvan za potrebe beogradske ish tobacco, which was widely used in Serbia at that fabrike prera|evina. Prvo se zainteresovala za time, and ordered the Envoy in Constantinople, Sto- turski duvan, koji je bio {iroko kori{}en u jan Novakovi}, to probe the ground and find out Srbiji toga doba, i naloìla poslaniku u Cari- about the prices on the local market and to report gradu Stojanu Novakovi}u da ispita teren i utvrdi on them. Novakovi} reported that the price was two i javi cene na lokalnom trì{tu. Novakovi} je to three grochen (about half a dinar) for a kilo of javio da je cena dva do tri gro{a (oko pola dinara) lower quality tobacco, so in early June 1889, a group za kilo slabijeg duvana, pa je po~etkom juna 1889. of professional staff from the Monopoly was sent to godine poslana jedna grupa stru~nih slu`benika purchase 250,000 kilograms. That group bought a monopola da nabavi 250 hiqada kilograma. Ta je mixture of various tobacco varieties, from lower grupa kupila jednu me{avinu duvana raznih sorti, quality ones to the medium quality tobacco vari- od slabijih do sredwih, koje su sami odabirali na eties, which they had picked themselves on the spot licu mesta u magacinima turske uprave monopola. in the warehouses of the Turkish Monopoly Direc- Na kraju je cena, ukqu~uju}i i tursku izvoznu torate. The final price, including Turkish export 105 carinu, iznela 1,02 dinara po kilogramu. duties, reached 1.02 dinars per kilogram.105 Pogledajmo prodajne cene duvana i cigareta Let us take a look at the selling prices of tobacco 106 tih godina, date po klasama kvaliteta. and cigarettes in those years, by quality class.106 Vidqivo je da su najkvalitetniji turski duvan It is obvious that the prices of the best quality i cigarete pojeftinili,verovatno zato da bi se Turkish tobacco and cigarettes went down, probably privukla publika, a oni slabijeg kvaliteta posku- in order to attract consumers, while the prices of peli. Ovo drugo je verovatno bilo posledica na- those whose quality was poorer went up. The latter mere uprave monopola da olak{a prodaju srpskom was probably a consequence of the intention on the

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NACIONALIZACIJA MONOPOLA Cene duvana 1887. i 1889. part of the Monopoly Directorate to boost the sales Tobacco prices in 1887 and 1889 of Serbian tobacco and cigarettes and thus reduce vrsta duvana 1. 5. 1887. 1. 7. 1889. the share of Turkish tobacco in the medium quality Type of tobacco 1/5/1887 1/7/1889 segment. Lower quality Serbian tobacco was only DUVAN kg. seemingly cheaper: in fact, the number of categories TOBACCO kg was reduced, probably because it was deemed that turski specijal 60 50 the number of categories (six) was too high and that Turkish special it constituted an unnecessary luxury from the times 40 40 I of the private lessee, while the price of the poorest II 25 30 tobaccos (two lowest categories) remained III 16 20 unchanged. In the case of Serbian cigarettes, only srpski I 14 15 the price of the most inferior kind was changed, Serbian namely significantly reduced. II 12 10 10 7,5 III 7.5 Farmers and the Monopoly IV 85Following the formation of the new government, 7,5 V Radical followers started to believe that the Radi- 7.5 cal realm had indeed begun, without taxes and VI 5 with the people’s state, with the state that would CIGARETE 1000 kom. respect the farmer and work in his favor. Expecta- CIGARETTES 1000 pc. tions were generally high, and thus also in the field turske spec. 75 65 Turkish special of tobacco growing. Under the monopoly law, the government should, on the basis of a proposal I 50 50 from the monopoly lessee, issue licenses to tobacco II 35 40 producers, i.e. to the farmers who were growing it. `enske/ III 25 30 The forbearance of the finance ministers in the women’s/III srpske previous years immediately caused a natural con- I 25 25 Serbian sequence: in1889 as well, many farmers planted tobacco, again without licenses, in all parts of the II 20 20 country, even in many regions where it had not III 15 10 been grown before. There was an imminent danger 10 IV of overproduction, estimated at 3,000 tonnes, and Vuji} found himself in a dilemma about what to duvanu i cigaretama i da na taj na~in smawi do. He did not want to (or could not) punish farm- u~e{}e turskog duvana u sredwem segmentu po kva- ers, and he was not in the position to purchase all litetu. Slabiji srpski duvan je tek naoko pojefti- produced tobacco from them. So he found a solu- nio: u stvari, smawen je broj kategorija, verovatno tion which was not really in keeping with the law, zato {to se smatralo da je broj kategorija ({est) but for him it was practical, as a way out of a diffi- prevelik i da predstavqa nepotrebno luksuzirawe cult situation: he issued licenses en bloc to all the

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NATIONALIZATION OF THE MONOPOLY Otkup duvana From a tobacco purchase campaign iz vremena privatnog zakupca, dok je cena najsla- producers from old tobacco regions, while sending bijih duvana (dve najniè kategorije) ostala neiz- word to others that the government would not mewena. Kod srpskih cigareta, samo je najslabijoj purchase their tobacco and advising them to vrsti cena promewena, i to znatno smawena. export it. He found justification for his move in the delay with which the Monopoly Directorate Seqaci i monopol prepared the production schedule. In order for everything to appear legal, he ordered the growers Po stvarawu nove vlade, radikalski narod pove- to give their word that they would direct their rovao je da je zaista do{lo radikalsko carstvo, tobacco to exports and then they would be issued bez poreza i sa narodnom dràvom, sa dràvom licenses.107 The new Radical government was not koja }e po{tovati seqaka i i}i mu na ruku. O~e- able to withstand the pressure from its grassroots kivawa su bila velika, pa svakako i u oblasti and it approved the planting of as many as 198.5 gajewa duvana. Po zakonu o monopolu, dràva je million tobacco plants in 1889, which was 3 to 6 trebalo da, na osnovu predloga zakupca monopo- times more than in other years of this period. The la, izdaje dozvole proizvo|a~ima duvana, tj. only result of the minister’s a ction was perjury seqacima koji ga gaje. Blagost ministara finan- committed by farmers, because they eventually sija u prethodnim godinama odmah je donela brought part of their tobacco into the old tobacco prirodnu posledicu: i te 1889. godine mnogi se- districts for purchase and thus tricked Vuji}. On a qaci zasadili su, opet bez dozvole, duvan u svim broader scale, it was a risky move by Minister krajevima zemqe, ~ak i u mnogima u kojima rani- Vuji}, which could overcrowd government tobacco je nije gajen. Pretila je preterana proizvodwa, warehouses with huge quantities of tobacco for a procewivalo se od 3 hiqade tona, i Vuji} se long time to come, with an unavoidable cut in prona{ao u nedoumici {ta da radi. Da ka`wava duction in the years that ensued caused by the seqake nije hteo (ili mogao), a da im otkupi sav need to clear the overstock. proizvedeni duvan nije bio u stawu. I na{ao je In situations like this, it was not easy for Vuji} jedno re{ewe koje nije ba{ bilo u skladu sa zako- at all. On the one hand, there was a need to defend nom, ali je za wega bilo prakti~no kao izlaz iz the government and government coffers from te{ke situacije: |uture je dao dozvolu svim pro- unlawful actions of farmers, while on the other izvo|a~ima iz starih duvanskih krajeva, dok je hand, the Radical Party was a party of farmers, and ostalima poru~io da im dràva ne}e otkupiti it was not easy for anybody from its leadership, duvan i posavetovao ih da duvan namene izvozu. including Vuji}, to go against their interests and to Svoj potez opet je pravdao zaka{wewem rasporeda protect the government, as the Progressists had proizvodwe od strane uprave monopola. Da bi sve done before. He tried to find a middle-of-the-road dobilo izgled legalnosti, naredio je da se od solution – to encourage farmers to work legally by uzgajiva~a uzme re~ da }e duvan uputiti u izvoz i means of harsh words and lenient policy, but with- 107 da im se tada ipak da dozvola. Nova radikalska out alienating them from the government and the vlada nije uspela da odoli pritisku svoje izbor- party to which he belonged. He was only partially ne baze i odobrila je sa|ewe ~ak 198,5 miliona successful in this, being more successful in preserv- strukova duvana u 1889. godini, {to je 3–6 puta ing the popularity of the party, and less successful ve}i broj nego u drugim godinama ovoga perioda. in safeguarding the interests of the state.

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NATIONALIZATION OF THE MONOPOLY Ovakav potez ministra samo je podstakao la`no The then statutory purchase prices of tobacco zakliwawe seqaka, da bi oni, na kraju, deo svog produced by Serbian farmers ranged from 2–3 duvana podneli na otkup u starim duvanskim dinars per kilogram of the best tobacco, to 1 dinar okruzima i tako izigrali Vuji}a. Op{tije per kilogram of the worst. Just to recall that the posmatrano, bio je to riskantan potez ministra prices in the days of the foreign lessee of the tobac- Vuji}a, koji je mogao da nadugo pretrpa dràvne co monopoly ranged between 3–4 and 1 dinar for duvanske magacine ogromnim koli~inama duva- the same categories, which means that they were na, uz neminovno smawewe proizvodwe u slede- somewhat higher than under the domestic Monop- }im godinama kako bi se ove zalihe potro{ile. oly Directorate. During the Progressist govern- Vuji}u nimalo nije bilo lako u ovakvim situ- ment and the lease of the monopoly to the compa- acijama. Sa jedne strane stajala je potreba da se ny of Länderbank and Comptoir, the Radicals dràva i dràvna blagajna odbrane od nezakoni- claimed that the purchase prices of tobacco were tih radwi seqaka, dok je, sa druge strane, Radi- measly and that they should be discarded because kalna stranka bila stranka seqaka i nikome iz they were bringing too much profit to the lessee wenog vrha, pa ni Vuji}u, nije bilo lako da ide and destroying farmers. And now we see that the protiv wihovih interesa i da {titi dràvu kao Serbian Monopoly Directorate under the Radicals nekada napredwaci. On je poku{ao da na|e sredi- set lower prices, less favorable for farmers. Yet, the nu – da o{trim re~ima i blagom politikom pod- eloquent Taušanovi} was now the Minister of the stakne seqake na zakonit rad, ali i da ih ne odbi- Interior, so he no longer argued that these prices je od vlade i stranke kojoj je pripadao. Uspevao je would impoverish Serbian farmers. tek delimi~no, boqe kod o~uvawa popularnosti However, this was the nominal tobacco price, stranke, a mawe u za{titi dràvnih interesa. while the effective one was considerably lower, Tada{we propisane otkupne cene duvana od because of the existence of the discard, that is, srpskih seqaka iznosile su od 2–3 dinara po ki- tobacco below any category. Namely, the average logramu za najkvalitetniji duvan do 1 dinara po price of purchased tobacco reached only 87 paras kilogramu za najslabiji. Podsetimo da su se cene per kilogram in 1888 and 80 paras per kilogram in u vreme inostranog zakupca monopola duvana kre- 1889. Opposition leader Jovan Avakumovi} correct- tale od 3–4 do 1 dinar po istim kategorijama, ly noted that it was a fact that the monopolies were {to zna~i da su bile ne{to vi{e nego pod doma- yielding increasingly more proceeds, but he recalled }om monopolskom upravom. U vreme napredwa~ke that the Serbian farmer was paying for all that vlade i zakupa monopola od strane Lenderban~i- through low purchase and high selling prices of nog i Kontoarovog dru{tva radikali su tvrdili tobacco. He also recalled that under the law of 1885, da su otkupne cene duvana mizerne i da ih treba producers had been getting at least 1 dinar for a odbaciti po{to donose preteranu dobit zakupcu, kilogram of the worst tobacco, while now they were a uni{tavaju seqake. A sada vidimo da srpska not receiving that much even for the best one.108 Uprava monopola pod radikalima daje, za seqake, Minister Vuji} explained these low prices with mawe povoqne cene. No, sada je govorqivi Tau{a- the poor quality of domestic tobacco, so that a mere novi} bio ministar unutra{wih dela, pa nije 5 percent of tobacco could be used for medium-qual- vi{e tvrdio da }e te cene dovesti do osiroma{e- ity cigarettes, while the rest was used for the lowest- wa srpskih seqaka. quality cigarettes or even burnt. He claimed that the

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NACIONALIZACIJA MONOPOLA Ovo je, me|utim, bila nominalna cena duvana, old tobacco monopoly law permitted the purchase of dok je stvarna bila znatno nià, a zbog postojawa tobacco whose quality was lower even than the low- {karta, tj. duvana ispod svake kategorije. Naime, est category (the price of which was 1 dinar/kg), at a prose~na cena otkupqenog duvana dostigla je sa- negotiated price. As for the fact that the foreign les- mo 87 para po kilogramu 1888. godine i 80 para see had been paying more for tobacco than the Ser- po kilogramu 1889. godine. Opozicioni prvak bian government, he offered a rather far-fetched Jovan Avakumovi} je s razlogom primetio da jeste explanation that, in his view, it paid off for the lessee ~iwenica da monopoli daju sve vi{e prihoda, to give a good price for domestic tobacco, since they ali je podsetio da sve to pla}a srpski seqak kroz had been buying only 100,000 to 200,000 kilograms niske otkupne i visoke prodajne cene duvana. of it, and then to import huge quantities of cheap Podsetio je da su po zakonu iz 1885. godine pro- tobacco from Hungary. However, there were many izvo|a~i dobijali najmawe 1 dinar po kilogramu other people who were convinced that the price was najlo{ijeg duvana, dok sada toliko ne primaju ni too low, that Serbian tobacco was not all that bad 108 za najboqi. and that the Belgrade Tobacco Factory was mishan- Ministar Vuji} je takve niske cene obja{wa- dling the tobacco.109 Thus, 400 farmers from Kruše- vao slabim kvalitetom doma}eg duvana, tako da je vac District strongly protested (admittedly, not in samo 5% duvana moglo da se koristi za cigarete front of government agencies, but in front of the sredweg kvaliteta, dok je ostatak i{ao u najsla- seat of the local Radical Party board) when the com- bije cigarete ili je ~ak spaqivan. Tvrdio je da je mission appraised their tobacco at 10 and 20 paras stari zakon o monopolu duvana dozvoqavao otkup per kilogram.110 duvana i slabijeg nego {to je najnià kategorija (~ija je cena bila 1 dinar/kg), a po dogovornoj ceni. îwenicu da je strani zakupac vi{e pla}ao duvan nego srpska dràva objasnio je, dosta nateg- nuto, time {to je, po wegovom mi{qewu, zakupac imao ra~una da lepo plati doma}i duvan, po{to ga je kupovao samo 100 do 200 hiqada kilograma, a da zatim uveze velike koli~ine jeftinog duvana iz Ma|arske. No, mnogi drugi su bili uvereni da je cena preniska, da srpski duvan nije tako slab i da beogradska fabrika duvana lo{e rukuje duvanom.109 Tako je 400 prisutnih seqaka iz kru{e- va~kog okruga èstoko protestovalo (dodu{e, ne pred dràvnim organima, ve} pred lokalnim odborom radikalne stranke) kada im je komisija procenila duvan na 10 i 20 para po kilogramu.110

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NATIONALIZATION OF THE MONOPOLY Van|el Toma, duvanxija Van|el Toma, a tobacconist Ro|en je po~etkom 1830-tih godina u Makedoniji, a Born in the early 1830s in Macedonia, died in 1906. umro 1906. godine. U Beograd je stigao po~etkom 1860- Arrived in Belgrade in the early 1860s. Fought in the tih godina. U~estvovao je u srpsko-turskim ratovima 1875–1878 Serbian-Turkish Wars as a cannoneer. 1875–1878. godine kao tobxija. He held a frequented tobacconist shop in Belgrade, Drào je prometnu duvanxijsku radwu u Beogradu in the area around the Sava, right next to the hotel u kraju kod Save, odmah pored hotela Kragujevac. U Kragujevac. The hotel was often visited by Serbs from hotel su svra}ali Srbi iz preka (Austrougarske) i Austria-Hungary and they frequently smuggled home ~esto {vercovali ku}i Tomin jeftiniji duvan, i Toma’s cheaper tobacco, despite their monopoly regula- pored tamo{wih monopolskih propisa. Uvozio je tions. He imported tobacco from his homeland Macedo- duvan iz svoje postojbine Makedonije, a direktno od nia, directly from producers, thus obtaining good quality proizvo|a~a, {to mu je obezbe|ivalo dobar kvalitet and favorable prices. i povoqne cene. At the beginning of the work of the Monopoly Direc- U po~etku rada monopolske uprave bio je wen torate, he served as its expert for receipt of imported ekspert za prijem uvoznog turskog duvana, a kasnije ga Turkish tobacco, and later on he himself supplied it to je i sam liferovao upravi, na ~emu je dobro zara|ivao. the Directorate, making good money on that. For a while, Neko vreme bio je i ~lan upravnog odbora monopolske he was a member of the Management Board of the uprave. Monopoly Directorate. Bio je dobrotvor. Ostavio je novac iz koga je He was a benefactor. He left money out of which podignuta ûkur-~esma, spomenik srpskim `rtvama ûkur-~esma was erected, a monument to Serbian vic- iz 1862. godine. Ostavio je i hotel Bulevar, iz ~ijeg je tims of 1862. He also left the Bulevar hotel, and out of the prihoda finansirano usavr{avawe makedonskog pod- proceeds from it the education of the Macedonian youth mlatka u Beogradu. in Belgrade was financed.

Izvor: M. M. Kosti} – Uspon Beograda, kw. 1, 1994 Source: M. M. Kosti} – The Rise of Belgrade, volume 1, 1994 Liberali za ukidawe monopola

LIBERALS IN FAVOR OF MONOPOLY LIFTING

Diskusija o ukidawu monopola Discussion on the Lifting of the Monopoly jesen 1889. godine liberali su razmotrili n the autumn of 1889, the Liberals considered the Usituaciju sa monopolom duvana u Srbiji. Ma- Isituation of the tobacco monopoly in Serbia. da je ministar Vuji} poku{avao da, koliko je god Although Minister Vuji} tried to mitigate the adverse mogao, ublaì nepovoqne posledice monopola na consequences of the monopoly for the relationship odnose dràve i seqaka, o~ito je bilo da mu poku- between the state and the farmer as much as he {aj nije u potpunosti i{ao od ruke, jer je na selu could, it was obvious that he was not particularly suc- vladalo sve ve}e nezadovoqstvo wegovom politi- cessful in his attempt, because the rural population kom. Naime, problema su bila tri. Prvo, ve} spo- was increasingly dissatisfied with his policies. Name- miwano ograni~avawe proizvodwe duvana, {to je ly, there were three problems. Firstly, the already mnoge zainteresovane seqake ostavilo bez toliko mentioned restrictions on tobacco production left èqenih dozvola i ogor~ilo. Drugo, otkupna cena many interested farmers without much wished-for duvana sniàvana je tokom vremena. Tako je (pred- licenses and filled them with indignation. Secondly, log) zakon o monopolu duvana, pu{ten u skup- the purchase price of tobacco was going down over {tinsku proceduru u jesen 1889. godine, predvi- time. Thus a (draft) law on the tobacco monopoly, |ao da se za I kategoriju pla}a 1,5–2,5 dinara, za submitted to the Assembly in the autumn of 1889, II kategoriju 1–1,5 dinara, za III kategoriju 0,6–1 envisaged the following prices: for category I – 1.5 to dinar i za IV kategoriju ({kart) 0,1–0,6 dinara 2.5 dinars, for category II 1 to 1.5 dinars, for catego- po kilogramu. Bilo je to snièwe cena naro~ito ry III 0.6 to 1 dinar and for category IV (discard) nagla{eno kod slabijih vrsta duvana, koje su i 0.1–0.6 dinars per kilogram. This price cut was par- najvi{e proizvo|ene u Srbiji. I tre}e, prodajna ticularly pronounced in the case of more inferior cena duvana i prera|evina pove}ana je za nekoli- kinds of tobacco, which were the most widely pro- ko puta u odnosu na vreme pre monopola, {to je duced in Serbia. And thirdly, the selling prices of svakako poga|alo pu{a~ki svet u Srbiji, a to je tobacco and tobacco products were increased several bila najmawe jedna polovina bira~kog tela. times relative to the period before the monopoly, Dakle, liberali su procenili da je mogu}e which certainly affected the smoking population in vladaju}im radikalima sipati so na ìvu ranu i Serbia, and that was at least a half of the electorate.

127 Seoska idila (Vladislav Titelbah) A rural idyll (Vladislav Titelbah) odlu~ili da predloè ukidawe monopola duvana. So, the Liberals assessed that it was possible to Prvi je ideju izneo u javnost general Le{janin, u rub salt into the open wound of the ruling Radicals diskusiji o skup{tinskoj adresi. Pozdravio je and decided to put forward a proposal for the lifting oduzimawe ovog mnopola od stranaca, ali je of the tobacco monopoly. The first to go public with predloìo wegovo ukinu}e „da se za{tite dràv- the idea was General Lešjanin, in a discussion about ni finansijski interesi i da se proizvodwa the Assembly address. He welcomed the takeover of duvana unapredi”. Radikali su odmah osetili this monopoly from foreigners, but proposed its lift- opasnost i uveravali Le{janina i, jo{ vi{e, ing “to protect financial interests of the state and to javnost da su oni prvi koji bi ukinuli monopol, promote tobacco production”. The Radicals imme- ali da to nikako nije mogu}e, a zbog lepog priho- diately sensed the danger and offered assurances to da {to donosi dràvnoj kasi (6,5 miliona) i Lešjanin, but even more to the public, that they zbog toga {to je monopol duvana zaloga za dva would be the first to lift the monopoly; but they zajma i da bi se ukidawem monopola izgubio stated that there was no possibility to do so, because 111 izvor za otplatu tih dugova. of the handsome revenue it was bringing to the Ubrzo su liberali (Ribarac, Avakumovi} i budget (6.5 million) and because of the fact that the drugi) uputili skup{tini i formalan predlog tobacco monopoly was collateral for two loans, so zakona, ~iji je prvi ~lan glasio: „monopol duva- the lifting of the monopoly would lead to a loss of na ukida se u Kraqevini Srbiji”, a s pozivom na the source for the repayment of these debts.111 prevelike tro{kove poslovawa monopola (2,7 Soon after that, the Liberals (Ribarac, Avaku- miliona prema nacrtu buxeta za 1890. godinu) movi} and others) submitted to the Assembly a formal koji nepotrebno pritiskaju narod. Daleko je bill, whose first article read: “The tobacco monopoly boqe, uveravali su liberali, ostaviti slobod- shall be lifted in the Kingdom of Serbia”, citing as rea- nim proizvodwu, trgovinu i preradu duvana, kao sons the excessive operating expenses of the monop- {to je to nekada bilo. Imali su odgovor i na oly (2.7 million according to the draft budget for pitawe o tome kako nadoknaditi gubitak pore- 1890), which were an unnecessary burden on the skih prihoda od tada{wih 3,8 miliona dinara population. It would be far better, the Liberals argued, neto prihoda za dràvu (6,5 miliona prihoda to leave tobacco production, trade and processing minus 2,7 miliona tro{kova). U predlogu zako- free, as they had been in the past. They also had an na naveli su da je potrebno razrezati taksu na answer to the question of how to compensate for the pu{a~e: obi~ni qudi pla}ali bi 8 dinara godi- loss of tax revenue in the amount of the then 3.8 mil- {we, bogatiji, koji pu{e boqi duvan (trgovci, lion dinars net for the government (6.5 million of rev- advokati, lekari itd) po 20 dinara, oni najboqe enue minus 2.7 million of expenditure). The bill stip- stoje}i 30 dinara, prodavci duvana po 300 ulated that a fee should be levied on smokers: com- dinara takse za dozvolu i regal na uvezeni duvan moners would pay 8 dinars a year, those more affluent po 10 din/kg. Tako bi od takse od 8 dinara bilo ones who smoked better tobacco (merchants, lawyers, ubrano 2 miliona dinara (250 hiqada pu{a~a), doctors, etc.) 20 dinars each, the richest ones 30 od takse od 20 dinara 600 hiqada (30 hiqada dinars, tobacco dealers 300 dinars each for the license takvih pu{a~a), od prodavaca 300 hiqada (ima ih fee plus the regal fee on imported tobacco in the hiqadu) i od regala 900 hiqada (uvoz 90 tona go- amount of 10 din/kg. In such a manner, the 8 dinar 112 di{we), {to ukupno daje 3,8 miliona dinara. fee would yield 2 million dinars (250,000 smokers),

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LIBERALS IN FAVOR OF MONOPOLY LIFTING Liberalsko zalagawe za ukidawe monopola the 20 dinar fee 600,000 (30,000 smokers of this svakako ima smisla i mo`e se braniti, ali type), from dealers one would collect 300,000 (there na~in na koji su mislili da uberu potrebne were a thousand of them) and 900,000 from the regal prihode svakako nije dobar, osim demago{ki. fee (imports stood at 90 tonnes a year), which gave a Naime, te{ko je zamisliti kako bi se utvr|iva- total of 3.8 million dinars.112 The Liberals’ lobbying lo ko pu{i a ko ne i ko je platio taksu a ko nije, for the lifting of the monopoly certainly made sense tako da bi bilo nu`no organizovati ogroman and can be defended, but the manner in which they broj kontrolora, ali i lepiti, kako je rekao thought they would collect necessary revenue was not Vuji}, marke na qudima – pu{a~ima. Me|utim, good at all, except maybe as demagogy. Namely, it is liberali nisu ni imali nameru da uvedu taksu difficult to imagine a method which would enable the na pu{a~e, nego su ovim predlogom hteli da sorting of smokers from non-smokers, and those who izbegnu prigovore da bez monopola nije mogu}e paid the fee from those who did not, so it would be ubrati prihode od duvana; da bi se po ukidawu necessary to organize a huge number of controllers, as monopola morao pove}ati ili neposredan porez well as to put stickers, as Vuji} said, on people who (ili prirez) ili posredan porez, ali koji pla- smoked. However, the Liberals never intended to }aju svi gra|ani, {to bi na{kodilo popularno- introduce the fee on smokers; instead, by putting for- sti liberalskog predloga u narodu. Ovako su ward this proposal, they wanted to avoid objections hteli da imaju na~in ubirawa potrebnog priho- that it was not possible to collect revenue from tobac- da, ali da ga ograni~e samo na pu{a~e. co without the monopoly; that after the lifting of the Liberali se nisu zadr`ali samo na ovom monopoly one would have to increase either the direct predlogu. Da bi potkrepili svoju ideju o nu`no- tax (or surtax) or the indirect tax that all citizens were sti ukidawa monopola duvana, poku{ali su da paying, which would be detrimental to the popularity navedu {to vi{e argumenata. Tako interpeli{u of the Liberals’ proposal in the general public. In this vladu o nepravilnostima prilikom izgradwe manner, they wanted to have a way to collect the nec- duvanskih magacina, gde se upetqava i predsed- essary revenue, but to limit it to smokers only. nik Glavne kontrole, nekada{wi liberal Milo- The Liberals did not stop at this proposal. In van Jankovi}. Vrlo ru`no deluje rasprava u kojoj order to substantiate their idea about the necessity radikali dokazuju da je Jankovi} u ime kontrole, of lifting the tobacco monopoly, they tried to offer as a na svoju ruku, kritikovao vladu, dok liberali many arguments as possible. Thus they interpellated dokazuju da je otvoreni pritisak ministra the government regarding irregularities during the Vuji}a prisilio jednog ~lana kontrole da izjavi construction of tobacco warehouses, implicating also da sastanka nije bilo. Upore|uju se zapisnici, the Chairman of the Supreme Control, a former Lib- daju naknadne izjave, tuma~i ustav… Zatim libe- eral, Milovan Jankovi}. A debate in which the Radi- rali interpeli{u vladu o dodacima u upravi cals were trying to prove that Jankovi} had criticized monopola, pa izlazi da upravnik monopola La- the government on behalf of the Control, acting on zar Pa~u ima dodatak od 1.200 dinara godi{we, a his own, while the Liberals were proving that the i da dodatke imaju i drugi vode}i rukovodioci. open pressure from Minister Vuji} forced a member Vuji} se branio da su sada dodaci mawi nego of the Control to declare that there had been no ranije, dok je Avakumovi} grmeo da wega ne inte- meeting, was a very ugly sight. Minutes were com- resuje kolike su dodatke privatnici davali pared, post-festum statements made, the Constitu-

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LIBERALI ZA UKIDAWE MONOPOLA biv{em direktoru, ali da ga vrlo zanima za{to i tion interpreted… Then the Liberals interpellated na osnovu kog zakona dodatak ima Pa~u, ~ovek ko- the government concerning fringe benefits in the ji nije imao ni jednog dana radnog staà u dràv- Monopoly Directorate, and the discussion revealed noj upravi do trenutka kada je postavqen za na- that the Director of the Monopoly Lazar Pa~u had ~elnika Ministarstva finansija I klase i upu- fringe benefits in the amount of 1,200 dinars a year, 113 }en za upravnika monopola. and that fringe benefits also pertained to other top Skup{tinski odbor formiran da razmotri officials. Vuji}’s defense was that the fringe benefits predlog zakona o ukidawu monopola duvana, u at that time were much lower than before, while kome su ve}inu ~inili radikali, odbacio je Avakumovi} thundered that he did not want to know ideju liberala, tvrde}i da je prora~un prihoda u about the fringe benefits the private owners had paid wemu nerealan i da ne}e dati ni koliko je to the former Director, but that he was very curious potrebno za otplatu anuiteta, kao i da nije pravo to find out why and on the basis of which law fringe da neko ko pla}a neposrednog poreza 6–8 dinara benefits were paid to Pa~u, a man who did not have a mora da plati taksu za pu{ewe od 8 dinara. Pod- single day of service in the public administration setili su i da nije svih 2,7 miliona dinara before his appointment as a class I Department tro{kova monopola nameweno ~inovni~kim Head in the Ministry of Finance and sent to be the platama, ve} da je ve}ina predvi|ena za otkup i Director of the Monopoly.113 fabrikaciju duvana. Mawina u odboru, koju su A parliamentary committee set up for the pur- ~inila dva liberala, tvrdila je da je procena pose of reviewing the bill on the lifting of the tobacco prihoda predlaga~a zakona sasvim na mestu i da monopoly, on which the Radicals comprised the je jednom siroma{nom Srbinu lak{e da plati 8 majority, rejected the idea of the Liberals, claiming dinara takse nego 27 dinara monopolskog priho- that the revenue forecast in it was unrealistic and that da godi{we.* Naravno, skup{tinska ve}ina it would fall short even of what was needed to pay the prihvatila je, bez rasprave, izve{taj odborske annuities, as well as that it was not fair to impose a fee ve}ine i odbila da ukine monopol duvana, ali su for smoking in the amount of 8 dinars on someone liberali, ipak, ubrali poneki poen kod glasa~a. who paid 6–8 dinars of the direct tax. They also recalled that not all 2.7 million of the monopoly Novi zakon o monopolu duvana expenditure was earmarked for the salaries of public servants, and that the bulk of it was actually envisaged Posle preuzimawa monopola od strane dràve, for the purchase and fabrication of tobacco. The pokazalo se nu`nim da se donese novi zakon o minority on the committee, consisting of two Liberals, monopolu duvana, po{to je stari bio prevazi- argued that the lawmaker’s revenue forecast was |en u mnogim ta~kama, a i bilo je potrebno da se absolutely plausible and that it was easier for a pover- zakonom precizira upravqawe monopolom u ty-stricken Serb to pay 8 dinars of the fee than 27 potpunoj dràvnoj reìji. I 14. marta 1890. go- dinars of the monopoly revenue per year.* Of course, dine donet je novi zakon, koji je, uz minimalne the parliamentary majority accepted the report of the

* Kutija cigareta je 10 para, tro{ak proizvod- * A pack of cigarettes was 10 paras, production costs we 2,45 para, a monopolska dobit 7,5 para, were 2.45 paras, and the profit for the monopoly was {to za godinu daje 27 dinara monopolske do- 7.5 paras, which in one year gave 27 dinars of profit biti; SBNS, 1889–1890, str. 1677–1682 for the monopoly; SBNS, 1889–1890, pp. 677–1682

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LIBERALS IN FAVOR OF MONOPOLY LIFTING izmene, ostao na snazi do I svetskog rata, pa i committee majority, without a debate, and refused to posle wega pro{irewem va`ewa na teritoriju lift the tobacco monopoly, but the Liberals neverthe- cele Jugoslavije. less scored a point or two with the voters.

Osnovna re{ewa novog zakona New Law on Tobacco Monopoly Po tom zakonu dràva ima iskqu~ivo pravo Following the takeover of the monopoly by the state, kupovine doma}eg i stranog duvana i prerade i it became clear that it was necessary to adopt a new prodaje na veliko i malo svih duvanskih prera- tobacco monopoly law, since the old one was obso- |evina. Dràva tako|e kontroli{e proizvodwu lete in many respects, and since it was necessary duvana, propisuje koli~inu koju }e seqaci zasa- now to define in a law the management of a monop- diti, odobrava dozvole za sa|ewe, otkupquje oly which was fully state-run. On 14 March 1890, a duvan po ceni koju sama utvrdi, sme{ta duvan u new law was passed, which remained in force, with svoja skladi{ta, prera|uje ga u svojoj fabrici u some minor amendments, until World War I, and Beogradu i prodaje ga potro{a~ima. Prodaja se u even beyond, with the broadening of its application Beogradu vr{ila neposredno, a u drugim mesti- to the whole territory of Yugoslavia. ma preko velikoprodavaca, koji su u svojim re- onima imali monopol prodaje maloprodavcima. Zakonom je bio ograni~en i uvoz duvana. Da Key Arrangements in the New Law bi se onemogu}ila praksa Lenderban~inog Under that law, the state had the exclusive right to dru{tva, koje je znatan deo duvana nabavqalo u purchase and process domestic and foreign tobacco inostranstvu, i da bi se pokazao patriotizam and to engage in wholesale and retail trade in all poslanika, propisano je da Uprava monopola sme tobacco products. The state controlled tobacco proda uveze stranog duvana najvi{e 10% od celokup- duction, prescribed the quantity to be planted by ne godi{we potro{we u Srbiji. farmers, issued planting licenses, purchased tobac- Pravo prodaje zadràla je dràva za sebe, s co at a price it had fixed itself, placed tobacco in its tim da ga moè „vr{iti” preko maloprodavaca warehouses, processed it in its factory in Belgrade neposredno (u Beogradu) i posredstvom veliko- and sold it to consumers. The sales in Belgrade were prodavaca u drugim okruzima. U jednom okrugu carried out directly, and in other places through moè biti samo jedan velikoprodavac, a zakup wholesalers, who in their respective areas held dobija onaj ko na „javnoj ofertalnoj licitaciji” monopolies on the sales to retailers. preuzme obavezu da otkupi najvi{e duvana. Rok The law also put restrictions on tobacco zakupa je ograni~en na najvi{e tri godine. imports. In order to prevent the practice used by Pravo maloprodaje tako|e daje Uprava monopola. Länderbank’s company, which had been procuring Prodajna cena doma}eg duvana maksimirana je a significant portion of their tobacco abroad, and in zakonom na 24 dinara po kilogramu, a stvarnu ce- order to demonstrate the patriotism of the nu odre|ivala je dràva. deputies, it stipulated that the Monopoly Direc- Zakon je re{io i u kojim se krajevima duvan torate’s imports of foreign tobacco were not to moè saditi, {to je verovatno bilo motivisano exceed 10 percent of Serbia’s total annual tobacco èqom vlasti da jednom za svagda re{i to pitawe, consumption.

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LIBERALI ZA UKIDAWE MONOPOLA a ne da se svake godine bori sa seqacima i poli- The right of sale, which the state reserved for ti~arima iz cele Srbije. Pravo je dato slede}im itself, could be “exercised” directly, through retail- podru~jima: ers (in Belgrade), and through the mediation of • u okrugu aleksina~kom varo{ Aleksinac i wholesalers in other districts. There could be only srezovi aleksina~ki i moravski; one wholesaler in a district, and the lease was grant- • u okrugu kru{eva~kom varo{ Kru{evac i ed to the one who, in a “public soliciting for ten- srez kru{eva~ki; ders”, undertook to purchase the largest quantity of • u okrugu uì~kom op{tina Uìce, Bajina tobacco. The lease period was limited to not more Ba{ta i jedanaest sela; than three years. The right to retail trade was also • u okrugu podrinskom Loznica i devetnaest granted by the Monopoly Directorate. The law limit- sela; ed the selling price of domestic tobacco to a maxi- • u okrugu vrawskom varo{ Vrawe; mum of 24 dinars per kilogram, and the actual price • u okrugu krajinskom okolina Doweg Mila- was fixed by the government. novca i Kladova; The law also stipulated the regions in which • u okrugu ni{kom op{tine Leskovac i Vlaso- tobacco could be grown, which was probably moti- tince; i vated by the wish of the authorities to settle this • u okrugu ~a~anskom op{tina Kraqevo i osam issue once and for all, instead of struggling with sela. farmers and politicians from all over Serbia every Opravdawe za izbor ovih zemqi{ta bilo je year. The right was granted to the following regions: neubedqivo: da se „iz iskustva zna da je na wima • in the district of Aleksinac, the town of odgajan duvan dobrog kvaliteta”. Pravi razlozi Aleksinac and the counties of Aleksinac and the bili su, prvo, èqa da se proizvodwa geografski Morava Valley; koncentri{e kako bi se lak{e kontrolisala i, • in the district of Kruševac, the town of drugo, rezultat unutarpartijskog lobirawa kod Kruševac and the county of Kruševac; radikala. Naravno, prilikom skup{tinske di- • in the district of Uìce, the municipalities of skusije o krajevima u kojima }e se dozvoqavati Uìce, Bajina Bašta and eleven villages; uzgajawe duvana mnogi su poslanici poku{ali • in the district of the Drina Valley, Loznica and da ukqu~e jo{ neka sela sa svoga podru~ja, ne bi nineteen villages; li se umilili seqanima, ali je glasa~ka ma{i- • in the district of Vranje, the town of Vranje; nerija radikala davala prolaz takvim predlozi- • in the district of Timo~ka Krajina, the ma samo kada su dolazili od svojih poslanika surroundings of Donji Milanovac and Kladovo; (\uri} iz uì~kog kraja, Tajsi} iz ~a~anskog • in the district of Niš, the municipalities of kraja i drugi), dok je automatski odbacivala Leskovac and Vlasotince; and 114 sli~ne predloge poslanika liberala. • in the district of â~ak, the municipality of Da bi se mogao kvalifikovati, jedan okrug je Kraljevo and eight villages. morao prijaviti proizvodwu od najmawe 50 tona, A rationale for the selection of these areas was dok su pojedinci morali prijaviti najmawe 20 unconvincing: that “it was known from experience ari, a najvi{e jedan hektar (zadruge tri hekta- that good quality tobacco was grown on the soil in ra).Ovo drugo bilo je rezultat socijalne poli- these areas”. The real reasons were, first, a desire to tike, jer se verovalo da duvan donosi velike concentrate production territory-wise in order to

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LIBERALS IN FAVOR OF MONOPOLY LIFTING Klase duvana Tobacco classes

sredwe li{}e gorwe i dowe li{}e podbir central leaves higher and lower leaves basal leaves I klasa dobro sazreli, ne izgoreli, nisu pocepani, nisu bu|avi, sasvim lepi, bez mrqa class I fully ripe, not burnt, not torn, not moldy, fine-looking, no spots II klasa sasvim celi, dobro sazreli, lepo lice, bez mrqa, nisu bu|avi, nisu pregoreli class II perfectly intact, ripe, nice top side, no spots, not moldy, not burnt III klasa mrqavi, malo pocepani, malo izmrqani, malo pocepani, dobro zreli, potpuno zdravi zdravi, dobro sazreli zdravi, dobro sazreli class III spotted, slightly torn, slightly spotted, slightly torn, ripe, perfectly healthy healthy, ripe healthy, ripe {kart nezreli, ostali zeleni, zeleni, povre|eni zeleni, nagoreli, pokvareni bu|avi, izgoreli, truli discard unripe, remained green, green, injured green, charred, rotten moldy, burnt, decayed

prihode, pa je gorwi limit predstavqao izraz facilitate control and, second, a result of intra- te`we da {to vi{e seqaka u~estvuje u dobiti od party lobbying in the Radical Party. Of course, in a duvana. Seqak je besplatno dobijao seme. Prven- parliamentary debate on the regions to be allowed stvo me|u prijavqenima imali su oni koji su to grow tobacco, many deputies had tried to include sadili duvan vi{e godina, a zatim oni koji su some other villages from their respective regions, „dobar duvan proizvodili”. in order to make themselves popular among the vil- Zakon je definisao tri klase duvana i {kart, lagers, but the voting “machine” of the Radicals let trude}i se da bude {to jasniji kako bi u ìvotu such proposals pass only when they came from bilo {to mawe sporova. Klase duvana su defini- their deputies (Ðuri} from the region of Uìce, sane polaze}i od vrste i stawa li{}a. A vrsta Tajsi} from the region of â~ak and others), and it li{}a je bilo tri, prema kvalitetu, a polaze}i automatically rejected similar proposals from the od wegovog poloàja na stablu (sredwe, koje daje Liberal deputies.114 najboqi duvan), gorwe i dowe (koje daje sredwi In order to qualify, a district had to apply for the duvan) i podbir (nekoliko najniìh listova production of at least 50 tonnes, while individuals koji daju najslabiji duvan). had to apply for at least 20 ares, and not more than Primetimo da su klase duvana iskqu~ivo od- one hectare (three hectares for cooperatives). The re|ene karakteristikama sazrelosti i o~uvanosti latter was a result of social policy, because it was

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LIBERALI ZA UKIDAWE MONOPOLA duvanskog lista, a ne i vrstom duvana i wegovim believed that tobacco business was very lucrative, so pu{a~kim karakteristikama. Ovakav pristup, the ceiling was a reflection of the aspiration to zajedno sa nisko odre|enom najvi{om cenom include as many farmers as possible in the generation duvana prve klase zna~io je odricawe od proiz- of income from tobacco. Farmers were given seed for vodwe najboqih orijentalnih duvana, ~ija bi free. The precedence was accorded to the applicants cena morala biti vi{a, i podsticaj te`wi ka who had been growing tobacco for several years, and pove}awu kvantiteta na ra~un kvaliteta duvana. then to those who “produced good tobacco”. Odredba zakona o otkupnim cenama do~ekana The law defined three classes of tobacco and dis- je od poslanika sa velikim zanimawem. Za pred- card, trying to be as precise as possible, in order to lo`ene cene (I klasa 1,5 do 2,5 din/kdg, II klasa reduce the number of disputes in real life. Tobacco 1–1,5, III klasa 0,6–1 i IV klasa ({kart) 0,1–0,6 classes were defined proceeding from the type and din/kg) odmah je nekoliko diskutanata, i libera- condition of leaves. There were three types of leaves, la i radikala, reklo da su preniske i da ih treba according to their quality and based on the position pove}ati. Vuji} je umirivao poslanike tvrde}i, on the stem: central leaves (giving the best tobacco), s pravom, da se moraju imati u vidu niske svetske higher and lower leaves (giving medium-class tobac- cene (cene za najboqi duvan po kilogramu izno- co) and basal leaves (several bottom leaves giving the sile su u Francuskoj 1,4 dinara, u Austrougarskoj lowest quality tobacco).We can notice that tobacco 1,1 dinar, u Bugarskoj 1,4 dinara, u Rumuniji 1,8 classes are defined exclusively by the properties relat- dinara i u Bosni i Hercegovini „osobiti ed to the maturity and preserved condition of tobac- Trebiwski” 3,4 dinara). Lazar Pa~u, upravnik co leaves, and not by the type and smoking character- monopola, tvrdio je da otkupne cene ne mogu biti istics of tobaccos. Such approach, combined with the ve}e, a da su napredwaci u svoj zakon stavili maximum price of class I tobacco set at a low level, visoke cene da bi zakon o monopolu lak{e progu- meant giving up on the production of the best orien- rali kroz skup{tinu. Ipak, pristao je na pove}a- tal tobaccos, whose price would have to be higher, we cena najboqih duvana sa 1,5–2,5 na 1,5–3 and an incentive to the aspiration toward increasing 115 dinara po kilogramu, {to je bilo gotovo neva- quantity at the expense of quality of tobacco. `no, jer je duvan najvi{e klase otkupqivan u The provision of the law on purchase prices was malim koli~inama. U stvari, najva`nije su bile met with great interest by the deputies. Several par- cene III klase i {karta, po{to su te dve katego- ticipants in the discussion, both Liberals and Radi- rije predstavqale daleko najve}i deo duvana koji cals, immediately said that the proposed prices se proizvodi u Srbiji. (class I 1.5 to 2.5 din/kg, class II 1–1.5, class III Najva`niji rokovi bili su slede}i: mini- 0.6–1 and class IV (discard) 0.1–0.6 din/kg) were star finansija je du`an da najkasnije u oktobru too low and should be increased. Vuji} tried to saop{ti koliko je duvana potrebno u slede}oj appease the deputies, arguing with good reason godini, a time i kolika se povr{ina zasa|enog that one had to bear in mind low world prices (the duvana o~ekuje, kao i kolike }e otkupne cene prices for the best tobacco per kilogram amounted biti dogodine; prijave za gajawe duvana od strane in France to 1.4 dinars, in Austria-Hungary to 1.1 seqaka primaju se u op{tini od 1. novembra do dinars, in Bulgaria to 1.4 dinars, in Romania to 1.8 15. decembra; uprava monopola du`na je da do 1. dinars and in Bosnia and Herzegovina, “exquisite februara izvesti sve one kojima je odobreno Trebinje tobacco”, to 3.4 dinars). Lazar Pa~u,

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LIBERALS IN FAVOR OF MONOPOLY LIFTING sa|ewe; rasa|ivawe duvana se imalo izvr{iti Monopoly Director, claimed that purchase prices najkasnije do 20. juna; zasadi su se brojali dva could not be higher and that the Progressists had puta: do kraja juna i do kraja jula; kalupqewe put high prices in their law with a view to pushing duvana nije smelo da se vr{i pre 15. oktobra. the monopoly law through the Assembly more easi- Uprava monopola mogla je iz svojih sredsta- ly. Yet, he agreed to an increase in the prices of the va kreditirati proizvo|a~e najvi{e do jedne best tobaccos from 1.5 – 2.5 to 1.5 – 3 dinars per ~etvrtine vrednosti wegove proizvodwe, a s kilogram,115 which was almost insignificant, kamatnom stopom od 6 procenata. Zalogu za because the tobacco of the highest class was pur- potraìvawe uprave predstavqao je sav duvan, a chased in small quantities. As a matter of fact, the ona je mogla za osigurawe uzeti i drugo wegovo most important prices were those of class III and imawe, „{to su sudovi du`ni odobriti na prost discard, because these two categories accounted for zahtev Uprave monopola duvana i protiv ~ega the lion’s share of tobacco produced in Serbia. nema mesta proizvo|a~evoj àlbi”. Jeste da je u The most important time limits were the follow- tada{noj Srbiji sudstvo bilo sporo, a potraì- ing: the Finance Minister was obliged to announce, vawa se napla}ivala te{ko, ali je posledwa not later than October each year, how much tobacco odredba kojom se sudovi obavezuju kako da sude i would be needed in the coming year, what area kojom se ukida pravo àlbe kod oduzimawa se- should be planted with tobacco, as well as the levels qakovog imawa zaista preo{tra. of purchase prices in the coming year; applications Za sa|ewe bez dozvole predvi|ene su dve vrste of farmers for tobacco growing were to be filed with kazni: municipalities from 1 November to 15 December; • ~upawe sadova i zabrana sa|ewa: za pojedinca, the Monopoly Directorate was obliged to inform all ~upawe zasada i zabrana sa|ewa od pet go- those authorized to plant by 1 February; the trans- dina; za op{tinu u kojoj bude znatnog krijum- planting of tobacco had to be carried out by 20 June ~arewa, zabrana sa|ewa od tri godine, zna~i at the latest; plantations were counted twice, by kolektivna kazna; end-June and by end-July; the molding of tobacco • o{tre nov~ane kazne: fiksno od 20 do 100 was not to be performed before 15 October. dinara za prekr{aj i varijabilno, a prema The Monopoly Directorate could extend loans to broju ilegalnih strukova (30 para za jedan) producers out of its own resources up to a quarter of ili kilograma duvana (20 dinara za jedan). the value of their production, at an interest rate of 6 Zakon je jo{ sadrào detaqne odredbe o sa- percent. The collateral for the Monopoly Direc- |ewu duvana, wegovom pakovawu, o otkupu, o maga- torate’s claim was all their tobacco, and it could also cinima, o preradi duvana, o prodaji duvana, o take as security their other properties, “which courts kaznama i o upravi monopola. Za zakonom su of law shall approve at a simple request of the tobac- usledili brojni i jo{ detaqniji pravilnici. co Monopoly Directorate and against which no Interesantno je da je ovaj zakon omogu}avao appeal of the producer shall be allowed”. It is true privatnu proizvodwu duvana za izvoz, jer drà- that in Serbia at that time the judiciary was slow and vi nije davao monopol na izvoz. Dodu{e, ta je enforcement difficult, but this last provision pre- mogu}nost za proizvo|a~e bila gotovo teorij- scribing how courts should handle cases and abro- ska, po{to je i za ovu proizvodwu bilo potrebno gating the right to appeal in case of confiscation of a dobiti dozvolu uprave monopola i pro}i sve farmer’s property was really too much.

