(Decree of the Council of People's Commissars of the U.S.S.R. and of the Central Committee of the
C.P.S.U.(B)).

19 April 1938

The Council of People's Commissars and the Central Committee of the C.P.S.U.(B) notice that from the fact of the complete victory of the Kolkhozine order and the growth of the output from the Kolkhozine fields, the communal revenues of the Kolkhozes together with the revenues from the daily work of the Kolkhozines, have augmented considerably. At the same time, the Council of People's Commissars of the U.S.S.R. and the Central Committee of the C.P.S.U.(B) state on the basis of innumerable facts that in the Kolkhozes from a series of regions and Republics and from administrative regions, the monetary revenues are incorrectly distributed in total contradiction with the interests of the Kolkhozines. The management of the Kolkhozes with the direct agreement of the Party organizations, and of the district Soviets, administrative regions, regions and Republics, spend a substantial portion of the revenues on Socialist construction in the Kolkhozes, production and administrative expenses after which the portion of revenues distributed among the Kolkhozines for their daily work, has reduced considerably. This often forces the Kolkhozines to look for work outside the Kolkhozes, and the Kolkhozes themselves often suffer from an insufficient work force.

In the S.S.R. of Tatarie for example, on 172 Kolkhozes, on average, only 28 per cent of the revenue is distributed among the workers; in the administrative region of Gorki, on 1,279 Kolkhozes only 33 per cent of the monetary revenue is distributed among the workers. In certain administrative regions and Republics (administrative regions of the Rostov, Voronieze and of Riazan, the S.S.R. of Kazakhstan and others) there are some Kolkhozes in which the monetary revenues have absolutely not been distributed among the workers for their daily labour during the year 1937.

The Council of People's Commissars of the U.S.S.R. and the Central Committee of the C.P.S.U.(B) have at their disposal analogues of facts in appreciable numbers and which concern a great number of other administrative regions, regions and Republics. Instead of constantly caring for the augmentation of monetary revenue for the daily work of the Kolkhozines and of the correct combination of the individual interests of the Kolkhozines with the social interests of the Kolkhozes, the management of the Kolkhozes are infatuated with large scale work, with excessive production expenses and with the expenses of the economic and administrative management of the Kolkhozes. From the amount appropriated to the joint funds, the expenditure on economic, administrative and cultural needs, has not only not lowered but on the contrary, has largely exceeded the standards set by statutes of the agricultural artels.

The statutes of the agricultural artels demand that the management of the Kolkhozes spend, only in that measure and only on those articles stipulated by the budget which was fixed at the conclusion of the general assembly of the Kolkhozines. In practice, however, several managements of Kolkhozes, firstly, themselves establish the budget with additional expenses, taking no notice of the budget already established and without asking for a general assembly of Kolkhozines, transferring arbitrarily, the expenditure from one article to another, without taking into consideration the realization of the plan for the revenues. These presidents and managements of the Kolkhozes do not have the right to change the fixed budget in an independent fashion, without the agreement of the Kolkhozines, to do this or that with the expenses; they forget that they are totally accountable to the general assembly of the Kolkhoz. The control commissions, as a general rule, do nothing which would transform the auxiliary apparatus of the management for the elaboration of a formal conclusion in the account of activities to be given at the end of the year.

The statutes of the agricultural artel demand that all work of the Kolkhozes should be done by the members of the Kolkhozes and only in exceptional cases is the provisional enlisting of another worker tolerated. However, the facts show that there are quite a few cases where, owing to the poor organization of work, the management of Kolkhozes spend considerable sums of money in order to enlist an outside worker, and this contributes to the undermining of the resources of the Kolkhozes and to the lowering of their revenues.

Instead of concentrating on the true task, the drawbacks and the realization of the Kolkhozine production, with the intention of increasing its monetary revenue, it is not unusual that the management of certain Kolkhozes, throughout the year conduct a practice condemned by the Party and the State, which consists of wasting Kolkhozine production by making distributions at the lowest prices both inside and outside the Kolkhozes. They are negligent in the delivery of goods, which leads finally to a decline in the price paid for the daily work of the Kolkhozines.

The directors of the Party organizations and district Soviets, of administrative regions, of regions and Republics, do not themselves understand and do not explain to the Kolkhozines, that by the sensible augmentation of the revenues in the Kolkhozes and the reinforcement of their social funds in the form of buildings, cattle and machinery (the use of the machinery of the Kolkhoz), they have there the possibility of reducing the appropriation of the revenues of the Kolkhozes to their social funds, and the large expenses, and the expenses of production and to distribute a large portion of the monetary revenues of the Kolkhozes in payment for the work of the Kolkhozines. The directors of the Party and of the district Soviets, administrative regions, regions and Republics, forget that such a careless practice in the face of increasing wages paid for daily work, the wastage and depreciation of the resources of the Kolkhozes, are objectively acts of sabotage and anti-Kolkhozine. Our directors of the Party and of Soviets must remember that in a series of places, on the basis of artificial inflation, the expenses of production, large expenditure in the Kolkhozes and the reduction in the amount of monetary revenue distributed in payment for daily work, the enemies of the people, lying in wait in their agrarian organs and other places, have consciously incited provocation in order to sabotage the Kolkhozes. The Council of People's Commissars and the Central Committee of the C.P.S.U.(B) decree : 1. To condemn as anti-Kolkhozine, the practice of having a negligent attitude towards the daily work of the Kolkhozines and also the wastage of Kolkhozine revenues on unnecessary excessive expenditure on large scale work, on production, and on administrative and economic needs. The district committees, regional committees and the Central Committee of the C.P.S.U.(B) are ordered to put an end to these practices.

