The most important industry is the manufacture of clothing and wearing apparel, which employed more than one-third of the Jewish working population and supported more than one-seventh of the total Jewish population. It is in effect a Jewish industry: practically all the tailors and shoemakers in the Pale are Jews. They predominate as well in the preparation of food products, in the building trades, in the metal, wood and tobacco industries.[15] Hampered by legal restrictions, lack of technical education, and lack of capital, they nevertheless have become an essential part of the economic life of the Pale, supplying the needs for industrial products not only of the Jews but of the entire Pale, and, especially of the peasants.
In the development of large-scale industry, the Jews have taken a smaller part than the Germans or foreigners, owing to the conditions above referred to. Yet, in 1898, in the fifteen provinces of the Pale, more than one-third of the factories were in Jewish hands.[16] Jewish factory workers were estimated at one-fifth of all the factory workers in the Pale.[17]
Trade and commerce engage Jews chiefly, supporting nearly two-thirds of the total Jewish population.[18]
As Russia is essentially an agricultural country, trade in agricultural products, such as grain, cattle, furs and hides, etc., is of prime importance. Nearly half of the Jewish merchants in the Pale were dealers in these products. Of the dealers in the principal grain products, Jews formed an overwhelming majority. Relatively twenty-six times as many Jews as Russians, in the Pale, were grain dealers.[19] Four-fifths of all the dealers in furs and hides, three-fourths of all the dealers in cattle were Jews.[20] The Jewish traders are agents in the movement of the crops, in the various stages from the direct purchase of the grain from the peasant to its export for the world markets. In view of the lack of development in Russia of modern methods for marketing the agricultural produce, and in view of the fact that the Russian peasant is ignorant of the most elementary principles of trade, the Jewish merchants, with their knowledge of the market and their skillful use of credit, play a vital part in the organization of the Russian grain trade, and control this trade in the Pale and on the Black Sea.
In other branches of commerce, the Jews are almost as strongly represented. As sellers to the village and city populations, they carry on the largest part of the retail trade of the Pale. The great majority of the merchants, however, are petty traders or store-keepers. The wholesale merchants enrolled in the guilds, on the other hand, constitute a large proportion of all the guild merchants.
Thus, through their activity as petty artisans, traders and merchants, the Jews preponderate in the industrial and commercial life of the Pale. As manufacturers and wholesale merchants they play a less important but nevertheless significant part in all Russia.
In general the Jewish merchants are quite strongly distinguished from the Russian merchants in their employment of the competitive principles and methods common to the commercial operations of Western Europe and the United States. Their principle of a quick turnover with a small profit, and their use of credit, are not in vogue among the Russian merchants who operate on the basis of customary prices and long credits.
In their social characteristics as well, the Jews are strongly set off from the rest of the population. The Jews are essentially urban, the non-Jews are overwhelmingly rural. In all Russia, 51 per cent of the Jews lived in incorporated towns, as against only 12 per cent of the non-Jews. Though the Jews constituted 4 per cent of the total population, they constituted 16 per cent of the town population.[21] In the Pale, where they constituted 12 per cent of the total population, they comprised 38 per cent of the urban population.[22] Their concentration in the cities of the Pale is striking. In nine out of the fifteen provinces of the Pale, they constituted a majority of the urban population. In twenty-four towns, they were from two-fifths to seven-tenths of the population. In the important cities of Warsaw and Odessa they were one-third of the population.[23]
The urban and occupational distribution of the Jews places them higher than the great majority of the non-Jews among the social classes into which the Russian people are legally divided. Townsmen are of a higher rank than peasants. Nearly 95 per cent of the Jews belong to this category and only 7 per cent of the Russians. The vast majority of the Russians—86 per cent—are peasants. Only 4 per cent of the Jews are of this class. Again, 2 per cent of the Jews are merchants, as against only .2 per cent of the Russians. Thus in these two classes of townsmen and merchants there were twelve times as many Jews, relatively, as Russians.[24]
The higher cultural standing of the Jews may be partly measured by the relative literacy of the Jews and of the total population. According to the census of 1897, in the Jewish population ten years of age or over there were relatively one and a half times as many literates as in the total population of the corresponding group. In each of the age-groups there were relatively more literates among the Jews than among the total population. In the highest age-group, that of sixty years of age and over, the Jews had relatively more literates than any of the age-groups of the total population, indicating that the educational standing of the Jews half a century ago was higher than that of the Russian population of to-day.[25]