Property Rights under Socialism
“The system of property relations established by the law and Constitution of the U.S.S.R., is based on the principle of harmonizing the interests of society as a whole with the interests of the individual citizen.”
A brief summary of “Property rights of Soviet Citizens”, by M.S. Lipetsker 1946
One of the fabricated demagogy and propaganda subject against socialism has been the “property rights”. Through such propaganda, “government will confiscate everything from your car to your TV” etc, capitalists have been able to scare not only the middle class and petty bourgeois elements, but workers and peasants alike.
Since we have Soviets’ experience before us to get a factual account, it will be quite helpful to have a look at Soviet Constitution.
Constitution of the Soviets approaches to question by dividing “property” in two major groups. Since the basis of class conflict is the ownership of the means of production, without any surprise, the first group of “property” is the means of production, second group covers the basic needs of people, named “article of consumption” in constitution.
The first group, means of production, covers factories and mills, the natural resources of country, like water land, mines, forests, means of communications, media, press, phone, post, financial and trading instruments like banking, insurance and like.
Second group, “articles of personal consumption”, covers house, anything related to housing, personal belongings for personal use..
Constitution clearly states that all the major means of production capable of influencing the economic life of country as a whole are public property. No person can own them but the people. Ownership of such magnitude means of production becomes the property of people. The products and revenues depending on the situation may belong to state, cooperatives or similar collectives- public institutions.
Use of means of production, the products and revenues derived from are for the benefit of entire society, not for any individual.
Article 131 of the Constitution of the U.S.S.R. reads: "It is the duty of every Citizen of the U.S.S.R. to safeguard and strengthen public, socialist property as the sacred and inviolable foundation of the Soviet system, as the source of the wealth and might of the country, as the source of the prosperous and cultured life of all the working people. Persons committing offenses against public, socialist property are enemies of the people."
Private property
The right of property is the most extensive of Soviet civil rights, and is fully protected by the state. The right of property is a civil right which takes precedence over all others, and in the event of collision with other rights it is upheld against them in law.
The Constitution says: "The right of citizens to personal ownership of their incomes from work and their savings, of their dwelling houses and subsidiary household economy, their household furniture and utensils and articles of personal use and convenience, as well as the right of inheritance of personal property of citizens, is protected by law."
Personal property consists chiefly of money and articles of consumption; only rarely of means of production.
Personal property is at the full and complete disposal of its owner. Articles of personal 'property may be bought, sold, donated or pledged at the owner's discretion. They may not, however, be used as means of exploiting the labor of others, or as objects of profiteering or usury. On the death of the owner of personal property, it is inherited by his heirs. If a thing loses its owner-for instance, if the owner dies without leaving heirs-it automatically becomes the property of the state.
The state encourages and aids citizens in acquiring personal property. A person who desires to build himself a house, for example, will be granted a plot of land free of charge; the government will also supply him with building material on easy terms, will provide him with technical advice and plans free, and will grant him loans (repayable in a period of up to seven years) at two per cent interest. A collective farmer who desires to buy a cow for his own use may obtain it from the government on credit, repay able in installments.
The owner has very wide liberty of action with regard to his property and, as a rule, may do with it whatever he thinks fit. However, certain limitations are established by law. For example, he may not use his property in a way calculated to jeopardize the interests of the state, or of society, or of other individuals, nor may he use it for speculative purposes or to derive unearned income from it.
There are limitations on the kinds of property private citizens may own. They may not own land, forests, mineral deposits, or means of production which can only be exploited with the help of hired labor.
The most common objects or personal property are money, banknotes, securities, articles of personal use and convenience, household furniture, books, works of art radio sets, sports goods, automobiles, houses, domestic animals and poultry ,and simple agricultural implements and tools (provided they are not used for the exploitation of the labor of others). Personal property may not be used for the exploitation of the labor of others, nor for the acquisition of unearned income (e.g., by profiteering or usury).
