The daily worker. [volume], April 18, 1924, Page Page Five, Image 5

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Friday, April 18, 1924
Immediate Communist Tasks Under Russia’s Economic Policy
Resolution of the Central Com
mittee of the Russian Communist
Party on "The Immediate Tasks of
the Economic Policy."
„ * * •
(Adopted by the Political Bureau
on December 24, 1923, in execution
of the decision taken by the Ple
nums of the Central Committee and
the Central Control Committee on
October 25. This resolution has to
be submitted for final confirmation by
the Plenum of the Central Committee.
* • •
(Concluded from yesterday.)
V. Home Trade and Co-operatives.
Under the New Economic Policy,
the organization of commerce has a
uniqile importance becouse, by means
of the commercial apparatus, there
must be the closest linking up of the
nationalized industry with the peas
ant market. Every strengthening of
the co-operative and of the state com
merce and every enlargement of the
I Held of their activity imply an en
largement of the sphere of the social
ist economy. Every weakening of the
positions of the co-operatives and of
the state commerce and every
strengthening of the positions of the
private middle man, cealer and mer
chant imply an enlargement of the
sphere of domination of the bourgeois
capitalist conditions. The support,
therefore, of the co-operatives and the
development of the state commerce,
the winning by them of positions
from the private commercial capital
ists on the basis of competition, the
economic employment of this capital
gained by them, form the most im
portant tasks of the economic policy
of the Party.
In the meantime the crisis has
shown that the co-operatives and the
state commerce are not up to those
tasks which confront them: the tasks
of establishing an immediate connec
tion between the state industry and
the mass consumers.
The insufficient flexibility and the
specialization of the organs, the un
weildiness and the bureaucratism of
the commercial apparatus, the high
rate of the additional expenses, the
Incapability of reaching the mass mar
ket, the insufficient adaptability to
the needs of the scattered many mil
lioned peasantry—all these demands
from the Party a steadfast work for
eliminating these defects resulting
from the crisis. The problems of
commerce confront the Party in all
their immensity.
VI. Private Capital.
The problem of the relation be
tween state and private capital
forms, at the present time, the most
important problem in the sphere of
economics, and it is decisive for the
relation between the class forces of
the proletariat, based on the nation
alized Industry, and the new bour
geoisie based on the elementary play
of free competition. By establishing
the basis for the New Economic Pol
icy, which has fully justified itself and
requires no revision leading practi
cally to a return of war Communism,
the Party has not only permitted pri
vate capital to accumulate a certain
amount of capital resources derived
from commerce, but it has also hand
ed over for partial exploitation by pri
vate capital a part of the means of
production at its disposal (conces
sions, leases, etc.). In this latter
sphere the participation of private
capital is both absolutely and relative
ly negljgible. The comparatively more
important role of private capital in
commerce is due to its greater adapt
ability to the retail trade and to the
supplying of the needs of the scat
tered customers in the village.
The state capital cannot take upon
itself the rapid establishment of im
mediate connections with the whole
100 million mass of scattered produc
tive peasantry, but also in this sphere
• the growth of private capital must be
kept within certain limits by means
cf strengthening the economic role of
the co-operatives and of the state
commerce and by means of an adop
tion to the needs and conditions of
trade in the village.
Help Co-Operatives.
One of the principal pre-conditions
for the strengthening of our positions
against private capital must be the
fixing of reasonable prices. The Sov
iet rule having concentrated in its
hanrs tho prrclpal mass of products
which are needed by the village, must
become capable of ensuring that the
state organizations and co-operatives
sell more cheaply than the private
dealer. We must render the mass
. consumer worker and peasant
aware of the superiority of the co
operative and state trade of those or
ganizations based on private capital.
The co-operative organizations are
destined to play the chief role in trade
organization, especially in that of the
I'VOLE WTOOLY’B TRICKS A LAUGH FOR THE CHILDREN
retail trade. A number of measures
must, therefore, be adopted which will
render the co-operativos an effective
weapon for elimination of private
trade capital (state subsidies to co
operatives, in particular, to the work
ers’ co-operatives; transference of
the co-operatives to the principle of
voluntary membership; the greatest
attention must be devoted to enlarg
ing the network of co-operative organ
izations and to strengthening the low
est co-operative nuclei; the realiza
tion of their right to enter into imme
diate commercial relations with the
state Industry; drastic reduction of
additional expenses; greatest possible
reduction of intermediary channels,
thru which the goods are passed on
to the consumer, and the like).
