===== PAGE 1 ===== THE [eld JANUARY 1957 NE IDEAS ON LIBERTY The Risk Within . . . . . . . . . Douglas MacArthur 2 “If We Behave Wisely” . . . . . . W. C. Mullendore 4 The Engineer's Obligation. . . . . . Ben Moreell nN Why Wages Rise 11: Pricing an Hour of Work . . . . F. A. Harper 13 How Poor the Farmer? . . . . . . . Herbert L. Schaller 22 The Morality of Capitalism . . . . . W. H. Chamberlin 24 World Invisible . . . . . . . . . Diogenes 31 Our Four Great Faiths . . . . . . . W.G. Vollmer 34 Equality Re-examined . . . . . . . Reginald Jebb 39 The Mathematical Manpower Shortage. . Henry E. Belden 42 Well, I'll Be Switched . . . . . . . F. A Harper 48 A Reviewer's Notebook . . . . . . John Chamberlain 55 Other Books . . . . . . . . . 58 fy THE FOUNDATION FLE FOR ECONOMIC EDUCATION, INC. Irvington-on-Hudson, New York ===== PAGE 2 ===== COAST FEDERAL SAVINGS Offers Savings Investors ® MAXIMUM RETURN on your investment with SAFETY, through progressive, yet conservative management — plus insurance on each account. ® AVAILABILITY of funds when needed due to high liquidity position. ® LEGAL INVESTMENT for trust funds. ® PROMPTNESS in all transactions assured by use of Air Mail. (We pay postage both ways). ® RESOURCES over $225 million, RESERVES over $21 million. ® VARIETY of accounts, Individual, Joint, Trust and Corporation. “LET'S GET ACQUAINTED” — Write today for this booklet and financial statement, to: : COAST FEDERAL SAVINGS, DEPARTMENT H, 9th AND HILL LOS ANGELES 14, CALIF. Member Federal Home Loan Bank—Federal Savings a and Loan Insurance Corp. “const FEDERAL SAVINGS JOE CRAIL, PRESIDENT ===== PAGE 3 ===== DID YOU KNOW? “Who owns Railway Express?’ the lady asked. “Well, Mrs. Jones,” the driver replied... ... “it is people just like you and This nationwide service is avail- Mr. Jones. Railway Expressstock able to some 23,000 communities. is held by 68 of the nation’s Because it serves as the express largest railroads but, actually, the department of each railroad, Rail- owners are the 850,000 stock- way Express cannot have any net " holders of these railroads. Rail- income or surplus. Every dollar of way Express, therefore, is one of revenueremaining after thededuc- America’s most widely owned tion of Express expenses goes to private enterprises.’’ those carriers as payment toward Of course, there is more to it their costs in hauling express. En- thanthat. Throughcontractswith joying no government subsidies, more than 400 additional private Railway Express must compete, enterprise carriers — rail, truck, on the basis of service provided, air and water— Railway Express with all other forms of transpor- makes available to the shipping tation, public and private. public a vast, coordinated 380,- Express has to be safe, swift, 000-mile transportation network sure. And fromthisconcept hasde- through one convenient, compre- veloped a system-wide tradition hensive service. of constantly improving service. For a free copy of an informative booklet, “The Truth about Parcel Post,” address The Public Relations Division RAILWAY EXPRESS AGENCY, INC. 219 East 42nd Street, New York 17, N. Y. A PRIVATE ENTERPRISE IN THE PUBLIC SERVICE ===== PAGE 4 ===== General Douglas MacArthur speaks . . . E APPROACH for the first time The almost incredible destructive- Wi history an era in which the ness of modern weapons upon civil industrial tools provided by science communities has brought to all and technology give promise to mankind the realization that mili- mankind of satisfaction of his tary force is no longer an exploit- basic economic and material needs. able method of settling interna- Poverty cannot be entirely abol- tional rivalries. The victor, if any ished, but the welfare of all man- such should emerge, would suffer , I , almost as greatly as the van- ! quished. : If this nation is ever destroyed, i he RISK | I unhesitatingly predict it will : i. not be from external force. Our i : { own internal hazards, the spon- taneous combustions arising from the accelerating complexities of : modern life‘in an ever-multiplying | community, are the ones which give rise to anxiety. They are too { numerous for me to attempt to enumerate, but surely one of the most dangerous of these is exces- kind can be raised. Tomorrow’s sive taxation and its sinister by- standards can make today look like product and offspring — inflation. a mere start. In the lexicon of government there It is not my purpose to attempt is no more grim and pertinent to conceal or minimize in the aphorism than Chief Justice John slightest degree the difficulties and Marshall’s warning as early as dangers that beset the national 1819 that the power to tax includes way. the power to destroy. Indeed, this The national dangers are both is the weapon that Karl Marx de- external and internal. Externally, clared was the vital one to dis- they are those incident to war. place the system of free enterprise But this contingency I regard as — the system on which our nation logically only a remote possibility. was founded — the system which 2 ===== PAGE 5 ===== 1957 THE RISK WITHIN 3 has made us the most prosperous the capitalistic system, and level people of all history. representative government to Reasonable taxation is, of sovietism. course, an essential of govern- Taxation has been the cause of ment; but when taxation is used more bloody revolutions in the as a social regulator, it becomes history of government than any a menace to freedom. When its other one provocation. It precipi- rate is so excessive that men work tated our own Revolution which month after month with all that resulted in the founding of the they earn going to government, it United States of America. The amounts almost to forced labor. It Boston Tea Party is still symbolic. practically reduces them for pro- The Biblical story of Christ’s re- tracted periods to something akin pudiation and expulsion of the tax to involuntary servitude. It is an tyrants from the temple is still a unwarranted assumption that a warning. Its excesses and idio- handful of men, centered in gov- syncrasies hang like a dark cloud ernment, largely bureaucratic over the destinies of those con- rather than elected, can spend the nected with this company and proceeds of toil and labor to every other company in this be- greater advantage than he who loved land of ours. ° oo ) creates the money. Excessive taxa- —— dom, can destroy initiative, absorb corporation, July 31, 1956. THE JANUARY 1957 « Vol.7, No. 1 { ) Additional copies, postpaid