APPENDIX

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SOVIET RUSSIA’S CODE OF LABOR LAWS

I. The Code of Labor Laws shall take effect immediately upon its publication in the Compilation of Laws and Regulations of the Workmen’s and Peasants’ Government. This Code must be extensively circulated among the working class of the country by all the local organs of the Soviet Government and be posted in a conspicuous place in all Soviet Institutions.

II. The regulations of the Code of Labor Laws shall apply to all persons receiving remuneration for their work and shall be obligatory for all enterprises, institutions and establishments (Soviet, public, private and domestic), as well as for all private employers exploiting labor.

III. All existing regulations and those to be issued on questions of labor, of a general character (orders of individual establishments, instructions, rules of internal management, etc.), as well as individual contracts and agreements, shall be valid only in so far as they do not conflict with this Code.

IV. All labor agreements previously entered into, as well as all those which will be entered into in the future, in so far as they contradict the regulations of this Code, shall not be considered valid or obligatory, either for the employees or the employers.

V. In enterprises and establishments where the work is carried on in the form of organized cooperation (Section 6, Labor Division A of the present Code) the wage earners must be allowed the widest possible self-government under the supervision of the Central Soviet authorities. On this basis alone can the working masses be successfully educated in the spirit of socialist and communal government.

VI. The labor conditions in the communal enterprises organized as well as supported by the Soviet institutions (agricultural and other communes) are regulated by special rules of the All-Russian Central Executive Committee and of the Council of People’s Commissars, and by instructions of the People’s Commissariat of Agriculture and Labor.

The labor conditions of farmers on land assigned them for cultivation are regulated by the Code of Rural Laws.

The labor conditions of independent artisans are regulated by special rules of the Commissariat of Labor.

ARTICLE I
ON COMPULSORY LABOR

1. All citizens of the Russian Socialist Federated Soviet Republic, with the exceptions stated in Sections 2 and 3, shall be subject to compulsory labor.

2. The following persons shall be exempt from compulsory labor:

(a) Persons under 16 years of age;

(b) All persons over 50 years;

(c) Persons who have become incapacitated by injury or illness.

3. Temporarily exempt from compulsory labor are:

(a) Persons who are temporarily incapacitated owing to illness or injury, for a period necessary for their recovery.

(b) Women, for a period of eight weeks before and eight weeks after confinement.

4. All students shall be subject to compulsory labor at the schools.

5. The fact of permanent or temporary disability shall be certified after a medical examination by the Bureau of Medical Survey in the city, district or province, by accident insurance office or agencies representing the former, according to the place of residence of the person whose disability is to be certified.

Note I. The rules on the method of examination of disabled workmen are appended hereto.

Note II. Persons who are subject to compulsory labor and are not engaged in useful public work may be summoned by the local Soviets for the execution of public work, on conditions determined by the Department of Labor in agreement with the local Soviets of trade unions.

6. Labor may be performed in the form of—

(a) Organized cooperation;

(b) Individual personal services;

(c) Individual special jobs.

7. Labor conditions in government (Soviet) establishments shall be regulated by tariff rules approved by the Central Soviet authorities through the People’s Commissariat of Labor.

8. Labor conditions in all establishments (Soviet, nationalized, public and private) shall be regulated by tariff rules drafted by the trade unions, in agreement with the directors or owners of establishments and enterprises, and approved by the People’s Commissariat of Labor.

Note. In cases where it is impossible to arrive at an understanding with the directors or owners of establishments or enterprises, the tariff rules shall be drawn up by the trade unions and submitted for approval to the People’s Commissariat of Labor.

9. Labor in the form of individual personal service or in the form of individual special jobs shall be regulated by tariff rules drafted by the respective trade unions and approved by the People’s Commissariat of Labor.

ARTICLE II
THE RIGHT TO WORK

10. All citizens able to work have the right to employment at their vocations and for remuneration fixed for such class of work.

Note. The District Exchange Bureaus of the Department of Labor Distribution may, by agreement with the respective unions, assign individual wage earners or groups of them to work at other trades if there is no demand for labor at the vocations of the persons in question.

11. The right to work belongs first of all to those who are subject to compulsory labor.

12. Of the classes exempt from compulsory labor, only those mentioned in subdivision “b” of Section 2 have a right to work.

13. Those mentioned in subdivisions “a” and “c” of Section 2 are absolutely deprived of the right to work, and those mentioned in Section 3 temporarily deprived of the right to work.

14. All persons of the female sex, and those of the male sex under 18 years of age, shall have no right to work during night time or in those branches of industry where the conditions of labor are especially hard or dangerous.

Note. A list of especially hard and health-endangering occupations shall be prepared by the Department of Labor Protection of the People’s Commissariat of Labor, and shall be published in the month of January of each year in the Compilation of Laws and Regulations of the Workmen’s and Peasants’ Government.

ARTICLE III
METHODS OF LABOR DISTRIBUTION

15. The enforcement of the right to work shall be secured through the Departments of Labor Distribution, trade unions, and through all the institutions of the Russian Socialist Federated Soviet Republic.

16. The assignment of wage earners to work shall be carried out through the Departments of Labor Distribution.

17. A wage earner may be summoned to work, save by the Departments of Labor Distribution, only when chosen for a position by a Soviet institution or enterprise.

18. Vacancies may be filled by election when the work offered requires political reliability or unusual special knowledge, for which the person elected is noted.

19. Persons engaged for work by election must register in the Department of Labor Distribution before they are accepted, but they shall not be subject to the rules concerning probation set forth in Article IV of the present Code.

20. Unemployed persons shall be assigned to work through the Departments of Labor Distribution in the manner stated in Sections 21–30.

21. A wage earner who is not engaged on work at his vocation shall register in the local Department of Labor Distribution as unemployed.

22. Establishments and individuals in need of workers should apply to the Local Department of Labor Distribution or its division (Correspondence Bureau) stating the condition of the work offered as well as the requirements which the workmen must meet (trade, knowledge, experience).

23. The Department of Labor Distribution, on receipt of the application mentioned in Section 22, shall assign the persons meeting the requirements thereof in the order determined by the same.

24. An unemployed person has no right to refuse an offer of work at his vocation, provided the working conditions conform with the standards fixed by the respective tariff regulations, or in the absence of the same by the trade unions.

25. A wage worker engaged for work for a period of not more than two weeks, shall be considered unemployed, and shall not lose his place on the list of the Department of Labor Distribution.

26. Should the Local Department of Labor Distribution have no workers on its lists meeting the stated requirements, the application must be immediately sent to the District Exchange Bureau, and the establishment or individual offering the employment shall be simultaneously notified to this effect.

27. Whenever workers are required for work outside of their district, a roll-call of the unemployed registered in the Department of Labor Distribution shall take place, to ascertain who are willing to go; if a sufficient number of such should not be found, the Department of Labor Distribution shall assign the lacking number from among the unemployed in the order of their registration, provided that those who have dependents must not be given preference, before single persons.

28. If in the Departments of Labor Distribution, within the limits of the district, there be no workmen meeting the requirements, the District Exchange Bureau has the right, upon agreement with the respective trade union, to send unemployed of another class approaching as nearly as possible the trade required.

29. An unemployed person who is offered work outside his vocation shall be obliged to accept it, on the understanding, if he so wishes, that this be only temporary, until he receives work at his vocation.

30. A wage earner who is working outside his specialty, and who has stated his wish that this be only temporary, shall retain his place on the register on the Department of Labor Distribution until he gets work at his vocation.

31. Private individuals violating the rules of labor distribution set forth in this article shall be punished by the order of the local board of the Department of Labor Distribution by a fine of not less than 300 rubles or by arrest for not less than one week. Soviet establishments and officials violating these rules on labor distribution shall be liable to criminal prosecution.

ARTICLE IV
PROBATION PERIODS

32. Final acceptance of workers for permanent employment shall be preceded by a period of probation of not more than six days; in Soviet institutions the probation period shall be two weeks for unskilled and less responsible work and one month for skilled and responsible work.

33. According to the results of the probation the wage earner shall either be given a permanent appointment, or rejected with payment for the period of probation in accordance with the tariff rates.

34. The results of the probation (acceptance or rejection) shall be communicated to the Department of Labor Distribution.

35. Up to the expiration of the probation period, the wage earner shall be considered as unemployed, and shall retain his place on the eligible list of the Department of Labor Distribution.

36. A person who, after probation, has been rejected, may appeal against this decision to the union of which he is a member.

37. Should the trade union consider the appeal mentioned in the preceding section justified, it shall enter into negotiations with the establishment or person who has rejected the wage earner, with the request to accept the complainant.

38. In ease of failure of negotiations mentioned in Section 37, the matter shall be submitted to the Local Department of Labor, whose decision shall be final and subject to no further appeal.

39. The Department of Labor may demand that the person or establishment provide with work the wage earner who has been rejected without sufficient reason. Furthermore, it may demand that the said person or establishment compensate the wage earner according to the tariff rates for the time lost between his rejection and his acceptance pursuant to the decision of the Department of Labor.

ARTICLE V
TRANSFER AND DISCHARGE OF WAGE EARNERS

40. The transfer of wage earners in all enterprises, establishments, or institutions employing paid labor, can take place only if it is required in the interest of the business and by the decision of the proper organ of management.

Note. This rule does not apply to work with private individuals employing paid labor, if the work is of the subdivisions mentioned in “b” and “c” of Section 6.

41. The transfer of a wage earner to other work within the enterprise, establishment or institution where he is employed may be ordered by the managing organs of said enterprise, establishment or institution.

42. The transfer of a wage earner to another enterprise, establishment or institution situated in the same or in another locality, may be ordered by the corresponding organ of management with the consent of the Department of Labor Distribution.

43. The order of an organ of management to transfer a wage earner as mentioned in Section 40 may be appealed from to the respective Department of Labor (local or district) by the interested individuals or organizations.

44. The decision of the Department of Labor in the matter of the transfer of a wage earner may be appealed from by the interested parties to the District Department of Labor or to the People’s Commissariat of Labor, whose decision in the matter in dispute is final and not subject to further appeal.

45. In case of urgent public work the District Department of Labor may, in agreement with the respective professional unions and with the approval of the People’s Commissariat of Labor, order the transfer of a whole group of wage earners from the organization where they are employed to another situated in the same or in another locality, provided a sufficient number of volunteers for such work cannot be found.

46. The discharge of wage earners from an enterprise, establishment or institution where they have been employed is permissible in the following cases:

(a) In case of complete or partial liquidation of the enterprise, establishment or institution, or of cancellation of certain orders or work;

(b) In case of suspension of work for more than a month;

(c) In case of expiration of term of employment or of completion of the job, if the work was of a temporary character;

(d) In case of evident unfitness for work, by special decision of the organs of management and subject to agreement with the respective professional unions.

(e) By request of the wage earner.

47. The organ of management of the enterprise, establishment or institution where a wage earner is employed, or the person for whom a wage earner is working must give the wage earner two weeks’ notice of the proposed discharge, for the reasons mentioned in “a,” “b” and “d” of Section 46, notifying simultaneously the Local Department of Labor Distribution.

48. A wage earner discharged for the reasons mentioned in subdivisions “a,” “b” and “d” of Section 46 shall be considered unemployed and entered as such on the lists of the Department of Labor Distribution and shall continue to perform his work until the expiration of the term of two weeks mentioned in the preceding section.

49. The order to discharge an employee for the reasons mentioned in subdivisions “a,” “b” and “d” of Section 46 may be appealed from by the interested persons to the Local Department of Labor.

50. The decision of the Local Department of Labor on the question of discharge may be appealed from by either party to the District Department of Labor, whose decision on the question in dispute is final and not subject to further appeal.

51. Discharge by request of the wage earner from enterprise, establishment or institution must be preceded by an examination of the reasons for the resignation by the respective organ of workmen’s self-government (works and other committees).

Note. This rule does not apply to the resignation of a wage earner employed by an individual, if the work is of the character mentioned in subdivisions “b” and “c” of Section 6.

52. If the organ of workers’ self-government (works or other committee) after investigating the reasons for the resignation finds the resignation unjustified the wage earner must remain at work, but may appeal from the decision of the Committee to the respective professional union.

53. A wage earner who quits work contrary to the decision of the Committee, pursuant to Section 52, shall forfeit for one week the right to register with the Department of Labor Distribution.

54. Institutions and persons employing paid labor shall inform the Local Department of Labor Distribution and the respective professional union of each wage earner who quits work, stating the date and the reason thereof.

ARTICLE VI
REMUNERATION OF LABOR

55. The remuneration of wage earners for work in enterprises, establishments and institutions employing paid labor, and the detailed conditions and order of payment shall be fixed by tariffs worked out for each kind of labor in the manner described in Sections 7–9 of the present Code.

56. All institutions working out the tariff rates must comply with the provisions of this article of the Code of Labor Laws.

57. In working out the tariff rates and determining the standard remuneration rates, all the wage earners of a trade shall be divided into groups and categories and a definite standard of remuneration shall be fixed for each of them.

58. The standard of remuneration fixed by the tariff rates must be at least sufficient to cover the minimum living expenses as determined by the People’s Commissariat of Labor for each district of the Russian Socialist Federated Soviet Republic and published in the Compilation of Laws and Regulations of the Workmen’s and Peasants’ Government.

59. In determining the standard of remuneration for each group and category attention shall be given to the kind of labor, the danger of the conditions, under which the work is performed, the complexity and accuracy of the work, the degree of independence and responsibility as well as the standard of education and experience required for the performance of the work.

60. The remuneration of each wage earner shall be determined by his classification in a definite group and category.

61. The classification of wage earners into groups and categories within each branch of labor shall be done by special valuation commissions, local and central, established by the respective professional organizations.

Note. The procedure of the valuation commissions shall be determined by the People’s Commissariat of Labor.

62. The tariff regulations shall fix the standard of remuneration for a normal working day or for piece-work, and particularly the remuneration for overtime work.

63. Remuneration for piece-work shall be computed by dividing the daily tariff rate by the number of pieces constituting the production standard.

64. The standard of remuneration fixed for overtime work shall not exceed time and a half of the normal remuneration.

65. Excepting the remuneration paid for overtime work done in the same or in a different branch of labor, no additional remuneration in excess of the standard fixed for a given group and category shall be permitted, irrespective of the pretext and form under which it might be offered and whether it be paid in only one or in several places of employment.

66. Persons working in several places must state in which place of employment they wish to receive their pay.

67. Persons receiving excessive remuneration, in violation of Section 65, shall be liable to criminal prosecution for fraud, and the remuneration received in excess of the normal (standard) may be deducted from subsequent payments.

68. From the remuneration of the wage earner may be deducted the excess remuneration received in violation of Section 65, and the remuneration earned by the wage earner during his vacation; deduction may also be made for cessation of work.

69. No other deductions, except those mentioned in Section 68, shall be permitted, irrespective of the form or pretext under which they might be made.

70. Payment of remuneration must not be made in advance.

71. If the work is steady, payment for the same must be made periodically, at least once in every fortnight. Remuneration for temporary work and for special jobs provided the same continues at least for two weeks, shall be paid immediately upon completion of work.

72. Payments shall be made in money or in kind (lodgings, food supplies, etc.)

73. To make payments in kind special permission must be obtained from the Local Department of Labor which shall determine the rates jointly with the respective trade unions.

Note. The rates thus determined must be based on the standard prices fixed by the respective institutions of the Soviet authority (valuation commissions of the Commissariat of Victuals, Land and Housing Department, Price Committee, etc.)

74. Payments must take place during working hours.

75. Payments must be made at the place of work.

76. The wage earner shall be paid only for actual work done. If a cessation of work is caused during the working day by circumstances beyond the control of the wage earner (through accident or through the fault of the administration), he shall be paid for the time lost on the basis of the daily tariff rates, if he does time work, or on the basis of his average daily earning, if he does piece-work.

77. A wage earner shall be paid his wage during leave of absence (Sections 106–107).

78. During illness of a wage earner the remuneration due him shall be paid as a subsidy from the hospital funds.

Note. The manner of payment of the subsidy is fixed by rules appended hereto.

79. Unemployed shall receive a subsidy out of the funds for unemployed.

Note. Rules concerning unemployed and the payment of subsidies to them are appended hereto.

80. Every wage earner must have a labor booklet in which all matters pertaining to the work done by him as well as the payments and subsidies received by him are entered.

Note. Rules regarding labor booklets for wage earners are appended hereto.

ARTICLE VII
WORKING HOURS

81. Working hours are regulated by the tariff rules made for each kind of labor, in the manner described in Sections 7–9 of the present Code.

82. The rules for working hours must conform with the provisions of this article of the Code of Labor Laws.

83. A normal working day shall mean the time fixed by the tariff regulations for the production of a certain amount of work.

84. The duration of a normal working day must in no case exceed eight hours for day work and seven hours for night work.

85. The duration of a normal day must not exceed six hours: (a) for persons under 18 years of age, and (b) in especially hard or health-endangering branches of industry (note Section 14 of the present Code).

86. During the normal working day time must be allowed for meals and for rest.

87. During recess machines, beltings and lathes must be stopped, unless this be impossible owing to technical conditions or in cases where these machines, beltings, etc., serve for ventilation, drainage, lighting, etc.

88. The time of recess fixed by Section 86 is not included in the working hours.

89. The recess must take place not later than four hours after the beginning of the working day, and must continue not less than a half hour and not more than two hours.

Note. Additional intermissions every three hours, and for not less than a half hour, must be allowed for working women nursing children.

90. The wage earners may use their free time at their own discretion. They shall be allowed during recess to leave the place of work.

91. In case the nature of the work is such that it requires a working day in excess of the normal, two or more shifts shall be engaged.

92. Where there are several shifts, each shift shall work the normal working hours; the change of shifts must take place during the time fixed by the rules of the internal management without interfering with the normal course of work.

93. As a general rule, work in excess of the normal hours (overtime work) shall not be permitted.

94. Overtime work may be permitted in the following exceptional cases:

(a) Where the work is necessary for the prevention of a public calamity or in case the existence of the Soviet Government of the R. S. F. S. R. or human life is endangered;

(b) An emergency, public work in relation to water supply, lighting, sewerage or transportation, in case of accident or extraordinary interruption of their regular operation;

(c) When it is necessary to complete work which, owing to unforeseen or accidental delay due to technical condition of production, could not be completed during the normal working hours. If leaving the work uncompleted would cause damage to materials or machinery;

(d) On repairs or renewal of machine parts or construction work, wherever necessary to prevent stoppage of work by a considerable number of wage earners.

