Russia in 1919

The Supreme Council of Public Economy

February 20th

To-day was an unlucky day. I felt tired, ill and hungry, and had arranged to talk with both Rykov, the President of the Supreme Council of People’s Economy, and Krestinsky, the Commissar of Finance, at such awkward times that I got no tea and could get nothing to eat until after four o’clock. Two such talks on an empty stomach (for the day before I had had only a plate of soup and a little scrap of fish) were a little too much for me, and I fear I did not gather as much information as I should have collected under better conditions.

I had a jolly drive, early in the morning, through the Chinese Town, and out by the gate in the old wall, up Myasnitzkaya Street, and round to the right to a building that used to be the Grand Hotel of Siberia, a loathsome place where I once stayed. Here in the old days provincial merchants put up, who did not mind high prices and a superfluity of bugs. It has now been turned into a hive of office work, and is the headquarters of the Supreme Council of Public Economy, which, controlling production and distribution alike, is the centre of the constructive work going on throughout the country.

This Council, the theorists tell me, is intended to become the central organization of the state. The Soviets will naturally become less and less important as instruments of political transition as that transition is completed and the struggle against reaction within and without comes to an end. Then the chief business of the state will no longer be to protect itself against enemies but to develop its economic life, to increase its productivity and to improve the material conditions of the workers of whom it is composed. All these tasks are those of the Supreme Council of Public Economy, and as the bitterness of the struggle dies away this body, which came into being almost unnoticed in the din of battle, will become more and more important in comparison with the Soviets, which were in origin not constructive organizations but the instruments of a revolution, the hardest stages of which have already been accomplished.

It is perhaps worth while to set out here the constitution of this Council. It is considered at present as the economic department of the All-Russian Central Executive Committee, to which, and to the Council of People’s Commissaries, it is responsible. It regulates all production and distribution. It reports on the various estimates of the state budget and, in conjunction with the Commissariats of Finance and State Control, carries out the financing of all branches of public economy. It consists of 69 members, and is composed as follows:—Ten representatives from the All-Russian Executive Committee, thirty from the All-Russian Industrial Productive Union (a union of Trade Unions), twenty from the ten District Councils of Public Economy, two from the All-Russian Council of Workers’ Cooperative Societies, and one representative each from the Commissariats of Supply, Ways of Communication, Labour, Agriculture, Finance, Trade and Industry, and Internal Affairs. It meets as a whole at least once in every month. The work of its members is directed by a Presidium of nine members, of which it elects eight, the President being elected by the All-Russian Central Executive Committee, and enjoying the rank of a People’s Commissar or Minister.

I had a long talk with Rykov, the President, or rather listened to a long lecture by him, only now and then succeeding in stopping him by forcing a question into the thread of his harangue. He stammers a little, and talks so indistinctly that for the first time (No. The first time was when Chicherin gabbled through the provisions of the Brest Treaty at the fourth All-Russian Assembly.) I felt willing to forgive normal Russians, who nearly always talk as if they were in Petrograd and their listener in Vladivostok.

Part of what he said is embodied in what I have already written. But besides sketching the general aims of the Council, Rykov talked of the present economic position of Russia. At the moment Russian industry was in peculiar difficulties owing to the fuel crisis. This was partly due to the fact that the Czechs and the Reactionaries, who had used the Czechs to screen their own organization, had control of the coalfields in the Urals, and partly to the fact that the German occupation of the Ukraine and the activities of Krasnov had cut off Soviet Russia from the Donetz coal basin, which had been a main source of supply, although in the old days Petrograd had also got coal from England. It was now, however, clear that, with a friendly Ukraine, they would have the use of the Donetz basin much sooner than they had expected.

The Brest peace and the deprivations it involved had made them consider the position of the industrial districts from a new standpoint, and they were determined to make Petrograd and Moscow as far as possible independent of all fuel which had to be brought from a distance. He referred to the works in progress for utilizing water power to provide electrical energy for the Petrograd factories, and said that similar electrification, on a basis of turf fuel, is planned for Moscow.

I asked how they were going to get the machines. He said that of course they would prefer to buy them abroad, but that, though this was impossible, the work would not be delayed on that account, since they could make a start with the machines they had. Turbines for the Petrograd works they still hoped to obtain from abroad when peace had been arranged. If the worst came to the worst he thought they could make their own. “That is one unexpected result of Russia’s long isolation. Her dependence on imports from abroad is lessening.” He gave an example in salt, the urgent need of which has led to the opening of a new industry, whose resources are such as to enable Russia not only to supply herself with salt, but the rest of the world as well if need should be.