Statistics for 1936 show that in that year private citizens owned nearly 1,000,000 dwelling houses in urban areas and over 19,000,000 houses in rural areas, 1,776,000 horses, 36,117,000 cows and oxen, 40,756,000 sheep and goats, 19,700,000 pigs; and securities (state loan certificates) to the value of nearly 15,000,000,000 rubles.
There is no limit to the amount of personal property a citizen may own. In particular the law sets no limit on savings.
The owner of a dwelling house may let any part of it, he does not care to occupy himself, but the rent he exacts for it must not be more than 20 per cent in excess of the rent paid for similar space in government-owned houses.
Owners of houses or other buildings, livestock, crops, fruit orchards, as well as the tools of a handicraft or trade are obliged to insure them against fire, damage or other accident.
To sum up, it may be said that the only restrictions imposed on the right of personal property are designed to prevent its being used for unearned income and the exploitation of the labor of others, and to ensure the proper maintenance and most effective use of such objects of personal property as are of national economic importance (dwelling houses, pedigree stocks, etc.). In all other respects the right of enjoyment of personal property is unrestricted.
FAMILY PROPERTY
The property of man and wife is a specific form of joint property. The rules governing the joint property of man and wife extend to all Soviet families except peasant families, i.e., the families of collective and –individual farmers.
The joint property of man and wife is such property as they acquired (purchased or produced) since their marriage. The property which belonged to either of them before marriage remains 'his (or her) property and the other party has no legal right t to it.
Property acquired by a couple since marriage is considered their joint property irrespective of whether it was acquired in the name of both or of only one of them.. In particular, Soviet legal practice holds that a house acquired after marriage, but entered in the Building Register in the name of only one of two is nevertheless to be regarded as the joint property of both. An exception to the general rule is the case of savings bank deposits, which, if made in the name of only one of the couple even during marriage are regarded as belonging to him (or her), and the other party has no claim to them.
There are certain exceptions to the general rules governing the joint property of husband and wife.
Tools, instruments, books and the like, used by one of the. couple for the exercise of his or her professional occupation, belong to that particular spouse, even though they were acquired during wedlock. If, however, both husband and life follow the same occupation and the objects in question are used by both, they are considered joint property.
As long as they continue in wedlock husband and wife have an equal right to their joint property. The Code of Wedlock, the Family and Guardianship states that "the manner of conducting the common household is arranged by mutual agreement of the two spouses," in other words, husband and wife exercise possession, use and disposal of their joint property by common consent.
Joint ownership means that all fruits and income from the property goes to the benefit of the common household, and likewise that the cost of maintenance and operation of the property is borne in common.
For a long time it was a moot question in Soviet law whether the joint property of husband and wife could be distrained for debt or other claims against only one of them.
Today this question has been settled as follows. If the debt arose by the action of only one of the spouses, but was in the interest of the common household, the joint property of both may be distrained, but if the debt was incurred in the interest of only one of the spouses and not for the benefit either of the common household or of the other spouse, distraint may be levied only on the property of the defaulting spouse and on his (or her) share of the joint property, the share of the other spouse being immune.
The Collective Farm Household
A different set of regulations, however, governs the property relations of the peasant family (whether of collective or individual farmer). The basic nucleus is the peasant household (if it belongs to a collective farm it is called a collective farm household). The Land Code defines the household as "a family-labor association of persons jointly engaged in agriculture." It should be noted that, if the household does not belong to a collective farm, the agricultural enterprise conducted by the members of the household represents their principal source of income. If, however, the household does belong to a collective farm, the Joint establishment of the members of the household is if a subsidiary character and serves only to supplement the Income they drive from the collective farm. Apart from their Joint agricultural enterprise-principal or subsidiary the members of a household are also linked by the fact that they conduct a Joint domestic economy.
The rural household is something wider than the urban family . It may consist not only of the husband and wife, their minor. or unmarred adult children, near or even remote relations; the household not infrequently comprises two or more couples-married brothers or sisters, stay together .with their progeny. What is more, even persons who are In no way related by kinship to the other members may be adopted into a household.
The able bodied as well as the non-able bodied including minor children, are all equally members of' the household.