95. In the case described in subdivision “c” of Section 94, overtime work is permissible only with the consent of the respective trade union.

96. For overtime work described in subdivision “d” of Section 94, permission must be obtained from the local labor inspector, in addition to the permit mentioned in the preceding section.

97. No females and no males under 18 years of age may do any overtime work.

98. The time spent on overtime work in the course of two consecutive days must not exceed four hours.

99. No overtime work shall be permitted to make up for a wage earner’s tardiness in reporting at his place of work.

100. All overtime work done by a wage earner, as well as the remuneration received by him for the same, must be recorded in his labor booklet.

101. The total number of days on which overtime may be permitted in any enterprise, establishment or institution must not exceed 50 days per annum, including such days when only one wage earner worked overtime.

102. Every enterprise, establishment or institution must keep a special record book for overtime work.

103. All wage earners must be allowed a weekly uninterrupted rest of not less than 42 hours.

104. No work shall be done on specially designated holidays.

Note. Rules concerning holidays and days of weekly rest are appended hereto.

105. On the eve of rest days the normal working day shall be reduced by two hours.

Note. This section shall not apply to institutions and enterprises where the working day does not exceed six hours.

106. Every wage earner who has worked without interruption not less than six months shall be entitled to leave of absence for two weeks, irrespective of whether he worked in only one or in several enterprises, establishments or institutions.

107. Every wage earner who has worked without interruption not less than a year shall be entitled to leave of absence for one month, irrespective of whether he worked in only one or in several enterprises, establishments or institutions.

Note. Sections 106 and 107 shall take effect beginning January 1, 1919.

108. Leave of absence may be granted during the whole year, provided that the same does not interfere with the normal course of work in enterprise, establishment or institution.

109. The time and order in which leave of absence may be granted shall be determined by agreement between the management of enterprise, establishment or institution and proper self-government bodies of the wage earners (works and other committees).

110. A wage earner shall not be allowed to work for remuneration during his leave of absence.

111. The remuneration of a wage earner earned during his leave of absence shall be deducted from his regular wages.

112. The absence of a wage earner from work caused by special circumstances and permitted by the manager shall not be counted as leave of absence; the wage earner shall not be paid for the working hours lost in such cases.

ARTICLE VIII
METHODS TO ASSURE EFFICIENCY OF LABOR

113. In order to assure efficiency of labor, every wage earner working in an enterprise, establishment or institution (governmental, public or private) employing labor in the form of organized collaboration, as well as the administration of the enterprise, establishment or institution, shall strictly observe the rules of this article of the Code relative to standards of efficiency, output and rules of internal management.

114. Every wage earner must during a normal working day and under normal working conditions perform the standard amount of work fixed for the category and group in which he is enrolled.

Note. Normal conditions referred to in this section, shall mean:

(a) Good condition of machines, lathes and accessories;

(b) Timely delivery of materials and tools necessary for the performance of the work;

(c) Good quality of materials and tools;

(d) Proper hygienic and sanitary equipment of the building where the work is performed (necessary lighting, heating, etc.).

115. The standard output for wage earners of each trade and of each group and category shall be fixed by valuation commissions of the respective trade unions (Section 62.)

116. In determining the standard output the valuation commission shall take into consideration the quantity of products usually turned out in the course of a normal working day and under normal technical conditions by the wage earners of the particular trade group and category.

117. The production standards of output adopted by the valuation commission must be approved by the proper Department of Labor jointly with the Council of National Economy.

118. A wage earner systematically producing less than the fixed standard may be transferred by decision of the proper valuation commission to other work in the same group and category, or to a lower group or category, with a corresponding reduction of wages.

Note. The wage earner may appeal from the decision to transfer him to a lower group or category with a reduction of wages, to the Local Department of Labor and from the decision of the latter to the District Department of Labor, whose decision shall be final and not subject to further appeal.

119. If a wage earner’s failure to maintain the standard output be due to lack of good faith and to negligence on his part, he may be discharged in the manner set forth in subdivision “d” of Section 46 without the two weeks’ notice prescribed by Section 47.

120. The Supreme Council of National Economy jointly with the People’s Commissariat of Labor may direct a general increase or decrease of the standards of efficiency and output for all wage earners and for all enterprises, establishments and institutions of a given district.

121. In addition to the regulations of the present article relative to standards of efficiency and output in enterprises, establishments and institutions, efficiency of labor shall be secured by rules of internal management.

122. The rules of internal management in Soviet institutions shall be made by the organs of Soviet authority with the approval of the People’s Commissariat of Labor or its local departments.

123. The rules of internal management in industrial enterprises and establishments (Soviet, nationalized, private and public) shall be made by the trade unions and certified by the proper Departments of Labor.

124. The rules of internal management must include clear, precise and, as far as possible, exhaustive directions in relation to—

(a) The general obligations of all wage earners (careful handling of all materials and tools, compliance with instructions of the managers regarding performance of work, observance of the fixed standard of working hours, etc.);

(b) The special duties of the wage earners of the particular branch of industry (careful handling of the fire in enterprises using inflammable materials, observance of special cleanliness in enterprises producing food products, etc.);

(c) The limits and manner of liability for breach of the above duties mentioned above in subdivisions “a” and “b.”

125. The enforcement of the rules of internal management in Soviet institutions is entrusted to the responsible managers.

126. The enforcement of the rules of internal management in industrial enterprises and establishments (Soviet, nationalized, public or private) is entrusted to the self-government bodies of the wage earners (works or similar committees).

ARTICLE IX
PROTECTION OF LABOR

127. The protection of life, health and labor of persons engaged in any economic activity is entrusted to the labor inspection—the technical inspectors and the representatives of sanitary inspection.

128. The labor inspection is under the jurisdiction of the People’s Commissariat of Labor and its local branches (Department of Labor) and is composed of elected labor inspectors.

129. Labor inspectors shall be elected by the Councils of Professional Unions.

Note I. The manner of election of labor inspectors shall be determined by the People’s Commissariat of Labor.

Note II. In districts where there is no Council of Trade Unions, the Local Department of Labor shall summon a conference of representatives of the trade unions which shall elect the labor inspectors.

130. In performing the duties imposed upon them concerning the protection of the lives and health of wage earners the officers of labor inspection shall enforce the regulations of the present Code, and decrees, instructions, orders and other acts of the Soviet power intended to safeguard the lives and health of the workers.

131. For the attainment of the purposes stated in Section 130 the officers of labor inspection are authorized—

(a) To visit at any time of the day or night all the industrial enterprises of their districts and all places where work is carried on, as well as the buildings provided for the workmen by the enterprise (rooming houses, hospitals, asylums, baths, etc.);

(b) To demand of the managers of enterprises or establishments, as well as of the elective organs of the wage earners (works and similar committees) of those enterprises or establishments in the management of which they are participating, to produce all necessary books, records and information;

(c) To draw to the work of inspection representatives of the elective organizations of employees, as well as officials of the administration (managers, superintendents, foremen, etc.);

(d) To bring before the criminal court all violators of the regulations of the present Code, or of the decrees, instructions, orders and other acts of the Soviet authority intended to safeguard the lives and health of the wage earners;

(e) To assist the trade unions and works committees in their efforts to ameliorate the labor condition in individual enterprises as well as in whole branches of industry.

132. The officers of labor inspection are authorized to adopt special measures, in addition to the measures mentioned in the preceding section, for the removal of conditions endangering the lives and health of workmen, even if such measures have not been provided for by any particular law or regulation, instructions or order of the People’s Commissariat of Labor or of the Local Department of Labor.

Note. Upon taking special measures to safeguard the lives and health of wage earners, as authorized by the present section, the officers of inspection shall immediately report to the Local Department of Labor, which may either approve these measures or reject them.

133. The scope and the forms of activity of the organs of labor inspection shall be determined by instructions and orders issued by the People’s Commissariat of Labor.

134. The enforcement of the instructions, rules and regulations relating to safety is entrusted to the technical inspectors.

135. The technical inspectors shall be appointed by the Local Departments of Labor from among engineering specialists; these inspectors shall perform within the territory under their jurisdiction the duties prescribed by Section 31 of the present Code.

136. The technical inspectors shall be guided in their activity, besides the general regulations, by the instructions and orders of the People’s Commissariat of Labor and by the instructions issued by the technical division of the Local Department of Labor.

137. The activity of the sanitary inspection shall be determined by instructions issued by the People’s Commissariat of Health Protection in conference with the People’s Commissariat of Labor.

APPENDIX TO SECTION 79

SUBSIDIES

1. An “unemployed” shall mean every citizen of the Russian Socialist Federated Soviet Republic subject to labor duty who is registered with the Local Department of Labor Distribution as being out of work at his vocation or at the remuneration fixed by the proper tariff.

2. An “unemployed” shall likewise mean:

(a) Any person who has obtained employment for a term not exceeding two weeks (Section 25 of the present Code);

(b) Any person who is temporarily employed outside his vocation, until he shall obtain work at his vocation (Sections 29 and 30 of the present Code).

3. The rights of unemployed shall not be extended—

(a) To persons who in violation of Sections 2, 24 and 29 of the present Code, have evaded the labor duty, and refused work offered to them;

(b) To persons not registered as unemployed with the Local Department of Labor Distribution (Section 21 of the present Code);

(c) To persons who have wilfully quit work, for the term specified in Section 54 of the present Code.

4. All persons described in Section 1 and subdivision “b” of Section 2 of these rules shall be entitled to permanent employment (for a term exceeding two weeks) at their vocations in the order of priority determined by the list of the Department of Labor Distribution for each vocation.

5. Persons described in Section 1 and subdivision “b” of Article 2 of these rules shall be entitled to a subsidy from the local fund for unemployed.

6. The subsidy to unemployed provided in Section 1 of the present rules shall be equal to the remuneration fixed by the tariff for the group and category on which the wage earner was assigned by the valuation commission (Section 61.)

Note. In exceptional cases the People’s Commissariat of Labor may reduce the unemployed subsidy to the minimum of living expenses as determined for the district in question.

7. A wage earner employed temporarily outside of his vocation (Subdivision “b” of Section 2) shall receive a subsidy equal to the differences between the remuneration fixed for the group and category in which he is enrolled and his actual remuneration, in case the latter be less than the former.

8. An unemployed who desires to avail himself of his right to a subsidy shall apply to the local funds for unemployed and shall present the following documents: (a) his registration card from the Local Department of Labor Distribution; and (b) a certificate of the valuation commission showing his assignment to a definite group and category of wage earners.

9. Before paying the subsidy the local funds for unemployed shall ascertain, through the Department of Labor Distribution and the respective trade union, the extent of applicant’s unemployment and the causes thereof, as well as the group and category to which he belongs.

10. The local funds for unemployed may for good reasons, be denied the applicant.

11. If an application is denied, the local fund for unemployed shall inform the applicant thereof within three days.

12. The decision of the local fund for unemployed may within two weeks, be appealed from by the interested parties to the Local Department of Labor, and the decision of the latter may be appealed from to the District Department of Labor. The decision of the District Department of Labor is final and subject to no further appeal.

13. The payment of the subsidy to an unemployed shall commence only after he has actually been laid off and not later than by the fifth day.

14. The subsidies shall be paid from: the fund of insurance for the unemployed.

15. The fund of unemployment insurance shall be made up,

(a) from obligatory payments by all enterprises, establishments and institutions employing paid labor;

(b) from fines imposed for default in such payments;

(c) from casual payments.

16. The amount and the manner of collection of the payments and fines mentioned in Section 15 of these rules shall be determined every year by a special order of the People’s Commissariat of Labor.

APPENDIX TO SECTION 80

RULES CONCERNING LABOR BOOKLETS

1. Every citizen of the Russian Socialist Federated Soviet Republic, upon assignment to a definite group and category (Section 62 of the present Code), shall receive, free of charge, a labor booklet.

Note. The form of the labor booklets shall be worked out by the People’s Commissariat of Labor.

2. Each wage earner, on entering the employment of an enterprise, establishment or institution employing paid labor, shall present his labor booklet to the management thereof, or on entering the employment of a private individual—to the latter.

Note. A copy of the labor booklet shall be kept by the management of the enterprise, establishment, institution or private individual by whom the wage earner is employed.

3. All work performed by a wage earner during the normal working day as well as piece-work or overtime work, and all payments received by him as a wage earner (remuneration in money or in kind, subsidies from the unemployment and hospital funds), must be entered in his labor booklet.

Note. In the labor booklet must also be entered the leaves of absence and sick leave of the wage earner, as well as the fines imposed on him during and on account of his work.

4. Each entry in the labor booklet must be dated and signed by the person making the entry, and also by the wage earner (if the latter is literate), who thereby certifies the correctness of the entry.

5. The labor booklet shall contain:

(a) The name, surname and date of birth of the wage earner;

(b) The name and address of the trade union of which the wage earner is a member;

(c) The group and category to which the wage earner has been assigned by the valuation commission.

6. Upon the discharge of a wage earner, his labor booklet shall under no circumstances be withheld from him. Whenever an old booklet is replaced by a new one, the former shall be left in possession of the wage earner.

7. In case a wage earner loses his labor booklet, he shall be provided with a new one into which shall be copied all the entries of the lost booklet; in such a case a fee determined by the rules of internal management may be charged to the wage earner for the new booklet.

8. A wage earner must present his labor booklet upon the request:

(a) Of the managers of the enterprise, establishment or institution where he is employed;

(b) Of the Department of Labor Distribution;

(c) Of the trade union;

(d) Of the officials of workmen’s control and of labor protection;

(e) Of the insurance offices or institutions acting as such.

APPENDIX TO SECTION 5

RULES FOR THE DETERMINATION OF DISABILITY FOR WORK

1. Disability for work shall be determined by an examination of the applicant by the Bureau of Medical Experts, in urban districts, or by the provincial insurance offices, accident insurance offices or institutions acting as such.

Note. In case it be impossible to organize a Bureau of Medical Experts at any insurance office, such a bureau may be organized at the Medical Sanitary Department of the local Soviet, provided, however, that the said bureau shall be guided in its actions by the general rules and instructions for insurance offices.

2. The staff of the Bureau of Experts shall include:

(a) Not less than three specialists in surgery;

(b) Representatives of the Board of Directors of the office;

(c) Sanitary mechanical engineers appointed by the Board of the office;

(d) Representatives of the trade unions.

Note. The specialists in surgery on the staff of the bureau shall be recommended by the medical sanitary department, with the consent of the Board of Directors, preferably from among the surgeons connected with the hospital funds, and shall be confirmed by a delegates’ meeting of the office.

3. During the examination of a person at the Bureau of the Medical Commission, all persons who have applied for the examination may be present.

4. An application for the determination of the loss of working ability may be made by any person or institution.

5. Applications for examination shall be made to the insurance office nearest to the residence of the person in question.

6. Examinations shall take place in a special room of the insurance office.

Note. If the person to be examined cannot be brought to the insurance office, owing to his condition, the examination may take place at his residence.

7. Every person who is to be examined at the Bureau of Medical Experts shall be informed by the respective insurance office of the day and hour set for the examination and of the location of the section of the Bureau of Medical Experts where the same is to take place.

8. The Bureau of Medical Experts may use all methods approved by medical science for determining disability for work.

9. The Bureau of Medical Experts shall keep detailed minutes of the conference meetings, and the record embodying the results of the examinations shall be signed by all members of the bureau.

10. A person who has undergone an examination and has been found unfit for work shall receive a certificate from the Bureau of Medical Experts.

Note. A copy of the certificate shall be kept in the files of the bureau.

11. The records as well as the certificates shall show whether the disability is of a permanent or temporary character. If the disability for work be temporary, the record and certificate shall show the date set for examination.

12. After the disability for work has been certified the proper insurance office shall inform thereof the Department of Social Security of the local Soviet, stating the name, surname and address of the person disabled, as well as the character of the disability (whether temporary or permanent).

13. The decision of the Bureau of Medical Experts certifying or denying the disability of the applicant may be appealed from by the interested parties to the People’s Commissariat of Health Protection.

14. The People’s Commissariat of Health Protection may either dismiss the appeal or issue an order for the re-examination of appellant by a new staff of the Bureau of Experts.

15. The decision of the new staff of the Bureau of Experts shall be final and subject to no further appeal.

16. Re-examinations to establish the recovery of working ability shall be conducted in the same manner as the first examination, with the observance of the regulations of the present article of the Code.

17. The expenses incurred in connection with the examination of an insured person shall be charged to the respective insurance office. The expenses incurred in connection with the examination of a person not insured shall be charged to the respective enterprise, establishment or institution.

18. The People’s Commissariat of Labor may, if necessary, modify or amend the present rules for the determination of disability for work.

Rules concerning payment of sick benefits (subsidies) to wage earners:

1. Every wage earner shall receive in case of sickness a subsidy and medical aid from the local hospital fund of which he is a member.

Note I. Each person may be a member of only one insurance fund at a time.

Note II. A person who has been ill outside the district of the local hospital fund of which he is a member shall receive the subsidy from the hospital fund of the district in which he has been taken ill. All expenses thus incurred shall be charged to the hospital fund of which the particular person is a member.

2. The sick benefits shall be paid to a member of a hospital fund from the first day of his sickness until the day of his recovery, with the exception of those days during which he has worked and accordingly received remuneration from the enterprise, establishment or institution where he is employed.

3. The sick benefit shall be equal to the remuneration fixed for a wage earner of the respective group and category.

Note I. The group and category in which the wage earner is enrolled shall be ascertained by the local hospital fund through the Department of Labor Distribution or through the trade unions.

Note II. The subsidy for pregnant women and those lying-in shall be fixed by special regulations of the People’s Commissariat of Labor.

Note III. In exceptional cases the People’s Commissariat of Labor may reduce the subsidy to the minimum of living expenses as determined for the respective district.

4. Besides the subsidies, the hospital funds shall also provide for their members free medical aid of every kind (first aid, ambulatory treatment, home treatment, treatment in sanatoria or resorts, etc.)

Note. To secure medical aid any hospital fund may, independently or in conjunction with other local funds, organize and maintain its own ambulatories, hospitals, etc., as well as enter into agreements with individual physicians and establishments.

