February 15, 1922

To the Council of People's Commissars

On the question of whether private associations are subject to the control of the People's Commissariat of Workers' and Peasants' Inspection, a negative answer should be given on the basis of the following considerations:

1. The new statute on the People's Commissariat of Workers' and Peasants' Inspection in Article 3, paragraph "a" says: "to establish in all central and local Soviet organs without exception, as well as in public organisations, except for cases specified in law, constant and actual control of material and monetary transactions."

Is this correct??
Incorrect! Private =
= Soviet, leased out.
That's the crux!

Consequently, private organisations and persons are not subject to such control in their material and monetary transactions.

4. Examining all the legislative material, one should arrive at the following conclusions: Soviet institutions and officials are subject to the control of the People's Commissariat of Workers' and Peasants' Inspection; public (cooperative) organisations are regulated in this respect in an extremely contradictory manner: from simple omission (consumer cooperation), from control according to the rules of a special charter, which is equivalent to the absence of a general norm (credit cooperation), from the admission of only subsequent control and prohibition

???
And the basic statute on the Workers' and Peasants' Inspection? Is this Koblenz lying? I am sure he is lying!

of preliminary control (agricultural cooperation) to, finally, a complete prohibition of any kind of control whatsoever (artisan cooperation).

5. Concerning private persons and organisations, there are no direct indications in the law, but from all the aforementioned legislative material one should draw the conclusion that they are completely free from any kind of control (preliminary and subsequent) by the People's Commissariat of Workers' and Peasants' Inspection, just like artisan cooperation.