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
Imperial Crown of Russia ceremonial collar), the Crown of Monomakh, sceptre, and orb. Over the centuries, various Tsars had fashioned their own private crowns, modeled for the most part after the Crown of Monomakh, but these were for personal use and not for the coronation. In 1719, Tsar Peter I the Great founded the earliest version of what is now known as the Russian Federation's State Diamond Fund. Peter had visited other European nations, and introduced many innovations to Russia, one of which was the creation of a permanent fund (фонд) to house a collection of jewels which belonged not to the Romanov family,