History of Russia deficit required borrowing, primarily from Amsterdam; five percent of the budget was allocated to debt payments. Paper money was issued to pay for expensive wars, thus causing inflation. For its spending, Russia obtained a large and glorious army, a very large and complex bureaucracy, and a splendid court that rivaled Paris and London. However, the government was living far beyond its means, and 18th-century Russia remained "a poor, backward, overwhelmingly agricultural, and illiterate country." Peter I was succeeded by his second wife, Catherine I (1725–1727), who was merely a figurehead for a powerful group of high officials, then by his
Catherine I of Russia Order of Saint Catherine was instituted by her husband on the occasion of their wedding. Catherine and Peter had twelve children, all of whom died in childhood except Anna and Elizabeth: Upon Peter's death, Catherine found her four siblings, Krystyna, Anna, Karol and Fryderyk, gave them the newly created titles of Count and Countess, and brought them to Russia. In 1724 Catherine was officially crowned and named co-ruler. The year before his death, Peter and Catherine had an estrangement over her support of Willem Mons, brother of Peter's former mistress Anna, and brother to one of the current ladies in