Speaking generally, the process of abolishing monetary circulation takes the following form to-day. First of all, money is expelled from the domain of product-exchange as far as the nationalised undertakings are concerned (factories, railways, soviet farms, etc.). Money likewise disappears from the domain of account-keeping between the State and the workers of the socialist State (that is, as far as concerns account-keeping between the Soviet Power on the one hand, and the employees and workers in soviet undertakings on the other). Furthermore, money becomes superfluous in so far as the direct exchange of goods is effected between the State and the small producers (the peasants and the home workers). Even within the realm of small-scale industry, the direct exchange of goods will tend to replace the use of money; but it may be that money will not completely disappear until small-scale industry itself disappears.
Notes
Literature
There is very little literature dealing with this subject. The following may be recommended: PYATAKOV, The Proletariat and the Banks. SOKOLNIKOV, The Nationalisation of the Banks. Also the files of “Ekonomicheskaya Zhizn” [Economic Life], and “Narodnoe Hozyaistvo” [Political Economy].