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The Communist system continues, I suppose, to
have a theoretical existence in the minds of the
leaders, but in practice they have passed over to
State Socialism, as we have seen, and then to a
regime wherein private initiative constantly receives
a larger share. The Co-operatives, besides, play
a very important rôle.
In later chapters on transport, industry, trade,
etc., I shall try to illustrate and give concrete
examples to show the truth of these general
impressions.
Under life’s pressure the whole Russian
organisation must develop, and even if the general position
is still extremely difficult, one can already see
encouraging results.
During the deliberations I had early this year
with the leaders of the various departments of
Russian economic life I was able to observe the
serious and methodical way in which they were
trying, by strenuous efforts, to carry out their
economic reconstruction based on the principles of
the new economic policy.
Even the caution with which they advance is
really a reason for believing that their work will
succeed. They have given up trying to settle by
orders of the day the thousand problems raised
daily by practical life.
They have a full understanding of the complexity
of the economic phenomena and of the dangers
which lie in the constant interference by the State
in the life of industry, trade and agriculture.
At the end of a report on the results of the new
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