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LIBERALI ZA UKIDAWE MONOPOLA Nizawe duvana u selu Šancu Stringing of tobacco in the village of [anac ostale procedure. Jedna grupa seqaka iz Vrawa Planting without a license carried two types of poku{ala je 1908. godine da iskoristi ovu penalties: mogu}nost, dobila dozvole i pripremila 13 • uprooting of plantations and a ban on sowing: for hiqada kilograma duvana. Me|utim, poku{aj je an individual, uprooting of plantations and a propao, jer nisu obezbedili vaqanog trgovca ban on sowing for a period of five years; for a koji }e im prodati rod na inostranoj pijaci, pa municipality where there was a great deal of je duvan prodat upravi monopola za 1 dinar po smuggling, a ban on sowing for a period of three 116 kilogramu. years, meaning a collective punishment; Radikalima nije bilo lako da predloè i • stiff fines: fixed amounts ranging from 20 to 100 podrè ovaj zakon, jer je monopol duvana bio na dinars for a misdemeanor and variable amounts lo{em glasu u Srbiji. Stoga su stalno uveravali based on the number of illegal plants (30 paras da bi oni prvi ukinuli monopol kada bi to, s for one plant) or kilograms of tobacco (20 obzirom na lo{e finansijsko stawe Srbije, bilo dinars for one kilogram). mogu}e. Tako se u izve{taju skup{tinskog The law also contained detailed provisions on finansijskog odbora o predlogu zakona navodi the planting of tobacco, its packaging, purchase, nekoliko razloga u prilog monopola duvana: warehouses, processing, selling, on penalties and prihodi od monopola su garancija za otplatu ne- on the Monopoly Directorate. After the law, kih dràvnih dugova; bez monopola duvana ne bi numerous and even more detailed regulations bilo mogu}e otpla}ivati ove anuitete; monopol followed.

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LIBERALS IN FAVOR OF MONOPOLY LIFTING duvana donosi preko anuiteta jedan lep prihod It is interesting that this law allowed private koga dràva ne moè da se odrekne. tobacco production for exports, since it did not give Liberali su nastavili svoju pri~u, tvrde}i a monopoly on exports to the state. Admittedly, that da je monopol duvana „jedno zlo koje }e na{u possibility for producers was almost theoretical, zemqu da si{e nov~ano i iscedi”, da „{tetno because this kind of production also required a uti~e na ekonomsku snagu naroda” i da je „ubita- license from the Monopoly Directorate, as well as ~an i nekoristan po zemqu”, ~ak i ukoliko je going through all other procedures. A group of dobar za dràvnu blagajnu. Imali su i dobru farmers from Vranje tried in 1908 to use this possi- poentu: tih {est i po miliona prihoda monopo- bility, they were issued licenses and prepared la duvana ne dolazi sa neba, kako je moglo izgle- 13,000 kilograms of tobacco. However, their dati po Vuji}evim re~ima, nego ih srpski attempt failed because they did not manage to find narod pla}a i „odvaja od hrane”. Pozivali su se a good agent to sell their crops on foreign markets, na nauku koja je protiv monopola, na pove}awe so the tobacco was sold to the Monopoly Directorate broja dràvnih ~inovnika koje }e ja~awe mono- for 1 dinar per kilogram.116 pola doneti, pa je ~ak Velizar Kundovi} sa It was not easy for the Radicals to propose and àqewem naveo da }e, ukoliko se donese ovaj support this law, because the tobacco monopoly had zakon, stati {verc srpskog duvana u Bosnu i a very bad reputation in Serbia. For that reason, they Hercegovinu, od koga ìve Podriwe i Gorwa Ra- constantly offered assurances that they would be the |evina, a i drugi krajevi imaju vajde. Avakumo- first to lift the monopoly if that, taking into account vi} je na radikale bacio najgr|u kletvu: „Meni Serbia’s poor financial position, were possible. Thus, je upravo tu`no {to vidim da ti negda{wi a report of the parliamentary finance committee on borci za narodne olak{ice danas prihvataju the bill quoted several reasons in favor of the tobac- ona ista sredstva i na~ine da od naroda izvuku co monopoly: monopoly proceeds were a guarantee {to vi{e novca” koja su koristili mrski for the repayment of certain government debts; napredwaci. A poslanik Sima Nestorovi}, dok without the tobacco monopoly it would not be possi- se zalagao za slobodu preduzetni{tva u Srbiji, ble to repay these annuities; the tobacco monopoly potegao je i mrske Turke kojima je srpski narod was yielding, on top of the annuities, a nice revenue pla}ao desetak, „ali je smeo da seje {ta ho}e, a which the government could not give up. danas ne sme” zbog monopola. „Ovo nije trgovi- The Liberals continued with their story, claiming na, ovo je otimawe. [Dràva – BM] Uzima po{to that the tobacco monopoly was “an evil, which will ho}e, a prodaje po{to ho}e”, kukao je on. financially drain our country until its exhaustion”, Vuji} i radikal Rista Popovi} su se pozvali that it had “an adverse impact on the people’s eco- na to {to monopole duvana imaju i mnoge druge nomic power” and that it was “disastrous and useless zemqe (Francuska, Austrougarska, Italija, Rumu- for the country”, even if it were good for the public nija i Turska, mada ne pomenu{e Ameriku, Engle- purse. They also had a good punch-line: this six and a sku i Nema~ku, koje ga nemaju), {to radikali nisu half million of monopoly proceeds were not falling stvorili te monopole ve} su ih zatekli i sada from the sky, as one could conclude from Vuji}’s samo popravqaju zakon, {to druge alternative words, and they were paid by the Serbian people “at nema, jer su porezi i prirezi ve} previ{e opte- the expense of spending on food”. They made refer- retili narod, dok drugi tipovi oporezivawa ences to science, which was against monopoly, to an

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LIBERALI ZA UKIDAWE MONOPOLA duvana ili nisu realisti~ni (takse na duvane increase in the number of civil servants, which would ili na strukove) ili su isprobani pa nisu dali be brought about by the strengthening of the monop- rezultate (banderole). I bili su u pravu, makar sa oly, and Velizar Kundovi} even mentioned with regret stanovi{ta te{ke finansijske situacije Srbije that in case this law was passed the smuggling of Ser- i nu`nosti da se prihod obezbedi po{to-poto. bian tobacco to Bosnia and Herzegovina would stop, U stvari, osnovna primedba liberala ticala and the Drina Valley region and Gornja Ra|evina se ukupne proizvodwe duvana u Srbiji. Oni su lived on that, while other regions also had benefits. tvrdili da }e je monopol umawiti, {to }e sma- Avakumovi} put the worst curse on the Radicals: “For witi ekonomsku snagu Srbije. Radikali su tvrdi- me, it is absolutely sad to see that these former cham- li suprotno: „ako Bog da, kao {to ima izgleda, mi pions of popular benefits accept today those same }emo kroz 4 godine tro{iti na{eg duvana do 2½ ways and means to extract money from the people, as milijuna kilograma, a docnije i vi{e”, progno- much as they can” that were used by the detested Pro- zirao je upravnik monopola Lazar Pa~u. Ipak, gressists. And deputy Sima Nestorovi}, while advocat- wegova se prognoza ni iz daleka nije ostvarila, ing free entrepreneurship in Serbia, even brought up po{to su i potro{wa i proizvodwa stagnirale, the issue of the hateful Turks, to whom the Serbian odnosno naj~e{}e se kretale izme|u 800 i 900 people had been paying the tithe, but “were allowed to hiqada kilograma godi{we, sve do I svetskog rata. sow whatever they wanted, and today they are not” on Zanimqive su bile skup{tinske diskusije account of the monopoly. “This is not trade, this is oko mawe va`nih ili ~ak tehni~kih detaqa, jer extortion. It buys at its own prices and sells at its own su ~esto izazivale debate o su{tinskim pitawi- prices”, he bemoaned. ma. Na primer, vladin nacrt sadr`ao je odredbu Vuji} and Radical Rista Popovi} referred to the kojom se najavqivala prednost pri izdavawu fact that tobacco monopolies existed in many other

Stari i novi duvanski magacin u @itkovcu The old and the new tobacco warehouse in @itkovac

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LIBERALS IN FAVOR OF MONOPOLY LIFTING dozvola za sa|ewe duvana onima koji u roku od pet countries as well (France, Austria-Hungary, Italy, godina izgrade su{are duvana. Razlog je o~evidan: Romania and Turkey, although they failed to mention da duvan ne bi kisnuo i nepotrebno vlaìo, ve} the U.S., England and Germany, where there was no lepo osu{en dobijao na kvalitetu i ceni. Takmi- monopoly on tobacco) and that the Radicals had not ~ari u demagogiji odmah su uo~ili priliku da created these monopolies but inherited them, and now podvuku kako }e ta odredba pogoditi siroma{nog they were just improving the law. They also main- seqaka koji nema novca za gradwu nekakvih su{a- tained that there was no alternative to that because ra. Nije pomoglo ni obja{wewe da to moè biti taxes and surtaxes were already weighing heavily on obi~na i jeftina da{~ara, ili {upa sa proma- the people, while other types of levies on tobacco were jom. Protivnici su potezali i pitawe slobode either unrealistic (fees on tobacco kinds or plants), or seqaka da gaji duvan kako ho}e i kako zna, a da had already been tested without any results (the ban- dràva ima prava da mu proizvod ne primi derole system). And they were right, at least from the ukoliko je lo{. ûveni radikalski buka~ Ranko standpoint of Serbia’s difficult financial situation and Tajsi} imao je i ovoga puta o{tru, gotovo komuni- the necessity to secure revenue at any cost. sti~ku dosko~icu: „ostanu li su{are u obavezi In fact, the main objection of the Liberals was onda bogatijim proizvo|a~ima da}e se ovim ve}a related to total tobacco production in Serbia. They mogu}nost da eksploati{u siroma{ne”. Prevag- claimed that the monopoly would reduce it, which nula je umerenost drugog radikalskog tribuna, would then undermine Serbia’s economic power. Dimitrija Kati}a: „Mi vidimo kako na{im The Radicals claimed the opposite: “God willing, and proizvodima padaju cene na svetskim pijacama, a there appear to be chances for that, in four years we to zato {to u proizvodwi ne idemo putem nau~- shall consume up to 2.5 million kilograms of our nih otkri}a, ve} sve radimo kako smo nau~ili” od tobacco, and later even more”, estimated the dedova. Po wegovom mi{qewu, treba i „zakonom Monopoly Director, Lazar Pa~u. However, his esti- narediti da se radi onako kako }e od rada biti mate did not even get close to materializing, since koristi”. I su{are su ostale u zakonu. both consumption and production stagnated, i.e. Ili, mnogima uop{te nije bilo jasno za{to they mostly ranged between 800,000 and 900,000 su zakonom predvi|eni nekakvi velikoprodavci, kilograms on an annual basis up until World War I. umesto da dràva pri{tedi tu proviziju i di- Parliamentary discussions about less important rektno radi sa maloprodavcima. Nije pomagalo or even technical details were quite interesting, obja{wewe upravnika monopola Lazara Pa~ua because very often they led to debates on fundamen- kako velikoprodavci moraju da drè okru`na i tal issues. For example, the government draft con- sreska skladi{ta, zajedno sa personalom i evi- tained a provision which announced that precedence dencijom, kako moraju da se brinu o transportu in issuing licenses for tobacco planting would be given duvana, kako }e i oni, u sopstvenom interesu, da to those who built tobacco curing sheds within a five- se bore protiv krijum~arewa i sli~no. „Na taj year period. The reason was obvious: to avoid expo- na~in upreè se privatni interes, li~na dobit, sure of tobacco to rain and unnecessary moisture, but da radi za {to ve}u prodaju, a vaqa znati da je to dry it properly, so that it could achieve better quali- samo velika, obilna, ra{irena prodaja dobit dr- ty and price. The contestants in a demagogy pageant àve… od svakog dinara bi}e dobit ili pola immediately recognized an opportunity to underscore 117 dinara ili 60%”, rekao je Pa~u. how this provision was to affect the poor farmer who

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LIBERALI ZA UKIDAWE MONOPOLA Ocena novog zakona had no money to build some curing sheds. An explanation that it could be a plain and cheap board stall or Prilikom ocene kvaliteta ovoga zakona potreb- a shed with draft was of no help. The opponents also no je po}i od osnovnih pitawa. Da li je monopol brought up the issue of the freedom of the farmer to uop{te bio potreban? Ako jeste, da li ovakav? Da grow tobacco in whichever way he wanted and knew li je odabrana koncepcija dobro realizovana how, while the state was entitled to refuse his product kroz zakonska re{ewa? I sli~no. if it was bad. The famous Radical rabble-rouser, Kod opredeqewa za odgovore na ova pitawa Ranko Tajsi}, had a sharp, almost communist-like moraju se imati na umu i ekonomski i finansij- quip on this occasion as well: “Should curing sheds ski razlozi. Ekonomski se prvenstveno bave remain an obligation, then richer producers will be doprinosom proizvodwe duvana dohotku zemqe i thus given more opportunities to exploit the poor wenom spoqnotrgovinskom saldu, dok se finan- ones”. The moderate views of another Radical tribune, sijski ti~u (neto) doprinosa dràvnoj blagajni. Dimitrije Kati}, prevailed: “We see how the prices of Nema sumwe da fiskus dràve koja ima sla- our products keep falling on world markets, because ba{nu poresku administraciju, a to je bio slu~aj in production we do not follow the road of scientific Srbije, boqe prolazi u monopolskom sistemu, po- inventions, but we do everything the way we have {to se sve pode{ava obezbe|ewu interesa dràve learned” from our grandfathers. In his view, even i naplati monopolskog prihoda. Dràva slobod- “laws should be used to order people to work in the no odre|uje i nabavne i prodajne cene i iz te raz- manner which will bear fruit from that work”. And like ostvaruje dobit, ona odre|uje ko }e i koliko curing sheds remained in the law. proizvesti, ure|uje trgovinu i sli~no. Budu}i da Or, it was not clear to many why the law provid- je tra`wa za duvanom dosta neelasti~na, a i da se ed for some wholesalers, instead of the government duvan smatra porokom, to dràva ima znatno saving that commission and working directly with {iri manevarski prostor za maksimizaciju do- retailers. Explanations offered by Monopoly Direc- biti nego privatni monopolista u obi~nim tor Lazar Pa~u that wholesalers had to maintain dis- granama proizvodwe. Glavni protivnici fisku- trict and county warehouses, including personnel sa, oni koji se nelegalno bave duvanskim poslo- and record-keeping, that they had to take care of vima, mogu da nanesu izvesnu {tetu, ali neveliku the tobacco transport, that they, too, would fight jer mogu da rade iskqu~ivo na sitno. smuggling out of their own interest, and the like, Sa druge strane, ekonomski aspekt monopola were of no help. “In this manner one harnesses the je onaj koji ga dovodi u pitawe. U pravu su bili private interest, the personal gain, to work for high- liberali kada se tu traìli glavne argumente er sales, and it should be known that only high, protiv monopola. Jer, preuzimawe jedne delatno- ample, widespread sales are the profits for the sti od strane dràve te{ko da moè da ostane bez state… from every dinar the state will make either nepovoqnih posledica. Nije bez razloga trì- half a dinar or 60 percent”, said Pa~u.117 {ni metod ekonomske koordinacije, zasnovan na privatnoj svojini, efikasniji od centralno- planskog dràvnog, {to ovde ne}emo dokazivati. Evaluation of the New Law Cena mawe efikasnosti ispoqava se na razne In assessing the quality of this law, one should prona~ine: kroz mawu proizvodwu i izvoz duvanskih ceed from basic questions. Was the monopoly neces-

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LIBERALS IN FAVOR OF MONOPOLY LIFTING proizvoda, ili kroz uve}ane tro{kove u odnosu sary at all? If yes, then was it necessary in this na one koje bi imali privatni preduzima~i. form? Was the chosen concept well implemented I zaista, proizvodwa duvana je stagnirala through legal arrangements? And so on. pod dràvnim monopolom, jer je uprava, i pored In formulating answers to these questions, one sve verbalne brige za proizvodwu, u stvari has to bear in mind both economic and financial gledala samo ono {to joj je i bio osnovni posao: reasons. The economic reasons are primarily related da ostvari planiran neto prihod. U isto vreme, to the contribution of tobacco production to the proizvodwa je brzo rasla u susednim zemqama, national income of the country and its foreign trade kao u Gr~koj i Bugarskoj, a na osnovu pove}ane balance, while financial ones are related to (net) izvozne tra`we. Tako je povr{ina zemqi{ta contribution to the government coffers. pod duvanom u Gr~koj uve}ana za {est puta u There is no doubt that public finance of a 1911. u odnosu na 1860. godinu (sa 6.500 na country which has a weak tax administration, and 118 28.750 akara). Jer, tih decenija je pu{ewe that was Serbia’s case, fares better in a monopoly dobijalo na zamahu u zapadnoj Evropi, pa je i system, since everything is calibrated to the need tra`wa za orijentalnim, „turskim” duvanima to secure state interests and collect monopoly pro- pove}avana, {to je koristilo i zemqama koje su ceeds. The state freely sets both purchase and sell- sadile turske duvane. Srbija nije profitirala ing prices and makes profit on the basis of that dif- od tih tendencija. Dok je prethodnih decenija ference, it determines who will produce and how postojao izvestan izvoz srpskog duvana, dotle je much, regulates trade and the like. Taking into on potpuno nestao pod monopolom. Dok su rani- consideration that demand for tobacco is quite je privatnici nalazili interes u izvozu, dotle inelastic, and that tobacco is considered to be a je dràva, koja je preuzela i spoqnu trgovinu, vice, the state has much more freedom of maneu- zabatalila ovaj posao. Na taj na~in se pokazao ver for maximizing profits than a private monopo- pravi karakter monopola u Srbiji: fiskalni list in ordinary production branches. The main ciq u potpunosti je dominirao nad ekonom- adversaries of public finance, those who are skim, ~ime je zemqi nano{ena {teta. engaged in illegal tobacco dealings, may inflict Tako|e, ~este su bile tvrdwe i u javnosti i u some damage, but not much, because they can politi~kim krugovima o previsokim tro{ko- operate only on a small scale. vima monopola duvana: od prevelikog broja On the other hand, the economic aspect of the zaposlenih, preko prevelikih plata i dodataka, monopoly is the one which calls it into question. The do raznih nepotrebnih materijalnih tro{kova. Liberals were right when they searched for the main âk i ukoliko odbacimo mnoge kao izraz nezna- arguments against the monopoly in this field, wa ili politi~ki motivisanih preterivawa, because it is not very likely that the state can take ne}e nas iznenaditi neracionalnosti kod over an activity without producing some adverse dràvne uprave. effects. There is a reason why the market method of Politi~ko-ekonomski akteri (Vuji} i Pa~u, economic coordination, based on private property, is kao ranije Mijatovi} i Petrovi}) bili su more efficient than the centrally-planned state one, svesni potencijalnih slabosti i opasnosti koje which we shall not prove here. The price of lower nosi dràvno monopolisawe jedne privredne efficiency is manifested in many ways: through grane, pa su poku{ali da ih umawe kroz lower output and exports of tobacco products or

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LIBERALI ZA UKIDAWE MONOPOLA konstruktivna re{ewa. Osnovna filozofija through higher expenses relative to those which bilo je ukqu~ewe privatnog sektora u radwu, kako would have been incurred by private entrepreneurs. bi on, na osnovu sopstvenih zdravih motiva, And indeed, tobacco production stagnated under preuzeo na sebe jedan deo poslova i tako umawio the government monopoly, because the Directorate, neracionalnosti koje dràvno upravqawe nemi- despite all the lip service it paid to production, was novno donosi. Dodu{e, istorija duvanskog mono- actually taking care only of the thing which essential- pola je, u stvari, istorija sve ja~eg podràvqewa, ly was its main task: to collect all the projected net odnosno smawewa uloge privatnog sektora: dok je revenue. At the same time, production was growing 1884. godine samo zaveden monopol izdavawa rapidly in the neighboring countries, like in Greece dozvola za trgovinu duvanom, a sve ostalo osta- and Bulgaria, driven by rising export demand. Thus vqeno privatnom sektoru, dok je 1885. godine the area of land under tobacco in Greece increased ustanovqen pun monopol, ali je izdat na upravqa- six-fold from 1860 to 1911 (from 6,500 to 28,750 we privatnoj firmi, dotle je 1890. godine drà- acres).118 As smoking in those decades was gaining va taj pravi monopol dobrim delom zadràla za ground in Western Europe, the demand for oriental, sebe. Naime, iskustvo sa sprovo|ewem monopol- “Turkish” tobaccos was rising, which was also benefi- skih zakona iz 1884. i 1885. godine pokazalo je da cial for the countries which planted Turkish tobaccos. privatni sektor ima sopstvene motive, pa i snage Serbia did not benefit from those trends. While in the da iskoristi monopol u sopstvenom interesu, a na previous decades there had been some exports of ra~un dràvne blagajne. Stoga je zakon iz 1890. tobacco from Serbia, under the monopoly they com- godine po~ivao na slede}a tri stuba: pletely disappeared. While in the past private busi- • privatna proizvodwa duvana, ali uz dràvnu nessmen had found interest in exporting, the state, regulaciju i kontrolu, which took upon itself foreign trade as well, neglect- • dràvna prerada duvana u beogradskoj fa- ed this business. In this manner, the true character brici i of the monopoly in Serbia was demonstrated: the fis- • privatna trgovina, ali uz dràvnu regula- cal objective completely overrode the economic one, ciju i kontrolu. causing damage to the country. Dràva, razumno, nije poku{ala da organizu- Similarly, in the public as well as in political cir- je proizvodwu sirovog duvana na nekakvim cles, there were many allegations of the excessively dràvnim poqoprivrednim dobrima, ve} je osta- high costs of the tobacco monopoly: from over- vila taj posao seqacima. Me|utim, kako bi onemo- staffing, to overly high salaries and fringe benefits, gu}ila stvarawe paralelnog sistema proizvodwe to various unnecessary material costs. Even if we i trgovine duvanom, koji bi umawivao dràvni dismiss many of them as a reflection of ignorance or prihod, poku{ala je da u celini reguli{e obim politically motivated exaggerations, we should not proizvodwe kroz sistem dozvola za pravo sa|ewa. be surprised to see irrationalities in the public A to je, opet, zahtevalo veliki kontrolni sistem, administration. sa evidencijama, nadzornicima i kaznama, pa ne- The political and economic players (Vuji} and minovno i sa patolo{kom filozofijom da treba Pa~u, just like Mijatovi} and Petrovi} before them) ograni~iti proizvodwu umesto wenog pove}awa. were aware of potential weaknesses and dangers Slede}a faza, faza prerade, odvijala se u je- attending state monopolization of an economic dinoj, dràvnoj fabrici. Ona je, kako izgleda, branch, so they tried to mitigate them through

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LIBERALS IN FAVOR OF MONOPOLY LIFTING funkcionisala osredwe. Nije bila uzor drugim constructive solutions. The basic philosophy was to fabrikama u zemqi, pa je bilo i dosta àlbi na involve the private sector in the activity, in order for wen asortiman, kvalitet proizvoda i tro{kove. it to take upon itself part of the tasks, on the basis of Ali, nije bila ni najgora. Dràva svakako nije its own healthy motives, and thus reduce irrationali- bila dobar preduzetnik, ali je poneko preduze}e ties which public management inevitably brings. mogla da bar prose~no vodi. Admittedly, the history of the tobacco monopoly is, Na kraju, trgovina je, i velika i mala, osta- in fact, a history of the strengthening of the role of vqena privatnicima, ali uz {iroku dràvnu the state, i.e. of the crowding out of the private sec- regulaciju (prodaje se dràvni proizvod po pro- tor: while in 1884 the monopoly was introduced only pisanim cenama, a na osnovu prava trgovine da- on trade in tobacco, through issuance of licenses, tog od strane dràve) i uz strogu kontrolu. Svaki and everything else was left to the private sector, and od trgovaca, i veliko- i maloprodavaca, imao je while in 1885 a full monopoly was introduced, monopol na svom podru~ju, ali ga je bar sticao na although it was leased to a private company to oper- konkurentskim licitacijama. To je i danas preo- ate it, in 1890 the state kept that true monopoly vla|uju}a logika: ukoliko monopol mora da largely to itself. Namely, the experience with the postoji iz tehnolo{kih razloga, najboqe je izda- implementation of the 1884 and 1885 monopoly ti ga privatnicima na konkurentski na~in. laws showed that the private sector had its own Ukqu~ewe privatnika u monopolske poslove motives, and even strength to use the monopoly in svakako je dalo pozitivan doprinos, ali je uticaj its own interest, at the expense of the public purse. dràve ipak bio presudan, a on nije bio povoqan: For that reason, the 1890 law rested on the following previ{e je bio usmeren na fiskalni, a premalo three pillars: na ekonomski ciq. • private tobacco production, but with Me|utim, alternativa monopolima bila je government regulation and control, ve}a orijentacija na neposredne poreze od sta- • government processing of tobacco in the novni{tva, a pre svega seqa{tva, {to je u Srbiji Belgrade factory and onoga vremena bilo nepopularna i zato te{ko iz- • private trade, but with government regulation vodqiva politika. Prilikom usvajawa novog and control. zakona o neposrednim porezima, 1884. godine, The state did not try, and reasonably so, to prvobitni predlog, koga je podràvao i kraq organize the production of raw tobacco on some Milan, bio je dràvni~ki odgovoran i predvi|ao kind of state owned agricultural estates, but left je nivo neposrednih poreza koji bi pove}ao that job to farmers. However, in order to prevent buxetske prihode i likvidirao tada{we defici- the creation of a parallel system of tobacco produc- te. Me|utim, ve} u komisiji koja je pripremala tion and trade, which would decrease public rev- nacrt zakona preovladalo je uverewe da se porez enue, it tried to entirely regulate the output volume mora znatno smawiti, {to je u~iweno: kraq je through a system for licensing the right to plant. nadglasan. I kasnije je optere}ewe seqaka nepo- And that, on the other hand, required a huge con- srednim porezima smawivano, posebno pod radi- trol system, with records, supervisors and penal- kalskim vladama, kako masovnim uvaàvawem wi- ties, then unavoidably also with a pathological phi- hovih i opravdanih i neopravdanih àlbi na raz- losophy that production should be limited, rather rez, tako i tolerisawem dugotrajnog nepla}awa. than increased.

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LIBERALI ZA UKIDAWE MONOPOLA Razlog takvoj popustqivosti prema seqacima la- The next stage, the stage of processing, was car- ko je na}i: politi~ki ra~un, koji je uvek govorio ried out in the only, state owned, factory. As it da se vlada ne sme zamerati najve}em delu bira~- appears, its functioning was neither bad nor good. It kog tela. Demokratija ko{ta. was no model for other factories in the country, and Zbog tih nelagoda sa pove}awem neposrednih there were many complaints about its product range, poreza, jo{ od 1881. godine vodi se politika quality and costs. But, it also was not the worst. The preorijentacije na poreze na promet (potro- state certainly was not a good entrepreneur, but it {wu), tj. na tro{arine. Problem sa wima leào could, at least passably, run a company or two. je u te{ko}ama naplate, koje tada{wa poreska At the end, trade, both wholesale and retail, administracija nije uspevala da re{i na zadovo- was left to private businessmen, but with compre- qavaju}i na~in. Prihod od tro{arina stalno je hensive government regulation (a state product is donosio mawe nego {to je planirano, a zbog sold at prescribed prices, and on the basis of the o~iglednih masovnih prekr{aja zakona i neu- right to trade granted by the state) and with strict speha policijskih vlasti da tome stane na put. control. Any of the traders, wholesalers and retail- Kada sa tro{arinama nije i{lo, preostao je mo- ers alike, had a monopoly in his area, but at least he nopol, kao pogodniji na~in da se naplati porez. won it in a competitive bidding. This logic prevails Pogodniji, zato {to sva koli~ina oporezovanog even today: if there has to be a monopoly for tech- proizvoda bar u jednoj fazi pro|e kroz dràvne nological reasons, it is best to lease it to private par- ruke, pa je i potpunija naplata mogu}a. Kod mo- ties in a competitive manner. nopola duvana je to fabrika, a kod monopola so- The involvement of private parties in monopoly li carinarnica, jer je sva so uvoèna. Naravno, affairs certainly made a positive contribution, but zaobilaèwe dràve postoji i daqe, ali u znatno the influence of the state was still crucial, and it was mawoj meri nego u tro{arinskom sistemu. not favorable: it was too much focused on the fiscal, Da sumiramo. Usled odbojnosti prema pove- and too little on the economic objective. }awu neposrednih poreza, orijentacija na However, an alternative to monopolies was higher posredne (poreze na potro{wu) bila je nemi- orientation toward direct taxes from the population, novna. Usled slabosti administracije za ubira- and primarily the rural segment, which in Serbia at we tro{arine, monopol je bio neminovan. A that time was an unpopular and therefore difficult-to- monopol je dobro zadovoqavao potrebe dràvne implement policy. On the occasion of the adoption of blagajne, ali je donosio ekonomsku {tetu. a new law on direct taxes in 1884, the initial proposal, supported by King Milan as well, was a statesman-like Novi monopolski zakon na delu responsible proposal and envisaged such level of direct taxes which would increase budget revenue and Po novom zakonu izdata su prava velikoprodaje cover the deficits at that time. However, already in a duvana po okruzima Srbije. Radikal Aca Stanoje- commission which had drafted the law, the opinion vi}, „borac za narodna prava”, kako ga je za~ika- prevailed that the tax had to be significantly reduced, vao biv{i radikal i novinar Pera Todorovi}, and it was done: the King was outvoted. Later on, par- preuzeo je pravo velikoprodaje duvana u tri ticularly under Radical governments, the burden of okruga: kwaèva~kom, crnore~kom i krajinskom. direct taxes on farmers was further reduced, both by I drugi vi|eni radikali, kao Joca @. Jovanovi} massive granting of their justified and unjustified

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LIBERALS IN FAVOR OF MONOPOLY LIFTING i Radivoje Martinovi}, preuzeli su svoje okruge. complaints about tax assessment, and by tolerating Opozicija je tvrdila da radikali dobijaju okru- long-standing arrears. The reason for such leniency 119 ge jer su im ponude vi{e za „paru ili dve”, with farmers can be easily found: a political calcula- {to bi zna~ilo da su im ponude konkurenata tion which has always said that the government must bile poznate pre nego {to su podneli svoje. not antagonize the largest portion of the electorate. Po usvajawu novog zakona o monopolu duvana, Democracy has a price. ministar Vuji} je raspisom od 30. oktobra 1890. Due to these setbacks for increasing direct odredio otkupne cene duvana za 1891. godinu. taxes, starting in 1881 a policy of reorientation to Kako }e dràvnom monopolu, naveo je on, biti u sales (consumption) taxes, i.e. excise duties, was 1891. godini potrebno hiqadu do hiqadu i dve pursued. The problem with them lay in the difficul- stotine tona duvana, to zna~i da }e biti zasa|e- ties in collection, which the then tax administration no 1600 do 2000 hektara, odnosno za toliku was not able to resolve in a satisfactory manner. The povr{inu }e biti izdate dozvole za sa|ewe. Da- revenue from excise duties constantly yielded less qe, odredio je podru~ja proizvodwe i otkupne than it had been budgeted, due to obvious mass vio- cene duvana (videti slede}u tabelu). lations of the law and the failure of the police Prvo {to uo~avamo je da se u tabeli ne po- authorities to put an end to them. When it did not miwe Aleksinac, {to je samo posledica admini- work with excise duties, the only remaining thing to strativnih promena kojima je ukinut aleksina~- do was to introduce a monopoly, as a more conven- ki okrug i wegov duvanski deo pripojen kru{e- ient way to collect taxes – more convenient because va~kom okrugu. all the quantity of the taxed product is going Nove otkupne cene duvana bile su u skladu through the government hands, at least at one sa novim zakonom o monopolu duvana i tako ni- stage, so it is possible to achieve a higher collection è od ranijih. Sada je i za duvan koji pripada rate. With the tobacco monopoly, it was the factory, III klasi, dakle koji ne predstavqa {kart, cena and with the salt monopoly the customs house, bilo ispod granice od jednog dinara. Svakako, because all the salt was imported. Of course, the bilo je i nezadovoqnih koji su tvrdili da se du- state was still bypassed, but to a much lower extent van vi{e ne otkupquje od seqaka, ve} se „otima” than in the excise duty system. 120 po 20–30 para kilo. To summarize. Due to the animosity toward a Smawewe otkupnih cena duvana po~etkom rise in direct taxes, the focus on indirect ones (con- 1890-tih godina imalo je svojih jakih razloga. sumption taxes) was inevitable. Due to the weak- Prvo, razvoj doga|aja tokom prethodnih godina nesses of the administration in the collection of pokazao je da je pri tada{wim, povoqnijim excise duties, the monopoly was inevitable. And the otkupnim cenama interes seqaka za sa|ewe duva- monopoly was good in meeting the needs of the na bio velik i prevelik i da dràvni monopol budget, but was economically detrimental. nikako nije mogao da iza|e na kraj sa proizvo|a- ~ima koji su videli dobru priliku da na duvanu lepo zarade. Dràva je poku{avala da odrì New Monopoly Law at Work poèqan nivo proizvodwe kroz sistem dozvola, Tobacco wholesale rights in Serbia’s districts were ali je sa|eno znatno vi{e. Pretila je kaznama, granted under the new law. Radical Aca Stanojevi}, ali ni to nije uspevalo. Jednostavno, proizvo|a~i “a champion of people’s rights”, as he was teasingly

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LIBERALI ZA UKIDAWE MONOPOLA Otkupne cene duvana Purchase prices of tobacco

Kru{evac Vrawe i Bajina Ba{ta Leskovac, Kraqevo, Loznica, D. Milanovac, Kladovo Vlasotince, U`ice Kruševac Vranje and Bajina Bašta Leskovac, Kraljevo, Loznica, D. Milanovac, Kladovo Vlasotince, U`ice osobiti do 4 special up to 4 I klasa 2 do 3 1,5 do 2,5 1,50 do 2 1,50 do 1,80 class I 2 to 3 1.5 to 2.5 1.50 to 2 1.50 to 1.80 II klasa 1,20 do 1,50 1 do 1,20 1 do 1,20 1 do 1,10 class II 1.20 to 1.50 1 to 1.20 1 to 1.20 1 to 1.10 III klasa 0,6 do 1 0,60 do 0,80 0,60 do 0,70 0,60 class III 0.6 to 1 0.60 to 0.80 0.60 to 0.70 0.60 {kart 0,2 do 0,6 0,10 do 0,40 0,10 do 0,30 0,10 do 0,20 discard 0.2 to 0.6 0.10 to 0.40 0.10 to 0.30 0.10 to 0.20

nisu slu{ali, veruju}i da }e se i ovog puta izvu- called by former Radical and journalist Pera Todor- }i od kazni. Teorijski, dràva je mogla i treba- ovi}, was granted the right to engage in tobacco lo da ka`wava seqake po o{trim odredbama wholesale in three districts: of Knjaèvac, Crna Reka monopolskog zakona i da ih na kredibilan and Timo~ka Krajina. Other prominent Radicals, too, na~in vaspitava na po{tovawe zakona, ali to like Joca @. Jovanovi} and Radivoje Martinovi}, took nije ni htela, ni mogla. Jedini je to poku{ao over their districts. The opposition claimed that the stari policajac Nikola Hristi} 1888. godine, Radicals were winning districts, because their bids ali je pad wegove vlade omeo potpuno izvr{ewe were higher by “a cent or two”,119 thus implying that kazni. Radikalna stranka bila je seqa~ka they had known what was in the bids submitted by stranka i nije mogla ni po svojoj ideologiji, a their competitors before they submitted their bids. ni po politi~koj kalkulaciji da mnogo zao- Upon the adoption of the new law on the tobacco {trava sa seqacima na pitawu kazni. Stoga je monopoly, Minister Vuji} set the purchase prices of jedini dobar na~in za re{ewe ove muke bilo tobacco for 1891 in his circular dated 30 October smawewe otkupnih cena i, time, podsticawe sma- 1890. Since in 1891 the government monopoly would wewa proizvodwe duvana. Logika je direktna: need, as he said, between a thousand and a thousand ukoliko su cene niè nego {to su bile, bi}e two hundred tonnes of tobacco, it meant that 1600 to mawi i interes za sa|ewe duvana. Tako }e nestati 2000 hectares were to be planted, i.e. that planting i sam problem prevelike proizvodwe i potenci- licenses would be issued for areas of this size. Fur- jalno neprijateqskog odnosa dràve i seqaka. thermore, he determined the regions for production [tavi{e, kod takvih monopolskih situa- and purchase prices of tobacco (see previous table). cija ipak je boqe regulisati obim proizvodwe The first thing which we can notice is that there politikom cena nego brojem izdatih dozvola. is no mention of Aleksinac in the table, which is a Jer, kada su dozvole regulator proizvodwe a consequence of nothing else but administrative

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LIBERALS IN FAVOR OF MONOPOLY LIFTING Duvanski magacin u Beogradu The tobacco warehouse in Belgrade

cene visoke, tada }e sre}nici koji su uspeli da changes that have eliminated the district of Aleksinac nabave dozvole, verovatno odabrani po partij- and annexed its tobacco part to Kruševac District. skom ili kom{ijskom na~elu, ostvariti veliku, New purchase prices of tobacco were in keep- preteranu dobit od visokih cena, na ra~un ku- ing with the new law on the tobacco monopoly and paca. Wima }e, a ne dràvi, pripasti glavnina thus lower than previous ones. Thus, the price of monopolske dobiti. Sa druge strane, kada se sni- the tobacco falling into class III, that is, which did èwem otkupnih cena reguli{e proizvodwa, not constitute discard, was below the threshold of tada takve dobiti pojedinaca nema, ve} je dràva one dinar. Of course, there were also the discon- ubira u celini. tented who argued that tobacco was no longer pur- Drugi razlog niskih prose~nih cena duvana chased from farmers, but “plundered” at 20–30 koji je otkupqen ovih godina bio je i pogor{an paras per kilo.120 kvalitet duvana. U pravu je bio Mihajlo Vuji}. Strong reasons were underlying a cut in the pur- No, bitan doprinos slabijem kvalitetu dala je chase prices of tobacco in the early 1890s. Firstly, ba{ monopolska uprava svojom politikom proiz- the developments of the previous years demonstrat- vodwe. Naime, u lomovima koje je donelo ustano- ed that with the then, more favorable, purchase vqavawe, pa zatim nacionalizacija monopola prices the interest among farmers for planting duvana, u prili~noj meri je promewen sloj se- tobacco was great, and too great, and that the gov- qaka koji su proizvodili duvan. Jer, radi lak{e ernment monopoly was unsuccessful in coping with kontrole sa|ewa, a i radi povoqnijih uslova the producers who saw in tobacco a chance to make proizvodwe, dràva je nastavila politiku good money. The state endeavored to maintain a

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LIBERALI ZA UKIDAWE MONOPOLA biv{eg zakupca monopola kroz smawewe broja desirable level of production through the license sys- lokacija na kojima se dozvoqava sa|ewe duvana. tem, but considerably more was planted. It threat- Istovremeno, radilo je i partijsko i kom{ijsko ened with penalties, but that did not help either. na~elo, pa su dozvole dobijali jedni, a ne drugi Simply, the producers did not listen, believing that qudi. I jednim i drugim mehanizmom mewao se this time, too, they would escape punishment. Theo- sastav grupe seqaka koji su se bavili duvanom, a retically speaking, the state could and should have problem je donosila ~iwenica da je proizvodwa punished farmers pursuant to the stringent provi- duvana tehnolo{ki sloènija od proizvodwe sions of the monopoly law and taught them to mnogih drugih poqoprivrednih kultura, tj. da observe the law in a credible manner, but it neither zahteva ve}a i znawa i ume}a. Dakle, kada oni wanted to do that, nor could do it. The only one who koji znaju kako se radi duvan prestaju time da se tried to do that was old policeman Nikola Hristi} in bave i kada duvanom po~iwu da se bave oni koji to 1888, but the fall of his government prevented the ne znaju i kojima treba vi{e godina da to saznaju, full execution of punishments. The Radical Party onda je prirodno da do|e do pogor{awa kvalite- was a party with a rural following and it could not be ta duvana u Srbiji. particularly tough on farmers regarding the issue of Tre}e, mnogi u Srbiji krenuli su pogre{nim penalties, both because of its ideology and because of putem: maksimizovali su koli~inu duvana, vero- its political calculations. Therefore, the only right vatno se nadaju}i da }e se sa kvalitetom, a time i way to resolve this problem was to reduce the pur- sa cenom, nekako provu}i, {to se ~esto nije doga- chase prices and thus encourage a cutback in tobac- |alo. Naime, kako re~e jedan poslanik, „duvan co production. There is a very direct logical link: if 121 treba da se neguje kao malo dete”, {to zna~i da the prices are lower than before, the interest in on zahteva puno rada i ve{tine kako bi se dobio tobacco planting will be reduced. Thus, the problem dobar kvalitet, pa obi~no nije bilo mogu}e of overproduction and potential hostility between posti}i i veliku proizvodwu i dobar duvan. the state and farmers will disappear. I ~etvrto, izgleda da vremenske prilike Furthermore, in such monopoly situations it is nisu bile naklowene proizvo|a~ima duvana u still better to regulate the output volume by means nekoliko posledwih godina. Kako re~e pisac iz of pricing policy than by means of the number of Trgovinskog glasnika, tek se u 1891. godini issued licenses. When licenses are the regulator of o~ekivala dobra berba duvana i po kvalitetu i po production, and the prices are high, then those lucky 122 kvantitetu, prva takva od uvo|ewa monopola. ones who have managed to obtain licenses, selected Kako je vreme prolazilo, svi su se navikavali probably on the basis of the party principle or crony- na monopol i prakti~no vi{e nije bilo glasova ism, will make a huge, excessive profit from the high za wegovo ukinu}e, osim liberalnih. I Trgovin- prices, at the expense of customers. They, and not ski glasnik je po~etkom 1892. godine rezonovao the state, will get the bulk of the monopoly profits. na slede}i na~in: „o monopolu duvana i soli On the other hand, when output is regulated by a moè se re}i da napreduje od kako je u rukama dr- decrease in purchase prices, then there are no such àve i te{ko bi se prema na{im prilikama windfall gains for individuals, but all the profit goes 123 mogao zameniti kakvim regalima ili taksama”. to the government. Ipak, nisu svi bili zadovoqni wime. Proiz- The second reason for low average prices of vo|a~i, na primer. Uprava monopola umela je da tobacco which was purchased in those years was the