I asked what were their immediate plans with regard to the electrification of Moscow. He said that there was no water power near Moscow but big turf deposits which would be used as fuel. In order not to interfere with the actual lighting of the town from the power-station already in existence, they are taking the electric plant from the Provodnik works, which will supply enough electricity for the lighting of the town. As soon as that is set up and working, they will use it for the immediate needs of Moscow, and set about transferring the existing power-station to the new situation near the turf beds. In this way they hope to carry out the change from coal to turf without interfering with the ordinary life of the town. Eventually when things settle down they will get a larger plant.

I said, “Of course you have a double object in this, not only to lessen the dependence of the industrial districts on fuel that has to be brought from a distance, and of which you may be deprived, but also to lessen the strain on transport!”

“Yes,” he said. “Indeed at the present moment the latter is our greatest difficulty, hampering everything we would wish to do. And transport we cannot put right without help from abroad. Therefore we do everything we can to use local resources, and are even developing the coal deposits near Moscow, which are of inferior quality to the Donetz coal, and were in the old days purposely smothered by the Donetz coal-owners, who wished to preserve their monopoly.”

I asked him if in his opinion Russia could organize herself without help from abroad. He said, “I rather think she will have to. We want steam dredgers, steam excavators, and locomotives most of all, but we have small hope of getting them in the immediate future, because the effects of the war have been so serious in the disorganization of industry in the western countries that it is doubtful whether they will be in a position to supply even their own needs.”

While we were talking Berg, the secretary, came in. I asked him how his Soviet matches were progressing, and he said that the labels were being printed and that the first lot would soon be ready. They will be distributed on the card system, and he had calculated that they could sell them at twelve kopecks a packet. I paid a rouble for a box of ordinary matches at Bieloostrov, and a rouble and a half here.

The Race With Ruin

After leaving Rykov I went to see Krestinsky, the Commissar of Finance, the curious little optimist whose report on the Extraordinary Tax I had heard at the last meeting of the Executive Committee. I found him in the Ilyinka street, in the Chinese town. I began by telling him that I did not believe that they meant to pay the loans. He laughed and gave me precisely the answer I had expected:— “Of course we hope there will be a revolution in other countries, in which case they will repudiate their debts and forgive us ours. But if that does not happen we know very well that we shall have to pay, and we are prepared to pay, and shall be able to pay, in concessions, in raw material which they need more than they need gold.”

Then, being myself neither an economist nor a theoretical socialist, I put before him what had been said to me in Stockholm by an Englishman who was both one and the other; namely, that, being isolated from European finance, the Soviet Government of Russia was bound to come to an end on economic and financial grounds alone.

He said: “That would certainly be so, if rising prices, rising wages, were to mean indefinitely increased demands on the printing machines for paper money. But, while we are at present forced to print more and more money, another process is at work which, in the long run, will bring this state of things to an end. Just as in our dealings with other countries we exchange goods instead of paying in money, so within our own frontiers money is ceasing to be the sole medium of exchange. Gradually the workmen are coming to receive more and more in other forms than money. Houses, for example, lighting and heating are only a beginning. These things being state monopolies, the task of supplying the workman’s needs without the use of money is comparatively easy. The chief difficulty is, of course, food supplies, which depend on our ability to keep up an exchange of goods with the villages. If we can supply the villages with manufactured goods, they will supply us with food. You can fairly say that our ruin or salvation depends on a race between the decreasing value of money (with the consequent need for printing notes in ever greater quantities) and our growing ability to do without money altogether. That is of course, a broad view, and you must not for a moment suppose that we expect to do without money in the immediate future. I am merely showing you the two opposing tendencies on which our economic fate depends.”

I will not set down here what he said about the Extraordinary Tax, for it was merely a repetition of what I had heard him say in committee. In connection with it, however, he admitted that capitalism and profiteering were hard things to root out, saying that they had great difficulty in getting at what he called “the new bourgeoisie,” namely the speculators who have made fortunes since the revolution by selling scarce food products at fantastic prices. It was difficult to tax them because they carried on their operations secretly and it was next to impossible to find out who they were. They did not bank their money, and though an attempt had been made to get at them through the house committees, it was found that even these committees were unable to detect them. They will, however, be made to disgorge their ill-gotten gains when the measure first proposed by Sokolnikov last summer is put into practice. This is a general exchange of new money for old, after which the old will be declared invalid. “Of course,” said Krestinsky, “they will cheat in every possible way, scattering out the money among a number of friends and relations. But something will have been done in cleaning them up, and that process will be completed by a second exchange of money later on.”