Along with this, in order to render
subordinate the activity of private
capital to the general economic policy
of the Soviet power, a number of fur
ther measures must be adopted for
regulating the prices of the principal
articles of mass consumption. On the
other hand the control over accumu
lation on the part of private capital
must be reached by measures of tax
ation. There must be a drastic tax
ation of luxuries and an intensifica
tion of the struggle against predatory
speculators.
The Party has resolutely abandoned
the policy of grain requisition and the
system of rationing the food supply to
the working population. By allowing
the peasants freely to dispose of the
results of their labor, the Party has
thereby permitted to a certain degree
the participation of private capital in
the exchange of goods and has no
reason for abandoning this policy.
But the Party must systematically
work for strengthening its position in
this sphere also, by a tenacious and
unwearied struggle for the complete
domination of the peasant mass mar
ket.
VII. Financial Policy.
An extraordinarily important gain
for the realization cf the principal
tasks of our economic policy, was ob
tained in the last year by the intro
ducing a stable valuta —of the cher
vonetz, and by making it the funda
mental valuta of the country (out of
350 millions representing the total
amount of money in circulation in the
country, the chervonetz already com
prises 270 millions, i. e. about four
fifths).
The introduction of the chervonetz
and its maintenance as a stable valuta
were only possible as a result of the
progressive increase of our entire
economy and prove the correctness
of our policy of economic reconstruc
tion.
The circulation of the chervonetz
forms, at the present time, one of
the most essential aids for the devel
opment of our economy. The growth
of the state industry mentioned above
during the last year would not have
been possible without the chervon
etz. On the basis of the circulation
of the chervonetz, credits have been
and are being granted to trade, in
dustry and agriculture. The granting
of bank credits to industry and trade
has reached a considerable degree of
development. These credits have
formed a fund for conducting opera
tions, without which the systematic
development of industry and of the
entire national economy would be im
possible. Basing itself on these cred
its, industry has for the first time
been able to develop its production
without any set-backs, and was also
able to accumulate considerable
stocks of goods in anticipation of the
harvest.
Production Efficiency.
The strict accounting, the correct
calculation of the cost of production
and the Introduction of a proper sys
tem of bookkeeping in our factories
and works, trusts, syndicates and
trade organizations, have only become
possible, thanks to the stability of
the chervonetz, and their perpetua
tion and improvement in the future
will only be possible by its help.
The further policy of our Party
must consist of preserving the stabi
lity of the chervonetz, and of perfect
ing the currency reform. The inter
ests of the broad masses demand the
perfecting of the currency reform, i. e.
the substitution of a stable valuta for
the sinking Soviet notes. The per
fecting of thh currency reform must
become one of the principal tasks
of the Soviet power in the next period.
The successful accomplishment of
this task Implies an improvement in
the position of the peasant economy,
a raising of the material position of
the working class, and of the working
strata of the population in general,
and the recovery of our economy as
a whole.
The successful carrying out of the
currency reform, is only possible by
reducing as much as possible the bud
get deficit and by strict economy on
the part of all economic organs. The
struggle against wasteful expenditure
of any kind therefore constitutes an
essential economic requirement.
As regards the state budget, consi
derable gains have to be recorded.
The normal resources of revenue have
increased. The note press is playing
an increasingly less important role
as a means of covering expenditure.
In the future, every effort must be
directed towards increasing the pe
cuniary resources of the state with
out increasing the burden of taxa
tion on the working strata of the pop
ulation, by increasing the yield of
profit derived from the state lands
and undertakings.
Budgets.
At the same time there is an un
doubted improvement in the prepa
ration of the budget estimates them
selves. For some years past the So
viet power has been striving at the
creation of a real budget. But it was
only in the last year that any consi
derable improvements were attained
in this direction. We have for the
first time, budget estimates which cor
respond to the true state of affairs,
and which' to a greater extent than
hitherto permit one to foresee and to
calculate ifi regard to the state ad
ministration and economy.
