in cash for payments in kind (especially the share of the flocks). There
was not nearly enough Russian money in circulation to allow the
government to demand payment in rubles, although the government
preferred that taxes be paid in that form when possible. Most ordin-
ary peasants and pastoralists had difficulty acquiring enough of the
local currency to pay the taxes, and the cash equivalents set for
natural goods, especially sheep, were excessively high.^3
Except for the apex of the social structure—the khans, whose posi-
tions were eliminated for political reasons—the social structure in the
new provinces was changed only slightly during the first generation
of Russian rule. Direct Russian rule was accompanied by the confis-
cation of the khans' land holdings and other property, but some of
the relatives of the dispossessed khans made their peace with the new
regime and received pensions or had successful careers in Russian ser-
vice. Sons or other relatives of several khans entered the Russian army
or judiciary and achieved positions of high rank and trust. One of the
sons of Mostafa Khan of Shirvan (who had fled to Iran with his father)
returned home after the Second Russo-Iranian War, served in the
Russian army in the war to subdue the high Caucasus, and was pro-
moted to colonel. A grandnephew of Ebrahim Khalil Khan of Qara-
bagh was decorated for his role in the siege of Sevastopol in the Cri-
mean War. Many notables also found it worthwhile to cooperate with
their new masters. Of course, the Russians needed them to carry out
most of the administrative duties, which meant that the political
change at the top did not necessarily alter their standing. Since the
Russians had confiscated lands belonging to political opponents, one
of the most common rewards for cooperative begs was the grant of
land (either the income from land or possession conditional upon ser-
vice). Begs who participated in the widespread anti-Russian activities
were punished by loss of status and lands. The new government also
raised some local supporters to the status of beg and gave them land
grants as well. However, many of the inhabitants regarded this group
of people with contempt. At least in Elizavetpol' and perhaps else-
where, the Russians were more likely to favor Christian supporters
than Muslim supporters. The violent circumstances of the Russian
takeover greatly impeded a variety of economic activities in a host
of ways, from the destruction of artisans' workshops to the flight of
agricultural laborers, and consequently reduced the profits of many
merchants. However, Russia's policy was not deliberately hostile to-
ward local merchants. Caucasian Armenian merchants were among
those who competed successfully for the purchase of concessions,
and some of the more successful local merchants received various re-
148 The Consequences of the Struggle