Inner Party Crisis:

Rather we explain it by the fact that, under the guise of official unity, we actually have a one-sided selection of personnel, who can adapt to the views and sympathies of a narrow circle, and a one-sided direction of activity. [Emphasis added] As a result of the party leadership being distorted by such narrow considerations, the party has to a significant degree ceased to be that living, independent collective which is sensitive to the changes in living reality, precisely because it is connected with thousands of threads to this reality. Instead of this, we observe an ever progressing, barely disguised division of the party into a secretarial hierarchy and into “laymen”, into professional party functionaries, chosen from above, and the other party masses, who take no part in social life.

Party failure:

…it is the secretarial hierarchy, the party hierarchy which to an ever greater degree chooses the delegates to the conferences and congresses, which to an ever greater degree are becoming the executive conferences of this hierarchy. The regime which has been established within the party is absolutely intolerable; it is killing the independence of the party, replacing the party with a selected bureaucratic apparatus which functions smoothly during normal times, but which inevitably misfires during moments of crisis, and which threatens to become absolutely helpless when confronted with the serious events which lie ahead. [Emphasis added]

Fear within the party:

This is a fact which is well known to every member of the party. Members of the party who are dissatisfied with this or that directive from the CC or even a provincial committee, or who are plagued by doubts, or who have noted “to themselves” various mistakes, things out of line or disorder of some sort, are afraid to speak about it at party gatherings; even worse, they are afraid to talk to one another unless they consider their interlocutor to be absolutely reliable, in the sense of not being “talkative”; free discussion within the party has virtually disappeared, party public opinion has been stifled.

Scissor Economic Crisis:

We stand before the approaching break-down of the chervonets currency, which spontaneously turned into the basic currency before the liquidation of the budget deficit; we face a credit crisis in which the State Bank cannot, without the risk of severe shocks, finance not only industry and the trade of industrial goods, but even the purchase of grain for export; we face the cessation of the sale of industrial goods because of high prices, which can be explained, on the one hand, by the complete absence of planned, organizational leadership in industry, and on the other, by incorrect credit policy; we face the impossibility of carrying out the grain export program because of the inability to purchase grain; we face extremely low prices for food products, which are ruinous for the peasantry and which threaten massive cutbacks in agricultural production; we face the interruption of wage payments, which evokes the natural dissatisfaction of the workers; we face budget chaos, which directly creates chaos in the government apparatus; “revolutionary” means of cutbacks in drawing up the budget and new, unplanned cutbacks during its realization have gone from being temporary measures to a permanent phenomenon, which relentlessly jolts the state apparatus and, as a result of the absence of planning in the cutbacks – causes accidental and spontaneous shocks to it.

10th Congress, March of 1921, ban of party factions (who supported Trotsky), obsolete but still in effect by 12th Congress, April of 1923:

The situation which has developed is explained by the fact that the regime of fractional dictatorship within the party which unfolded after the Xth Congresshas outlived itself. Many of us consciously chose not to resist such a regime. The about-face of 1921, followed by Lenin’s illness, demanded, as far as some of us were concerned, a dictatorship within the party as a temporary measure. Other comrades from the very beginning reacted to it skeptically or opposed it. In any case, by the XIIth Party Congress this regime had become obsolete. [Emphasis added] It began to show the other side of the coin. The inner-party bonds began to weaken. The party began to wither.

A solution:

Of course, it would at first glance be easiest of all to resolve the question in the following sense: in view of the situation, there is not and there cannot be any place now for raising the questions of changing the party’s course, of placing on the agenda new and complex tasks, etc., etc. But it is absolutely clear that such a point of view would be a position of officially closing one’s eyes to the actual situation, since the entire danger lies in the fact that there is no genuine ideological or practical unity in the face of exceedingly complex domestic and foreign situations. [Emphasis added] In the party, the more silently and secretly the struggle is waged, the more ferocious it becomes. If we raise this question before the Central Committee, then it is precisely in order to find the swiftest and most painless resolution of the contradictions which are tearing the party apart, and to rapidly place the party on healthy foundations. We need real unity in discussions and in actions. [And therefore a repeal of the ban on factions. Emphasis added] The impending ordeals require the unanimous, fraternal, absolutely conscious, extremely energetic, and extremely unified activity of all the members of our party.

The fractional regime [ban on factions] must be eliminated, and this must be done first of all by those who have created it; it must be replaced by a regime of comradely unity and inner-party democracy.

A conference:

In order to realize all that has been outlined above, and to take the necessary measures to extricate ourselves from the economic, political and party crisis, we propose that the CC, as a first and most urgent step, call a conference of members of the CC with the most prominent and active party cadres, in order that the list of those invited include a number of comrades who have views concerning the situation which differ from the views of the majority of the CC. [A similar Extrication Conference should receive support today, as a yellow alert emergency. Emphasis added]