5. The resources of the local hospital funds shall be derived:

(a) From obligatory payments by enterprises, establishments and institutions (Soviet, public and private) employing paid labor;

(b) From fines for delay of payments;

(c) From profits on the investments of the funds;

(d) From casual payments.

Note. The resources of the local hospital funds shall be consolidated into one common fund of insurance against sickness.

6. The amount of the payments to local hospital funds by enterprises, establishments and institutions employing paid labor shall be periodically fixed by the People’s Commissariat of Labor.

Note I. In case these obligatory payments be not paid within the time fixed by the local hospital funds, they shall be collected by the Local Department of Labor; moreover, in addition to the sum due, a fine of 10 per cent thereof shall be imposed for the benefit of the hospital fund.

Note II. In case the delay be due to the fault of the responsible managers of the particular enterprise, establishment, or institution, the fine shall be collected from the personal means of the latter.

7. The decision of the hospital funds may be appealed from within two weeks to the Department of Labor. The decision of the Department of Labor shall be final and subject to no further appeal.

8. The People’s Commissariat of Labor may, whenever necessary, change or amend the foregoing rules concerning sick benefits to wage earners.

THE SECOND ALL-RUSSIAN CONGRESS OF TRADES UNIONS (VOCATIONAL UNIONS)

RESOLUTIONS ADOPTED AT THE CONFERENCE
Moscow, June 16th to 25th, 1919

A year’s work of the professional trades unions of Russia was completed by a new conference, the second one in its history—which shows how young our professional movement is as yet. The past year was unparalleled in the history of the entire international trade union movement, both according to the kind of activity as well as those circumstances under which our unions had to carry on their work.

It was a year of the dictatorship of the proletariat.

On the ruins of the demolished capitalist system, the proletariat of Russia has taken upon itself the task of building up a new, Socialist Russia. While struggling and conquering, it was gradually turning to constructive work—strengthening its dictatorship by taking possession of the entire apparatus of the country’s economic administration.

The proletariat, organized into professional unions, constituted the vanguard of the Socialist revolution. The unions were the hotbeds of revolution, and it has fallen to their lot to solve the most complicated problems—in fact they took into their hands the management of all economic affairs, taking over the factories, the mills and the mines. This problem was difficult in itself, and its complexity was increased still further through the economic disintegration and chaos which were caused by the imperialist world war.

The Second All-Russian Conference of Trades Unions demonstrated that the Russian professional trades union movement has grown stronger during the year and that its organization has improved in both quantity and quality.

The qualitative progress made by the Russian trades union movement expressed itself in that marvelous intelligence which the Conference displayed in grappling with the complicated problems it had to face. If the first All-Russian Conference of Professional trades unions outlined a rough draft of a plan according to which the working class was to steer its course during the period of its supremacy, if at that first conference the delegates were groping in the dark, trying to feel the correct way,—the second Conference found the path sufficiently cleared to proceed forward toward the solution of new problems put forth by the life and practice of the professional movement. If at the First Conference we could only speak of regulating industry and controlling it, now, at this Second Conference, we can already tabulate the results of organization in the realm of industry by the efforts of the working class itself.

A big stride forward was made by the proletariat organized within professional trades unions, when in discussing the question of organization it pointed out clearly and definitely the place which the proletariat of the entire world is occupying under the present circumstances. The Conference has not only firmly and decisively drawn the line between its position and that of neutrality, but it took a definite stand in favor of recognizing “the revolutionary class struggle for the realization of Socialism through the dictatorship of the proletariat.”

The quantitative growth of the Russian trades unions since the first Conference, notwithstanding the fact that the counter-revolution has snatched away a number of provinces (Siberia, Finland, the Donetz region, Caucasia, etc.), has resulted in a membership of 3,422,000 whereas only 2,500,000 members were represented at the First Conference. Thus, within one year the membership increased by almost one million. According to the All-Russian industrial groupings, the number of union members represented at the conference was distributed as follows:

Metal trades 400,000
Tanners 225,000
Members of Trade-Industrial Union (probably sales clerks) 200,000
Workers engaged in the food industry 140,000
Tailors 150,000
Chemists 80,000
Architectural and building trades 120,000
Wood-working trades 70,000
Printers 60,000
Railroad workers 450,000
Glass and chinaware workers 24,000
Water transportation workers 200,000
Postal-telegraphic employees 100,000
Sugar industry 100,000
Textile workers (according to data furnished by the local union) 711,000
Firemen 50,000
Oil miners and refiners 30,000
Chauffeurs 98,000
Bank employees 70,000
Domestic help 50,000
Waiters (in taverns) 50,000
Cigar and cigarette makers 30,000
Drug clerks 14,000
Foresters 5,000

According to the data furnished by the committee on credentials, there were 748 delegates at the Conference with the right to vote, and 131 with a voice. The political composition of the Conference (according to the results of an informal inquiry) was as follows: 374 Communists, 75 sympathizers, 15 Left Socialists-Revolutionists, 5 Anarchists, 18 Internationalists, 4 representatives of the Bund, 29 United Social-Democrats, 23 non-partisans, and 236 delegates did not state their party affiliations. The party registration bureaus showed entirely different results, which have been confirmed by the vote cast for the main resolutions. Thus, at the Communist bureau 600 persons have registered (this includes party members having the right to vote, sympathizers, and people with a voice only, but no vote), the Internationalists had 50 persons, and the United Social-Democrats had 70.

Geographically the delegates were represented as follows:

Second First
From Unions Conference Conference
The Northern Region 100 delegates 69 delegates
The Central Region 320 " 112 "
The Volga Region 144 " 25 "
The Ural Region 2 " 13 "
The Southern Region 31 " 62 "
The Western Region 30 " .. "
From Soviets and Northern Region 29 "
Central Region 70 "
Ural Region 3 "
Southern Region 6 "
Western Region 14 "
Volga Region 30 "

The local Soviets of the Professional Unions were represented according to regions, as follows:

Central Region 36 cities 1,004,500 persons
Northern Region 16 cities 396,000 persons
Volga Region 19 cities 499,300 persons
Western Region 7 cities 73,800 persons
Southern Region 4 cities 64,000 persons
—————— —————————
Total 82 cities 2,037,600 persons
At the preceding Conference 49 cities 1,888,353 persons

From June 16th to 25th, 1919, during the nine days of its work, the second All-Russian Congress of Trades Unions solved the fundamental questions of the Russian professional (trades union) movement. The Conference more precisely defined the place of the professional trades unions in a proletarian state, it has more concretely outlined the interrelations of the trades unions with the organs of administration and, above all, with the People’s Commissariat of Labor. All other questions, such as the regulation of working hours and wages, the safeguarding of labor and the social insurance of laborers, the organization of production, and workmen’s control have been solved on the basis of the experience of the past year.

The Russian professional unions entered upon a new era of proletarian activity. And the unions are already facing practical problems—to put into practice the principles and resolutions adopted and in all phases of its work to follow one direction, that of still further strengthening its power, and participating more closely in establishing the might of proletarian Russia.

THE PROBLEMS OF THE PROFESSIONAL TRADES UNIONS

(A resolution introduced by M. Tomsky)

One year of political and economic dictatorship of the proletariat and the growth of the workers’ revolution the world over, have fully borne out the correctness of the position taken by the first All-Russian Conference of the Professional Trades Unions, who have unconditionally bound up the fate of the economically organized proletariat with that of the Workers’ and Peasants’ Government.

The attempt, under the flag of “unity” and “independence” of the trades union movement, to pit the economically organized proletariat against the organs of the political dictatorship of its own class, has led the groups which were supporting this slogan, to an open struggle against the Soviet Government and has placed them outside the ranks of the working class.

In the course of the practical cooperation with the Soviet Government in the work for the strengthening and organization of the nation’s economic life, the professional trades unions have passed from control over industry to organization of industry, taking an active part in the management of individual enterprises as well as in the entire economic life of the country.

But the task of nationalization of all the means of production and the organization of society on the new principles of Socialism demands persistent and careful labor involving the reconstruction of the entire governmental apparatus, the creation of new organs of control, and regulation of production and distribution, based on the organization and activity of the laboring masses who are themselves directly interested in the results.

This makes it imperative for the trades unions to take a more active and energetic part in the work of the Soviet Government (through direct participation in all governmental institutions, through the organization of proletarian mass control over their actions, and the carrying out, by means of their organization, of individual problems with which the Soviet Government is confronted), to aid in the reconstruction of various governmental institutions and in the gradual replacement of the same by their own organizations by amalgamating the unions with the governmental institutions.

However, it would be a mistake at the given stage of development of the professional trades union movement with the insufficiently developed organization to convert immediately the unions into governmental organs and to amalgamate the two organizations as well as for the unions to usurp of their own accord the functions of governmental institutions.

The entire process of complete amalgamation of the professional unions with the organs of government administration must come as an absolutely inevitable result of their work, in complete and close cooperation and harmony and the preparation of the laboring masses, for the task of managing the governmental apparatus and all the institutions for the regulation of the country’s economic life.

This, in its turn, places before the unions the problem of welding together the as yet unorganized proletarian and semi-proletarian masses into strong productive unions, initiating them, under the control of the proletarian unions, into the task of social reconstruction and the general work of strengthening their organizations, as regards centralization and smoothly working unions as well as the strengthening of professional discipline.

Directly participating in all fields of Soviet work, forming and supplying the man-power for the governmental institutions, the professional unions must, through this work for which they must enlist their own organizations as well as the laboring masses, educate and prepare them for the task of managing not only production but the entire apparatus of government.

PROFESSIONAL UNIONS AND THE COMMISSARIAT

OF LABOR

(A resolution embodied in V. Schmidt’s report)

Professional trades unions organized according to the scale of production, called upon to regulate the conditions of labor and production in the interests of the working class as a whole, under the conditions of proletarian dictatorship, are becoming gradually converted into economic associations of the proletariat, acquiring a nation-wide significance. On the other hand, the Commissariat of Labor, as an organ of the Workers’ and Peasants’ Government, in which the organized industrial proletariat is at the present moment playing a leading part, serves as an instrument for the introduction of the economic policy of the working class, utilizing for this purpose its apparatus and all the power vested in governmental authorities to enforce its laws and regulations.

Therefore, with a view to eliminating the duality in the united economic policy of the working class, it is necessary to recognize that all fundamental decisions of the supreme union organ—the Congress of Professional Unions—are to be adopted by the People’s Commissariat of Labor and embodied in its proposed legislation and all special obligatory regulations bearing on the conditions of labor and production, must first be approved by a majority of the All-Russian Central Council of Professional Trades Unions.

The Conference fully approves of coordination and cooperation between the All-Russian Central Council of Trades Unions and the People’s Commissariat of Labor and suggests that the local councils (Soviets) of trades unions participate in the work of local branches (departments) of the Commissariat of Labor, on the basis of the relations prevailing between the central bodies, for which purpose the local councils of trades unions are to send their representatives into the leading Soviets and make up out of the union apparatus its subdivisions (tariff, social insurance, labor safeguarding, etc.)

In order to finally eliminate all duplication in the solution of questions concerning the conditions and regulation of labor by separate departments, the Conference suggests that the All-Russian Central Executive Committee and the Soviet of People’s Commissaries concentrate all its efforts to the working out of standards regulating the conditions of work, wages, organization of labor, order of employing and discharging help, safeguarding labor, and social insurance, through the People’s Commissariat of Labor.

THE PARTICIPATION OF THE UNIONS IN THE ORGANIZATION OF INDUSTRY

(A resolution on the report made by Comrade Rudzutak)

1. The process of taking over the control of the industries which is now being completed by the workers’ government, places the vocational associations in a position where they are coming to play an ever more and more important part in the special fields of their activity.

2. Standing in close relationship to the actual production and thus being the natural guardians of industry against the remnants of the bureaucratic apparatus permeated by the traditions of the old regime, the unions must build a new Socialist order, in accordance with the fixed program of production based on a national plan for the utilization of the proper products and material.

3. In the interests of preserving a single plan of organization of production, management and distribution, it will be necessary to concentrate in one center all the units of production, which are now in the charge of various departments (Chief Artillery Department, Navy and War Departments, etc.)

4. The participation of the unions in the industrial management should consist in the working out of a system of activity for the regulating and managing organs as a whole, insofar as there is a possibility of some part or other of their membership not being permeated by the spirit of Socialistic constructive activity. The management of the leading departments and centers must be composed mainly of the representatives of professional unions, following an understanding between the corresponding All-Russian Industrial Association or the All-Russian Council of Trades Unions and the presiding officers of the Supreme Council of National Economy.

5. All delegates representing the trades unions within the administrative and regulating bodies are responsible to the corresponding unions and are to report on their activities at regular intervals.

6. In order to keep up the organic connection between the unions and the management of the government owned mills, the unions are to call conferences of the management of the largest enterprises, not less than once in two months, for the purpose of discussing and passing upon the most important practical questions arising in the process of work.

7. In order to convert the regulating and managing organs into a proletarian apparatus for constructive Socialist work and in order to obtain the cooperation in this work of the large masses of the more advanced workers, it is necessary to saturate all the organs of regulation and management with proletarian elements by means of placing in their ranks responsible workers who assert themselves within the central and local trade union groups.

8. Together with the part which the unions are playing in the matter of directing the industrial life along the channels fixed by the programs of production, based upon the subjugation of private interest to those of society as a whole, comes their activity in connection with the basic element of production—labor. Therefore, the decisions of the central trade union associations are obligatory insofar as they bear on the questions of wage scales, inspection of labor, internal regulations within the factories, standards of production and labor discipline.

9. Being placed in the position of organizers of production at a moment when Russia is now more than at any other time, affected by a shortage of various kinds of material which causes a reduction of the output, the unions must safeguard the proletariat against the possibility of its exhaustion or degeneration, as a class of producers, at this critical period, and to safeguard its nucleus against social disintegration and its absorption by other classes; it is therefore necessary:

(a) wherever a shortage of raw material exists to reduce the working day or the number of days per week, keeping employed at the factory the largest possible number of workers.

(b) to introduce, wherever the number of hours or days per week is reduced, obligatory attendance at technical and educational courses, so as to utilize the crisis for the purpose of lifting the technical and cultural level of the laboring masses.

10. At the same time, in view of the primary significance of actually supplying the mills with the necessary products, and the impossibility of increasing the productivity of labor and introducing discipline, unless this question is solved in a satisfactory manner, it is necessary to enable the trades unions to participate as closely as possible in the work of production and distribution of provisions.

WORKERS’ CONTROL

(Resolution in connection with N. Glebov’s report)

The Second All-Russian Congress of Vocational Unions, having heard the report on workers’ control, recognizes the following:

1. Workers’ control, which was the strongest revolutionary weapon in the hands of the labor organizations in their struggle against economic disruption and the sabotage practised by the employers in their struggle against the proletariat for economic supremacy, has led the working class into direct participation in the organization of production.

2. The economic dictatorship of the working class has created new conditions which stirred up the activity of the large masses of the workers. Through their vocational associations the workers have been called upon to organize the country’s economic life and to participate in the management of production.

3. At the same time the working class domination over the economic life of the country has not as yet been completed. A subdued struggle is still seething within the new forms of economic life, which calls forth the necessity on the part of the laboring masses to control the activities of the institutions in charge of the management of production.

4. Under such conditions of transition from the capitalist system to the Socialist regime, the workers’ control must develop, from a revolutionary weapon for the economic dictatorship of the proletariat, into a practical institution aiding in the strengthening of this dictatorship in the process of production.

5. The problems of workers’ control must be confined to the supervision of the course of work in the various establishments, and to practically check on the activity of the management of individual mills as well as that of entire branches of industry. The workers’ control is carried out in practice in a certain order according to which control does not precede, but, on the contrary, follows the executive work.

6. Workers’ control is also to solve the problem of the gradual preparation of the large masses of the working class for direct participation in the matter of management and organization of industry.

With this object in view the Congress resolves:

1. To confirm the decision of the first All-Russian Congress of Vocational Unions regarding the formation of organs of control, both local and central, under the guidance of the vocational associations of the working class.

2. Within every nationalized industrial, commercial, and transport house, the local committee for control takes upon itself the supervision of the work of the enterprise and the activities of its management, for which purpose it gathers and systematizes all data relative to the running of the establishment and places the same at the disposal of the control department of their trade union, before which, whenever the necessity arises, the question of auditing the books of the enterprise is brought up.

Note. In extraordinary cases the local control commission has the right on its own responsibility to fix the time for a revision of their enterprise, with a precise statement of the subject of control, on condition that the local control committee immediately notify to that effect the Department of Control of the corresponding industrial (vocational) union.

3. The local control committee is being formed of: (a) representatives of the corresponding industrial (vocational) union; (b) of the persons elected by the general meeting of the workers employed in a given factory, who are subject to approval by the committee of the corresponding industrial (vocational) union. The members of the local control committee elected from among the committee of the industrial union, retain their office for a considerable length of time; while the persons elected at the general meeting are to be replaced in as short a period as possible, with a view to training the large masses of the people in the work of management and organization of industry so as to insure the gradual transition to the system of universal participation in it of all the workers.

4. The local control committee is responsible for its activities both before the general meeting of the workers of their factory and before the control department of their industrial (vocational) union. In case of abuse of authority, negligence in carrying out its duties, and so on, the local control committee is subject to severe punishment.

5. The representatives of the local control committee participate at the sessions of the management of the mill or factory, having only a voice, but no vote in the matter. The rights of administration of the establishment remains with the management and therefore the entire responsibility for the work of the enterprise rests with the management.

6. The coordination of the workers’ control within the limits of any given industry must be centered within the industrial (vocational) union. The union creates a Workers’ Control Department which is responsible before the management of its union.

7. The Congress authorizes the All-Russian Central Council (Soviet) of Vocational Unions to direct the institutions of workers’ control. For this purpose the All-Russian Central Council is to form a supreme organ of workers’ control, composed of the representatives of the industrial (vocational) unions.

8. With a view to coordinating all activities and eliminating the duplication of functions in the work of control, the organs of the People’s Commissariat of State Control must work in contact with the controlling organs of the industrial (vocational) unions.

9. The supreme organ of workers’ control is to work out the instructions, fully determining the rights and duties of the lower organs of control and their organization. Until such time as these instructions are made public the organs of workers’ control in the nationalized enterprises are to be guided by these rulings.