Fifteen milliards of new notes for the first exchange are already printed, but they think that twenty milliards will be necessary.

I asked if the new money was better looking than the old, if it looked more like money that was worth having than the wretched little notes printed by the Provisional Government and scornfully called “Kerenkies” by the populace. Krestinsky said he was afraid not, but that the second and final exchange would be made in notes which they expected to be permanent. They did not expect the notes of the first exchange to circulate abroad, but the notes of the second would carry with them state obligation and they expected them to go into general currency. He added, smiling that the words “Proletariat of all lands, unite,” were to appear on the notes in eight languages. The question of the look of the notes, of their ability to inspire confidence by their mere appearance, is of real importance in a country where so many of the peasantry will judge their value by nothing else.

I reminded him of the hostility roused in some villages by mistakes in the assessment and collecting of the Extraordinary Tax, mistakes which (so other Communists had assured me) would cost them more, politically, than the tax was worth to them, and asked him, “Will you not have great difficulty in getting the exchange made, and are you not running the risk of providing the reactionaries with a new profitable basis of agitation?”

He said that of course they would not make the attempt unless they felt sure they were politically strong enough to carry it through. “If it is properly explained to the villages there will be nothing to fear, because the measure will not threaten any but the rich and therefore the small minority of the peasantry. It would be a different matter if the same thing were to be tried by the counter-revolutionaries, because they would not discriminate in favour of the poor. If Kolchak and Company overthrow us and try to substitute their money for ours, their action would affect rich and poor alike, minority and majority together. If there were not a hundred other causes guaranteeing the insecurity of their position, the fact that they will be unable to get rid of our money without rousing the most violent opposition in the masses throughout the country would alone be sufficient to do it.”

I asked whether that was the reason why they intended to print on the notes “Proletariat of all lands, unite,” so that the counter-revolutionaries, unable to tolerate money bearing that hated phrase, should be forced to a step disastrous for themselves.

He laughed, and said that he did not think counter-revolution in the least likely unless brought in by invasion, which he did not think politically possible.

A Play of Chekhov

February 21st

I saw Chekhov’s “Uncle Vanya” acted by the cast of the Art Theatre in the First Studio. This is a little theatre holding just over 200 people. It was of course full. It was curious to see how complete the revolution had been in a social sense. It was impossible to tell to what class in pre-revolutionary days any particular member of the audience had belonged. I was struck by the new smartness of the boy officers of the Red Army, of whom a fair number were present. As we waited for the curtain to rise, I thought how the mental attitude of the people had changed. A year ago, we lived with exhilaration or despair on a volcano which might any day erupt and sweep away the new life before any one had become accustomed to live it. Now the danger to the revolution was a thousand miles away on the various fronts. Here, in the centre, the revolution was an established fact. People had ceased to wonder when it would end, were settling into their places in the new social order, and took their pleasures not as if they were plucking flowers on their way to execution, but in the ordinary routine of life.

The play is well known, a drama of bourgeois society in a small country place. A poor landowner scraping money for an elder brother in the town, realizing at last that the brother was not the genius for whom such sacrifice was worth while; a doctor with a love for forestry and dreams of the future; the old mock-genius’s young wife; his sister; his adoring mother; the old nurse and the ancient dependent adopted, as it were, with the estate; all these people in their own way make each other suffer. Chekhov’s irony places before us wasted lives, hopelessness, exaggerated interest in personalities, vain strugglings after some better outlet for the expression of selves not worth expressing.

That play, acted to-day, seemed as remote as a play of the old regime in France would have seemed five years ago. A gulf seemed to have passed. The play had become a play of historical interest; the life it represented had gone for ever. People in Russia no longer have time for private lives of such a character. Such people no longer exist; some of them have been swept into the flood-tide of revolution and are working as they never hoped to have the chance to work; others, less generous, have been broken and thrown aside. The revolution has been hard on some, and has given new life to others. It has swept away that old life so absolutely that, come what may, it will be a hundred years at least before anywhere in Russia people will be able to be unhappy in that particular way again.

