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THE ECONOMIC POLICY OF THE SOVIET GOVERNMENT
From "Soviet Russia".
The economic policy of the Soviet Government
was established in the midst of incessant fighting,
when the entire country was a vast military camp,
and the problems of the war were paramount. To put
this policy into practice demanded an intense ap
plication of forces to overcome internal as well as
external resistance. The carrying out of this policy
was hindered as much by the attacks of the counter
revolutionists as by the open and secret sabotage f
the superior technical personnel; inertia and prejudice
were the enemies to be fought in a difficult struggle.
The Soviet organs which direct the economis lift
are based upon trade union organizations. From top
to bottom the system of direction is constructed
npon trade union organizations. From top to bottom
the system of direction is constructed upon this ba
sis. At the head of the entire administration is the
Supreme Council of National Economy; in the pro
vinces the local Councils of National Economy.
All the activities of the Supreme Council of Na
tional Economy are supervised by a Bureau com
posed of eleven persons. Corresponding to the various
branches of industry: metallurgical, chemical, textile,
electro-technical, etc., the Supreme Council of Na
tional Economy is divided into fifty sections of
production, at the head of which are the Committees,
each composed of from three to seven persons.
The appointment of the president of the Suprlme
Council of National Economy are approved by the
stitute, are ratified by the Central Executive Com
mittee of the Soviets of all Russia; that of tb.1
members of the Bureau by the Council of People's
Commissaries. But the candidatures are usually sub
mitted before ratification to the general Council of
Kussian labor unions.
All the sectional committees of the Supreme
Council of National Economy "are opproved by the
Bureau, but never until after a preliminary under
standing with the corresponding syndicate. The work
ers as well as the specialists (engineers, technicians ;.,
have members in all the committees and in the
The local Councils of National Economy are the
executive organs of the Supreme Council of Na
tional Economy, and are organized on the same basi3
as the latter, though being more restricted.
The management of the factories and administra
tion for the -various state enterprises and trusts ifi
composed in each case of from five to seven mem
rjWffr f TOrfcf II tU ts.eciaiists); but they are sanction
ed by the corresponding section of the Supreme
Council of National Economy or of the local Connsil
tf National Economy only after a preliminary under
standing with the corresponding syndicate.
A great number of specialists are on the Co
mittees and in the management of factories: as
many as sixty per cent are specialists and forty per
cent are workers.
Thus the Soviet power replaced the system of
capitalist direction by the Soviet system, which
planted deep roots in the farthest corners of our
economic life. Despite the difficult external and
internal conditions this system is accomplishing itl
To sum up these two years of struggle, 'he
means of production passed almost entirely from the
hands of the capitalists and proprietors into those of
society personified in the Soviet organs.
Nationalization of the factories, shops, mines,
etc., was brought about first in the principal branch
es of industry and in the most important enterprises.
False information has often been circulated in
Western Europe with regard to this nationalization,
which, it was said, followed no fixed plan. This
is a falsehood without foundation.
Nationalization, especially beginning with the
second half of the year 1918, was brought about in
accordance with a fixed plan embracing the indust
rial branches and enterprises most important and in
dispensable for the organization of the national
As to the "small trades'' and the cooperatives,
not only were they not nationalized, but they were
protected by special decrees and dispositions.
The following tables gives and idea of the pro
portionate figures for nationalization in the course
of the last two years:
Nationalization During the Years 191S-1919.
1. Enterprises 4,000
2. Merchant marine construction 16,000
3. Private property 600,000,000 hectares
4. All the banks of all cities.
These figures are a little short in the case of
the enterprises. 4,000 enterprises are under the Su
preme Council of National Economy, but in the pro
vinces many nationalized enterprises, being under
the direction of local organs, do not figure in the
statistics drawn up by the central organs.
It may be said with certanty that ninety per
cent of industry is nationalized.
The Soviet power inherited from Capitalism en
terprises isolated and deprived of connecting bonds.