10. The regulations for the workers’ control of nationalized enterprises must be decreed by the Council of People’s Commissaries.

11. In the establishments which have not been nationalized workers’ control is to be carried out in accordance with the decree of November 14, 1917.

WAGE AND WORK REGULATION

Observing a great variety and lack of coordination of the tariff (wage scale) regulations which hamper not only the standardization of labor, but their practical materialization, and explaining such an abnormal phenomenon in this matter by the presence of a number of glaring defects, (absence of a definite system of wages, which would serve as a basis of the tariff regulations, the elasticity of groups and categories, the elimination from these regulations of the salaries of the higher technical, commercial and administrative personnel), defects due to the rapid transition from one form of wage scale regulation to another; due to the weakness of the local unions and their local separatism, and, finally, the inconsistency (instability) of the local organs of governments in regard to the wage regulation policy, the Second All-Russian Congress of Vocational Unions deems it necessary to introduce the following amendments and additions to the wage regulations:

1. The basic principle of wage scale regulation, in connection with the struggle for the restoration of the country’s economic forces, must be the responsibility of the laborers and other employees for the productivity of labor before their union, and the responsibility of the latter before the class associations of the proletariat. For this purpose the wage scale regulations must be based on the system of compensation of labor power which would serve as an incentive for the laborers to outdo each other in their desire to raise the productivity of labor in the nationalized enterprises, i.e. the piece-work and premium system founded on a rock-bottom standard of production, with a firmly fixed schedule of either increased pay or decreased hours of work in compensation for production above the standard requirements.

In those branches of industry where it is impossible to standardize the work, a scale of wages is to be applied on the basis of the time employed with definite hours of work and strict working regulations.

2. The wage scale of the industrial union is to include the higher technical, commercial and administrative personnel, whose salaries are to be subject to the control of the union. In accordance with this, the tariff regulation is to be divided into three fundamental parts; (a) the higher technical, commercial, and administrative personnel; (b) the lower technical and administrative personnel; the employees of the managements, the offices, institutions and commercial establishments, and (c) the laborers.

3. In order to eliminate too large a number of groups and categories (five groups and 15 categories) and to insure a fair compensation of the basic nucleus of the workers and other employees occupied in the industries, a subdivision into four groups and 12 categories is fixed for each of the three ranks (the higher personnel, the lower staff, the workers), the ratio of the higher wage to the lower within the limits of each one of the four given groups, from the first category to the 12th, is 1:1.75.

4. The wage scale regulations for individual groups of the workers and for certain branches of industry or parts thereof, must contain provisions either for the shortening of hours, or for the increase of pay as compensation for particularly harmful, dangerous, difficult or exhaustive labor, and in connection with climatic conditions.

5. Clothing and footwear is to be distributed to the workers engaged in the wood chopping industry, the sewerage and street cleaning industry, or occupied in underground work, work at a particularly high temperature, or necessitating the handling of harmful chemicals. Particularly difficult and harmful work (such as, underground work, the peat gathering industry, the preparation of wood fuel, work at a high temperature, work with poisonous gases and acids exhausting the system) should carry with it a home and a higher wage. This latter measure is to be carried out by the All-Russian and local councils of the Vocational Unions. In order to put these additions and amendments to the wage scale regulations into actual life and in order to do away with the obnoxious multiformity the Congress resolves:

To recognize the wage scale regulation which is being carried out on a national scale and which affects all the workers and employees of a given industry, from the highest administrator down to the skilled laborer,—as the one which best answers the fundamental needs of standardizing the wages.

To grant to the All-Russian Central Committee of the Industrial Unions the exclusive right to finally work out the wage scale regulations and to submit them for approval of the All-Russian Central Council of Professional Unions and to the People’s Commissariat of Labor.

To deprive the local branches of the All-Russian centralized unions of the right to directly submit their wage scale for approval over the head of their central body, so long as an All-Russian industrial wage scale is in operation.

To leave to the local Soviets (councils) of the Vocational Unions the right to fix the wage scale regulations only for the local unions, which have no All-Russian association, using the wage scale regulations in force as a guide; under no circumstances changing the regulations passed on a national scale. Besides, it is the duty of the local Soviets of the Vocational Unions to coordinate individual scales in different industries while putting them into practice, and the right to present a grounded petition for the transfer of a given locality into another district in accordance with the proportional (percentage) scale of district decrease of wages.

The Congress approves of the work of the committee and the section on the construction of wage scale regulations and recommends to the All-Russian centralized industrial unions to accept them as a basis. The Congress authorizes the All-Russian Central Council of Vocational Unions to carry out this resolution strictly and without any deviations.

LABOR SAFEGUARDS AND SOCIAL INSURANCE

OF THE WORKERS

(Resolution passed in connection with A. Bakhutov’s report)

In capitalist society, with the complete economic and political supremacy of the bourgeoisie, the legal measures which were enacted for the safeguarding of labor and the individual kinds of social insurance of the workers were being enforced under the control of the capitalist state, together with the employing class, and beyond the reach of direct influence of the labor organizations. With the establishment of the dictatorship of the proletariat it became possible for the first time to put point blank all the questions arising out of the struggle against the grave consequences of the conditions of labor, which remain as a legacy of the capitalist era, as well as preventive measures and the solutions of the questions, in accordance with the Socialist aims of the present moment. The actual safeguarding of labor and the social insurance of the worker, with a view to safeguarding his life and increasing his strength and power, proved to be indissoluble aspects of the same problem—changing of conditions of labor, the reconstruction of the industrial environment in which the worker is laboring, and the betterment of his living conditions.

The October revolution determined the basic principles of social defence for the proletariat of Russia, having given over the safeguarding of labor and social insurance of the toilers into the hands of the working class, and for the first time it has created organs of factory inspection on the basis of elective representation.

But the acute civil war and the economic work of organization, as the fundamental problem which has been confronting the working class during the first year of the October coup d’État, have diverted the attention of the proletariat from a problem of no lesser significance—the safeguarding of its health, as the main source of national economy—and its economic organizations became indifferent. This is the reason why the working class paid but very little attention to questions of labor safeguards and social insurance, as well as to the institutions in charge of these questions.


At the present moment, however, the building of a new life, the reconstruction of the conditions of labor on a Socialist foundation, the safeguarding of production for the life and health of the workers, the betterment of their living conditions, the workers’ insurance against all accidents depriving him of his labor power, the amalgamation of the various kinds of insurance agencies into one powerful organization, and the management of the same, are becoming the most important problems which the vocational unions are to solve. Together with the economic work of organization which includes the safeguarding of labor, social insurance of the toilers must take the proper place in the every-day work of the unions.

Taking all this into consideration, the second Congress of Vocational Unions finds it necessary that the vocational unions—

1. Take active part in the construction of united government insurance bodies through the formation of corresponding subdivisions within the departments of labor of the local Soviets, in accordance with the instructions of the Department of Social Insurance and Labor Safeguards of the People’s Commissariat of Labor; 2. That they energetically carry out the “regulations of social insurance of the workers” of October 31st, 1918; 3. That they immediately start the organization within the unions of permanent committees on the safeguarding of labor, and of nuclei for the same within the various mills and factories for the purpose of cooperating with the governmental institutions charged with the safeguarding of labor; 4. That they intensify the work on the spot for the creation of labor inspection by means of selection and training for this purpose of the active workers; 5. That they practically spread the validity of the safeguarding of labor regulations and their enforcement over all types of labor (in the building trades, in the transport service, over domestic servants, commercial and office workers, restaurant help, and agricultural workers); 6. That they pay particular attention to the conditions of labor in the small semi-handicraft establishments; 7. That they assist in the practical efforts of labor inspection to remove the children from the works and for the introduction of a shorter work-day for minors, enabling them at the same time to continue their education; 8. That they take an active part in the organization of local sanitary-hygienic and technical investigations of the conditions at the factories and mills, and in the working out of various obligatory standards and various measures for the safeguarding of labor; 9. That they carry out the principles of labor safeguarding through the current activity of the local and central organs regulating the nation’s economy; 10. That they take an active part in the work of improving the living conditions of the working population; 11. That they energetically push the agitational and educational work among the proletarian masses along the lines of vocational hygiene and sanitation and the technique of insuring safety, as well as on general questions of social insurance and labor safeguarding.

THE INTERRELATION OF THE DEPARTMENT OF SOCIAL INSURANCE
AND LABOR SAFEGUARDS OF THE PEOPLE’S COMMISSARIAT OF LABOR
AND THE PEOPLE’S COMMISSARIAT OF SOCIAL INSURANCE

Whereas in the process of development of the social revolution the division of society into a handful of parasites, on the one hand, and into the masses of workers and peasants overloaded with excessive toil, on the other, is constantly disappearing, and the entire population is being transformed into a mass of producers who must be insured, in accordance with the provisions of the regulations on social insurance of the laborers, of October 31, 1918, against all accidents that might incapacitate them, and

Whereas the work of social insurance can be developed on condition of immediate participation of vocational unions through the medium of the corresponding organs of the People’s Commissariat of Labor,

The second Congress of Vocational Unions holds that all insurance business, its functions, the institutions of the People’s Commissariat of Social Insurance, affecting the workers, must be amalgamated into the common work of the Department of Social Insurance and Labor Safeguard of the People’s Commissariat of Labor.

Having discussed the question of interrelations between the Commissariat of Public Health and the Department of Social Insurance and Labor Safeguards of the People’s Commissariat of Labor, the second All-Russian Congress of Vocational Unions resolved to accept the following principles as a basis for the solution of the question:

1. Social insurance and labor safeguarding being a complete and logically united institution, with the dictatorship of the proletariat in power, when the entire population of the Russian Socialist Federal Soviet Republic is being transformed into laborers, covers the activities of Commissariat of Health, thus representing under the circumstances one of the most important and most necessary links of one chain.

2. It is possible to carry into life the measures of social insurance and labor safeguards with the necessary system and on a vast scale, only if the work is done in the closest connection and intimate touch with the masses that are interested in it, and on the condition that the masses cooperate most energetically.

3. The union of any group of functions into one whole may be determined exclusively by their proximity and similarity, else there is a possibility of the least efficient combination of all or any individual branches of government activity, to the detriment of the regular development and direction of the same and to the certain amount of independence so necessary to each and every one of the activities.

4. The medico-prophylactic activity, like the entire institution for social insurance and labor safeguards, must be united, i.e., both the organizing and organic work is concentrated in the hands of bodies and institutions specially created for that purpose, and depending from the same common central body. As regards the necessary differentiation of labor it must be carried out exclusively within the common bodies, but under no circumstances must it be done by means of tearing away from them of any of the parts closely bound through common problems and peculiarities of the work, no matter how considerable each of them, taken apart, might be.

In view of the above principles, the Congress resolves that:

1. The Commissariat of Public Health must be amalgamated with the Department of Social Insurance and Labor Safeguards.

2. All organs of social insurance and labor safeguards must be built from top to bottom entirely on the basis of vocational unions’ representation.

3. The question of the order of uniting the Commissariat of Public Health with the Department of Social Insurance and Labor Safeguards of the People’s Commissariat of Labor is given over to the Central Executive Committee for consideration.

CULTURAL AND EDUCATIONAL WORK OF THE VOCATIONAL UNIONS
AND VOCATIONAL TRAINING

(Resolution based on Tzyperovich’s and Kossior’s reports)

1. The Socialist revolution has put before the proletariat a series of the most important problems in the field of reconstruction. Simultaneously and in connection with the revolutionization of the economic relations, the working class, as the standard-bearer of Socialism, must get down to the work of creating a proletarian culture, instead of that of the bourgeoisie, in order to prepare the masses for the complete realization of the Socialist Commonwealth.

2. The dictatorship of the proletariat, enabling the working class to fully utilize all the cultural acquisitions of mankind, is already now putting forward a new creative form of the cultural movement, in the shape of proletarian cultural organizations.

3. Vocational unions, as working class organizations, notwithstanding all their weakness and the isolation of the proletarian cultural organizations from the masses of the working class must organically enter into their work, concentrating within them all their activity for the general work along questions of science and art and endeavoring with a view to making it sound, to subject their activity to the influence and guidance of the industrially organized laboring masses.

4. The Vocational Unions are also facing as an immediate problem the utilization on as large a scale as possible of those facilities which have been created by the Commissariat of Public Education in the matter of compulsory, and free education, of education for people above school age, for technical training, etc.

The vocational unions must have their representatives in the Commissariats of Public Education, who are to shed light on the needs of the trade union movement and demand that these needs be satisfied immediately.

5. At the same time, the vocational unions are to continue their cultural and educational activity, creating educational institutions and organizations which would answer the immediate problems of the vocational movement.

6. The building up of clubs, especially for the districts and provinces, is desirable. The type of a vocational-political club is preferable, if possible of a large size.

7. It is necessary at present to build libraries in the districts. But for the central trade-industrial unions special libraries are to a certain extent superfluous (outside of special publications, guides, etc.) They can easily and with much greater success be replaced by public and municipal libraries, to which the trade-industrial unions should turn their attention, by sending to the same the representatives of their cultural-educational departments, as delegates.

8. The publishing associations of the individual unions must be technically united into one Publishing Association of the Council of Unions. The program of the publications must be adapted to the needs of the trade union movement, but at the same time it must be so flexible and elastic as to be of service to the agitational activity of the unions in various directions (appeals, bulletins, etc.). The amalgamation of the periodic trade-union organs,—is a problem of the immediate future. Besides, it is necessary to issue at present a monthly or semi-monthly magazine in order to explain the general questions of theory and practice of the trade-industrial movement.

The organization of central expeditions for all trade union publishing societies is already now an imperative necessity.

9. In order to materialize the above enumerated problems each central body of the trade-industrial unions of a given industry is to have its own cultural and educational department whose activities are to be coordinated by the Soviets (councils) of the Vocational Unions at the center and in the local branches.

On the question of vocational training the Congress finds that:

1. Vocational training, as one of the mightiest weapons in the general system of cultural-industrial socialist education of the working class, may attain its object on condition that, together with the vocational training of the workers along the lines of skilled labor, they will also be given a general industrial education, acquainting them with the general questions of the condition of technical and industrial development, political economy, economic geography, and also the questions of administrative and technical management of an enterprise.

2. Vocational training is concentrated in the hands of the Committee on Vocational Training, which is formed at the Commissariat of Public Education of the representatives of the vocational unions. The Committee is given charge of the general direction, financing and working out of a single program in the field of vocational training. For the management of each individual school a School Soviet is formed of the representatives of the vocational union, the Commissariat, and the students.

3. Within each branch of industry, a network of vocational schools is to be established as soon as the needs and requirements of the corresponding All-Russian Vocational Association are made known. In the first place the schools are being organized in those places and points for the preparation of such groups and types, of skilled workers as will be found necessary by the proper industrial associations.

4. The cultural and educational departments of the All-Russian Industrial Associations are connected with the Committee on Vocational Training of the Commissariat of Education and are to determine both the quantity and type of school needed and the technical possibility of their opening in this or that particular locality. The Committee is bound immediately to satisfy these demands, in case of necessity taking a census of the technical personnel available as instructors in vocational schools.

5. The vocational unions will utilize the schools for the organization of courses and lectures on questions of theory and practice of the labor movement, striving at their widest possible development and their transformation into a disseminator of all kinds of cultural and technical knowledge among the proletarian masses.

THE QUESTION OF PROVISIONING

(A resolution based on Comrade Antzelovich’s report)

Fully supporting the general principal policy of the Workers’ and Peasants’ Government on the questions of provisioning and supplying the population, taking into consideration the extraordinary difficulty of the food situation, caused by the general conditions of the moment and by the weakness of the food supplying apparatus, the Congress resolves to give its best forces to the work of organization of the provisioning work, to continue the work of mobilization and centralization for this purpose of the proletarian forces on an all-Russian scale, and is hereby submitting for the approval of the Council of People’s Commissaries the provisions stated below:

1. The Congress recognizes the War-Provisioning Bureau of the All-Russian Soviet of Vocational Unions, acting in accordance with the instructions adopted by the Soviet, as the central body in charge of mobilization and distribution of the proletarian forces in the field of provisioning.

In order to fulfil its tasks the War-Provisioning Bureau of the All-Russian Soviet of Vocational Unions: (a) mobilizes the labor power, selecting it from among the vocational unions and their organs (the shop committees, etc.); (b) promotes the workers into the positions of members of the colleges, provincial provisioning committees, district provisioning committees, and other provisioning organizations, appointing them to office through the People’s Commissariat for provisioning; (c) sends the workers’ provisioning detachments composed of the best forces into the villages to do the work of organization. The detachments are working under the leadership of members delegated by the War-Provisioning Bureau into the local provisioning bodies, and are to act as auxiliary organizations to those provisioning bodies; (d) it organizes the provisional expeditions with special tasks to aid the provisioning organizations among them in the localities freed from occupation; (e) it organizes the work of labor inspection, working under the control of the War-Provisioning Bureau, both in the field of provisioning and in the allied fields of transportation, etc.; the problems of inspection consist of the renovation, reorganization and the placing of the entire system of provisioning bodies on a proletarian basis; (f) it selects with the aid of the proper vocational unions specialists in different lines of the provisioning work, making them available to fill executive offices; (g) in its work the Central War-Provisioning Bureau is leaning for support on the auxiliary local war-provisioning bureaus of the Soviets of Vocational Unions, uniting the entire activity of the vocational unions for the betterment of the provisioning work.

2. From the point of view of unity of the general system of distribution of necessaries, the Congress deems it necessary to put into practice in full measure the participation of labor cooperation in the matter of distributing the products so that, in the course of time, and labor, all the united system of distribution may be organized after the pattern of a single type of consumers’ communes.

Workers’ cooperative societies must become the chief distributors of products among the workers.

