The Finance Credit Division of the Centrotekstil received up to February 1, 1919, 3,400,000,000 rubles. There was no control of the expenditure of moneys. _Money was advanced to factories immediately upon demand, and there were cases when money was forwarded to factories which did not exist._ From July 1 to December 31, 1918, the Centrotekstil advanced on account of products to be received 1,348,619,000 rubles. The value of the goods securing these advances received up to January 1, 1919, was only 143,716,000 rubles. The Centrotekstil’s negligent way of doing business may be particularly observed from the way it purchased supplies of raw wool. Up to January 1, 1919, only 129,803 poods of wool was acquired, whereas the annual requirement is figured at 3,500,000 poods. The value of the goods actually received was, according to this authority, only 10 per cent. of the money advanced. We are told that “money was forwarded to factories which did not exist.” That this practice was not confined to the Centro-Textile we infer from the account given in the _Izvestia_ of State Control (No. 2) of a firm which obtained a large sum of money in advance for Westinghouse brakes to be manufactured and supplied by it, though investigation proved that the firm did not even own a foundry and was unable to furnish any brakes at all. How much of this represents inefficiency, and how much of it graft, the reader must judge for himself. The Bolshevist newspaper, _Trud_, organ of the trades-unions, in an article dealing with the closing down of nineteen textile factories, said, April 28, 1919: In our textile crisis a prominent part is played also by the bad utilization of that which we do have. Thus the efficiency of labor has dropped to almost nothing, of labor discipline there is not even a trace left, the machinery, on account of careless handling, has deteriorated and its productive capacity has been lowered. In _Izvestia_ of the Central Executive Committee, March 21, 1919, Bucharin said: “Our position is such that, together with the deterioration of the material production--machinery, railways, and other things--_there is a destruction of the fundamental productive force, the labor class, as such_. Here in Russia, as in western Europe,[52] the working-class is dissolving, factories are closing, and the working-class is reabsorbed into the villages.” [52] _Sic!_