The town was founded in 1728, as an _entrepôt_ of the caravan trade with China, and to that alone does it owe its importance. Tea has always been much the largest item in this trade, and although Kiachta must continue to command the trade between China and Eastern Siberia, the direct importation of sea-borne teas to the Baltic ports cuts off an important source of prosperity from Kiachta. The mercantile community have, up to last year, endeavoured to compete with their rivals, and pushed into China to purchase the tea in the same markets; but the conditions of the trade are so much altered that they are deprived of their former facilities for bartering Russian produce, and in other respects the caravan trade is too heavily weighted ever to compete successfully with the long sea route. Even in Russia, wedded as the masses are to prejudice, common sense must gain the day in the end, particularly where roubles and kopeks are in question. We did not grudge ourselves a few days' rest at Kiachta, considering we had accomplished the most tedious part of the journey, and henceforward would get over the ground as fast as horses' legs could carry us. But no such luck was in store for us. The first news we had from the commissary and others, was that the whole country between the shores of the Baikal lake and Kiachta was inundated by the flooding of the river Selenga. It seemed that our adverse fortune was to follow us along the whole journey. We need not have been surprised, however, at the intelligence we received of the condition of the Selenga, since into it all the rivers we had crossed in Mongolia discharge themselves. The post from Europe was long overdue, and no news had been received from the Baikal for ten days. We were constrained perforce to remain quiescent until the waters should subside, and a day or two after our arrival a courier who came with the missing mail reported a slight improvement in the communication, he having succeeded in carrying the mail in small boats from station to station. Our time was not, however, misspent, for we had a number of preparations to make for our journey. In the first place we had to exchange our Chinese silver into Russian paper money. We were prepared of course to lose on this operation, but were agreeably surprised to find we had got off with only about one per cent. For one tael of sycee we received 2_r._ 15_kop._, which, at the then value of three shillings to the rouble, gave us 6_s._ 5-4/10_d._ for our tael, which was worth roundly 6_s._ 6_d._ We had then our ponies and carts to dispose of, and my pony was quickly sold for ten roubles, of which my share was eight, that is twenty-four shillings for what cost thirty-two,--so far so good. But, when we came to offer the carts for sale, difficulties presented themselves. No one had ever heard of such articles being sold in Kiachta. This seemed strange, for the Chinese--if not the Russians--use no other conveyance in their frequent journeys to China.