The introduction of the chervonetz
has, of itself, considerably facilitated
the possibility of proper accounting,
and consequently also of a systematic
control over economy as a whole, as
well as over single undertakings. The
improvement and perfection of the
budget plans have constituted the
next step. But it is only by Improving
and perfecting the currency reform,
that it will be possible, on the basis
Os a stable currency unit, to formu
late effective financial plans for in
dustry and trade, to conduct a cor
rect calculation and to organize a re
liable system of recording and ac
counting.
The currency reform must there
fore form one of the essential pre
requisites for Ihe necessary increas
ing of the co-ordination between the
various parts of the national econo
my, and it will for the first time pro
vide a real basis forth» effective sys
tematic control of economy.
VIII. On the Necessity of increasing
the Basis of Planned Economy.
It would be a fundamental mistake
to assume that, with the preponder
ance of the small peasant economy,
with the increasing importance of
the world market and of its prices in
our economy, the state planned man
agement would be able to exclude the
possibility of crises under the N. E. P.
The present crisis emphasizes, how
ever, the necessity of increasing the
efforts towards co-ordinating the
single branches of the national econ
omy, and extending the basis of plan
ned economy in the work of the stale
economic organs.
In a far greater measure than here
tofore, the Party must learn to co
ordinate the elements of the state
economy in their mutual relations
with the mavket. This task is facili
tated by that fact that we have now
gained considerable successes in re
gard to the creating of fundamental
premises for the management of
planned economy, without which it
could easily transform itself into a
bureaucratic utopia. These premises
for a successful planned economy con
sist of: 1. the creation of a stable
valuta, 2. the organization of credits,
3. the accumulation of material re
sources with which to operate, 4. the
realization and strengthening of cer
tain forms of the organization of eco
nomy (trusts and the like), 5. the ex
istence of a number of individual
plans, constructed on the basis of ex
perience, in the first place of well
founded budget plans and the like.
The existence of these conditions
furnishes the possibility of a far more
successful work than hitherto of the
state organs of planned economy. The
next tasks are the strengthening of
the "Gossplan,” the increasing of its
role in relation to financial and cre
dit policy, the creating of closer con
nections between its work and the
work of the People’s Commissarißt for
Finances, the Superior Council for
People’s Economy, the People's Com
missariat for Agriculture, the Com
mission for Interior Trade and the
like, the strengthening of its local or
gans and the like.
The next task of the "Gossplan”
must be the systematic study of the
current market conjuncture, and the
elaboration of fundamental measures
aiming at influencing the trend of
the market. The “Gossplan” must be
actually guaranteed that position
which was indicated In the resolution
of the 12th Party Congress. The ap
THE DAILY WORKER
pointing of one of the vice-presidents
of the Council of People’s Commissars
as president of the "Gossplan” as
sures the immediate participation of
the "Gossplan” in the solution of all
current questions of the economic
life.
IX. Practical Conclusions.
A. In the Sphere of Agriculture.
1. Intensification of agriculture, de
velopment of the cultivation of raw
materials, of cattle-breeding, etc., by
means of several stimulative meas
ures (alleviation of taxes, credits and
the like);
2. Development of grain export by
every means in order to procure mar
ket for the surplus grain produced by
the peasants, and thereby to gain bet
ter grain prices for peasants’ econo
my; for the same purpose there must
be the greatest possible reduction in
the additional expenses for the pur
chase and transport of grain;
3. To adopt all measures for organ
izing the state grain trade in the
home market in suen rorms as will
guarantee the stability of grain prices
iairangemonts for tho transport of
approji'ute quantities of grain, regu
lation of freight charges, develop
ment of the distribution of elevators,
etc.);
4. Development of a complete sys
tem in the villages of consumers and
agricultural products and for supply
ing to the peasantry the necessary
articles of consumption;
6. The adoption of urgent measures
for the development of agricultural
credits by a central agricultural bank,
and by local credit associations, in or
der before all to supply the peasants,
the peasants’ associations and the col
lective farms with agricultural ma
chines and tools at reasonable prices
on the principle of long-term credit;
6. Beginning with the year 1924,
transition to the levying of a uniform
agricultural tax, calculated in stable
valuta;
7. For the year 1924 there must be
instituted large scale alleviationo of
the agricultural tax for peasant farms
with but feeble resources; the organ
izations of agricultural laborers (All-
Russian Uonfederation of Agricultural
and Forest Laborers) and of the
poorest strata of the peasantry (as the
Committees of Poor Peasants and the
like) must be helped by every means;
8. There must be an end made to
the imposing of non-official supple
mentary levies in the village on the
part of local authorities; voluntary,
levies are only to take place with the
sanction of the central organs in each
single case.
