But not only did the dead elements of production—buildings, machines, rails, fuel, and raw material—suffer terrible losses under the combined blows of the war and the revolution. Not less, if not more, did the chief factor of industry, its living creative force—the proletariat—suffer. The proletariat was consolidating the November revolution, building and defending the apparatus of Soviet power, and carrying on a ceaseless struggle with the White Guards. The skilled workers are, as a rule, at the same time the most advanced. The civil war tore away many tens of thousands of the best workers for a long time from productive labor, swallowing up many thousands of them for ever. The Socialist revolution placed the chief burden of its sacrifices upon the proletarian vanguard, and consequently on industry.

All the attention of the Soviet State has been directed, for the two and a half years of its existence, to the problem of military defence. The best forces and its principal resources were given to the front.

In any case, the class struggle inflicts blows upon industry. That accusation, long before Kautsky, was levelled at it by all the philosophers of the social harmony. During simple economic strikes the workers consume, and do not produce. Still more powerful, therefore, are the blows inflicted upon economic life by the class struggle in its severest form—in the form of armed conflicts. But it is quite clear that the civil war cannot be classified under the heading of Socialist economic methods.

The reasons enumerated above are more than sufficient to explain the difficult economic situation of Soviet Russia. There is no fuel, there is no metal, there is no cotton, transport is destroyed, technical equipment is in disorder, living labor-power is scattered over the face of the country, and a high percentage of it has been lost to the front—is there any need to seek supplementary reasons in the economic Utopianism of the Bolsheviks in order to explain the fall of our industry? On the contrary, each of the reasons quoted alone is sufficient to evoke the question: how is it possible at all that, under such conditions, factories and workshops should continue to function?

And yet they do continue principally in the shape of war industry, which is at present living at the expense of the rest. The Soviet Government was obliged to re-create it, just like the army, out of fragments. War industry, set up again under these conditions of unprecedented difficulty, has fulfilled and is fulfilling its duty: the Red Army is clothed, shod, equipped with its rifle, its machine gun, its cannon, its bullet, its shell, its aeroplane, and all else that it requires.

As soon as the dawn of peace made its appearance—after the destruction of Kolchak, Yudenich, and Denikin—we placed before ourselves the problem of economic organization in the fullest possible way. And already, in the course of three or four months of intensive work in this sphere, it has become clear beyond all possibility of doubt that, thanks to its most intimate connection with the popular masses, the elasticity of its apparatus, and its own revolutionary initiative, the Soviet Government disposes of such resources and methods for economic reconstruction as no other government ever had or has to-day.

True, before us there arose quite new questions and new difficulties in the sphere of the organization of labor. Socialist theory had no answers to these questions, and could not have them. We had to find the solution in practice, and test it in practice. Kautskianism is a whole epoch behind the gigantic economic problems being solved at present by the Soviet Government. In the form of Menshevism, it constantly throws obstacles in our way, opposing the practical measures of our economic reconstruction by bourgeois prejudices and bureaucratic-intellectual scepticism.

To introduce the reader to the very essence of the questions of the organization of labor, as they stand at present before us, we quote below the report of the author of this book at the Third All-Russian Congress of Trade Unions. With the object of the fullest possible elucidation of the question, the text of the speech is supplemented by considerable extracts from the author's reports at the All-Russian Congress of Economic Councils and at the Ninth Congress of the Communist Party.

REPORT ON THE ORGANIZATION OF LABOR

Comrades, the internal civil war is coming to an end. On the western front, the situation remains undecided. It is possible that the Polish bourgeoisie will hurl a challenge at its fate…. But even in this case—we do not seek it—the war will not demand of us that all-devouring concentration of forces which the simultaneous struggle on four fronts imposed upon us. The frightful pressure of the war is becoming weaker. Economic requirements and problems are more and more coming to the fore. History is bringing us, along the whole line, to our fundamental problem—the organization of labor on new social foundations. The organization of labor is in its essence the organization of the new society: every historical form of society is in its foundation a form of organization of labor. While every previous form of society was an organization of labor in the interests of a minority, which organized its State apparatus for the oppression of the overwhelming majority of the workers, we are making the first attempt in world history to organize labor in the interests of the laboring majority itself. This, however, does not exclude the element of compulsion in all its forms, both the most gentle and the extremely severe. The element of State compulsion not only does not disappear from the historical arena, but on the contrary will still play, for a considerable period, an extremely prominent part.