Its task, as indicated above, was to construct an
organization of national economy based upon socialist
It was indispensable that there be organized and
created in the domain of industry and that of rural
economy associations of isolated enterprises, that
they be provided with fuel and basic materials,
and their financial system constructed upon new
In resume of all the innovations introduced in
the domain of national economy in the course of
these two years (1918-1919) we hare the following
There were organked:
I. In Industry.
1. State trusts 90
2. Factory administrations 4,000
3. State systems for the provision of wood, wool,
II. In Rural Economy.
1 Soviet exploitations 2.399
2. Rural communes and associations 5,961
li this manner industry and rural economy
during these two years were not only placed under
the direction of the organs of the proletarian dic
tatorship, but also reorganized internally with re
ference to production. A concentration of production
was brought about. Trusts like that of the elcetro
lecboical industry, uniting without exception all the
enterprises which fought one another in pitiless
rivalry before tho October devolution, or like the
State trust for machine Construction, comprising six
teen of the most import, enterprises, represent a
result unprecedented in toe economic world.
The situation is aim lar in the nationalized en
terprises of the textiAi ndustry, to the number of
more than 500, dividjl fato forty different associa
tions each embracing-: everal enterprises and all
directed by a " principal management.
Prom the point of Mew of finance, provisions,
registration, the rcceptionof products, etc., the organ
isation of industry $tc trusts was of enormous
...Kantase The regufcti? of accounts between the
nationalized enterprises' associations t:il..-s
place only in the books 'k1 without the payment o"
Owing to t! s system the distribution of fuel and
lia-ic materials becomes orc equal and rational. If
.,no considers the etro'ly difficult situation in
which Soviet RussisjKa. placed, during these last
two years, in the nW of fuel, having at her
disposal only ten pertt of indispensable coal and
only ninety-three million poods of naphta in lieu of
the 400 millions neclStfy each .'year, orc can see
that only the centraljia'.ion of distribution and a
certain economy havefciled us to evade a terrible
fuel crisis. As for the ifliitribution of raw. materials,
PREPARATION OF FUEL AND RAW MATERIAL
(Quantity in Poods)
. Products 1918 1919
L Soal (regions of MoScow and Borovichi almost 30 million almost 30 million
2. Wood (in stock and reserve) ! 4 mill. cu. sazhins 5 mill. cu. sazhins
3. Peat 58 million 60 million
4. Naphta 93 million Baku occupied by English
B. Raw Materials (in the stores of the S. C. of N. E.)
1. Flax 5 million
2. Cotton 2,784 million(f) 6 million (with Turkestan reserves
3. Wools 2 million
4. Hemp .2 million
5. Hides 5,461,000 pieces 2,365,800 pieces (for six months)
6. Metals (reserves) 30 million 40 million
that was organized in
In the sphere of
of Soviet exploitations
it possible not only to
economy the organization
ect by Soviet organs made
tect agriculture, the great
land properties, but also-permitted the industrial pro
letariat to take part for tb forst time in agricultural la
bor, and created also for the first time solid ties be
tween industry and agricultural exploitation, between
the city and the country.
At present nearly three million hectares are al
ready in the hands of Soviet exploitations and
Returning to the economic situation and the re
sults of the economic activities, we should indicate
first that this situation, as a result of our activity,
depended upon changes brought about by the civil
The Don Basin, the Urals, the Caucasus, the
principal sources of fuel and raw material of coal,
naphta, iron, cast-iron, steel passed from nr.d to
hand. For a certain length of time they fell again
to the Soviet power, but new assaults by the White
Guards deprived us of them, ruining organized pro
duction and taking from us accumulated reserves.
As a result tho center of Soviet Russia became
cur principal base. ,
The loss of the Don Baran' meant for us the loss
of eighty per cent of all our coal; the occupation
of Baku by the English deprived us of naphta: the
occupation of the South and the Urals of metals.
It is easy thus to realize the difficult conditions
under which our economic life developed.
But in addition to territorial conditions, our
economic situation was influenced by the fact that
we had again to mobilize our industry and employ it
for the needs of war. .
Such are the conditions under which our eco
nomic activity was developed and our progress
brought to realization.
The following figures characterize the principal
branches of our economic activity where it was
pursued without interruption during these two years:
The above figures are only for fuel and rew
material accumulated and utliizated by the Supreme
Council of National Economy.
We can see that the situation has become worse
in the matter of fuel because of the loss of the
naphta. In 1918 we could transport the naphta from
Baku, but in 1919 we did not receive any at all.
Owing to this circumstance we were obliged to
use wood fuel for the railroads and other enterprises,
and this was the cause of the famine in fuel for
dwellings. Before the war no more wood was pre
pared than now: from four to five million cubic
sazhins, but then there was coal, and naphta which
served industry, and the wood was used principally
to heat dwellings; now wood is the principal fuel.