to “The Mathematical Manpower one address: Singie copy, 50c; 3 Shortage,” “How Poor the ) for $1.00; 25 or more, 20c each. Farmer,” and ‘‘World invisible.” Permission is hereby granted to Any article will be supplied in anyone to reprint any article in reprint form if there are enough A MONTHLY JOURNAL whole or in part (providing cus- inquiries to justify the cost of OF IDEAS ON LIBERTY tomary credit is given), except printing. The Freeman is published monthly by the Foundation for Economic Education, Inc., Irvington-on- * Hudson, N. Y. Anyone may receive the journal regularly upon written request; an annual subscription- donation of $5.00 or more is a suggestion—not a requirement. Accepted as controlled circulation publication at Irvington, N. Y. with additional entry at New York, N. Y. Copyright 1957, The Foundation for Economic Education, Inc. Printed in U. S. A. ===== PAGE 6 ===== Ie ) he h If We Behave Wisely = Ww. C. MULLENDORE Fala A skeptical appraisal of the con- excited discussion, consternation, cept that no harm may befall those and much organized, unorganized, whom the government controls. and determined, if not effective, opposition. Many in this audience Tor EXTRAORDINARY and far- will remember thé shocked amaze- reaching changes have occurred ment with which the New Deal in this century and particularly in measures enacted by the Hundred- the past quarter century is not a Day Congress of 1933 were re- matter of dispute. Insofar as the ceived by those who were aware argument about them continues, of their meaning. it is only as to what they mean — in which direction are they taking The New Deal us? In this past quarter century, And the Hundred-Day Congress we have experienced the greatest of 1933 was only the beginning! depression, the greatest war, the Thereafter, it is true, the Blue biggest and most prolonged boom Eagle of the Recovery Act, with in our history. More important its codes and absolute power over has been the alteration in our polit- labor and industry, was killed by ical, social, and economic institu- a decision of the Supreme Court. tions — in our cohesiveness, our be- But, in its stead, there was en- liefs, our self-reliance, and atti- acted a series of laws giving gov- tudes toward each other with re- ernment power over labor-manage- spect to our mutual rights and ment relations, hours, wages, obligations as fellow citizens and price-fixing, the farms and fellow human beings. farmers, money and banking, When. the great mutations in credit and income, rents and hous- our institutions were proposed and ing, and so forth — powers over made in the decade of the thirties, the income and savings and lives there were, as most of you can and livelihood of the people which, still remember, widespread and in toto, went far beyond the first Mr. Mullendore, Chairman of Southern California Edison Company, also is President of the California State Chamber of Commerce, Agriculture and Industry. His unofficial views here presented are from an address of September 1, 1956, before the Thirtieth Annual Sacramento Host Breakfast. 4 € ===== PAGE 7 ===== 1957 “IF WE BEHAVE WISELY” 5 Recovery Act. Then the Supreme cence in, even the enthusiastic en- Court which held the Recovery Act dorsement of, the great social rev- unconstitutional was designedly olution of the past twenty-three replaced by a Court, the majority years? What made wrong right? of whose minds “went along with The answer can be given in two the Chief Executive,” as he de- words: boom prosperity. manded. The American people are not so Yes, during the earlier years much interested in ideology as there was opposition from those they are in results. They believe who still believed in the Constitu- in a system which “produces the tion, in a free people, and strictly goods,” and they seem now to be limited federal government. And convinced that the new way of until World War II rescued the life does just that. Most business, experiment in unlimited govern- political, labor, and educational ment from its failure to produce leaders also seem to approve the recovery, the opposition which results and to rationalize easily the flared up now and then in the Con- conclusion that we are on the high gress, and in the protests of large road of enduring and ever-increas- groups of citizens, gave some ing prosperity. promise that the New Deal would not become the permanent deal. Then came the war —the war The new system is one, we are which 80 per cent of our people assured, which cannot fail be- did not want to enter, but which cause the government is in con- we entered just the same. With trol; it has “built-in,” safeguard- the war and the war powers thus ing stabilizers. “Wise and far- added to that shift of power to seeing” men, we are told, are both government which had already spending our money and manag- been accomplished, such opposition ing our fiscal, debt, industrial re- to the Revolution and such hope lations, and all other relations. as still existed that there might “They” are doing all this with be a restoration of limited consti- such wisdom that never again can tutional government, largely dis- there be a depression or even a Arguments for the New Way appeared. serious recession. If anyone dares eee » express a doubt, he is hit with Prosperity Silenced Opposition this clincher: “Why, ‘the gov- Now what was it that so effec- ernment’ doesn’t dare allow a de- tively silenced the opposition? pression, because if ‘they’ did, What brought about the acquies- ‘they’ would lose their office and ===== PAGE 8 ===== 6 THE FREEMAN January their power; and, you know, ‘they’ only the speed at which we are want to hold on to those.” traveling. They do not reveal the It is further emphasized that limitations, the weaknesses within we are now enjoying full employ- and external to the system, the ex- ment at the highest figure in his- haustion of reserve strength, the tory; the greatest gross national direction in which we are going, product; the greatest produc- or the perils of the road ahead; tivity; the highest wages and 2. Growth is not the equivalent highest disposable income; the of progress. Progress requires highest level of sales; the greatest balanced development of produc- of all capital expansion; the big- tion, population, consumption, and gest government expenditures, the like — and that we do not have; federal, state, and local (and we ~~ 3. Desire and need alone do not can be sure they will get bigger provide the means for their