Krasnoshchyokov was removed from office in April, ostensibly because he had contracted tuberculosis, though the real cause appears to have been that local Bolsheviks objected to his leadership style. In December 1921, he was appointed Second Deputy USSR People's Commissar in the
People's Commissariat for Finance (Narkomfin), by Lenin, but against the objections of more left wing Bolsheviks, including the future Trotskyist,
Yevgeni Preobrazhensky, who threatened to resign if the appointment was confirmed. In January, Lenin sent a note to the
Politburo praising Krasnoshchyokov's "practical approach to financial matters" and insisting that the Politburo back the appointment "to the hilt". In March 1922, Krasnoshchyokov contracted typhus, and during his absence, his rivals at Narkomfin sacked him. This evoked a long letter from Lenin to
Molotov complaining that "We have harassed this man, who undoubtedly has brains, energy, knowledge and experience...We have done everything possible and impossible to repulse this highly energetic, intelligent and valuable worker" and insisting that he be appointed to the Presidium of
Vesenkha The appointment was confirmed by the Politburo in April 1922. He used the opportunity in November 1922 to create
Prombank, a new bank to promote trade and industry, leaving the state bank with only the regulation of money and credit, much to the annoyance of the Narkomfin. In 1922 the American journalist
Anna Louise Strong interviewed Krasnoshchyokov about the
New Economic Policy (NEP) and about the departure from
war communism. Krasnoshchyokov said: == Arrest and trial ==