As regards peat, the situation has improved, and in
1919 it was prepared in greater quantities (1918
fifty-eight million poods; in 1919 sixty million
poods). The preparation of raw material for our
textile industry was sufficient, and the industry is
fully provided for. Flax and furs have accumulated
in such great quantities that it would be easy to ex
port them abroad.
With regard to metals the situation has become
difficult, we have utilized our old reserves all this
lime. With the retaking of the Urals and the de
feat of Kolchak, the situation has improved and
we are receiving metals from tho Urals.
In short, the system of provisioning under Soviet
rule functions perfectly and is solidly constructed.
The latest statistics indicate that more than a
million workers (excluding those employed on rail
roads, commerce, etc.), are at the present moment
working in the industries of Soviet Russia. (The
figures are incomplete.) In certain branches of in
dustry (in the miners of the region of Moscow, in
the electro-technical industry) all the enterprises are
operating without exception; in others, in the
textile industry for example almost fifty per cent
of the enterprises are at a standstill, but it is im
possible to name a single branch of industry which
has ceased completely. The facts do not show it.
In short, the total number of salaried workers (work
ers and employees) roaches the minimum number ' of
three million men. In certain spheres progress oven
may be claimed. During these two years our economic
organs undertook the organization of fifteen import
ant enterprises several of which are already com
pleted and operating. At PodolBk (province of Mos
cow) a great factory for the repair of locomotives
has been constructed and is already operating; as
is a cartridge factory at Simbirsk. Two great electric
al stations, one at Kachira, the other in the marsh
of Cbatour, arc being completed. The construction f
a factory of agricultural machinery and implements
has commenced at Saratov.
But the most important enterprise is the exploi
tation of schist depOsists in the provinces of Samara
and Kazan, an enterprise begun in 1919. Severaft
mines are already being exploited.
Let us cite here the figures relative to the prin
cipal branches of industry serving military as well as
Production and Reserves in 1919
Average monthly production 14 million arzhins.
Reserves nearly a milliard arzhins.
Production during the campaign 1918-1919:
In Soviet Russia 4 million poods.
In Soviet Ukraine 10 million poods.
Production in 19181,032,23 boxes.
During six months in 1919412,809,000 boxes.
Monthly production 20 to 25 thousand poods.
More than 10 million poods have been extracted.
These products are distributed in accordance with,
a definite plan. First the Red Army is provided, then
the workers, and finally, the rest of the population.
Let us consider now the question of food.
During these tT7o years the most difficult prob
lem was that of food. The regions most rich in
wheat, such as the territory of the Don, South Russia,
the territories beyond the Volga, and Siberia, were
eitber in the hands of the enemy or were passing
from hand to hand.
When after the October Revolution, we took
over the power there were almost no reserves of
bread. The harvest of 1918 had a yield above the
averago (in twonty-five provinces of Soviet Russia it
reached 1,235 million poods). The system of rationing,
which was organized about this time could store 10t
million poods. This permitted us in the second half
of 1918 and in 1919 to improve the bread ration for
the population compared to the first half of 1918.
The harvest of 1919 was also above the average, oi. 1
besides, the whole region beyond tho Volga and a
part of Siberia passed into our hands. This year wo
hope the grain reserves will surpass those of last
year. Difficulties are encountered principally in trans
portation for the war. But thanks to the consolidation
of the distributing system an improvement may be
expected, not very great it is true, but an improve
We have cited figures relating only to the princ
ipal branches of industry, taking for a basis tho
average monthly production. Wo have described
only the general economic situation in Soviet Rus
sia, and we have summarised the results of our
activity in the economic sphere during tho last two
years. But it is needless to say that we could not
here include all that has been accomplished by the
working masses in the titanic creative work of tho
new life which is in the making under our oyos.
RUMINATIONS OF A REBEL
By Tom Clifford.
The Supreme Lodge of The Bel-.
Iigerent Jlellyncners oi America mei in
Chicago and put their complaints into
concrete form. They not only did thnt.
by heck, but they nominated a
candidate for President to see that
their complaints are listened to by the
capitalists who control the government
and will still control it even though
their candidate were elected. The
Furmer Labor Party will shoot its
wnd in November and then quietly die
of sleeping sickness. None of these
malcontents express dissatisfaction
with the capitalist system of produo
tion, in the absence of which it may
be iiesumod that they nre merely out
of harmony with the political admi
nistration of the capitalist state. The
quasi radicnl voter will find it
somewhat perplexing to choose between
the platform of the Farmer -Labor
Party and the Socialist Party. The
'iinmunist however, is immune to
this reformists rubbish. His attention
is unalterably fixed on the one
economic demand the earth and the
fullness thereof for the working class.
