THE first element of the Soviet economic system is the nationalized form of industrial production. The term "nationalized production" has significance along two fundamental lines: the question of ownership and the question of operation, which resolve themselves into the matters of general supervision, management, technical operation, and the disposal of the product created. From the point of view of industrial production, the Soviet system has passed through two stages: first, the preliminary stage of labor control, and then the stage of nationalization proper.
As far as the Russian industrial proletariat was concerned, the process of piling up fragments of the old order was proceeding for months before the Bolshevist coup d'état with the strength of an elemental movement. Those who inspired the working masses by their propaganda and agitation, laid particular emphasis on the physical fact of ownership as the fundamental factor in the economic condition of the working class. It was easy enough to convince the masses of the proletariat, aroused to a state of unprecedented tension by