The disorganized and demoralized state of the transportation system was only partly responsible for the shortage of raw materials, however. It was only one of several causes: “On account of the disorganized state of transportation we are unable to obtain cotton now, as the railroads are unable to carry it here. But even as regards those raw materials which are produced in the central parts of Soviet Russia, such as flax, wool, hemp, hides, even in these raw stuffs Soviet Russia is experiencing a severe crisis.” Attention is called to the enormous decline in the production of flax, the acreage devoted to this crop being only 30 per cent. of that formerly devoted to it and the yield very much poorer. Rykov offers as an explanation of this condition the fact that, as the Soviet Government had not been able to deliver to the peasants in the flax-producing districts “any considerable quantity of foodstuffs,” the peasants grew foodstuffs instead of flax. He adds, “Another reason why the peasants began to cultivate grains instead of flax was that the speculative prices of bread are higher than the fixed prices of flax at which the state is purchasing it.” He pours the cold water of realism upon the silly talk of huge exports of flax from Russia as soon as trade with foreign nations is opened up, and says, “_But we shall not be able to export large quantities of flax abroad, and the catastrophic decline in flax production as compared with 1919 raises the question whether the flax industry shall not experience in 1920 a flax shortage similar to the one experienced by the textile industry in cotton._”