Still, the coming election will be a
magnificent political scrap, out of
which will be born thousands of class
counsciodj rebels. Watch us grow.
Credit is due the Single Taxors for
the judgement displayed in rofiisin.;
to ro operate with the other insurgent
elements. They realized that their
reform would receive but little con
sidemtlon if associated with the others,
and accordingly they decided to go
it slone. Thus wss another political
party born. The Single Taxers havo
for many years threatened to tako this
step, and it remains to be seen whether
this new departure will be productive
of better propaganda for their hobby
than playing ball with the Democratic
Party. Whatever the Communists may
think of the Single Tax Theory, it
roust be admitted that its adherents
at least condemn the first of the cap
italist trinity rent, interest and pro
fit, nonry George held that rent de
rived from land was income thut the
owner did not cam. Ho contended that
rent was wholly a social product, and the
refore should go to its creator tho cob
mmunity. George wat not a Commun
ist, becouso he did not apply this
theory of rent to interest and profit.
These he would leave as private posses
sions. Tho Communist insists (and
both logic and common sense harmon
ize with the deduction) thnt not only
rent, but likewise Interest iind profits
on goods made for the market, arc
social products. In common with rent
the represent unearned increment.
They, too, are social rather than in
dividual products, and should therefore
fiass to their owner society. The
Single Taxer is afflicted with mental
Htrabismuf. He needs a new pair of
Now that the Soviet armies have
driven the invading Poles from Russia
and threaten to carry the war into tho
front yard of the Allies' protege, the
bourgeois governments of Europe are
clamoring for an armistice. So long as
M Poles were suceessful sot a "peep"
for cessation of hostilities came from!
Grent Britain or France. On the con
trary those countries were spending
millions to maintain the Polish armies
in the field and were using Poland as
a possible moans of destroying the
Soviet Republic. They arc now plead
ing with the despised Bolsheviks to
"tay their vengeance on the invadors
end bo merciful. This is the regular
bunrgcois procedure. When they havo
tho power it is wielded mercilessly.
Met with successful resistance they
tremble ilke the curs they arc and beg
for mercy. Neither is any sympathy
due the Poles, for they lent themselves
willingly to the schemes of the Allies.
Not satisfied with the territory accord
ed them by tho Pence Council, tho
bourgeoisie in control launched a war
of conquest to augment the same, and
as an afterthought the AKies financed
tho venture in the hone of amUni
the hated Soviet government The Polos!
are simply getting what is coming to
them. They merit no mercy at the
bunds of the red nriny.
One of my best sources of amuse
ment is the perusal of the letters con
tributed to the daily newspapers by
people who think they have ideas.
Therein I find expressed mostly the
bigotry and intolerance that indi
cate ignorance of general truths. On
questions of local import the opinions
aro as varied as the individual wants
of the contributors, showing that
economic determinism is the main
factor in moulding conceptions of
right. Then there is tho religious
"nut" with his Biblical panacea for
all our industrial woes. Verily, ao
thinker need suffer for entertainment
while the "Contributors' Column" re
mains a feature of the newspapers.
Country Daily Would Murder
The following, referring to Linn A.
E. Gale, publisher of "Gale's", a
Communist monthly originally publish
ed in New York for a year, and
published in Mexico City for the last
two years, is taken from the June 19
issue of the Sun, a country daily pu
blushed at Norwich, New York. It
is interesting to noto that Gale had
his first experience as a cub roporter
on the paper in question, graduating
to large cities and settling first in
Albany and later in New York City.
The Norwich 8un published many com
plimentary things about him until he
left tho Democratic Party and became
a Communist then its policy chang
ed. Before he was a Radical, Galo was,
in the estimation of the Sun, a "bril
liant writer", a "capable editor", ete.,
and hln word was "as good ns his
bond." After he became a revolution
ist, all this changed. It is evident that
Hale's p,.n is sufficiently vigorous to
hurt the lnls of capitalism, else such
a nasty yelp would not have been
Here follows the editorial in pnrt:
"That nucb a vile, contemptible
specimen of humanity as Linn A. K
Gale, publisher in Mexico City of
'Gale's Magazine', is permitted to live,
move and have bit being, Is a thing
thi t passeth all human understanding.