The subject of “Uncle Vanya” was a great deal more remote from the Russian audience of today than was the opera of “Samson and Delilah” which I heard last week. And, if I realized that the revolution had come to stay, if I realized that Chekhov’s play had become a play of historical interest, I realized also that Chekhov was a great master in that his work carried across the gulf between the old life and the new, and affected a revolutionary audience of to-day as strongly as it affected that very different audience of a few years ago. Indeed, the play seemed almost to have gained by the revolution, which had lent it, perhaps, more irony than was in Chekhov’s mind as he wrote. Was this the old life? I thought, as I stepped out into the snow. If so, then thank God it has gone!

The Centro-Textile

February 22nd

This morning I drove to the Dielovoi Dvor, the big house on the Varvarskaya Square which is occupied by the central organization of the textile industry. The head of this organization is Nogin, an extremely capable, energetic Russian, so capable, indeed, that I found it hard to believe he could really be a Russian. He is a big man, with a mass of thick brown shaggy hair, so thick that the little bald patch on the top of his head seems like an artificial tonsure. Nogin sketched the lines on which the Russian textile industry was being reorganized, and gave orders that I should be supplied with all possible printed matter in which to find the details.

The “Centro-Textile” is the actual centre of the economic life of Russia, because, since textiles are the chief materials of exchange between the towns and the villages, on its success depends the success of everything else. The textile industry is, in any case, the most important of all Russian, industries. Before the war it employed 500,000 workmen, and Nogin said that in spite of the disorganization of the war and of the revolution 400,000 are employed to-day. This may be so in the sense that 400,000 are receiving pay, but lack of fuel or of raw material must have brought many factories to a standstill.

All the big factories have been nationalized. Formerly, although in any one town there might be factories carrying out all the different processes, these factories belonged to different owners. A single firm or bank might control factories scattered over Russia and, so that the whole process should be in its hands, the raw material travelled from factory to factory through the country, instead of merely moving about a single town. Thus a roll of material might have gone through one process at Jaroslav, another at Moscow, and a third at Tula, and finally come back to Jaroslav to be finished, simply because the different factories which worked upon it, though widely scattered, happened to be under one control. Nationalization has made possible the rational regrouping of factories so that the complete process is carried out in one place, consequently saving transport. There are twenty-three complete groups of this kind, and in the textile industry generally about fifty groups in all.

There has been a similar concentration of control. In the old days there were hundreds of different competitive firms with their buildings and offices in the Ilyinka, the Varvarka, and the Nikolskaya.* [(*)Streets and a district in Moscow] The Chinese town* [(*) See above.]was a mass of little offices of different textile firms. The whole of that mass of struggling competitive units of direction had now been concentrated in the house in which we were talking. The control of the workers had been carried through in such a way that the technical experts had proper weight. (See p. 171.) There were periodical conferences of elected representatives of all the factories, and Nogin believed that the system of combined elective workmen’s and appointed experts’ representation could hardly be improved upon.

Nationalization had had the effect of standardizing the output. Formerly, an infinite variety of slightly different stuffs were produced, the variations being often merely for the sake of being different in the competitive trade. Useless varieties had now been done away with, with the result of greater economy in production.

I asked what he could tell me about their difficulties in the matter of raw material. He said they no longer get anything from America, and while the railway was cut at Orenburg by the Cossacks, they naturally could get no cotton from Turkestan. In fact, last autumn they had calculated that they had only enough material to keep the factories going until December. Now they found they could certainly keep going to the end of March, and probably longer. Many small factories, wishing to make their cases out worse than they were, had under-estimated their stocks. Here, as in other things, the isolation of the revolution had the effect of teaching the Russians that they were less dependent upon the outside world than they had been in the habit of supposing. He asked me if I knew it had been considered impossible to combine flax and cotton in such a way that the mixture could be worked in machines intended for cotton only. They had an infinite supply of flax, much of which in the old days had been exported. Investigations carried on for the Centro-Textile by two professors, the brothers Chilikin, had ended in the discovery of three different processes for the cottonizing of flax in such a way that they could now mix not only a small percentage of their flax with cotton and use the old machines, but were actually using fifty per cent. flax and had already produced material experimentally with as much as seventy-five per cent.

