V. I. Lenin

Recorded Speeches [1]

I

The Tax In Kind

The surplus-food appropriation system has been replaced by a tax
in kind. The All-Russia Central Executive Committee has issued a
decree to that effect. In pursuance of this decree, the Council
of People’s Commissars has issued a law introducing the
tax in kind. [2] It is now the duty of all Soviet institutions to inform the peasants of the law as broadly as
possible and explain what it means.

Why was it necessary to substitute a tax in kind for the
surplus-grain appropriation system? It is because the surplus
appropriation system proved to be extremely inconvenient and
onerous for the peasants, whose want and ruin were further
aggravated by the 1920 crop failure. Furthermore, the fodder
shortage led to greater loss of cattle; less firewood was
transported from the forests; and there was a slowdown in the
factories producing the goods to be exchanged for the peasants’ grain. The workers’ and peasants’
government had to take steps immediately to alleviate the
condition of the peasants.

The tax in kind amounts to only about one-half of the surplus-grain appropriation rate: grain, for example, will
amount to 240 million poods instead of 423 million. Every
peasant will know the exact amount of tax he has to pay
beforehand, that is, in the spring. This will reduce the abuses
in tax collection. It will be an incentive for the peasant to
cultivate a larger area, to improve his farm, and try to raise
yields.

This country has been devastated unbelievably first by the
tsarist war, and then by the Civil War, that is, by the
landowners’ and capitalists’ invasion against the
Soviet power of workers and peasants. The national economy must
be put on its feet at all costs. And the first thing to do is to
restore, consolidate and improve peasant farming.

The tax in kind will help to improve peasant farming. The peasants will now
set to work on their farms with greater confidence and with a
will, and that is the main thing.

N. Lenin

April. 25, 1921

2
Concessions And The Development Of Capitalism

The Soviet government is inviting foreign capitalists to obtain
concessions in Russia.

What is a concession? It is a contract between the government
and a capitalist who undertakes to organise or improve production (for example, felling and floating timber, extracting
coal, oil, ore, etc.) and to pay the government a share of the
product obtained, keeping the rest as his profit.

Is it right for the Soviet government to invite foreign
capitalists after expelling the Russian landowners and capitalists? Yes, it is, because, seeing that the workers’
revolution in other countries is delayed, we have to make some
sacrifices in order to achieve a rapid and even immediate
improvement in the condition of the workers and peasants. The
sacrifice is that over a number of years we shall be giving away
to the capitalists tens of millions of poods of valuable
products. The improvement in the condition of the workers and
peasants is that we shall immediately obtain additional
quantities of petroleum, paraffin oil, salt, coal, farming
implements, and so forth. We have no right to forego the
opportunity of immediately improving the condition of the
workers and peasants, for our impoverishment makes it essential,
and our sacrifices will not be fatal.

But is it not dangerous to invite the capitalists? Does it not
imply a development of capitalism? Yes, it does imply a
development of capitalism, but this is not dangerous, because
power will still be in the hands of the workers and peasants,
and the landowners and capitalists will not be getting back their property. A concession is something in the
nature of a contract of lease. The capitalist becomes, for a
specified period, the lessee of a certain part of state property
under a contract, but he does not become the owner. The state
remains the owner.

The Soviet government will see to it that the capitalist lessee
abides by the terms of the contract, that the contract is to our
advantage, and that, as a result, the condition of the workers
and peasants is improved. On these terms the development of
capitalism is not dangerous, and the workers and peasants stand
to gain by obtaining a larger quantity of products.

N. Lenin

April 25, 1921

3
Consumers’ and Producers’ Co-Operative Societies

Consumers’ co-operative societies are associations of workers and peasants for the purpose of supplying and
distributing the goods they need. Producers’ co-operative
societies are associations of small farmers or artisans for the
purpose of producing and marketing products, whether agricultural (such as vegetables, dairy produce and the like) or
non-agricultural (all sorts of manufactured goods, woodwork,
ironware, leather goods, and so forth).

The substitution of the tax in kind for the surplus appropriation system will give the peasants grain surpluses
which they will freely exchange for all sorts of manufactured
goods.

Producers’ co-operatives will help to develop small industry, which will supply the peasants with greater quantities
of necessary goods. Most of these do not have to be transported
by rail over long distances and do not need large factories for
their manufacture. Everything must be done to foster and develop
producers’ co-operatives, and it is the ditty of Party and
Soviet workers to render them every assistance, for this will
give the peasants immediate relief and improve their condition. At the present time, the revival and restoration of
the national economy of the workers.’ and peasants’ stale depends most of all on the improvement of peasant life and
farming.

There must also be support and development of consumers’
co-operative societies, for they will ensure swift, regular and
low-cost distribution of products. It remains for the Soviet
authorities to supervise the activity of the cooperative
societies to see that there are no fraudulent practices, no
concealment from the government, no abuses. In no circumstances
should they hamper the co-operative societies but should help
and promote them in every way.

Endnotes

[1] Sixteen of
Lenin’s speeches were recorded by the Central Periodicals
Administration from 1919 to 1921. After the only record factory
in Russia was restored, Lenin showed great interest in propaganda through records and in many ways helped to organise
it. His first speeches were recorded in a specially equipped
room at the Kremlin and the last, at the Central Periodicals
Administration. Recording time was three minutes, and Lenin was
always pleased when he managed to stay within limits. Sales ran
to tens of thousands of records with special popularity enjoyed
by his speeches, “On the Middle Peasants”, “What is the Soviet Power?”
and “On the Tax in Kind”. The speeches published in this volume
were recorded on April 25, 1921.

[2] Under a resolution
of the Tenth Party Congress (March 21, 1921) the All-Russia
Central Executive Committee issued a decision (March 23) on the
substitution of a tax in kind for the surplus appropriation
system. In pursuance of that decision, the Council of
People’s Commissars approved on March 28 and published on
March 29 two decrees: “The Amount of the Tax in Kind for
1921-22” and “On Free Exchange, Purchase and Sale of
Farm Produce in Gubernias Fulfilling Appropriations”. On
April 21 and later, the Council of People’s Commissars adopted decisions on the tax rate for grain, potatoes, oil seeds
and other farm produce.