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LIBERALS IN FAVOR OF MONOPOLY LIFTING vrlo zakasni sa isplatama za ve} preuzeti duvan i deterioration in its quality. Mihajlo Vuji} was right. da proizvo|a~e dovede u neprilike. Tako se i Yet, a significant contribution to the drop in quality glavna dràvna blagajna àlila po~etkom 1892. was made precisely by the Monopoly Directorate godine da Poreska uprava ne moè da naplati ne- through its production policy. Namely, in the struc- posredni porez od seqaka zato {to im monopol- tural breaks caused by the introduction, and then ska uprava nije isplatila duvan. Morao je i vr- nationalization of the tobacco monopoly, the segment {ilac du`nosti ministra finansija i predsed- of the rural population that produced tobacco was sig- nik vlade Nikola Pa{i} da bude o{tar: „Nare|u- nificantly changed. For the purpose of facilitating the 124 jem toj upravi da {to pre isplati duvan”. control over planting and of creating conditions more conducive to production, the government continued Poskupqewe iz 1892. godine with the policy of the former monopoly lessee in terms of reducing the number of locations where it Prvog februara 1892. godine ponovo su poskupe- was allowed to grow tobacco. At the same time, the li duvanski proizvodi, i to po 5 dinara po ki- party principle and cronyism were both at work, so logramu za gotovo sve kategorije duvana, ukqu~u- licenses were issued to one particular group of people ju}i i cigarete. Tek za dve najslabije vrste srp- and not to another group. Both mechanisms were skog duvana cena je pove}ana samo za 1 i 2,5 di- changing the makeup of the group of farmers who nara po kilogramu. O~igledno je da je dràva were engaged in tobacco growing, and the problem re{ila da jo{ vi{e otvori makaze cena, tj. da was posed by the fact that the production of tobacco pove}a razliku izme|u prodajnih i otkupnih was technology-wise more complex than the produc- cena duvana ne bi li se pove}ala zarada mono- tion of many other field crops, i.e. that it required pola i buxeta. Smawewe otkupnih cena ve} je more knowledge and skills. Accordingly, when those bilo u toku tih godina, a sada je u~iwen jedan who know how to cultivate tobacco stop doing it and znatan skok i u prodajnim cenama duvana i du- when those who do not know how tobacco is cultivat- vanskih prera|evina. ed, and who need several years to master it, start cul- Prodajne cene duvana znatno su pove}ane ot- tivating tobacco, then it is only natural to see the dete- kada je u Srbiji uveden prvi monopol 1884. go- rioration in the quality of Serbian tobacco. dine: za posledwih „7–8 godina sko~ila cena Thirdly, many in Serbia took a wrong path: they duvanu u nekoliko mahova, 3–4 pa i pet puta, maximized the quantity of tobacco, probably hoping prema onoj kad je” bila slobodna prodaja, podse- that with the quality, and thus with the price, they 125 }ao je Trgovinski glasnik. I zaista, pu{a~i would somehow just slip through, which was not su morali da svoje zadovoqstvo plate vi{te- often the case. As a deputy once said, “tobacco struko skupqe u odnosu na vreme pre monopola. needs care like a baby”,121 which means that it Dok se kod monopola soli dràva zadovoqila requires a lot of work and skill in order to get good time {to je preuzela zaradu ranijih trgovaca quality, so usually it was not possible to have both soqu, po{to su prodajne cene soli ostale prak- high production and good tobacco. ti~no iste, dotle je kod duvana pristup o~i- And fourthly, it seems that the weather was not gledno bio ambiciozniji. kind to tobacco producers in the last several years Neobi~an je bio na~in na koji je izvedeno of that period. As an author in Commercial Herald poskupqewe: gotovo za sve kategorije duvana put it, a good harvest of tobacco, both in terms of

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LIBERALI ZA UKIDAWE MONOPOLA Kutija ènskih cigareta A pack of women's cigarettes odre|eno je jednako pove}awe u dinarima, {to quality and quantity, was not expected before 1891, zna~i da je onaj slabiji i sredwi duvan najvi{e and that would be the first such harvest since the poskupeo kada se gleda procentualno. To zna~i introduction of the monopoly.122 da je dodatno fiskalno optere}ewe ve}im de- With the passing of the time, everybody was get- lom palo na {iroke narodne mase, a daleko ting used to the monopoly, and practically speaking, mawim na boqe stoje}e slojeve. Uzrok tome there were no more voices asking for its lifting, o~igledno je shvatawe da se od boqestoje}ih except for the Liberal ones. And here are the gra|ana ne moè naplatiti velika masa mono- thoughts of Commercial Herald in early 1892: “as polske takse, a zbog malobrojnosti, i da je for the tobacco and salt monopolies, one could say nu`no, kako bi se monopolska blagajna lepo that they are thriving in the hands of the govern- napunila, da se znatno vi{e opterete siroma- ment and it would be difficult to replace them by {niji, ali daleko brojniji slojevi pu{a~a. some regal fees or levies in our circumstances”.123 Takav jedan nepopularan potez mogla je na da se- Still, not all were happy about it. Producers, for be preuzme samo ona vlada koja uìva {iroku instance. It was not strange for the Monopoly podr{ku u narodu, a takva je radikalska bila. Directorate to be very late with payments for tobac- Pogledajmo malo bliè asortiman duvan- co which had already been delivered, thus causing skih prera|evina koji se 1892. godine nalazio u trouble to producers. Likewise, the central state prometu, a u organizaciji monopolske uprave. treasury complained in early 1892 that the Tax Osnovna podela je na turski i srpski duvan, Administration was not able to collect the direct tax turske i srpske cigarete sa i bez piska, cigare from farmers because the Monopoly Directorate i burmut. had not paid them for the tobacco. Even the acting Turski duvan se prodavao u ~etiri kategorije Finance Minister, Prime Minister Nikola Paši}, had po kvalitetu: specijalna, prva, druga i tre}a to be tough: “I order that Directorate to pay the (ènske cigarete). Za dve najvi{e kategorije tobacco as soon as possible”.124 pakovawa su bila po 500, 100 i 50 grama u limenim kutijama i po 20 grama u kutijama od hartije. Za dve slabije kategorije turskog duvana The 1892 Price Increase pakovawa su bila po 500 i 100 grama u limenim On 1 February 1892, the prices of tobacco products kutijama i po 20 grama u kutijama od hartije. went up again, by 5 dinars per kilogram for almost all Srpski duvan nije pakovan u limene, ve} u the categories of tobacco, including cigarettes. Only kutije od hartije i u pakle. Kod prve kategorije for the two lowest-quality kinds of Serbian tobacco duvana pakovawa od po 500 i 100 grama bila su the price increase amounted to just 1 and 2.5 dinars kutije od hartije, a od po 40 i 20 grama pakle. U per kilogram. It was obvious that the government had drugoj kategoriji kutije od hartije koristile su decided to further widen the price squeeze, i.e. to se za pakovawe od pola kilograma, a pakle za 40 i increase the difference between the selling and pur- 20 grama, kao i za 100 grama za lulu. Tre}a vrsta chase prices of tobacco in an attempt to increase the srpskog duvana i{la je u kutiju od hartije (500 earnings of the monopoly and revenue for the budget. grama) i u pakle (40 i 20 grama), dok je ~etvrta Cuts in the purchase prices were already under way in kategorija, a to je bio krupno se~en i jeftin those years, and with this a significant leap was made duvan za lulu, tako|e pakovana u pakle. in the selling prices of tobacco and tobacco products.

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LIBERALI ZA UKIDAWE MONOPOLA Kod turskih cigareta nije bilo razlike u The selling prices of tobacco increased consider- pakovawu izme|u kategorija ili prema tome da ably after the introduction of the first monopoly in li cigarete imaju pisak ili ne. Postojala su tri Serbia in 1884: in the “last 7–8 years the tobacco pakovawa po broju cigareta: po 500, 100 i 20. price went up on several occasions, 3–4 and even Pakovawe za 500 cigareta bila je limena kutija, five times, relative to the one” from the days when a za 100 i 20 cigareta kutija od hartije. trade was free, recalled Commercial Herald.125 And Kod srpskih cigareta sa piskom obe katego- indeed, smokers had to pay for their pleasure several rije imale su pakovawa od po 500 i 100 cigareta times more than in the times before the monopoly. u kutijama od hartije i od 20 cigareta u paklama. While in the case of the salt monopoly the state was Kod srpskih cigareta bez piska prve dve katego- satisfied with just taking over the earnings made by rije su pakovane jednako kao kod cigareta sa salt merchants in the past, since the selling prices of piskom, a postojala je i tre}a kategorija sa dva salt remained practically the same, in the case of pakovawa: od 500 komada u kutiji od hartije i od tobacco the approach was obviously more ambitious. 20 komada u pakli. The manner in which this price increase was car- Primetimo jo{ nekoliko stvari. Prvo, da ci- ried out was unusual: for almost all tobacco categories garete nisu imale nazive – marke, kako je to ve} the price increase in dinar terms was the same, which tada bilo uobi~ajeno u mnogim zemqama. O~i- meant that the prices of low- and medium-quality gledno se to smatralo nepotrebnim u jednoj zemqi tobacco went up the most in percentage terms. It fur- sa monopolom duvana u kojoj postoji mali broj ka- ther meant that a larger share of the additional fiscal tegorija cigareta, pa se one lako mogu razlikovati burden fell on poorer segments of the population, and i bez zvu~nih, nepotrebnih naziva. Drugo, srpski a much smaller portion on the more affluent strata. pu{a~ u to doba mogao je da bira izme|u cigareta The reason for that evidently was the realization that sa piskom i bez wega. Svakako, savremeni filteri the absolute amount of the monopoly fee collected tada nisu bili poznati. I tre}e, tada su bila from better-off citizens could not be particularly high, uobi~ajena dosta velika pakovawa duvana i ciga- due to their small number, and that it was necessary, reta, ~ak od pola kilograma ili od 50 i sto grama, in order to adequately fill the monopoly purse, to odnosno cigareta. Izgleda da se niko nije previ- place a much heavier burden on the poorer, but far {e brinuo zbog su{ewa duvana, odnosno cigareta. more numerous segment of smokers. Such an unpop- Asortiman cigara bio je {irok – ~ak 21 ular move could be made only by a government which marka. Prodavale su se u pakovawima od po 100 enjoyed wide popular support, and that was the case komada, ali i na komad. Tri najjeftinije vrste with the Radical government. bile su Srpska, Tompus i Virxinija (5 para po Let us take a closer look at the range of tobacco komadu), dok su tri najskupqe bile Manuel products which were on offer in 1892, in the organ- Garsija (75), Fler de Kuba (80) i La Karolina ization of the Monopoly Directorate. The main divi- (100 para po komadu). sion was into Turkish and Serbian tobacco, Turkish Burmuta je bilo tri vrste: inostrani ^am i and Serbian cigarettes with or without a mouth- Rene de Pari i doma}i bez imena, sa cenama 15, 8 piece, cigars and snuff. i 3 dinara po kilogramu respektivno. Pakovani Turkish tobacco was sold in four quality cate- su u kutije od hartije od po 50 grama, a ^am i u gories: the special, first, second and third (women’s kutiju od 20 grama. cigarettes). For the two highest categories, the

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LIBERALS IN FAVOR OF MONOPOLY LIFTING Uvoz duvana i prera|evina bio je umereno packages were of 500, 100 and 50 grams in tin cariwen do prole}a 1892. godine: 1 dinar po boxes and of 20 grams in paper hard packs. For the kilogramu za duvan u listu i 2 dinara za kriàn two inferior categories of Turkish tobacco, the (se~en) duvan, cigare i cigarete. U sklopu nove packages were of 500 and 100 grams in tin boxes carinske tarife, koja je donela veliko pove}awe and of 20 grams in paper hard packs. gotovo svih carinskih stavova, umnogome je uve- Serbian tobacco was not packed in tin boxes, }ana i carina na duvan i duvanske prera|evine: but in paper hard packs and soft packs. For the first 3,2 dinara po kilogramu za duvan u listu i 10 category of tobacco, the packages of 500 and 100 dinara po kilogramu za kriàn duvan, cigare i grams were in hard packs, and of 40 and 20 grams cigarete. Ipak, te prohibitivne carine trajale in soft packs. In the second category, paper hard su kratko: ve} juna 1893. godine carinska tari- packs were used for half a kilo packages, and soft fa je vra}ena na raniju, od jedan i dva dinara po packs for 40 and 20 gram packages, as well as for kilogramu. Naravno, carinu nije, pored kraqev- 100 grams of pipe tobacco. The third kind of Ser- skog doma i diplomatskog kora, pla}ala ni bian tobacco was sold in paper hard packs (500 dràva za sve {to „za svoju potrebu neposredno grams) and soft packs (40 and 20 grams), while the unosi”, a time ni za uvezeni duvan za potrebe fourth category, which was crudely cut and cheap fabrike duvana. Ona je vaìla samo za privatan, pipe tobacco, was also packed in soft packs. sitan uvoz. In the case of Turkish cigarettes, there were no Carina, pak, nije bila jedina da`bina koja differences in packages based on their category or se pla}ala pri uvozu duvana, naravno onda kada according to whether the cigarettes had a mouth- se dobije uvozna dozvola od uprave monopola, a to piece or not. There were three packages according to se doga|alo izuzetno retko. Lista drugih da`bi- the number of cigarettes: of 500, 100 and 20. The 126 na pri uvozu bila je slede}a: package for 500 cigarettes was a tin box, and for 100 1. sporedne takse and 20 cigarettes a paper hard pack. a. kantarina od 100 kg 0,10 dinara In the case of Serbian cigarettes with a mouth- b. no{evina od 100 kg 0,20 dinara piece, in both categories there were packages of 500 v. kaldrmina od 100 kg 0,10 dinara and 100 cigarettes in paper hard packs and of 20 g. taksa za deklaraciju, po jednoj cigarettes in soft packs. In the case of Serbian ciga- ekspediciji 0,25 dinara rettes without a mouthpiece, the first two categories d. statisti~ka taksa, were packed in the same manner as the cigarettes od komada 0,50 dinara with a mouthpiece, and there was also the third cat- 2. obrtni porez 7% od 100 dinara vrednosti egory with two packages: of 500 pieces in a paper 3. monopolska taksa: hard pack and of 20 pieces in a soft pack. a. za 1 kg kriànog duvana 50 dinara Several other things deserve our attention. b. za 1000 cigareta 65 dinara Firstly, cigarettes did not have names, i.e. brands, as v. za 100 cigara 50 dinara was normal in many countries already back then. It A uvoz duvana za potrebe fabrike vr{ila je was obviously considered unnecessary in a country uprava monopola, i to putem tendera. Tako je, na with a tobacco monopoly, where there was a small primer, juna 1892. godine, raspisala „ste~aj za number of cigarette categories, so it was easy to dif- nabavku turskih duvana” za period do 1. jula ferentiate among them even without resounding,

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LIBERALI ZA UKIDAWE MONOPOLA 1893, zna~i za godinu dana. Traìla je ponude za superfluous titles. Secondly, the Serbian smoker at slede}e vrste i koli~ine: that time could choose between cigarettes with a \ubek Jaka ekstra kvalitet 1500 kg mouthpiece and without it. Certainly, modern fil- \ubek Jaka I kvalitet 5000 kg ters were not known then. And thirdly, at that time Smirna I kvalitet 1500 kg fairly large packages of tobacco and cigarettes were Kir 7000 kg normal, even of half a kilo or of 50 and 100 grams, Siranaspale Jaka 15000 kg or cigarettes. It seems that no one was too much Basma I kvalitet 20000 kg worried about tobacco, or cigarettes, getting dry. Basma II kvalitet 20000 kg The range of cigars was wide – as many as 21 Kar{i Jaka \ubek II kvalitet 10000 kg brands. They were sold in packages of 100 pieces, Prihvatao se samo duvan iz berbe od 1891. but also by piece. The three cheapest kinds were godine, traìla se kaucija od 15%, duvan su Serbian, Tompus and Virginia (5 paras a piece), primale stru~ne komisije upore|ewem muste while the three most expensive ones were Manuel duvana koja se predavala pri predaji ponude sa Garcia (75), Fleur des Cuba (80) and La Carolina duvanom koji se uvozi, rok predaje ponuda bio je (100 paras per piece). 127 15 septembar. There were three kinds of snuff: foreign Chum and Rene des Paris and a domestic one which was Posledwi poku{aj liberala nameless, with the prices of 15, 8 and 3 dinars per kilogram respectively. They were packed in paper Po smrti jednog od kraqevskih namesnika juna hard packs of 50 grams, and Chum in a 20 gram 1892. godine zao{trio se sukob izme|u preostala hard pack as well. dva namesnika i radikalne stranke, pa su name- Import duties on tobacco and tobacco products snici u avgustu doveli na vlast svoju liberalsku were moderate until the spring of 1892: 1 dinar on a stranku, na ~elu sa Jovanom Avakumovi}em. Da bi kilogram of tobacco leaves and 2 dinars on a kilo- objasnila narodu svoje namere, nova vlada je ob- gram of cut (shredded) tobacco, cigars and ciga- javila program rada, koji je, kao i svaki poli- rettes. As part of new customs tariffs, which brought ti~ki program, sadrào puno lepih re~i i large increases in almost all tariff lines, the customs dobrih zalagawa. U finansijskoj politici, duty on tobacco and tobacco products was signifi- stajalo je izme|u ostaloga: „monopoli duvana i cantly raised: 3.2 dinars on a kilogram of tobacco soli bi}e ukinuti zakonodavnim putem, u prvom leaves and 10 dinars on a kilogram of cut tobacco, skup{tinskom sazivu”, {to je bila va`na ta~ka cigars and cigarettes. Still, these prohibitive tariffs 128 predizbornog programa liberala. lasted for just a short while: already in June 1893 Komentari vladinog plana bili su razli~i- customs tariffs were returned to their previous lev- ti. êdomiq Mijatovi} je, na primer, pozdravio els, of one and two dinars per kilogram. Of course, spremnost liberalske vlade da zasu~e rukave i besides the Royal Household and the diplomatic bori se za izlazak zemqe iz politi~ke i ekonom- corps, the government, too, did not pay customs sko-finansijske krize, ali je ukazao da najve}a duties on everything which it “for its needs directly slabost programa leì u finansijskoj oblasti: imported”, including the tobacco imported for the „meni se ~ini da je ba{ financijski deo li- needs of the tobacco factory. They were applicable beralnog programa ne samo slab, nego i pun only to private, small imports.

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LIBERALS IN FAVOR OF MONOPOLY LIFTING Yet, the customs duty was not the only levy imposed on tobacco imports, of course, in those cases where an import license was issued by the Monopoly Directorate, and that happened extremely rarely. A list of other fees on imports was as follows:126 1. secondary fees a. steelyard money on 100 kg 0.10 dinars b. freight money on 100 kg 0.20 dinars c. cobble money on 100 kg 0.10 dinars d. fee for declarations, per expedition 0.25 dinars e. statistical fee, per piece 0.50 dinars 2. turnover tax 7% on 100 dinar of value 3. monopoly fee: a. on 1 kg of cut tobacco 50 dinars b. on 1000 cigarettes 65 dinars c. on 100 cigars 50 dinars Tobacco for the needs of the factory was imported by the Monopoly Directorate, by means of a tender. Thus, for example, in June 1892, it announced “an invitation to bid for the procurement of Turkish tobaccos” for the period to 1 July 1893, meaning for a year. It invited bids for the following types and quantities: Ðubek Jaka extra quality 1500 kg Ðubek Jaka quality I 5000 kg Smirna quality I 1500 kg Kir 7000 kg Siranaspale Jaka 15000 kg Basma quality I 20000 kg Basma quality II 20000 kg Karši Jaka Ðubek quality II 10000 kg Only the tobacco from the 1891 harvest was acceptable, the caution money in the amount of 15 percent was requested, and the receipt of the tobacco was performed by technical commissions which compared the sample of the tobacco submitted in support of the bid with the imported tobacco; the deadline for the submission of the bids was 15 September.127

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LIBERALI ZA UKIDAWE MONOPOLA opasnosti”. Jer, planirano ukinu}e monopola The Last Attempt by the Liberals soli i duvana „oteà}e i uspori}e ozdravqava- we na{ih financija”. Jo{ bi se bez monopola After the death of one of the King’s regents in June soli moglo, ali se bez monopola duvana ne mogu 1892, the conflict between the remaining two regents sanirati srpske finansije, po{to on donosi i and the Radical Party heightened, so in August the donosi}e zna~ajne i sve zna~ajnije prihode (ne- regents brought to power their Liberal Party, led by 129 to 5 miliona za koju godinu). Jovan Avakumovi}. With a view to explaining to the Kao prvi korak nove politike, novi mini- people its intentions, the new government published star finansija Dimitrije Stojanovi} formi- its work program, which contained, as any other rao je brojnu komisiju stru~waka, ~iji je ciq political program, many nice words and good inten- bio istraìvawe puteva za ukidawe monopola tions. Financial policy envisaged the following, soli i duvana, odnosno ispitivawe na~ina da se among other things: “the tobacco and salt monopo- obezbede dotada{wi dràvni prihodi od duvana lies will be lifted by the legislature, in the first session i soli i da se reguli{u pravni odnosi koji su of the Assembly”, which was an important item of the uspostavqeni na bazi monopola (zaloèni pri- electoral manifesto of the Liberals.128 hodi itd), a da se poloàj stranaka ne pogor{a. Comments on the government plan were various. Za predsednika postavqen je davna{wi mini- êdomilj Mijatovi}, for example, welcomed the readi- star finansija Milovan Jankovi}, a ~inili su ness of the Liberal government to roll up the sleeves je mnogi trgovci i vi{i ~inovnici, kao i dva and fight for overcoming the political and economic- mla|a profesora ekonomije sa Velike {kole: financial crises in the country, but he pointed out that Mili} Radovanovi} i Aleksandar Borisavqe- the main weakness of the program lay in the field of vi}. Prvi stav re{ewa o imenovawu komisije finances: “it seems to me that particularly the finan- glasio je: „Vlada je re{ila da se ukine monopol cial part of the Liberal program is not only weak, but duvana i soli.” Na to je upravnik monopola also full of dangers”. For, the planned lifting of the Lazar Pa~u odgovorio ostavkom, navode}i da ne monopolies on salt and tobacco was to “make more èli da snosi odgovornost za lo{e funkcioni- difficult, and slow down, the healing of our finances”. sawe monopola, po{to se ve} pokazuju nepovoqne While one could somehow do without the salt monop- posledice najave wegovog ukidawa. Da Pa~u nije oly, without the tobacco monopoly there was no way preuveli~avao pokazuje zapomagawe v.d. direk- to rehabilitate Serbian finances, since it was bringing, tora fabrike par nedeqa kasnije, kada je traìo and was supposed to continue bringing, substantial hitan uvoz boqih turskih duvana po{to ih na and ever more substantial revenue (to reach 5 million 130 skladi{tu uop{te nije bilo. net in a couple of years).129 Posle Pa~uove ostavke, za vr{ioca du`nosti As the first step of the new policy, new Minister upravnika monopola postavqen je Gli{a Haxi of Finance Dimitrije Stojanovi} set up a numerous Popovi}, tek postavqen za {efa administrativ- commission of experts, whose purpose was to explore no-krijum~arskog odseka uprave, a za vr{ioca ways for lifting the salt and tobacco monopolies, i.e. du`nosti direktora fabrike duvana, umesto to explore ways for avoiding the loss of revenue pre- Badera, inèwer Svetolik Popovi}. viously coming from tobacco and salt, and to regulate Budu}i da je ukidawe monopola najavqeno legal relationships which had been established on the od strane vlade, kao i da je liberalska vlada basis of the monopolies (collateralized revenues, etc.)

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LIBERALS IN FAVOR OF MONOPOLY LIFTING teìla pove}awu svoje ina~e skromne popular- without exacerbating the position of the parties. nosti gotovo po svaku cenu, to je nastalo popu- Milovan Jankovi}, a one-time finance minister, was {tawe stege koju svaki monopol podrazumeva. appointed as Chairman, and the commission com- Kr{ewe monopolskih propisa postalo je prised many merchants and senior officials, as well as obi~na pojava, pa se duvan po~eo gotovo otvore- two young economics professors from the Great no prodavati po pijacama, a bez reakcije duvan- School: Mili} Radovanovi} and Aleksandar Borisavl- skih nadzornika i straàra. âk je i otkup jevi}. The first paragraph of the decision on the duvana za 1893. kasnio nekoliko meseci (izvr- appointment of the commission read: “The Govern- {en je uglavnom tek u maju, pod novom radikal- ment has decided to lift the monopolies on tobacco skom vladom), {to je dovelo do {irokog kori- and salt”. Monopoly Director Lazar Pa~u responded {}ewa dràvnog duvana u privatnoj reìji i to that with a resignation, stating that he did not pada prodaje i prihoda od monopolskog duvana. want to bear responsibility for the poor operation of Vuji} je ovo stawe blago nazvao „dezorganizova- the monopoly, since adverse consequences of the 131 no{}u” uprave monopola. announcements of its abolition were already being Vlada liberala nije uspela da u~ini ne{to felt. Pa~u had not been exaggerating, as one could see vi{e na zakonodavnom planu, pa ni da ukine from the cries for help of the acting General Manager monopole. Jer, trajala je kratko, ni punih godinu of the Factory several weeks later, when he requested dana, a drugi deo wene vladavine potro{en je u the urgent import of better Turkish tobaccos, since velikom, bezuspe{nom naporu da se pobede radi- there was none in the warehouses.130 kali na izborima od 25. februara 1893. godine. After Pa~u’s resignation, Gliša Hadì Popovi}, a Svakako, u ovoj èstokoj kampawi nije zaobi|en recent appointee to the position of the Head of the ni duvan kao sredstvo za pridobijawe glasa~a. Administrative – Smuggling Unit of the Directorate, Tako je, na primer, u tada najtira`nijim novina- was appointed as acting Monopoly Director, and ma, Malim novinama Pere Todorovi}a, obja- Svetolik Popovi} was appointed as acting General vqeno pismo potpisano sa „nekoliko beograd- Manager of the tobacco factory, replacing Bader. skih duvanxija”, koji su tvrdili da je monopol Bearing in mind that the lifting of the monopoly duvana pokora za sve duvanske radnike i duvansku was announced by the government, as well as that the bran{u i da ga treba ukinuti prvom prilikom, a Liberal government aspired to increase its otherwise to je ova koja }e nastati po izborima, da svakako modest popularity almost at any price, the relaxation treba ostaviti „na stranu svaki partaizam” i of the tightness which is inherent in any monopoly „zaboraviti na partije”, pa su pozvali svoje kole- set in. Breaching monopoly regulations became a ge duvanxije i druge rodoqube da „u skup{tinu daily occurrence, so people began to almost overtly po{aqemo qude koji }e izvesti ukidawe monopo- sell tobacco in open markets, without provoking any la”. Stvarno primer nepartijskog poziva da se reaction whatsoever from tobacco supervisors and glasa za liberale! A liberali su ve} najavili da guards. Even the purchase of tobacco for 1893 was }e jedan od prvih poslova wihove vlade po delayed by several months (it was carried out as late sastanku skup{tine 25. marta biti ba{ ukidawe as May, for the most part, under the new Radical gov- 132 monopola duvana i soli. ernment) which led to a wide use of government I zaista, ~ak i posle izbora, kada se skup- tobacco by private parties and a fall in the sales of, {tina sastala i kada su liberali verovali da and proceeds from, the monopoly tobacco. Vuji}

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LIBERALI ZA UKIDAWE MONOPOLA imaju skup{tinsku ve}inu i da im je vlast obez- euphemistically termed this situation as “disorgani- be|ena, radili su na ukidawu monopola: vlada je zation” of the Monopoly Directorate.131 pripremila takav nacrt zakona koji je trebalo da The Liberal government did not succeed in bude razmatran na prvoj redovnoj sednici slede- doing anything more in the legislative area, and it 133 }ih dana. Sudbina monopola duvana u Srbiji never lifted the monopolies, for the government last- visila je o koncu, a presudu je doneo jedan ed for a short while, not even a whole year, and the kraqevski dr`avni udar. second part of its reign was spent in a huge, futile effort to beat the Radicals in the election of 25 Feb- ruary 1893. Of course, in this aggressive campaign, tobacco was not forgotten as a means to win voters over. Thus, for example, in the newspaper which had the highest circulation at that time, Pera Todorovi}’s Lesser Newspaper, a letter was published signed by “several Belgrade tobacconists” who claimed that the tobacco monopoly meant distress for all tobacco workers and the tobacconist trade and that it should be lifted at the first possible opportunity which would arise after the election, that “any partyism should be left aside” by all means and that “parties should be forgotten”. They called upon their fellow tobacconists and other patriots “to send to the Assembly the people who would carry out the lifting the monopoly.” A real example of a non-partisan call to vote for the Liberals! And the Liberals had already announced that one of the first jobs of their government, after the convening of the Assembly on 25 March, was going to be nothing else but the lifting of the monopolies on tobacco and salt.132 And indeed, even after the election, when the Assembly was in session and when the Liberals believed that they had the parliamentary majority and that their rule was secured, they worked on the Kutija cigareta lifting of the monopoly: the government prepared a A pack of cigarettes draft law for that purpose which should have been considered at the first regular sitting in the upcom- ing days.133 The fate of the tobacco monopoly in Serbia was hanging by a thread, and the verdict was rendered by a royal coup d’etat.

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LIBERALS IN FAVOR OF MONOPOLY LIFTING Monopolski cigaret-papir Monopoly cigarette paper Stabilizacija monopola

STABILIZATION OF THE MONOPOLY

Kraqev dràvni udar King’s Coups d’État osle èstoke izborne kampawe i nere{enog fter an aggressive election campaign and a Prezultata utakmice radikali : liberali, Adraw in the Radicals v. Liberals match, under- maloletni kraq Aleksandar je 1. aprila 1893. go- age King Aleksandar assumed royal powers on 1 dine preuzeo kraqevska ovla{}ewa i doveo na April 1893 and brought the Radical Party to vlast radikalnu stranku. Mihajlo Vuji} je ponovo power. Mihajlo Vuji} was given another term in dobio ministarstvo finansija, a novi izbori the Ministry of Finance, and a new election dali su ogromnu ve}inu poslani~kih mesta radi- brought a vast majority of seats in the Assembly to kalima. Nestankom liberalne vlade osigurana je the Radicals. With the stepping down of the Liber- budu}nost monopola u Srbiji, jer radikali nisu al government, the future of the monopolies in ni pomi{qali da ih ukidaju. Predsednik vlade Serbia was secured because the Radicals did not postao je Lazar Doki}, umereni radikal i raniji have the slightest intention of lifting them. Lazar vaspita~ kraqa Aleksandra. Predsednikovao je Doki}, a moderate Radical and formerly King nepunih pola godine, pa je umro od gangrene Aleksandar’s teacher, became Prime Minister. He plu}a izazvane, po svemu sude}i, preteranim pu- held his post for less than six months before he 134 {ewem. I no}u je ustajao da pu{i. Nasledio ga died of lung gangrene, in all likelihood caused by je general Sava Gruji}, tako|e umereni radikal. heavy smoking. Even at night, he had used to get Ubrzo po promeni, 3. aprila, smewen je vr- up to smoke.134 His successor was General Sava {ilac du`nosti upravnika monopola Gli{a Gruji}, also a moderate Radical. Haxi Popovi}, a ponovo postavqen Lazar Pa~u. Soon after the change, on 3 April, acting Monop- Uskoro je smewen i vr{ilac du`nosti direk- oly Director Gliša Hadì Popovi} was dismissed, and tora fabrike duvana Svetolik Popovi}, a Lazar Pa~u reappointed. A little later, acting General vra}eni su Bader za direktora i Golumbovski za Manager of the tobacco factory Svetolik Popovi} was blagajnika fabrike duvana, kao i drugi niì also dismissed, while Bader as General Manager and ~inovnici koji su izgubili posao u fabrici Golumbovski as Treasurer of the tobacco factory were dolaskom liberalske vlade avgusta prethodne reinstated, as well as other lower-ranking employees godine. Bila je to jo{ jedna uobi~ajena, ali za who had lost their jobs in the factory after the arrival

161 Lazar Doki} Lazar Doki} dràvne poslove vrlo {tetna praksa smene svih of the Liberal government in August of the previous vi{ih ~inovnika biv{e vlasti prilikom year. It was yet another usual, but to the affairs of the promene vlade, a i niìh ukoliko su strana~ki state very detrimental, episode in the practice of dis- eksponirani. missing all higher-ranking public servants at a change Ina~e, sa duvanom je stalno bilo nekih of government, as well as lower-ranking ones, if they problema. Na primer, ~este su àlbe na kvalitet were prominent party figures. duvana koga prodaje uprava monopola. Tako se u Incidentally, there were constant problems with 1893. godini pri~alo za srpski duvan da mu ne tobacco. For instance, complaints about the quality of samo kvalitet jako varira, ve} i da je uglavnom tobacco sold by the Monopoly Directorate were fre- lo{. A u junu 1893. godine govorilo se o lo{em quent. Thus, in 1893, a rumor was going around that

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STABILIZACIJA MONOPOLA kvalitetu druge klase turskog duvana, koji je Serbian tobacco not only greatly oscillated in quality, 135 „bu|av, pali po ustima i ima neprijatan zadah”. but was also generally bad. And in June 1893, there Ili, jedna omawa duvanska afera povezana je were reports about the poor quality of Turkish tobac- sa Nikolom Pa{i}em, neprikosnovenim vo|om co from class II, which was “moldy, gave a feeling of radikala i kasnijim dràvnikom. Naime, poka- burning in the mouth and reeked”.135 zalo se da je na Pa{i}evo imawe, koje se dodu{e A small-scale tobacco scandal was linked to Niko- vodilo na wegovu suprugu, Monopolska uprava la Paši}, the unchallenged leader of the Radicals and stavila intabulaciju (hipoteku) zbog duga od oko later a statesman. Namely, it turned out that the 12 hiqada dinara. U ~ar{iji je odmah razvijena Monopoly Directorate had received a mortgage on teorija da je ta intabulacija data od strane Paši}’s property, admittedly registered in his wife’s Pa{i}a kao kaucija za zakup velikoprodaje name, for a debt amounting to some 12,000 dinars. A duvana, ina~e unosnog posla. Za{to bi, ina~e, theory was immediately developed in town circles Pa{i} dugovao upravi taj novac? Pretpostavqa- that Paši} had mortgaged the property as an advance lo se i da ta velikoprodaja ne}e i}i na ime for the lease of tobacco wholesale, which was a lucra- Pa{i}a, wegove ène ili neke firme vezane za tive business. What else could have been a reason for wih dvoje, ve} preko nekog tre}eg lica, dok }e Paši}’s debt to the Directorate? Furthermore, it was Pa{i} biti tajni partner koji uzima glavninu presumed that this wholesale business was not going zarade. Pa{i} je zatim priznao da intabulacija to be registered in Paši}’s name, the name of his wife postoji, ali se branio da je samo svom bratu or a firm linked to them, but through a third person, u~inio uslugu pozajmicom novca. U vazduhu je while Paši} would be a secret partner skimming off ostalo da lebdi pitawe o tome gde se nalazi the lion’s share of the profits. Paši} then confessed to granica dozvoqenog za najvi{e politi~are, ili, the existence of the mortgage, but said in his defense kako bi se modernim re~nikom kazalo, ko su sve that he had only done a favor to his brother, by lend- povezana lica koja ne bi smela da sti~u dobit ing him some money. A question remained to hang in posredovawem predsednika skup{tine i {efa the air as to where the boundary was of what was per- vladaju}e stranke, {to je Pa{i} u tom trenutku mitted to top-ranking politicians or, expressed by a 136 bio. Ina~e, pri~e i tvrdwe o Pa{i}evim modern vocabulary of the contemporary world, who sumwivim poslovima ~esto su se pojavqivale i were the related parties that should have been pro- tokom slede}ih tridesetak godina, ali nikada hibited from making profits through the mediation nisu nedvosmisleno dokazane. of the Speaker and leader of the ruling party, what Jedna tema stalno je pratila upravu monopo- Paši} was at that point.136 Anyway, the stories and la i fabriku duvana, a to je tema visokih plata allegations of Paši}’s shady deals often circulated in wihovih rukovodilaca. Naime, upravnik mono- the course of the following thirty years, but they were pola imao je godi{wu platu od 7.200 dinara never proven beyond doubt. plus dodatak od 1.000 dinara, {ef kwigovodstva There was a topic which constantly accompanied ~ak 8.000 dinara (on je obi~no bio stranac), the Monopoly Directorate and the tobacco factory, direktor fabrike 6.000, {ef glavnog stovari- and that was the topic of high salaries of their mana- {ta 4.000, {efovi odseka u upravi 3.500 dinara gerial staff. The Monopoly Director’s annual salary i tako daqe. Te plate bile su znatno vi{e od was 7,200 dinars plus fringe benefits in the amount sli~nih u dràvnoj upravi, gde su samo ministri, of 1,000 dinars, the Chief Accounting Officer as

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STABILIZATION OF THE MONOPOLY vladike i generali imali vi{e, oko deset hiqa- much as 8,000 dinars (he was usually a foreigner), da dinara. Pri svakoj skup{tinskoj raspravi o the General Manager of the factory 6,000, the head buxetu uprave monopola postavqalo se pitawe da of the central warehouse 4,000, Unit Heads in the li je to pravedno ili previ{e, da li se to Directorate 3,500 dinars and so on. These salaries narodni predstavnici razbacuju narodnim were considerably higher than in public administra- novcem i sli~no. A odbrana buxeta ministra tion, where only ministers, bishops and generals had finansija uobi~ajeno se sastojala iz dve tvrdwe: more, around ten thousand dinars. In every parlia- su{tinske – da je monopolska uprava jedno mentary debate about the budget allocation for the preduze}e kome su potrebni kvalifikovani Monopoly Directorate a question was raised whether upravqa~i i da plate moraju biti na nivou ili, it was a fair amount or too much, whether it meant bar, blizu nivoa u privatnom sektoru; formalne the squandering of public monies by representatives – da su takve plate predvi|ene zakonom o of the people, and the like. And the Finance Minis- monopolu duvana i da bi se zakon morao mewati ter’s defense of the budget usually consisted of two kako bi se smawile plate, {to se, jel’ da, ne theses: the substantive one – that the Monopoly moè u~initi sada, prilikom rasprave o dràv- Directorate was a company which needed qualified nom buxetu, ve} tek slede}e godine. managers and that their salaries had to be at the Kriza srpskih dràvnih finansija se stal- level, or at least close to the level, of the salaries in no pogor{avala i Srbija je klizila prema the private sector; the formal one – that such salaries bankrotu, {to su svi i znali i videli, ali i were laid down in the tobacco monopoly law and a pitali se kako da se izbegne najgore. Kako re~e pay cut would require amending the law, which, nat- vode}i politi~ki novinar toga doba Pera urally, could not be done right there, amidst a debate Todorovi}: „Srpska dràva izgleda kao sazreo on the state budget, but only the following year. bankrot”. Zanimqivo je pogledati i {ta Todo- The crisis of Serbian public finances steadily rovi} misli da bi mogao biti izlaz. Ne {tede- intensified and Serbia was slowly sliding toward }i jake re~i, tvrdio je da „patriotska du`nost bankruptcy, which everybody knew and saw, and nalaè svakome Srbinu i Srpkiwi da najo- was wondering how to avoid the worst. As once said zbiqnije razmi{qaju kako da se spase otaxbi- by the then foremost political journalist Pera Todor- na”. On je razmislio i na{ao da spas leì u ovi}: “The Serbian state looks like a ripened bank- preure|ewu monopola duvana, koji sada „{}er- ruptcy.” It is also interesting to see what Todorovi}’s dava” milione. Tri koraka bi bila: prvo, da thinking was about a possible way out. Unstintingly monopol pre|e pod ministra narodne privre- using strong words, he claimed that “it was every de, vaqda kao boqeg od ministra finansija;* Serb man and women’s patriotic duty to give the drugo, da se u Srbiji tro{i iskqu~ivo doma}i most serious thought to possible solutions for sav- duvan, koji moè biti izvrstan kada se dobro ing the homeland.” He had thought this problem preradi; ovim bi se pri{tedeo novac za uvoz i over and found that the solution lay in the restruc- podstakla doma}a proizvodwa; i tre}e, da se turing of the tobacco monopoly, which was “squandering” millions at the time. This could be done in * Todorovi} je bio u pravu, jer je tada{wi three steps: firstly, the monopoly should be moved ministar privrede Ra{a Milo{evi} kasnije bio upravnik monopola vi{e od dvadeset into the portfolio of the Minister of the National godina. Economy, presumably because he was better than

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STABILIZACIJA MONOPOLA Monopolski cigaret-papir Monopoly cigarette-paper ukinu velikoprodavci i wihov posao prenese the Finance Minister;* secondly, exclusively domestic dràvi, ~ime bi se u{tedela znatna sred- tobacco should be consumed in Serbia, which could be 137 stva. Ovde ne}emo diskutovati sa lo{im excellent if properly processed (this would save the razlozima pod dva i tri, ve} }emo se zadràti money for imports and boost domestic production); na prethodnom pitawu: da li se Srbija moè and thirdly, wholesalers should be eliminated and their spasti reformom monopola duvana? Ne, niti su operations transferred to the government, thus mak- tu pro}erdavani milioni, niti se bilo kakvim ing huge savings.137 We shall not discuss here why the ve{tinama moglo iz monopola duvana iscediti reasons under two and three are bad; instead, we shall onoliko vi{e koliko je Srbiji trebalo da pause to consider the prior question: was it possible to sanira svoje finansijsko stawe: na primer, do- save Serbia through a reform of the tobacco monop- datnih pet ili deset miliona dinara godi{we. oly? No, and no millions were wasted there, nor were Da bi se oja~ala dràvna blagajna, 1893. there any skills that could have squeezed from the godine uvedeni su novi monopoli: {ibica, ci- tobacco monopoly such an additional amount as Ser- garet papira, petroleja i {piritusa. Wihov bia needed to regulate its financial situation: for exam- fiskalni potencijal nije bio velik, a ni sa uvo- ple, an additional five or ten million dinars a year. |ewem u ìvot nije se ùrilo. Tek je ne{to zapo- In order to strengthen the budget, in 1893 new ~eto 1895. godine, pred zakqu~ewe Karlsbadskig monopolies were introduced: on matches, cigarette aran`mana kada je trebalo poveriocima pokaza- paper, lamp oil and spirit. Their fiscal potential was ti odlu~nost, a dràva je tokom vi{e godina not high, and there was also no rush to put them in preuzimala poslove. U okviru fabrike duvana place. Only some initial steps were made in 1895, izgra|ena je radionica cigaret papira, dok se prior to the conclusion of the Carlsbad Arrange- kod {ibica dràva dugo kolebala izme|u sarad- ment, when there was a need to demonstrate resolve we sa inostranim dobavqa~ima i kupovine od to the creditors; as for the rest, the process of trans- doma}e, ali privatne fabrike {ibica. ferring these operations to the government lasted for a number of years. Within the compound of the Proizvodwa i potro{wa u 1893. godini tobacco factory, a workshop was built for making cigarette paper, while in the case of matches the Pogledajmo kako izgledaju podaci o proizvodwu, government long vacillated between working with odnosno otkupu u 1893. godini, najranijoj za koju foreign suppliers and purchasing from domestic, raspolaèmo kompletnijim podacima. but privately owned, match works. Prva ~iwenica koju }emo uo~iti je ona o bitno smawenom interesu seqaka za uzgajawe duvana: prijavqeno je za sa|ewe samo 1722 hektara, {to je Production and Consumption in 1893 daleko mawe nego nekoliko godina ranije i {to Let us take a look at the data on the production, that je tek za 1/8 vi{e nego {to je odobreno. O~igled- is, purchase in 1893, the earliest year for which a no je da je politika smawewa cena iz prethodnih more complete set of data is available. godina dala èqene efekte na smawewe zaintere- sovanosti proizvo|a~a, pa ~ak i preko toga. Sle- * Todorovi} was right, because Raša Miloševi}, the de}ih godina }e te niske cene onemogu}avati rea- then Economy Minister, later became the Monop- oly Director and remained in that position for more lizaciju planova uprave monopola o pove}awu than twenty years.

