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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
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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
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RUSSIA IN 1919
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