satis- and bigger) ; finally, here in Cali- faction; production of goods and fornia in particular, the size and services must come first instead the rate of growth of the popula- of being called forth by prior crea- tion, we feel, guarantee both a tion of debt or the printing of desire and a need for all we can money; produce. What more proof do we 4. Increased consumption, fi- want that the new system works nanced by a heavily disproportion- and is free from the flaws of the ate increase in debt and debt- old? money, is relatively short-lived and will not support long-term capital expansion; By way of answer, I submit for 5. The enormous public debt is your consideration the following a burden and not an asset; largely questions having to do with ele- it represents only destroyed wealth ments of our present prosperity and not real “savings”; True or False? structure. Will you not ask your- 6. American strength, like the selves privately and candidly, is strength of any nation, must be it true or false, that: measured by the sense of obliga- 1. The statistical indicators, tion and responsibility—the moral just referred to (gross national and spiritual vigor —of its citi- product, etc.), which are relied zens; and this strength is being upon as conclusive evidence of undermined by: “sound prosperity,” are like the a. The distintegration of human ~ figures on the speedometer of a relations through the conflict speeding automobile. They reveal. aroused by the disintegrating ===== PAGE 9 ===== 1957 “IF WE BEHAVE WISELY” 7 forces of racial, class, social, cluding murder on the highways; and economic prejudices and and the increase in mental ill- envy; health, with its evidence of a grow- -b. The growing reliance upon ing anxiety and frustration in a government and consequent population depending more and loss of self-reliance, self-dis- more upon the manipulations of cipline, and self-respect, as political power and influence well as respect for the rights rather than upon honest produc- of others; tion and performance of the per- c. The spreading doctrine that sonal obligations upon which all the majority has only rights rights must rest. and the minority only obliga- In the fall of 1953, Joseph tions; Dodge, then the Director of the d. The redistribution of wealth, Budget, in describing the situation the confiscation of savings confronting the Eisenhower Ad- through inflation, the declin- ministration when it took office ing per capita wealth, and the said, in part: constant shift of power from the people to government. The Federal Government has firmly established the policy of en- Grim Facts couraging citizen dependence upon it, I will not burd ‘th and in connection therewith, has will not burden you with sta- greatly increased centralization of tistics, but in considering the powers in government and control by truth or falsity of these questions, government of the affairs of all the we should face the grim facts of people.... the growing public and private The facts suggest we are in a debt (now too big for comprehen- costly trap of built-up dollar de- sion by the human mind); the mands on the government for do- mountainous tax burden with its mestic purposes, many of them made inequalities and stimulation of dis- mandatory by existing legislation, honesty; the serious and growing ©n which there have been imposed dilution of value of the dollar; the Staggering expenditures for our na- menacing burden of an unlimited tional security. The source of pay- . . ment is in taxes or in increased and unfunded social security pro- overnment debt gram; the ill-defined, uncertain, & ’ and growing American commit- The record-breaking peacetime ments in the international field; budget of $69.1 billion together the increase in both adult and with the appropriations for this juvenile crime and violence, in- fiscal year, made by the session of ===== PAGE 10 ===== 8 THE FREEMAN January Congress just concluded, when added to unspent carry-over bal- ances and new authorizations to obligate, now confronts the Ameri- can taxpayer with federal expendi- tures totaling $143 billion. Ap- parently we have not escaped from the “costly trap of built-up dollar demands,” nor from the policy of: encouraging citizen dependence upon the federal government! Tax Troubles Some eighty years ago, the Supreme Court of the United States in Savings and Loan Asso- ciation vs. Topeka (22 Law. Ed. 461) declared “to lay, with one hand, the power of government on the property of the citizen, and with the other to bestow it upon favored individuals... is nonethe- less a robbery because it is done under the forms of law and is called taxation.” Also in those days be- fore it became legal, and even re- spectable, to forcibly redistribute the earnings of some citizens in order to secure the vote and favor of others, the forgotten clause of the Fifth Amendment was as care- fully adhered to as is another clause today. I refer to the clause which says, “nor shall private property be taken for public use without just compensation.” Cameron Hawley in a recent speech published in the Saturday Evening Post of July 14, 1956, under the title, “Our Tax Laws Make Us Dishonest,” said: “What we have created is not a good cli- mate for the souls of men.” The same may be said of our present system and the prosperity structure which it has produced. And a prosperity structure which is not good for the souls of men is dangerous and will fail. False prin- ciples do not become right and are not sanctified by a period of boom prosperity! Our Responsibility Finally, to those who ask: Why discuss this disturbing situation? I respectfully submit that we have an inescapable responsibility to face facts as they are and not as we wish them to be! We occupy positions of leadership and influ- ence in our communities — some official and others unofficial. We are exerting an influence either for or against the order of things now existing. We are approving both by words and action the inflation, the debt creation, the new system under which our bosses in Wash- ington take the lead and run the main show for all of us. We pro- test when they slow down on spending, lending, or granting aid in our special interest areas. We ask their assistance in getting higher wages and shorter hours and .in price maintenance or the protection of our markets. We pro- ===== PAGE 11 ===== 1957 “IF WE BEHAVE WISELY” 9 claim to the world that we have a evitably, it leads to the disintegra- wonderful prosperity, under- tion