lower Don and Dnepr rivers, and the southern Ural Mountains. By 1890 Russia had about 32,000 kilometers of railroads and 1.4 million factory workers, most of whom worked in the textile industry. Between 1860 and 1890, annual coal production had grown about 1,200 percent to over 6.8 million tons, and iron and steel production had more than doubled to 2 million tons per year. The state budget had more than doubled, however, and debt expenditures had quadrupled, constituting 28 percent of official expenditures in 1891. Reforms and their limits Tsar Alexander II, who succeeded Nicholas I in 1855, was a man of a liberal disposition, who saw no alternative but to implement change in the aftermath of the Disastrous performance of the Army, the economy and the government during Crimean War. Alexander initiated substantial reforms in education, the government, the judiciary, and the military. In 1861 he proclaimed the emancipation of 20 million privately held serfs. Local commissions effected emancipation by giving land and freedom to the serfs. The land allotted to the peasants was bought from the owners with the State's assistance. The government issued bonds to the landowners for this purpose and collected redemption payments from the peasants at the rate of 5% of the total cost yearly. The government had envisioned that the 50,000 former landlords who possessed estates of more than 1.1 km2 would thrive without serfs and would continue to provide loyal political and administrative leadership in the countryside. The government also had expected that peasants would produce sufficient crops for their own consumption and for export sales, thereby helping to finance most of the government's expenses, imports, and foreign debt. Reforms of local government closely followed emancipation. In 1864 most local government in the European part of Russia was organized into provincial and district elected self-government (zemstvos), which were made up of representatives of all classes and were responsible for local schools, public health, roads, prisons, food supply, and other concerns. In 1870 elected city councils, or duma, were formed. Dominated by property owners and constrained by provincial governors and the police, the zemstva and duma raised taxes and levied labor to support their activities. In 1864 Alexander II implemented the great judicial reform. In major towns, it established courts with juries. In general, the judicial system functioned effectively, but the government lacked the finances and cultural influence to extend the court system to