The New York herald., 1921-10-22
LENINE CONFESSES
COMMUNIST DEFEAT
Tells Political Workers in
Moscow He Has Begun
Strategic Retreat
NEW POLICY rs ADOPTED
Reestablishing Capitalism in
Order to Make 1t Serve
the State.
Bu the Associated Press.

RIGA, Oct. 2l.--Premier Lenine has
made an open admission Of communism S
defeat. according to an account Of a
speech he made recently before the
Congress of Political Workers In Mos
COW. given out by the official Rosta
Agency.
"Our new economic policy. in sub
stance, follows from the fact that we
have suffered strong deteat and have
begun to carry out a strategic retreat"
he declared Before We are defeated
finally let US step back and reform
anew but on stronger base.
Everybody sees what sharp turn
the Soviet powers and the Communist
party have taken by adopting new
economic policy, which, IN substance.
contains more OF the old regime than
of our previous policy. The necessity
of considering the peasants was always
pointed out and thearole of state CAPT
talism in socialistic construction was
considered.
Admit Ideal Impractical.
"The civil war which broke out and
the desperate position in which the re-
public found itself compelled us to
change directly to Communistlc produc-
ton and distribution. However, not
q very lengthy experience convinced US
that without having gone through a pc
riod of Socialistic adjustment ane inves-
tigation 1t was not possible to Teacn
even the lowest, steps of, Communism. !
There can be no doubt that on the
economic front, In the attempt to come
over to Communism toward the spring
OF 1921. we suffered defeat more seri-
Gus than any we had experienced before.
This showed our economic policies failed
to have their feet on the ground ana
did not create that raising of productive
powers which was recognized IN lhe
party programme as fundamental and,
urgent"
Rcestabllshing Cnpitaiism.
Speaking of Russias new economic
policy, he declared: 1--WE must face the
fact that we are reestablishing capital
ism, and also the question or whether the
peasantry will follow the capitalists or
the Communists. If the capitalists or
ganize quicker and better they VIII SEND
us Communists to tho devil.
"Oud problem Is to make the future
capitalism subject to the state and serve
It. We are now surrounded by forces
stronger than ourselves. The present re-
turn to capitalism is not the reestablsh-
ing of private ownership, but of personal
Communistic interests. In order to re-
organize our economic life we must In
terest every specialist, and In this we
have failed SO far by direct attack. Now
we must make turning movement. If
we again fall every one. of us Will go to
the devil and be hanged. and VIII de-
serve II.
"I say to you: Go into business. Work
with the capitalist by your side, both
Russian and foreign. who VIII get 100
per cent. our Of you. Let him get rich.
But learn from him. and only then will
the true Communisttt repnbficfbe created.
1t is hard. difficult wrenchtng toll, but
all Of us must do 1T, as there istno other
way out. ,t
''The time for drawing political pic
| lures Of great aims Is now past. We
must put theories into practice. We
must do much cultural work and also
digest our political experience in order
that our political coup d'rtat. may be
saved ~ n rr,"