of American free institutions, written and guaranteed by the the destruction of the liberty and foreign and domestic policies and eventual impoverishment of the program of our federal govern- citizens. ment. } I repeat that in this growing Since we endorse these policies crisis we have an inescapable re- and programs, and take credit for sponsibility. We cannot evade our the increased business which they responsibility by insisting that it foster, we cannot escape responsi- is a job only for the politicians and bility for untoward results. We that we are exclusively occupied should remember who got the running our own office or business blame in 1932 and 1933 —the or farm. We are in on it — whether “money-changers in the temple,” we mean to be or not. We are en- the “lords of business,” “princes of dorsing full government interven- privilege,” the ‘false leaders” tion, not only through our support whose “greed and speculation mis- of candidates for public office who led the people and caused the dis- advocate these policies, but also aster of the depression.” through our active participation : in programs which implement policies, such as full employment, Yet, where is there effective op- government lending and manage- position in this hour of peril? The ment of money, credit, and other overwhelming majority of both economic controls which have re- major political parties seems to ap- placed the free market. prove the present trend. This is interpreted as popular approval What Can We Do? of the dominant policy — that the . We can, at least, as individuals, federal government should be cease drifting with this current vested with whatever power is nec- which is carrying us toward so- essary to attempt to maintain full cialism. We can wake up! We can employment and an ever-increas- cease joining in the chorus: “Isn't ing standard of living for the our prosperity wonderful?” We voters. To this overriding but can use our influence, and insist futile aim and purpose, the life, that we prefer to return to the liberty, property, and pursuit of ways of free men. We can, as in- happiness of the individual is now dividuals, and in our groups and subordinated. Do we quite realize associations, heed the warning where this policy is taking us? In- voiced at the recent Republican No Effective Opposition ===== PAGE 12 ===== 10 THE FREEMAN January Convention by one of the wisest fore, we now find it difficult and and most farseeing statesmen impolitic to “behave wisely”; but America has ever produced, former such is the price of delivery from President Herbert Hoover, when our historic dilemma! This gen- he said: “If you temporize with eration is charged with the preser- Socialism in any of its disguises, vation of our free institutions. you will stimulate its growth and Those institutions are in grave make certain the defeat of free peril. men.” We have the strength, the cour- Addressing a recent industrial age, and intelligence for a return conference under the auspices of to sanity — to the true road of re- the State Chamber, Dean Grether, covery and progress. It is not too of the University of California, late to try, and it is utterly un- told us of brilliant prospects and worthy of our heritage to admit potentialities for growth and prog- defeat and drift into socialism and ress in California and the West its slavery. If we are to turn aside during the next ten or twenty from our present course, we must years. But Dean Grether prefaced again and again remind ourselves and conditioned his prophecy with that the American way is not the this powerful and significant easy way of drift and dependency; phrase: “If we behave wisely.” but that it is the way of constant, It is that phrase which I would cooperative striving for balanced leave with you as expressing the progress and the preservation of great fundamental challenge con- our free institutions — while main- fronting us. As perhaps never be- taining our “Freedom under God.” eT OREAST EY LR | Our Duty in Life Insurance THOSE OF US in the life insurance business must grasp the initia- tive in this country in leading the fight for sound money. Millions of American citizens have entrusted their life savings to us for safekeeping. We have a legal obligation simply to return to them the number of dollars promised, but we have a moral obligation to use all our influence to see that the dollars promised have the purchasing power expected. We cannot discharge our responsi- bilities by sitting idly by should government adopt policies which rob policyholders and annuitants of their savings. RAY D. MURPHY, Chairman of the Board, The Equitable Life Assurance Society of the United States. From an address to the National Association of Life Underwriters, September 26, 1956. ===== PAGE 13 ===== psa Joeauac TRIG TYPE LOG LOL RULE fw FNS eT CAIN ITI 2 L aids 8, . fk FIR AY 3 bed A Ye = Borneman haheeditinaotmaduntodutt om todd debadontond 2 2 leestver dd diteonbo. Toned dub S fort dudalen omtdidodadededi 1 Loko E08 a htt ES Dts dS a Lia 1 S21 [) 7 ) 8 ? 8 preeprp a U1 A SEALY LL Masti le: MR a i sae SR (Rs Pale un m+ NR WAR UATE we ol ar Lan ae eam mane 3 RIT b WA RU HA A RRR SR Kn vs aed FEE Fn i wt i BEN MOREELL AVING SPENT the last half when Americans looked upon their century in the pursuit of en- government as their servant whose gineering knowledge and the prac- duties are or should be restrained tice of engineering, I venture to to the primary functions of pro- offer some observations on the tecting the life, liberty, and hon- engineer’s obligations to society estly acquired property of every and to his fellow man. individual. As is traditional in the In these days of ambitious striv- master-servant relationship, the ing for political preferment, it is people were morally bound to sup- customary to bid high for the port the government; but, in turn, voters’ favor. Candidates hold the government was subject to the forth tempting bait in the form of' people’s commands. promises of government ‘“hand- Today, as we listen to eager as- outs” in return for votes. Any pirants for public office, we must reference to the obligation of citi- conclude that this old concept has zens to preserve and defend the changed. It appears that many of . Constitution of the United States, our people now believe that the or to their duty to strengthen the government is obligated to support basic principles embodied in our them and, at the same time, that it Declaration of Independence is should have