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STABILIZACIJA MONOPOLA Proizvodwa i otkup duvana, 1893. Tobacco production and purchase, 1893

prijavqena zasejana zasejano otkup, kg prinos/ha* prose~na otkupna povr{ina, ha povr{ina, ha strukova, 000 cena, din/kg applied for planted area, ha sown plants, purchase, kg yield/ha* Average purchase area, ha in 000 price, din/kg Vrawski 360,1 308,6 7830,8 245615 795,9 0,88 Vranje 360.1 308.6 7830.8 245615 795.9 0.88 Krajinski 33,2 29,0 833,6 10985 378,5 1,01 T. Krajina 33.2 29.0 833.6 10985 378.5 1.01 Kru{eva~ki 1074,5 989,3 42229,0 608458 615,0 0,72 Kruševac 1074.5 989.3 42229.0 608458 615.0 0.72 Podriwski 185,6 172,5 1860,0 25228 146,2 0,88 Drina Valley 185.6 172.5 1860.0 25228 146.2 0.88 U`i~ki 57,4 27,6 570,3 12957 469,6 1,37 U`ice 57.4 27.6 570.3 12957 469.6 1.37 UKUPNO 1721,8 1527,0 53323,7 903243 591,5 0,78 TOTAL 1721.8 1527.0 53323.7 903243 591.5 0.78

Izvor: Statisti~ki godi{wak 1893, 1895. Source: Statistical Yearbook 1893, 1895 * Napomena: prinos je samo aproksimativan, jer je dobijen iz * Note: the yield per hectare is just approximate, because it was odnosa koli~ine otkupqenog duvana i zasejane povr{ine. derived from the ratio between the quantity of purchased tobacco and the planted area. doma}e proizvodwe, jer ne}e biti dovoqno zain- The first fact which can be noticed relates to the teresovanih proizvo|a~a. considerably lower interest in tobacco growing on Najve}a proizvodwa je, vidimo, u kru{eva~- the part of farmers: planting licenses were requested kom okrugu, gde je otkupqeno ~ak 67,4% od ukupne for a mere 1722 hectares, which was far less then koli~ine duvana u Srbiji. Time je kru{eva~ki several years earlier and only 1/8 more than was okrug zauzeo ubedqivo dominantnu poziciju u approved. Obviously, the policy of price cuts pur- zemqi kao glavni duvanski proizvodni reon. Ta sued in the previous years had produced the desired ~iwenica ipak nije posledica bitnog pove}awa effects in terms of abating producers’ interest, and proizvodwe u ovom okrugu u odnosu na prethodni even beyond. In the years to follow, these low prices period, ve} administrativnih promena u Srbi- were to thwart the realization of the plans of the ji. Jer, dva glavna duvanska sreza ukinutog alek- Monopoly Directorate for increasing domestic pro- sina~kog okruga – aleksina~ki i moravski – duction, because of the insufficient number of inter- pripala su kru{eva~kom okrugu. ested producers. Na drugom mestu se na{ao vrawski okrug, sa As we can see, Kruševac District, where as much 27,2% ukupnog otkupa. I znatna proizvodwa u as 67.4 percent of the total amount of tobacco was vrawskom okrugu posledica je administrativnih purchased in Serbia, had the largest output. In this promena: leskova~ki kraj, u kome je proizvodwa manner, Kruševac District overwhelmingly won the duvana bila prili~na tih godina, pre{ao je iz dominant position in the country as the main tobac- ni{kog (koji je ukinut) u vrawski okrug. co-growing region. That fact, however, was not a

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STABILIZATION OF THE MONOPOLY Ova dva okruga – kru{eva~ki i vrawski – consequence of a significant increase in the produc- dala su 94,6% proizvodwe duvana u Srbiji, {to tion of this district relative to the previous period, zna~i da su ostali (podriwski, uì~ki i krajin- but of administrative changes in Serbia: two main ski) gotovo neva`ni za duvansku bran{u u Srbiji tobacco growing counties of the abolished Aleksinac i da su i daqe bili ukqu~eni u proizvodwu vi{e District – Aleksinac and the Morava Valley counties iz tradicionalnih razloga (na primer, bajno- – were joined to the district of Kruševac. ba{tanski kraj zbog bajinovca), nego zbog naro- The district of Vranje came second, with 27.2 ~ite potrebe. Mo`da je na wihovo zadràvawe u percent of the total purchased quantity. This dis- krugu proizvodnih okruga bilo motivisano jed- trict’s high output was also a consequence of nim drugim razlogom: osim kru{eva~kog svi su administrative changes: the vicinity of Leskovac, ostali proizvodni okruzi pograni~ni, pa se sma- with fairly high tobacco production in those years, tralo da je dobro i tako smawiti interes seqaka was administratively moved from Niš District za {vercom iz susednih zemaqa u Srbiju, a mo`da (which had been abolished) to the district of Vranje. i radi olak{awa {verca duvana iz Srbije u The output of these two districts – of Kruševac susedne zemqe. Prisetimo se da je raniji {verc and Vranje – accounted for 94.6 percent of tobacco iz nekih krajeva Srbije u susedne zemqe sa mono- production Serbia, which means that other districts polom (Austrougarska) bio navo|en kao jak razlog (the Drina Valley, Uìce and Timo~ka Krajina) were protiv ustanovqavawa dràvnog monopola. almost irrelevant for the tobacco industry in Serbia Me|u okruzima je najvi{u prose~nu otkupnu and remained included in the production for tradi- cenu imao uì~ki, a zbog bajinovca. O~igledno tional reasons (for example, the area around Bajina je da su tamo{wi proizvo|a~i i daqe gajili naj- Bašta because of Bajinovac), rather than on the boqi duvan, dodu{e na malim povr{inama. basis of some particular need. Maybe their staying in the circle of the tobacco growing districts was Monopolska slava motivated by another reason: since all tobacco growing districts, with the exception of Kruševac Fabrika duvana imala je svoju slavu – sv. Kozma i District, were adjacent to the border, it was believed Damjan, ili sveti Vra~i, koja pada na 1. juli po to be conducive to decreasing the interest of farm- starom kalendaru. Ta slava je odabrana iz èqe ers in smuggling from neighboring countries into da se obeleì i proslavi dan kada je dràva Serbia, or maybe even in order to facilitate the 1888. godine preuzela u svoje ruke monopol duva- smuggling of tobacco from Serbia into neighboring na od stranih zakupaca. Pogledajmo novinski iz- countries. Just as a reminder, the smuggling from 138 ve{taj iz 1893. godine: certain parts of Serbia into neighboring countries „Slava. Prekju~e je sve~ano slavio monopol with monopolies (Austria-Hungary) in the past had duvana kao dan kada je ta ustanova pre{la u dr- been cited as a strong reason against introducing àvne ruke. Slava je provedena po lepom srpskom the government monopoly. obi~aju. Prepodne bilo je se~ewa kola~a i osve- In terms of the average purchase price of tobac- }ewa ìta u dvori{tu fabrike monopola duvana, co, the highest was reached in the district of Uìce, koja je bila divno oki}ena zastavama i zeleni- because of Bajinovac. Evidently, the producers in lom. Naro~ito su se pogledi zaustavqali na dve- that region still grew the best tobacco, admittedly ma piramidama izra|enim od samog duvana. on small areas.

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STABILIZACIJA MONOPOLA U 9¼ do{ao je Wegovo Veli~anstvo Kraq, Monopoly Patron Saint’s Day pra}en g.g. ministrima finansija i privrede. Kraq je pratio ovu lepu sve~anost sa naro~ito The tobacco factory had its patron saint’s day (Slava) spremqenog balkona. Na istom bili su pomenuti – Sts. Cosmas and Damian, or Sveti Vra~i, which gg. ministri, oba potpredsednika skup{tine, falls on 1 July according to the old calendar. That upravnik monopola duvana i prili~an broj patron saint’s day was chosen in a wish to mark and narodnih poslanika. înodejstvovao je paroh celebrate a day in 1888 when the state had taken beogradski g. Dim. Milenkovi}, a na jektenija over the tobacco monopoly from the foreign lessees. odgovaralo pova~ko dru{tvo „Kornelije Stanko- Let us take a look at a report in the 1893 press:138 vi}”. Sveta je bilo tako mnogo da se jedva moglo “Patron Saint’s Day. The day before yesterday stajati u dvori{tu. Posle obeda posluèni su the tobacco monopoly had a celebration of the day gosti po srpskom obi~aju. on which that institution had been transferred into Kraq je izvoleo oti}i u 10½ ~asova i pri the state’s hands. The patron saint’s day was cele- polasku dati prilog bolni~koj kasi monopolskih brated according to the nice Serbian custom. In the radenika, a i napojnicu monopolskim vatroga- morning, the Slava cake was cut and the Slava scima za brzo i ve{to producirawe u svom wheat was blessed in the yard of the factory belong- te{kom i blagotvornom poslu. Veseqe je trajalo u ing to the tobacco monopoly, which was wonderful- fabrici do podne, a u devet sati uve~e bila je ly decorated with flags and ornaments. Two pyra- igranka u Velikoj pivari, koja je tako|e bila mids made exclusively of tobacco were a particular- vanredno pose}ena”. ly attractive sight. Sli~no tome, evo, prvo, novinske najave pro- At a quarter past nine His Majesty the King slave iz 1894. godine: „Slava fabrike duvana. came, accompanied by Their Excellencies Ministers Kao svake, tako }e i ove godine kraq. srp. fabri- of Finance and Economy. The King watched this ka duvana slaviti svoju slavu na dan 1. jula o.g. lovely ceremony from a balcony prepared specially Moli se svak’ koji miluje posetiti slavu ovog for this occasion. Also present on the balcony were, fabri~kog zavoda da ovu objavu smatra kao besides the mentioned ministers, both Deputy Speak- pozivnicu, jer se naro~ite pozivnice ne}e niko- ers, the tobacco Monopoly Director and a consider- me slati. Pre podne bi}e u dvori{tu fabri~kom able number of National Assembly deputies. The se~ewe kola~a i posluèwe, a posle podne vese- liturgy was served by the Belgrade Rector, Mr. D. qe u Top~ideru. Za g.g. novinarske izve{ta~e Milenkovi}, the responsories to ekteneia (orthodox odre|eno je naro~ito mesto”. chants) were sung by the choir “Kornelije Stankovi}”. Izve{taj sa proslave glasio je: „Slava fabri- There were so many people that one could hardly find ke duvana. Prvog jula, na dan Kuzmana i Damjana, a place to stand in the yard. After a meal, the guests fabrika monopola duvana sve~ano je proslavila were served according to the Serbian custom. svoju slavu. Pre podne je g. Dimitrije Milenkovi} The King deigned to leave at 10:30 and to give on ~itao molitvu i zatim izvr{io se~ewe kola~a. his departure a contribution to the sick fund of the Gosti su posluìvani pivom i cigaretama. Pose- monopoly employees, as well as a gratuity to the tilaca u toku celog jutra moglo je biti do 2000. Od monopoly fire fighters for quick and skillful produc- ~lanova vlade bili su prisutni g.g. ministri tion in their difficult and beneficial job. The celebra- pravde i prosvete. Osim wih, bilo je na slavi i tion in the factory lasted until noon, and at 9 p.m.

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STABILIZATION OF THE MONOPOLY veliki broj vrlo uglednih i uvaènih osoba i od there was a dance in the Great Brewery, also excep- raznih visokih poloàja. – U dvori{tu fabrike tionally well-attended”. svirala je vojna muzika. Uop{te, prvi juli je sve- Similar to the above, here is first an announce- 139 ~ano i veselo proveden u fabrici”. ment in the press about the 1894 celebration: Pored proslave fabri~ke slave, koju je orga- “Patron Saint’s Day of the Tobacco Factory. As in nizovala uprava, postojale su i radni~ke zabave, any other year, the Royal Serbian Tobacco Factory koje je organizovala „Zadruga radnika fabrike will celebrate its patron saint’s day on 1 July of the duvana”. Tako je jedna radni~ka zabava odràna u current year. We are kindly asking all those who sali Bajlonijeve pivare, a preko novina pozvani would like to attend the celebration of this factory 140 su i prijateqi radnika da se pridruè. to consider this announcement as an invitation, because individual invitations will not be sent to Neutralne vlade anyone. In the morning, a ceremony of cutting the Slava cake will be held in the yard of the factory and Kada se mladi kraq Aleksandar zapetqao u poli- refreshments will be served, and in the afternoon ti~kim kombinacijama, pozvao je upomo} ve}eg there will be a party in Top~ider. For gentlemen of majstora – svoga oca Milana – a radikalna vlada the press a special place has been designated”. je odmah podnela ostavku. U novoj vladi je A report on the celebration reads as follows: ministar finansija dva meseca bio êdomiq “Tobacco Factory’s Patron Saint’s Day. On 1 July, Mijatovi}, a nasledio ga je Vuka{in Petrovi}. Sts. Cosmas and Damian’s Day, the tobacco monop-

Fabrika duvana u Beogradu The tobacco factory in Belgrade

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STABILIZACIJA MONOPOLA Blagajnik fabrike duvana Golumbovski opet je oly factory organized a ceremony to celebrate its otpu{ten, a promewen je sastav dràvne komi- patron saint’s day. In the morning, Mr. Dimitrije sije u monopolu: na mesto Jakova Bajlonija, Milenkovi} said a prayer and then cut the Slava Mihajla Klidisa, Marka Leka i Qubomira Sre}- cake. Beer and cigarettes were served to the guests. kovi}a postavqeni su Joca Pa~i}, Dimitrije There were up to 2,000 visitors in the course of the Biba, Du{an Spasi} i dr Marko Nikoli}. entire morning. From among the cabinet members, Istovremeno je ministar Petrovi} formirao Their Excellencies Justice and Education Ministers komisiju za pregled poslova u fabrici. were in attendance. In addition to them, a large Odmah su se javile glasine o velikim nepra- number of very reputable and distinguished per- vilnostima u fabrici duvana. Tamo{wi ~inov- sons, holding various high-ranking positions, were nik Kosta Pri{tevac tvrdio je da je direktor Ba- at the celebration. A military band played in the der pravio te{ke zloupotrebe, a ovaj ga je tuìo yard of the factory. In general, 1 July was solemnly varo{kom sudu i traìo da dokaè svoje tvrdwe. and merrily spent in the factory”.139 Na to je Pri{tevac pozvao devedeset dva svedoka, Besides the celebrations of the factory’s Slava ali i zamolio ministra finansija da udaqi organized by the management, there were also Badera iz fabrike kako ne bi vr{io pritisak na workers’ parties, organized by the “Cooperative of svedoke da „neistinito svedo~e”. Bader je ipak the Tobacco Factory Workers”. Thus, a workers’ ostao direktor, dodu{e zakratko, a varo{ki sud je party was held in the hall of the Bajloni Brewery, ne{to kasnije oslobodio Pri{tevca od optu`be and friends of the workers were also invited through za klevetu, po{to je rasprava potvrdila mnoge the press to join the party.140 wegove navode o zloupotrebama fabri~kog materijala i radnika za privatne koristi Baderove. Svih tridesetak svedoka radnika fabrike potvr- Neutral Governments dilo je navode Pri{tevca, dok je nekoliko When young King Aleksandar got entangled in stranaca podràlo Badera. Kome verovati? Kasa- political combinations, he called a greater master to cioni sud je uskoro poni{tio presudu prvostepe- help – his father Milan – and the Radical govern- nog suda, ali je Bader smewen sa poloàja di- ment immediately resigned. In a new government, rektora fabrike, kako je navela uprava monopola, the Finance Minister was êdomilj Mijatovi} for zbog zloupotreba koje su ne samo dokazane na prvo- two months, to be succeeded by Vukašin Petrovi}. stepenom sudu, ve} ih je ustanovila i jedna dràv- The Treasurer of the tobacco factory, Golumbovski, na komisija, a ~iji samo jedan deo iznosi vi{e od was fired again, and members of the government sto hiqada dinara „{tete za dràvnu kasu”. Na commission on the monopoly were changed: Jakov kraju je Apelacioni sud osudio Pri{tevca zbog Bajloni, Mihajlo Klidis, Marko Leko and Ljubomir klevete na 100 dinara ili 10 dana zatvora, {to je Sre}kovi} were replaced by Joca Pa~i}, Dimitrije zna~ilo aminovawe Badera od optu`bi,* ali ga Biba, Dušan Spasi} and Dr. Marko Nikoli}. At the nije vratilo na direktorsko mesto. same time, Minister Petrovi} set up a commission for inspecting the operations of the factory. * Male novine, 9. 4. 1894, 29. 3. 1893, 7. 4. 1894, 6. 9. 1894, 16. 9.1894, 24. 9. 1894. i 9. 2. 1895; Rumors of major irregularities in the tobacco fac- znatno kasnije (1898) Badera nalazimo kao tory immediately surfaced. A clerk in the factory, inspektora srpskih èleznica. Kosta Prištevac, claimed that General Manager Bader

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STABILIZATION OF THE MONOPOLY Ipak, afera je pokrenula i pitawa vaqano- had committed serious abuse, and the latter filed a sti upravqawa fabrikom, pa je Trgovinski lawsuit against him with the city court and requested glasnik u seriji tekstova kritikovao raniju him to prove his allegations. In response to that, upravu i Badera, tvrde}i da je fabrika vo|ena Prištevac summoned ninety two witnesses, and asked lo{e, da je „igrala ulogu jednog velikog doma za the Finance Minister to remove Bader from the facto- uhlebije” partijskih i drugih prijateqa koji ry so as to prevent him from exerting pressure on wit- ni{ta ne rade i ne dolaze na posao, ve} se samo nesses to “make false statements”. Bader nevertheless pojavquju kada treba potpisati platni spisak i remained the General Manager, though not for long, primiti sledovawe duvana. Pozdravio je smawe- while the city court acquitted Prištevac of slander a we broja stalno zaposlenih i povremenih radni- little later, since many of his allegations related to the ka za 150–200 od strane nove uprave. Pomiwani abuse of the factory materials and workers for Bader’s su i neki raniji komisijski izve{taji o zloupo- private purposes had been confirmed in the hearing. trebama koji nikada nisu ugledali svetlo dana. All thirty-odd witnesses who were workers in the fac- Tako|e, Glasnik je tvrdio da je stara uprava, koja tory confirmed Prištevac’s allegations, while several je, sa malim izuzetkom, vodila fabriku od po~et- foreigners supported Bader. So who was to be trust- ka, jako lo{e prera|ivala duvan, upropa{tavaju- ed? Soon after that, the Court of Cassation over- }i posebno doma}i: „Pamet nam se buni i lede turned the judgment of the first instance court, but rodoqubivi ose}aji kada znamo sad da srpska Bader was dismissed from his position as the General fabrika duvana nije izra|ivala nijednu vrstu Manager of the factory, because of the abuse that had ~isto srpskog duvana, izuzimaju}i najlo{iju been not only proven in the first instance court, but (IV) vrstu – duvan za lulu – u koji se trpa duvan- also established by a government commission, and sko smetli{te. Pre nego {to je po~eto prera|i- whose only one part amounted to more than 100,000 vawe duvana u srpskoj fabrici, sortirani su dinars in “losses for the budget”, as explained by the fini duvani za Kraqev dvor od doma}ih duvana, Monopoly Directorate. In the end, the Appellate a danas se ne da ni prostom seqaku iz najsiroma- Court convicted Prištevac of slander and sentenced {nije kolibe da pu{i ~ist srpski duvan – zato him to a fine of 100 dinars or a 10-day prison term, {to ne vaqa!? U srpski duvan po klasifikaciji which meant Bader’s exoneration from accusations,* III vrste me{a se 10%, u onaj II vrste 20%, a u I but it failed to reinstate him to the position of the vrste 30% turskog duvana! Zar to nije smrtni General Manager. greh…?”. Radikalski Odjek, list stranke na ~ije However, the scandal did raise the issue of good se upravqawe monopolom ova kritika odnosila, governance of the factory, so Commercial Herald, in poku{ao je da odbrani biv{u upravu èstokim a series of articles, criticized the former management re~ima i pohvalama za organizaciju koju je and Bader, claiming that the factory was poorly man- fabrika svojevremeno dobijala, a Trgovinski aged, that it “played a role of a meal ticket institu- glasnik je odgovorio da fabrika jeste bila „uzor- tion” for party and other friends who did nothing and no ure|ena”, ali od strane privatne uprave iz never bothered to show for work, but came only 1886. godine, ~iji je „{ablon unutra{weg rada i reda” zadràla i radikalska uprava.141 * Lesser Newspaper, 9/4/1894, 29/3/1893, Upravnik monopola Lazar Pa~u ostao je na 7/4/1894, 6/9/1894, 16/9/1894, 24/9/1894 and 9/2/1895; much later (in 1898) we shall find svom mestu tri meseca duè od svoje vlade i tek je Bader as an inspector of the Serbian Railroads.

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STABILIZACIJA MONOPOLA 4. jula, na sopstveni zahtev, razre{en du`nosti i when a pay slip had to be signed and a ration of penzionisan. Na wegovo mesto privremeno je tobacco received. It welcomed the downsizing by postavqen Radomir Dimitrijevi}, blagajnik Mi- 150–200 employees, which included both full-time nistarstva finansija, a desetak dana kasnije za and part-time workers and was carried out by the upravnika monopola postavqen je Stojan Veqko- new management. There was also a mention of some vi}, liberal i potpredsednik Dràvnog saveta. earlier commission reports on abuses which were Za privremenog direktora fabrike postavqen je never published. Likewise, Herald claimed that the Vitalis \urkovi}, kontrolor u fabrici, a u ok- old management, at the helm of the factory from the tobru ga je zamenio Vu~ko Stojanovi}, na~elnik beginning, with minor exceptions, had done a very carinskog odeqewa u Ministarstvu finansija. bad job of tobacco processing, particularly ruining Berba duvana u 1894. godini bila je mala: the domestic one: “Our mind rebels and our patriotic otkupqeno je samo 696,8 hiqada kilograma, {to feelings turn to ice when we now know that the Ser- je najnià vrednost od zvani~no registrovanih u bian tobacco factory did not produce a single kind of ovom periodu. purely Serbian tobacco, except for the worst (IV) cat- Trinaestog januara 1895. godine kraq je usvo- egory – pipe tobacco – into which tobacco garbage is jio ostavke oca i sina Veqkovi}a na poloàje mixed. Before the Serbian factory started to process upravnika i {efa administrativnog odeqewa tobacco, fine tobaccos had been sorted for the King’s monopola, a ubrzo je usledila razmena pisama Court from domestic tobaccos, while today not even a izme|u wih i ministra finansija Petrovi}a, simple farmer from the poorest of cottages feels like ~emu su novinari dodali svog za~ina. Pale su i smoking purely Serbian tobacco – because it is not teè re~i i optu`be, od toga da je sin hteo dve good?! Into Serbian tobacco categorized as class III klase preko reda, do toga da je ministar hteo da 10 percent of Turkish tobacco is mixed, into the one izda nove monopole u zakup privatnicima. in class II 20 percent and into the one in class I 30 Publika se lepo zabavqala, znaju}i da se u poza- percent! Isn’t that a deadly sin…?”. Radical Echo, the dini nalazi me|ustrana~ki sukob. paper of the party to whose management of the Kvalitet duvana se nije popravqao, pa je i monopoly this criticism applied, tried to defend the daqe bilo ozbiqnih primedaba: „treba da otvo- former management with strong words and praises rimo koju ho}ete vrstu duvana i cigareta, od spe- for the organization, which the factory had received cijaliteta do trafike, iz monopolskog zavijutka in the past, but Commercial Herald replied that the pa da nam se otvori cela perspektiva umetnosti factory had indeed been “properly organized”, but by na{e fabrikacije”, ironisao je Trgovinski the private management in 1886, whose “pattern of glasnik i zamerao dràvi {to joj je malo to {to internal order and discipline” was maintained by the ima duvanski monopol, nego se sluì i „nedozvo- Radical management as well.141 qenim sredstvima da {to vi{e u}ari prodaju}i Monopoly Director Lazar Pa~u had remained in lo{u robu. Vi }ete na}i u tim paklama ~esto his position three months longer than his govern- bu|av duvan, ~e{}e vi{e pra{ine nego duvana, a ment, and only on 4 July, at his own request, was he naj~e{}e takve cigarete da ~oveku izrastu za- relieved of duty and sent to retirement. Radomir 142 u{waci dok izvu~e koji dim”. Dimitrijevi}, the Treasurer of the Finance Ministry, U prole}e 1895. godine raspisan je tender was temporarily appointed to this post, and some za nabavku cigara za slede}i petogodi{wi ten days later Stojan Veljkovi}, a Liberal and Deputy

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STABILIZATION OF THE MONOPOLY period (1896–1900). Traène su slede}e marke Chairman of the National Council, was appointed as i koli~ine: Monopoly Director. Vitalis Ðurkovi}, a controller in Srpska 6.000.000 the factory, was appointed as temporary General Tompus 6.000.000 Manager of the factory, and in October he was Kuba 450.000 replaced by Vu~ko Stojanovi}, Head of the Customs Rosita 800.000 Department in the Ministry of Finance. Fifi 350.000 The 1894 tobacco harvest was meager: only Britanika 350.000 696,800 kilograms was purchased, this being the Krem de Kuba 800.000. lowest officially registered quantity in this period. Jo{ se traìlo da 2/3 cigara budu „svetlije On 13 January 1895, the King accepted the res- boje”, budu}i da takve preferira srpski pu{a~, ignations of the father and son Veljkovi} from the da se uplati kaucija od 15% vrednosti jednogo- positions of the Monopoly Director and the Monop- di{we isporuke i da ponude budu podnete do 15. oly Administrative Division Head, respectively, and aprila 1895. godine. soon after that an exchange of letters began between them and Finance Minister Petrovi}, Karlsbadski aran`man spiced up by journalists. Harsh words were used, accusations were made, from the fact that the son I pored rasta monopolskih neto prihoda po~et- had wanted a promotion by two classes out of his kom 1890-tih godina, srpske dràvne finansije turn, to the fact that the Minister had wanted to su zapadale u sve ve}u krizu. Ili nije bilo para lease new monopolies to private parties. The audi- za anuitete ili za ~inovni~ke plate. Ministri ence was having great fun, aware of the fact that finansija su se dovijali, ali je bilo o~igledno underlying this exchange was inter-party conflict. da je potrebno ne{to radikalno: konverzija The quality of tobacco was not improving, so spoqnih dugova. Srpski ministri finansija there still were serious complaints: “We only need to oduvek su sawarili o konverziji nepovoqnih unfold the monopoly cylinder with any kind of stranih zajmova u jedan povoqan, onda kada tobacco and cigarettes you like, from the special one kreditni rejting Srbije dovoqno poraste. Vuji} to those on newsstands, and the whole perspective of je poku{ao 1891. godine, ali je bilo prerano. our artistic fabrication will open up before our eyes”, Petrovi} je poku{ao 1894. godine, ali iz o~aja commented Commercial Herald ironically and criti- usled lo{e situacije. Banke su pristale, ali cized the state because it had to use “unlawful means nije srpska skup{tina. to earn more by selling bad merchandise, as if having Godine 1895. napravqena je u Karlsbadu the tobacco monopoly was not enough for it. You will konverzija dugova, a u vreme vlade Stojana Nova- often find moldy tobacco in these packs, in many kovi}a. Bilo je to polu bankrotstvo: posao je cases more dust than tobacco, and in most of the ugovoren sa tri banke, ali je za ostale vlasnike cases such cigarettes which will give one mumps srpskih dràvnih obveznica bio prinudan. before he can take a puff or two out of them”.142 Postoje}e obveznice zamewene su novima koje In the spring of 1895, a tender was called for su, umesto do tada uobi~ajenih 5%, nosile the procurement of cigars in the coming five-year kamatu od 4% godi{we i imale produèni rok do- period (1896–1900). Bids for the following brands spe}a od 72 godine. Ukupan iznos konvertovanih and quantities were invited:

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STABILIZACIJA MONOPOLA dugova dostigao je 310,3 miliona dinara, ukqu- Serbian 6,000,000 ~uju}i i zajam duvanske rente iz 1885. godine, Tompus 6,000,000 ali ne i duvanske lozove iz 1888. godine.* Za Cuba 450,000 osigurawe ta~ne isplate novoga zajma srpska Rossita 800,000 vlada dala je u zalogu ~ist prihod dràvnih è- Fifi 350,000 leznica i prihode od taksenih i kr~marinskih Britannica 350,000 maraka, monopola duvana, soli i petroleja, ca- Crème des Cuba 800,000. rinskih da`bina i obrtnog poreza. Further requirements were for 2/3 of cigars to „Da bi se od svake sumwe obezbedila data jem- be “lighter in color”, since Serbian smokers pre- stva”, navedenim prihodima }e, prema sporazumu ferred them that way, to pay caution money in the iz Karsbada, upravqati potpuno samostalna i od amount of 15 percent of the value of the annual ministra finansija i vlade nezavisna uprava delivery and to submit bids by 15 April 1895. monopola. Upravni odbor ~ini}e {est ~lanova, od kojih su ~etvorica srpski podanici (me|u wima su guverner i viceguverner Narodne banke), Carlsbad Arrangement dok preostalu dvojicu postavqa srpska vlada na Despite a net increase in the monopoly proceeds in predlog vlasnika obveznica; monopolska uprava the early 1890s, Serbia’s public finances were }e sama ubirati sve prihode od monopola, s tim plunging into an ever deeper crisis. There was no da }e sve prihode od monopola {ibica i cigaret money either for the annuities or for the salaries of papira (koji nisu predvi|eni za servisirawe public servants. Finance Ministers were trying to anuiteta) odmah predavati dràvnoj blagajni. cope, but it was obvious that something radical had Skup{tinsko zasedawe zapo~eto je 27. juna to be done: a conversion of foreign debt. Serbian 1895, a opozicija je dosta pohvalno govorila o Finance Ministers had always dreamt about con- finansijskoj strani karlsbadskog aran`mana, verting non-concessional foreign loans into one smatraju}i ga dobrim i boqim od ranijih poku- concessional loan, once Serbia’s credit rating was {aja. Ipak, napala je èstoko odredbu ugovora o high enough. Vuji} had tried to do that in 1891, but samostalnoj monopolskoj upravi, smatraju}i da it had been too early. Petrovi} made an attempt in je to „ponièwe za na{u dràvu, da to ni malo ne 1894, out of despair over the bad situation. The odgovara dostojanstvu zemqe, a ne sluì na ~ast banks agreed, but the Serbian Assembly did not. ni samoj vladi, jer ona time priznaje da nije u In 1895, a debt conversion was performed in stawu, niti je sposobna da sama rukuje dràvnim Carlsbad, during Stojan Novakovi}’s government. It prihodima, nego mora da do|e neko drugi sa stra- was a semi-bankruptcy: the deal was struck with ne i da joj podvikne: „daqe ruke od kase”… Ba{ i three banks, while for other holders of Serbian gov- kad bi to u stvari i bilo, mi ne smemo to javno da ernment bonds it was forced. The existing bonds priznamo” (liberal Kosta Jezdi}) Jezdi} je pot- were replaced by new ones, which bore interest of 4 puno precizno opisao situaciju i wegova prva percent a year, instead of the previously standard rate of 5 percent, and had an extended maturity of * Ovo drugo iz tehni~kih razloga: obveznica, prvo, nije nosila kamatu, ve} je imala upisane 72 years. The total amount of the converted debts anuitete, i, drugo, obezbe|ivala je fiksan reached 310.3 million dinars, including the 1885 iznos lutrijskih dobitaka. tobacco lease loan, but without the 1888 tobacco

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STABILIZATION OF THE MONOPOLY re~enica je sasvim ta~na: poniàvaju}e je kada lottery bonds.* As security against defaulting on the stranci uti~u na poslove srpske vlade. Me|utim, new loan, the Serbian government collateralized net iz toga je izveo pogre{an zakqu~ak – da je potre- revenue from public railroads and revenues from duty bno odbaciti strani uticaj kako bi se sakrila stamps and alcohol excise duty stamps, the monopo- sopstvena bruka. Srpska vlada, i to ne samo ta- lies on tobacco, salt and lamp oil, import duties and da{wa napredwa~ka, imala je jasan izbor: ili da the sales tax. sama vaqano skupqa dràvne prihode i redovno “In order to guarantee the given sureties beyond pla}a spoqne dugove ili da, pod stranim priti- any doubt”, the mentioned revenues, under the skom, uvede jedno samostalno, od ministra Carlsbad Agreement, were to be administered by a finansija nezavisno telo koje }e raditi posao completely autonomous Monopoly Directorate, ministra finansija. Po{to je, na àlost, srpska independent from the Finance Minister and the gov- dràva stalno pokazivala visok stepen ne- ernment. Its Management Board comprised six sposobnosti, ili ~ak i odsustva èqe, da redovno members, of whom four were Serbian subjects pla}a spoqne dugove, ostala je samo druga opcija: (among them being also the Governor and Vice-gov- samostalna monopolska uprava. ernor of the National Bank), while the remaining Samostalnost monopolske uprave je, kako je two members were appointed by the Serbian govern- ta~no rekao ministar finansija Stevan Popo- ment at the proposal of bond holders; the Monopoly vi}, vrlo dobra osobina, jer zaklawa jednu va`nu Directorate collected all the revenues from the upravu od partijske borbe i stalnih promena monopolies by itself, with total revenues from the ~inovnika i politike, daju}i joj toliko potreb- match and cigarette paper monopolies (which were nu stabilnost i nezavisnost. not envisaged for the servicing of the annuities) Karlsbadskom ugovoru pripisana je, povodom being immediately transferred to the state budget. monopolske uprave, jedna dalekose`na i ozbiqna A session of the Assembly started on 27 June mana – da je ograni~io finansijsku samostalnost 1895, and the opposition fairly approvingly com- Srbije, pa time i wenu politi~ku samostalnost. mented on the financial side of the Carlsbad Tako su se neki, pozivaju}i se na prisustvo Arrangement, considering it to be good and better stranih predstavnika, obru{ili na samostalnu than the previous attempts. Still, it fiercely attacked monopolsku upravu preko svake mere, tvrde}i, na the provision of the Agreement on the autonomous primer, da „}emo mi biti jedna dràva u wihovoj Monopoly Directorate, considering it to be “the dràvi, da }emo zavisiti od wih, da }e oni upra- humiliation for our state, which is completely incom- vqati nama kako ho}e, a mi }emo biti samo slaba patible with the dignity of the country, and no credit senka te sporedne dràve” (poslanik \oka Stano- to the government itself, because in such a manner it jevi}). Ovo je mi{qewe iz osnova pogre{no, kako admits to not being able and not having the capacity, 143 je to dokazao Dragutin Proti}. Naime, karls- to manage public revenue by itself, but has to be read badski aran`man je jedan privatnopravni, a ne a lesson by an outsider, who is going to tell it: “keep me|unarodnopravni ugovor, po{to u wemu nije your hands off the cash-box”… Even if that was actu- u~estvovala nijedna strana dràva, ve} su ugovorne strane srpska vlada i weni poverioci. Samim * The reasons for the latter were technical: first, tim se Srbija nije odrekla, niti se mogla odre}i, bonds were non-interest-bearing, they had annuities indicated on them and, second, they provided svoje suverenosti, jer se suverenost moè okrwiti fixed amounts of lottery prizes.

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STABILIZACIJA MONOPOLA samo u korist neke druge dràve ili zajednice ally the case, we must not admit that publicly” (Liber- dràva, a ne u korist privatnog lica. U sporazu- al Kosta Jezdi}). Jezdi} described the situation mima sa privatnim licima, makar i stranim, va- absolutely precisely, and his first sentence is com- ì doma}e zakonodavstvo i dràva u potpunosti pletely correct: it is humiliating when foreigners have zadràva svoju suverenost. an influence on the affairs of the Serbian govern- [tavi{e, Srbija nije karlsbadskim aran- ment. However, the conclusion he drew from it was `manom dala poveriocima ni{ta vi{e od wrong – that one should reject foreign influence in onoga {to su imali i po ranijim ugovorima o order to hide his own disgrace. The Serbian govern- zajmovima. Garancije, izraène vrstama priho- ment, and not only the then Progressist government, da koje je aran`man predvideo za ujediweni had a clear choice: either to collect public revenue by zajam, postojale su i ranije za pojedine zajmo- itself in a proper manner and be current on the pay- ve.* Jer, Srbija nikada nije uìvala dovoqno ment of its external debt, or to introduce, under for- poverewe kreditora da bi dobila zajmove na eign pressure, an independent body, autonomous osnovu samog poverewa. Stoga su zajmodavci from the Finance Minister, to do the job of the uvek, od prvog zajma, traìli izvesne garancije, Finance Minister. Regretfully, since the Serbian state odnosno posebne dràvne prihode kao zalogu za constantly demonstrated a high degree of inability, or zajmove koje odobravaju. Dodu{e, me|u garancije even lack of willingness, to regularly service its exter- je dodat monopoli soli (zato {to je i solski nal debts, the only remaining option was the second zajam ukqu~en u konverziju) i petroleja, ali je one: an autonomous monopoly directorate. ovaj drugi davao skroman prihod. The autonomy of the Monopoly Directorate, as I va`nije, ulazak dvojice stranaca u uprav- correctly put by Finance Minister Stevan Popovi}, ni odbor monopolske uprave nikako nije prvina: was a very good quality, because it shielded an i ranije su postojale anuitetske kase za zajmo- important body from the party struggle and con- ve,** koje su kontrolisali, i po jedan kqu~ ima- stant changes of employees and policies, giving it li, jedan predstavnik poverilaca i jedan pred- much needed stability and independence. stavnik ministarstva finansija. Tako je nepo- On account of the Monopoly Directorate, a far- sredna kontrola stranaca, u stvari, smawena reaching and serious deficiency was attributed to the Carlsbad Agreement – that it had restricted Serbia’s * îst prihod od èleznice i prihodi od financial independence, hence also restricting its carine, uz zalogu same èleznice, za èlezni~ke zajmove iz 1881. i 1884; bruto political independence. Thus, some people vastly prihod od èleznice, porez na obrt i taksene i exaggerated in their criticism of the Autonomous kr~marinske marke za èlezni~ku rentu iz Monopoly Directorate based on the presence of for- 1890; taksene i kr~marinske marke za zlatnu rentu iz 1884; monopol duvana za duvansku eign representatives, arguing, for instance, that “we rentu iz 1884; porez na obrt za obrtnu rentu iz shall be a state in their state, that we shall depend on 1888; potraìvawe agrarnih du`nika, uz them, that they will control us the way they want to intabulaciju wihovih imawa za agrarni zajam iz 1882; prirez i vi{ak monopola soli za and we shall be just a pale shadow of that inferior zajam iz 1893. godine. state” (deputy Ðoka Stanojevi}). This opinion was ** Kasa èlezni~kog zajma, Kasa srpske rente 5%, 143 Kasa 5% rente duvanskog monopola, Kasa zajma fundamentally flawed, as Dragutin Proti} proved. ujem~enog porezom na obrt, Kasa agrarnog zajma Namely, the Carlsbad Arrangement was a private law i Kasa zajma od 44,000.000. contract and not an international law contract, since

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STABILIZATION OF THE MONOPOLY karlsbadskim aran`manom – po wemu su stran- no foreign state was a party to it, but the contracting cima prepu{tena dva glasa u upravnom odboru parties were the Serbian government and its credi- od {est ~lanova, pri ~emu je upravni odbor od- tors. Thereby, Serbia did not surrender its sovereign- lu~ivao prostom ve}inom glasova, dok su kod ty, nor was that possible, because sovereignty can be starih anuitetskih kasa strani delegati imali curtailed only in favor of another state or an alliance mogu}nost veta na osnovu odnosa jedan doma}i of states, but not in favor of a private person. In the jedan predstavnik poverilaca.* case of agreements with private persons, even if they Samostalna monopolska uprava bila je u tre- are foreign nationals, domestic legislation applies nutku svoje pojave u Srbiji jedna krajwe ozlogla- and the state’s sovereignty is fully preserved. {ena ustanova, u ~ijem su postojawu mnogi, a Furthermore, under the Carlsbad Arrange- naro~ito opozicija, videli poni`ewe naroda, ment, Serbia did not give to the creditors anything vlade i zemqe i sredstvo za strano uplitawe u more than what had already pertained to them doma}e poslove. Me|utim, tokom vremena se under the previous loan agreements. The guaran- uvidelo da ni |avo nije toliko crn: monopolska tees which the arrangement stipulated for the con- uprava vr{ila je savesno svoj posao, prikupqaju- solidation loan, expressed as types of revenue, had }i poverene joj prihode i upla}uju}i redovno existed before for individual loans.* Serbia never anuitete. Srbija se od pojave samostalne mono- enjoyed enough trust with the creditors to be polske uprave re{ila problema urednog pla}awa granted loans only on the basis of trust. Therefore, dugova na strani, dok se zebwe o velikom stranom the borrowers had always, from the very first loan, uplitawu u doma}e poslove nisu obistinile. requested guarantees, i.e. specific public revenues as collateral for the approved loans. Admittedly, the salt monopoly was added to the guarantees (because the salt loan, too, was included into the conversion) and the monopoly on lamp oil, but the latter yielded modest revenue. And, more importantly, the participation of two foreigners in the Management Board of the Monop- oly Directorate certainly was not the first time something like that happened: earlier on, there had also

* Net proceeds from the railroads and revenue from customs duties, with railroads serving as collateral, for 1881 and 1884 railroad loans; gross pro- * Milorad Nedeqkovi} je tvrdio da je nova ceeds from the railroads, the sales tax, duty monopolska uprava donela “tutorstvo” stamps and stamps for alcoholic beverage excise stranaca, {to je obrazloìo prelaskom sa duty for the 1890 railroad rent; duty stamps and ranijeg ugovornog na zakonsko utemeqewe stamps for alcoholic beverage excise duty for the strane kontrole (Istorija srpskih dràvnih 1884 gold rent; the tobacco monopoly for the dugova, str. 188). Ovo se mi{qewe te{ko moè 1884 tobacco rent; the sales tax for the 1888 smatrati vaqanim, po{to u solidno ure|enim turnover rent; claims on farmers debtors secured zemqama ugovorni odnos nije ni{ta mawe by mortgages on their properties for the 1882 ~vrst u odnosu na zakonski. Naprotiv, zakoni agricultural loan; the salt monopoly surtax and se mogu mewati, dok ugovori ostaju na snazi. surplus for the 1893 loan.

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STABILIZACIJA MONOPOLA been annuity funds for loans,* controlled by one representative of creditors and one representative of the Finance Ministry, who had been the key co-holders at the same time. In fact, in this manner direct control by foreigners was reduced under the Carlsbad Arrangement – pursuant to it, foreigners had two votes in the six-strong Management Board, and the Management Board’s decisions were taken by a simple majority of votes, while in the boards of the old annuity funds foreign delegates had had veto powers based on the ratio of one domestic representative to one creditors’ representative.** At the time of its establishment, the Autonomous Monopoly Directorate was an extremely notorious institution in Serbia, and many, in particular the opposition, saw in its existence the humiliation for the people, government and country and a means of foreign interference with domestic affairs. However, one realized in the course of time that the devil was not as black as he was painted: the Monopoly Direc- torate performed its job conscientiously, collected the revenue it was in charge of and paid the annuities regularly. With the establishment of the Autonomous Monopoly Directorate, Serbia rid itself of the problem related to the regular payment of foreign debts, while the fears of some massive foreign interference Stevan Popovi} with domestic affairs never proved true. Stevan Popovi}

* The railroad loan fund, the 5 percent Serbian rent fund, the 5 percent tobacco monopoly rent fund, the Fund of the loan secured by the sales tax, the Agricultural Loan Fund and the Fund of the 44,000,000 loan. ** Milorad Nedeljkovi} argued that the new Monop- oly Directorate had brought foreign »guardian- ship«, explaining his assertion by the shift from the previous contractual basis of foreign control to the law-based one (The History of Serbian Pub- lic Debt, p. 188). This opinion cannot be considered valid, since in properly organized countries a contractual relationship is equally binding as the one based on a law. And quite the opposite, laws can be changed, while contracts remain in force.