(Some days later two young technicians from the Centro-Textile brought me a neatly prepared set of specimens illustrating these new processes and asked me to bring them anything of the same sort from England in return. They were not Bolsheviks—were, in fact, typical non-politicals. They were pleased with what the Centro—Textile was doing, and said that more encouragement was given to research than ever formerly. But they were very despondent about the economic position. I could not make them understand why Russia was isolated, and that I might be unable to bring them technical books from England.)

Nogin rather boastfully said that the western linen industry would suffer from the isolation of Russia, whereas in the long run the Russians would be able to do without the rest of the world. With, regard to wool, they would have no difficulty now that they were again united with a friendly Ukraine. The silk industry was to be developed in the Astrakhan district where climatic conditions are particularly favourable.

I asked about the fate of the old textile manufacturers and was told that though many had gone abroad many were working in the nationalized factories. The engineering staff, which mostly struck work at the beginning of the revolution, had almost without exception returned, the younger engineers in particular realizing the new possibilities opening before the industry, the continual need of new improvements, and the immediate welcome given to originality of any kind. Apart from the question of food, which was bad for everybody, the social standard of the workers had risen. Thus one of their immediate difficulties was the provision of proper houses. The capitalists and manufacturers kept the workers in barracks. “Now-a-days the men want better dwellings and we mean to give them better. Some have moved into the old houses of the owners and manufacturers, but of course there are not enough of these to go round, and we have extensive plans in the way of building villages and garden cities for the workmen.”

I asked Nogin what, in his opinion, was most needed by Russia from abroad, and he said that as far as the textile industries were concerned they wanted machinery. Like every one else to whom I put this question, he said that every industry in Russia would be in a better position if only they had more locomotives. “Some of our factories are stopping now for lack of fuel, and at Saratov, for example, we have masses of raw material which we are unable to get to Moscow.”

Modification in the Agrarian Programme

In the afternoon I met Sereda, the Commissar of Agriculture. He insisted that the agrarian policy had been much misrepresented by their enemies for the purposes of agitation. They had no intention of any such idiocy as the attempt to force the peasants to give up private ownership. The establishment of communes was not to be compulsory in any way; it was to be an illustrative means of propaganda of the idea of communal work, not more. The main task before them was to raise the standard of Russian agriculture, which under the old system was extremely low. By working many of the old estates on a communal system with the best possible methods they hoped to do two things at once: to teach the peasant to realize the advantages of communal labour, and to show him that he could himself get a very great deal more out of his land than he does. “In other ways also we are doing everything we can to give direct help to the small agriculturists. We have mobilized all the agricultural experts in the country. We are issuing a mass of simply written pamphlets explaining better methods of farming.”

(I have seen scores of these pamphlets on forestry, potatoes, turf, rotation of crops, and so on, besides the agricultural journals issued by the Commissariat and sent in large quantities to the villages.)

I told Sereda I had heard that the peasants were refusing to sow more than they wanted for their own needs. He said that on the contrary the latest reports gave them the right to hope for a greater sown area this year than ever before, and that even more would have been sown if Denmark had not been prevented from letting them have the seed for which they had actually paid. I put the same question to him that I put to Nogin as to what they most needed; he replied, “Tractors.”

Foreign Trade and Munitions of War

February 25th

I had a talk in the Metropole with Krasin, who is Commissar for Trade and Industry and also President of the Committee for Supplying the Needs of the Army. He had disapproved of the November Revolution, but last year, when things looked like going badly, he came to Russia from Stockholm feeling that he could not do otherwise than help. He is an elderly man, an engineer, and very much of a European. We talked first of the Russian plans with regard to foreign trade. All foreign trade, he said, is now concentrated in the hands of the State, which is therefore able to deal as a single customer. I asked how that would apply to purchase, and whether they expected that countries dealing with them would organize committees through which the whole Russian trade of each such country should similarly pass. Krasin said, “Of course that would be preferable, but only in the case of socialist countries. As things are now it would be very much to our disadvantage. It is better for us to deal with individual capitalists than with a ring. The formation of a committee in England, for example, with a monopoly of trade with Russia, would have the effect of raising prices against us, since we could no longer go from a dear shop to a cheaper one. Besides, as socialists we naturally wish to do nothing to help in the trustification of English manufacturers.”

He recognized that foreign trade on any large scale was impossible until their transport had been improved. Russia proposed to do her paying in raw material, in flax, timber, etc., in materials of which she had great quantities although she could not bring them to the ports until her transport should be restored. It would, therefore, be in the foreigner’s own interests to help them in this matter. He added that they were confident that in the long run they could, without foreign help, so far restore their transport as to save themselves from starvation; but for a speedy return to normal conditions foreign help was essential.