B. In the Sphere of Industry,
1. Rationalization of production and
increase of productivity of labor;
2. Increasing of the tasks prescrib
ed for the various undertakings and
systematic distribution of orders, es
pecially in the heavy industry;
3. Reduction of the additional ex
penses by means of simplification of
the organizations of industry, reduc
tion of the number of employees, etc.;
4. Cheapening of raw material, fuel
and auxiliary materials of industry
by means of reduction of expenditure
in their purchase, as well as by means
of importation of cheap foreign raw
materials;
5. Creation of a well ordered indus
trial calculation with the imposition
of strict responsibility for its cor
rectness; i
6. Exact determination of the rights
and the duties of the managers of the
trusts and of the directors of under
takings, in order fully to liquidate
the remnants of bureaucratic central
ism;
7. Systematic promotion of practical
workers in industry to responsible po
sitions in industrial undertakings and
associations;
8. Every help to be afforded to those
holding responsible positions in the
economic field, in their difficult work
for industrial construction under thp
conditions of a better struggle agaiael
private capital;
9. To increase the participation of
trade unions in the management of
economic organs, in the control of
their activity and in the selection of
economic functionaries;
10. to bring the Party organizi
tions in the undertakings nearer t
production, by means of regular ii
formation being supplied the Part
nuclei regarding the progress of th
work in the undertakings and associe
tions, by means of a free discussioi
regarding all sides of the activity o'
the economic organs and by means o
stimulating the initiative of the com
rades as to seeking moans for the lm
provement of the economic work.
C. In the Sphere of Wages.
1. To aim at an increase of wages
in accordance with the progress of
the industry and of the productivity
of labor;
2. To impose severe penalties for
the withholding of the payment of
wages. Along with this there must
be recognized the necessity of fully
compensating the worker for loss de
riving from the fluctuation in the
value of the Soviet note in all cases
of the withholding of payment of
wages.
3. To forbid the payment of bonuses
on the turnovers, and only permitting
the payment of bonuses on the net
profit and then only to particularly
conscientious and meritorious func
tionaries with the consent of the
trade unions;
4. To improve the housing condi
tions of the workers, acknowledging
as an urgent task the insuring of state
credits for the Soviet housing
schemes;
5. Special attention must be given
to the payment of insurance contribu
tions in order, in the first place, to
insure that portion of the unemploy
ment who constitute genuine prole
tarian elements and who are, before
all, to be absorbed into production
as soon as the latter is extended.
D. In the Sphere of Foreign Trade.
1. To adopt further measures for
consolidating the foreign trade mon
opoly;
2. To attract foreign capital for the
purposes of foreign trade, by promot
ing mixed companies for carrying on
export and import;
3. To carry out a seneme of imports
and exports connected with the funda
mental economic plans and insuring
a favorable trade balance (preponder
ance of exports over imports) and the
supplying of Soviet industry with raw
material, with materials and semi
manufactured goods;
4. The greatest possible develop
ment of foreign credits for export
trade.
E. It) the Sphere of Home Trade.
1. Extending the subordinate trade
apparatus, in particular the network
of subordinate co-operatives, on the
basis of a careful service in the inter
ests of the consumer (by introducting
stocks of assorted goods indispens
able to the mass consumers, etc.),
and regulation of the relations with
the private middleman in order to
subordinate the latter economically
to the co-operative and to the state
trade (by a regulation of retail
prices, etc.).
2. Strengthening the regulation of
wholesale prices, before all of articles
of mass consumption, in the first
place of those of peasant consump
tion, extending the same to retail
prices by means of establishing maxi
mum allowances for profit to the co
operatives on the wholesale organs,
by means of operating with certain
stocks of goods on the part of the
state in order to reduce the prices in
certain areas, finally, by means of es
tablishing a credit policy aiming be
fore all at serving the interests of the
subordinate trade organs.