The property relations within the peasant (collective farm) family are as follows:
Dwelling houses and farm buildings, livestock and poultry, agricultural Implements and machines, crops sown and orchard planted on land occupied by the household the crops gathered from this land, proceeds from the sale of produce, whether from the collective farm or family holding worked by members of the household, food, fodder and seed stocks, furniture and utensils used in common etc., constitutes the joint property of the household.
All Income earned by individual members of a household on the collective farm or elsewhere remains at the disposal of the person concerned and does not become the property of the household.
The income derived from the family small-holding is the joint property of all the members.
The share of the joint property to be assigned to persons who leave a household is determined by agreement between them and the remaining members; if agreement cannot be reached, the courts may be asked to settle the dispute.
Private Enterprises
Participation in collective production is voluntary. A Soviet citizen who does not desire to work in socialized enterprise may engage in private enterprise-in farming, handicrafts, or in one of the liberal professions.
Private enterprise is permitted, provided that it is individual; in other words, that it is carried on without hired labor.
The property rights of small private enterprises differ very little in legal status from those held by personal property.
Private enterprise is relatively prevalent only in the Soviet Republics of Latvia, Lithuania and Estonia, and, to a lesser extent, in Moldavia, where the collective farm movement is only in its early stages. The majority of the peasants still carry on individual farming. It should be noted that, in contradistinction to the other Soviet republics, the laws of Latvia, Lithuania and Estonia do not prohibit the employment of hired labor on privately owned farms or in private owned workshops. The number of hired workers must not, however, exceed three per establishment.
Cooperative and collective farm property
Collective farm and co-operative property are one of the forms of socialist property and a pillar of Soviet society, helping to promote the~ wealth and strength of the Soviet Union and the prosperity of Its Citizens.
Co-operative organizations and collective farms may own any kind of property over which the state does not exercise a monopoly and which is needed for the exercise of the functions specified in their statutes. Their chief forms of property are their livestock implements, buildings and the products of their enterprise.
Cooperatives own small scale production establishments including mining, and whole sale, retail produce establishments.
Trade unions, cultural and scientific societies, youth organizations and such associations are categorized as the property of the cooperative societies.
Guidance and rules for cooperative organizations are designed to make sure that the land owning collective farms do not function for the benefits of members alone but for the entire Soviet Society.
The laws governing the property rights of co-operative organizations also extend to public, political, trade union, educational, scientific, sports and similar associations and societies.
All co-operative and public organizations are voluntary associations. Their original capital is acquired out of the contributions of their members, either in money or in kind.
The property of a co-operative organization is separate and distinct from that of the state and of all other co-operative or public organizations. No government body or official may interfere in the use or disposal of the property of collective farms or co-operative bodies, or give orders as to what they should produce or not produce, apart from the assignments laid down in the national-economic plan.
The Law on the Functions and Organization of Producer Cooperative Societies states that" an artel (producer co-operative) has the sole and independent disposal of its working capital and property."
Clause 6 of the Model Rules for Collective Farms, for instance, reads: "The collective farm undertakes to conduct its activities in a planned way strictly observing the programs of agricultural production laid down by the organs of the Workers and Peasants Government, and its obligations to the state.
The relations of co-operative organizations to the national-economic plan differ from those of the state business enterprises. The activities of the latter are entirely governed by plan: they exist solely and exclusively for the carrying out of the national-economic plan, and may not en a e in any operations which do not promote Its fulfillment, even if they do not necessarily interfere with It. This is not so in the case of collective farms and. co-operative organizations.
Their first duty is to fulfill their production programs under the plan, .but they may engage in other activities and operations providing they are sanctioned by their statutes and do not interfere with the fulfillment of the plan.
The products and profits derived .by collective arms and co-operative organizations from their operations belong solely to them and may not be appropriated by the government or by the co-operative federations
The Soviet state is interested in promoting and encouraging the productive capacity of the co-operatives. The law therefore contains a number of provisions designed to prevent reduction or squandering of their productive capital. For example, a co-operative organization may sell part of its means of production only if the fulfillment of the government plans is not jeopardized thereby. It may only be disposed of to other co-operative or public bodies, or to state enterprises, but not to private persons.
