Although nationalization of industry had been decided upon in February, and a comprehensive plan for the administration and regulation of nationalized enterprises had been published in March, promulgated as a decree, with instructions that it must be enforced by the end of May, it was not until July that the Soviet Government really decided upon its enforcement. It should be said, however, that a good many factories were nationalized between April and July. Many factories were actually abandoned by their owners and directors, and had to be taken over. Many others were just taken in an “irregular manner” by the workers, who continued their independent confiscations. For this there was indeed some sort of authority in the decree of March, 1918.[44] Transportation had broken down, and there was a lack of raw materials. It was officially reported that in May there were more than 250,000 unemployed workmen in Moscow alone. No less than 224 machine-shops, which had employed an aggregate of 120,000 men, were closed. Thirty-six textile factories, employing a total of 136,000 operatives, were likewise idle. To avert revolt, it was necessary to keep these unemployed workers upon the pay-roll. Under czarism the policy of subsidizing industrial establishments out of the government revenues had been very extensively developed. This policy was continued by the Provisional Government under Kerensky and by the Bolsheviki in their turn. Naturally, with industry so completely disorganized, this led toward bankruptcy at a rapid rate. The following extract from Gukovsky’s report to the Central Executive Committee in May requires no elucidation: [44] See text of the decree--Appendix. Our Budget has reached the astronomical figures of from 80 to 100 billions of rubles. No revenue can cover such expenditure. Our revenue for the half-year reaches approximately 3,294,000,000 rubles. It is exceedingly difficult to find a way of escape out of this situation. The repudiation of state loans played a very unfavorable part in this respect, as now it is impossible to borrow money--no one will lend. Formerly railways used to yield a revenue, and agriculture likewise. Now agriculturists refuse to export their produce, they are feeding better and hoarding money. The former apparatus--in the shape of a Government Spirit Monopoly and rural police officers--no longer exists. Only one thing remains to be done--to issue paper money _ad infinitum_. But soon we shall not be able to do even this.