Considering it necessary thus to impose on the workers’ cooperative societies the extremely important task of constructive Socialist work and the work of actually supplying the workers with the necessaries, without which the productivity of labor cannot be increased, the Congress holds that these functions can best be carried out by the workers’ cooperatives on the following conditions: (a) the creation of a united organized basis for the cooperative and vocational associations (factory or mill committees), which is to be carried into practice by means of an agreement between the All-Russian Council of Vocational Unions and the All-Russian Council of Workers’ Cooperative Societies; (b) the All-Russian Councils of Vocational Unions and the Workers’ Cooperative Societies exchange representatives; (c) all members of the vocational unions must join the Workers’ Cooperative Society and every member of the latter must become a member of a vocational union; (d) the common leading body of the workers’ cooperative societies must be the meeting of representatives (conferences) of the shop committees and collective associations, uniting the employees and the laborers not occupied in the mills and factories; (e) the workers’ cooperatives must immediately be induced to participate in the broadest possible manner in the work of organizing all municipal commerce; the control and general direction in the matter remaining in the hands of the provisioning bodies; (f) the existing special productive-distributive organs such as that in charge of transportation of the provisions, waterway transportation of provisions, (canals, rivers, etc.), must be transformed into well organized, open workers’ cooperative societies; (g) the workers’ cooperative societies are to be induced to take up the practical work of organization of these branches of industry whose scale and problems justify such work, and which are engaged in the production of the prime necessities.

3. The furnishing of the proletariat with the products provided for it by the government plans of distribution, must be insured through the appropriation of a special fund for the purpose on the plan adopted for the army. The special department of the Commissariat for Provisioning which is in charge of the planning, calculating, and distributing of the products intended for the workers, must be organized in accordance with an understanding between the All-Russian Council of Vocational Unions and the Council of Workers’ Cooperatives, and it must not form its own technical and economic apparatus.

4. In order to help the methods of proletarian work to permeate more fully the entire system of the provisioning institutions it is necessary to inject into their midst representatives of Vocational Unions and Workers’ Cooperative Societies, particularly representatives of the All-Russian Council of Vocational Unions and the All-Russian Council of Cooperative Societies, into the Collegium of the People’s Commissariat for Provisioning.

In the matter of preparing the products which are subject to monopoly, by government counter-agents (as per decree of January 21st) the central workers’ cooperatives (city) and all centralized workers’ cooperative organizations (regional, provincial and all-Russian) are to be called upon to help, while the matter of preparing the products not subject to monopoly should be entirely given over to the cooperative societies, headed by the Workers’ Cooperative Society, the management to be given over to the Central Buying Committee (Tzentrozakup) and a corresponding portion of the products is to be set aside for the needs of the army.

5. In order to create a solid basis in the matter of supplying farm products and with a view to intensifying agriculture and other types of farming it is necessary to call upon the workers’ cooperative societies to properly utilize and organize the large Soviet agricultural establishments and other farming undertakings.

6. For the successful solution of its tasks in the domain of Socialist construction work it is necessary to bring about the closest organizational union and coordination of activity of the vocational unions and workers’ cooperative societies in the matter of raising the class consciousness of that proletariat and, for this purpose, the joint organization of workers’ homes, clubs, institutes for practitioners, and so on.

THE QUESTION OF ORGANIZATION

(Resolution based an M. Tomsky’s report)

1.
GENERAL PRINCIPLES

1. Adapting its organizations to the conditions of the economic struggle in capitalist society, the working class in the interests of economy and concentration of its divided forces, gradually passed over from the close narrow guild organizations to the broader vocational and, finally, in the course of struggle against capitalism, building its forces on the principle of more efficient centralization of power for the realization of its war aims (class war aims), it came to form organizations embracing all the workers of a given branch of industry (production) into one union.

The industrial union is one union having the follow-lowing basic characteristics: (a) the union rallies all the workers and other employees engaged in a given branch of production, regardless of his functions; (b) the treasury is centralized; (c) the business of the union is transacted on the basis of democratic centralization; (d) the wage scales and conditions of labor are determined by one central body for all the categories of labor; (e) a uniform principle of construction from top to bottom; (f) the sections are playing the part of technical and auxiliary organs; (g) the interests of the industrially organized workers and other employees of a given industry are represented before the outside world by one central body.

2. The industrial union comprises only the permanent workers and employees of a given industry who are directly engaged in the process of production or serve to aid the same. All auxiliary branches serving not production but the producers and all the temporary and casual help remain members of their industrial union.

3. This principle of construction of our unions recognized by the third Conference of the Vocational Unions, and by the first All-Russian Congress of Vocational Unions, presupposing the union of all the workers of a given industry into one organization (union), can be consistently carried into practice only by means of uniting all the workers and employees (“higher” and “lower”) into one union, which became possible of realization only after the political and economic prejudices separating the laborer from the other employees and from the technical personnel have been done away with.

4. Even if the first Congress of Vocational Unions considered it impracticable to unite into one union all the higher employees and laborers,—at the present moment, after a year of proletarian dictatorship during which a good deal of the antagonism between the different categories of laborers and other employees has been spent, when it has been proved from experience that one union in its turn leads to the eradication of all antagonism in the midst of the workers—it must now be recognized as desirable and necessary to unite into one union all persons who are wage workers engaged in one establishment, one industry or one institution.

Only in such establishments or institutions where the hiring of laborers and other employees and the increase or decrease of their wages is being decided by one member of the administrative or technical personnel, the latter cannot be members of the given union.

5. The industrial principle of union structure as applied to workers occupied in other branches of national industries, than manufacture (transportation, commerce, and farming), and also in institutions fulfilling definite functions of government (postal-telegraph, medico-sanitary departments, education, etc.), must be used to unite the workers of small isolated branches of industry and management into more powerful unions. As a basis for such amalgamation one must take the similarity of conditions of labor and the functions carried out.

6. Categorically defending the consistent introduction and application of the principle underlying production as regards all categories of workers, not accepting into its labor organizations those unions which are built on guild, corporation and narrow trade lines, for the purpose of better serving the economic interests of the most typical industrial groups and categories, the organization of sections on a local and national scale is allowed within each vocational union.

The unions binding together several allied branches of industry have the right to form industrial sections, the same having the right to call independent Congresses in order to decide the questions of their own industry, on condition however, that the decisions of such sectional Congresses, which will be contrary to the rulings of the general Congress or the regulations of the leading organs of the labor union movement, may be annulled by the leading body of the industrial union.

7. Striving towards unity and smooth work in labor union activity and the greatest efficiency in the utilization of the power and means at the disposal of the labor unions, it is necessary to recognize most definitely the principle of centralization of the union organization, based on unity and centralization of union finances and strict inter- and intra-union discipline.

8. With this principle as a starting-point, the organization of the section cannot have the character of open or masked federalism. Under no circumstances could the sections be allowed to have separate sectional treasuries, additional assessment of members of the sections for organization and agitation and generally for any work of the union, neither can they be allowed independent representation outside of the union or to build the leading union organs, committees, on the principle of sectional representation.

9. In exceptional cases of reconstruction of the existing federated unions into a centralized industrial union, only as an allowance for the transitional stage the Executive Committee elected at the meeting of all the delegates or at the meeting of the All-Russian Congress, can be enlarged through the addition of representatives of the sections, who then have no vote, only a voice.

10. All attempts to violate the principle of industrial organization for the purpose of restoring the federated trade unions by means of organization of the inter-sectional bureaus uniting analogous sections of the various industrial unions, must be emphatically condemned.

11. Fighting for the complete annihilation of classes, at this transitional period of proletarian dictatorship, the Russian trade-union movement aiming at the union of all workers into centralized industrial unions for the purpose of subjecting the semi-proletarian elements to the influence of the economically organized proletariat and inducing it to enter the class struggle and take part in Socialist reconstruction; we think it necessary to get the new, and as yet unorganized, strata of government and social workers to join the All-Russian Vocational Associations, on condition of their complete submission to proletarian discipline and to all regulations of the leading central bodies of the trade union movement, and particularly, the principles of organization.

12. At the same time it would be the greatest error at the present stage of development of our trade union movement with its insufficient degree of organization, to infuse into it the craftsmen and small shop owners who due to their isolation and unorganized state, do not allow of proletarian control; the same applies to the labor “artels,” “unions of labor communes” and so-called professional people who are not wage workers.

Being the representatives of the dying crafts and petty bourgeois industry, these elements permeated with the conservative economic ideology of individual and small-scale production (artel), due to their numerical size, are liable to disorganize the ranks of the economically organized proletariat.

13. Considering as the only correct and fundamental basis for the union of the workers into industrial unions, the economic basis (the economic part played by the groups of laborers in the general system of national economy), the All-Russian Vocational Association cannot accept into its midst unions built along national, religious, and generally, any unions not built along economic lines.

14. Uniting the laborers and other employees into unions, independently of their political and religious beliefs, the Russian trade union movement as a whole, taking the position of the international class struggle, resolutely condemns the idea of neutralism, and considers it a prerequisite for the admission of individual unions into the all-Russian and local associations—that they recognize the revolutionary class struggle for the realization of socialism by means of the dictatorship of the proletariat.

15. Regarding the Russian labor-union movement as one close proletarian class organization, having one common class aim—to win and organize the socialist system, one must admit that any member of any industrial union, affiliated with the all-Russian or local union council, who is fulfilling his duties as such, being at the same time a member of the All-Russian General Vocational Association, upon being transferred from one industry to another, joins the proper union with the rights of an old member, without paying any initiation fee. No one must be at the same time a member of two unions.

16. This latter rule wholly applies also to the group transfer of whole establishments from one union to another—no payments are to be made out of the treasury of the unions, nor are to be made either to the members who leave it or to the union into which they are transferred, by the first union.

17. Endeavoring to better the economic conditions of all the workers, regardless of whether they are members of the union or not, the unions taking upon themselves the responsibility for the proper functioning of an establishment or institution, for the labor discipline among the workers and the enforcement of the union regulations of wages and standards of production, the unions must endeavor to introduce compulsory membership in all the establishments and institutions entering into it, through resolutions adopted at general meetings of the workers.

18. Recognizing the necessity of a united plan for the construction of all trade unions as the only condition insuring right relations between the individual local organizations and their centers, also insuring the enforcement of union regulations and union discipline, the second Congress thinks it necessary, for the purpose of creating unity of activity on a local as well as national scale, to adopt a united scheme for the structure of the industrial unions and their combines.

2.
THE STRUCTURE OF THE TRADE UNIONS AND SOVIETS:

1. The highest directing body of the all-Russian labor union movement is the All-Russian Congress of Trade Unions and the All-Russian Central Soviet of Vocational Unions operating from one Congress to the other, on the basis of principle regulations adopted by the Congress.

Note. A conference is called only in case it is impossible to call a properly organized congress.

2. All regulations of the All-Russian Congresses, Conferences and the All-Russian Central Council of the Industrial Unions are compulsory not only to all the unions, affiliated with the All-Russian Vocational Association, but for every individual member of a union, as well.

3. Violation of the rules and disregard of the same on the part of individual unions carries with it expulsion of such a union from the family of the proletarian unions.

4. The supreme organ of the All-Russian Industrial Union is its Central Committee; all rulings of that committee which do not contradict the regulations issued by the higher councils of the All-Russian General Vocational Association are obligatory for all of its branches and for each and every one of its members.

5. All local councils of the unions are being constructed according to the plan of the All-Russian Central Council of the Vocational Unions, with a corresponding proportional change of numerical ratio. All congresses of vocational unions are being called on the principle of direct proportion.

6. The rulings of the All-Russian Industrial Unions cannot be nullified by the rulings of the local councils of unions and are obligatory for the organs of the given union in each locality.

7. The local councils of the Vocational Unions being the leading organs of the labor union movement and authorized representatives of the entire proletariat, economically organized within a certain locality, are at the same time guided in their activities by all the rules of the All-Russian Congresses, Conferences and the All-Russian Central Council of the Trade-Industrial Unions, and as regards the branches of the industrial unions, the regulations laid down by their guiding central bodies are obligatory. The rulings of the local Trade Union Councils which are in contradiction to the regulations of the policy of the entire unions or their managing bodies, are not obligatory for the local branches of the industrial unions.

8. The branches of the All-Russian Industrial Unions affiliated with the All-Russian Central Trade Unions Council automatically enter into the local Trade Union Councils.

9. The local Trade Union Councils are to see to it that the unions are properly organized, and that they follow the directions issued by the governing bodies and fulfil their financial obligations towards the unions; they are also to aid and support them in their activities.

10. In the interests of centralization of union activity, the strengthening of the ties between the centers and the local bodies, and in order to place the finances of the unions on a proper plane and bring about closer cooperation and connection between the trade unions on the one hand, and the organs of the Supreme Council of National Economy and the Commissariat of Labor, on the other, in the work of bringing about a uniform structure of the Trade Unions and Union Councils and standardizing the wage scales throughout the country,—one must admit that the geographical (provincial) amalgamations as well as the provincial Union Councils are only unnecessary organs of transmission between the center and the periphery which constitute a nonproductive expenditure of energy and means.

11. The All-Russian Centers, their branches and subdivisions in the various localities, united through the Trade Union Councils, constructed after the pattern of the All-Russian Central Trade Union Council, the Shop Committees or Employees’ Associations (Collective Associations) as the original nuclei of the trade unions—this is the best scheme of organization structure, answering the basic problems at the present moment confronting the trade union movement. Territorial grouping according to divisions and subdivisions should be established by the All-Russian Central body of the given union, depending upon the geographical area and degree of concentration of any given branch of industry, keeping, insofar as possible within the boundaries fixed by the administrative divisions.

Only by observing the given scheme of organization can the finances of the union be placed on a proper level and the centers receive due financial strength, which is a necessary condition for further and more systematic activity.

12. The most suitable principle by which to determine the membership dues during the period of chronic depreciation of paper money would be a proportional assessment. The normal amount of membership dues, the Congress considers is one per cent of the wages earned. Special additional dues or assessments for special needs of the local divisions of the industrial unions are allowed only upon the resolution of general meetings, or meetings of delegates or conferences of a given union.

13. Regarding the Branch of the Industrial Union (within a province or region) as the highest organ of the union in the given locality (government or region), as the first step toward the actual realization of the centralization of the union funds, the Congress considers the following financial relations as necessary:

(a) Fifty per cent of all membership dues of the branches of the All-Russian Central Industrial Union go to the All-Russian Central Committee of the given Industrial Union.

(b) The divisions (district and sub-regional) of a branch (government or region) of a Union work according to the budget approved by the latter.

(c) Ten per cent of all the funds remaining at the disposal of a branch of a union goes to the local Trade Union Council.

(d) The local bureaus of the Trade Unions (in small towns) exist on 10 per cent of the budget appropriated by the branch of the industrial union to its divisions.

(e) The local unions which are not affiliated with any all-Russian union associations are to give 10 per cent to the local Trade Union Council, and 10 per cent to the All-Russian Central Trade Union Council transferred through the local Trade Union Council.

14. All trade organizations as well as members who have not met their financial obligations within three months without sufficient reasons, are automatically expelled from their union and from the All-Russian Trade Association, and can be reinstated only upon payment of the sum they owe plus the usual initiation fee.

15. The following initiation fees are to be fixed: (a) half a day’s wages for individual members entering the union, (b) the All-Russian Trade Union upon entering the All-Russian Central Trade Union Council pays 10 per cent of all the initiation fees collected from the total number of its members, (c) the same amount is paid by all the branches of the All-Russian Trade Unions upon their admission into the local Trade Union Council, (d) the local unions which have no all-Russian trade union pay upon entering the local council 10 per cent of the initiation fees collected, a half of which amount goes to the All-Russian Central Trade Union Council.

16. In the interests of the development of union activity with the present character of the Russian trade union movement, all special funds which cannot be touched, such as the strike fund, the reserve funds, etc., must be annulled as such and added to the rest of the union’s general treasury. The fund for the aid of unions outside of Soviet Russia is being created by the All-Russian Central Trade Union Council for which purpose special collections and contributions are to be used.

17. In the interests of the proper arrangement of the control system, the simplification and systematization of the union’s business, we must make it obligatory to have a single uniform system, as worked out by the All-Russian Central Trade Union Council.

18. The basic nucleus of the Industrial Union on the spot is the Factory Committee or the Collective Association of the office employees in the form of an Office Workers’ Union.

19. “Regulations of the Factory and Mill Committees” adopted by the Moscow Trade Union Council and approved by the All-Russian Central Council of the Industrial Unions coordinated with the resolutions of the present second All-Russian Congress of Trade Unions must be used as the basis for the determination of the part, the tasks and interrelations of the Factory and Mill Committees with the other organizations.

20. As a basis for the regulations governing the Employees’ Associations (Collective Associations), in addition to the general principles which form the basis of the “Factory and Mill Committee Regulations,” the following principles are to be laid down:

(a) Participation in the hiring and dismissal of employees, (b) obligatory participation in the Wage Scale Committees and endeavor to see to it that the wage scale regulations be carried out in practice, (c) the recognition of the collective association and its rights to exist only as an organ of the corresponding union, (d) participation in the organization and improvement of the technical apparatus of the given institution, (e) non-interference with the general direction of the activities of the state and social institutions.

The All-Russian Central Trade Union Council is authorized within the shortest time to work out and publish the regulations of the Factory and Mill Committees and the Employees’ Collective Associations.

21. To avoid mixing up of terms and ideas regarding the character of the union organs we must recognize the uniform terminology of the same, as carrying out the same functions, namely:

(a) All-Russian Central Trade Union Council retains its name, (b) the leading organs of the All-Russian Trade Unions are called “Central Committee of the Trade Unions,” their executive organs are to be called: “Presidium of the Central Committee of the Trade Unions,” (c) their government (province) organs—“The management of the government (province) or regional branch of the All-Russian Trade Union,” (d) the Local Government Trade Union Councils are called: “Such and such Government Trade Union Council,” and the district councils as well as the small town councils “Such and such District Trade Union Bureau,” “Such and such Trade Union Bureau.”

22. All-Russian Central Trade Union Council on the basis of the principles laid down, must work out in the shortest possible period the following sample by-laws which are to be obligatory for all trade organizations affiliated with any of the following All-Russian Trade Associations:

(a) The All-Russian Trade Union, (b) local union having no corresponding all-Russian association, (c) Local Trade Union Council, (d) Trade Union Bureau.

23. The All-Russian Central Trade Union Council must work out and enact through the People’s Commissariat of Labor and the Soviet of National Economy or the All-Russian Central Executive Committee, the regulations governing the coalitions on the following basis: (a) the right to be called a union is given only to trade unions affiliated with the All-Russian Central Trade Union Council, registered and published by the latter, (b) all other organizations of an economic character not affiliated with the All-Russian Trade Association are to be called “societies.”