STATE PROPERTY
State property is the chief form of socialist property. State property belongs to the Soviet state, as the sole representative of the will of the Soviet people. The right of state property is vested exclusively in the state.
All state property is divided into three categories: union, republican and local.
Union property is owned by the Union of Soviet Socialist Republics and is administered by the Government of the U.S.S.R. and its institutions and enterprises. The operation of this property is planned by the Union Government and financed out of the budget of the U.S.S.R.
Republican property is owned by one or other of the Union (Constituent) Republics or Autonomous Republics of the U.S.S.R.
Local property belongs to one or other of the local government bodies (regional, district, city or rural Soviets of Working People's Deputies).
The land, natural deposits, forests and waters belong to the state. They cannot become the property either of juristic persons (corporations) or of private persons. Nor can they be made objects of commerce or of civil transactions: they cannot be bought, sold, exchanged, presented in gift, bequeathed, etc. Any transaction which overtly or covertly involves the alienation of land, forests or waters is invalid, and the parties to such transactions are liable to imprisonment, to forfeiture of the use of the object of the transaction, and to confiscation of pecuniary or other material benefits derived from the transaction.
As a rule, the use and exploitation of useful land, forests, waters and mineral deposits are entrusted to state business enterprises, co-operative and public organizations, and private persons. In fact, the functions vested in the government administrative bodies in relation to such property are virtually limited to distributing it among the actual users and to exercising supervision over the way it is used.
The bulk of the arable land of the Soviet Union has been placed at the disposal of the farmers who till it.
The period of tenure of the above-enumerated properties is in most cases unlimited. In particular, the Constitution of the U.S.S.R. states that the land occupied by the collective farms is secured to them" in perpetuity."
In most cases land, forests, waters and natural deposits are placed at the disposal of state business enterprises, co-operative and public organizations and private persons free of charge.
The period of tenure of the land held by individual peasants, of the household plots of collective farmers, and of land, forests and mineral deposits operated by state business enterprises, is likewise unlimited.
Land, forests, waters and natural deposits are assigned only for specifically defined purposes in each case. lf they are used for other purposes (e.g., if land assigned for building purposes is ploughed up for cultivation) the administrative authorities may recover them. Tenure may also be terminated if, for instance, farm land is left uncultivated for a definite number of years in succession, mineral deposits are not worked, and so on.
If the holder decides no longer to exploit the land, forest, water area or mineral deposits placed at his disposal, he may not sell, lease, or otherwise transfer it, but must return it to the administrative body which .has control over it.
Special permission is not required for the use of water for drinking or household purposes, for the gathering of firewood, wild fruits, berries or mushrooms for personal use, or for hunting as a sport (except on government reservations or commercial hunting preserves) or for amateur fishing, all of which are open to all citizens.
State Business Enterprises
The property operated by the state business enterprises is divided into two categories "basic capital" and "working funds", each with a different status in the eyes of the law.
Basic capital comprises buildings, machinery, tools and other productive equipment, means of transport, animals used for draught, productive and breeding purposes; and so on.
State business enterprises may acquire (build up or purchase) new basic capital only with funds assigned to them out of the government budget (central, republican or local, as the case may be). They may not acquire new basic capital out of their working funds.
The basic capital of a state business organization may not under any circumstances be mortgaged or pledged as collateral security. Nor can it be levied for the satisfaction of the enterprise's creditors.
The working capital of a state business enterprise consists of Its stocks of raw material, fuel, partly finished goods, finished goods and cash, as well as of all other property which does not form part of its basic capital.
Working .capital is assigned to an enterprise by the higher authority to which it is subordinated in quantity sufficient to enable It to carry out its production program (plan). It may employ its working capital any way it deems fit for the fulfillment of its plan; it may sell pledge It, or acquire other working capital, no special sanction from the higher authorities is required for such transactions.
The system of property relations established by the law and Constitution of the U.S.S.R., is based on the principle of harmonizing the interests of society as a whole with the interests of the individual citizen.