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STABILIZATION OF THE MONOPOLY Zgrada uprave monopola The building of the Monopoly Directorate Novi monopolski re`im

NEW MONOPOLY REGIME

Ure|ewe Samostalne monopolske uprave Structure of the Autonomous Monopoly Directorate osle Karlsbadskog sporazuma donet je prate- fter the Carlsbad Agreement, on 8 July, an P}i Zakon o konversiji dr`avnih dugova 8. Aimplementing law was adopted entitled the Law jula, ~iji su ~lanovi 4–15 u osnovi odredili on the Public Debt Conversion, whose articles 4 –15 strukturu i nadle`nosti Samostalne monopol- basically defined the structure and competences of ske uprave. the Autonomous Monopoly Directorate. Ukazom od 15. jula imenovan je upravni odbor The Management Board of the Autonomous Samostalne monopolske uprave, koga su ~inili: Monopoly Directorate was appointed by virtue of an \or|e Vajfert, guverner Narodne banke, Marko ordinance dated 15 July, and it comprised: Ðor|e Stojanovi}, viceguverner Narodne banke, i ~la- Vajfert, the National Bank Governor, Marko Sto- novi Dimitrije Radovi}, predsednik Kasacionog janovi}, the National Bank Vice-governor, and suda u penziji, Dimitrije Krsmanovi}, poznati members Dimitrije Radovi}, the President of the trgovac, i predstavnici poverilaca grof Sen- Court of Cassation (Ret.), Dimitrije Krsmanovi}, a Balmon i Karl Direnberger, kao i Pavle [afa- renowned merchant, and representatives of the rik, upravnik Samostalne monopolske uprave. creditors, Count Saint-Balmont and Carl Düren- Upravni odbor se konstituisao i izabrao za pred- berger, as well as Pavle Šafarik, the Director of the sednika i potpredsednika Vajferta i Stojanovi- Autonomous Monopoly Directorate. The Manage- }a 20. jula, a zatim pripremio uredbu o Samostal- ment Board was constituted and elected Vajfert noj monopolskoj upravi, kojom je dogovor iz Karl- Chairman and Stojanovi} Deputy Chairman on 20 sbada o woj preto~en u tekst sa zakonskom snagom. July, and then it drafted a decree on the Autono- Ministarski savet je 3. avgusta 1895. odobrio mous Monopoly Directorate, translating the under- uredbu kojim su propisani naziv, na~in upravqa- standing on this body reached in Carlsbad into a wa i nadle`nosti monopolske uprave. Ovim je Za- text with legal effect. On 3 August 1895 the Minis- kon o monopolu duvana iz 1890. godine znatnim terial Council approved a decree which defined the delom derogiran, budu}i da je uredba sadr`ala title, management method and competences of the slede}u odredbu: „gubi snagu sve {to je do sada Monopoly Directorate. In this manner, the 1890 postojalo, a s ovom bi se uredbom kosilo”. Tobacco Monopoly Law was derogated to a large

181 \or|e Vajfert \or|e Vajfert Interesantno je da se pitawa koja bi zakon extent, bearing in mind that the decree contained trebalo da propi{e, a i koje je propisivao dota- the following provision: “all previously applicable da{wi zakon, sada reguli{u uredbom koja ima acts, which would be at variance with this decree, zakonsku snagu. O ~emu se radi, za{to poloàj i shall be set aside”. nadle`nosti Samostalne monopolske uprave It is interesting that issues which should be pre- nisu regulisani zakonom, kao vi{im aktom od scribed by a law, and which actually had been pre- uredbe? Odgovor je lak: zakone donosi skup{tina scribed by the previous law, were thus regulated by Srbije i opravdana je bila bojazan da bi neki wen virtue of a decree with the power of a law. What was drugi saziv mogao izmeniti zakon, poni{titi that about, why were the status and competences of dogovor poverilaca i Srbije i promeniti polo- the Autonomous Monopoly Directorate not regulated àj Samostalne monopolske uprave na wenu {tetu by a law, as an act of a higher order than a decree? The i {tetu sigurnosti poverilaca. Da bi se takva answer is easy: laws are adopted by the Assembly of mogu}nost izbegla, smi{qen je izlaz: jednim Serbia and the fear that another composition of the zakonom (Zakonom o konversiji dugova) predvi|e- parliament could amend the law, call off the agree- no je da }e se pitawe uprave monopola re{iti ment between the creditors and Serbia and change „uredbom koju }e izraditi sam upravni odbor. Ta the status of the Autonomous Monopoly Directorate uredba monopolske uprave vaì}e kao zakon to its detriment and the detriment of the creditors’ po{to je Vlada Wegovog Veli~anstva odobri, i ta- security, was justified. With a view to avoiding such a ko jednom odobrena uredba ne moè se mewati bez possibility, the following solution was found: a law pristanka Vlade i monopolske uprave” (~l. 10). (the Law on Debt Conversion) stipulated that the Zna~i, uredba je zajedni~ki doneta od vlade u issue of the Monopoly Directorate was to be regulated upravnog odbora i, {to je za poverioce bilo naj- by a “Decree which shall be drafted by the Manage- va`nije, eventualne wene izmene mogle su se samo ment Board itself. That Decree of the Monopoly na isti na~in vr{iti, {to zna~i da se bez uprav- Directorate shall have the power of a law after it has nog odbora uredba nije mogla promeniti. Poveri- been approved by His Majesty’s government, and fol- oci su, o~igledno je, vi{e nego u srpske politi- lowing such approval, it shall no longer be amendable ~are imali poverewa u solidnost ~lanova uprav- without the consent of the government and the nog odbora i u wihove ruke poverili su za{titu Monopoly Directorate” (Article 10). Accordingly, the svojih interesa. I nisu pogre{ili, jer sastav Decree was jointly issued by the government and the upravnog odbora nije bio pod kontrolom vlade, i Management Board and it could be amended only in pored predlagawa od strane ministra finansija the same manner, which was the most important i postavqawa kraqevim ukazom. thing to the creditors, since it meant that it was not Pogledajmo osnovna re{ewa uredbe. Upravom possible to make any amendments to it without the rukovodi upravni odbor, koga ~ini {est ~lanova Management Board. The creditors obviously trusted koje predlaè ministar finansija, a ukazom the reliability of the Management Board members postavqa kraq. Sastav: guverner i viceguverner more than they trusted Serbian politicians, and there- Narodne banke, jo{ dva ~lana „Srbina” i „dva fore they put them in charge of the protection of their ~lana koje predloè imaoci srpskih dràvnih interests. And they were right, because the composi- obligacija”. Guverner i viceguverner su ~lanovi tion of the Management Board was not under govern- po poloàju i ne mewaju se dok su na poloàjima u ment control, despite the fact that its members were

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NEW MONOPOLY REGIME Narodnoj banci, a wih na taj poloàj ne postavqa nominated by the Minister of Finance and appointed vlada, ve} skup{tina akcionara Narodne banke, by virtue of a King’s Ordinance. koja je bila privatna ustanova. Ostali ~lanovi Let us look at the basic arrangements in the imaju mandat od ~etiri godine, osim u prvom Decree. The Directorate was to be run by the Manage- mandatu kada se mewaju jedan po jedan kockom dok ment Board, made up of six members nominated by se ne utvrdi red. Upravnik monopola ima jednaka the Finance Minister and appointed by the King on the „~lanska prava” kao svaki ~lan upravnog odbora, strength of his ordinance. The composition: the Gover- zna~i ravnopravno u~estvuje u radu i glasawu, s nor and Vice-governor of the National Bank, another tim da wega postavqa upravni odbor. Pri podeli two “Serbian” members and “two members proposed glasova odlu~uje glas predsedavaju}eg. by the holders of Serbian government debentures”. Promena karaktera monopolske uprave sva- The Governor and Vice-governor were members ex kako se najvi{e odrazila na na~in upravqawa. U officio and they were not changed for as long as they prethodnom periodu, do Karlsbadskog aran`ma- held their posts in the National Bank; moreover, they na i nove uredbe, glavni faktor odlu~ivawa o were not appointed to these posts by the government, svim poslovima ispod promene zakona bio je but by the Shareholders Meeting of the National Bank, ministar finansija, zajedno sa svojom desnom which was a private institution. Other members served rukom oli~enom u upravniku monopola. Posle four-year terms, except for the first term in office, pomenutih promena, podela posla je izmewena: when they were replaced one by one on the basis of a upravni odbor preuzima najva`nije nadle`nosti draw, pending the establishment of an order. The i glavnu ulogu, a na ra~un i ministra finansija Monopoly Director had the same “membership rights” i upravnika monopola. Ovaj posledwi su{tin- as any other member of the Management Board, ski postaje izvr{ilac odluka upravnog odbora, which meant that he took part in the deliberations and sa vrlo ograni~enom samostalno{}u, i to u teku- voting on an equal footing, and the only difference was }im pitawima, dok ministar finansija samo that he was appointed by the Management Board. In zadràva pravo veta na neke najva`nije odluke the case of a tie, the vote was determined by the vote of upravnog odbora. the Chairman. U skladu sa Zakonom o konversiji, uredba je The change in the character of the Monopoly propisala da upravni odbor SMU „upravqa samo- Directorate certainly had the greatest impact on the stalno kako svima do sada zavedenim dràvnim management style. In the previous period, before monopolima, tako i taksenim i kr~marinskim the Carlsbad Arrangement and the new Decree, the markama”. „On je nadleàn da re{ava sva pitawa main decision-maker in all the issues short of koja se ti~u svih dràvnih izvora kojima on amending the law had been the Finance Minister, upravqa i wegovim re{ewima i nalozima moraju together with the Monopoly Director as his right- se pokoravati” svi povezani dràvni organi. hand man. After the mentioned changes, the divi- Upravni odbor je naro~ito nadleàn: sion of labor was modified: the Management Board 1. za sve nabavke i kupovine monopola i ku- assumed the most important responsibilities and the povne i prodajne cene svih monopolskih leading role, at the expense of both the Minister of predmeta, Finance and the Monopoly Director. The latter 2. za fabrikaciju novih vrsta monopolisa- essentially became the executor of decisions of the nih predmeta, Management Board, with very limited autonomy,

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NOVI MONOPOLSKI RE@IM 3. za odre|ivawe otpusta ili nagrade prodav- mostly in current affairs, while the Finance Minister cima, kept the veto power only with respect to the most 4. za sve gra|evine i nabavke nepokretnosti, important decisions of the Management Board. 5. za sastav buxeta, za prekobuxetske izdatke In keeping with the Conversion Law, the Decree i za zavr{ni ra~un monopola, laid down that the Management Board of the 6. za sve sporove i poravnawa, Autonomous Monopoly Directorate “shall 7. za izbor ve{taka, poverenika i ovla{}ewa autonomously administer both all previously intro- pojedinih lica za pojedine poslove, duced government monopolies and duty stamps, 8. za izbor i postavqewe ~inovnika koje ne including excise duty stamps on alcoholic beverages”. postavqaju kraq i ministar finansija, za “It shall be in charge of settling all the issues con- izbor i predlagawe ~inovnika koje oni po- cerning all sources of public revenue under its man- stavqaju, kao i za nagra|ivawe, ka`wavawe agement and its decisions and orders shall be com- i otpu{tawe. plied with” by all related government agencies. In Saglasnost ministra finansija bila je uvek particular, the Management Board was in charge of: potrebna za vaqanost odluka upravnog odbora po 1. all procurement activities and purchases by ta~kama 1, 2, 3 i 5, a kod ta~ke 6 kada vrednost the monopolies, as well as purchase and sell- poravnawa ili spora prelazi 5000 dinara i kod ing prices of all the monopoly goods, ta~ke 4 kada vrednost prelazi 3000 dinara. 2. production of new kinds of monopolized goods, Uprava monopola primala je i dràvne 3. dismissing or rewarding selling agents, prihode koji nisu monopolski, ali su zaloèni 4. all construction works and real estate purchases, kao garancija za redovnu otplatu dugova. To su 5. composition of the budget, off-budget expen- ~isti prihod od: pruga Beograd-Vrawe, Ni{- ditures and annual financial statements of Pirot, Smederevo-Velika Plana i Lapovo-Kra- the monopoly, gujevac, zatim od carinarnica i obrtnog poreza. 6. all disputes and settlements, Uprava monopola bila je du`na i da prihod od 7. selection of experts and commissioners, and monopola {ibica, cigaret papira, {piritusa i powers vested in certain persons for certain monopolskih hartija, umawen za tro{kove tasks, prikupqawa, odmah uplati dràvnoj blagajni. 8. recruitment and employment of civil ser- Ove posledwe prihode uprava monopola je vants not appointed by the King and the napla}ivala za ra~un dràve, kao sposobna Finance Minister, the selection and nomina- finansijska institucija, a nije ih koristila za tion of the civil servants appointed by them, otplatu dràvnih dugova. and rewarding, punishing and firing. Terensku komponentu uprave ~inili su i The Finance Minister’s approval was a require- daqe nadzornici i duvanski straàri, a wihov ment for the validity of the Management Board posao bio je da se obezbedi po{tovawe svih decisions in relation to items 1, 2, 3 and 5, and with monopolskih propisa. Bila je to, zna~i, jedna respect to item 6, in those cases where a settlement vrsta duvanske policije, sa odgovaraju}im ovla- or a dispute was worth more than 5,000 dinars, or {}ewima. Nadzornika, koji su bili vi{i po hi- for values higher than 3,000 dinars under item 4. jerarhiji, bilo je dve vrste: okru`nih i sreskih. The Monopoly Directorate also raised public Imali su svoje kancelarije i osobqe. Ispod wih revenues that were not monopoly-related, but had

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NEW MONOPOLY REGIME Stevan Bini~ki i Pavle [afarik Stevan Bini~ki and Pavle [afarik nalazili su se obi~ni duvanski straàri (ili been pledged as guarantees for regular debt repay- kontrolori). Nadzornika je 1897. godine u Srbi- ment. Those were net proceeds from the railroads ji bilo 30, a wihove plate su varirale izme|u Belgrade-Vranje, Niš-Pirot, Smederevo-Velika 1.200 i 2.500 dinara. Duvanskih straàra bilo Plana and Lapovo-Kragujevac, then from the cus- je 230, a plate su im se kretale od 720 do 840 toms houses and the sales tax. The Monopoly Direc- dinara godi{we. Mi{qewe javnosti o ovim torate was also obliged to immediately transfer to qudima obi~no je bilo vrlo nepovoqno. Znalo se the budget the revenue from the monopolies on da su neobrazovani i ~esto nepismeni; da na matches, cigarette paper, spirit and monopoly secu- posao dolaze kao ~lanovi najniè vojske vlada- rities, after deducting the collection costs. As for ju}ih stranaka, ali i da ga isto tako gube kada this last group of revenues, the Monopoly Direc- wihova stranka prepusti vladu nekoj drugoj. Ova torate collected them on behalf of the government, nestalnost zaposlewa ~inila je da se mnogi od as a capable financial institution, and it did not use wih poveù sa krijum~arima, gledaju}i da to them for the repayment of public debt.

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NOVI MONOPOLSKI RE@IM kratko vreme iskoriste na najboqi na~in; Rezul- Supervisors and tobacco guards remained the tat svega je da ova slu`ba ne pruà uvek ono {to field component of the Directorate, and their job was bi po zakonu trebalo – stru~nu pomo} proizvo|a- to ensure the observance of all the monopoly regula- ~ima i bri`qiv nadzor nad proizvodwom u dr- tions. It was basically some sort of tobacco police, with àvnim interesu – ve} da ~esto predstavqa mesto relevant powers. As for supervisors, who were higher uhlebqewa za partijske aktiviste, sklone zadovo- in the hierarchy, there were two kinds: district and 144 qavawu li~nih interesa i mahinacijama. county supervisors. They had their offices and staff. Po~etkom septembra mesto direktora fabri- Subordinated were common tobacco guards (or con- ke napustio je Vu~ko Stojanovi}, kako bi zauzeo trollers). In 1897, there were 30 supervisors in Serbia, boqi poloàj ministra privrede, a po~etkom ok- and their salaries varied between 1,200 and 2,500 tobra za direktora fabrike duvana postavqen je dinars. The number of tobacco guards was 230, and Stevan Bini~ki, inèwerski pukovnik u penzi- their annual salaries ranged from 720 to 840 dinars. ji. Monopol po~iwe sve vi{e da sti~e vojni~ku As a rule, the public opinion of these people was very fizionomiju, jer je i upravnik [afarik bio unfavorable. It was known about them that they were penzionisani pukovnik. uneducated and often illiterate, recruited for these Slede}eg meseca (novembar 1895) ukinuta je jobs from among the rank and file of the ruling par- uprava dràvnih dugova pri ministarstvu fi- ties, and that they were fired as such when their party nansija, po{to je wene poslove otplate dràvnih had to step down in favor of another one. This insecu- dugova prema poveriocima preuzela monopolska rity of the job was the reason why many of them col- uprava. luded with smugglers, trying to make the best of that Prvi ~lan UO kome je prestao mandat bio je short span in the job. As a result, this service was not Karl Direnberger, koji je ponovo postavqen na to always offering what it was supposed to under the law, mesto ukazom od 4. januara 1896. godine. Mesec i.e. technical assistance to producers and vigilant dana kasnije upravniku monopola Pavlu [afa- supervision of the production in the public interest; riku pove}ana je plata na 8.500 dinara godi{we. instead, as often as not, it was a meal ticket place for party activists, prone to the exercise of their personal 144 Pravilnik o pozajmicama proizvo|a~ima interests and fraudulent activities. In early September, Vu~ko Stojanovi} left the Iako je Zakon o monopolu duvana iz 1890. godine position of General Manager of the factory, for a predvideo mogu}nost pozajmica iz kase uprave better one as Economy Minister, and in early Octo- monopola proizvo|a~ima duvana, ipak ta mogu}- ber Stevan Bini~ki, a retired engineer colonel, was nost nije kori{}ena jer u me|uvremenu nije appointed as General Manager of the tobacco facto- donet potrebni pravilnik koji bi precizirao ry. The monopoly was increasingly assuming a mili- na~in, uslove i procedure pozamqivawa. To je tary character, since Monopoly Director Šafarik was ispravqeno 1896. godine pravilnikom koga je also a retired colonel. doneo ministar finansija Stevan Popovi}. The following month, November 1895, the pub- Pravo na pozajmicu imali su samo oni lic debt department within the Ministry of Finance proizvo|a~i „koji gaje dobar duvan, naro~ito od was abolished, since its tasks on the repayment of boqih sorata turskog duvanskog semena… i koji public debts to creditors were assumed by the ga u svemu pravilno sre|uju – kalupe i vezuju – po Monopoly Directorate.

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NEW MONOPOLY REGIME propisima o tome”. Pozajmicu ne mogu „nikako” The first member of the Management Board dobiti „oni prozvo|a~i koji se ne trude da pro- whose term of office had ended was Carl Düren- izvedu dobar duvan, koji ga nemarqivo sre|uju, berger, who was reappointed to this position pur- koji se u toku godine uhvate u krijum~arewu” i suant to an ordinance dated 4 January 1896. A sli~no. Zajam je, vidimo, trebalo da podstakne month later, Monopoly Director Pavle Šafarik’s proizvodwu kod savesnih seqaka, a ne da predsta- salary was raised to 8,500 a year. vqa nagradu onim lo{ijima. Maksimalan iznos pozajmice predvi|en je na jednu ~etvrtinu ukupne vrednosti duvana, {to bi, Rules on Loans to Producers a zbog ~iwenice da je proizvo|a~ dobijao seme Although the 1890 Tobacco Monopoly Law provided besplatno od uprave monopola, moglo biti do- for a possibility to grant loans to tobacco producers voqno za ve}inu ostalih tro{kova. Kamatna sto- out of the resources of the Monopoly Directorate, pa je predvi|ena na 6% godi{we. that possibility was not used, because necessary Uprava monopola se za pozajmicu obezbe|iva- rules which would specify the manner, terms and la maksimalno: prvo, to je bio duvan koga je procedures of lending were never issued. That situa- (samo) ona primala, tj. ona je prebijala dug po tion was rectified in 1896 by means of Rules enact- pozajmici sa svojim dugom seqaku za preuzeti ed by Finance Minister Stevan Popovi}. duvan i ispla}ivala samo razliku; drugo, traì- The right to a loan pertained only to those pro- la je jemstvo desetorice seqaka koji jedan drugom ducers who “grew good tobacco, especially from bet- daju jemstvo, pa uprava ima prava da „razreè” ter varieties of Turkish tobacco seeds… and who dug na jemce; i tre}e, zakon joj je davao pravo pr- properly handled it in every respect – pressed it and venstva pri naplati iz imawa du`nikovog, ~ak bundled it – under the relevant regulations”. A loan bez prava àlbe od strane seqaka-du`nika. was “by no means” to be granted to “those producers Pozajmica se izdavala dosta kasno, pa tako who were not investing effort in producing good nije predstavqala kreditirawe proizvodwe, ve} tobacco, who were negligent in handling it, who were vi{e avans finalne isplate: prva polovina caught in smuggling in the course of a year” and the davala se tek „po{to se svr{i prvo i drugo broja- like. As we can see, the idea behind the loans was to we” zasa|enih strukova, a druga polovina tek encourage conscientious farmers to increase pro- po{to se obran i „nanizan duvan premeri”, {to duction, and not to reward those inadequate ones. zna~i pred preuzimawe od strane dràve. The maximum amount of a loan was fixed at Dràva je, dosta podlo, iskoristila ovaj pra- one quarter of the total value of tobacco and, con- vilnik da propi{e ne{to {to ju je odavno svrbe- sidering the fact that the Monopoly Directorate dis- lo: da uprava monopola dobije pravo da prili- tributed free seeds to producers, that could have kom isplate duvana odbije dug seqaka za dràvne been enough for the bulk of the remaining costs. i lokalne poreze i prireze. Time je naplata ovih The interest rate was set at 6 percent a year. da`bina svakako unapre|ena, ali je pitawe da li The Monopoly Directorate secured its loans to je to izvedeno na vaqan na~in, tj. da li je prihva- the maximum: firstly, the collateral was tobacco tqivo da se va`na promena zakona o neposrednim which was delivered (only) to it, namely, it would porezima (i prirezima) izvede jednim obi~nim offset the granted loan against its debt to the farmer pravilnikom. for the delivered tobacco and pay just the difference;

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NOVI MONOPOLSKI RE@IM Seoska ku}a (Feliks Kanic) A rural house (Felix Kanitz)

Uop{te uzev, nije ovo bila posebno povoqna secondly, it requested sureties from ten farmers who prilika za seqake: suma koju su mogli da pozajme guaranteed for each other, so the Directorate had the bila je umerena, rok kratak, sredstva obezbe|ewa right to “assign” a debt to the guarantors; and thirdly, velika, a procedure prili~no slo`ene. the law provided for its priority creditor status in enforced collection out of the debtor’s property, even Krijum~arewe without the right of appeal by the farmer-debtor. Loans were disbursed rather late, so they were no Duvan je u Srbiji bio skup, bar u pore|ewu sa su- credit for production, rather an advance of the final sednim zemqama, u kojima se onaj najmasovniji i payout: the first half was disbursed only after “the najlo{iji duvan prodavao jeftinije. Stoga i ni- completion of the first and second counts” of sown je ~udno ne samo da se pojavilo krijum~arewe, plants, and the second half only after the harvested

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NEW MONOPOLY REGIME ve} i da je dostiglo razmere koje su zabrinule and “strung tobacco had been measured” which was upravu monopola i navele je na akciju. just before its delivery to the state. Pogledajmo prvo cene: najjeftiniji i najlo- The state used these Rules to rather sneakily pre- {iji srpski duvan od koga su se mogle zavijati scribe something that had bothered it for a long time: cigarete ko{tao je 20 para za jednu pakla od 20 the right of the Monopoly Directorate to deduct state grama, dok je najslabiji ma|arski duvan ko{tao and local tax and surtax arrears from the amount it samo 5 para za paklu iste teìne. Ta velika had to pay to farmers for their delivered tobacco. This razlika u ceni predstavqala je jak podsticaj za certainly improved the collection of these levies but krijum~arewe i ono se pojavilo. Pokazalo se da the question is whether that was duly performed, i.e. vrlo lo{ kvalitet crnog duvana iz Ma|arske whether it was acceptable for such an important nije prepreka za srpske pu{a~e i da im vrlo amendment to the law on direct taxes (and surtaxes) niska cena nadokna|uje gubitak na kvalitetu. Tr- to be made by virtue of simple Rules. govinski glasnik je predlagao da se pomenuta Generally speaking, this was not a particularly doma}a cena snizi na 10 para po pakli, {to bi favorable opportunity for farmers: the amount they svakako smawilo zaradu monopola, ali sa 900 na could borrow was modest, the repayment period 400%, {to bi ipak bilo dosta. short, security instruments numerous, and proce- Izgleda da je krijum~arewe bilo najra{ire- dures quite complex. nije u Podriwu, naspram Bosne i Hercegovine, tada pod austrougarskom okupacijom. âk se pri~alo da kriju~arewe omogu}ava ma|arska Smuggling duvanska reìja, a radi svog trgova~kog intere- Tobacco in Serbia was expensive, at least in compar- 145 sa. I tako, tok duvanskog {verca promenio je ison with neighboring countries, where the most pravac: dok je pre uvo|ewa monopola u Srbiji widely used tobacco, of the worst kind, was sold for narod iz Podriwa {vercovao svoj duvan u Bosnu less. Therefore, it was not surprising that smuggling i Hercegovinu, gde je monopol postojao i cene had emerged and soon reached proportions which bile vi{e, sada se obrnuo i po~eo iz Bosne caused concern in the Monopoly Directorate and stizati u Srbiju, i to ne kvalitetni trebiwac, prompted it to take action. ve} slab ma|arski duvan. Let us first look at the prices: the price of the Po{to redovna sredstva borbe protiv pogra- cheapest and the lowest-quality Serbian tobacco ni~nog krijum~arewa nisu dala dobre rezultate, which could be used for rolling cigarettes was 20 ministar finansija Popovi} je preduzeo krajwe paras for a pack of 20 grams, while the price of the korake predvi|ene ~l. 88 Zakona o monopolu most inferior Hungarian tobacco was just 5 paras for duvana, koji kaè da }e on u op{tini u kojoj se a pack of the same weight. This huge difference in pojavilo „znatno krijum~arewe” zabraniti sa|e- prices was a strong incentive to smuggling and it we za slede}e tri godine. I ministar je, videli emerged. It turned out that the very bad quality of smo, doneo re{ewe o zabrani sa|ewa duvana u pod- black tobacco from Hungary was no obstacle to Ser- riwskom kraju u 1897. godini. Bio je to poku{aj bian smokers, and that its very low price compensat- da se kolektivnim ka`wavawem izazove pritisak ed for the loss in quality. Commercial Herald sug- nevinih na krivce da prestanu sa zabrawenim gested that the mentioned domestic price be reduced poslom, mada je ta politika sporna sa oba va`na to 10 paras per pack, which would have certainly

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NOVI MONOPOLSKI RE@IM stanovi{ta: prvo, sa moralnog, jer se ka`wavaju i reduced the earnings of the monopoly, but from 900 nevini; i drugo, sa funkcionalnog, po{to je to 400 percent should still have been enough. pitawe da li ka`wavawe proizvo|a~a moè dati It seems that smuggling was the most prevalent èqene rezultate kada je o~igledno da zakon in the Drina Valley district, adjacent to Bosnia and uglavnom kr{e trgovci ili nazovi trgovci. Herzegovina, at that time under Austro-Hungarian Ovo iskqu~ewe podriwskog okruga postalo occupation. Moreover, rumor had it that smuggling je stalno i prakti~no je likvidiralo tamo{wu was encouraged by the Hungarian tobacco adminis- proizvodwu. Duvan se do kraja perioda koga tration, for its own commercial interest.145 And so posmatramo, a ni kasnije, vi{e nije legalno the flow of tobacco smuggling changed its direction: sadio u dowem Podriwu, tj. u kraju oko Loznice, while before the introduction of the monopoly in dok se u gorwem Podriwu, oko Bajine Ba{te koja Serbia people from the Drina Valley district had pripada uì~kom okrugu, sadio i daqe, do dana- smuggled their tobacco to Bosnia and Herzegovina, {wih dana. where the monopoly had existed and the prices had been higher, after its introduction they started to Ambiciozniji pristup u 1896. i 1897. godini move tobacco in the opposite direction, from Bosnia to Serbia, and not high-quality Trebinjac at that, Samostalna monopolska uprava ozbiqno je shva- but inferior Hungarian tobacco. tila svoj posao. A zadatak joj nije bio samo pri- Since regular means for combating smuggling in kupqawe odre|enih vrsta dràvnih prihoda i the border area had not yielded results, Finance pla}awe anuiteta, ve} i vo|ewe monopola na ko- Minister Popovi} took ultimate steps laid down in rist uprave i dràve Srbije. Promena politike Article 88 of the Tobacco Monopoly Law, which stip- bila je potrebna, budu}i da je bilo je o~igledno ulated that he would ban planting in a municipality da dotada{we rukovo|ewe monopolima nije naj- where “smuggling occurred at high rates” over the boqe, pa je i mogu}nosti za popravak bilo dosta. next three years. And the Minister issued a decision, Jedan od prvih poteza predstavqalo je ustano- as we have seen, imposing a ban on the planting of vqavawe rasadnika duvana, i to ~etiri u kru{e- tobacco in the Drina Valley region in 1897. It was an va~kom i dva u vrawskom kraju. Wihova uloga je attempt to prompt the innocent ones by means of kako da snabdevaju proizvo|a~e duvanskim stru- collective punishment to exert pressure on the per- kovima, tako i da predstavqaju ogledna poqa gde petrators to stop their illicit activities, although this svako, a posebno proizvo|a~i, moè da vidi re- policy is disputable from both important stand- zultate pojedinih sorti semena i uveri se u points: firstly, from the moral one, because the inno- wihov kvalitet i prinose onda kada se pravilno cent are punished too; and secondly, from the func- sade i odràvaju. Uop{te, dràva je od trenutka tional one, since it is an open question whether preuzimawa monopola u svoje ruke besplatno penalties imposed on producers can produce intend- snabdevala seqake semenom, trude}i se da podig- ed effects when it is obvious that the law is violated ne kvalitet duvana i prera|evina u Srbiji kroz mostly by merchants, or ostensible merchants. kori{}ewe semena boqih turskih duvana. Budu}i This exclusion of the Drina Valley District became da se duvansko seme vrlo brzo „izme}e”, a posebno permanent and practically liquidated the production u dodiru sa semenom slabijeg kvaliteta, to se ose- there. After that, tobacco was not legally grown in the }ala potreba da se obezbedi stabilnost kvaliteta lower Drina Valley region, that is, in the vicinity of

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NEW MONOPOLY REGIME i u duvanskim rasadnicima je potraèn pravi Loznica, until the end of the observed period and na~in. Zatim, me|u proizvo|a~ima je postojalo beyond, while in the upper Drina Valley region, nepoverewe u kvalitet dràvnog semena – ~ak se u around Bajina Bašta which belonged to Uìce District, 1892. godini pri~alo da su dobili prokuvano people have continued to grow it to the present day. seme – tako da je i radi pove}awa poverewa bilo korisno snabdevati seqake iz rasadnika, gde su se i sami mogu uveriti u kvalitet semena.146 More Ambitious Approach in 1896 and 1897 Samostalna monopolska uprava povela je i The Autonomous Monopoly Directorate took its task ambiciozniju proizvodnu politiku i predloì- seriously. And the task was not only to collect certain la ministru finansija, {to je ovaj prihvatio, da types of public revenue and pay the annuities, but also se u 1896. godini zaseje znatno ve}a povr{ina to run the monopolies to the benefit of the Directorate nego do tada – najmawe 2.200, a najvi{e 2.500 and the Serbian state. A policy change was necessary, hektara. Otkupne cene su, uz minimalne korekci- bearing in mind that in the past the monopolies had je, ostale one iste iz posledwih godina. Jedina not been administered in the best possible manner, so va`nija izmena ticala se krajinskih duvani{ta: there was plenty of room for improvement. Dowi Milanovac i Kladovo preme{teni su u vi- One of the first steps was to set up tobacco nurs- {u kategoriju po cenama i sada su se na{li u eries, namely four in the region of Kruševac and two dru{tvu sa Vrawem i Bajinom Ba{tom, {to je in the region of Vranje. Their role was to both supply zna~ilo da je kvalitet duvana koji proizvode po- tobacco plants to producers and to be trial fields 147 pravqen u posledwe vreme. where everyone, and in particular producers, could Usled podba~aja proizvodwe doma}eg duvana see the results of individual seed varieties and check u 1894. i 1895. godini, monopolska uprava obja- their quality and yield when they are properly planted vila je po~etkom 1896. godine neobi~no veliki, and cultivated. By and large, the state was supplying i najve}i do tada, konkurs („ste~aj”) za nabavku free seed to farmers from the point when it took over turskog duvana: traìla je ponude ~ak za 200 the monopoly, in an effort to improve the quality of hiqada kilograma Jenixe Basme, sredweg duvana tobacco and tobacco products in Serbia through the po kvalitetu, kao i mawe koli~ine kvalitetni- use of seeds of better Turkish tobaccos. In light of the jih duvana: hiqadu kilograma Ekstra Jake i fact that tobacco seeds very quickly “went bad”, par- hiqadu i dvesta kilograma Izmirske Bo{~e. ticularly in contact with lower-quality seeds, the need Ovom velikom koli~inom basme trebalo je ne was felt to ensure the stability of its quality and the samo zadovoqiti pu{a~e navikle na prave answer was sought in tobacco nurseries. Then, pro- turske duvane, ve} i omogu}iti me{awe sa doma- ducers did not trust the quality of the government }im duvanima radi poboq{awa wihovog kvali- seed – in 1892 there were even rumors that boiled teta. Kaucija od 15% vrednosti bila je obavezna. seed had been distributed to them – so it was also Po{to se nije javio dovoqan broj ponu|a~a, ten- useful for confidence building purposes to supply der je, kako su predvi|ala konkursna pravila, farmers from the nurseries, where they could see for ponovqen i u drugom krugu je nabavka basme ustu- themselves the quality of the seed.146 pqena, a bez obzira na broj ponu|a~a. Za isporu- The Autonomous Monopoly Directorate also ku kvalitetnijih duvana nije ni ovog puta bilo introduced a more ambitious production policy 148 zainteresovanih, pa je objavqen tre}i krug. and suggested to the Minister of Finance to plant a

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NOVI MONOPOLSKI RE@IM Ambiciozniji pristup doma}oj proizvodwi considerably larger area in 1896 than in the previous nije dao `eqene rezultate u 1896. godini: podne- years – not less than 2,200 hectares, and not more to je zahteva za sa|ewe duvana samo na 1978,1 than 2,500 hectares – which he accepted. The pur- hektara, ali je odobreno tek 1145,6 hektara, dok chase prices, with some minute adjustments, je berba donela uobi~ajenih 880,6 hiqada kilo- remained the same as in the previous years. One grama. Prose~na otkupna cena po jednom kilo- important change concerned the tobacco growing gramu dostigla je 1,00 dinar, {to je najvi{e u regions in Krajina: Donji Milanovac and Kladovo posmatranom periodu i {to verovatno svedo~i o were moved to a higher price category and so they prili~no dobrom kvalitetu otkupqenog duvana. found themselves in the company of Vranje and Baji- Ipak, upravu monopola i ministra finansi- na Bašta, which meant that the quality of the tobacco ja nisu napu{tale ambicije, pa su procenili da they were producing had recently improved.147 je duvanskom monopolu u 1897. godini potrebno Due to a shortfall in the production of domestic 1,3 miliona kilograma duvana iz doma}e proiz- tobacco in 1894 and 1895, the Monopoly Direc- vodwe, i to 800 hiqada za redovne potrebe i 500 torate announced in early 1896 an extraordinarily hiqada za stvarawe zaliha. Potrebna povr{ina large-scale, the largest ever, invitation to bid for the pod zasadima procewena je na 2.500 do 2.800 hek- procurement of Turkish tobacco: it invited bids for 149 tara. Otkupne cene date su u slede}oj tabeli. as much as 200,000 kilograms of Jenid`a Basma, Ukoliko uporedimo ovu tabelu sa odgovara- medium-quality tobacco, as well as for smaller ju}om za 1891. godinu uo~i}emo da su otkupne quantities of better quality tobaccos: 1,000 kilo- cene minimalno korigovane, {to zna~i da je grams of Ekstra Jaka and a 2,200 kilograms of Izmir politika otkupnih cena prakti~no ostala Boš~a. This huge quantity of Basma was intended nepromewena. Geografski posmatrano, jedine not only for satisfying the smokers used to genuine promene su slede}e: Turkish tobaccos, but also for mixing with domestic

Otkupne cene za 1897. godinu Purchase prices for 1897

Kru{evac i Ni{ Vrawe,Bajina Ba{ta Leskovac Kraqevo, D. Milanovac i Kladovo Vlasotince, U`ice Kruševac Vranje, Bajina Bašta, Leskovac Kraljevo, D. Milanovac and Kladovo Vlasotince, U`ice osobiti do 4,00 special up to 4.00 I klasa 1,50 do 3,00 1,50 do 2,50 1,50 do 2,00 1,50 do 1,80 class I 1.50 to 3.00 1.50 to 2.50 1.50 to 2.00 1.50 to 1.80 II klasa 1,00 do 1,50 1,10 do 1,20 1,00 do 1,20 1,00 do 1,10 class II 1.00 to 1.50 1.10 to 1.20 1.00 to 1.20 1.00 to 1.10 III klasa 0,60 do 1,00 0,60 do 0,80 0,60 do 0,70 0,60 class III 0.60 to 1.00 0.60 to 0.80 0.60 to 0.70 0.60 {kart 0,20 do 0,60 0,10 do 0,40 0,10 do 0,30 0,10 do 0,20 discard 0.20 to 0.60 0.10 to 0.40 0.10 to 0.30 0.10 to 0.20

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NEW MONOPOLY REGIME Duvanski magacin u Ni{u The tobacco warehouse in Niš

• krajinski kraj (Kladovo i Dowi Milanovac) tobaccos in order to improve their quality. The cau- preba~en je u vi{u kategoriju, zajedno sa tion money in the amount of 15 percent of the value Vrawem, was mandatory. Since an insufficient number of • iz prava na sa|ewe u 1897. godini iskqu~en bidders had responded, the tender was renewed, as je podriwski kraj, odnosno op{tina Loznica set forth in the bidding terms, and in the second sa susednim selima; u pomenutom raspisu round the procurement of Basma was awarded, irre- ministar finansija Stevan Popovi} rekao spective of the number of bidders. As for higher- je da je sa|ewe dozvoqeno u svim okruzima iz quality tobaccos, again there were no interested bid- ~lana 8 Zakona, „izuzev op{tine i mesta u ders, so a third round had to be announced.148 okrugu podriwskom, kojima je re{ewem mo- A more ambitious approach to domestic pro- jim od danas Abr. 7032 zabraweno sa|ewe duction did not produce the desired effects in duvana, a iz razloga toga {to se kod wih poja- 1896: applications were submitted for planting vilo znatno krijum~arewe duvana”.150 tobacco on only 1,978.1 hectares, and just 1,145.6 • u 1897. godini pojavio se ni{ki okrug, i to u hectares were approved, while the harvest yielded prvoj, najskupqoj kategoriji zajedno sa kru- the usual 880,600 kilograms. The average pur- {eva~kim; ovome nije uzrok iznenadna pojava chase price per kilogram reached 1.00 dinar, which gajewa duvana u ni{kom kraju, ve} stvarawe was the highest level in the observed period and ni{kog okruga od varo{i Ni{a i nekoliko which probably testifies to the fairly good quality okolnih srezova, ukqu~uju}i i duvanske of the purchased tobacco.

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NOVI MONOPOLSKI RE@IM srezove aleksina~ki i moravski koji su do Still, the Monopoly Directorate and the Minister of tada pripadali kru{eva~kom okrugu; ova ad- Finance had not abandoned their ambitions – they esti- ministrativna promena u~inila je da je ni- mated that in 1897 the tobacco monopoly needed 1.3 {ki okrug odmah izbio na prvo mesto me|u million kilograms of tobacco from domestic produc- okruzima u Srbiji po proizvodwu duvana, a tion, namely 800,000 for current needs and 500,000 for da je kru{eva~ki pao na udaqeno drugo. building stocks. An estimate of the area that needed to Ni u 1897. godini ambicije se nisu ostva- be planted stood at 2,500 to 2,800 hectares. Purchase rile. Umesto planirane navale proizvo|a~a i prices are presented in the previous table.149 namere ministarstva da odobri 2.500-2.800 hek- If we compare this table with the corresponding tara za sadwu, seqaci su traìli dozvole samo za one for 1891, we shall see that the purchase prices 1.717,3 hektara, a ministarstvo odobrilo daleko were just slightly adjusted, which means that pur- mawe – 1.030,2 hektara – zna~i ni blizu jedne chase price policy practically remained the same. In polovine planiranog. O~igledno je da je nekada- terms of territorial distribution, the only changes {wi veliki interes seqaka za gajewe duvana were the following: nestao i da puka èqa dràve da se proizvodwa • the Krajina region (Kladovo and Donji Mila- pove}a nije bila dovoqna. novac) was moved to a higher category, together Jedan od uzroka mawe odobrenih povr{ina je with Vranje, stroà politika Samostalne uprave monopola • the Drina Valley region was excluded from the prema zahtevima seqaka, izraèna najnepovoq- right to plant tobacco in 1897, more precisely, nijim odnosom prijavqenih i odobrenih povr- the municipality of Loznica with the {ina u celom periodu. O~igledno je da je uprava surrounding villages; in the mentioned circular stroè nego ranije vagala da li podnosilac zah- Finance Minister Stevan Popovi} said that teva ispuwava kriterijume i pruà dovoqna jem- planting was allowed in all the districts referred stva za kvalitetnu proizvodwu. Ipak, ovaj razlog to in Article 8 of the Law, “with the exception of svakako ne moè biti presudan, jer ni prijave se- the municipality and places in the Drina Valley qaka nisu dostizale planirane povr{ine: u 1896. District prohibited from planting tobacco by godini 1978,1 prijavqenih prema 2.200-2.500 virtue of my decision issued today under ref. no. planiranih hektara, a u 1897. godini 1.717,3 pri- 7032, the reason being the fact that in the javqenih prema 2.500-2.800 planiranih hektara. mentioned area intensive tobacco smuggling U ove dve godine je odobrena povr{ina bila has been registered”.150 najmawa u celom posmatranom periodu: 1.145 i • in 1897, Niš District appeared in the table going 1.030 hektara, ali je prinos* bio najve}i: 814 i straight to the first, the most expensive category, 819 kilograma po hektaru, dok je prosek za ostale together with Kruševac District; the reason for godine znatno niìh 618 kilograma. this was not a sudden start of tobacco Prose~na otkupna cena duvana bila je u production in the region of Niš, but the 1897. godini samo 0,69 i najnià u celom formation of Niš District from the town and posmatranom periodu, {to verovatno govori da several surrounding counties, including the tobacco growing counties of Aleksinac and the * Aproksimativan prinos, dobijen iz odnosa otkupqene koli~ine duvana sa odobrenom Morava Valley, which had belonged to the povr{inom za sa|ewe. district of Kruševac before that; owing to this

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NEW MONOPOLY REGIME je i kvalitet duvana bio slabiji nego obi~no, administrative change, Niš District immediately ali i da uprava monopola nije htela da pove}a- made its way up to the first place among Serbia’s wem otkupnih cena podsti~e zainteresovanost districts in terms of tobacco production, and seqaka za gajewe duvana. Kruševac District fell to the distant second place. The ambitions did not materialize in 1897 Velikoprodaja duvana either. Instead of the planned flood of producers and the intention of the Ministry to approve plant- Krajem aprila 1896. godine isticali su trogodi- ing on 2,500–2,800 hectares, farmers had applied {wi ugovori uprave monopola sa velikoprodav- for licenses to plant a mere 1,717.3 hectares, and cima duvana, onim trgovicima koji su dràli po the Ministry approved far less – 1,030.2 hectares – jedan okrug i grosisti~ki posredovali izme|u which was far from even a half of the planned area. dràvnog monopola i maloprodavaca po selima i Obviously, the onetime great interest of farmers in gradovima. Pitawe je bilo {ta sa wima raditi, tobacco growing was lost and the mere wish of the odnosno da li da se nastavi po dotada{wem siste- state to increase production was not enough. mu i raspi{e tender za novi trogodi{wi period One of the reasons for a reduction in the area ili da uprava monopola preuzme i taj posao i u approved for planting was a stricter policy of the potpunosti podràvi velikoprodaju. Autonomous Monopoly Directorate regarding farm- Ideja podràvqewa imala je dosta pristali- ers’ applications, which was reflected in the most ca, koji su navodili da dràva nepotrebno tole- unfavorable ratio between the applied for area and ri{e velikoprodavce i wihove navodno visoke the area approved for planting in the entire period. It provizije, kao i da bi uprava monopola lako is obvious that the Directorate weighed more strictly mogla da taj posao preuzme na sebe i dràvnoj than before whether the applicant had met the crite- blagajni pri{tedi znatna sredstva. ria and offered sufficient guarantees for good-quality Protivnici podràvqewa imali su svoje production. Still, this reason definitely could not razloge: tvrdili su da o {tedwi povezanoj sa have been the crucial one, because the area in farm- ukidawem privatne velikoprodaje te{ko da mo- ers’ applications was not reaching the planned num- è biti govora, po{to privatnici vr{e korisne ber either: in 1896, this area was 1,978.1 relative to poslove na dràwu okru`nih skladi{ta duvana, the planned 2,500–2,800 hectares, and in 1897 the transportu i distribuciji, evidencijama, borbi ratio was 1,717.3 hectares from applications relative protiv krijum~arewa i sli~no. Najubedqiviji u to the planned 2,500–2,800 hectares. tom smislu bio je Lazar Pa~u prilikom diskusi- In these two years the approved area was the je o monopolskom zakonu iz 1890. godine. smallest in the entire observed period: 1,145 and Uprava monopola je jo{ 1895. godine pred- 1,030 hectares, but the yield* was the highest: 814 loìla da ona preuzme posao velikoprodaje, and 819 kilograms per hectare, while the average {to je vlada prihvatila i {to je ozakoweno u for the rest of the years was considerably lower and buxetu za 1896. godinu. Me|utim, promene u stood at 618 kilograms. monopolima i, posebno, upravnom odboru izgleda da su dovele do promene mi{qewa, pa je u prole}e 1896. godine ipak raspisan konkurs za * An approximate yield, derived from the ratio between the purchased quantity of tobacco and izbor velikoprodavaca. the area on which planting was approved.

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NOVI MONOPOLSKI RE@IM Duvanski magacin u Vrawu The tobacco warehouse in Vranje

Osnovni uslovi konkursa bili su slede}i:151 The average purchase price of tobacco in 1897 • trajawe ugovora tri godine, tj. od 1. maja was just 0.69, the lowest in the entire observed peri- 1896. do 30. aprila 1899. godine, od, which probably indicates that the quality of • u svakom okrugu samo jedan velikoprodavac, tobacco was also lower than usual, as well as that ali jedan velikoprodavac moè dràti vi{e the Monopoly Directorate did not want to encour- okruga, age the interest of farmers in tobacco growing by • velikoprodavac moè biti samo onaj ko je increasing purchase prices. srpski dràvqanin, • svaka ponuda mora da sadrì slede}a dva ele- menta, {to su i odlu~uju}i kriterijumi za Tobacco Wholesale izbor ponuda: In late April 1896, three-year contracts were expir- – koliko se kandidat obavezuje da }e potro- ing between the Monopoly Directorate and tobacco {iti duvana u slede}em trogodi{tu u bru- wholesalers, those wholesalers who held one district to vrednosti, each and mediated on a gross basis between the gov- – „koliki % traì za podmirewe svojih tro- ernment monopoly and retailers in villages and {kova”, s tim da je za vaqevski okrug gorwa towns. The question was what to do with them, that granica velikoprodajne provizije 6%, a za is, whether to proceed pursuant to the system in ostale 7%, place and call a tender for a new three-year period • provizija za maloprodavce je 6, 7 ili 10% po or to transfer that job too to the Monopoly Direc- okruzima i nekim srezovima, torate and fully nationalize wholesale.