24. The All-Russian Central Trade Union Council and the government councils must periodically report on all unions registered with it.

25. In accordance with the general principles of organization, adopted at the second Trade Union Congress the corresponding amendments are to be introduced into the by-laws of the All-Russian Central Trade Union Council adopted by the first All-Russian Trade Union Congress.

BY-LAWS OF THE ALL-RUSSIAN CENTRAL TRADES UNION COUNCIL

1. The All-Russian Trade Union Congress elects an executive body of the All-Russian Central Trades Union Council—the presiding officers (Presidium), who are to submit a detailed report on their activity to the following Congress.

2. The supreme leading body of the All-Russian Trade-Union Association is the All-Russian Central Trade-Union Council, which is to be guided in its activity by resolutions of congresses and conferences and which is responsible for its actions to the All-Russian Trades Union Congress.

3. All the regulations of the All-Russian Congresses, Conferences as well as those passed by the All-Russian Central Trades Union Council are obligatory to all unions affiliated with the All-Russian Trades Union Association as well as to every union member. The violation of these rules and disobedience of the same carries with it expulsion from the family of proletarian unions.

4. The All-Russian Central Council is to fulfil the following tasks:

(a.) It is to maintain and establish a connection with all the existing and newly arising trade union organizations;

(b.) It is to aid in the creation of local all-Russian vocational unions as well as the amalgamation of all trades;

(c.) It is to establish connections with the central trade union bodies of all countries;

(d.) It is to carry out all the necessary work connected with the preparation and calling of All-Russian conferences and congresses, it works out a program of business to be transacted by the congresses, it takes care of the preparation of reports, and it publishes the fundamental principles;

(e.) It appoints the time for the calling of conferences and congresses;

(f.) It periodically publishes in the press reports on its activities;

(g.) It issues its bulletin (periodical organ);

(h.) It connects, and acts as representative for the entire trade-union movement before the Central government institutions and social organizations;

(i.) It aids the unions in their work of organization and guides that work, for which purpose it issues various by-laws, instructions, forms of accounting (book-keeping), etc.;

(j.) It takes part in organizations and institutions, serving the interests of cultural and educational activity among the proletariat;

(k.) It aids in promoting the development of the trade union movement, by means of verbal and written propaganda and agitation.

6. In order to accomplish its tasks successfully, the All-Russian Central Trades Union Council organizes the necessary departments.

7. The funds of the All-Russian Central Trades-Union Council consist of the following: (a) 10 per cent of the membership dues collected by the Central Committees of the All-Russian Trade Union Association; (b) five per cent of the revenue coming from the local unions not affiliated with the All-Russian Trade Unions, but affiliated, through the local Soviet, with the All-Russian All-Trades Association, (c) out of appropriations designated by the organs of the Soviet Government for specific purposes.

8. The All-Russian Central Trade Union Council is composed of the following:

(a) Nine members elected by the Congress, and

(b) Representatives of the All-Russian Trade Unions, on the basis of one delegate to every 30,000 to 50,000 workers, and one more delegate to every additional 50,000 dues-paying members.

Note. All-Russian Trades Unions whose membership is below 30,000, send their representative, who has a voice, but no vote. Unions whose dues-paying membership is below 30,000 may unite and send a delegate to the All-Russian Trades Union Council, who will then have the right to vote at the meetings.

9. The nine members elected by the congress are to be the presiding officers of the All-Russian Central Council; in order to effect a change in the composition of the presidium, a vote of not less than two-thirds of the general number of members of the All-Russian Central Council is required, or if the All-Russian Associations demand the recall of that body, the total membership of the associations demanding such recall must exceed one-half of the entire membership of the All-Russian Association comprising all trades.

Note. The members of the presidium (executive committee), are to be replaced (in case they resign or are recalled) at the plenary session of the All-Russian Central Trade Union Council.

10. Such recall and election of a new executive body may take place only in extraordinary cases when the general conditions do not permit the calling of an extraordinary congress or conference.

11. A plenary session of the All-Russian Central Council takes place at least once a month. The All-Russian Central Council at a meeting of all its members elects an auditing committee and other committees and responsible officers, leaving to the executive committee (presiding officers) to organize branches (departments), to invite workers to join them, etc.

12. The All-Russian Conference of Trades-Unions is to consist of all the members of the council (Soviet), and of representatives of provincial trades-union councils—one to every 25,000 members.

Note. Representatives of All-Russian Associations who are admitted to the plenary session (plenum) with only a voice and no vote, have the right to vote at the conference.

13. The All-Russian Central Trades Union calls congresses of the trades unions at intervals not longer than one year. Extraordinary congresses are called at the decision of the All-Russian Central Council, at the demand of All-Russian Associations, or in cases where the All-Russian Associations having not less than half the total membership affiliated with the All-Russian Workmen’s Association, demand that an extraordinary convention be called.

14. The right to representation at the Trades-Union Congresses is restricted to those unions which in their activity are guided by the principles of the international class struggle of the proletariat, which are affiliated with the local councils of the trades unions and which pay their dues regularly.

15. The following have a right to vote at the congress:

(a) The local trades unions having a dues-paying membership of no less than 3,000, are entitled to one delegate, and those whose membership exceeds 5,000 are entitled to one delegate for every 5,000 dues-paying members (complete 5,000 only, not for any fraction thereof).

(b) The central All-Russian Associations are entitled to one delegate each; but in case the total number of workers affiliated with them exceeds 10,000 they are entitled to two delegates.

(c) Petrograd and Moscow send three delegates each.

(d) Local unions having under 3,000 members may amalgamate for the purpose of sending their delegates.

16. The following have a voice, but no vote:

(a) Representatives of the central bodies of Socialist parties; of the All-Russian Central Executive Committee of the Council (Soviet) of Workers’ and Peasants’ Delegates; individuals and institutions at the invitation of the All-Russian Central Council or the Congress itself.

(b) All members of the All-Russian Central Soviet.

17. The rules of procedure for the congress (convention) are worked out by the All-Russian Central Council and are subject to approval by the congress.

18. The order of business (program) to be transacted at the convention is to be made public at least one month before the congress is convened. Individual organizations have the right to introduce new points into the order of business not later than two weeks prior to the meeting of the congress, of which changes the All-Russian Central Council immediately notifies, through the press, all the trades unions.

ORDER OF ADMISSION OF ALL-RUSSIAN TRADES UNIONS INTO THE
ALL-RUSSIAN CENTRAL TRADES UNIONS COUNCIL

19. An All-Russian Trades Union, desiring to enter the All-Trade Association must submit to the presidium of the All-Russian Central Trades Union Council the following documents:

(a) the by-laws,

(b) information on the number of dues-paying members,

(c) information on the existing branches and number of dues-paying members of each of them,

(d) minutes of any convention or conference at which the central committee of the organization has been elected,

(e) financial report,

(f) sample copies of such publications as the All-Russian Trades Union has published, and all other material shedding light on the character of the union’s works.

20. An All-Russian Trades Union may be registered with, and admitted into, the All-Russian Central Trades Union Council on the following conditions:

(a) the by-laws and the structure of the union are to be brought into accord with the general principles of organization as adopted by the convention and carried out by the All-Russian Central Trades Union Council;

(b) the character and activity of the union must not contradict the resolutions of the All-Russian Trades Union Convention or the general tendencies of the Russian trades union movement;

(c) the payment of a corresponding initiation fee;

21. An all-Russian union may be expelled at a plenary session from the All-Russian Central Trades Union Council on the following grounds:

(a) failure to obey the general rules of discipline obligatory to all trades union organizations;

(b) failure to pay membership dues within three months, without any reasonable cause.

22. The All-Russian Central Trades Union Council, in cases where the central committee of the All-Russian Trades Union violates the decisions of the convention, conference, or All-Russian Central Trades Union Council, may dissolve the same, and must immediately call an All-Russian convention or conference of the given trades union for the purpose of electing a new directing body.

November 7, 1919.

THE FINANCIAL POLICY AND THE RESULTS OF THE ACTIVITIES
OF THE PEOPLE’S COMMISSARIAT OF FINANCE

(1917–1919)

I

When the Soviet Government was first organized, a number of purely financial questions arose which necessitated the utilization of the services of the old financial-administrative apparatus in the form in which it existed prior to the October Revolution. It is quite natural that the first period of work in the domain of finance, that is, between the October Revolution and the Brest-Litovsk Peace, had of necessity to be marked by efforts to conquer the financial apparatus, its central as well as its local bodies, to make a study of its own functions and, somehow or other, to adapt itself to the requirements of the time.

While in the domain of the Soviet Government’s economic and general policy, this period has been marked by two most far-reaching and important changes which, strictly speaking, had been prepared prior to the October Revolution—the nationalization of banks and the annulment of the government debt; the financial policy, in the narrow sense of the word, did not disclose any new departures, not even the beginnings of original constructive work.

Gradually taking over the semi-ruined pre-revolutionary financial apparatus, however, the Soviet Government was compelled to adopt measures for the systematization of the country’s finances in their entirety.

This second period in the work of the People’s Commissariat for Finances (approximately up to August, 1918) also fails to show any features of sharply marked revolutionary change. From the very beginning the authorities have been confronted with a chaotic condition of the country’s financial affairs. All this, in connection with the large deficit which became apparent in the state budget, compelled the Commissariat of Finance to concentrate its immediate attention on straightening the general run of things and, thus, prepare the ground for further reforms.

In order to accomplish the systematizing of the financial structure, the Government had to lean for support on the already existing unreformed institutions, i.e., the central department of finance, the local administrative-financial organs—the fiscal boards tax inspection, treasuries, excise boards—and, more particularly, the financial organs of the former local institutions for self-government (Zemstvos, and municipalities).

Such a plan of work seemed most feasible, since the apparatus appeared suitable for fulfilling slightly modified functions; but the local government was not yet sufficiently crystallized or firmly established, neither was any stable connection established between that local government and the central bodies.

Under such circumstances, the old institutions, which by force of habit continued to work exclusively at the dictate of and in accordance with instructions from the central bodies, seemed to be the most convenient and efficient means of carrying out measures which the central authorities had planned to straighten out the general disorder prevailing in financial affairs.

However, this idea soon had to be discarded, the local Soviets insofar as they organized themselves and put their executive organs into definite shape, could not and did not have the right to neglect the work of the old financial organs functioning in the various localities, since the Soviets represented the local organs of the central government as a whole, and since it was upon them that the responsibility for all the work done in the localities, rested.

Under such conditions friction was inevitable. In accordance with the principles of the old bureaucratic order, the local financial institutions neither knew nor had any idea of subordination other than the slavish subordination to the central authorities which excluded all initiative on their part.

Under the new conditions, these local financial institutions were to constitute only a small component part of the local Soviets. Acute misunderstanding of the local authorities among themselves and between the local and central authorities on the subject of interrelations among all of these institutions, have demonstrated the imperative necessity for a reorganization. With this work of reforming the local financial organs (September, 1918) a new period opened: the third period in the activity of the commissariat, which coincides with the gradual strengthening of the general course of our economic policy. The economic policy definitely and decisively occupies the first place which duly belongs to it, while the financial policy, insofar as it is closely bound up with the economic policy, is being regulated and directed in accordance with the general requirements of the latter.

II

The financial policy of Soviet Russia was, for the first time, definitely outlined by the eighth (March, 1919) Convention of the Russian Communist Party.

The eighth party convention clearly and concretely stated our financial problems for the transitionary period, and now our task consists in seeing to it that the work of the financial organs of the Republic should be in accord with the principles accepted by the party.

These principles, briefly, are as follows: (1) Soviet Government State monopoly of the banking institutions; (2) radical reconstruction and simplifications of the banking operations, by means of transforming the banking apparatus into one of uniform accounting and general bookkeeping for the Soviet Republic; (3) the enactment of measures widening the sphere of accounting without the medium of money, with the final object of total elimination of money; (4) and, in view of the transformation of the government power into an organization fulfilling the functions of economic management for the entire country,—the transformation of the pre-revolutionary state budget into the budget of the economic life of the nation as a whole.

In regard to the necessity for covering the expenses of the functioning state apparatus during the period of transition, the program adopted outlines the following plan: “The Russian Communist Party will advocate the transition from the system of levying contributions from the capitalists, to a proportional income and property tax: and, insofar as this tax outlives itself, due to the widely applied expropriation of the propertied classes, the government expenditures must be covered by the immediate conversion of part of the income derived from the various state monopolies into government revenue.”

In short, we arrive at the conclusion that no purely financial policy, in its pre-revolutionary sense of independence and priority, can or ought to exist in Soviet Russia. The financial policy plays a subsidiary part, for it depends directly upon the economic policy and upon the changes which occur in the various phases of Russia’s political and economic order.

During the transitional period from capitalism to Socialism the government concentrates all of its attention on the organization of industry and on the activities of the organs for exchange and distribution of commodities.

The financial apparatus is an apparatus subsidiary to the organs of production and distribution of merchandise. During the whole of this transitional period the financial administration is confronted with the following task: (1) supplying the productive and distributive organs with money, as a medium of exchange, not even abolished by economic evolution, and (2) the formation of an accounting system, with the aid of which the government materialize the exchange and distribution of products. Finally, since all the practical work in the domain of national and financial economy cannot and should not proceed otherwise than in accordance with a strictly defined plan, it is the function of the financial administration to create and compile the state budget in such a manner that it might approximate as closely as possible the budget of the entire national economic life.

In addition to this, one of the largest problems of the Commissariat of Finance was the radical reform of the entire administration of the Department of Finance, from top to bottom, in such a manner that the fundamental need of the moment would be realized most fully—the realization of the dictatorship of the proletariat and the poorest peasantry in the financial sphere.

III

The work of the financial institutions for the solution of the first problem of our financial policy, i.e., the monopolization of the entire banking business in the hands of the Soviet Government, may be considered as having been completed during the past year.

The private commercial banks were nationalized on December 14, 1917, but even after this act there still remained a number of private credit institutions. Among these foremost was the “Moscow People’s Bank” (Moscow Narodny Bank) a so-called cooperative institution. There were also societies for mutual credit, foreign banks (Lion Credit Warsaw Bank, Caucasian Bank, etc.); and private land banks, city and government (provisional) credit associations.

Finally, together with the Moscow People’s Bank there existed government institutions—savings banks, and treasuries. A number of measures were required to do away with that lack of uniformity involved and to prepare the ground for the formation of a uniform accounting system.

A number of decrees of the Soviet of People’s Commissaries and regulations issued by the People’s Commissariat of Finance, have completed all this work from September 1918 to May 1919.

By a decree of October 10th, 1918, the Societies for Mutual Credit were liquidated; three decrees of December 2nd, 1918, liquidated the foreign banks, regulated the nationalization of the Moscow People’s (Cooperative) Bank and the liquidation of the municipal banks; and, finally, on May 17th, 1919, the city and state Mutual Credit Associations were liquidated. As regards the question of consolidating the treasuries with the offices of the People’s Bank, this has been provided in a decree issued on October 31st, 1918; the amalgamation of the savings banks with the People’s Bank has been affected on April 10th, 1918.

Thus, with the issuance of all the above-mentioned decrees, all the private credit associations have been eliminated and all existing Government Credit Institutions have been consolidated into one People’s Bank of the Russian Republic. The last step in the process of reform was the decree of the People’s Commissariat of Finance which consolidated the State Treasury Department with the central administration of the People’s Bank. This made possible, by uniting the administration of these organs, the enforcement of the decree concerning the amalgamation of the treasuries with the People’s Bank. The decree of the People’s Commissariat of Finance of October 29th, 1918, issued pursuant to Section 902 of rules on state and county financial organs, practically ends the entire reform of uniting the treasuries with the institutions of the Bank.

This reform constitutes the greatest revolutionary departure, in strict accordance with the instructions contained in the party program. Prior to the completion of this reform, the old pre-revolutionary principle continued to prevail—that of opposition of the State Treasury to the State Bank, which was independent financially, having its own means, operating at the expense of its capital stock, and acting as a depository for the funds of the State Treasury and as its creditor. Insofar as the new scheme of our financial life has been realized, this dualism, has finally disappeared in the process of realization of the reform. The Bank has now actually become the only budget-auditing savings account machinery of the Russian Socialist Federal Soviet Republic. At the present moment it is serving all the departments of the state administration, in the sense that it meets all the government expenditures and receives all the state revenue. It takes care of all accounting between the governmental institutions, on the one hand, and the private establishments and individuals on the other. Through the hands of the People’s Bank pass all the budgets of all institutions and enterprises, even the state budget itself; in it is concentrated the central bookkeeping which is to unify all the operations and to give a general picture of the national economic balance.

Thus, we may consider that the fundamental work, i.e., "the monopolization of the entire banking business in the hands of the Soviet Government, the radical alteration and the simplification of banking operations by means of converting the banking apparatus into an apparatus for uniform accounting and general bookkeeping of the Soviet Republic"—has been accomplished by the Commissariat of Finance.

IV

As regards the carrying into practice of a number of measures intended to widen the sphere of accounting without the aid of money, the Commissariat of Finance has, during the period above referred to, undertaken some steps insofar as this was possible under the circumstances.

As long as the state did not overcome the shortage of manufactured articles, caused by the general dislocation of industrial life, and as long as it could arrange for a moneyless direct exchange of commodities with the villages, nothing else remains for it than to take, insofar as possible, all possible steps to reduce the instances where money is used as a medium of exchange. Through an increase of moneyless operations between the departments, and between the government and individuals, economically dependent upon it, the ground is prepared for the abolition of money.

The first step in this direction was the decree of the Soviet of People’s Commissaries of January 23rd, 1919, on accounting operations, containing regulations on the settling of merchandise accounts (products, raw material, manufactured articles, etc.) among Soviet institutions, and also among such industrial and commercial establishments as have been nationalized, taken over by the municipalities, or are under the control of the Supreme Council of National Economy, the People’s Commissariat for Food Supply, and Provincial Councils of National Economy and their sub-divisions.

In accordance with this decree, the above-mentioned accounts are to be settled without the medium of currency, by means of a draft upon the state treasury for the amount chargeable to the consuming institution, and to be credited to the producing institution, or enterprise. In the strict sense, the decree establishes a principle, in accordance with which any Soviet institution or governmental enterprise requiring merchandise, must not resort to the aid of private dealers, but is in duty bound to apply to the corresponding Soviet institutions, accounting, producing or distributing those articles. Thus, it was proposed, by means of the above-mentioned decree, to reduce an enormous part of the state budget to the mere calculation of interdepartmental accounts, income on one side and expenditures on the other. In other words, it becomes possible to transact an enormous part of the operations without the use of money as a medium of exchange.