A brief summary of “Property rights of Soviet Citizens”, by M.S. Lipetsker 1946
EA
A brief summary of “Property rights of Soviet Citizens”, by M.S. Lipetsker 1946
One of the fabricated demagogy and propaganda subject against socialism has been the “property rights”. Through such propaganda, “government will confiscate everything from your car to your TV” etc, capitalists have been able to scare not only the middle class and petty bourgeois elements, but workers and peasants alike.
Since we have Soviets’ experience before us to get a factual account, it will be quite helpful to have a look at Soviet Constitution.
Constitution of the Soviets approaches to question by dividing “property” in two major groups. Since the basis of class conflict is the ownership of the means of production, without any surprise, the first group of “property” is the means of production, second group covers the basic needs of people, named “article of consumption” in constitution.
The first group, means of production, covers factories and mills, the natural resources of country, like water land, mines, forests, means of communications, media, press, phone, post, financial and trading instruments like banking, insurance and like.
Second group, “articles of personal consumption”, covers house, anything related to housing, personal belongings for personal use..
Constitution clearly states that all the major means of production capable of influencing the economic life of country as a whole are public property. No person can own them but the people. Ownership of such magnitude means of production becomes the property of people. The products and revenues depending on the situation may belong to state, cooperatives or similar collectives- public institutions.
Use of means of production, the products and revenues derived from are for the benefit of entire society, not for any individual.
Article 131 of the Constitution of the U.S.S.R. reads: "It is the duty of every Citizen of the U.S.S.R. to safeguard and strengthen public, socialist property as the sacred and inviolable foundation of the Soviet system, as the source of the wealth and might of the country, as the source of the prosperous and cultured life of all the working people. Persons committing offenses against public, socialist property are enemies of the people."
Private property
The right of property is the most extensive of Soviet civil rights, and is fully protected by the state. The right of property is a civil right which takes precedence over all others, and in the event of collision with other rights it is upheld against them in law.
The Constitution says: "The right of citizens to personal ownership of their incomes from work and their savings, of their dwelling houses and subsidiary household economy, their household furniture and utensils and articles of personal use and convenience, as well as the right of inheritance of personal property of citizens, is protected by law."
Personal property consists chiefly of money and articles of consumption; only rarely of means of production.
Personal property is at the full and complete disposal of its owner. Articles of personal 'property may be bought, sold, donated or pledged at the owner's discretion. They may not, however, be used as means of exploiting the labor of others, or as objects of profiteering or usury. On the death of the owner of personal property, it is inherited by his heirs. If a thing loses its owner-for instance, if the owner dies without leaving heirs-it automatically becomes the property of the state.
The state encourages and aids citizens in acquiring personal property. A person who desires to build himself a house, for example, will be granted a plot of land free of charge; the government will also supply him with building material on easy terms, will provide him with technical advice and plans free, and will grant him loans (repayable in a period of up to seven years) at two per cent interest. A collective farmer who desires to buy a cow for his own use may obtain it from the government on credit, repay able in installments.
The owner has very wide liberty of action with regard to his property and, as a rule, may do with it whatever he thinks fit. However, certain limitations are established by law. For example, he may not use his property in a way calculated to jeopardize the interests of the state, or of society, or of other individuals, nor may he use it for speculative purposes or to derive unearned income from it.
There are limitations on the kinds of property private citizens may own. They may not own land, forests, mineral deposits, or means of production which can only be exploited with the help of hired labor.
The most common objects or personal property are money, banknotes, securities, articles of personal use and convenience, household furniture, books, works of art radio sets, sports goods, automobiles, houses, domestic animals and poultry ,and simple agricultural implements and tools (provided they are not used for the exploitation of the labor of others). Personal property may not be used for the exploitation of the labor of others, nor for the acquisition of unearned income (e.g., by profiteering or usury).
Statistics for 1936 show that in that year private citizens owned nearly 1,000,000 dwelling houses in urban areas and over 19,000,000 houses in rural areas, 1,776,000 horses, 36,117,000 cows and oxen, 40,756,000 sheep and goats, 19,700,000 pigs; and securities (state loan certificates) to the value of nearly 15,000,000,000 rubles.