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NEW MONOPOLY REGIME • ukoliko tokom trajawa ugovora velikoproda- The nationalization idea had many supporters vac ne uspe da potro{i onoliko duvana na ko- who argued that the state unnecessarily tolerated liko se obavezao ugovorom, duàn je da razli- wholesalers and their reportedly high commissions, ku uplati dràbnom monopolu: ukoliko to ne as well as that the Monopoly Directorate could have u~ini, ugovor se raskida. easily taken upon itself that task, thus saving a con- O~igledno je da je konkurs bio koncipiran, siderable amount for the government coffers. pomalo prikriveno, kao nov~ana licitacija za The opponents of nationalization had their own pravo prodaje, gde pobednik mora platiti izli- reasons: they argued that the elimination of private citiranu sumu a bez obzira da li je duvan u toj wholesale would bring hardly any savings, since pri- vrednosti potreban ili ne, da li ga je velikopro- vate parties were performing useful jobs on maintain- davac preuzeo ili nije. ing district tobacco warehouses, in transport and dis- Iskustvo iz prethodnog trogodi{weg perio- tribution, record keeping, combating smuggling and da (1893-1896) nije bilo ohrabruju}e: veliko- the like. The most persuasive in that respect was Lazar prodavci su tada, u àru licitacije, obe}ali da Pa~u in a discussion about the 1890 monopoly law. }e preuzeti i prodati duvana za 25,7 miliona, a As early as 1895, the Monopoly Directorate had stvarno su preuzeli za 22,1 miliona dinara, {to suggested its taking over the wholesale business, zna~i da su ostali u obavezi da na kraju zakupa which was accepted by the government and enacted plate dràvi ~ak jo{ 3,6 miliona. Budu}i da into the 1896 budget law. However, changes in the takvu `rtvu nisu nameravali da u~ine, ostalo je monopolies and particularly in the Management da dràva konfiskuje wihove ranije upla}ene Board probably led to a change of heart, and in the kaucije za obavqawe posla, ~ija visina ni izbli- spring of 1896 a tender was called for the selection za nije dostizala taj dug. of wholesalers. Trgovinski glasnik je kritikovao ovakvo re- The key terms of the tender were the following:151 {ewe i tvrdio da nije u redu {to dràva posta- • the validity period of contracts was three years, vqa trgovcima „zamku” i „klopku”, budu}i da „zna that is, from 1 May 1896 to 30 April 1899, se ve} kako se qudi namamquju uzeti na sebe • in every district there was only one wholesaler, but obaveze koje ne mogu ispuniti”; „dràva na{a a single wholesaler could hold several districts, treba da bude na~isto sa tim da niko nije u stawu • only Serbian nationals could be wholesalers, vi{e duvana prodati no {to se moè potro{iti” • each offer had to contain the following two i da je ovo pona{awe „nedostojno dràve”. elements, which were actually the critical Na konkurs je prispelo 47 ponuda. Me|u criteria for the selection of bids: pobednicima, ovoga puta nije bilo zvu~nih ime- – the gross value of the candidate’s commit- na ili politi~ara.152 ment in terms of tobacco consumption in the following three years, Poseta kwaza Nikole – “the percentage he asked for covering his costs”, with the cap on the wholesale com- U ciqu otopqavawa odnosa izme|u dveju srpskih mission being at 6 percent for Valjevo Dis- dinastija – Obrenovi}a iz Srbije i Petrovi}a trict, and 7 percent for all other districts, iz Crne Gore – u Beograd je juna 1896. godine pri- • the commission for retailers was 6, 7 or 10 speo crnogorski kwaz Nikola. Posetio je brojne percent in districts and some counties,

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NOVI MONOPOLSKI RE@IM institucije, me|u kojima i fabriku duvana kao • if a wholesaler failed to meet his contractual moderno i veliko preduze}e. Evo zanimqivog no- obligation in relation to tobacco consumption vinskog izve{taja: during the contract period, he was obliged to pay „Poseta u fabrici duvana. Posle izvr{enog the difference between his actual consumption pregleda vojske na bawi~kom poqu, Uzvi{eni and his commitment under the contract to the vladaoci posetili su fabriku duvana oko 9 i po government monopoly: in the case of his failure ~asova. Vladaoce su pri ulasku do~ekali: mini- to do so, the contract was terminated. star finansija g. Steva D. Popovi}, direktor Obviously, the tender was structured as a thinly fabrike pukovnik g. Stevan Bini~ki, oboje u ga- veiled auction for the right of sale, where the win- li, ministri g.g. Vu~ko Stojanovi}, Quba Kova- ner had to pay the highest bid price irrespective of ~evi} i ostali ~inovnici fabrike. whether he needed tobacco worth that much or not, Kako ulazak, tako i dvori{te fabri~ko whether the wholesaler took it over or not. bilo je vanredno lepo dekorisano trobojkama, The experience from the previous three-year peri- grbovima i zelenilom. U dvori{tu je bio vele- od (1893–1896) was not encouraging: carried away by lepan paviqon ~ija je unutra{wost bila deko- the bidding, wholesalers had promised to take over and risana sve samim prera|evinama od srpskog sell tobacco worth 25.7 million, whereas in reality they duvana. Duvarovi, koji su tako|e obloèni took over a quantity worth 22.1 million dinars, which kriànim duvanom, iski}eni su bili grbovima meant that at the end of their lease they still owed the i monogramima obojih vladalaca, a sve od duva- state as much as 3.6 million. Bearing in mind that they na, cigareta i cigara. Svi radnici i radenice did not intend to make such a sacrifice, the state could u ìvopisnom narodnom i varo{kom ruhu bili only confiscate their previously paid caution money su po odeqewima i radili svoj obi~an dnevni for the performance of the job, whose amount was not posao. Pregled je po~eo po odeqewima. Uzvi{e- even close to covering the above debt. ni Gost, neobi~no iznena|en ure|ewem i redom, Commercial Herald criticized such an arrange- interesovao se i pitao za sve pojedinosti i s ment and claimed that it was inappropriate for the state velikom pa`wom posmatrao je rad. Na pitawe to set “snares” and “traps” for merchants, since “it is Wegovo da li me|u radnicima ima Crnogoraca, well-known that people are lured into taking upon predstavili su mu jednu ostariju Crnogorku themselves obligations which they cannot honor”; ”this koja u fabrici stalno radi. Uzvi{eni Gost state of ours should be aware of one thing: no one is obi{ao je sva odeqewa i, kad je se iz posledweg able to sell more tobacco than it is possible to consume” magacina pojavio, naro~ito spremqen i obu~en and that such conduct was “unbecoming to a state”. ènski kor od radenica fabri~kih veselo i Forty-seven bids were submitted for the tender. skladno zapevao je kneèvu pesmu „Onam’ This time there were no high-profile names or onamo”, a potom Srpsku Kraqevsku Himnu. Pri- politicians among the winners.152 jatno iznena|en, Uzvi{eni Gost zastao je pred tom lepom grupom radenica koje behu odevene u sve~ano narodno odelo i, s veselim osmejkom, Prince Nikola’s Visit slu{ao je nekoliko trenutaka. Zatim su vladao- With a view to initiating a rapprochement between ci u{li u paviqon, gde su bili posluèni ci- two Serb dynasties – the Obrenovi}s from Serbia garetama, slatkom i kowakom. Za vladaoce i and the Petrovi}s from Montenegro – in June 1896

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NEW MONOPOLY REGIME Kraq Aleksandar Obrenovi} King Aleksandar Obrenovi} svitu bile su spremqene divotne kutije od Montenegrin Prince Nikola arrived in Belgrade. He kadife sa najfinijim cigaretama. W. V. Knez visited numerous institutions, among them being zapisao se svojeru~no u kwigu posetilaca, a to also the tobacco factory, as a modern and large com- je u~inila i wegova svita. Za vreme sedeqa u pany. Here is an interesting report from the press: paviqonu, devoja~ki kor pevao je narodne “A Visit to the Tobacco Factory. After carrying pesme, a vatrogasci fabri~ki izvodili svoje out an inspection of the army on the Banjica field, produkcije. W. V. Knez s pa`wom je posmatrao the Distinguished Rulers visited the tobacco factory rad vatrogasaca. Posle ovoga, guslar, g. Vidoje around half past nine. At the gate, the Rulers were @uwi}, ~inovnik op{tine beogradske, gudio je welcomed by the Finance Minister Mr. Steva D. Draga{evi}evu pesmu „Jeka od gusala”, ~iji je Popovi}, the General Manager of the factory, zavr{etak naro~ito prepravqen za ovu prili- Colonel Stevan Bini~ki, both in full dress, Ministers ku. Uzvi{eni Vladaoci s velikom su pa`wom Messrs. Vu~ko Stojanovi}, Ljuba Kova~evi} and saslu`ali ovog na{eg odli~nog guslara i po other officials of the factory. svr{etku pesme W. V. Knez obdario je guslara Both the entrance and the factory yard were srebrnom medaqom. Za ovim je nastala igra. extraordinarily nicely decorated with tricolored flags, Jedan radenik svirao je u frulu, a desetostruko coats of arms and greenery. In the yard there was a kolo vijalo se kao divotna {arena lesa. Razdra- magnificent pavilion whose interior was decorated gan ovim W. V. Knez naredio je dvojici serdara completely with products made of Serbian tobacco. iz svoje svite te su u sred toga kola odigrali The walls, also covered with cut tobacco, were deco- jednu juna~ku crnogorsku igru. Pqeskawu i rated with coats of arms and monograms of both uzvicima „@iveli” ne be{e kraja. rulers, all made of tobacco, cigarettes and cigars. All Ovo je u kratkim potezima opis ove posete. male and female workers in picturesque folk and town Ono odu{evqewe, uop{te celokupan utisak bio clothes were in their divisions performing their regu- je impozantan, za {ta se ima zahvaliti zauzi- lar daily work. A tour of inspection started with divi- mqivom direktoru fabrike g. Bini~kom koji je sions. The Distinguished Guest, very surprised by the ovom prilikom od W. V. Kneza dobio najve}a organization and order, asked questions and inquired priznawa, jer je se W. V. Knez, o~aran utiscima, about all the details and watched the work with great pored toplih re~i i srda~no poqubio sa g. attention. In reply to His question whether there were Bini~kim. W. V. Kraq tako|e je izrazio svoje any Montenegrins among workers, they presented to zadovoqstvo i dopadawe. Uzvi{eni Gost bio je him an elderly Montenegrin woman who was a full- ispra}en urnebesnim @iveo i „Onam’ onamo”. time employee of the factory. The Distinguished Posle podne bila je u fabrici igra i veseqe”. A Guest visited all the divisions, and then from the last slede}eg dana gra|ani su pohrlili u fabriku da warehouse a particularly prepared and dressed female 153 vide to ~udo od duvanskog paviqona. choir appeared, comprised of female employees of the factory, who started to cheerfully and harmoniously sing the Prince’s song “Onam’ onamo” (There, over there), followed by the Serbian Royal Anthem. Pleas- antly surprised, the Distinguished Guest paused in front of that nice group of women workers who were dressed in festive folk costumes and, with a smile of

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NEW MONOPOLY REGIME joy, listened to them for a couple of moments. Then the rulers went into the pavilion where they were served cigarettes, fruit preserves and cognac. For the rulers and their entourage, marvelous velvet boxes were prepared with the finest cigarettes. His Highness the Prince personally signed the guest book, and that was done by his entourage too. During their visit to the pavilion, the girl choir sang folk songs and factory fire fighters performed their program. HH the Prince watched the operations of the fire fighters with great attention. After this, a gusle-player (translator’s note: a one-stringed Balkan folk fiddle), Mr. Vidoje @unji}, a clerk in the Belgrade municipality, fiddled Dragaše- vi}’s song “The Gusle Echo” whose end was particularly rewritten for this occasion. The Distinguished Rulers very attentively listened to this great gusle- player and when he finished the song, HH the Prince presented the gusle-player with a silver medal. After that, the dancing started. A worker played the flute, and a ten-fold wheel dance streamed like magnificent colorful lace. Delighted with this, HH the Prince ordered two military commanders from his entourage to dance a virile Montenegrin dance in the middle of this wheel dance. The applauding and shouting “Long Live” could not stop. In brief, this would be a description of this visit. The delight, and generally the whole impression was imposing, for which the credit goes to the spirited General Manager of the factory, Mr. Bini~ki, who received on this occasion the greatest acknowledg- ments from HH the Prince, because HH the Prince, fascinated with the impressions, in addition to kind words also exchanged cordial kisses on the cheeks with Mr. Bini~ki. HM the King also expressed his delight and pleasure. The Distinguished Guest was seen off with a thundering Long Live and “Onam’ onamo”. In the afternoon, there was dancing and partying in the factory”. And on the next day, citizens rushed to the factory to see that miraculous tobacco pavilion.153

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NOVI MONOPOLSKI RE@IM Vlada Vladana \or|evi}a

VLADAN ÐOR\EVI]’S GOVERNMENT

osle vlade \or|a Simi}a, na vlast je do- fter Ðor|e Simi}’s government, a neutral gov- P{la neutralna vlada Vladana \or|evi}a. Aernment under Vladan Ðor|evi} came to Ostala je na upravi zemqe ~ak tri godine (11. power. It remained in office for as many as three oktobar 1897 – 12. juli 1900), {to joj je dalo years (11 October 1897 – 12 July 1900), which pro- retku priliku da na miru radi i unapre|uje vided a rare opportunity to work in peace and dràvne poslove. improve affairs of the state. Na po~etku 1897. godine bilo je posla oko At the beginning of 1897, there was a great rukovodstva monopolske uprave. Grofu Sen-Bal- deal of work related to the Monopoly Directorate monu produèno je ~lanstvo u Upravnom odboru, management. Count Saint-Balmont’s term on the dok je ~lana UO Dimitrija Krsmanovi}a, koji je Management Board was extended, and member podneo ostavku, zamenio Mihailo Bogi}evi}, of the Management Board Dimitrije Krsmanovi}, direktor srpskih dràvnih èlelnica u ostav- who had resigned, was replaced by Mihailo ci. A u martu, jo{ za vreme poluradikalne Simi- Bogi}evi}, resigned Director of the Serbian Rail- }eve vlade, za upravnika monopola je po tre}i roads. And in March, during Simi}’s semi-Radical put postavqen Lazar Pa~u, dok je dotada{wi, government, Lazar Pa~u was appointed as Pavle [afarik, preme{ten u Dràvni savet. Monopoly Director for the third time, while his predecessor Pavle Šafarik was reassigned to the Nabavke turskih duvana i proizvodwa National Council. 1898. godine Uobi~ajeni poslovi bili su i nabavka tur- Procurement of Turkish Tobaccos and skih duvana kako za neposrednu potro{wu, tako i Production in 1898 za me{awe sa srpskim duvanima, a za 1897, 1898. The routine activities included the procurement of i 1899. godinu. Turkish tobaccos both for immediate consumption Nabavka turskih duvana za 1897. godinu obu- and for mixing with Serbian tobaccos, namely for hvatala je: 1897, 1898 and 1899. 1. 10.000 kg Kir The procurement of Turkish tobaccos for 1897 2. 15.000 kg Siripastal Jaka included:

203 Salon porodice Kukovi} iz Sarajeva The drawingroom of the Kukovi} family from Sarajevo 3. 15.000 kg Maksul Basma 1. 10,000 kg Kir 4. 3.000 kg Jaka, i to 2. 15,000 kg Siripastel Jaka a. 1000 kg iz sela Kire~iler 3. 15,000 kg Maksul Basma b. 1000 kg iz sela Kizir|i Mursal i 4. 3,000 kg Jaka: v. 1000 kg iz sela âkrli a. 1000 kg from the village of Kire~iler 5. 1.500 kg Smirna \ubak. b. 1000 kg from the village of Kizir|i Mursal Uslovi su bili uobi~ajeni: kaucija 15% c. 1000 kg from the village of âkrli vrednosti, berba obavezno 1894. ili 1895, upravi 5. 1,500 kg Smirna Ðubak. monopola se dostavqa mustra duvana, koja se kod The terms were standard: caution money in the isporuke komisijski upore|uje sa prispelim amount of 15 percent of the value had to be deposit- duvanom itd. ed, the harvest had to be of 1894 or 1895, a sample Konkurs za nabavku turskog duvana za 1898. of tobacco had to be submitted to the Monopoly godinu bio je jednostavniji: traìla se iskqu- Directorate, so that the Commission could compare ~ivo Siripastel Jaka, i to 10 hiqada kilograma, it with the supplied tobacco at delivery, etc. 154 uz iste uslove. A tender for the procurement of Turkish tobac- Za 1899. godinu raspisan je konkurs za 15 co for 1898 was simpler: bids were invited only for hiqada kg Siripastel jake, 15 hiqada kg Maksul Siripastel Jaka, namely 10,000 kilograms, on the basme i 5 hiqada kg Kira, uz uobi~ajene uslove. standard terms.154 Ove ve} stalne nabavke Siripastel jake i For 1899, a tender was called for 15,000 kilograms Maksul basme pokrenule su pitawe razloga uvoza of Siripastel Jaka, 15,000 kilograms of Maksul Basma duvana u Srbiju. Naime, uobi~ajilo se mi{qewe and 5,000 kilograms of Kir, on the standard terms. da treba uvoziti turski duvan radi dopune do- These practically regular purchases of Siripastel ma}e potro{we posebno aromati~nim duvanima Jaka and Maksul Basma raised the issue of reasons visokog kvaliteta i radi me{awa sa srpskim for importing tobacco in Serbia. Namely, it was gen- duvanima kako bi im se popravila aroma, odno- erally believed that Turkish tobacco should be sno kvalitet. Tako se radilo i pre monopola, imported for the purposes of supplementing domes- odnosno srpski trgovci su uvozili kvalitetne tic consumption with especially aromatic high-quali- turske duvane iz pomenuta dva razloga. I niko ty tobaccos, and of mixing it with Serbian tobaccos in nije imao ni{ta protiv uvoza kvalitetnih order to improve their aroma and/or quality. That turskih duvana kao dopune srpskim. Me|utim, was the methodology used even before the monopoly, Siripastel jaka i Maksul basma smatrani su du- i.e. Serbian merchants had imported high-quality vanima niè-sredweg kvaliteta, podjednakim Turkish tobaccos for the mentioned two reasons. And onim boqim srpskim duvanima, pa se postavqalo no one had anything against importing high-quality pitawe da li ih uop{te ima smisla kupovati po- Turkish tobaccos to supplement the Serbian ones. red kvalitetnog bajinovca, aleksina~kog i kra- However, Siripastel Jaka and Maksul Basma were jinskog duvana. [ta se dobija time? considered to be in the lower-medium quality class, Na finansijskom planu dobitka te{ko da equal to better Serbian tobaccos, so the question was ima. Naime, na tenderu iz 1899. godine postignu- raised whether it made any sense at all to buy them te su cene od 2,5 din/kg za Siripastel jaku i 4-5 when there was good-quality Bajinovac, Aleksinac or dinara za Maksul basmu. A to su cene koje se Krajina tobacco. What was to be gained by that?

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VLADAN \OR\EVI]’S GOVERNMENT pla}aju za najboqe srpske duvane. âk, u 1899. There were hardly any financial gains. Namely, godini postignuta je nià cena turskih duvana in the 1899 tender, the prices achieved for Siripastel nego obi~no, po{to se ovog puta u konkurenciju Jaka and Maksul Basma were 2.5 din/kg and 4–5 ukqu~io i turski monopol, pa je niòm cenom dinars respectively. And these were the prices paid nadma{io ranije pobednike bra}u Alatini iz for the best Serbian tobaccos. Moreover, in 1899, the Soluna. A tokom prethodnih godina je Siripa- price which was achieved for Turkish tobaccos was stel jaka pla}ana i do 6 din/kg. Tada{wi du- lower than usual, because this time the Turkish vanski trgovci tvrdili su da ni kod kvaliteta monopoly also joined the competition, and beat for- duvana nema potrebe za wima, odnosno nisu dava- mer winners, the brothers Alatini from Salonika, by li prednost ovim tipovima turskog duvana nad offering a lower price. And in the course of the pre- 155 srpskima, a poneke partije bile su i lo{ije. vious years the price of Siripastel Jaka had been Nabavka Kira nije dovo|ena u pitawe, po{to se going to as much as 6 din/kg. The tobacco merchants radi o kvalitetnom aromati~nom duvanu, kakav at that time claimed that the quality of these tobac- se uklapa u potrebe dopune srpskih duvana. cos did not warrant their imports, i.e. they did not Ambicija o pove}awu doma}e proizvodwe prefer these types of Turkish tobaccos to the Serbian dràla je i daqe Samostalnu monopolsku upravu. ones, and certain batches were even inferior in qual- Pri ogla{avawu proizvodwe i cena za 1898. ity.155 The purchase of Kir was not an issue, since it godinu planirana je proizvodwa od ~ak 1,6 mili- was a high-quality aromatic tobacco, which was suit- ona kilograma, od ~ega ponovo 800 hiqada za able for supplementing Serbian tobaccos. redovnu potro{wu i 800 hiqada za stvarawe The Autonomous Monopoly Directorate was not zaliha. Planirana povr{ina dostizala je 2.200 giving up on its ambition to boost domestic produc- do 2.500 hektara. Otkupne cene gotovo da nisu tion. In announcing the production and prices for mewane, osim minimalno, ali geografska 1898, the plan was to have production of as much as distribucija jeste: Bajina Ba{ta i Kladovo 1.6 million kilograms, 800,000 for regular con- preba~eni su iz druge u prvu kategoriju cena, {to sumption as before, and 800,000 for building je bilo, bar za bajinovac, prirodno s obzirom da stocks. The area planned for planting was between je planirano i uskoro izvedeno wegovo progla- 2,200 and 2,500 hectares. The purchase prices were {ewe za duvan specijalne kategorije na prodaj- almost unchanged, that is, the changes were mini- noj strani. Za vanredan kvalitet duvana predvi- mal, but the territorial distribution was altered: |ena je i ovog puta posebna cena od 4 din/kg, ali Bajina Bašta and Kladovo were moved from the sec- je pro{irena sa kru{eva~kog i ni{kog na sva ond to the first price category, which was natural, at duvanska podru~ja u zemqi. least for Bajinovac, bearing in mind that the plan Ove 1898. godine je monolska uprava deli- was to declare it special category tobacco on the sell- mi~no uspela: otkupqeno je 1.280,2 hiqade kilo- ing side, which was actually done in a short while. grama duvana, {to je najve}i rezultat otkad For tobacco of extraordinary quality, there was postoji monopol duvana, a mo`da i svih vremena. again a special price of 4 din/kg, but its application Ova berba ne samo da je dala dovoqno duvana za was expanded from the Kruševac and Niš regions to jednogodi{wu potro{wu, ve} je i omogu}ila all the tobacco growing regions in the country. stvarawe rezervi doma}eg duvana od gotovo pola In1898, the Monopoly Directorate was partially miliona kilograma. successful: 1,280,200 kilograms of tobacco was

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VLADA VLADANA \OR\EVI]A Afere iz 1898. godine purchased, which was the highest quantity since the establishment of the tobacco monopoly, maybe even Kroz kasu uprave monopola prolazio je veliki the highest ever. This harvest not only yielded novac i nije ~udno da, u Srbiji, stalno kolaju enough tobacco for annual consumption, but it also sumwe u ispravnost rada wegove uprave. Obi~no enabled the formation of reserves of domestic su te sumwe bile preterane, ali izgleda da tobacco amounting to almost 500,000 kilograms. ponekada i nisu, bar kada su pojedini ~inovnici u pitawu. Nekako, koncentracija nekoliko aferica zbila se u 1898. godini, pa }emo ih Scandals in 1898 ukratko pogledati. Big sums were circulating through the coffers of the Najve}e uzbu|ewe izazvala je tronedeqna Monopoly Directorate and it was no wonder that the provera kwiga i kase monopolske uprave koju je accuracy of the work of its management was con- izvela Glavna kontrola, dràvni organ zaduèn stantly under suspicion in Serbia. This suspicion za poslove finansijske kontrole. Ve} sam was usually exaggerated, although there were cases, ulazak dvaju komesara Glavne kontrole u upravu as it seems, where it was justified, at least with monopola izazvao je kome{awe ne samo u respect to certain officials. Somehow, several small- upravi, ve} i u javnosti. Listovi èqni rasta scale scandals concentrated in 1898, so we shall take tiraà odmah su po~eli da naduvavaju stvar i a brief look at them. podsti~u ~ar{ijske glasine kako su ustanovqe- The greatest excitement was stirred by a three- ne velike nepravilnosti i zloupotrebe, {to je week audit of the books and cash holdings of the podgrevalo ma{tu publike. Da je stvar ostala Monopoly Directorate conducted by the Supreme na tome ne bi bilo posebne {tete, ali su i Control, a government body in charge of financial austrijske novine po~ele da pi{u o verovatnim control. A mere entry of two commissioners of the zloupotrebama, {to je odmah, za jedan dan, dove- Supreme Control into the Monopoly Directorate lo do pada cena srpskih dràvnih obveznica na caused turbulence not only in the management, but evropskom trì{tu (Berlin i Be~) za velika also in the public. The papers, always in search of ~etiri procenta. juicy stories to increase their circulation, immediate- Poslanik Nikola Krupeèvi} interpelisao ly started to blow things out of proportion and add je vladu, pitaju}i da li ima istine u ovim glasi- fuel to the town rumors about major irregularities nama i da li je zaista {teta osam miliona dina- and frauds being discovered, which fired the imagi- ra. Odgovorili su i Glavna kontrola i ministar nation of the audience. Had it stopped there, no par- finansija. Glavna kontrola je podsetila da su ticular harm would have been done. But Austrian weni komesari ispitivali stawe u upravi mono- papers, too, started to write about likely abuse, which pola od 19. juna do 11. jula i zakqu~ila: „Pregled immediately, in just one day, led to a drop in the price sviju kasa u Upravi Dràvnih Monopola, sviju of Serbian government bonds on the European mar- kwiga i dokumenata izvr{en je iscrpno i, po ket (Berlin and Vienna) by a big four percent. upore|ewu svoju dokumenata sa dnevnikom kase i Deputy Nikola Krupeèvi} interpellated the sa amanetnikom, utvr|eno je: da su sve kase government, asking whether there was any truth to Uprave Dràvnih Monopola potpuno ispravne; these rumors and whether the damage really da je kwigovodstvo uredno i da odgovara kako amounted to eight million dinars. Replies came both

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VLADAN \OR\EVI]’S GOVERNMENT pravilima duplog kwigovodstva, tako i zakonu i from the Supreme Control and Finance Minister. zakonskim propisima”. The Supreme Control recalled that its commission- Ministar finansija Stevan Popovi} uglav- ers had carried out an audit in the Monopoly Direc- nom je ponovio osnovne crte izve{taja Glavne torate in the period from 19 June to 11 July, and it kontrole, ali i podvukao slede}e dve stvari. concluded the following: “An exhaustive audit of all Prvo, da je Glavna kontrola imala i zakonsko the cash holdings in the Government Monopoly pravo, ali i du`nost da proveri poslovawe Directorate, all the books and documents was car- Uprave monopola, budu}i da to odavno nije ried out, and after comparing all the documents ~iweno. Ovim je hteo da odgovori na pitawe da with the cash book and money order book, it was li je Glavna kontrola ba{ morala da proverava established: that all the cash transactions of the finansijsko stawe monopola i izazove nervozu. Government Monopoly Directorate were completely I drugo, da je kontrola pokazala da je u upravi correct; that its accounts were kept up-to-date and monopola ipak bilo malih formalnih, papiro- that its accounting policies were compliant both lo{kih nepravilnosti: glavni kwigovo|a with the double-entry bookkeeping rules and the Milo{ @ivkovi} nije posledwih dana potpi- law and legal regulations”. sao priznanice da je primio novac od nadle- Finance Minister Stevan Popovi} basically reit- `nog ~inovnika, pravdaju}i se da nije stigao jer erated the main findings in the report of the je zamewivao upravnika monopola koji je oti{ao Supreme Control, but underlined the following two na odsustvo; ali, {to je najva`nije, sav novac things. Firstly, the Supreme Control had a statutory bio je na mestu i prokwi`en. Skup{tinski right, as well as a duty, to audit the operation of the poslanici bili su zadovoqni odgovorom. Monopoly Directorate, bearing in mind that the last Tokom 1898. godine odvijala su se tri sudska such audit had been carried out a long while before. procesa ~inovnicima fabrike duvana. [estog In this manner, he wanted to respond to the ques- maja zapo~eto je su|ewe Fadejevu Golumbovskom, tion about whether the Supreme Control really biv{em glavnom kwigovo|i, i Vitalisu \ur- needed to check the financial situation of the kovi}u, biv{em glavnom kontroloru i v.d. monopoly and cause tension. Secondly, the audit did upravniku monopola, zbog pronevere i utaje find some minor formal, paperwork-related, irregu- dr`avnog novca. Male novine su procewivale larities in the Monopoly Directorate: in the days „da je pravi krivac ispu{ten te je pobegao, a immediately preceding the audit Chief Accounting sudska pravda do~epala se jednog ni krivog ni Officer Miloš @ivkovi} had not signed the receipts du`nog ~oveka prosto stoga {to se on u blizini for the money he had received from a responsible na{ao”. Prvostepeni beogradski sud procenio employee, explaining this by the lack of time, since je da su obojica u~estvovali u proneveri i he had acted as a replacement for the Monopoly osudio je \urkovi}a na tri i Golumbovskog na Director who had been on leave; however, and this dve godine zatvora. Apelacioni sud poni{tio was the most important thing, all the money was in je presudu prvostepenog suda, a ovaj je u nastavku its proper place and accounted for. Deputies of the oslobodio Golumbovskog i osudio \urkovi}a na Assembly were satisfied with the reply. dve godine zatvora. In the course of 1898, three trials of tobacco Drugo su|ewe bilo je protiv Todora Lazare- factory employees were in progress. On 6 May, a vi}a, blagajnika radionice cigaret papira, trial began for Fadejev Golumbovski, former Chief

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VLADA VLADANA \OR\EVI]A tako|e zbog utaje dràvnog novca. Prvostepeni Accounting Officer, and Vitalis Ðurkovi}, former sud ga je prvo osudio na ~etiri godine, ali je Chief Controller and acting Monopoly Director, for kasnije smawio kaznu na tri godine, posle embezzlement and misappropriation of public primedaba Kasacionog suda. funds. Lesser Newspaper maintained that “the real Tre}i proces zapo~et je krajem septembra, culprit was let loose, so he escaped, and the court posle godinu i po dana razvla~ewa po novinama, justice grabbed a completely innocent man simply protiv Svetozara Gavrilovi}a, {efa odseka za because he happened to be there.” The first- proizvodwu duvana uprave monopola, i drugih instance Belgrade court ruled that both of them slu`benika uprave, a zbog navodnih zloupotreba were involved in the embezzlement and sentenced tokom otkupa duvana 1895. i 1896. godine u alek- Ðurkovi} to three and Golumbovski to two years in sina~kom @itkovcu. Po lokaciji, afera je nazva- prison. The Court of Appeal quashed the ruling of na ìtkova~kom. I ovde su Male novine imale the first-instance court, and the latter acquitted 156 komentar: „na kurjaka vika, a lisice meso jedu”. Golumbovski and sentenced Ðurkovi} to two years in prison in the resumption of the proceedings. Prodajne cene duvana The second trial was against Todor Lazarevi}, a treasurer of the cigarette paper workshop, also for Tema cene duvana pokrenuta je jo{ po~etkom misappropriation of public funds. A first-instance 1898. godine i nije nestala iz ìè javnosti do court had initially sentenced him to four years, but prole}a 1899. godine. Naime, od posledweg pove- later it commuted the sentence to three years, after }awa cena 1892. godine pro{lo je ve} {est godi- objections put by the Court of Cassation. na i vlada je, budu}i u uobi~ajenoj finansijskoj The third trial was initiated in late September, krizi, poku{avala da na|e nov~ane rezerve i da after a year and a half of dragging through newspa- ih nekako iskoristi. Pove}awe cena duvana pers, against Svetozar Gavrilovi}, Head of the Tobac- svakako je jedna od interesantnih mogu}nosti, co Production Unit in the Monopoly Directorate, ali joj vlada, budu}i da nije ba{ popularna, and other monopoly employees, for alleged fraudu- pribegava tek u krajwoj nu`di, ili kada je pro- lent activities in the course of the tobacco purchase {lo puno vremena od posledweg pove}awa. campaigns in 1895 and 1896 in @itkovac near Plan je sproveden u dva koraka. Prvo je od 8. Aleksinac. The scandal was named the @itkovac januara 1898. godine zapo~eta prodaja novih affair after its location. The comment of Lesser tipova duvana i cigareta najkvalitetnijih vrsta, Newspaper was the same as in the previous case: a sa novim cenama. Tako su, pored srpskog duvana “One does the scathe, and another has the scorn.”156 I klase, koji je do ovog trenutka bio najboqi srpski duvan i ko{tao 20 dinara za kilogram, uvedene dve jo{ boqe vrste: specijalitet i baji- Selling Prices of Tobacco novac, obe po 25 din/kg. Pro{iren je i asorti- The subject of the tobacco price had been raised man srpskih cigareta, ponovo bajinovcem (1 i back in early 1898 and it did not disappear from the 1¼ grama) ~iji je kilogram sada ko{tao 35 dina- focus of the public until the spring of 1899. Namely, ra, dok je do tada kilogram najboqih srpskih six years had already elapsed since the last price cigareta ko{tao samo 25 dinara. I kod turskih increase in 1892 and the government was trying, cigareta do{lo je do promena, mada ne po cenama being in another of its financial crises, to find cash

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VLADAN \OR\EVI]’S GOVERNMENT Gra|anin sa cigarom A town dweller with a cigar ve} po pro{irenom asortimanu veli~ine ciga- reserves and somehow employ them. An increase in reta (od ½, ¾, 1, 1¼ grama). O~ito je da je uprava tobacco prices is certainly one of interesting possibil- monopola poku{ala da kroz poboq{awe asorti- ities, but since it is not very popular, it is the last mana svojih proizvoda pove}a atraktivnost po- resort for governments, or something they do only nude, prodaju i prihod. Dodu{e, bilo je izvesno when a lot of time has elapsed since the last increase. da o velikim finansijskim efektima ne mo`e The plan was carried out in two steps. Firstly, biti re~i, po{to su najkvalitetniji proizvodi new highest-quality types of tobacco and cigarettes predstavqali mali deo ukupne potro{we. were offered for sale as of 8 January 1898, with U leto 1898. godine obnovile su se pri~e o new prices. Thus, in addition to class I Serbian poskupqewu duvana po{to je nacrtom zakona o tobacco, which until that point had been the best buxetu za 1899. godinu predvi|eno pove}awe Serbian tobacco with the price of 20 dinars per

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VLADA VLADANA \OR\EVI]A prihoda od duvanskog monopola, a na 11,4 milio- kilogram, another two kinds were introduced of na dinara. [tavi{e, usvojeni zakon o buxetu dao even higher quality: Special and Bajinovac, both at je ovla{}ewe ministru finansija da se dogovori 25 din/kg. The range of Serbian cigarettes was also sa Samostalnom monopolskom upravom o pove}a- enlarged, again with Bajinovac (1 and 1¼ grams), wu cena duvana i duvanskih prera|evina, {to je for the kilogram of which the price thus was 35 bio jasan znak {ta }e se dogoditi. dinars, while before that the price of a kilogram of Prodajne cene duvana promewene su tek apri- the best Serbian cigarettes was just 25 dinars. la 1899. godine, a izvesno zaka{wewe verovatno je Changes occurred also with respect to Turkish ciga- povezano sa personalnim promenama ujesen 1898. rettes, however not in relation to prices, but to the godine: Vuka{in Petrovi} je zamenio na mestu assortment of cigarette sizes, which was enlarged ministra finansija Stevana Popovi}a, a Milan (of ½, ¾, 1, 1¼ grams). It was obvious that the @ivkovi} Lazara Pa~ua na mestu upravnika mo- Monopoly Directorate was trying to increase the nopola, dodu{e samo kao vr{ilac du`nosti. attractiveness of its offer, its sales and proceeds Uprava monopola nije ovoga puta izvela through an improvement in the range of its prod- obi~no pove}awe cena duvana, ve} je poku{ala da ucts. Admittedly, it was clear that some major ga prikrije jednim trikom: na~inila je reklasi- financial effects could not be expected, since the fikaciju duvana i tome prilagodila cene, tako best-quality products accounted for just a small da je moglo izgledati da poskupqewa i nije bilo, portion of total consumption. pa ~ak i da je do{lo do pojeftiwewa. Pogledajmo In the summer of 1898, the rumors about the primer srpskog duvana, te najva`nije kategorije tobacco price increase were renewed, since the draft (videti slede}u tabelu). budget law for 1899 provided for a rise in the revenue U koloni 1899, nominalno iz prethodne tabe- from the tobacco monopoly to 11.4 million dinars. le prikazan je zvani~an cenovnik: tu se od 1898. Furthermore, the adopted budget law authorized the pojavquje nova kategorija Bajinovac, sa vi{om Minister of Finance to reach agreement with the Autonomous Monopoly Directorate on the increase Cene srpskog duvana, 1892. i 1899. in the prices of tobacco and tobacco products, which Prices of Serbian tobacco, 1892 and 1899 was a clear sign of what was to happen. The selling prices of tobacco were not changed 1899, nominalno 1899, stvarno 1892 before April 1899, and this slight delay was probably 1899, nominal 1899, actual related to the changes of personnel in the autumn of Bajinovac – 25 1898: Vukašin Petrovi} replaced Stevan Popovi} in Bajinovac –25 the office of the Finance Minister, and Milan klasa 20 17,5 25 I @ivkovi} became the new Monopoly Director instead class I 20 17.5 25 of Lazar Pa~u, though only as acting Director. klasa 15 12,5 17,5 II The Monopoly Directorate did not carry out a class II 15 12.5 17.5 normal tobacco price increase this time, but tried III klasa 10 8 12,5 class III 10 8 12.5 to hide it behind a trick: it reclassified tobacco and adjusted the prices to this new classification, so as IV klasa 6 8 class IV 6 8 to make it look as if there had been no price increase, and maybe even as if a certain fall in the

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VLADAN \OR\EVI]’S GOVERNMENT cenom od dotada{we I klase, mada je Bajinovac i prices had occurred. Let us see how it looked, using ranije postojao i bio prodavan pod firmom I Serbian tobacco, that most important category, as klase. I preostalim klasama srpskog duvana (II, an example in the table on the left. III i IV) pove}ana je klasa i one su nazvane I, II i The column 1899, nominal in the previous table III, dok ~etvrte nije vi{e bilo. No, ta ~etvrta je shows an official price list: here a new category i daqe postojala, po{to je onaj lo{ duvan za appeared as of 1899, with a higher price than the lulu, koji je do tada zvan IV klasa, sada imao previous class I, although Bajinovac had existed firmu III klase. before and had been sold as class I tobacco. The Kada se uporede kolone 1892 i 1899, nomi- remaining classes of Serbian tobacco (II, III and IV) nalno izgleda kao da je dodata klasa Bajinovac, sa were also promoted to higher classes, and they were novom i visokom cenom, ali i da je duvan iz osta- marked as I, II and III, while the fourth class no le tri klase pojeftinio. Me|utim, ukoliko upo- longer existed. Yet, that fourth class remained in redimo kolone 1892 i 1899, stvarno, gde je ova existence, since that was bad pipe tobacco, which druga nastala zanemarivawem trika, vidimo da previously had been categorized as class IV, and su svi srpski duvani znatno poskupeli – od 16,7 now it had the marking of class III. do 33,3 procenta prema 1892. godini. If one compares the columns 1892 and 1899, Takav mali trik primewen je i kod drugih nominal, it seems as if the class Bajinovac was duvanskih kategorija, a trebalo je da ublaì added, with a new and high price, but the prices of nepovoqan utisak u javnosti koji je pove}awe the tobacco in other three classes went down. How- cena moralo da izazove, odnosno ~ak da prikrije ever, if we compare the columns 1892 and 1899, poskupqewe. actual, where the latter was created by disregarding Kao {to se vidi, ve}ina duvana je pojeftini- the trick, we can see that the prices of all Serbian la, ukoliko gledamo zvani~ne cenovnike. U tobaccos were significantly raised – by 16.7 to 33.3 stvarnosti, dogodilo se potpuno suprotno. percent, relative to 1892. Promena cena izazvala je i promenu potro- A similar small trick was applied also to other {we pojedinih kategorija duvana. Naime, tobacco categories, and it was aimed at mitigating poskupqewe je bilo neravnomerno i dovelo je do the unfavorable impression in the public, which the znatnog pove}awa cena srpskog duvana, dok price increase was bound to create, i.e. even at con- doma}e cigarete uop{te nisu poskupele. Takva cealing the price increase. promena ne moè a da se ne odrazi na tra`wu i As one can see, most tobacco prices went down, potro{wu. I zaista, poskupqewe iz 1899. godi- according to official price lists. In reality, quite the ne donelo je smawewe prodaje kriànog duvana opposite happened. i pove}awe prodate koli~ine industrijskih The change in the prices led to a change in con- cigareta: U~e{}e kriànog duvana u ukupnoj sumption of individual tobacco categories. Namely, potro{wi svih vrsta duvana smaweno je sa the price increase was uneven and brought about a 94,2% u 1898. na 89,0% u 1900, dok je u~e{}e considerable rise in the prices of Serbian tobacco, cigareta pove}ano sa 2,8 na 7,2% u istim godi- while the prices of domestic cigarettes did not go up nama. Potro{a~i su reagovali kako predvi|a at all. Such a change is bound to affect demand and uobi~ajeni ekonomski rezon, a pitawe je da li je consumption. And indeed, the 1899 price increase uprava monopola ba{ to htela. Tako je zapo~eta resulted in a decline in the sales of cut tobacco and a

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VLADA VLADANA \OR\EVI]A Cene duvana 1892. i 1899. godine rise in the sales of industrial cigarettes: the share of Tobacco prices in 1892 and 1899 cut tobacco in total tobacco consumption was vrsta duvana 1. 5. 1887. 1. 7. 1889. reduced from 94.2 percent in 1898 to 89.0 percent Type of tobacco 1/5/1887 1/7/1889 in 1900, while the share of cigarettes rose from 2.8 DUVAN kg. to 7.2 percent in those same years. Consumers TOBACCO kg reacted in line with the usual economic reasoning, turski specijal 55 55 and the question is whether that was what the Turkish special Monopoly Directorate had actually wanted. Thus, a I 45 40 change in smoking habits was initiated in favor of II 35 30 the industrial cigarette, which was to eventually III 25 bring its domination, though some time later, in the 20th century. srpski Bajinovac 25 Serbian Bajinovac The quantities of tobacco purchased in 1899 and 1900 were usual: 876.3 tonnes in 1899 and 20 17,5 I 17.5 916.9 tonnes in 1900. 12,5 In mid-1900, Serbia participated in the Paris II 15 12.5 World's Fair (Exposition Universelle). One of the III 10 8 rooms in the Serbian pavilion was devoted to the IV 6 production and processing of tobacco in Serbia. CIGARETE 1000 kom. po 1 gr Commercial Herald optimistically reported that CIGARETTES 1000 pc. 1 gram each Turkish the French had expressed great interest in Serbian tobacco, which was “yet another proof of our turske spec. 65 65 Turkish special progress, this time in tobacco manufacture”, but it I 55 50 criticized the label with a Serbian farmer whose head II 45 40 was unnaturally tilted to one side. It further report- srpske Bajinovac ed that the French Monopoly Directorate had decid- Serbian Bajinovac ed, based on excellent ratings Serbian tobacco had I 25 25 received at the exhibition, to buy in Serbia sizeable quantities of various kinds of Serbian tobacco.157 II 20 20 12,5 12,5 Serbian tobacco was exhibited in Western III 12.5 12.5 Europe also later, for example, in London in 1907, at a joint exhibition of the Balkan countries, but without any significant commercial success (picture promena pu{a~kih navika u korist industrij- on page 216). ske cigarete, koja }e tek kasnije u XX veku done- Let us take a closer look at the data for 1900 in ti i wenu dominaciju. the following table. Otkup duvana je u 1899. i 1900. godini bio uo- From the comparison with the same table for bi~ajen: 876,3 tona 1899. i 916,9 tona 1900. godine. 1893, we can see that the administrative changes – Sredinom 1900. godine Srbija je u~estvovala the formation of Niš District, which included the na svetskoj izlo`bi u Parizu. Jedno od odeqewa Aleksinac region – again crucially impacted on the

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VLADAN \OR\EVI]’S GOVERNMENT srpskog paviqona bilo je posve}eno proizvodwi i preradi duvana u Srbiji. Trgovinski glasnik je optimisti~ki javqao da je interes Francuza za srpskim duvanom veliki, {to je „dokaz vi{e kako smo u~inili napredak i u izradi duvana”, ali je kritikovao etiketu sa srpskim seqakom kome je glava neprirodno zaba~ena u stranu. Javqao je i da je, posle odli~nih ocena koje je srpski duvan imao na izlo`bi, francuska monopolska uprava re{ila da kupi u Srbiji ve}e koli~ine raznih vrsta srpskih duvana.157 I kasnije je srpski duvan izlagan u zapadnoj Evropi, kao u Londonu 1907. godine na zajedni~- koj izlo`bi balkanskih zemaqa, ali bez ve}eg komercijalnog uspeha (slika na strani 216). Pogledajmo detaqnije podatke za 1900. godinu (videti slede}u tabelu). Srpski paviqon u Parizu I ovde su, u pore|ewu sa istom tabelom za The Serbian pavilion in Paris 1893. godinu, administrativne promene – stvarawe ni{kog okruga, u koji je u{ao aleksina~ki change in the ranking of the districts. The first in kraj – odlu~uju}e uticale na izmenu redosleda terms of purchase (production) was Niš District, okruga. Prvi po otkupu (proizvodwi) je ni{ki accounting for 56.2 percent of the total purchase in okrug sa u~e{}em od 56,2% u otkupu u celoj Serbia, the second was Kruševac District, with a Srbiji, drugi kru{eva~ki sa 23,5% i tre}i share of 23.5 percent, while Vranje District was vrawski sa 11,0%. third with 11.0 percent. Op{te gledano, podaci iz tabele za 1900. go- Broadly speaking, the data presented in the dinu su uobi~ajene vrednosti za srpski monopol table for 1900 were normal levels for the Serbian duvana krajem XIX veka: prijavqena povr{ina tobacco monopoly in the late 19th century: the ispod dve hiqade hektara, odobrena povr{ina applied for area less than two thousand hectares, iznad hiqadu hektara, otkup malo ispod milion the approved area exceeding a thousand hectares, kilograma, otkupne cene uglavnom ispod jednog the purchased quantity slightly less than a million dinara po kilogramu. kilograms, the purchase prices largely below one Nada uprave monopola da se mo`e zasejati dinar per kilogram. daleko ve}a povr{ina i ostvariti ve}a proiz- The hope of the Monopoly Directorate that it vodwa pri datim otkupnim cenama stalno se was possible to plant a considerably larger area pokazivala nerealnom: seqaci nisu pokazivali and achieve higher production at the given pur- dovoqan interes pri datim cenama, i pored chase prices persistently proved unrealistic: farm- ube|ivawa od strane vlasti da su one vi{e nego u ers did not show enough interest at the given susednim zemqama. Tek }e tokom slede}e decenije prices, despite the argumentation offered by the

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VLADA VLADANA \OR\EVI]A prijavqena odobrena obrano otkup, kg prinos/ha* prose~na otkupna povr{ina, ha povr{ina, ha strukova, 000 cena, din/kg applied for approved area, ha harvested stems, purchase, kg yield/ha* Average purchase area, ha in 000 price, din/kg Vrawski 171,2 134,0 5291 100712 751,6 0,82 Vranje 171.2 134.0 5291 100712 751.6 0.82 Krajinski 42,3 41,6 1515 22027 529,5 0,94 T. Krajina 42.3 41.6 1515 22027 529.5 0.94 Kru{eva~ki 331,8 297,7 13219 215491 723,9 0,88 Kruševac 331,8 297,7 13219 215491 723,9 0,88 Ni{ki 1052,1 790,6 44496 515056 651,5 0,79 Ni{ 1052,1 790,6 44496 515056 651,5 0,79 U`i~ki 132,5 91,8 2975 63572 692,5 1,05 U`ice 132,5 91,8 2975 63572 692,5 1,05 UKUPNO 1729,9 1355,6 67496 916858 676,3 0,83 TOTAL 1729,9 1355,6 67496 916858 676,3 0,83

Izvor: Statisti~ki godi{wak 1900, 1904 Source: Statistical Yearbook 1900, 1904 * Napomena: prinos je samo aproksimativan, jer je dobijen * Note: the yield per hectare is just approximate, because it was iz odnosa koli~ine otkupqenog duvana i zasejane derived from the ratio between the quantity of purchased povr{ine. tobacco and the planted area.

do}i do pove}awa i otkupnih cena i proizvodwe government that these prices were higher than in duvana. Tako je prose~na otkupna cena za celu neighboring countries. Both the purchase prices Srbiju bila 1,04 din/kg 1903. i 1,11 din/kg u and tobacco production were to rise only in the 1907. godini, a otkupqena proizvodwa 1.029 tona course of the next decade. Thus, the average pur- i 1.207 tona u istim godinama. chase price at the level of Serbia was 1.04 din/kg in 1903, and 1.11 din/kg in 1907, while the purchased quantities of tobacco amounted to 1,029 tonnes and 1,207 tonnes in those same years.