As regards the policy of the Commissariat of Finance in the domain of the circulation of money, one of the most important measures in this respect was the decree of the Soviet of People’s Commissaries of May 15th, 1919, on the issue of new paper money of the 1918 type.

This decree states the following motive for the issue of new money: “this money is being issued with the object of gradually replacing the paper money now in circulation of the present model, the form of which in no way corresponds to the foundations of Russia’s new political order, and also for the purpose of driving out of circulation various substitutes for money which have been issued due to the shortage of paper money.”

The simultaneous issue of money of the old and new type made it impossible for the Commissariat of Finance to immediately commence the exchange of money, but this in no way did or does prevent it from preparing the ground for such exchange, in connection with the annulment of the major part of the old money in a somewhat different manner. Creating a considerable supply of money of the new model (1918) and increasing the productivity of the currency printing office, the Commissariat is to gradually pass over to, in fact has already begun, the issue of money exclusively of the new type. A little while after the old paper money has ceased to be printed, the laboring population, both rural and urban, as well as the Red Guards all of whom are not in position to accumulate large sums, will soon have none of the old money. Then will be the time to annul the money of the old type, since this annulment will not carry with it any serious encroachment on the interests of the large laboring masses.

Thus the issue of new money is one of the most needed first steps on the road to the preparation of the fundamental problem, that is the annihilation of a considerable quantity of money of the old type, reducing in this way the general volume of the mass of paper money in circulation.

We thus see that here, too, the Commissariat of Finance followed a definite policy. It goes without saying that from the point of view of Socialist policy all measures in the domain of money circulation are mere palliative measures. The Commissariat of Finance entertains no doubts as to the fact that a radical solution of the question is possible only by eliminating money as a medium of exchange.

The most immediate problem before the Commissariat of Finance is undoubtedly the accomplishment of the process which has already begun, namely, the selection of the most convenient moment for the annulment of the old money. As regards the part which currency generally (at this moment of transition) plays, there can be no doubt that now it is the only and therefore inevitable system of financing the entire governmental machinery and that the choice of other ways in this direction entirely depends upon purely economic conditions, i.e., mainly upon the process of organization and restoration of the national economy as a whole.

V

The explanatory note, attached to the budget for July to December, 1918, thus depicts our future budget: “When the Socialist reconstruction of Russia has been completed, when all the factories, mills and other establishments have passed into the hands of the government, and the products of these will go to the government freely and directly, when the agricultural and farming products will also freely flow into the government stores either in exchange for manufactured articles or as duty in kind ... then the state budget will reflect not the condition of the monetary transactions of the State Treasury ... but the condition of the operations involving material values, belonging to the State, and the operations will be transacted without the aid of money, at any rate without money in its present form.”

It is clear that at present the conditions are not yet fully prepared for the transition to the above-stated new form of state budget. But, in spite of this, the Commissariat of Finance has taken a big step forward in the direction of reforming our budget.

The budget of the Russian Socialist Federal Soviet Republic, adopted by the All-Russian Central Executive Committee on May 20, 1919, represents the experiment in effecting a survey not so much of the financial activity of the state, as of its economic activity, even though it is as yet in the form of money.

In the work of reforming the budget, the Commissariat of Finance has come across two obstacles which are a heritage of the pre-revolutionary time: the division of revenue and expenditures into general state and local, and the hesitation on the part of some to include in the budget all the productive and distributive operations of the Supreme Council of National Economy and of the Commissariat for Food Supply. Both, the first and second obstacles have been somewhat surmounted, and the above-mentioned (third) revolutionary budget is already different from the two preceding budgets in many peculiarities which are very typical. These consist in a complete account of all production and distribution which the state has taken upon itself. This experiment is by no means complete, but the achievement should nevertheless be judged as considerable. The concrete conditions for making out the budget, as is stated in the explanatory note, have already made it possible to enter upon the road of accounting for the entire production and distribution of the nation, and that thereby the foundation has been laid down for the development of the budget in the only direction which is proper under the present conditions.

The budget of the first half of 1919 has followed the same fundamental principles for the construction of the state budget by including the expenditures of the entire state production and distribution as well as the sum total of the revenue-in the form of income from the productive and distributive operations of the state. In other words, this budget for the first time takes into account all the transactions of the Supreme Council of National Economy and of the Commissariat for Food Supply.

The further development of the budget will be directed toward the working out of the details of this general plan, and, in particular, toward differentiating revenue and expenditures: (1) direct, actual money received or paid, and (2) transactions involved in the accounting of material and labor, but not involving any actual receipts of money, or requiring any actual disbursements in money.

VI

In the field of taxation one must bear in mind first that the entire question of taxation has been radically changed with the beginning of Communist reconstruction.

Under the influence of the combined measures of economic and financial legislation of the Republic, the bases for the levying of land, real estate, industrial taxes, taxes on coupons, on bank notes, on stock, stock exchange, etc., completely disappeared, since the objects of taxation themselves have become government property. The old statute regulating the income tax (1916), which has not as yet been abolished, was in no way suitable to the changed economic conditions. All this compelled the Commissariat of Finance to seek new departures in the field of taxation.

However, it was impossible to give up the idea of direct taxation prior to the complete reformation of the tax system as a whole. Our work of Communist reconstruction has not been completed; it would be absurd to exempt from taxation the former capitalists as well as the newly forming group of people who strive for individual accumulation. This is why the system of direct taxation, which has until recently been in operation, was composed of fragments of the old tax on property and of the partly reformed income tax law. However, beginning with November, 1918, to this old system there were added two taxes of a purely revolutionary character which stand out apart within the partly outgrown system “taxes in kind” (decree of October 30, 1918) and “extraordinary taxes” (November 2, 1918).

Both decrees have been described as follows by Comrade Krestinsky, Commissary of Finance, at the May session of the financial sub-divisions:

“These are decrees of a different order, the only thing they have in common is that they both bear a class character and that each provides for the tax to increase in direction proportion with the amount of property which the tax-payer possesses, that the poor are completely free from both taxes, and the lower middle class pays them in a smaller proportion.”

The extraordinary tax aims at the savings which remained in the hands of the urban and larger rural bourgeoisie from former times. Insofar as it is directed at non-labor savings it cannot be levied more than once. As regards the taxes in kind, borrowing Comrade Krestinsky’s expression, “it will remain in force during the period of transition to the Communist order, until the village will from practical experience realize the advantage of rural economy on a large scale compared with the small farming estate, and will of its own accord, without compulsion, en masse adopt the Communist method of land cultivation.”

Thus, the tax in kind is a link binding politically the Communist socialized urban economy and the independent individual petty agricultural producers.

Such are the two “direct” revolutionary taxes of the latest period. In regard to the old system of pre-revolutionary taxes, the work of the Commissariat of Finance during all of the latest period followed the path of gradual change and abolition of the already outgrown types of direct taxation and partial modification and adaptation to the new conditions of the moment, of the old taxes still suitable for practical purposes.

At the present moment the Commissariat of Finance has entered, in the domain of direct taxation reforms, upon the road toward a complete revolution in the old system. The central tax board is now, for the transitional period, working on a project of income and property taxation, the introduction of which will liquidate all the existing direct taxes, without exception. The single tax which is being proposed, is so constructed that it covers the very property of the citizen, i.e., it constitutes a demand that the citizen yield that part of his savings which is above a certain standard, etc.

In closing the review of the activity of the Commissariat of Finance during the two years of its existence, one must note briefly the great purely organizational work, conducted by it on a natural as well as a local scale.

The reform has been definitely directed towards simplifying the apparatus and reducing its personnel as far as possible.

Finally, with this reform, the Commissariat of Finance has been organized in the following manner: the central office, the central budget-accounting board (former People’s Bank and Department of State Treasury) and, finally, the central tax board (former Department of Assessed Taxes and of Unassessed Taxes). Upon the same pattern are also being modeled the local financial bodies.


DOCUMENT IV—A, B, C

From Economic Life, (Nov. 7, 1919). The official organ
of the Supreme Council of National Economy
Finance, food, trade, and industry

A—OUR METAL INDUSTRY

The two years that have passed since the November Revolution have been marked by civil war, which still continues. Russia’s isolation from the outside world, the loss and, later on, the recapture of entire provinces of decisive importance to her industries, the feverish, and therefore unsystematic, transfer of the industries to a peace basis, and then, during the last year the reorganization of the industries, the unusual conditions of transportation, the fuel and the food questions, and as a result of these, the question of labor power growing more acute—this is the sad picture of conditions under which the Russian proletariat has organized and maintained the nation’s economic life.

And though these familiar conditions of actual life have affected all branches of industry, the greatest sufferer in this respect has been the metal industry, which forms the basis for our defence and the foundation for all our industrial life.

We might add here that the metal industry, and in particular the metal working industry as its most complicated and many-sided phase, both in assortment of products and in the nature of production, was by no means strong in Russia even under the rule of the bourgeoisie. As compared with the more developed capitalist countries, the metal industry in Russia has been at a disadvantage because of the very geographical situation of its centers, remote from the sources of raw material and fuel, artificially built up and having suffered all the consequences of an unsound foundation. As a result of these conditions, there is lack of specialization and poor development of large scale production which means a lack of the necessary prerequisites for successful production.

These are the external conditions under which the administration of our metal industry has been compelled to work.

The first and most fundamental problem has been that of systematic monopolization of industry. Only under this form of industrial organization—if freed from all the negative features of the capitalist trust,—is operation possible, even on a reduced scale, so that later on we might lay the solid foundations for new constructive work in the organization of the nation’s economic life of Socialist principles. The process of monopolization may be considered as complete by this time. Large associations have been formed, such as the trust of united government machine shops “Gomza,” amalgamating the largest mills producing the means of transportation and machine construction, and the large metallurgical mills, the trust of state copper working factories, the trust of government automobile works, the trust of government aviation work, the trust of government wire nail, bolt and nut factories, the trust of the Maltzoff Metallurgical mills, the association of the Kaluga metallurgical mills (cast iron, utensils, and hardware), the trust of the Podolsk mechanical and machine construction shops the Petrograd mills for heavy production, the Petrograd mills for medium machine construction, and the Petrograd mills for heavy output (production on large scale) are united under individual district administration boards.

Not all the enterprises consolidated within the associations have become closely bound up among themselves during this transitional period. In a matter of such gigantic proportions mistakes have been, of course, inevitable and they will have to be rectified. However, the results of the experience of the last two years are sufficient ground for the claim that the working class has solved the problem of consolidating industry.

The central administration of the Gomza mills thus characterizes the significance of this consolidation: "The consolidation of the mills working on transportation equipment, working with the metallurgical group makes it possible to utilize most efficiently all the resources available, such as fuel, raw material, technical forces, and the experience of the various mills with a view to obtaining the best possible results under the existing conditions. The amalgamation of the mills has already, during the past year, made it possible to distribute among them in the most rational manner, that inconsiderable quantity of metal products and mineral fuel, all products included, which the groups had in its possession. This enabled the mills to adapt themselves to the usage of local fuel. The concentration, even though only partial, of some of the branches of the metallurgical industry, also of the blacksmithing and iron foundry branches, was made possible entirely by the amalgamation. The specialization of the mills, according to the types of steam engines, Diesel or other machines, has been decided along general lines, by the Metal Department of the Supreme Council of National Economy, and the question is being worked out in closest cooperation with the Technical Department of the “Gomza.” The amalgamation of the mills will make it possible to carry out gradually this specialization and utilize its results.

The central administration of the united mills states, in a report of its activities, that owing to the consolidation of the mills, the problems of supplying them with raw material, fuel and labor power, were solved in a fairly satisfactory way, thus placing production on a more or less constant basis. The mills entering this combination, if left to their own resources, would have been doomed to a complete shutdown.

The trust of the airplane building works has so completely amalgamated all the mills, which entered the combination that it now would be at a loss to determine in advance which of the mills would perform any given part of its program of production; to such an extent are these mills bound up together through constant interchange of fuel, raw material, supplies and even labor power.

The process of concentration of the industries in the Ural region is being successfully carried out by the Bureau of the Metal Department, through the organization of district and circuit officers.

Outside of the combine only those mills remained where production is merely organized: the Moscow works “Metal,” “Electrosteel,” “Scythe,” “Aviation Outfits,” and the Satatov mill—“Star” (Zwezda). These works are temporarily in the immediate charge of the Metal Department.

The Gomza trust during the entire period of its existence, up to July 1st, 1919, has produced 69 new locomotives and repaired 38 old ones; it has produced 1,744 new and repaired 1,040 old coaches; it has completed 670 small cars; 261,327 poods of axles and tires; 7,543 poods of switches; and 118,659 poods of various locomotive and car parts. The table given below representing the output for the first six months of 1919, as compared with the same period for 1916 and 1918, of the Vyxunsk Mining District, gives an idea of the work of the Department of Metallurgy of our largest trust:

It is apparent from the data given in the above table that the total output for the first six months of 1919 was almost 41 per cent of the total output for the corresponding period of 1916, and 64.5 per cent of the total product for the first half year of 1918, and 124.2 per cent of the last six months of 1918. The figures expressing the ratio of the total output of metal for the same periods are respectively—91.4 per cent, 120.6 per cent and 153.2 per cent.

Taking into consideration the extremely difficult conditions of production, the results may be considered satisfactory.

If we turn to the production of another of our trusts—“Central Copper Works” (Centromed), we note that during the period of October to December, 1916, the main Tula factory has produced 73.4 per cent of its capacity, during January to June of 1919—89.9 per cent, and finally during July and August of this year (1919)—about 87 per cent. The Kolchugin works have produced the various articles of their manufacture during the same periods in quantities which amounted to from 16 to 48 per cent, 30 per cent to 77 per cent and 20 per cent to 36 per cent of the quantities it was scheduled to produce, while the samovar factories have produced 44 per cent of the scheduled output.

The mills entering the association of the Central Aviation Works have produced 36 per cent to 180 per cent of the quantity they planned to turn out, while during July, August and September of 1918 this percentage ranged in the various mills and branches of production from 26 per cent to 120 per cent.

A comparatively considerable increase of production has been noted on the works combined in the automobile trust

It would be absolutely impossible, within the limits of a newspaper article, to amplify the illustration of the above statements by means of statistical data, especially in view of the fact that the data pertaining to the latest period has not been arranged systematically. However, the figures cited above, we trust, give some idea of the process and results of the concentration of industry and permit the deduction that the productivity of labor in our large works, insofar as it did not completely depend upon conditions which under the present circumstances are insuperable,—has increased as compared with that for the preceding year, and in some exceptional cases, it has even arisen to the pre-war level.

Nevertheless, our large industry has been getting into even greater difficulties. A number of crises weighing on it are breaking down its last forces. Of these the most acute and serious are the fuel and food crises, the latter demoralizing labor. This enforced comparative idleness has been thoroughly utilized during the revolutionary period, for the purpose of preparing for the time when the external conditions would permit our large industries to run at full speed.

In addition to the work of adapting our industry to modern conditions of production (altering the mills to suit them to the usage of wood fuel, by changing the construction of the furnaces and cupolas) the Technical Council of the Metals Department of the Supreme Council of National Economy is conducting the enormous work of standardizing the industry and specializing the mills by means of a detailed study of the individual branches of industry. It is also engaged in the restoration of the old, and in the organization of new, industries on the basis of specialized labor and production on a large scale. This latter task has been carried out by a number of commissions organized by the Metal Department of the Supreme Council of National Economy.

The Technical Council of the Metals Department conducted its work chiefly on the plane of standardizing production within the metal industry, reducing to a minimum the types of construction of the same article. Under capitalist conditions of production the law of competition frequently led individual manufacturers to deliberately flood the market with a multitude of various constructions of the same machines in order to compel the consumer purchasing a machine or implement at a given mill, to buy all the parts and often have his machine repaired in the same shop. It is needless to point out to what extent this increased the cost of production and, what is still more important, the cost of exploitation. The Technical Council has tackled the question not from an abstractly scientific viewpoint, but from a practical standpoint, working in close cooperation with our metal works. Every master part, every detail is being worked out on the basis of data collected at the mills by subcommittees consisting of specialists. Then the project is submitted to the mills where the necessary changes and coordination are suggested. The comments given by the mills are compiled and revised, before this or the other table or drawing is introduced; the same applies to the technical specifications and assortments.

Master parts of three categories are being worked out: (1) for the production of metal ware on a large scale, (2) for general machine construction, (3) for the construction of Diesel engines, which is now developing into a general division of thermo-technics.

In addition to this, a project is being completed for a lathe designed for the needs of home industries, and for repair work. A project is being worked out for a series of lathes of all sizes, required for machine construction shops.

Besides work on the standardization of industry, efforts are also being made to lay down the technical conditions.

Of the above mentioned committees, the following deserve special mention:

(1) The committee on steam turbine construction is distributing orders for the construction of turbines of various types. The Petrograd metal works and the Putiloff wharf have already completed part of their orders. In addition to this, the committee has investigated the construction of steam turbines in Russia.

(2) The committee on tractor construction has redistributed and again alloted orders among the Obukhov factory, the Mamin mill and the Kolomenksky mill for 75, 16 and 30 horse-power tractors. The drawings for the latter type of tractor have been worked out by the committee. Out of the number of tractors ordered at the Obukhov works, the first three Russian-made tractors are already completed. The others will be turned out in January and in June of 1920. It is proposed to organize the production of tractors on a large scale at the new Vyxunsk mill, the building of which is being completed.

(3) The committee on the construction of gas generating installations which has determined the basic type of gas generating engine most suitable for the conditions of Russian machine construction, has standardized the normal power of the engines; it has also outlined the preliminary measures for the adaptation of certain mills to large scale production of gas-generating engines.

(4) The committee for the development and improvement of steam boiler construction in Russia, has prepared the material and worked out detailed conditions for a contest of stationary water-tube boilers, the cheapest as to cost of production and the most economical in operation to be adopted by the committee. The committee also prepares the conditions for a contest on the production of a mechanical stoker, having investigated possible productivity and modern methods of production of steam boilers in Russia.