The other question we touched was that of munitions. I expressed some surprise that they should be able to do so well although cut off from the west. Krasin said that as far as that was concerned they had ample munitions for a long fight. Heavy artillery is not much use for the kind of warfare waged in Russia; and as for light artillery, they were making and mending their own. They were not bothering with three-inch shells because they had found that the old regime had left scattered about Russia supplies of three-inch shells sufficient to last them several years. Dynamite also they had in enormous quantities. They were manufacturing gunpowder. The cartridge output had trebled since August when Krasin’s committee was formed. He thought even as things were they could certainly fight for a year.

The Proposed Delegation From Berne

I do not remember the exact date when the proposal of the Berne International Conference to send a Commission of Enquiry to Russia became known in Moscow, but on February 20th everybody who came to see me was talking about it, and from that date the question as to the reception of the delegates was the most urgently debated of all political subjects. Chicherin had replied immediately to Berne, saying that “though they did not consider the Berne Conference either socialist or in any degree representative of the working-class they nevertheless would permit the Commission’s journey into Russia, and would give it every opportunity of becoming acquainted from all sides with the state of affairs, just as they would any bourgeois commission directly or indirectly connected with any of the bourgeois governments, even with those then attacking Russia.”

It may well be imagined that a reply in this style infuriated the Mensheviks who consider themselves more or less affiliated to the parties represented at Berne. What, they shrieked, Kautsky not a socialist? To which their opponents replied, “The Government which Kautsky supports keeps Radek in irons in a gaol.” But to me the most interesting thing to observe was that Chicherin’s reply was scarcely more satisfactory to some of the Communists. It had been sent off before any general consultation, and it appeared that the Communists themselves were widely divided as to the meaning of the proposal. One party believed that it was a first step towards agreement and peace. The other thought it an ingenious ruse by Clemenceau to get “so-called” socialist condemnation of the Bolsheviks as a basis for allied intervention. Both parties were, of course, wrong in so far as they thought the Allied Governments had anything to do with it. Both the French and English delegates were refused passports. This, however, was not known in Moscow until after I left, and by then much had happened. I think the Conference which founded the Third International in Moscow had its origin in a desire to counter any ill effects that might result from the expected visit of the people of Berne.

Litvinov said he considered the sending of the Commission from Berne the most dangerous weapon yet conceived by their opponents. He complained that he had been unable to get either Lenin or Chicherin to realize that this delegation was a preparation for hostilities, not a preparation for peace. “You do not understand that since the beginning of the war there has been a violent struggle between two Internationals, one of which does not believe in revolution while the other does. In this case a group of men already committed to condemn the revolution are coming to pass judgment on it. If they were not to condemn the revolution they would be condemning themselves. Chicherin ought to have put a condition that a delegation of Left Socialists should also come. But he replied within an hour of getting the telegram from Berne. These idiots here think the delegation is coming to seek a ground for peace. It is nothing of the sort. It is bound to condemn us, and the Bourgeois Governments will know how to profit by the criticism, however mild, that is signed by men who still retain authority as socialists. Henderson, for example (Henderson was at first named as one of the delegates, later replaced by MacDonald), will judge simply by whether people are hungry or not. He will not allow for reasons which are not in our control. Kautsky is less dangerous, because, after all, he will look below the obvious.” Reinstein remembered the old personal hostility between Lenin and Kautsky, whom Lenin, in a book which Reinstein thought unworthy of him, had roundly denounced as a renegade and traitor. The only man in the delegation who could be counted on for an honest effort to understand was Longuet.

As the days went on, it became clear that the expected visit had provided a new bone of contention between the Russian parties. The Communists decided that the delegates should not be treated with any particular honour in the way of a reception. The Mensheviks at once set about preparing a triumphal reception on a large scale for the people whom they described as the representatives of genuine socialism. Demian Biedny retorted in an extremely amusing poetic dialogue, representing the Mensheviks rehearsing their parts to be ready for the reception. Other Communists went to work to prepare a retort of a different kind. They arranged a house for the Berne delegates to live in, but at the same time they prepared to emphasize the difference between the two Internationals by the calling of an anti-Berne conference which should disclaim all connection with that old International which they considered had gone into political bankruptcy at the outbreak of the European war.