There is no limit to the amount of personal property a citizen may own. In particular the law sets no limit on savings.
The owner of a dwelling house may let any part of it, he does not care to occupy himself, but the rent he exacts for it must not be more than 20 per cent in excess of the rent paid for similar space in government-owned houses.
Owners of houses or other buildings, livestock, crops, fruit orchards, as well as the tools of a handicraft or trade are obliged to insure them against fire, damage or other accident.
To sum up, it may be said that the only restrictions imposed on the right of personal property are designed to prevent its being used for unearned income and the exploitation of the labor of others, and to ensure the proper maintenance and most effective use of such objects of personal property as are of national economic importance (dwelling houses, pedigree stocks, etc.). In all other respects the right of enjoyment of personal property is unrestricted.
FAMILY PROPERTY
The property of man and wife is a specific form of joint property. The rules governing the joint property of man and wife extend to all Soviet families except peasant families, i.e., the families of collective and –individual farmers.
The joint property of man and wife is such property as they acquired (purchased or produced) since their marriage. The property which belonged to either of them before marriage remains 'his (or her) property and the other party has no legal right t to it.
Property acquired by a couple since marriage is considered their joint property irrespective of whether it was acquired in the name of both or of only one of them.. In particular, Soviet legal practice holds that a house acquired after marriage, but entered in the Building Register in the name of only one of two is nevertheless to be regarded as the joint property of both. An exception to the general rule is the case of savings bank deposits, which, if made in the name of only one of the couple even during marriage are regarded as belonging to him (or her), and the other party has no claim to them.
There are certain exceptions to the general rules governing the joint property of husband and wife.
Tools, instruments, books and the like, used by one of the. couple for the exercise of his or her professional occupation, belong to that particular spouse, even though they were acquired during wedlock. If, however, both husband and life follow the same occupation and the objects in question are used by both, they are considered joint property.
As long as they continue in wedlock husband and wife have an equal right to their joint property. The Code of Wedlock, the Family and Guardianship states that "the manner of conducting the common household is arranged by mutual agreement of the two spouses," in other words, husband and wife exercise possession, use and disposal of their joint property by common consent.
Joint ownership means that all fruits and income from the property goes to the benefit of the common household, and likewise that the cost of maintenance and operation of the property is borne in common.
For a long time it was a moot question in Soviet law whether the joint property of husband and wife could be distrained for debt or other claims against only one of them.
Today this question has been settled as follows. If the debt arose by the action of only one of the spouses, but was in the interest of the common household, the joint property of both may be distrained, but if the debt was incurred in the interest of only one of the spouses and not for the benefit either of the common household or of the other spouse, distraint may be levied only on the property of the defaulting spouse and on his (or her) share of the joint property, the share of the other spouse being immune.
The Collective Farm Household
A different set of regulations, however, governs the property relations of the peasant family (whether of collective or individual farmer). The basic nucleus is the peasant household (if it belongs to a collective farm it is called a collective farm household). The Land Code defines the household as "a family-labor association of persons jointly engaged in agriculture." It should be noted that, if the household does not belong to a collective farm, the agricultural enterprise conducted by the members of the household represents their principal source of income. If, however, the household does belong to a collective farm, the Joint establishment of the members of the household is if a subsidiary character and serves only to supplement the Income they drive from the collective farm. Apart from their Joint agricultural enterprise-principal or subsidiary the members of a household are also linked by the fact that they conduct a Joint domestic economy.
The rural household is something wider than the urban family . It may consist not only of the husband and wife, their minor. or unmarred adult children, near or even remote relations; the household not infrequently comprises two or more couples-married brothers or sisters, stay together .with their progeny. What is more, even persons who are In no way related by kinship to the other members may be adopted into a household.
The able bodied as well as the non-able bodied including minor children, are all equally members of' the household.