"Copies of his riot breeding public
ation made their appernnce in this
country yesterday and, iwrry to say,
one found its way to the deak of the
editor in chief of the Norwich Sun.
"Its pages are filled with tho usual i
scandalous assaults upon all decent
and liberty loving inhabitants of these
glorious United States.
"Gale and his seditious sheet should
be silenced forever and if he were
given his just deserts, HE WOULD
BE BLINDFOLDED WHILE STAND
ING BACKED TO A MEXICAN
WALL, FACING. A FIRING SQUAD
THAT HAS BEEN ORDERED TO
DELIVER SWIFT AND EVERLAST
ING RETRIBUTION. Or he should be
brought back to this country and I
have his ckull which encloses a per
verted brain, capped with the iron
hood attached to the end of nn electric
"At least he should be confined to
a solitnry cell upon bread and water
in order thnt hit disenssod grny
matter which guides his vitriolic pen
may not cause further trouble hero or
"The devil is a cunning fighter and
It is no easy mntter for moro man to
stand up before him and say "bo
gone." BUT IN THIS MAN OALE
HIS SATANIC, MAJESTY HAS A
DANOEROU8 lAftTHLY RIVAL
WHO WILL SOONER OR LATKR
USURP THE POWERS OF THE ONE
"WITH GALE AND HIS MAGA
ZINE flourishing unmolested.
MEPHIBTOrilELES MIGHT JUST
A8 WELL BANK THE FIRES OF
IIKI.L. OFFER THE PLACE FOR
RENT, AND EMBARK IN LOME
BUSINESS WOR8E THAN MURDER
IF HE EVP.It EXPECTS TO OUT
STRIP HIS RIVAL, EDITOR LINN
A. E. GALE, THE SELF NT V LED
REFORMER OF THE WHOLE
But for fear that this invitation to
murder Galo would not be sufficient I;
explicit, the same paper under date
of July 2, said:
"A man of finle's type is a canc
er THERE IS BUT ONE WAY
TO DISPOSE OF THE BENDICT
ARNOLDS THAT INFEST THIS
COUNTRY AND WHO SOMETIMES
SNEAK AWAY TO OTHER LANDS
TO SAVE TnEIR 8KINS I KNOW
THAT WAY SO DO YOU! NOW
WHAT ARE YOU GOING TO DO
ABOUT lTt Sit idly by and let him
continue his nefnrious work or muto
out to him the justice ho so richly
deserves! This mutter is eqnarely up
to every true American citizen.
"The writer of this article Is
right here in Norwich rendy to 'do
time' for its publication if needs be
a" . rendy to settle the affair witi
Galo upon the field of honor."
If Gale hud suggested giving such
trectmcnt to a enpjtalist, it is prob
able that he would havo been charged
with Inciting to "force" and "viol
ence" and "trying to overthrow the
Rut when the prostitute press cf
tho capitalists wnnts to resort to
"forco", "violence" or the disregard
of the govornment nnd its lnws, in
order to get revenge on an Influontinl
odltor, nobody thinks of proposing
These excerpts sre interesting as
affording additional proof thnt the
constitution and the Isw arc but
"scraps of paper" between plutocrats.
No Prosecution of Detroit
Detroit, Mich. But few of tho
many hundcrd alien radicals arrested
in the sensntinnnl raids conducted
under the supervision of Attorney
General Palmer arc still in custody nt
Fort Wayne. The majority havo been
released on bail, pending the decision
of the Washington Depnrtmen, and
many more were released because thcro
wasn't n scintilla of evidence to prove
they engaged in or intended to en
gage in illegal activity.
Detroit hns been heralded far and
wide as one of tho big "Red" centers
in tho country. Local and outside
newspapers carried hair thrillers of tho
discoveries made by the department
of justieo agents, which havo now
been proven to be a fiasco. Tho pro
listed "revolt" did not only fail to
materialize, but tho majority of tho
revolutionists were found to be of
the mildest sort, totally ignornnt of
the vast plots thnt they woro sup
posed to have engaged in.
The great store of arms glaringly
reported to have In ell found cached
in the hiding plnces of the local com
munist?, upon roll call wore found to
be a few jack knives, a bayonet pur
chased in an U. S. Army surplus
goods sale for domestic purposes, and
n few antiquated, rusty revolvers,
DTho "mysterious" "beautiful"
red haired women communist, reported
to have attempted to smuggle In a
lot of ranp to the raid victims held
herded for ix days in the Federal
building, wss a department of justieo
agent, intent on playing her part In