authority to tell them conspicuous by its absence. And how to conduct their personal eco- were a candidate to couple his nomic and social lives. promises of “something for noth- Does this state of affairs have ing” with an explanation that, special significance for engineers? since government produces noth- 1 believe so. No other profession ing, it must take from someone has profited more from the work else that which it gives away, he of those who have gone before would surely raise grave question than have engineers. Starting with as to his sanity. the invention of the wheel and This appears to be an inversion proceeding through the long ages of true values. There was a time which culminate in our present era Admiral Moreell, Chairman of the Board of Jones and Laughlin Steel Corporation, was wartime Chief of the Bureau of Yards and Docks and Chief of Civil Engineers of the Navy. 11 ===== PAGE 14 ===== 12 ) THE FREEMAN January of jet propelled aircraft, the rec- governments upon the rights of ord of material progress consti- their own citizens. If, overnight, tutes a revealing account of the all governments throughout the debt which we engineers owe to world were compelled by some our intellectual and professional supernatural power to confine forebears. ‘their activities solely to the pro- It is an established fact that the tection of the lives, liberties, and most productive periods of history honestly acquired property of their were those when men had the own citizens, the world would be greatest measure of individual transformed. We would enter upon freedom. During those periods a period of unbelievable produc- they had not only opportunity for tivity and prosperity. Even more _personal development, but also in- important, all international ten- centive for production, since they sions would disappear. It is only were permitted to retain a reason- when governments coerce their able share of the fruits of their citizens into supporting their am- labor without fear of confiscation bitious schemes on the interna- by private or public agencies or tional scene that conflicts arise and officials. wars ensue. : In general, engineers are prone to be more concerned with the dis- - Since engineers are concerned covery of facts than with the dis- with harnessing the forces of na- covery of the meanings of those ture to serve the needs of man, it facts as they apply to the develop- follows that they have a duty to ment of mankind. My plea today is foster the establishment of condi- that we engineers, who are so tions conducive to this result, i.e., heavily indebted to our intellectual conditions which guarantee that forebears, resolve to discharge that man’s God-given rights to life, debt by contributing to the ad- liberty, and the products of his vancement of knowledge and the honest labor are not impaired. This establishment of the climate which can be accomplished only if engi- permits such advancement, the cli- neers participate in the processes mate of individual freedom. of government, vigorously and in For from freedom, we can de- important degree. . rive peace. And with freedom and Today the greatest threats to peacewe can go forward to achieve personal liberties arise, not from life's richest spiritual and material aggressions by foreign govern- blessings for all people, every- ments, but from encroachments by where. Ce ee "The Climate of Freedom ===== PAGE 15 ===== WHY WAGES RISE: 11. PRICING AN HOUR OF WORK F. A. HARPER In earlier articles in this series, at- unions, with all their political and tention was focused on the fact that other power, cannot veto the iron the general level of real wages is de- ceiling that production sets over real termined by what is produced; that wages. inflating pay beyond this point raises In this article attention will be prices but does not raise the worth turned to the problem of pricing of the wage in buying power; that one’s labors in the market. Ia > “ es msn SERN [Er HE lone pioneer’s desire for duces a specialty, selling most of some meat, some wheat, or a it to many persons and buying his log cabin is the incentive which varied needs from many other per- drives him to produce. Antici- sons. pating his future wants, he pro- Even so, the over-all situation duces in advance, like a squirrel is the same as for the lone pioneer which gathers and stores nuts for to the extent that no more can be winter. And in anticipation of bought than is produced. Despite years of future use, he makes him- the fact that some goods and serv- self some tools to aid in his labors ices are exchanged for others, and in the enjoyment of living. and despite the fact that money Then having produced these may be used to facilitate these ex- things, the pioneer is his own sole changes, what is bought still equals market. In this situation there is what is sold. Just as in one ex- no pricing problem because there change the buying equals the sell- is no money and no exchange. ing because the same item sold by Nothing remains unsold as a re- one person is bought by another, sult of the seller setting his price so likewise for the total of all trade too high. in a complex economy, all buying . equals all selling. Production Creates Own Market | And this leads to the unavoid- But we are not lone pioneers. able conclusion that production We live, instead, in a complex creates its own buying power in a economy. A person usually pro- free economy. Sales equal pur- Dr. Harper is a member of the staff of the Foundation for Economic Education. 13 ===== PAGE 16 ===== 14 THE FREEMAN January chases and purchases equal sales, wanted of each thing, and no more, in total for all trade as for a single insofar as is possible. The function trade. Only if the market is not of price is to discourage production free, only as freedom to trade is of unwanted items and to encour- interfered with, is this not true. age production of what is wanted, to the extent that wants can be anticipated and production plans The function of a free price is can be carried out. to accomplish in a complex economy The lone pioneer has his own of exchanges what the lone pioneer troubles in this respect, of course. accomplishes in his separate ex- Perhaps the fishing is not as good istence — the production of what is as he had expected, or the weather The Function of a Free Price EFFECTS OF PRICE FREEDOM If the price these quantities will be is fixed at wanted offered traded 4 wv Wr 50c | |00000|8 ac (00 [0000 [80 Yee TG) 100 (000 [08 Me 0c (1000 [00 [38 toe [10000(0____|8 SHORTAGE ===== PAGE 17 ===== 1957 WHY WAGES RISE 15 not good for the corn. Perhaps in 2. More of a thing will be winter he changes his mind about produced in anticipation of a high what he wants, wishing he had price than of a low price, progres- provided more venison and less sively. corn. Or perhaps his wife wishes From these two rules it can be the cabin had been fixed up a little, seen how the quantities available even if it had meant less hunting. and the quantities wanted operate Or perhaps too much food was like the two ends of a seesaw. A stored and some of it spoiled. What rising price pulls down the does he do then? He just blames ‘“wanted” end and pushes up the himself for his lack of foresight “offered” end. A falling price pulls and quickly adjusts as promptly down the “offered” end and pushes as possible so as to go on with pro- up the “wanted” end. duction and living. Only when the seesaw is on the } i. level, at the point of the free mar- Adjustments Facilitated ket price, will there be equality In a complex economy, similar between what is wanted and what events occur. But one person can is offered. And this is the only sort blame another more easily for not of equality that should ever be having foreseen the weather, or given any economic merit. When for the change in his wife's wants, individuals are left alone, free to or something of the sort. But the buy and to sell what they wish at objective of everyone in a complex the price determined solely by the society should be the same as if owner-traders of each item, this he were a lone pioneer — to adjust equality will operate just as water as promptly as possible and go on seeks its own level. No superplan with production and living. is needed to force prices either up That is the task performed by or down to this level. Price will prices that are free. The accom- find its own level through the in- panying chart on the effects of numerable decisions of individual price freedom shows how this takes buyers and sellers. place, and how an unfree price What any outside force does to prevents adjustments in economic prices is to push them either above living. or below this point of equality. The The two simple ideas behind agent who applies the force is al- this chart are these: ways an outsider to the deals of 1. Less of a thing will be trade, someone who owns neither wanted at a high price than at a what is being sold nor what is be- low price, progressively. ing traded for it. He is an economic ===== PAGE 18 ===== 16 THE FREEMAN January interloper, with or without official Wages Are a Price title of some sort. Forcing the price above the equality point creates surpluses. The higher the price is pushed, the greater the surplus. And forcing the price below this point creates shortages — more and more short- ages as the price is pushed down more and more. Two forces operate to create a surplus as prices are forced above the free market point — consumers want less and producers bring out more. And conversely, these two forces both operate to create a shortage as prices are forced down. The purpose of discussing the function of price in this detail is because a wage is a price, too. It is the price of doing work, just as the price of a bushel of wheat is the price for that embodiment of economic service. In both instances, the owner — in one case the owner of the wheat and in the other case the owner of his own time and ef- fort — is entering the market with something to sell. And buyers who want either the wheat or the work enter the market to buy and thus satisfy their respective wants. The laborer as a person is not a Trade Is Maximized commodity in either instance, but the time of one and the product of the labors of the other are items of sale — both in a like sense. A worker may work for himself producing some product he sells on the market. Or he may sell his pro- ductive services to another person who in turn sells the product on And finally, as to the function of a free price, it will be noted that trading will be greatest at the equality point, a free price. Either above or below that point trading is lessened, either because things are not wanted at-a higher price or because they will not be pro- duced and made available at a the market. Or he may work at lower price. some task like that of a household So if we accept the fact that eco- servant. . : nomic welfare is at its best when Since wages are a price, they are willing trading is at its greatest, subject to all the rules of prices and we must also conclude that eco- Pricing, the same as anything else. nomic welfare is greater at the All that has been said about the free market price than at any other function of price applies to wages point. If prices are forced away the same as to wheat. There is a from the point of the free price in point of equality at the free market either direction, that destroys eco- price where the supply of labor and nomic welfare. the demand for labor find a balance. ===== PAGE 19 ===== 1957 WHY WAGES RISE 17 And there is no other point of price should be set for it, and start wage-price where this is true. selling at that price. If at the end As wages are forced either above of the market day you have some or below the free market point, corn left unsold, you will know it there will be created either a sur- was priced too high. And if you plus or a shortage of labor. And could have sold more at the price there will be less employment you set, you know that it was either above or below the free priced too low. How else could you wage point — less labor traded —to know for sure where the right the extent that higher wages dis- price was? Note that this has courage those who might want to nothing whatever to do, precisely, employ help, whereas lower wages with what your wife — the book- discourage people from wanting keeper — said it had cost you to available jobs. In one direction produce the corn —a figure that from the free price, employers of- might be above or below the free fer fewer and fewer jobs; in the market price. other direction, fewer and fewer It is the same with selling your persons want jobs. labor. If other employers want you at the price you are getting, or perhaps more, your price on your Bargaining over wages should services'is too low. If, on the other have no other purpose, in terms of hand, nobody wants you at the economic welfare, than to find the price you ask, your price is too free market price for