215

VLADAN \OR\EVI]’S GOVERNMENT Izlo`ba srpskog duvana u Londonu The exhibition of Serbian tobacco in London

216

VLADA VLADANA \OR\EVI]A Kvalitet duvana

TOBACCO QUALITY

ezadovoqstvo pogor{awem kvaliteta doma- he dissatisfaction with the deterioration of the N}eg duvana bilo je vrlo ra{ireno, kako smo Tquality of domestic tobacco was very wide- napred vi{e puta naveli. Krivac se obi~no spread, as mentioned previously several times. The nalazio u upravi monopola, a glavni dokaz bilo culprit was usually found in the Monopoly Direc- je pore|ewe kvaliteta duvana od pre i posle torate, and the compelling piece of evidence was a uvo|ewa monopola u Srbiji: ono je uvek davalo comparison of the tobacco quality before and after prednost ranijem vremenu. the introduction of the monopoly in Serbia: it was Pogledajmo osnovne uzroke slabijeg kvali- always in favor of the pre-monopoly period. teta srpskog duvana, prema Ninku Jovanovi}u, Let us look at the main reasons, according to „{efu za proizvodwu duvana” uprave monopola sa Ninko Jovanovi}, Head for Tobacco Production at po~etka XX veka, od kojih glavnina pripada the Monopoly Directorate in the early 20th century, procesu proizvodwe duvana i predstavqa gre{ke for the lower quality of Serbian tobacco, of which 158 monopolske uprave. the bulk was related to the tobacco manufacturing Prvo, pogre{no zemqi{te za dobro seme. Jo{ process and constituted mistakes of the Monopoly od kneza Mihaila, a posebno pod monopolom Directorate.158 duvana, dr`ava je svake godine besplatno delila Firstly, wrong soil for good seed. Ever since Prince seqacima kvalitetno seme, obi~no nabavqeno iz Mihailo’s reign, and in particular under the tobacco dobrih turskih duvanskih krajeva. Ali, uvek se monopoly, the state had distributed good quality seed dobijalo „ne{to drugo”, tj. list duvana uzgojenog to farmers free of charge every year, usually procured u Srbiji nije li~io na onaj turski ~ije je seme from good Turkish tobacco growing regions. But the upotrebqeno. To dobro seme je, me|utim, ~esto outcome was usually “something else”, that is, a leaf of sa|eno na zemqi{tu koje nije odgovaraju}e, jer tobacco grown in Serbia did not resemble the Turkish se, po pogre{noj i tada preovla|uju}oj teoriji, tobacco whose seed was used. That good seed, howev- koristila plodna, bujna zemqa, dok je za turske er, was often sown on soil which was not suitable. duvane najpogodnije tzv. vinogradsko zemqi{te – According to a wrong, but in those days prevailing, kr{evito i peskovito, okrenuto ka jugu. theory, fertile, rich soil was used, while the most suit- Drugo, orijentacija na pogre{no li{}e. Pre able type of soil for Turkish tobaccos is the so-called pojave monopola, u Srbiji se gajilo fino, malo viticultural soil – rocky and sandy, facing the south.

217 Unutrašwost magacina u Vrawu The interior of the tobacco warehouse in Vranje

li{}e kvalitetnijeg duvana, po tipu isto kao Secondly, the orientation toward wrong leaves. {to je li{}e iz Turske, a proizvo|a~i nisu Before the monopoly, fine, small leaves of better ogrtali struk i rano zalamali li{}e, ve} su quality tobacco were grown in Serbia, of the same dozvoqavali da ga na stabqici bude puno po broju type as leaves from Turkey, and producers were not i da bude sitno (zakr`qalo, ali fino). Takvu covering and trimming the plant early, but were orijentaciju traìli su trgovci duvanom i boqe allowing many leaves to grow on the stem, which pla}ali sitno li{}e, ali koje ima prijatan ukus were small (stunted but fine). Such orientation was i dobro sagoreva, nego krupno. Monopolska uprava sought by tobacco merchants and they were paying je, zbog nestru~nosti, krenula potpuno suprot- more for small leaves, which had a pleasant taste nim putem: traìla je „najja~e, najteè i najmr- and burnt well, than for the large ones. The Monop- snije listove”, ali koji su „quti, opori, debeli i oly Directorate, due to lack of expertise, embarked te{ko sagorqivi, {to su samo r|ave osobine du- upon a completely different track: it sought “the vanskog li{}a”. Naredba seqacima bila je da strongest, heaviest and most succulent leaves”, but {to ranije zalamaju li{}e, {to vodi smawewu which were “hot, sharp-tasting, thick and slow- broja listova, ali i pove}awu svakog od wih. burning, these being only bad properties of tobacco „Ako bi se koji drznuo da ne poslu{a te ostavi leaves”. Farmers were ordered to trim the plants as

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KVALITET DUVANA vi{e listova, on pri otkupu donese duvan sa ta- early as possible, which resulted in a smaller num- kvim listom i otkupna komisija kazni ga time ber of leaves, but a larger size of individual leaves. {to mu duvan oceni za IV klasu ili za {kart. U I “If a farmer dared not listen and leave more leaves, i II klasu cenile su otkupne komisije samo he would bring tobacco with such leaf for purchase mrsne i debele listove, a tanke – fine listove u and the purchase board would punish him by classi- III, IV klasu, pa i {kart”. Proizvo|a~i su sva- fying his tobacco as class IV or discard. The pur- kako morali da se prilago|avaju politici upra- chase boards assessed as classes I and II only succu- ve monopola, pa su napustili staru, dobru praksu lent and thick leaves, while light – fine leaves they gajewa sitnih i finih listova i okrenuli se categorized as class III, IV or even discard”. Produc- krupnim i lo{im, a na {tetu kvaliteta duvana i ers definitely had to follow the policy of the Monop- pu{a~a. Da je orijentacija pogre{na pokazivalo oly Directorate, so they abandoned the good old se pri izvozu: strani trgovci duvanom umeli su practice of growing smaller and finer leaves and da reklasifikuju na{e duvane, pa su prebacivali turned to large and poor quality ones, at the one iz ~etvrte u prvu kategoriju i obrnuto. expense of the quality of tobacco and smokers. And Tre}e, pogre{no vlaèwe duvana; mnogi pro- exports were showing just how wrong the orienta- izvo|a~i gre{ili su kod ve{ta~kog vlaèwa tion was: foreign tobacco merchants knew how to duvana pre kalupqewa. Naime, u èqi da skrate reclassify Serbian tobaccos, so they moved those proces dostizawa potrebne vla`nosti pred kalu- from class IV into class I and vice versa. pqewe, oni bi ga ve{ta~ki vlaìli spu{taju}i Thirdly, wrong moistening of tobacco; many pro- ga u vla`ne podrume, iznose}i ga na rosu, paru ducers were making a mistake when they artificially ili u vla`ne staje i sli~no, {to je ~esto bilo moistened tobacco before pressing it. Namely, in a pogubno za kvalitet i vodilo propadawu duvana. desire to shorten the process of reaching the Prema Jovanovi}u, uprava monopola, a sa required degree of moisture before pressing, they wom i seqaci, teìla je „da se od duvana dobije artificially moistened tobacco by putting it into {to ve}a koli~ina, bez obzira na kakvo}u lista”, damp underground cellars, exposing it to dew, zanemaruju}i to {to „nas ukus pu{a~a tra`wom steam or taking it to damp stables, and the like, blagog i miri{qavog duvana goni da vi{e vodimo which often had disastrous effects on the quality ra~una o kakvo}i no o koli~ini”. and resulted in the decaying of tobacco. [ef proizvodwe duvana u upravi monopola According to Jovanovi}, the Monopoly Direc- po~etkom 1890-tih godina Svetozar Gavrilovi}, torate, and also farmers, endeavored to “get as much ve} pomenut u vezi @itkova~ke afere, pisao je tobacco as possible, irrespective of the quality of ranije, 1892. godine, o jo{ jednom ~iniocu slabi- leaves”, disregarding the fact that “the smokers’ jeg kvaliteta duvana – lo{em su{ewu. Naime, u taste forces us, through demand for mild and fine- Srbiji je bio ra{iren metod su{ewa na suncu, smelling tobacco, to pay more attention to the qual- koji je „najgori i najprostiji na~in su{ewa ity than to the quantity.” duvana. On je u nas u obi~aju”. A lo{ je kako zbog The Head for Tobacco Production in the Monop- ège i jare, koje donose naglo su{ewe duvana dok oly Directorate in the early 1890s, Svetozar je boqe postepeno, tako i zbog ki{e i rose, koji Gavrilovi}, already mentioned in connection with the dodaju nepotrebnu vlagu, pa i prouzrokuju bu|awe. @itkovac affair, had written before, in 1892, about Tu su i ne~isto}e raznih vrsta, koje se kod su{ewa another factor contributing to the poor quality of

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TOBACCO QUALITY na otvorenom lako vezuju za duvan. Sam je prepo- tobacco – inadequate curing methods. Namely, sun ru~ivao su{nice, odnosno su{ewe na pokrive- curing was a widespread method in Serbia, which “is nom, promajnom mestu. the worst and the simplest method of curing tobacco. Deo razloga slabijeg kvaliteta duvana i It is customary in our country.” It is bad for two rea- prera|evina svakako leì u gre{kama proizvo- sons – scorching heat and hot air, which dry tobacco |a~a tokom gajewa duvana (rasa|ivawe, setva, rapidly, whereas it is better to dry it gradually, as one nega, berba, su{ewe, kalupqewe), ali se i ovde reason, and rain and dew, which add unnecessary moè na}i odgovornost monopola. Naime, moisture and thus cause molding, as the other. There mnogi seqaci jesu bili nepismeni i zato nisu are also impurities of various kinds, which easily stick mogli da iz Zakona o monopolu duvana i stru~ne to tobacco if it is cured in the open air. His recom- literature izvuku stru~ne pouke za svoj rad. No, mendation was to use curing sheds, that is, to cure time je odgovornost uprave monopola i wene tobacco in a covered, drafty place. nadzorne slu`be bila ve}a, po{to je woj zakono- Part of the reason for the inferior quality of davac poverio savetodavnu ulogu u gajewu duva- tobacco and tobacco products certainly lies in mis- na. Ali, kako re~e pisac iz Trgovinskog glasni- takes made by producers in the cultivation of tobac- ka, nivo slu`be bio je nizak, a tek poneki „rev- co (seeding, transplanting, crop management, har- nosni i savesni podnadzornik obi|e svoj reon vesting, curing, pressing), but here, too, one can te{ko i jednom mese~no i letimi~no”, a treba- find the responsibility of the Monopoly Directorate. lo bi da uzgajiva~ima daju savete o svakom od Namely, many farmers were illiterate, and therefore brojnih postupaka. Sli~no tome, ni monopolske could not make use of professional tips for their komisije za otkup nisu uìvale poverewe: „sad work contained in the Tobacco Monopoly Law and je ve} stvar dotle do{la da se ne veruje u technical literature. That made the responsibility of po{tewe nijednog ~lana tih otkupnih komisija the Monopoly Directorate and its supervisory serv- i treba}e izmeniti celu sistemu otkupa, pa da ice even greater, since they were entrusted by the se povrati autoritet tih komisija i stvori vera law-makers with the advisory role in tobacco grow- kod proizvo|a~a u wino po{tewe”. Zbog tog ing. But, as the author from Commercial Herald nepoverewe u nepristrasnost rada komisija said, the level of professional competence in the „kod proizvo|a~a je prodrlo uverewe da ne treba service was low, and just few “deputy supervisors, ulagati ve}i trud u negovawe duvana, su{ewe i who were industrious and conscientious, inspected sortirawe, jer se komisija slabo na to obazire”. their zones of responsibility maybe once a month Deo razloga svakako se nalazio i u propu- and just superficially at that”, and they were sup- stima dràvnih magacina i fabrike duvana u posed to give advice to the growers on each of the Beogradu tokom fermentacije, prerade i skladi- numerous procedures. Similarly, the monopoly pur- {tewa. Tako se u 1893. godini govorilo za srpski chase boards did not enjoy any trust, either: “the duvan da mu ne samo kvalitet jako varira, ve} i things have now gone so far that there is no confi- da je uglavnom lo{: „~as dobijemo boqi, ~as dence in the integrity of any member of these pur- lo{iji duvan, ~as sitan i suv kao barut, ~as chase boards, and restoring the authority of these vlaàn. To vam je kako sa najboqim, tako i sa naj- boards and building confidence in their honesty gorim. Izra|ene cigarete ve} su ispod svake with the producers would require a complete over- kritike, tvrde, suve, izra|ene bez ikakove haul of the entire purchase system”. Due to that

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KVALITET DUVANA Sušewe duvana u selu Sodercu Tobacco curing in the village of Soderac

pa`we, gotovo su neupotrebqive. ^ak i one naj- mistrust of the impartiality in the work of the boqe nisu nikakve izrade”. boards “a belief was created among the producers Trgovinski glasnik, koji je ina~e bio dosta that one should not invest a lot of effort into the kriti~an prema kvalitetu duvana u Srbiji i cultivation of tobacco, its curing and sorting, monopolu uop{te, umeo je da nijansira kritiku because the board pays very little attention to that”. i tvrdi da je, i pored svega, doma}i duvan dosta Part of the reason certainly was in the mistakes do bar i boqi od svih susednih osim izvesnih made by the government warehouses and the tobac- turskih, zna~i boqi je od doma}ih duvana u co factory in Belgrade during the fermentation, pro- „Rumuniji, Ma|arskoj, Bugarskoj, Gr~koj”, ali i cessing and storing. Thus, in 1893, it was said of Italiji, Francuskoj ili Rusiji. A znatnu kri- Serbian tobacco that not only was its quality greatly ti~nost i svoju i pu{a~a prema doma}em duva- oscillating, but it was also generally bad: “we get nu delimi~no je obja{wavao na~inom na koji se better and worse tobacco by turns, once it is tiny kod nas pu{i – orijentalno, uvla~ewem duvan- and dry as gunpowder, once soggy. This equally skog dima – pa se stoga lak{e i boqe ose}aju i applies to the best tobacco and to the worst. As for dobre i lo{e osobine duvana.159 the manufactured cigarettes, they are beyond

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TOBACCO QUALITY words, hard, dry, manufactured without any atten- tiveness, almost unfit for use. Even the best ones are of poor workmanship”. Commercial Herald, which was generally quite critical of the tobacco quality in Serbia and the monopoly as a whole, was able to nuance the criticism and it claimed that, in spite of everything, domestic tobacco was fairly good and better than all neighboring tobaccos, with the exception of certain Turkish kinds, meaning that it was better than domestic tobaccos in “Romania, Hungary, Bulgaria, Greece”, as well as Italy, France or Russia. And it found part of the explanation for the fairly strong criticism of domestic tobacco, coming from it and from smokers alike, in the way in which people smoke in our country – in the oriental style, by inhal- ing tobacco smoke – which makes it easier to better sense both good and bad properties of tobacco.159

222

KVALITET DUVANA Vi{kovi, mawkovi i spoqna trgovina

SURPLUSES, DEFICITS AND FOREIGN TRADE

prava monopola vodila je politiku odobra- he Monopoly Directorate’s policy for authoriz- Uvawa sejawa i proizvodwe duvana na osnovu Ting the planting and production of tobacco was slede}ih ~inilaca: based on the following factors: • procene potreba fabrike duvana, odnosno • estimates of the needs of the tobacco factory, potro{we duvana i duvanskih prera|evina u that is, assumptions on tobacco and tobacco slede}oj godini, product consumption in the coming year, • normalne, o~ekivane proizvodwe duvana i • normal, expected tobacco production, and • postoje}ih rezervi duvana u magacinima • existing tobacco reserves in the warehouses of uprave. the Directorate. Naoko, ra~un je jednostavan, ali postoje neiz- At face value, it is a simple calculation, but vesnosti koje mogu da ga pokvare. Prva, i mawa, je there are uncertainties which can thwart it. The ona o potro{wi, po{to mo`e da varira iz godine first, and less uncertain one, is the uncertainty sur- u godinu. Ipak, legalna potro{wa duvana u Srbi- rounding consumption, since it can vary from year ji bila je u osnovi lako predvidqiva tokom to year. Still, legal tobacco consumption in Serbia posledwe decenije XIX veka i prve decenije XX was essentially very predictable during the last veka, jer je uglavnom bila stagnantna. U slede}oj decade of the 19th century and the first decade of tabeli vidimo da se potro{wa duvana i prera|e- the 20th century, because it was largely stagnant. vina posmatranih godina kretala izme|u 820 i The following table shows that the consumption of 910 tona, sa prosekom od 858 tona. tobacco and tobacco products ranged between 820 Zanimqivo je da je ukupna potro{wa reali- and 910 tonnes in the observed years, with the aver- zovana preko uprave monopola stagnirala, i age being 858 tonnes. pored rasta broja stanovnika u Srbiji. To je It is interesting that total consumption realized zna~ilo ili smawewe potro{we duvana po through the Monopoly Directorate stagnated jednom stanovniku sa 379 grama u 1893. na 341 despite population growth in Serbia. It meant gram u 1900. godini, ili pove}awe ilegalne po- either a drop in per capita tobacco consumption tro{we, one koja zaobilazi monopolsku upravu. from 379 grams in 1893 to 341 grams in 1900, or a Va`niji izvor nesigurnosti u politici mo- rise in illegal consumption, which circumvented nopolske uprave nalazio se u prinosima duvana, the Monopoly Directorate.

223 odnosno u kretawu ukupne proizvodwe. Naime, A more important source of uncertainty in the monopolski zakon davao je vladi, odnosno upravi Monopoly Directorate’s policy was related to the monopola kontrolu nad bitnim elementima tobacco yields, i.e. the movements in total produc- duvanskog posla – nad otkupnim cenama i, deli- tion. Namely, the monopoly law gave the govern- mi~no, nad povr{inom koja }e biti zasejana, ment, that is, the Monopoly Directorate, control odnosno brojem strukova, {to je oboje unapred over essential elements of the tobacco business – odre|ivano od strane dràve. over the purchase prices and, in part, over the area Ipak, dve varijable koje su va`ne za obim which was to be planted, i.e. the number of plants, proizvodwe nisu bile pod dràvnom kontrolom. since these two factors were pre-determined by the Prva je prinos duvana po hektaru, koji je zavisio government. kako od prirodnih prilika i neprilika, tako i Yet, two variables of relevance to the output vol- od truda i ve{tine proizvo|a~a, pa je tako bio ume were not under government control. The first neizvestan. Druga je interes seqaka, koji moè one was the yield of tobacco per hectare, which biti nizak ukoliko nisu zadovoqni cenama, pa depended both on weather conditions, good or bad, stoga obra|ena povr{ina moè biti mawa nego and on the efforts and skills of producers – hence, it {to to èli uprava monopola. was uncertain. The second one was the interest on Sa druge strane, dràva je bila obavezna da the part of farmers, which was low when they were otkupi celokupnu legalnu proizvodwu duvana, not satisfied with the prices, and therefore the culti- odnosno proizvodwu duvana sa odobrene povr{i- vated area was smaller than what the Monopoly ne i sa odobrenih strukova, a bez obzira da li joj Directorate had had in mind. je tolika koli~ina potrebna ili ne. Naime, u On the other hand, the government was obliged nekim godinama je prinos bio odli~an, preko to purchase total legal tobacco output, i.e. the o~ekivawa, a dràva je morala da otkupi ceo tobacco production from the approved area and rod, bez obzira na to {to joj je za teku}u potro- from the approved plants, irrespective of whether it {wu trebalo mawe duvana. Ta obaveza dràve needed that much or not. There were years when bila je prirodna i neminovna u sistemu u kome the yield was excellent, exceeding expectations, and ona odre|uje i cene i zasa|enu povr{inu i pred- the government had to purchase the entire crop, stavqa jedinog legalnog kupca. Kada te obaveze regardless of the fact that it needed less tobacco for ne bi bilo, te{ko da bi iko sadio duvan, a usled current consumption. That obligation of the state realne mogu}nosti da jedini kupac ne otkupi was natural and inevitable in a system in which it wegov rod. Pojavi vi{kova duvana povremeno je was setting both the prices and the area for plant- doprinosio i drugi ~inilac – politi~ki ing, and was the only legal buyer. If it had not been pritisak na upravu monopola da omogu}i sadwu for that obligation, hardly anyone would have na ve}oj povr{ini nego {to je bilo potrebno (na grown tobacco, because of a realistic possibility that primer, u 1889. godini). the only buyer might not be willing to purchase his Kada proizvodwa duvana u Srbiji podbaci, crop. There was also another factor which con- problem je lako re{iv jer se uveze pove}ana koli- tributed to occasional tobacco surpluses – political ~ina duvana iz Turske, odnosno Makedonije. Ve}a pressure on the Monopoly Directorate to allow muka nastaje kada se nagomilaju vi{kovi u doma- planting on an area which was larger than needed }im duvanskim magacinima, po{to isti na~in (for example in 1889).

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VI[KOVI, MAWKOVI I SPOQNA TRGOVINA re{avawa problema – izvoz duvana, ovoga puta – ne When tobacco production in Serbia failed, the funkcioni{e jednako efikasno. Naime, uprava problem was easy to solve, by importing a larger monopola nije bila dobar trgovac i nije uspevala than usual quantity of tobacco from Turkey or da vi{kove doma}eg duvana plasira na inostrana Macedonia. It was more problematic when surplus- trì{ta. Pogledajmo prvo podatke o spoqnoj trgo- es were piled up in domestic tobacco warehouses, vini duvanom i duvanskim prera|evinama u since the same type of solution to the problem – slede}oj tabeli. only this time it would be tobacco exporting – did Uvoz duvana i prera|evina postoji i znatan je not work equally efficiently. Namely, the Monopoly i pojedinih godina prevazilazi maksimum od Directorate was not a good merchant and did not 10% ukupne potro{we u Srbiji propisan Zako- manage to sell excess domestic tobacco on foreign nom o monopolu duvana, ali to, izgleda, nikoga markets. Let us look first at the figures on foreign nije previ{e brinulo. Me|utim, izvoz duvana je trade in tobacco and tobacco products in the follow- gotovo nepostoje}i, i pored potrebe proistekle ing table. iz dva razloga: vi{kova duvana, koji su se povre- Tobacco and tobacco products were imported meno pojavqivali, i mogu}nosti da se doma}a and the imports were considerable, in certain years proizvodwa bitno pove}a ukoliko se na|u nova even exceeding the maximum of 10 percent of total trì{ta za srpski duvan. consumption in Serbia defined by the Law on the Srpska dràva, oli~ena u monopolskoj upra- Tobacco Monopoly, but it did not seem to bother vi, nije uspevala, a ni mnogo poku{avala da pro- anybody. However, tobacco exports were almost da duvan na evropskim trì{tima, ~ak ni onda non-existent, despite the need arising from two rea- kada su trì{ne prilike bile povoqne. Uzrok sons: tobacco surpluses, which were run from time tome je ~iwenica da uprava monopola nije bila to time, and the possibility to substantially increase pravi trgovac duvanom, ve} fiskalno orijenti- domestic production in case of entry of Serbian sana institucija, sa svim vrlinama, ali i mana- tobacco into new markets. ma takve politike. Tada{wa izvozna trgovina The Serbian state, represented by the Monopoly duvanom bila je vrlo kompleksna disciplina Directorate, was unsuccessful in selling tobacco on kojoj firma mora da bude potpuno posve}ena i European markets – though one could not say that vrlo stru~na da bi bila u stawu da se takmi~i na it was trying very hard – even in times when market konkurentskom evropskom trì{tu. conditions were favorable. The reason was that the Pored nekomercijalnog karaktera monopolske Monopoly Directorate was not a real tobacco mer- uprave, tri osnovne prepreke ve}em izvozu bile su, chant, but a fiscally oriented institution with all the prvo, nepoznatnost srpskog duvana na evropskom virtues and flaws of such a policy. The then foreign trì{tu, drugo, neume{nost monopolske uprave u trade in tobacco was a very complex discipline klasirawu i pakovawu duvana prema evropskim which required all the resources of a firm and a lot standardima i tre}e i najva`nije, nedovoqan of expertise in order for it to be able to participate in kvalitet srpskih prera|evina: u inostranstvu se the competitive European market. „tro{i samo ono {to je boqe; i tako, po{to na{ In addition to the non-commercial character of duvan slabo ima ~ega dobrog, hr|avo prolazi”. A the Monopoly Directorate, there were three main za{to je duvan lo{? Zbog monopola. „Kad monopo- obstacles to higher exports, of which the first one la nije bilo i kad se na{ duvan u inostranstvo was lack of information about Serbian tobacco on

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SURPLUSES, DEFICITS AND FOREIGN TRADE Spoqna trgovina, proizvodwa, potro{wa i zasejana povr{ina Foreign trade, production, consumption and planted area

Uvoz, tona Izvoz, tona Otkup, tona Potro{wa, tona Zasejana (=proizvodwa) povr{ina, ha Imports, in tonnes Exports, in tonnes Purchase, in tonnes Consumption, Planted area, ha (= production) in tonnes 181,5 0,6 865,7 837,5 1342,5 1889 181.5 0.6 865.7 837.5 1342.5 85,7 0,2 547,8 792,5 1533,1 1890 85.7 0.2 547.8 792.5 1533.1 64,6 3,7 913,1 885,8 1755,3 1891 64.6 3.7 913.1 885.8 1755.3 298,4 0,7 784,1 862,4 1156,6 1892 298.4 0.7 784.1 862.4 1156.6 176,5 3,7 903,2 852,3 1111,7 1893 176.5 3.7 903.2 852.3 1111.7 121,0 – 696,8 842,6 1397,0 1894 121.0 – 696.8 842.6 1397.0 160,8 – 775,3 840,3 1421,0 1895 160.8 – 775.3 840.3 1421.0 249,5 2,2 932,9 880,6 1051,4 1896 249.5 2.2 932.9 880.6 1051.4 49,6 0,7 844,2 868,6 1020,2 1897 49.6 0.7 844.2 868.6 1020.2 27,2 0,0 1280,2 909,6 1691,0 1898 27.2 0.0 1280.2 909.6 1691.0 135,8 0,9 876,3 821,0 1456,5 1899 135.8 0.9 876.3 821.0 1456.5 22,5 1,5 916,9 851,3 1355,6 1900 22.5 1.5 916.9 851.3 1355.6

Izvori: za godine 1893–1900, Statisti~ki godi{wak Sources: For 1893–1900, Statistical Yearbook of the kraqevine Srbije 1900, Kingdom of Serbia 1900; Za ranije godine: uvoz i izvoz Statisti~ki godi{wak For earlier years: imports and exports Statistical Yearbook kraqevine Srbije 1900, proizvodwa i potro{wa Trgovin- of the Kingdom of Serbia 1900, production and ski glasnik, 11. 11. 1897. consumption Commercial Herald, 11/11/1897, Zasejana povr{ina: za sve godine V. Miloshevich – Les Planted area: for all years V. Miloshevich – Les Monopoles Monopoles Yougo-Slav, Paris, 1923 (prema izve{tajima Yougo-Slav, Paris, 1923 (according to the reports by the Samostalne monopolske uprave) Autonomous Monopoly Directorate)

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VI[KOVI, MAWKOVI I SPOQNA TRGOVINA izvozio, kako to da onda nije bilo r|avog duvana?… the European markets, the second one lack of skills 160 Ali, onda nije bilo zakona o monopolu”. on the part of the Monopoly Directorate for classifi- Pove}awe potro{we duvana u Evropi u drugoj cation and packaging of tobacco pursuant to Euro- polovinu XIX veka pove}alo je tra`wu za tur- pean standards and the third, most important one, skim i makedonskim duvanima, a zatim i gr~kim the inferior quality of Serbian tobacco products: in i bugarskim. Srbija nije u~estvovala u tom pro- foreign countries “only the good stuff is consumed; cesu, ve} je smawena i ona skromna koli~ina koja and so, since our tobacco hardly has anything good je izvoèna tokom 1860-tih i 1870-tih godina. A in it, it fares badly”. And why was tobacco bad? kada je jedan duvan nepoznat na trì{tu, onda Because of the monopoly. “How can one explain nije mogu} ili nije lak wegov izvoz u trenutku that there was no bad tobacco when there was no kada je to potrebno. Prosto, da bi prodaja duvana monopoly and when our tobacco was exported to na inostranijm trì{tima bila mogu}a potreb- foreign countries?… But, in those days, there was no je da bude stalna, i to ve}im delom usmerena no monopoly law”.160 prema poznatim i stalnim kupcima, a ne povre- The increase in tobacco consumption in mena, samo sa vi{kovima, kako bi i kada to odgo- Europe in the second half of the 19th century varalo srpskoj monopolskoj upravi. boosted the demand for Turkish and Macedonian U tada{woj duvanskoj trgovini bilo je va`no tobaccos, followed by Greek and Bulgarian tobac- ume}e spremawa robe za trì{te, odnosno bilo co. Serbia did not participate in that process; je va`no dati duvanu oblik i pakovawe kakvo instead, even that modest quantity which had been kupac èli. To monopolska uprava nikako nije exported in the 1860s and 1870s was reduced. And umela. Umesto da na vaqan na~in klasira duvan when a tobacco is unknown on the market, then its prema vrsti, veli~ini lista i kvalitetu i da ga exports are not possible or not easily carried out zapakuje na potreban na~in, uprava monopola je when necessary. Simply, in order to make sales of poku{avala da proda duvan uglavnom klasiran i tobacco on foreign markets possible, one should zapakovan onako kako su to ~inili ne previ{e have made them continuous, and directed mostly ve{ti srpski seqaci, a uprava primala radi toward known and regular customers, rather than doma}e potro{we. Drugim re~ima, uprava je occasional, that is, only when there were surpluses gledala kroz prste doma}im proizvo|a~ima or on terms and at times which suited the Serbian kada su klasirawe i pakovawe bili u pitawu, ali Monopoly Directorate. to nije prolazilo na zahtevnom evropskom trì- In the tobacco trade then, it was important to {tu duvana. Neki trgovac Kon dogovorio je sa know how to prepare the goods for the market, i.e. upravom monopola izvoz duvana u Nema~ku, ali it was important to follow customer’s wishes se odmah pojavio sa zahtevima o druga~ijem paku- regarding the form and packaging of tobacco. That 161 ovawu duvana i druga~ijoj izradi cigareta. was something the Monopoly Directorate simply Poznat nam je jedan slu~aj ve}eg izvoza iz prve could not do. Instead of classifying tobacco in a decenije XX veka, u vreme dok je ministar finan- proper manner, according to its type, leaf size and sija bio Lazar Pa~u, biv{i dugogodi{wi uprav- quality, and appropriately packing it, the Monopoly nik monopola. Monopolska uprava je do tada nago- Directorate was trying to sell tobacco which had milala znatne vi{kove duvana u svojim magacini- been classified and packed by not too skillful Ser- ma i re{ila je da ih proda na evropskom bian farmers, in the only way they knew how, and

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SURPLUSES, DEFICITS AND FOREIGN TRADE Bilans Uprave monopola A Monopoly Directorate's Balance Sheet trì{tu. Nudila ga je mnogima po povoqnim delivered to the Directorate for domestic consump- uslovima, pa i austrijskom monopolu, ali bez tion. In other words, the Directorate was turning a uspeha. Na kraju se obratila solunskim trgovci- blind eye to the manner in which domestic produc- ma bra}i Alatini, sa kojima je i ranije radila ers categorized and packed tobacco, but this could na uvozu kavalskog duvana u Srbiju. Sporazum je not work for the demanding European tobacco postignut, a na slede}oj osnovi: monopolska market. A merchant named Kon made an arrange- uprava ne}e nikome drugome svoje vi{kove pro- ment with the Monopoly Directorate to export davati nego bra}i Alatini, a oni su se obavezali tobacco to Germany, but he immediately put for- da }e otkupiti sav vi{ak po ceni 10% vi{oj od ward requests for different packaging of tobacco cene ko{tawa; klasirawe duvana }e obaviti and different manufacturing of cigarettes.161 stru~waci firme bra}a Alatini. Na ovoj osnovi According to the available information, there uprava monopola se re{ila vi{kova, a austrij- was one case of large-scale exports in the first ski monopol je kupio sav lepo klasiran i pogod- decade of the 20th century, during former long- no zapakovan srpski duvan od firme Alatini, standing Monopoly Director Lazar Paèu’s term as dodu{e pod firmom makedonskog duvana. Tada se the Finance Minister. The Monopoly Directorate definitivno potvrdilo da uprava monopola had accumulated considerable tobacco surpluses in nije dobar trgovac, po{to joj je preko potrebna its warehouse, and it decided to sell them on the pomo} pravih trgovaca. European market. It offered it to many on favorable Zbog nemogu}nosti da kroz spoqnu trgovinu terms, even the Austrian monopoly, but without re{i problem vi{kova duvana, monopolska success. In the end, it turned to merchants from uprava je imala drugu politiku: gledala je da Salonika, the Alatini brothers, with whom it had niveli{e vi{kove i mawkove proizvodwe u poje- worked before on the imports of Kaválla tobacco to dinim godinama kroz rezerve, pa bi vi{kovi Serbia. An agreement was reached on the following duvana iz neobi~no dobre godine bili ~uvani i terms: the Monopoly Directorate was to sell its sur- tro{eni za godinu ili nekoliko godina u vreme pluses solely and exclusively to the Alatini brothers, kada proizvodwa podbaci. Problem sa ovakvom while they undertook to buy all the surpluses at a orijentacijom je {to ko{ta: potrebno je poneka- price higher than the cost price by 10 percent; the da godinama dràti na lageru zamrznuti kapital classification of tobacco was to be performed by u obliku duvana, potrebno je imati dodatne maga- experts of the Alatini brothers’ firm. This is how the cine za sme{taj vi{kova, kao i dodatne slu`be- Monopoly Directorate got rid of surpluses, and the nike koji }e ih opsluìvati. Austrian monopoly bought all nicely classified and Iako ne rapolaèmo podacima o kretawu appropriately packed Serbian tobacco from the firm rezervi, ipak moèmo da, na osnovu posrednih Alatini, though under the name of Macedonian pokazateqa, uo~imo wihove tendencije. Po~et- tobacco. This definitely confirmed that the Monop- kom 1890-tih godina stvorene su odre|ene zalihe oly Directorate was not a good merchant, since it duvana, kako iz doma}ih berbi, tako i iz prili~- desperately needed the assistance of real merchants. nog uvoza tokom prethodnih godina. O tome Seeing that it could not resolve the problem of svedo~i podatak da doma}i duvan I i II klase iz tobacco surpluses through foreign trade, the berbi 1891-1893. godina i doma}i duvan II klase Monopoly Directorate opted for another policy: it iz berbe 1893. godine uop{te nisu kori{}eni u endeavored to even out production surpluses and

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SURPLUSES, DEFICITS AND FOREIGN TRADE proizvodwi fabrike duvana sve do 1896. godine. deficits run in certain years by means of reserves, so Tada su rezerve jednim delom utro{ene, a zbog overproduction from a bumper year would be stored niè proizvodwe 1894. i 1895. godine, ali se and spent in a year or several years in which the slede}ih godina ponovo akumuliraju, i kroz uvoz crop failed. The problem with this policy is that it is i kroz doma}u proizvodwu, posebno dobru u 1898. costly: sometimes immobilized capital in the form godini. Trgovinski glasnik je tvrdio, kao pou- of tobacco has to be kept in stock for years, addi- zdan i poznat podatak, da rezerve iznose ~ak dva tional warehouses are needed to store surpluses, as 162 miliona kilograma u 1897. godini. Izvrsna well as more staff to handle them. proizvodwa iz 1898. godine ih je jo{ uve}ala za Although the data on the movements in reserves oko pola miliona kilograma. are not available, it is still possible to observe their U duvanskom poslu uprave monopola posto- trends on the basis of indirect indicators. In the early jao je jo{ jedan problem: odre|ene koli~ine 1890s certain tobacco reserves were built, both from otkupqenog duvana bile su neupotrebqive za domestic harvests and from quite sizeable imports in preradu i prodaju i bacane, odnosno spaqivane. the course of the previous years. This is substantiated Tri su glavna razloga. Prvo, deo dobrog duvana by the fact that domestic tobacco of classes I and II je bacan zato {to se pokvario u dràvnim maga- from the harvests in the period 1891–1893, and cinima i fabrici, a usled ne uvek stru~nog domestic tobacco of class III from the 1893 harvest, rukovawa ili predugog leàwa. Takvog kala mo- had not been used at all in the production of the ra biti, a pitawe je samo koliko ga je u procen- tobacco factory up until 1896. Then the reserves were tu od ukupnog prometa. U beogradskoj fabrici partly run down, due to lower output in 1894 and duvana svakako ga je bilo dosta, jer su preovla- 1895, but their accumulation resumed in the follow- |ivale nestru~nost i lo{a organizacija, kako ing years, through both imports and domestic pro- navodi prvi srpski kvalifikovani stru~wak za duction, which had a bumper year in 1898. Commer- 163 duvan Uro{ Staji}. Drugo, duvan je gubio na cial Herald claimed that it had a reliable and well- teìni iz neminovnih tehnolo{kih razloga. Tu known piece of information that the reserves imamo uobi~ajen kalo od oko 10% pri fermen- amounted to as much as two million kilograms in taciji duvana, a zatim i nezaobilazne otpatke 1897.162 A bumper crop in 1898 increased them fur- pri preradi, tzv. furdu. I tre}e, jedan deo otku- ther by about half a million kilograms. pqenog doma}eg duvana nije bio niza{ta, tj. In the tobacco business of the Monopoly Direc- nije bio dovoqnog kvaliteta da bi se mogao upo- torate there was yet another problem: certain quanti- trebiti u preradi. Naime, monopolska uprava je ties of the purchased tobacco were unsuitable for kupovala i znatne koli~ine {karta, koji je tek processing and sales and they were thrown away, that jednim delom bio upotrebqiv, dok je preostalo is, incinerated. There were three main reasons for moralo da se baci. Tako je, na primer, u 1889. that. Firstly, part of good tobacco was thrown away godini od cele otkupqene koli~ine ~ak 58% because it had decayed in government warehouses bio {kart, a 42% klasiran duvan. Vrlo je vero- and the factory, due to the handling which was not vatno da je uprava monopola, radi mira u odno- always skillful or due to a too long period of storage. sima sa seqacima, imala fleksibilne kriteri- There has to be such loss, the only question is how jume pa umela i da potpuno ili delimi~no high it is in terms of share in total turnover. In the neupotrebqiv duvan proglasi za {kart i kupi, Belgrade tobacco factory, there certainly was a lot of

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VI[KOVI, MAWKOVI I SPOQNA TRGOVINA dodu{e po izuzetno niskoj ceni. Posledica it, because incompetence and poor organization pre- takvog otkupa bila je jasna: znatan deo duvana vailed, as indicated by Uroš Staji}, the first Serbian morao se kasnije bacati kao nekoristan. Kako u qualified tobacco expert.163 Secondly, tobacco was 1890. godini re~e ministar finansija Vuji} losing weight for inevitable technological reasons. „da se jedna ogromna koli~ina duvana na {tetu There was this usual loss of about 10 percent in the dr`avne kase morala spaliti”, kako ne bi bilo fermentation of tobacco, and then the unavoidable 164 `albi na kvalitet duvanskih prera|evina. waste generated in processing, the so-called junk. And thirdly, part of the purchased domestic tobacco was good-for-nothing, that is, its quality was not such that it could be used for processing. Namely, the Monopoly Directorate was also buying considerable quantities of discard, which could be used only partially, while the rest had to be thrown away. Thus, for instance, in 1889, out of the entire purchased quantity as much as 58 percent was discard, and 42 percent was categorized tobacco. There is a strong probability that the Monopoly Directorate had flexible criteria, so as to avoid tensions in relationships with farmers, and on occasions it declared completely or partially useless tobacco to be discard and purchased it, admittedly at an extremely low price. The consequence of such purchase was clear: a significant portion of tobacco had to be thrown away later on as unusable. As Finance Minister Vuji} said in 1890, “a huge quantity of tobacco had to be burnt at the expense of the public purse” in order to avoid complaints about the quality of tobacco products.164

Omot cigaret papira Envelope of cigarette paper

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SURPLUSES, DEFICITS AND FOREIGN TRADE

Dr`avni prihodi od monopola

PUBLIC REVENUE FROM THE MONOPOLY

udu}i da je svrha svakog fiskalnog monopola ince the purpose of any fiscal monopoly is to col- Bostvarewe {to ve}eg dr`avnog prihoda, to je Slect as much public revenue as possible, it is va`no pogledati kako je sa svojim duvanskim mo- important to see how Serbia fared with its tobacco nopolom pro{la onovremena Srbija. monopoly.

