The simultaneous issue of money of the old and new type made it impossible for the Commissariat of Finance to immediately commence the exchange of money, but this in no way did or does prevent it from preparing the ground for such exchange, in connection with the annulment of the major part of the old money in a somewhat different manner. Creating a considerable supply of money of the new model (1918) and increasing the productivity of the currency printing office, the Commissariat is to gradually pass over to, in fact has already begun, the issue of money exclusively of the new type. A little while after the old paper money has ceased to be printed, the laboring population, both rural and urban, as well as the Red Guards all of whom are not in position to accumulate large sums, will soon have none of the old money. Then will be the time to annul the money of the old type, since this annulment will not carry with it any serious encroachment on the interests of the large laboring masses. Thus the issue of new money is one of the most needed first steps on the road to the preparation of the fundamental problem, that is the annihilation of a considerable quantity of money of the old type, reducing in this way the general volume of the mass of paper money in circulation. We thus see that here, too, the Commissariat of Finance followed a definite policy. It goes without saying that from the point of view of Socialist policy all measures in the domain of money circulation are mere palliative measures. The Commissariat of Finance entertains no doubts as to the fact that a radical solution of the question is possible only by eliminating money as a medium of exchange. The most immediate problem before the Commissariat of Finance is undoubtedly the accomplishment of the process which has already begun, namely, the selection of the most convenient moment for the annulment of the old money. As regards the part which currency generally (at this moment of transition) plays, there can be no doubt that now it is the only and therefore inevitable system of financing the entire governmental machinery and that the choice of other ways in this direction entirely depends upon purely economic conditions, i.e., mainly upon the process of organization and restoration of the national economy as a whole. V