the labor in- high. And here as with the price volved. For that is the only price of sweet corn, this figure of a free- of labor where there is economic price wage for yourself has noth- equality. It is the only price of ing to do with the cost of produc- labor where employment will be at ing you; it doesn’t even have any- a maximum. thing to do with your cost of living, How can one know whether the which you adjust to your income free market price has been found? rather than vice versa. So far as I can see, this can be Bargaining for a Wage judged for sure only after the fact, Unemployment on the basis of the consequences. When wheat is priced above the Let us first look at the pricing of free market level, the accumulation some other product. that is unsaleable at that price is Suppose you are taking your called a surplus. sweet corn to a consumer market When the comparable situation to be sold. You guess where the arises among the working force of ===== PAGE 20 ===== 18 THE FREEMAN January a nation," we call it unemployment. about one-third of the “gainfully This refers to the labor — perfectly employed” of this country were at good labor — which is going unsold that time “unemployed.” He took a at the wage-price. job washing dishes in a restaurant I would define unemployment as at the wage being offered. He con- involuntary leisure of a person sidered the United States in the who is willing to work at the free early thirties to be a land of oppor- market price. tunity. The only way there can ever Jouvenel would probably say, really be a surplus of labor, un- with some justification, that if I wanted at the price, is by some sort were to decline to work at the free of force being used on wages to market level of wages — whether keep them above the free market under the pressure of my govern- price. It couldn’t happen otherwise. ment, as in the thirties, or under For it seems fair to say that if I the pressure of the labor union — 1 don’t want to work at the best price should more accurately bedescribed the highest bidder for my services as suffering from power-enforced is willing to offer me, I am merely leisure rather than unemployment: preferring idleness to work. And if For voluntary lack of work is not I thus prefer idleness to work, I involuntary leisure — not unem- am not really an unemployed per- ployment as I have defined it. son. My situation is best described Despite this, however, we shall by saying that employment is just be using the term unemployment not an object of my yearning, suf- hereafter in the conventional sense, ficient for me to merit the use of to refer to persons among the nor- the label “unemployed.” mal labor force who are not, at the To illustrate differing ideas time, working. about this problem of unemploy- ment, let me cite one incident. The The Demand for Labor French scholar, Bertrand de Jou- The demand for labor is not a venel, once told me of his coming to fixed thing. There is not an un- the United States for the first time, changing number of persons in the early thirties. He had heard wanted for work. The number de- of the tremendous unemployment manded depends on the wage. I do here, and was greatly concerned not, for instance, happen to employ about his future; for when he even one person around my residen- landed in New York, he had only tial property. The price of labor eleven cents in his pocket. Yet he available there is too high for my quickly found work, in a land where need of work to be done. But at a ===== PAGE 21 ===== 1957 WHY WAGES RISE . 19 WAGE LEVEL AND UNEMPLOYMENT Demand Elasticity of 3 EMPLOYMENT INDEX (Full Employment = 100) 150 / 7 4 T_ FULL EMPLOYMENT UNEMPLOYMENT ) " | 1 1 1 i 1 1 ] ] 150 100 50 WAGE INDEX (Free Market Wage = 100) lower price for doing work, I would noted students of this subject who hire one person — at a still lower have studied it carefully — Douglas price, perhaps two persons; then in the United States and Pigou in three; and so forth. Britain — both arrived at similar Some commodities have a type of results.! A consensus of their con- demand which we call “unity,” clusions puts the demand for labor where one per cent more of the at something like three or four to commodity is wanted after the one. That is, a decline of one per price is lowered by one per cent. —— And vice versa. Douglas, Paul H. The Theory of Wages. New York: Macmillan, 1934. p. 501. Apparently the demand for labor Pigou, A. C. Theory of Unemployment. is not of this one-to-one ratio. Two New York: Macmillan, 1933. p. 97. ===== PAGE 22 ===== 20 . THE FREEMAN January cent in wages would uncover new level one wants to consider, a one jobs for three or four per cent more per cent rise in wages will reduce work. And vice versa. employment by three per cent. This idea is of tremendous im- Wages about ten per cent above portance to economic welfare, es- the free market price would mean pecially under conditions which unemployment of about one-fourth threaten a depression. I do not of the working force. know for sure that this three or If wages were to go up about four per cent is the correct figure. twenty-six per cent, it would unem- But whatever the exact figure, it ploy about half the working force. works in the same way. The differ- How can we tell whether the ence is only in the rate of response, price of work at a given time is too in new jobs available at differing high? All we have to do is to look wages. at the unemployment figures, as- Let us take these Douglas-Pigou suming the figures to be accurate. figures, leaning a bit on the con- Or one might ask people who are servative side of their conclusions. not working whether they have Let us say that the figure is three turned down jobs at the price of- per cent. What would this mean fered, or whether they are out of when applied to real life? work because they couldn’t find any jobs at any price. Moving in the opposite direction The accompanying chart of the of wages below the free market wage level and unemployment price (rightward from 100, on the shows how unemployment and the base scale) results in the opposite wage level are related on this three- tendency. More and more people to-one basis. are wanted for work. But since At the free market wage of 100 there is full employment at the free (base scale) there is full employ- market wage, reductions in wages ment — no unemployment. Every- from that point can cause ‘“nega- one who really wants to work has tive unemployment” only under a job. ’ special