Talking of the lies that are told about Russia, he said it was interesting to notice that they were mostly perversions of truth and not pure inventions, and gave as an example the recent story that he had recanted. ‘Do you know the origin of that?’ he said. ‘I was wishing a happy New Year to a friend over the telephone, and said “And may we commit fewer stupidities this year than last!” Someone overheard it and told someone else. A newspaper announced “Lenin says we are committing stupidities” and so the story started.’

  *

  More than ever, Lenin struck me as a happy man. Walking home from the Kremlin, I tried to think of any other man of his calibre who had had a similar joyous temperament. I could think of none. This little, bald headed, wrinkled man, who tilts his chair this way and that, laughing over one thing or another, ready any minute to give serious advice to any who interrupt him to ask for it, advice so well reasoned that it is to his followers far more compelling than any command, every one of his wrinkles is a wrinkle of laughter, not of worry. I think the reason must be that he is the first great leader who utterly discounts the value of his own personality. He is quite without personal ambition. More than that, he believes, as a Marxist, in the movement of the masses which, with or without him, would still move. His whole faith is in the elemental forces that move people, his faith in himself is merely his belief that he justly estimates the direction of those forces. He does not believe that any man could make or stop the revolution which he thinks inevitable. If the Russian Revolution fails, according to him, it fails only temporarily, and because of forces beyond any man’s control. He is consequently free with a freedom no other great man has ever had. It is not so much what he says that inspires confidence in him. It is this sensible freedom, this obvious detachment. With his philosophy he cannot for a moment believe that one man’s mistake might ruin all. He is, for himself at any rate, the exponent, not the cause, of the events that will be for ever linked with his name.

  Fourteen / The Supreme Council of Public Economy

  FEBRUARY 20

  Today 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 organisations 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, 30 from the All-Russian Industrial Productive Union (a union of trade unions), 20 from the ten District Councils of Public Economy, two from the All Russian Council of Workers’ Co-operative 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 organisation, 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 utilising 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 tur
f 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 organise 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 disorganisation 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 12 kopecks a packet. I paid a rouble for a box of ordinary matches at Bieloostrov, and a rouble and a half here.

  Fifteen / 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 20 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.

  Sixteen / A play of Chekhov

  FEBRUARY 21

  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. I
t 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.