(5) The committee on the construction of refrigerating machinery ascertained the requirements for 1919–1920 in the line of refrigerating machinery; it is laying down and determining the types of refrigerating machines and apparatus that would be most desirable; it is working out the construction of the same, etc. Finally, it has drawn up plans for the construction of refrigerator-barges to sail regularly on the Volga between Astrakhan and Rybinsk.

In addition to the above-mentioned commissions, the Metal Department has a number of committees now functioning, such as the committee in charge of supplying the country with high grades of steel, having a technical convention of its own the committee on the organization of the Ural industries, the committee on locomotive construction, etc.

As we have mentioned before, simultaneously with rendering support to large industries and taking steps for their conversion to normal conditions, particularly careful attention had to be given to the intermediate, small and home industries.

Intermediate industry comprises almost all of the agricultural machine construction, under the direction of the agricultural machinery section of the Metal Department of the Supreme Council of National Economy. This section operates in close contact with the local governing bodies in charge of the people’s industries: provincial, councils of national economy. According to the data of the section, covering the period of October 1st, 1918 to October 1st, 1919, the following simple as well as complicated agricultural machines and implements have been produced:

147,453 ploughs
3,717 winnowing machines
1,440 straw cutters
11,451 harrows
98,689 scythes
684,420 sickles
11,980 harvesting machines

For the purpose of organizing the production of scythes in the most efficient manner possible the agricultural machine section created a special Scythes Bureau, which is investigating this line of production, ascertaining the possible amount of productivity if manufactured in the machine shop manner or according to the home industry method, both in the central provinces and in the Ural region. The bureau has laid down a plan for radical change in the nature of production by means of splitting it into two fundamental processes: the metallurgical—the rolling of steel of worked out profile; and the finishing process in the mills and shops. For the purpose of rolling the metal it has been proposed to utilize the Vyxunsk mill, which has been requested to include in its program the rolling of steel for the production of scythes.

In the field of home industry production on a small scale the committee on metal products and apparatus of the Metal Department is working in close cooperation with other government institutions, having organized agencies in Pavlovsk, Tula, Murom, and Vladimir, for the purpose of financing artisans and distributing raw material among them on the one condition that they turn in their product to the government stores for organized distribution. The results of this work can be judged by the following approximate data on the cost of manufactured products, the stock on hand from previous year returned to the factories and enterprises of the Murom, Pavlovsk, Tula region, as well as to the group of cast iron foundries of the provinces of Kaluga and Ryazan.

The Murom district, manufacturing cutlery and to some extent also instruments, has turned out, during the period following the organization of the government agency, 15 million roubles’ worth of goods, while the total worth of it, including remnants returned, amounts to 25 million roubles; the Pavlovsk district engaged in the manufacture of cutlery, locks and instruments,—among others, surgical instruments—has produced since October 1st, 1918, 70 million roubles’ worth of merchandise; including the remnants, this would aggregate to 100 million roubles. The Tula district (hardware, locks, stove accessories, samovars, hunters’ rifles), has produced since May 1919, 30 million roubles’ worth of goods, which, including the remnants, amount to 60 million roubles. The cast-iron foundries of the Kaluga and Ryazan districts (manufacturing cast-iron utensils, stove accessories and various other castings) have produced since October 1st, 1918, 50 million roubles’ worth of merchandise, including the remnants.

Thus, the total amount of goods produced amounts to 165 million roubles,—or to 235 million roubles, if the value of the remnants is added,—taking 40 as the co-efficient of its value according to peace-time prices.

The central administration could not take upon itself the direct organization of home industries to the full extent. Its best assistants in this matter are the local institutions of national economy—the provincial and district metal committees, which have been brought in close contact with the central administration by the conventions of the representatives of the district and provincial metal committees. These conventions were being called at regular intervals for the purpose of working out and ratifying their programs concerning production and distribution of metals, and financial questions.

We must also mention the fact that all the measures in the domain of the metal industry are being carried out with the close and immediate cooperation of the workers’ producing association—the union of metal workers.

Thus, as has been proven from practical experience, the methods and forms of organization of the metal industry have turned out to be correct. Their application is therefore to be continued and widened, strengthening the ties binding these organizations with the local administrative bodies, such as the provincial and district metal committees and with the central management of the amalgamated enterprises.

The great obstacle in the path of future development in our metal industry is the food question, which carries with it the dissolution of labor power. Considering the fact that circumstances have compelled our industry in general, and particularly the metal industry, to supply chiefly the needs of national defence, to which it is necessary to give right of way over all other interests, the authorities and the labor organizations must do everything in their power to avert the food crisis threatening the metal workers, even if this be to the detriment of the population.

It is necessary not only to cease all further mobilization of laborers and responsible workers, but also to select a considerable portion of those already mobilized for the purpose of transferring them from the army into industry.

The course of work of the metal industry during the past two years gives us reason to hope that these measures, if introduced systematically, might make it possible to cope with the difficult external conditions and furnish a mighty stimulus for preparing the metal industry for the needs of peaceful construction.

M. VINDELBOT.

THE DEVELOPMENT OF THE RURAL INDUSTRIES
B—FROM “ECONOMIC LIFE,” Nov. 7, 1919.

The Supreme Council of National Economy has put into practice the idea of nationalization of all our industries: at present there is not one mill or factory of any considerable size that is not the property of the people.

During the second year of its existence, the Supreme Council of National Economy has made some headway in the work of nationalization of land. As a particular instance we might cite the fact that it was upon the initiative and due to the energetic efforts of the Supreme Council of National Economy that the land fund for the sugar industry has been nationalized. The total area of land nationalized for the sugar industry amounts to 600,000 dessiatins.

The sugar-beet industry has furnished the initial step in the development of the rural industries, since this particular industry has been better preserved during the transitional period of the Revolution. The alcohol industry occupies the next place. Its development has been begun by the Supreme Council of National Economy during the last few days.

These two large branches of rural industry are followed by a number of lesser significance, such as the production of starch, molasses, butter, milk, tobacco, medicinal herbs, the group of fibre plants, etc. The Supreme Council of National Economy is now laying a solid foundation for the development of all these industries.

What then is the program of action of the Supreme Council of National Economy for the development of the rural industries? In the first place, to supply definite land areas for the cultivation of certain plants, the introduction of definite forms of agricultural labor, and of uniform management for the manufacturing and agricultural industries, the establishment of close connections between the industrial proletariat and the citizens engaged in the rural industries.

Among the problems enumerated above, foremost is that of uniting the industrial proletariat with the rural workers. The Supreme Council of National Economy has already begun to work on this task. Thus the industrial proletariat is now officially in possession of 90,000 dessiatins of land, on which communes have been organized. The crops from these estates go to satisfy the needs of the associations in whose name the estates are registered. At the same time, the industrial proletariat, through participation in agricultural labor, is introducing new ideas into the rural industries.

The Supreme Council of National Economy is mining the coal from the depths of the earth and exploiting the peat deposits. In order to utilize the resources completely, it is paying particular attention to the conversion of swampy areas and exhausted turf deposits into areable land, transforming the bottom of the exploited turf areas into vegetable gardens, the sections bordering upon the swamps into artificial meadows, and the uplands into fields. During last summer similar work was accomplished on a considerable scale on the lands of the central electric station, in the Government of Moscow, the Ilatur electric station, in the Government of Ryazan, Gus-Hrustalny, in the Government of Vladimir, and the Gomza estates in the Government of Nizhni-Novgorod. Thus, during last summer, the work was organized in four central provinces, abounding in large areas of land, which cannot be conveniently used for agricultural purposes.

Simultaneously the improvement of dwellings, and the building of garden-cities is being given careful and immediate consideration. This work is being carried on by the Supreme Council of National Economy at the electric station of Kashirsk, the Shatur station and the Central Electric station.

In order to unify rural industries the Supreme Council of National Economy has formed the central administration of agricultural estates and industrial enterprises, assigning to it the task of uniting and developing as far as possible, the work of the rural mills.

The Central Administration of Agriculture considers it one of its immediate problems to propagate widely the idea of nationalization of land for all rural industries and the opening of new districts for those industries.

In apportioning the land, especially valuable districts should be set apart, such as the meadows, flooded with water from the Don river, fully suitable for the cultivation of tobacco, fibre plants, and olives, on a large scale.

These lands, if distributed among the peasants will never yield such wealth as they could do were they nationalized for rational exploitation.

Next on the program of the Central Administration of Agriculture is the building up of new branches of rural industry, such as the working of sugar beets into molasses and into beet flour, in the northern districts, the production of ammonium sulphate out of the lower grades of peat, the preparation of fodder out of animal refuse, the production of turf litter material, the preparation of new sources of nitrate fertilizer out of peat, etc.

Electric power must be utilized for the cultivation of land. The practical realization of this problem has been started on the fields of the electric power transmission department. This Fall we succeeded in tilling the ground by means of a power-driven plow.

In order to build up the rural industries, practical work must be carried on, simultaneously with that which is being done on the particularly important lands, also on such lands as will not be the bone of contention between the proletariat and the peasantry.

What lands are these? The swampy areas, the forest-covered lands, those districts where the people are starving, the dry lands, the scarcely populated districts, etc.

These are the brief outlines of the program. The foundations of absolutely all of the development of rural industry mentioned have been laid down. The practical steps for the materialization of the plans have to some extent already been, or are being, undertaken.

All of this work the Supreme Council of National Economy had to carry out under extremely difficult conditions. Prior to that, a considerable part of the sources of raw material for the rural industries has been completely torn away from the Soviet Republic. Another serious hindrance was the insufficient number of already existing organizations, which would be capable of fulfilling the tasks outlined by the Council. A considerable amount of harm has been done to this work by interdepartmental friction.

But difficult as the present conditions may be, and no matter how strong is the desire of the former ruling classes to turn back the tide of life, this is impossible and can never take place.

CENTRAL ADMINISTRATION OF AGRICULTURE.

NATIONALIZATION OF AGRICULTURE
C—FROM “ECONOMIC LIFE,” Nov. 7, 1919.

The nationalization of agriculture is one of the most complicated problems of the Socialist Revolution, and perhaps in no other country is this problem as complex as in Soviet Russia.

At the time when the decree on Socialist land management was made public, the fundamental elements of nationalization had hardly begun to take shape: the territory affected by nationalization was by no means defined; there was not the personnel necessary for the creation and enforcement of any plan concerning production; the large masses of laborers hardly understood the idea of nationalization and in some instances were hostile to the measures by means of which the Soviet power was carrying out the program of nationalization.

In order to summarize the results of the work, which began on a nation-wide scale in March, 1919, and to estimate these results, one must first realize the conditions which formed the starting-point for the work of the People’s Commissariat of Agriculture at the time when it commenced to carry out the nationalization of agriculture.

The extent of the capitalist heritage, which our organized Soviet estates now have at their disposal, amounts to 615,503 dessiatins or areable land, situated in the Soviet provinces and formerly in the hands of private owners. Eighty-five per cent of the areable land, which formerly belonged to the landed aristocracy was taken over for the purpose of both organized and non-organized distribution—chiefly the latter.

The equipment of the various estates was diminished and destroyed to no lesser extent. Instead of the 386,672 privately owned horses, registered in the Soviet provinces, according to the census of 1916, the Soviet estates in the hands of the People’s Commissariat of Agriculture received 23,149 horses—a number hardly sufficient for the cultivation of one-third of the area under cultivation now belonging to the Soviet estates. Of the 290,969 cows—only 43,361 came into the possession of the Soviet estates. The entire number of horses and cows will yield sufficient fertilizer for only 13,000 dessiatins of fallow land, i.e., about 10 per cent of the area intended to be converted into areable land.

The supply of agricultural machinery and implements was in the same condition.

The Soviet estates had almost no stocks of provisions. The workmen were compelled either to steal or to desert for places where bread was more abundant.

The winter corn was sowed in the fall of 1918 on very limited areas (not over 25 per cent of the fallow land), very often without fertilizer, with a very small quantity of seeds to each dessiatin. In 13 out of 36 Soviet provinces (governments) no winter corn has been sowed at all.

A considerable portion of the estates taken over by the People’s Commissariat of Agriculture could not be utilized due to the lack of various accessories, such as harness, horseshoes, rope, small instruments, etc.

The workers were fluctuating, entirely unorganized, politically inert—due to the shortage of provisioning and of organization. The technical forces could not get used to the village; besides, we did not have sufficient numbers of agricultural experts familiar with the practical organization of large estates. The regulations governing the social management of land charged the representatives of the industrial proletariat with a leading part in the work of the Soviet estates. But torn between meeting the various requirements of the Republic of prime importance, the proletariat could not with sufficient speed furnish the number of organizers necessary for agricultural management.

The idea of centralized management on the Soviet estates has not been properly understood by the local authorities, and the work of organization from the very beginning had to progress amidst bitter fighting between the provincial Soviet estates and the provincial offices of the Department of Agriculture. This struggle has not yet ceased.

Thus, the work of nationalizing the country’s agriculture began in the spring, i.e., a half year later than it should have, and without any definite territory (every inch of it had to be taken after a long and strenuous siege on the part of the surrounding population), with insufficient and semi-ruined equipment, without provisions, without an apparatus for organization and without the necessary experience for such work, with the agricultural workers engaged in the Soviet estates having no organization at all.

According to our preliminary calculations, we are to gather in the Fall of this year a crop of produce totaling in the 2,524 Soviet estates as follows:

Poods Area in Dessiatins
Winter crop 1,798,711 54,000
Spring corn 4,765,790 97,720
Potatoes 16,754,900 23,754
Vegetables, approximately 4,500,000 4,659

Of the Winter corn we received only a little over what was required for seed (in a number of provinces the crops are insufficient for the consumption of the workers of the Soviet estates).

The Soviet estates are almost everywhere sufficiently supplied with seeds for the spring crops.

The number of horses used on the Soviet estates has been increased through the additional purchase of 12,000 to 15,000.

The number of cattle has also been somewhat increased.

The Soviet estates are almost completely supplied with agricultural implements and accessories, both by having procured new outfits from the People’s Commissariat for Provisioning and by means of energetic repair work on the old ones.

The foundation has been laid (in one-half of the provinces sufficiently stable foundations) for the formation of an organizational machinery for the administration of the Soviet estates.

Within the limits of the Soviet estates the labor union of the agricultural proletariat has developed into a large organization.

In a number of provinces the leading part in the work of the Soviet estates has been practically assumed by the industrial proletariat, which has furnished a number of organizers, whose reputation had been sufficiently established.

Estimating the results of the work accomplished, we must admit that we have not as yet any fully nationalized rural economy. But during the eight months of work in this direction, all the elements for its organization have been accumulated.

We have strengthened our position in regard to supplies, having been enabled not only to equip more efficiently the Soviet estates (2,524) already included in our system of organization, but also to nationalize during the season of 1920 additional 1,012 Soviet estates, with an area of 972,674 dessiatins. The combined area of the nationalized enterprises will probably amount in 1920 to about 2,000,000 dessiatins within the present Soviet territory.

A preliminary familiarity with individual estates and with agricultural regions makes it possible to begin the preparation of a national plan for production on the Soviet estates and for a systematic attempt to meet the manifold demands made on the nationalized estates by the agricultural industries: sugar, distilling, chemical, as well as by the country’s need for stock breeding, seeds, planting and other raw materials.

The greatest difficulties arise in the creation of the machinery of organization. The shortage of agricultural experts is being replenished with great difficulty, for the position of the technical personnel of the Soviet estates, due to their weak political organization, is extremely unstable. The mobilization of the proletarian forces for work in the Soviet estates gives us ground to believe that in this respect the spring of 1920 will find us sufficiently prepared.

The ranks of proletarian workers in the Soviet estates are drawing together. True, the level of their enlightenment is by no means high, but “in union there is strength” and this force, if properly utilized, will yield rapidly positive results.

In order to complete the picture of the agricultural work for the past year we are citing the following figures: the total expenditures incurred on the Soviet estates and on account of their administration up to January 1st, 1920, is estimated to amount to 924,347,500 roubles. The income, if the products of the Soviet estates are considered at firm prices, amounts to 843,372,343 roubles.

Thus, the first, the most difficult year, has ended without a deficit, if one excludes a part of the liabilities which are to be met during a number of years, i.e., horses and implements.

Of course, it is not the particular experience which the workers possess that has caused the favorable balance of the Soviet estates, this being mainly due to the fact that the productive work in the realm of agriculture under modern conditions is a business not liable to lose.

And this is natural: industry in all its forms depends upon the supply of fuel, raw material, and food. Nationalized rural economy has an inexhaustible supply of solar energy—a fuel supply independent of transportation of the blockade.

The fundamental element of production—land—does not demand any “colonial” means of restoration of its productivity. And as for provisions, these we get from the earth under the sun!

After eight months of work on the nationalization of our rural economy, as a result of two years of titanic struggle on the part of the proletariat for the right to organize the Socialist industries with its own hands,—is it not high time to admit that the most expedient, most far-sighted, and correct method to stabilize the Soviet power would be to use the greatest number of organized proletarian forces for the work of nationalizing our agriculture?

N. BOGDANOV.

Transcriber’s Note

The page reference in the list of Illustrations to p. 54 (LENIN AT HIS DESK IN KREMLIN, 1919) is incorrect. The photograph appears facing p. 50. The entry has been corrected.

On p. 149, a train station town is variously spelled ‘Kreisberg’ and ‘Kreizberg’. Both are retained.

In the Appendix, the organizational names of various Unions are variously called ‘Trades’ or ‘Trade’. No attempt was made to make them consistent.

On p. 257, the quoted passage beginning "The consolidation of the mills..." has no closing quote, and it is unclear where it might have been intended.

The following table provides information on the relatively few typographical errors, and their resolution.

p. 25 Rej[z]istza Removed.
p. 46 sold[i]ers Added.
p. 98 [o/O]ne priceless painting Corrected.
p. 192 I[t/f] at the First Corrected.
p. 207 [(]five groups and 15 categories) Added.
p. 222 follow[low]ing Line break repetition.
p. 227 con[s]truction Added.
p. 228 Vo[ac/ca]tional Transposed.
p. 232 Commit[mit]tees Line break repetition.
p. 256 econo[o]mic Line break repetition.
p. 274 territor[it]y Removed.





                                                                                                                                                                                                                                                                                                           

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