The property relations within the peasant (collective farm) family are as follows:
Dwelling houses and farm buildings, livestock and poultry, agricultural Implements and machines, crops sown and orchard planted on land occupied by the household the crops gathered from this land, proceeds from the sale of produce, whether from the collective farm or family holding worked by members of the household, food, fodder and seed stocks, furniture and utensils used in common etc., constitutes the joint property of the household.
All Income earned by individual members of a household on the collective farm or elsewhere remains at the disposal of the person concerned and does not become the property of the household.
The income derived from the family small-holding is the joint property of all the members.
The share of the joint property to be assigned to persons who leave a household is determined by agreement between them and the remaining members; if agreement cannot be reached, the courts may be asked to settle the dispute.
Private Enterprises
Participation in collective production is voluntary. A Soviet citizen who does not desire to work in socialized enterprise may engage in private enterprise-in farming, handicrafts, or in one of the liberal professions.
Private enterprise is permitted, provided that it is individual; in other words, that it is carried on without hired labor.
The property rights of small private enterprises differ very little in legal status from those held by personal property.
Private enterprise is relatively prevalent only in the Soviet Republics of Latvia, Lithuania and Estonia, and, to a lesser extent, in Moldavia, where the collective farm movement is only in its early stages. The majority of the peasants still carry on individual farming. It should be noted that, in contradistinction to the other Soviet republics, the laws of Latvia, Lithuania and Estonia do not prohibit the employment of hired labor on privately owned farms or in private owned workshops. The number of hired workers must not, however, exceed three per establishment.
Cooperative and collective farm property
Collective farm and co-operative property are one of the forms of socialist property and a pillar of Soviet society, helping to promote the~ wealth and strength of the Soviet Union and the prosperity of Its Citizens.
Co-operative organizations and collective farms may own any kind of property over which the state does not exercise a monopoly and which is needed for the exercise of the functions specified in their statutes. Their chief forms of property are their livestock implements, buildings and the products of their enterprise.
Cooperatives own small scale production establishments including mining, and whole sale, retail produce establishments.
Trade unions, cultural and scientific societies, youth organizations and such associations are categorized as the property of the cooperative societies.
Guidance and rules for cooperative organizations are designed to make sure that the land owning collective farms do not function for the benefits of members alone but for the entire Soviet Society.
The laws governing the property rights of co-operative organizations also extend to public, political, trade union, educational, scientific, sports and similar associations and societies.
All co-operative and public organizations are voluntary associations. Their original capital is acquired out of the contributions of their members, either in money or in kind.
The property of a co-operative organization is separate and distinct from that of the state and of all other co-operative or public organizations. No government body or official may interfere in the use or disposal of the property of collective farms or co-operative bodies, or give orders as to what they should produce or not produce, apart from the assignments laid down in the national-economic plan.
The Law on the Functions and Organization of Producer Cooperative Societies states that" an artel (producer co-operative) has the sole and independent disposal of its working capital and property."
Clause 6 of the Model Rules for Collective Farms, for instance, reads: "The collective farm undertakes to conduct its activities in a planned way strictly observing the programs of agricultural production laid down by the organs of the Workers and Peasants Government, and its obligations to the state.
The relations of co-operative organizations to the national-economic plan differ from those of the state business enterprises. The activities of the latter are entirely governed by plan: they exist solely and exclusively for the carrying out of the national-economic plan, and may not en a e in any operations which do not promote Its fulfillment, even if they do not necessarily interfere with It. This is not so in the case of collective farms and. co-operative organizations.
Their first duty is to fulfill their production programs under the plan, .but they may engage in other activities and operations providing they are sanctioned by their statutes and do not interfere with the fulfillment of the plan.
The products and profits derived .by collective arms and co-operative organizations from their operations belong solely to them and may not be appropriated by the government or by the co-operative federations
The Soviet state is interested in promoting and encouraging the productive capacity of the co-operatives. The law therefore contains a number of provisions designed to prevent reduction or squandering of their productive capital. For example, a co-operative organization may sell part of its means of production only if the fulfillment of the government plans is not jeopardized thereby. It may only be disposed of to other co-operative or public bodies, or to state enterprises, but not to private persons.
