This morning I went round to the Commissariat of Labour, to see Schmidt, the Commissar. Schmidt is a clean-shaven, intelligent young man, whose attention to business methods is reflected in his Commissariat, which, unlike that of Foreign Affairs, is extremely clean and very well organized. I told him I was particularly interested to hear what he could say in answer to the accusations made both by the Mensheviks and by the Extremists on the Left that control by the workers has become a dead letter, and that a time will come when the trades unions will move against the state organizations. Schmidt answered: "Those accusations and suggestions are all very well for agitational purposes, but the first to laugh at them would be the trades unions themselves. This Commissariat, for example, which is the actual labour centre, is controlled directly by the unions. As Commissar of Labour, I was elected directly by the General Council of the Trades Unions. Of the College of nine members which controls the whole work of the Commissariat, five are elected directly by the General Council of the Trades Unions and four appointed by the Council of People's Commissaries, thus giving the Unions a decisive majority in all questions concerning labour. All nine are confirmed by the Council of People's Commissaries, representing the state as a whole, and the Commissar is confirmed by the All-Russian Executive Committee." Of course control by the workers, as it was first introduced, led speedily to many absurdities and, much to the dissatisfaction of the extremer elements, has been considerably modified. It was realized that the workers in any particular factory might by considering only their own interests harm the community as a whole, and so, in the long run, themselves. The manner of its modification is an interesting example of the way in which, without the influence of tanks, aeroplanes or bayonets, the cruder ideas of communism are being modified by life. It was reasoned that since the factory was the property, not of the particular workmen who work in it, but of the community as a whole, the community as a whole should have a considerable voice in its management. And the effect of that reasoning has been to ensure that the technical specialist and the expert works manager are no longer at the caprice of a hastily called gathering of the workmen who may, without understanding them, happen to disapprove of some of their dispositions. Thus the economical, administrative council of a nationalized factory consists of representatives of the workmen and clerical staff, representatives of the higher technical and commercial staffs, the directors of the factory (who are appointed by the Central Direction of National Factories), representatives of the local council of trades unions, the Council of Public Economy, the local soviet, and the industrial union of the particular industry carried on in the factory, together with, a