Liquor monopoly system

At 8 a.m., sunlight streamed into the bedroom through the gap in the curtains, and Nicholas awoke on time.

This was one of the few routines he still maintained from his predecessor's schedule, a habit instilled during his strict and minimalist upbringing as Tsarevich.

In 19th-century European royal families, a militarized approach to education was common, with Romanov princes and princesses accustomed to sleeping on hard wooden beds and taking cold baths.

However, the results of such educational ideals were often less than satisfactory. Alexander III, renowned for his heroism and decisiveness, had a son, Nicholas II, who appeared weak and indecisive. Victoria, known for her marital devotion and moral example, had a son, Bertie, infamous as Europe's playboy. The offspring of the reserved British and stern Prussians, William II, turned out to be flamboyant, arrogant, and indiscreet.

This seemed to be a case of extreme reactions.

After rising, Nicholas dressed himself, taking out his daily wear from the wardrobe beside the suite—an old white long-sleeve shirt and gray trousers. He then drew back the heavy curtains.

The sudden light made Empress Alexandra murmur and turn away from the blinding sun in discomfort.

"Nick... let's sleep a bit longer."

"Do you remember what you have to do today? I've prepared the hunting grounds and stables for you."

Nicholas reminded Alexandra as he returned to the bed, but the sleepy empress merely pushed him away and pulled the covers over her head.

Nicholas opened the window, and the fresh air made the previously stale indoor atmosphere seem even more oppressive.

Servants in Alexander Palace began their busy day as well.

The Alexander Palace had undergone modernization to cater to the new Tsar's preferences, with new washstands and plumbing systems making Nicholas's life more comfortable and familiar.

During the time for morning routines and brushing teeth, the palace staff had already prepared breakfast.

Nicholas's breakfast consisted of milk porridge, boiled eggs, fried sausages, and coffee with two sugar cubes. For Alexandra, the breakfast included French croissants, jam, honey, and hot milk.

Now past the first three months of pregnancy, Alexandra occasionally had morning sickness, a reminder to Nicholas of the new life growing within her.

"I'll check the wine cellar left by my father. You can wait in the carriage, Nana."

"Don't drink too much, Nick."

"Don't worry, I don't drink in the morning."

The Alexander Palace had a vast wine cellar underground, stocked with wines, white wines, brandy, rum, gin, and liqueurs, though Nicholas was not a heavy drinker.

"Get a bottle of white wine for me. I'll have a bit tonight."

Nicholas instructed his attendant.

The couple then took a carriage ride around the gardens surrounding the Alexander Palace.

Alexandra, shaped into a robust woman by her father, the Count of Paris, was adept at horseback riding and hunting. According to Nicholas, her marksmanship with a hunting rifle surpassed his own.

However, now that she was pregnant, horse riding and country hunting were skipped.

"This afternoon, I'll be meeting with some ministers and won't be able to accompany you."

"That's fine."

After lunch, the couple shared a kiss.

Nicholas then went to the study on the side of the Alexander Palace, a large room adorned with portraits of Nicholas I, Alexander II, and Alexander III. There, a minister was already waiting.

It was Sergei Witte, the current chief minister of Russia, undoubtedly the "Prime Minister."

"You've secured benefits for Russia again, Sergei Yurievich."

Nicholas was aware of the recent loan from Russia and France to the Qing court and the establishment of the Russo-Chinese Bank.

"It's my duty."

Witte proudly lifted his head, his gaze seemingly lost in envisioning the boundless future of Russia.

Nicholas smiled and changed the subject.

"Now we should focus on our important business."

"Your Majesty is wise."

The "important business" Nicholas referred to was also Witte's purpose for his visit. After coordinating with the ministerial meetings and adjusting departmental structures, both Nicholas and Witte shared an interest in addressing the significant matter at hand.

"I have already started work on the liquor monopoly during the previous reign."

Witte presented a report on the liquor monopoly system to Nicholas.

"How is the situation?"

"Hmm, not ideal... But it's not due to any flaws in the concept of the system. It's because the four provinces that implemented the liquor monopoly pilot in 1894, along with neighboring provinces that did not, experienced a surge in smuggling. The parallel systems led to unregulated domestic production, causing frequent fluctuations in local liquor prices and harming national wealth."

Nicholas reviewed the report. As Witte had said, provinces with liquor monopolies were smuggling spirits through various channels, including waterways, railways, and land routes, despite police and tax officials' efforts to curb it.

"So, if we are to adopt a liquor monopoly, it must be implemented nationwide swiftly and decisively."

"Why should we eliminate private taverns?"

Nicholas kept reading and found that the report diverged from his initial expectations.

"Because the purpose of the monopoly is to combat alcoholism."

Witte looked at Nicholas with surprise before suddenly realizing.

"Your Majesty, do you still hold the old view? Excessive drinking among the people brings various misfortunes to the nation."

Sometimes Witte's stubbornness required Nicholas to explain further.

"I have previously stated that combating alcoholism isn't about imposing prohibitions or raising prices. It's poverty that drives people to alcohol, so only by making the populace prosperous and happy can we steer them away from alcoholism. Witte, don't miss the forest for the trees."

Nicholas believed Witte's approach was to treat symptoms rather than addressing the root causes, similar to encouraging higher birth rates without discussing the economic factors causing the decline.

Such superficial governance was not what Nicholas desired.

"It can be divided into two types. One is state-run taverns, where drunks can drink in the tavern rather than in the streets." Nicholas recalled news of people freezing to death after getting drunk in winter, "The other can be privately owned taverns with official licenses, buying government liquor and earning a commission on sales."

"Indeed, Your Majesty."

Witte nearly protested but ultimately conceded.

"Additionally, the revenue from the liquor monopoly must be allocated to local governments to compensate for the loss of liquor tax revenue."

Nicholas did not trust the central government's administrative efficiency to manage local affairs effectively, a concern highlighted by the 1892 famine relief efforts.