STATE PROPERTY
State property is the chief form of socialist property. State property belongs to the Soviet state, as the sole representative of the will of the Soviet people. The right of state property is vested exclusively in the state.
All state property is divided into three categories: union, republican and local.
Union property is owned by the Union of Soviet Socialist Republics and is administered by the Government of the U.S.S.R. and its institutions and enterprises. The operation of this property is planned by the Union Government and financed out of the budget of the U.S.S.R.
Republican property is owned by one or other of the Union (Constituent) Republics or Autonomous Republics of the U.S.S.R.
Local property belongs to one or other of the local government bodies (regional, district, city or rural Soviets of Working People's Deputies).
The land, natural deposits, forests and waters belong to the state. They cannot become the property either of juristic persons (corporations) or of private persons. Nor can they be made objects of commerce or of civil transactions: they cannot be bought, sold, exchanged, presented in gift, bequeathed, etc. Any transaction which overtly or covertly involves the alienation of land, forests or waters is invalid, and the parties to such transactions are liable to imprisonment, to forfeiture of the use of the object of the transaction, and to confiscation of pecuniary or other material benefits derived from the transaction.
As a rule, the use and exploitation of useful land, forests, waters and mineral deposits are entrusted to state business enterprises, co-operative and public organizations, and private persons. In fact, the functions vested in the government administrative bodies in relation to such property are virtually limited to distributing it among the actual users and to exercising supervision over the way it is used.
The bulk of the arable land of the Soviet Union has been placed at the disposal of the farmers who till it.
The period of tenure of the above-enumerated properties is in most cases unlimited. In particular, the Constitution of the U.S.S.R. states that the land occupied by the collective farms is secured to them" in perpetuity."
In most cases land, forests, waters and natural deposits are placed at the disposal of state business enterprises, co-operative and public organizations and private persons free of charge.
The period of tenure of the land held by individual peasants, of the household plots of collective farmers, and of land, forests and mineral deposits operated by state business enterprises, is likewise unlimited.
Land, forests, waters and natural deposits are assigned only for specifically defined purposes in each case. lf they are used for other purposes (e.g., if land assigned for building purposes is ploughed up for cultivation) the administrative authorities may recover them. Tenure may also be terminated if, for instance, farm land is left uncultivated for a definite number of years in succession, mineral deposits are not worked, and so on.
If the holder decides no longer to exploit the land, forest, water area or mineral deposits placed at his disposal, he may not sell, lease, or otherwise transfer it, but must return it to the administrative body which .has control over it.
Special permission is not required for the use of water for drinking or household purposes, for the gathering of firewood, wild fruits, berries or mushrooms for personal use, or for hunting as a sport (except on government reservations or commercial hunting preserves) or for amateur fishing, all of which are open to all citizens.
State Business Enterprises
The property operated by the state business enterprises is divided into two categories "basic capital" and "working funds", each with a different status in the eyes of the law.
Basic capital comprises buildings, machinery, tools and other productive equipment, means of transport, animals used for draught, productive and breeding purposes; and so on.
State business enterprises may acquire (build up or purchase) new basic capital only with funds assigned to them out of the government budget (central, republican or local, as the case may be). They may not acquire new basic capital out of their working funds.
The basic capital of a state business organization may not under any circumstances be mortgaged or pledged as collateral security. Nor can it be levied for the satisfaction of the enterprise's creditors.
The working capital of a state business enterprise consists of Its stocks of raw material, fuel, partly finished goods, finished goods and cash, as well as of all other property which does not form part of its basic capital.
Working .capital is assigned to an enterprise by the higher authority to which it is subordinated in quantity sufficient to enable It to carry out its production program (plan). It may employ its working capital any way it deems fit for the fulfillment of its plan; it may sell pledge It, or acquire other working capital, no special sanction from the higher authorities is required for such transactions.
The system of property relations established by the law and Constitution of the U.S.S.R., is based on the principle of harmonizing the interests of society as a whole with the interests of the individual citizen.
A brief summary of “Property rights of Soviet Citizens”, by M.S. Lipetsker 1946
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