representative of the workers' co-operative society and a representative of the peasants' soviet of the district in which the factory is situated. In this council not more than half of the members may be representatives of the workmen and clerical staff of the factory. This council considers the internal order of the factory, complaints of any kind, and the material and moral conditions of work and so on. On questions of a technical character it has no right to do more than give advice. The night before I saw Schmidt, little Finberg had come to my room for a game of chess in a very perturbed state of mind, having just come from a meeting of the union to which he belonged (the union of clerks, shop assistants and civil servants) where there had been a majority against the Bolsheviks after some fierce criticism over this particular question. Finberg had said that the ground basis of the discontent had been the lack of food, but that the outspoken criticism had taken the form, first, of protests against the offer of concessions in Chicherin's Note of February 4th, on the ground that concessions meant concessions to foreign capitalism and the formation in Russia of capitalist centres which would eventually spread; and second, that the Communists themselves, by their modifications of Workers' Control, were introducing State Capitalism instead of Socialism. I mentioned this union to Schmidt, and asked him to explain its hostility. He laughed, and said: "Firstly, that union is not an industrial union at all, but includes precisely the people whose interests are not identical with those of the workmen. Secondly, it includes all the old civil servants who, as you remember, left the ministries at the November Revolution, in many cases taking the money with them. They came back in the end, but though no longer ready to work openly against the revolution as a whole, they retain much of their old dislike of us, and, as you see, the things they were objecting to last night were precisely the things which do not concern them in particular. Any other stick would be as good to them. They know well that if they were to go on strike now they would be a nuisance to us, no more. If you wish to know the attitude of the Trades Unions, you should look at the Trades Union Congress which wholly supported us, and gave a very different picture of affairs. They know well that in all questions of labour, the trades unions have the decisive voice. I told you that the unions send a majority of the members of the College which controls the work of this Commissariat. I should have added that the three most important departments-the department for safeguarding labour, the department for distributing labour, and that for regulating wages-are entirely controlled by the Unions." "How do politics affect the Commissariat?"