He established a board of trade, which was composed of one half natives, and the other half foreigners, in order that justice might be equally distributed to all artists and workmen. A Frenchman settled a manufactory for making fine looking-glass at Petersburg, with the assistance of prince Menzikoff. Another set up a loom for working curious tapestry, after the manner of the Gobelins; and this manufactory still meets with great encouragement. A third succeeded in making of gold and silver thread, and the czar ordered that no more than four thousand marks of gold or silver should be expended in these works in the space of a year; by this means to prevent the too great consumption of bullion in the kingdom.

He gave thirty thousand rubles, that is, about one hundred and fifty thousand French livres,[110] together with all the materials and instruments necessary for making the several kinds of woollen stuffs. By this useful bounty he was enabled to clothe all his troops with the cloth made in his own country; whereas, before that time, it was purchased from Berlin and other foreign kingdoms.

They made as fine linen cloth in Moscow as in Holland; and at his death there were in that capital and at Jaroslaw, no less than fourteen linen and hempen manufactories.

It could certainly never be imagined, at the time that silk sold in Europe for its weight in gold, that one day there would arise on the banks of the lake Ladoga, in the midst of a frozen region, and among unfrequented marshes, a magnificent and opulent city, where the silks of Persia should be manufactured in as great perfection as at Ispahan. Peter, however, undertook this great phenomenon in commerce, and succeeded in the attempt. The working of iron mines was carried to their highest degree of perfection; several other mines of gold and silver were discovered, and the council of mines was appointed to examine and determine, whether the working of these would bring in a profit adequate to the expense.

But, to make so many different arts and manufactures flourish, and to establish so many various undertakings, it was not alone sufficient to grant patents, or to appoint inspectors: it was necessary that our great founder should behold all these pass under his own eye in their beginnings, and work at them with his own hands, in the same manner as we have already seen him working at the construction, the rigging, and the sailing of a ship. When canals were to be dug in marshy and almost impassable grounds, he was frequently seen at the head of the workmen digging the earth, and carrying it away himself.

In this same year (1718) he formed the plan of the canal and sluices of Ladoga: this was intended to make a communication between the Neva and another navigable river, in order for the more easy conveyance of merchandize to Petersburg, without taking the great circuit of the lake Ladoga, which, on account of the storms that prevailed on the coast, was frequently impassable for barks or small vessels. Peter levelled the ground himself, and they still preserve the tools which he used in digging up and carrying off the earth. The whole court followed the example of their sovereign, and persisted in a work, which, at the same time, they looked upon as impracticable; and it was finished after his death: for not one of his projects, which had been found possible to be effected, was abandoned.

The great canal of Cronstadt, which is easily drained of its waters, and wherein they careen and clean the men of war, was also began at the same time that he was engaged in the proceedings against his son.

In this year also he built the new city of Ladoga. A short time afterwards, he made the canal which joins the Caspian Sea to the gulf of Finland and to the ocean. The boats, after sailing up the Wolga, came first to the communication of two rivers, which he joined for that purpose; from thence, by another canal, they enter into the lake of Ilmen, and then fall into the canal of Ladoga, from whence goods and merchandizes may be conveyed by sea to all parts of the world.

In the midst of these labours, which all passed under his inspection, he carried his views from Kamschatka to the most eastern limits of his empire, and caused two forts to be built in these regions, which were so long unknown to the rest of the world. In the meantime, a body of engineers, who were draughted from the marine academy established in 1715, were sent to make the tour of the empire, in order to form exact charts thereof, and lay before mankind the immense extent of country which he had civilized and enriched.