2. To abolish the existing usage outlined by the statutes of the artel, concerning the distribution of the monetary revenues of the artel, and to establish that in the future the artel will redistribute among the Kolkhozines not less than 60 - 70 per cent of all the monetary revenues of the artel for their work.

3. To establish that appropriation of funds to large scale work will not exceed 10 per cent of the monetary revenues, moreover that the amount to be spent on large scale work in the current year must be based on the revenue of the previous year.

4. To establish that in the annual budget approved by the general assembly of Kolkhozines, for the needs of production, the management must not spend more than the 70 per cent outlined by the budget, before the final evaluation of the harvest. The remaining 30 per cent must be kept in reserve and spent only after the final evaluation of the harvest and after the discussion of the general assembly of the Kolkhozines. In relation to this, Article 12 changes the statutes of the agricultural artel and re-directs them as follows :

THE MONETARY REVENUES OF THE ARTEL
a) Pays to the State the taxes fixed by law, and pays the insurance quotas.

b) Distributes not less than 60 - 70 per cent of the monetary revenues among the members of the artel according to their daily work.

c) Pays out the expenses which are necessary for the current needs of production and of current distributions of agricultural machinery, medical treatment for cattle, the struggle against saboteurs, etc. d) Covers the administrative and economic expenses of the artel without exceeding 2 per cent of the monetary revenue.

e) Pays out the expenditure on cultural needs, e.g. training of brigadiers and other cadres, organization of nurseries, assembling radios. f) Completes the joint funds for the appropriation of the expenses of the following year in view of the purchase of cattle and agricultural material, of the regulation of building materials, of payment to workers recruited from outside for construction, of regular taxes to the agricultural bank according to the long term credits; moreover, the appropriation, in order to complete the joint funds must be carried out according to a figure which does not exceed 10 per cent of all the monetary revenue of the artel. All the remunerations must be recorded on a receipt of the artel, not later than the day of their payment.

An annual budget is made by the artel as much for the remuneration as for the outlays, and which will not come into force until after the ratification of the general assembly of the members of the artel. The management can only effect these expenses on the articles outlined by the budget. The arbitrary transfer of resources from one article to another is forbidden. If a manager wants to do this, he must first confer with the general assembly.

The annual budget for the needs of production of the Kolkhozes is fixed by the general assembly of Kolkhozines. The management cannot spend more than 70 per cent of the allowance outlined by the budget before the evaluation of the harvest. The other 30 per cent must be kept in reserve and only spent after the final evaluation of the harvest, and after the decision of the general assembly of Kolkhozines. The artel keeps its monetary resources available in its current bank account or at the Savings Bank. The curtailment of the current account can only be effected by the order of the management of the artel, which is made valid by the signature of the President and accountable to the artel.

5. To establish the usage, according to which the budget of each Kolkhoz is put, it is, after its ratification by the general assembly, submitted to an examination by a presidium of the executive committee of the district, which examines the budget submitted to the president of the management and to the President of the Commission of Registration of the Kolkhoz.

6. To establish that the engaging of paid workers in the Kolkhoz can only be effected with the agreement of the general assembly of the Kolkhozines. To oblige the secretaries of the districts of the
C.P.S.U.(B), and the president of the district executive committees not to tolerate the abuse and the violation of point 13 of the statutes of the agricultural artel, which forbids the paid employment of non-Kolkhozines, except in cases outlined by the artel. 7. To oblige the committees of the administrative regions, the regions and the Central Committees of the national Communist Parties to re-establish the work of the Commission of Registration in all Kolkhozes in such a way that they can do their work of registration throughout the whole year, as demanded by the statutes, and not to merely limit themselves to giving a formal conclusion in the accounting of the work of the management at the end of the year. 8. To establish that the branches of the State Banks and the agricultural banks only give credit to Kolkhozines in the case where it has been decided by the general assembly of Kolkhozines.

9. To oblige the committees of the administrative regions, of regions, the Central Committees of the national Communist Parties, the executive committees of the administrative regions, and of regions, and the Council of People's Commissars, and the Republics, to make sure that their procurators bring to justice those responsible for illegal expenditure from the resources of the Kolkhozes, and those who violate the statutes of the agricultural artel and the interests of the Kolkhozine people, since these activities are considered to be a betrayal of the Kolkhozine cause, and a help to the enemies of the people.

V. M. MOLOTOV

President of the Council of People's Commissars of the U.S.S.R.

J. STALIN

Secretary of the Communist Party of the C.P.S.U.(B)

Pravda

20 April 1938