3. The necessity must be recogniz
ed of normalizing prices of salt,
petroleum and sugar in all categories
of trade (co-operative, state and pri
vate trade).
4. Modification of the existing sys
tem of centralized purchases on the
part of the superior organs in the
direction of promoting immediate con
tacts between the subordinate trade
organizations, the factory and work
associations and the wholesale and
retail stores, transforming according
ly the systems of the granting of j
credits to co-operatives and state |
trade.
5. The necessity must be recogniz
ed of a revision of the existing sys
tem of syndicates in order to abolish
those which cannot be economically
justified, limiting as a rule the com
mercial activity of the remaining syn
dicates within the confines of whole
sale trade.
6. To revise the existing railway |
tariffs with a view to cheapening the I
transport of mass consignments of
goods.
7. To adopt all measures for reduc
ing the additional trade expenses by
means of reducing the number of
trade representations, both in the
■apital and in the provinces, by
leans of giving contracts to co-oper
ive and state trade organs, finally
Y the reduction of wasteful expendl
ire (personal conveyances, office
lulpment, advertising, etc.).
8. Selection of a special reserve
ass of functionaries for strengthen
ig the co-operative and state trade
rgans.
9. The establishment of an exact
nd punctual rendering of accounts
>n the part of trade organs.
F. In the Sphere of Finances.
1. Strictest observance of the stipu
ated annual budget, absolutely limit
ng the amount of the deficit within
he confines provided by the budget.
2. Transition to a stable valuta,
abolition of the issuing of unstable
Soviet notes and Issuing not later
than In the spring, in connection with
the reform of the agriculture tax, of
stable currency of a low denomination
In pieces under one chervonets and
of small silver coinage.
3. Reduction of indirect taxes on
articles of mass consumption, before
all on salt, petroleum and refined
sugar.
4. Cheapening of the credits for
Industry and trade purchases and de
centralization of credits with a view
to bring them within the reach of the
subordinate economic units.
5. To exploit by every means the
regulating role of the credits, co-ordi
nating the activity of the state bank ;
HJlllltllllllllllllllllllllllllllillllllllllllllllllllllllllilllllllllllllllllllllllllilllllllllllllllllllllllllllllllMlllimtlllllllllllllUlllllllllllli
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THE RED SENTINEL |
A Dramatic Presentation of Revolutionary Spirit
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at FOLKETS HUS, 2733 Hirsch Boulevard
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For the Benefit of THE DAILY WORKER
Under the Auspices of Scandinavian Socialist Singing Society and
Scandinavian Karl Marx Club.
TICKETS Beforehand 50c At the Door, 75c
NEW YORK, ATTENTION!
All Trade Union Militants are invited to attend the
GENERAL MEMBERSHIP MEETING
of the Trade Union Educational League, held at Stuyvesant Casino,
142 Second Avehue (near Bth St.)
WEDNESDAY, APRIL 23, 1924, at 8 P. M. Sharp
SPEAKERS—EARL BROWDER, Editor of the Labor Herald; "The
present outlook in the Labor Movement and the Prospects for a
Mass Labor Party.” J. W. JOHNSTONE, Assistant Secretary,
T. U. E. L.: “The militants in action in the United Mine Workers
and the Needle Trades.”
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...DENTIST...
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WM. FRIEDMAN CO.
PROP.
MEETING PLACE FOR THE
NEEDLE WORKERS
Strictly Home Cooking
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and of other credit Institutions with
the leading organs of Industry and
trade thru the ‘Gossplan” and the
Council of Labor and Defense.
G. In the Bphere of the Work of
Planned Economy.
1. Enlarging of the role of the
“Gossplan” regarding the elaboration
of effective economic plans for the
Council of Labor and Defense as to
the connection of the elements of the
national economy and to the regula
tion of market conditions on the basis
of a systematic study of the economic
conjunctures.
2. A close co-ordination between
the work of the “Gossplan” and of the
People’s Commissariat for Finances,
Superior Council for People's Econ
omy, the Commission for Home Trade
and other economic people’s commis
sariats, with an obligatory co-ordina
tion of the general work scheme of
the Central Statistical Institution
with the work scheme of the “Goss
plan.”
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Page Five