Finansijski pokazateqi Financial indicators

miliona million 14 Prihodi 12 Revenue 10 Dobit 8 Profit 6 Tro{kovi 4 Expenditure 2

0 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900

Izvor: Statisti~ki godi{wak Kraqevine Srbije 1900, 1904 Source: Statistical Yearbook of the Kingdom of Serbia 1900, 1904

233 U posmatranom periodu (1889-1900) ukupan i In the observed period (1889–1900), total and neto prihod monopola duvana porasli su znatno: net revenue of the tobacco monopoly rose steeply: ukupan prihod za vi{e od dva puta, a neto prihod total revenue more than doubled, and net revenue (ukupan prihod umawen za sve tro{kove) za oko (total revenue less all the costs) quadrupled. A faster ~etiri puta. Brì rast neto prihoda od ukupnog rise in net revenue in relation to total revenue posledica je ~iwenice da su tro{kovi monopola growth was a result of the fact that the expenses of (nabavke duvana, proizvodwa, plate i provizije) monopoly (tobacco procurement, production costs, gotovo stagnirali, prvenstveno zato {to je koli- salaries and commissions) almost stagnated, prima- ~ina duvana koji je Uprava monopola kupila i rily because the quantity of tobacco which the prodala stagnirao. Prihod i dobit monopola Monopoly Directorate bought and sold stagnated. rasli su brzo u periodu 1889-1892. godina zahva- Revenue and profits of the monopoly were rapidly quju}i pove}awu prodajnih i smawewu otkupnih going up in the period 1889–1892, owing to an cena duvana, ali i ja~awu organizacije monopola increase in the selling prices and a cut in the pur- i iz toga izvedenog pove}awa legalne i smawewa chase prices of tobacco, as well as to the strengthen- ilegalne prodaje duvana. Dràva je tada vodila ing of the monopoly organization, resulting in a rise politiku maksimizacije dobiti i ~vrsto je in legal tobacco sales and a drop in illegal tobacco dràla otkupne cene niskima, pove}ala pro- sales. In that period, the government pursued profit dajne cene duvana i cigareta na teret pu{a~a, a maximization policy and firmly kept the purchase uz uobi~ajeno obja{wewe da je pu{ewe luksuz i da prices at a low level, while increasing the selling niko ne mora da pu{i, a time i da doprinosi prices of tobacco and cigarettes at the expense of dràvnoj blagajni, i poboq{avala kontrolu. Od smokers, and with a standard explanation that 1892. godine cene finalnih proizvoda se, smoking was a luxury and that no one was obliged to o~igledno, zadugo ne pove}avaju, pa prihod i smoke, and thus contribute to the budget, and step- dobit monopola stagniraju do 1898. godine, da bi ping up control. The prices of finished products had tek u 1899. i 1900. godini neto dobit ponovo remained at the same level obviously for a prolonged rasla. Uzrok je, svakako, pove}awe cena duvana, period of time starting in 1892, so the revenue and prvenstveno doma}eg. profits of the monopoly had stagnated until 1898, U razdobqu 1892-1899. godina izgleda da je and only in 1899 and 1900 did net profits start to dràva procenila da je fiskalna presija duvana, rise again. The reason was, of course, an increase in ali i drugih potro{nih roba, prakti~no dostigla the prices of tobacco, primarily domestic. maksimum i da je potrebno, ukoliko je mogu}e, In the period 1892–1899, the government okrenuti se drugim izvorima dràvnih prihoda assessed, as it appears, that the fiscal pressure on i, jo{ vi{e, boqoj naplati postoje}ih da`bina. tobacco and other consumption goods practically [est miliona dinara neto prihoda na ra~un reached its maximum and that it was necessary, if pu{a~ke slabosti ~inilo se dovoqnim. A eksplo- possible, to turn to other sources of public revenue, atacija novih izvora nije zapo~eta ne zato {to ih and even more to improving the collection rate for the bilo ve} stoga {to se dràva uzdràvala od pove- existing levies. Six million dinars in net revenue from }awa neposrednih poreza. Sveop{ti rezultat smokers’ weakness seemed enough. But the exploita- ovakve fiskalne politike bila je duboka kriza tion of new sources did not start because the state dràvnih finansija u prvoj polovini 1890-tih hesitated to increase direct taxes, and not because

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DR@AVNI PRIHODI OD MONOPOLA godina, koja je rezultirala polu bankrotskim there were no such sources. The overall result of such aran`manom u Karlsbadu 1895. godine. Tek 1899, fiscal policy was a deep crisis of public finances in the dakle sedam godina po prethodnoj promeni pro- first half of the 1890s, which resulted in the semi- dajnih cena, izvr{eno je novo pove}awe: procewe- bankruptcy arrangement in Carlsbad in 1895. Only in no je da je buxetska potreba tolika da se mora pre- 1899, seven years after the previous change in selling uzeti taj nepopularan i politi~ki rizi~an potez. prices, was a new increase carried out: it was estimat- Kada se razmatra politika prodajnih cena ed that the budget needs were so high that this unpop- monopola duvana gotovo uvek se polazi od odavno ular and politically risky move had to be made. uo~ene ~iwenice da je tra`wa za duvanom neela- In analyzing the selling price policy of the tobac- sti~na na cene, tako da je mogu}e wihovo pove}a- co monopoly, one almost always proceeds from the we a bez gubitaka na koli~ini prodatog duvana. fact noticed a long time ago that demand for tobacco Iz toga se izvla~i teorija da dràva moè vodi- is inelastic to prices, which makes their increases ti politiku cena ne obaziru}i se na bilo {ta possible without cutbacks in the quantity of sold drugo osim na svoje fiskalne ciqeve. Ipak, tobacco. A theory which is derived from this pro- takva je slika pojednostavqena, jer postoje gra- ceeding point is that the state can pursue pricing nice koje ni dràvni monopol ne sme da pre|e policy without paying attention to anything else by ukoliko je stvarni ciq maksimizacija dobiti. its fiscal objectives. Still, such an image is simplified, Prvo, potro{wa duvana jeste neelasti~na u because there are limits which not even the govern- {irokom rasponu cena, ali nije apsolutno ne- ment monopoly dares to cross, if the true objective is elasti~na; pri veoma visokim cenama duvana i to maximize the profits. Firstly, tobacco consump- tra`wa se smawuje, {to, u zavisnosti od visine tion really is inelastic in a broad price band, but it is elasti~nosti tra`we u tom segmentu, moè not absolutely inelastic; at very high tobacco prices voditi i do smawewa prihoda od prodaje. Drugo, demand does go down, which, depending on the level visoke prodajne cene duvana jako podsti~u ile- of demand elasticity in that segment, can lead even galno gajewe duvana i krijum~arewe, koji, opet, to a drop in the proceeds from the sales. Secondly, smawuju legalnu prodaju i prihode monopola. I high selling prices of tobacco act as a strong incen- tre}e, ~esto i znatno pove}awe prodajnih cena tive to illegal tobacco growing and smuggling, which, iritira duvansku populaciju, koja predstavqa in turn, reduce legal sales and monopoly proceeds. oko jedne polovine bira~kog tela zemqe, pa se And thirdly, frequent and large increases in selling moè negativno odraziti na rezultat vladaju}e prices irritate the tobacco population, which is about stranke na slede}im izborima. Zna~i, postoje half of the country’s electorate, so it can adversely prili~no jaki razlozi koji navode vlade na izve- affect the result of the ruling party on the following snu uzdrànost sa pove}awem cena duvana i election. So, there are fairly strong reasons, which srpske vlade su ih bile svesne, pa nisu ni vodile impose certain restraint on governments when it posebno aktivnu politiku cena duvana. Dràvni comes to increases in tobacco prices, and the Serbian monopol je izveo tri pove}awa cena: governments were aware of them, hence they did not • 1889, po nacionalizaciji, kada je tek pursue a particularly active tobacco pricing policy. ne{to malo poskupeo turski duvan sred- The government monopoly raised prices three times: weg kvaliteta kako bi se vi{e tro{io • in 1889, after the nationalization, when the srpski duvan, price of medium-quality Turkish tobacco was

235

PUBLIC REVENUE FROM THE MONOPOLY

• 1892, kada je izvedeno znatno pove}awe just slightly increased in order to encourage cena, tj. kada su sve kategorije duvana the consumption of Serbian tobacco, poskupele za 5 dinara po kilogramu osim • in 1892, when the price increase was hefty, dve najslabije srpske; to je bilo najva`nije that is, when the prices of all tobacco poskupqewe i ono je bitno pove}alo i categories rose by 5 dinars per kilogram, with prihod i dobit monopola, the exception of the two lowest categories of • 1898, kada je kroz uvo|ewe novih vrsta i Serbian tobacco; it was the most important pakovawa na luksuznom kraju ponude ipak price hike and it considerably increased both do{lo do pove}awa cena, the revenue and profits of the monopoly, • 1899, kada je, pod firmom reklasifika- • in 1898, when a price increase did occur cije i podizawa kvaliteta, bitno poskupeo through the introduction of new kinds and srpski duvan. packages of high-end products, Me|u pojedina~nim cenama, daleko je najva- • in 1899, when the price of Serbian tobacco `nija bila cena srpskog duvana III kategorije, went up steeply, under the disguise of po{to je on prodavan u najve}im koli~inama, pa reclassification and quality improvement. je tako u 1893. godini predstavqao ~ak 65% From among individual prices, the most impor- ukupne potro{we svih doma}ih i stranih vrsta. tant one by far was the price of Serbian tobacco in Za upravu monopola i ministra finansija pri category III, since it was sold in the highest quanti- razmi{qawu o promeni cena uvek je bila presud- ties, accounting for as much as 65 percent of total na cena ovog duvana, po{to je ona dobrim delom consumption of all domestic and foreign kinds in odre|ivala ukupne prihode i dobit monopola. 1893. For the Monopoly Directorate and the Minis- Od ukupnih prihoda duvanskog monopola u toj ter of Finance, in their thinking about price adjust- godini ova jedna vrsta duvana donela je celih 58 ments, the price of this tobacco was always decisive, procenata. Pogledajmo kretawe wene cene: since it largely determined total revenue and profits • 1887. 7,5 din/kg of the monopoly. In the said year, proceeds from • 1889 7,5 din/kg this one kind of tobacco accounted for full 58 per- • 1892. 10 din/kg cent of total revenue of the tobacco monopoly. Let • 1899. 12,5 din/kg us take a look at the movements in its price: • 1904. 17 din/kg. • 1887 7.5 din/kg O~ito je da se ministar finansija po nacio- • 1889 7.5 din/kg nalizaciji monopola uzdrào od pove}awa ove • 1892 10 din/kg cene, ali i da je 1892. godine, kada je trebalo • 1899 12.5 din/kg uve}ati prihod i dobit monopola, pove}ao cenu • 1904 17 din/kg. ~ak za jednu tre}inu, a 1899. za jednu ~etvrtinu. It is obvious that the Finance Minister had Razlog za po~etnu uzdrànost je o~evidan: èqa refrained from raising this price after the nationaliza- da se pokaè da srpska dràva nije pohlepnija tion of the monopoly, but it is also clear that in 1892, od stranog zakupca. I razlog za pove}awa je jasan: when it was necessary to increase the revenue and eksploatacija velikog fiskalnog potencijala. profits of the monopoly, he raised this price by as Zna~i, za petnaest godina dràvnog mono- much as one third, and in 1899 by one quarter. The pola cena najslabijeg duvana, onoga koji se reason for the initial restraint is obvious: the wish to

237

PUBLIC REVENUE FROM THE MONOPOLY najmasovnije tro{i i koga pu{i glavnina naro- show that the Serbian government was not greedier da, ukqu~uju}i i one siroma{ne, pove}ana je than the foreign lessee. And the reason for the vi{e nego dvostruko, ~ak za 126,7 procenata. A increases is also clear-cut: the exploitation of high fis- tada je inflacije bila nepoznata stvar. Nije cal potential. lako bilo biti srpski pu{a~ pod dràvnim So, in the fifteen years of the government monopolom. monopoly, the price of the poorest-quality tobacco, Globalno posmatrano, duvanski monopol do- the one most massively consumed and smoked by nosio je dràvi lepu zaradu i tako olak{avao the majority of people, including the poor, was more ina~e stalno te{ku finansijsku situaciju. than doubled, actually, it was raised by as much as U~e{}e monopolske dobiti u ukupnim dràvnim 126.7 percent. And in those days inflation was an prihodima iznosilo je 7,0 u 1888, 13,3 u 1896. i unknown phenomenon. It was not easy to be a Ser- 16,0% u 1900. godini. Zna~i, na kraju XIX veka bian smoker under the government monopoly. svaki sedmi dinar koji je ulazio u dràvnu bla- In broad terms, the tobacco monopoly was gajnu bio je duvanskog porekla. Dosta od jedne bringing generous revenue to the state, thus making biqke i jedne qudske slabosti. a continuously difficult financial situation easier. Duvanski monopol je, posle renovirawa u The share of the monopoly profits in total public Karslbadu, obezbedio i ono {to srpska dràva do revenue was 7.0 in 1888, 13.3 in 1896 and 16.0 per- tada nije uspevala – redovno servisirawe cent in 1900. Accordingly, at the end of the 19th spoqnih dugova, pa je Srbija od 1895. godine century, every one in seven dinars that went to the u{la u red civilizovanih zemaqa koje uredno budget originated from tobacco. More than enough pla}aju ono {to su du`ne. Taj uspeh omogu}ila je from a plant and from a human weakness. Samostalna monopolska uprava, jedna od dràve The tobacco monopoly, after its overhaul in uglavnom nezavisna organizacija koja je preuzela Carlsbad, ensured one more thing the Serbian state od ministra finansija i srpske administracije had failed to ensure before it – regular servicing of prihod od vi{e va`nih dràvnih da`bina i external debt, so in 1895 Serbia joined the ranks of pla}awe svih anuiteta prema inostranstvu. civilized countries which are current on paying what \or|e Vajfert je ostao poznat kao dobar i indu- they owe. That success was made possible by the strijalac i guverner Narodna banke, ali se Autonomous Monopoly Directorate, an organization odli~nim pokazao i kao predsednik upravnog by and large independent from the state, which took odbora SMU: postavio ju je na noge posle Karls- over revenues from several important public dues bada i uspe{no vodio nekoliko prvih, kri- and payment of all the annuities to foreign creditors ti~nih godina, ~uvaju}i je od politi~kog uticaja from the Minister of Finance and the Serbian admin- i manipulacija sa prikupqenim parama. istration. Ðor|e Vajfert made a name for himself as a good industrialist and good Governor of the National Bank, but he was also excellent as Chairman of the Management Board of the Autonomous Monopoly Directorate: he put it on its feet after Carlsbad and successfully managed it for the first several years which were critical, safeguarding it from political influences and preventing misuse of collected money.

238

DR@AVNI PRIHODI OD MONOPOLA Napomene Endnotes

1 V. Karaxi} – Etnografski spisi o Crnoj Gori, 1 V. Karadì} – Ethnographic Documents on Montene- 1867, str. 180 gro, 1867, p. 180 2 Privatni ìvot u srpskim zemqama u osvit mo- 2 Private Life in Serb-Populated Territories at the Dawn dernog doba, Clio, 2005, str. 268 i 265 of the Modern Age, Clio, 2005, pp. 268 and 265 3 M. Ivanovi} – Zbirka lula Etnografskog muzeja 3 M. Ivanovi} – A Collection of Pipes of the Ethnographic u Beogradu, Zbornik Etnografskog muzeja u Beo- Museum in Belgrade, Anthology of the Ethnographic gradu, 1953, str. 362 Museum in Belgrade, 1953, p. 362 4 M. \. Mili}evi} – Knez Milo{ u pri~ama, 4 M. Ð. Mili}evi} – Prince Miloš in Stories, 1989, pp. 1989, str. 43, 46 i 62 43, 46 and 62 5 J. Ili} – Celokupna dela, b.g, str, 451 5 J. Ili} – Complete Works, no year of publication, p, 451 6 Stenografske bele{ke Narodne skup{tine (u 6 Stenographic Records of the National Assembly daqem tekstu SBNS), 1889–1890, str. 2544 (hereinafter: SBNS), 1889–1890, p. 2544 7 Danica, br. 19, od 10. jula 1868. 7 Danica, no. 19, of 10 July 1868. 8 K. Crnogorac – Duvan (Nicotiana), wegova proiz- 8 K. Crnogorac – Tobacco (Nicotiana), its Production, vodwa, fermentacija i fabrikacija, 1888, str. 1 Fermentation and Fabrication, 1888, p. 1 9 S. Todorovi} ministru finansija, AS, MF-A, 9 S. Todorovi} to the Minister of Finance, AS, MF-A, 1885, I, 19, od 3. 1. 1885. 1885, I, 19, dated 3/1/1885. 10 SBNS za 1881, str. 1601 10 SBNS for the year 1881, p. 1601 11 Statisti~ki godi{wak Kraqevine Srbije za 11 Statistical Yearbook of the Kingdom of Serbia for 1893, 1893, 1895 1895 12 Statisti~ki godi{wak Kraqevine Srbije za 12 Statistical Yearbook of the Kingdom of Serbia for 1893, 1893, str. 146–149 pp. 146–149 13 Monopolski kalendar za 1913. godinu, str. 62 i 13 Monopoly Calendar for 1913, pp. 62 and 61; Serbian 61; Srpske novine, 17.11.1892. Newspapers, 17 November 1892. 14 Statisti~ki godi{wak Kraqevine Srbije za 14 Statistical Yearbook of the Kingdom of Serbia for 1893, 1893, str. 146–150 pp. 146–150 15 M. Petkovi} – Pirotski pana|ur, Pirotski 15 M. Petkovi} – The Pirot Fair, Anthology of Pirot, no. zbornik, br. 25–26, 2000, str. 210 25–26, 2000, p. 210 16 Iz zbirke Etnografskog muzeja 16 From the collection of the Ethnographic Museum in u Beogradu. Belgrade. 17 D. \oki} – Zanati u Poàrevcu krajem XIX i po- 17 D. Ðoki} – Crafts in Poàrevac in the Late 19th and ~etkom XX veka, 1996, str. 9; S. Mijatovi} – Za- Early 20th Century, 1996, p. 9; S. Mijatovi} – Crafts in nati u Rasini, u @ivot i obi~aji narodni, kw. Rasina, in Popular Life and Customs, volume 17, 17, 1928, str. 138 1928, p. 138 18 K. Crnogorac, isto, str. 9–10 18 K. Crnogorac, ibid, p. 9–10 19 Pouka kako se proizvodi duvan, 1865, str. 3–4 19 Instructions on How to Produce Tobacco, 1865, pp. 3–4 20 S. Andrejevi} – Sto godina Fabrike duvana Ni{, 20 S. Andrejevi} – A Hundred Years of the Niš Tobacco 1985, str. 2–3 Factory, 1985, pp. 2–3 21 Dràvopis Srbije, sv. V, 1871 21 Serbia’s Statistics, volume V, 1871 22 Pouka kako se proizvodi duvan, 1865, str. 3–4; 22 Instructions on How to Produce Tobacco, 1865, pp. Dràvopis Srbije, kw. V, 1871 3–4; Serbia’s Statistics, volume V, 1871

239 23 S. Mijatovi} – Zanati u Rasini, u @ivot i obi- 23 S. Mijatovi} – Crafts in Rasina, in Popular Life and ~aji narodni, kw. 17, 1928, str. 137–138; J. Di- Customs, volume 17, 1928, pp. 137–138; J. Dim- mitrijevi}, Monopolski glasnik, br. 41/1936 itrijevi}, Monopoly Herald, no. 41/1936 24 J. Dimitrijevi}, Monopolski glasnik, br. 24 J. Dimitrijevi}, Monopoly Herald, no. 41/1936; S. 41/1936; S. Mijatovi} – Zanati u Rasini, u @ivot Mijatovi} – Crafts in Rasina, in Popular Life and i obi~aji narodni, kw. 17, 1928, str. 137–138 Customs, volume 17, 1928, pp. 137–138 25 Izve{taj Ministarstva finansija iz 1880, 25 Report of the Ministry of Finance for 1880, printed {tampano u Monopolski kalendar za prostu in Monopoly Calendar for the Common Year 1921, 1921, 1920, str. 51 1920, p. 51 26 Monopolski kalendar za prostu 1921, 1920, str. 26 Monopoly Calendar for the Common Year 1921, 52 1920, p. 52 27 Pregled radwe po struci Ministarstva finan- 27 Overview of Developments by Activity of the Ministry cije, 1870. of Finance, 1870 28 U. Staji} – Gajewe duvana, 1927, str. 36 28 U. Staji} – Tobacco Growing, 1927, p. 36 29 Pismo Gara{anina kraqu Milanu, 1888, u S. 29 Garašanin’s letter to King Milan, 1888, in S. Proti} Proti} – Odlomci iz ustavne i politi~ke borbe – Excerpts from the Constitutional and Political u Srbiji, 1912, str. 140 Strife in Serbia, 1912, p. 140 30 AS, MF, A, 1881, IX, 61, 4. 8. 1881, 5. 8. 1881. i 30 AS, MF, A, 1881, IX, 61, 4/8/1881, 5/8/1881 and 5. 9. 1881. 5/9/1881. 31 AS, MF, A, 1881, IX, 61, br. 7631 od 6. 6. 1881, 31 AS, MF, A, 1881, IX, 61, no. 7631 dated 6/6/1881, br. 7827 od 14. 6. 1881. no. 7827 dated 14/6/1881 32 SBNS za 1881, str. 1601–1605 32 SBNS for the year 1881, pp. 1601–1605 33 K. Aranicki – Nekoliko re~i o na{im dr`avnim 33 K. Aranicki – A Few Words about Our Public finansijama, Otaxbina, kw. XII, 1883, str. 306 Finances, Fatherland, volume XII, 1883, p. 306 34 SBNS za 1883, str. 1024, 1028 i 1021 34 SBNS for the year 1883, pp. 1024, 1028 and 1021 35 SBNS za 1883, str. 1022 i 1023 35 SBNS for the year 1883, pp. 1022 and 1023 36 AS, MF-A, 1884, XXX, 18 36 AS, MF-A, 1884, XXX, 18 37 AS, MF-PR, 1885, IV–506, 17.10.1885; MF-PR, 37 AS, MF-PR, 1885, IV–506, 17/10/1885; MF-PR, 1885, IV–506, br. 3785 od 16.10.1885; AS, MF-A, 1885, IV–506, no. 3785 dated 16/10/1885; AS, 1884, XV, 87 MF-A, 1884, XV, 87 38 AS, MF-A, 1885, I, 145, od 14. 1. 1885. 38 AS, MF-A, 1885, I, 145, dated 14/1/1885. 39 AS, MF-A, 1885, XVIII, 6, br. 13930 od 4. 11. 39 AS, MF-A, 1885, XVIII, 6, no. 13930 dated 1884. 4/11/1884. 40 S. Todorovi} ministru finansija, AS, MF-A, 40 S. Todorovi} to the Minister of Finance, AS, MF-A, 1885, I, 19, od 3. 1. 1885. 1885, I, 19, dated 3/1/1885. 41 SBNS za 1883, str. 1029 41 SBNS for the year 1883, p. 1029 42 AS, MF-A, 1885, IV, 19, od 31. 8. 1884. 42 AS, MF-A, 1885, IV, 19, dated 31/8/1884. 43 Gara{anin Mijatovi}u i Gara{anin Marinovi- 43 Garašanin to Mijatovi} and Garašanin to Mari- }u, AS, MID, PO, 1885, br. 173 i 174, od 28. 3. novi}, AS, MID, PO, 1885, no. 173 and 174, dated 1885. 28/3/1885. 44 V. Petrovi} M. Gara{aninu, 10. 7. 1885, AS, MG 44 V. Petrovi} to M. Garašanin, 10/7/1885, AS, MG 870 870 45 V. Petrovi} – Memoari, ASANU, br. 7247, str. 45 V. Petrovi} – Memoirs, ASANU, no. 7247, pp. 259–261 i 271 259–261 and 271

240

NAPOMENE 46 Srpske novine, 25.9.1885. 46 Serbian Newspaper, 25/9/1885. 47 SBNS za 1886, Beograd, 1886, str. 347 47 SBNS for the year 1886, Belgrade, 1886, p. 347 48 V. \or|evi} – Istorija srpsko-bugarskog rata, 48 V. Ðor|evi} – The History of the Serbian-Bulgarian 1908, str. 108 War, 1908, p. 108 49 AS, MF-PR, 1885, IV–506, br. 16091 od 15. 12. 49 AS, MF-PR, 1885, IV–506, no. 16091 dated 1885. 15/12/1885 50 R. Dani} V. Petrovi}u, 28.12.1885, AS, PO-69, 50 R. Dani} to V. Petrovi}, 28/12/1885, AS, PO-69, 64; 64; M. Piro}anac – Dnevnik, 10. 12. 1885. M. Piro}anac – Diary, 10/12/1885 51 Dodatak na obznanu za obnarodovawe cena, 51 Supplement to the Public Announcement for the Srpske novine, 21. 6. 1886. Proclamation of Prices, Serbian Newspaper, 21/6/1886 52 V. Petrovi} M. Gara{aninu, AS, MG 1049, 15. 4. 52 V. Petrovi} to M. Garašanin, AS, MG 1049, 15/4/1886; 1886; SBNS za 1886, Beograd, 1886, str. 344–345; SBNS for the year 1886, Belgrade, 1886, pp. 344–345; AS, MF-PR, 1885, I–2, br. 15911 od 10. 12. 1885, AS, MF-PR, 1885, I–2, no. 15911 dated 10/12/1885, Q. M. T. – Monopol duvana, Nedeqni pregled, 1. LJ. M. T. – Tobacco Monopoly, Weekly Review, 6. 1908. 1/6/1908 53 AS, MF-PR, 1885, I–2, br. 16901 od 15. 12. 1885. 53 AS, MF-PR, 1885, I–2, no. 16901 dated 15/12/1885 54 SBNS za 1886, str. 344 54 SBNS for the year 1886, p. 344 55 Izve{taj Komisije za konstatovawe 55 Report of the Board for the Determination of the Finan- finansijskog stawa Kraqevine Srbije na dan 1. cial Position of the Kingdom of Serbia as at 1 August avgusta 1892. godine, 1893, str. 61 i 81 1892, 1893, pp. 61 and 81 56 SBNS za 1886, str. 346 i 348 56 SBNS for the year 1886, pp. 346 and 348 57 SBNS za 1886, str. 347 57 SBNS for the year 1886, p. 347 58 Statisti~ki godi{wak za 1893, 1895, str. 145; 58 Statistical Yearbook for 1893, 1895, p. 145; SBNS for SBNS za 1886, str. 346 i 353 the year 1886, pp. 346 and 353 59 Dnevni list, br. 49, 3.3.1888; Statisti~ki 59 Daily Paper, no. 49, 3/3/1888; Statistical Yearbook of godi{wak Kraqevine Srbije 1893 the Kingdom of Serbia 1893 60 Statisti~ki godi{wak Kraqevine Srbije, 1900, 60 Statistical Yearbook of the Kingdom of Serbia, 1900, Beograd, 1904, str. 261 i 250 Belgrade, 1904, pp. 261 and 250 61 Uprava monopola ministru finansija, MF-A, 61 The Monopoly Directorate to the Minister of Finance, 1890, III, 90, 15. 9. 1890 MF-A, 1890, III, 90, 15/9/1890 62 Kalendar Nova zora za 1925, 1925, str. 156 62 New Dawn Calendar for 1925, 1925, p. 156 63 N. Vu~o – Razvoj industrije u Srbiji u XIX veku, 63 N. Vu~o – Industrial Development in Serbia in the 19th 1981, str. 369–372 Century, 1981, pp. 369–372 64 AS, MF-PR, 1886, br. 1819 od 4. 8. 1886. i br. 64 AS, MF-PR, 1886, no. 1819 dated 4/8/1886 and no. 3858 od 28. 10. 1886, III–319 3858 dated 28/10/1886, III–319 65 Srpske novine, 7. 9. 1886. 65 Serbian Newspaper, 7/9/1886 66 AS, MF-PR, 1886, br. 12125 od 16. 8. 1886, 66 AS, MF-PR, 1886, no. 12125 dated 16/8/1886, III–319; br. 2066 od 18. 8. 1886. i br. 12214 od III–319; no. 2066 dated 18/8/1886 and no. 12214 20. 8. 1886, III–319 dated 20/8/1886, III–319 67 Srpske novine, 16. 9. 1886. 67 Serbian Newspaper, 16/9/1886 68 AS, MF-PR, 1886, br. 847 od 20. 6. 1886, III–319 68 AS, MF-PR, 1886, no. 847 dated 20/6/1886, III–319 i br. 2111 od 20. 8. 1886, III–319; 1887, VIII–34, and no. 2111 dated 20/8/1886, III–319; 1887, br. 2741 od 18. 3. 1887. VIII–34, no. 2741 dated 18/3/1887 69 Srpske novine, 2. 4. 1887. 69 Serbian Newspaper, 2/4/1887

241

ENDNOTES 70 M. Vuji} ~a~anskom okru`nom na~elstvu, AS, 70 M. Vuji} to the â~ak District Council, AS, MF-PR, MF-PR, 1887, br. 12918 od 20. 8. 1877, VIII–32 1887, no. 12918 dated 20/8/1877, VIII–32 71 Raspis ministra finansija, Srpske novine, br. 71 A circular of the Finance Minister, Serbian News- 72, 31. 3. 1889. paper, no. 72, 31/3/1889 72 Izve{taj Uprave monopola duvana od 1. 2. 1889, 72 Report of the Tobacco Monopoly Directorate dated Srpske novine, br. 28, 7. 2. 1889. 1/2/1889, Serbian Newspaper, no. 28, 7/2/1889 73 Raspis M. Vuji}a, Srpske novine, 12. 3. 1889. 73 M. Vuji}’s Circular, Serbian Newspaper, 12/3/1889 74 V. Petrovi} – Moje odbrane, ASANU, br. 7247, 74 V. Petrovi} – My Defenses, ASANU, no. 7247, p. 1; str. 1; V. Petrovi} – Memoari, str. 404 V. Petrovi} – Memoirs, p. 404 75 SBNS za 1886, II, str. 674 75 SBNS for the year 1886, II, p. 674 76 SBNS za 1886, II, str. 663–676 76 SBNS for the year 1886, II, pp. 663–676 77 V. Petrovi} – Moje odbrane, str. 46–48 77 V. Petrovi} – My Defenses, pp. 46–48 78 SBNS za 1893, str. 179–180 78 SBNS for the year 1893, pp. 179–180 79 AS, MF–PR, 1885, I–2, br. 11596 od 15. 7. 1887. 79 AS, MF-PR, 1885, I–2, no. 11596 of 15/7/1887 80 M. Vuji} Upravi, br. 12926 od 19. 8. 1887. i 80 Vuji} to the Directorate, no. 12926 of 19/8/1887 Uprava M. Vuji}u br. 8906 od 5.9.1887, AS, and the Directorate to Vuji} no. 8906 of 5/9/1887, MF–PR, 1887, VII–293 AS, MF-PR, 1887, VII–293 81 Videlo, 24. 2. 1888. i 26. 2. 1888. 81 Light, 24/2/1888 and 26/2/1888 82 Radikal, 12. 11. 1887, 20. 2. 1888. i 22. 2. 1888, 82 The Radical, 12/11/1887, 20/2/1888 and M. Nedeqkovi} – Istorija srpskih dràvnih du- 22/2/1888, M. Nedeljkovi} – The History of Serbian gova, str. 131–132 Public Debt, pp. 131–132 83 Videlo, 27. 9. 1887. 83 Light, 27/9/1887. 84 Videlo, 1. 5. 1888. 84 Light, 1/5/1888. 85 Videlo, 7. 3. 1880; M. \. Mili}evi} – Zabele- 85 Light, 7/3/1880; M. Ð. Mili}evi} – Notes, Archives {ke, Arhiv SANU, br. 9327/XI, 27. 9. 1881. of the SANU, no. 9327/XI, 27/9/1881. 86 ^. Mijatovi} – Nauka o dràvnom gazdinstvu 86 ^. Mijatovi} – Science of Public Management or Sci- ili nauka o financiji, 1869, 80–103 ence of Finances, 1869, 80–103 87 M. Vuji} – Na{a ekonomna politika, 1883, str. 87 M. Vuji} – Our Economic Policy, 1883, pp. 72–7; M. 72–7; M. Vuji} – Na~ela narodne ekonomije, III/1, Vuji} – Principles of the National Economy, III/1, 1898, str. 18 1898, p. 18 88 M. Vuji} – Finansija, skripta, 1890 88 M. Vuji} – Finances, mimeographed notes, 1890 89 Izve{taj Komisije za konstatovawe finansij- 89 Report of the Board for the Determination of the skog stawa Kraqevine Srbije na dan 1. avgusta Financial Position of the Kingdom of Serbia as of 1 1892. godine, str. 81 August 1892, p. 81 90 M. Jeli} – Kratki pregled na{eg dràvnog konso- 90 M. Jeli} – A Short Overview of Our Public Consoli- lidovanog duga, str. 239–240 dated Debt, pp. 239–240 91 Izve{taj Komisije za konstatovawe finansij- 91 Report of the Board for the Determination of the skog stawa Kraqevine Srbije na dan 1. avgusta Financial Position of the Kingdom of Serbia as of 1 1892. godine, str. 81 August 1892, p. 81 92 Odjek, 17. 2. 1889; Videlo, 22. 2. 1889. 92 Echo, 17/2/1889; Light, 22/2/1889. 93 AS, MID, PO, 1888, D/6, 1. 5. 1888, I/313 93 AS, MID, PO, 1888, D/6, 1/5/1888, I/313 94 @. @ivanovi} – Politi~ka istorija Srbije, 94 @. @ivanovi} – Political History of Serbia, III, 1924, III, 1924, str. 29 p. 29 95 Odjek, 13. 2. 1894. 95 Echo, 13/2/1894.

242

NAPOMENE 96 Narodni dnevnik, 19. 8. 1889. 96 People’s Daily, 19/8/1889. 97 Srpske novine, 31. 3. 1889; Srpska nezavisnost, 97 Serbian Newspapers, 31/3/1889; Serbian Indepen- 6. 10. 1888. dence, 6/10/1888. 98 Srpska nezavisnost, 20. 9. 1888. 98 Serbian Independence, 20/9/1888. 99 M. Piro}anac S. Novakovi}u, 5. 2. 1888, AS, SN 99 M. Piro}anac to S. Novakovi}, 5/2/1888, AS, SN 2009; M. Piro}anac – Dnevnik, 22. 4. 1888. 2009; M. Piro}anac – Journal, 22/4/1888. 100 Saop{tewe ^edomiqa Mijatovi}a, Srpske novi- 100 Statement by ^edomilj Mijatovi}, Serbian Newspa- ne, 8. 2. 1889; P. Todorovi} – Dnevnik, 1990, str. pers, 8/2/1889; P. Todorovi} – Journal, 1990, pp. 57–60; Srpska nezavisnost, 4. 10. 1888; M. Piro- 57–60; Serbian Independence, 4/10/1888; M. }anac – Dnevnik, 14.9.1888; P. Todorovi} – Ogle- Piro}anac – Journal, 14/9/1888; P. Todorovi} – The dalo, 1903–1904, str. 514 Mirror, 1903–1904, p. 514 101 V. Petrovi} – Memoari, str. 433 101 V. Petrovi} – Memoirs, p. 433 102 M. Mili}evi} – Zabele{ke, 19.5.1890; M. Grol – 102 M. Mili}evi} – Notes, 19/5/1890; M. Grol – Milan Milan Raki}, Iz predratne Srbije, 1939, str. 97 Raki}, From Pre-war Serbia, 1939, p. 97 103 Srpske novine, 8. 2. 1889 103 Serbian Newspapers, 8/2/1889 104 Narodni dnevnik, 3. 6. 1889. 104 People’s Daily, 3/6/1889. 105 S. Novakovi} S. Gruji}u, 2. 3. 1889, AS, MID, 105 S. Novakovi} to S. Gruji}, 2/3/1889, AS, MID, PO, PO, 1889, D/5, I/367; S. Novakovi} S. Gruji}u, 2. 1889, D/5, I/367; S. Novakovi} to S. Gruji}, 3. 1889, S. Gruji} S. Novakovi}u, 1. 6. 1889, S. 2/3/1889, S. Gruji} to S. Novakovi}, 1/6/1889, S. Novakovi} S. Gruji}u, 2. 3. 1889, I/370, sve u AS, Novakovi} to S. Gruji}, 2/3/1889, I/370, all in AS, MID, PO, 1889, D/5 MID, PO, 1889, D/5 106 Novi beogradski dnevnik, 3. 5. 1887. i Srpske 106 New Belgrade Daily, 3/5/1887 and Serbian Newspa- novine, 17. 5. 1889. pers, 17/5/1889. 107 Raspis M. Vuji}a, Srpske novine, 24. 3. 1889. 107 M. Vuji}’s circular, Serbian Newspapers, 24/3/1889. 108 SBNS za 1890, str. 587 108 SBNS for the year 1890, p. 587 109 SBNS, 1889–1890, str. 5059–5067 109 SBNS, 1889–1890, pp. 5059–5067 110 Domovina, 16. 3. 1890. 110 Fatherland, 16/3/1890. 111 SBNS, 1889–1890, str. 195 111 SBNS, 1889–1890, p. 195 112 SBNS, 1889–1890, str. 554–555 112 SBNS, 1889–1890, pp. 554–555 113 SBNS, 1889–1890, str. 1172–1211 113 SBNS, 1889–1890, pp. 1172–1211 114 SBNS, 1889–1890, str. 2582–2588 114 SBNS, 1889–1890, pp. 2582–2588 115 SBNS, 1889–1890, str. 2577–2580 115 SBNS, 1889–1890, pp. 2577–2580 116 D. Vuli~evi} – Duvansko pitawe, 1931, str. 13 116 D. Vuli~evi} – The Tobacco Issue, 1931, p. 13 117 SBNS, 1889–1890, str. 2459–2669 117 SBNS, 1889–1890, pp. 2459–2669 118 L. S. Stavrianos – The Balkans Since 1453, C. Hurst 118 L. S. Stavrianos – The Balkans Since 1453, C. Hurst & Co, 2000, str. 478 & Co, 2000, p. 478 119 Male novine, 14.4.1890; Domovina, 16. 12. 1889. 119 Lesser Newspaper, 14/4/1890; Fatherland, i 1. 9. 1889. 16/12/1889 and 1/9/1889. 120 Branik, 29. 8. 1891. 120 Rampart, 29/8/1891. 121 SBNS, 1889–1890, str. 2537–2547 121 SBNS, 1889–1890, pp. 2537–2547 122 Trgovinski glasnik, 10. 9. 91. 122 Commercial Herald, 10/9/91. 123 Trgovinski glasnik, 9. 1. 1892. 123 Commercial Herald, 9/1/1892. 124 AS, MF-A, 1892, II, 40, od 8. 1. 1892. 124 AS, MF-A, 1892, II, 40, dated 8/1/1892.

243

ENDNOTES 125 Trgovinski glasnik, 31. 3. 92. 125 Commercial Herald, 31/3/92. 126 Ministarstvo finansija otpravniku u Londonu, 126 Ministry of Finance to the Charge d’Affaires in Lon- AS, MID, I, 160, 1893, br. 6037 od 12.7.1893. don, AS, MID, I, 160, 1893, no. 6037 of 12/7/1893. 127 Srpske novine, 26. 6. 1892. 127 Serbian Newspapers, 26/6/1892. 128 Program vlade {tampan je u Trgovinskom gla- 128 The government’s program was published in Com- sniku, 25. 8. 1892. mercial Herald, 25/8/1892. 129 Trgovinski glasnik, 15. 9. 1892. 129 Commercial Herald, 15/9/1892. 130 Trgovinski glasnik, 10. 9. 1892; L. Pa~u mini- 130 Commercial Herald, 10/9/1892; L. Pa~u to the Min- stru finansija, AS, MF-A, 1892, II, 2, od 10. 9. ister of Finance, AS, MF-A, 1892, II, 2, dated 1892; AS, MF-A, 1892, III, 55, 1. 10. 1892. 10/9/1892; AS, MF-A, 1892, III, 55, 1/10/1892. 131 SBNS za 1893, str. 173 131 SBNS for the year 1893, p. 173 132 Male novine, 10. 2. 1893. i poluzvani~ni list 132 Lesser Newspaper, 10/2/1893 and the semi-official liberala Zastava, 19. 2. 1893. party paper of the Liberals Flag, 19/2/1893 133 Male novine, 1. 4. 1893. 133 Lesser Newspaper, 1/4/1893. 134 V. \or|evi} – Uspomene, kw. I, 1927, str. 42 134 V. Ðor|evi} – Reminiscences, volume I, 1927, p. 42 135 Trgovinski glasnik, 13. 4. 1893; Male novine, 135 Commercial Herald, 13/4/1893; Lesser Newspaper, 22. 6. 1893. 22/6/1893. 136 Male novine, 2. 6. 1893. i 14. 9. 1893. 136 Lesser Newspaper, 2/6/1893 and 14/9/1893. 137 Male novine, 5. 12. 1893. 137 Lesser Newspaper, 5/12/1893. 138 Trgovinski glasnik, 2. 7. 1893. 138 Commercial Herald, 2/7/1893. 139 Male novine, 24. 6. 1894. i 2. 7. 1894. 139 Lesser Newspaper, 24/6/1894 and 2/7/1894. 140 Male novine, 8. 2. 1898. 140 Lesser Newspaper, 8/2/1898. 141 Trgovinski glasnik, 24. 9. 1894, 8. 11. 1894. i 141 Commercial Herald, 24/9/ 1894, 8/11/1894 and 15. 11. 1894, Odjek br. 243 iz 1894. 15/11/1894, Echo no. 243 of 1894. 142 Trgovinski glasnik, 21. 3. 1895. 142 Commercial Herald, 21/3/1895. 143 SBNS 1895, str. 89, 157, 172 i 62; D. Proti} – 143 SBNS 1895, pp. 89, 157, 172 and 62; D. Proti} – The Karlsbadski aran`man i strana kontrola u Carlsbad Arrangement and Foreign Control in Serbia, Srbiji, Nedeqni pregled, br. 11–14/1908 Weekly Review, no. 11–14/1908 144 Trgovinski glasnik, 8. 11. 1897. 144 Commercial Herald, 8/11/1897. 145 Trgovinski glasnik, 21. 3. 1895. 145 Commercial Herald, 21/3/1895. 146 Male novine, 2. 3. 1896. 146 Lesser Newspaper, 2/3/1896. 147 Trgovinski glasnik, 26. 10. 1895. 147 Commercial Herald, 26/10/1895. 148 Srpske novine, 18. 7. 1896. i 20. 10. 1896. 148 Serbian Newspaper, 18/7/1896 and 20/10/1896. 149 Male novine, 1. 11. 1896. 149 Lesser Newspaper, 1/11/1896. 150 Srpske novine, 31. 10. 1896. 150 Serbian Newspaper, 31/10/1896. 151 Srpske novine, 29. 3. 1896. 151 Serbian Newspaper, 29/3/1896. 152 Trgovinski glasnik, 20. 4. 1896, Male novine, 152 Commercial Herald, 20/4/1896, Lesser Newspaper, 23. 4. 1896. 23/4/1896. 153 Male novine, 19. 6. 1896. i 20. 6. 1896. 153 Lesser Newspaper, 19/6/1896/ and 20/6/1896. 154 Srpske novine, 27. 11. 1897. 154 Serbian Newspaper, 27/11/1897. 155 Trgovinski glasnik, 1. 5. 1899. 155 Commercial Herald, 1/5/1899.

244

NAPOMENE 156 Male novine, 6. 5. 1898, 16. 7. 1898, 19. 7. 1898, 156 Lesser Newspaper, 6/5/1898, 16/7/1898, 20. 9. 1898, 15. 10. 1898, 29. 10. 1898, 20. 11. 19/7/1898, 20/9/1898, 15/10/1898, 29/10/1898, 1898, 17. 12. 1898. 20/11/1898, 17/12/1898. 157 Trgovinski glasnik, 20. 6. 1900. i 24. 8. 1900. 157 Commercial Herald, 20/6/1900 and 24/8/1900. 158 N. Jovanovi} – Prakti~na pouka o gajewu duvana, 158 N. Jovanovi} – Practical Instructions on Tobacco 1905; S. Gavrilovi} – Sušewe duvana i Growing, 1905; S. Gavrilovi} – Tobacco Curing and najprakti~nije sušnice, 1892, str. 12 the Most Practical Curing Sheds, 1892, p. 12 159 Trgovinski glasnik, 13.4.1893, 8.11.1897. i 159 Commercial Herald, 13/4/1893, 8/11/1897/ and 6.11.1897. 6/11/1897. 160 Trgovinski glasnik, 9.4.1893. i 13.4.1893. 160 Commercial Herald, 9/4/1893/ and 13/4/1893. 161 Trgovinski glasnik, 12.1.1899. 161 Commercial Herald, 12/1/1899. 162 Trgovinski glasnik, 18.3.1897. i 20.3.1897. 162 Commercial Herald, 18/3/1897/ and 20/3/1897. 163 U. Staji} – Monopolska uprava i proizvodwa 163 U. Staji} – The Monopoly Directorate and Tobacco duvana, Ekonomist, br. 9, 1924, str. 768 i Production, Ekonomist, no. 9, 1924, pp. 768 and 770–771 770–771 164 SBNS 1889–1890, str. 5061–62 164 SBNS 1889–1890, pp. 5061–62

245

ENDNOTES Izdawa CLDS-a Publications of the CLDS

Kwige Books David Boaz: Libertarijanizam (2003) David Boaz: Libertarianism: A Primer (2003) Dragan D. Laki}evi}: Metoda i politika (2003) Dragan D. Lakicevic: Methods and Politics (2003, Serbian only) Majkl Burda i ^arls Viplo{: Makroekonomija (2004, Michael C. Burda i Charles Wyplosz: Macroeconomics: A dva izdawa) European Text (2004, two editions) Branislav Krsti}, Qiqana Stepanovi}: Avio- Branislav Krstic, Ljiljana Stepanovic: Airline Industry in saobra}aj u turbulencijama (2004) Turbulences: Some Elements for Airline (2004, Serbian only)

Studije Studies Zajednica Srbije i Crne Gore – predlog ustavne The Union of Serbia and Montenegro – Proposal for rekonstrukcije SR Jugoslavije (2000, dva izdawa) the Constitutional Reconstruction of FRY Upravqawe lokalnom zajednicom – putevi (2000, two editions) ka modernoj lokalnoj samoupravi (2000, dva izdawa) Local Community Governance (2000, two editions) Novi model privatizacije u Srbiji (2000) The New Model of Privatization in Serbia (2000) Korupcija u Srbiji (2001, dva izdawa, Corruption in Serbia (2001, two editions, Winner nagrada Sir Antony Fisher) of the 2002 Fisher Award) Osnove reforme trì{ta rada u Srbiji (2001) Labor Market Reforms in Serbia (2001) Siroma{tvo u Srbiji i reforma dràvne pomo}i Poverty in Serbia and Reform of the Governmental siroma{nima (2002) Support to the Poor (2002) Ustavno preure|ewe Savezne republike Jugoslavije Constitutional Reorganization of the Federal Republic (2001) of Yugoslavia (2001) Prilozi za javnu raspravu o institucionalnim A Contribution to a Public Debate on Institutional reformama u Srbiji (2002) Reform in Serbia (2002) Principi modernog upravqawa lokalnom Principles of Modern Local Community Governance zajednicom (2002) (2002) Antimonopolska politika u SR Jugoslaviji: Competition Policy: An Introduction – Existing Market analiza postoje}ih trì{nih struktura i Structures and Competition Institutions (2002) antimonopolskih institucija (2002) Corruption at the Customs (2002) Korupcija na carini (2002) New Competition Policy – a Policy Paper (2003) Nova antimonopolska politika – predlog Regionalization of Serbia (2003, Serbian only) re{ewa (2003) Improving Corporate Governance (2003, Serbian only) Regionalizacija Srbije (2003) Poverty and Reform of Financial Support to the Poor Unapre|ewe korporativnog upravqawa (2003) (2003) Siroma{tvo i reforma finansijske podr{ke Citizens and Competition Policy in Europe (2003) siroma{nima (2003) Strategy for Reforms (2003) Gra|ani i antimonopolska politika u Evropi (2003) Reform of Taxation System (2003) Strategija reformi (2003) Ethics of Public Speech in Media and Politics (2004, Reforma poreskog sistema (2003) Serbian only) Etika javne re~i u medijima i politici (2004) New Law on Enforcement Procedure (2004) Novi zakon o izvr{nom postupku (2004) Corruption in Judiciary (2004) Korupcija u pravosu|u (2004) Reform of Taxation System 2 (2004) Reforma poreskog sistema 2 (2004) Transportation Economics Policies for Serbia (2004, Saobra}ajne ekonomske politike u Srbiji (2004) Serbian only) êtiri godine tranzicije u Srbiji (2005) Four Years of Transition in Serbia (2005) Lokalni ekonomski razvoj (2006) Social Protection at Local Level – Experiences of the EU Socijalna za{tita na lokalnom nivou – iskustva Countries (2006) zemaqa EU (2006) Local Economic Development (2006) Neka pitawa javnih finansija (2006) The Issues in Local Public Finances (2006) CIP – Katalogizacija u publikaciji Narodna biblioteka Srbije, Beograd

633.71(497.11) "18" 663.97(497.11) "18"

MIJATOVI], Bo{ko Duvan i srpska dr`ava u XIX veku / Bo{ko Mijatovi} ; [autorske fotografije Neboj{a Babi}, Slavko Milenkovi} ; prevod Marija Rosi}] = Tobacco and the Serbian State in the 19th Century / Bo{ko Mijatovi} ; [original photographs by Neboj{a Babi}, Slavko Milenkovi} ; translator Marija Rosi} ]. – Beograd: Centar za liberalno-demokratske studije = [Belgrade] : Center for Liberal-Democratic Studies, 2006 (Beograd: Cicero). – 245 str. : graf. prikazi, fotogr., faks.; 24 cm

Uporedo srp. tekst i engl. prevod. – Tira` 1.100. – Napomene i bibliografske reference uz tekst. – Napomene: str. 239–245.

ISBN 86-7415-082-09

1. Up. stv. nasl. a) Duvan – Gajewe – Srbija – 19v b) Duvanska industrija – Srbija – 19v

COBISS.SR-ID 129534988