ABSTRACT
This chapter explains that the whole of Lenin's system of agrarian reform, based on direct exploitation, without the utilization of hired workers, was threatening to collapse, while the prosperous peasants, the Kulaks, were becoming more and more numerous. In trade, private enterprises were continuing to spring up everywhere. In industry private initiative had created thousands of small workshops and factories which sold their products to the peasants. In 1924 it had become evident that the private section of the nation's economy was becoming more important than the socialized section. The Statistical Institute, which prepared secret reports for the Politburo, made an alarming discovery: 72 per cent of the national economy was in the hands of private persons. The chapter discusses that after Lenin's disappearance a strict and permanent control of the mechanism of the Soviet State had become a sheer necessity, Stalin and Molotov created a whole network of commissions in conjunction with the Politburo and the Orgburo.
