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no longer say that we have no distributive apparatus between town and countryside, between industry and the peasant economy.

All this is, of course, not enough to construct there and then a Socialist economy. But it is quite enough to proceed along the road of successful Socialist construction.

We must now re-equip our industry and must build new works and factories on a new technical basis. We must develop agriculture, supply the peasantry with a maximum of agricultural machinery, we must co-operate the majority of the working peasantry and must reorganise individual peasant farms into a big network of agricultural associations. We must organise a distributive apparatus between town and countryside capable of ascertaining and satisfying the requirements of the urban and rural districts of the whole country, just as every individual draws up his budget, his revenue and expenditure. When we will have achieved all this, then, I should say, the time will have come when there will be no more need for money. But this time is far away.

Question 4.—What about the "Scissors"?

Answer.—If by "scissors" we are to understand that discrepancy between agricultural produce and manufactured goods prices from the viewpoint of cost of production, the question of "scissors" is somewhat as follows: there is no doubt whatever that our manufactured articles are still sold at a somewhat higher price than they could be sold under different circumstances. This is because our industry is very young, because it is necessary to protect it from competition from outside, because it is essential to create for it conditions which will accelerate its development. Its rapid development is needed for our urban as well as our rural districts. Otherwise we would be unable to supply the peasant homesteads with the necessary textile goods and agricultural machinery. This creates a discrepancy between prices for manufactured articles and prices for agricultural produce to the slight detriment of the peasantry.

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