conditions. New persons * Now assume that wages are tobe not normally in the working force forced above the free market level may be pulled into jobs at a wage (moving leftward from 100, on the below the free market point if they base scale). Employment declines can be induced to do so under the — unemployment increases —at a urgency of war, or something like rapid rate, according to the factor that. of three. Starting from whatever Overfull employment seldom Three to One ===== PAGE 23 ===== 1957 WHY WAGES RISE 21 happens except in wartime, for two ployment is not exceeded, accord- reasons. One reason is that wages ing to the newly revised statistics. tend quickly to bounce upward to Such is the problem of pricing the free market point, there being work in the market for labor. Such no potent and effective force in the is the function of freedom in nation to hold them below that wages. * oo point for long. This is because E— wage earners are voters, and they In the next and final article in do not form unions to keep wages this series, these principles of pric- below the free market point. ing work will be tested in real life The other reason why “negative experiences. They will be tested unemployment” does not last Jong against some historical experience, is that the labor statisticians soon including the so-called business conclude that their count of the cycle. They will be appraised from working force must have been the standpoint of the welfare of wrong before. So they revise their those in the labor force, of the na- figures in such a way that full em- tion as a whole. 09% DR. HARPER'S series of articles h —to be concluded in the February Freeman Y — is now available as a book of 128 pages, including tables, charts, and a comprehensive index, all in large clear type. $2.50 cloth; $1.50 paper; quantity prices on request. \ THE TWELVE CHAPTERS ARE: 1. Labor Unions 7. Contracting for Progress 2. Productivity 8. The Cost of Being Governed 3. Dividing the Pie 9. Losing Wages Through Fringe Benefits 4. Tools To Harness Energy 10. Leisure and the Better Life 5. Doing What You Can Do Best 11. Pricing an Hour of Work 6. The Lubricant for Exchange 12. Riding the Waves of Business The Foundation for Economic Education, Irvington-on-Hudson, N.Y. ===== PAGE 24 ===== How Poor the Farmer? HERBERT L. SCHALLER GRICULTURAL income may Let’s compare them for a mo- be down — but it is not on the ment. verge of disaster. Farmers may be Perhaps one basic difference is feeling the pinch — but they are the fact that these other business- not on the edge of bankruptcy. men compete directly with others Some farmers have gone broke; in their field on a product basis. others will. But can you name any They buy and sell essentially the industry where people go into busi- same items in many instances, and ness for themselves that some of make their profit by better mer- them don’t fall by the wayside? chandising, greater efficiency, and Amid all this din and noise over volume. the farm problem by those who The farmer, on the other hand, would act the role of savior, one competes almost entirely in his pitiful fact remains: It is a sad field on an efficiency basis. He commentary on our intelligence stakes his profit on the fact that he and our great agricultural indus- can produce better than others at a try that we have allowed the lower cost per unit, and thereby farmer to become a mere political profit at the market. pawn in a game played primarily The end result is that both must by those who have a selfish interest rely on efficiency of operation to in the outcome. give them the profit they need. First of all, who is the farmer? But what happens in farming? Primarily, he is a businessman. In this business every effort is He is not much different from his made to keep the inefficient pro- friends and neighbors who run the ducer still operating. And whom do local grocery, furniture, clothing, we penalize? The good, efficient, or other community store. progressive farmer. ns —— Mr, Schaller is Editor of Better Farming Methods. This article is from an editorial in the April 1956 issue. . ) . _ Pe PEN. “ia, PE ===== PAGE 25 ===== 1957 HOW POOR THE FARMER? 23 These “friends” and “wise coun- happier and better off financially selors” offer the farmer everything in other occupations. Would any- from high supports, to cheap one argue the fact that we should money, to government aid, and have as many other small busi- what have you. nesses, such as grocery stores, as And his counterpart, the small we once had? businessman? When he fails, he Isn’t it about time that we recog- passes from the scene with hardly nize that we may have been doing a ripple. He becomes a victim of the farmer an injustice through his own inefficiency and seeks a liv- our efforts to be concerned about ing elsewhere. his every welfare? I can’t recall a subsidy for an in- Let’s be leaders enough to recog- efficient groceryman. I can’t recall nize the fact that the farm problem frequent and periodic outbursts of today has become more political oratorical fire echoing in the halls than agricultural. It has its roots, of Congress over the plight of such not in the over-all welfare of the a man. farmer, but in the pot of politics. Isn't it about time we recognized Then let’s be leaders enough to the fact that one of the basic prob- admit this fact and concern our- lems facing agriculture is that of selves with correcting it. too many farmers? The end result will be greater Such a statement inhuman? Not benefits to the farmer and the in- at all! Many of them would be dustry of agriculture. oo Freedom in Trade THE LONG RUN ANSWER for Canada may be to reduce tariffs and to work towards a greater measure of freedom in trade which will permit our potential customers abroad to earn the necessary dollars for the purchase of our wheat and other grains, through the sale of their own goods to this country... It is not enough to have a high quality product and to assume that buyers will even- tually have to come seeking it. It must be to their buying advan- tage to do so. If we can provide that advantage we shall have less to fear from the somewhat unorthodox methods which others are now employing and about which we are so critical. From the October 24, 1956 report of the Searle Grain Company, Ltd.,, Winnipeg, Canada ===== PAGE 26 ===== The Morality of Capitalism: JN A AA A ort ae YH Sl Minar = TA A A Se ware bem SAC nee a A SAY AR A ban aman an ECONOMIC INDIVIDUALISM = FREEDOM = ALL MORAL VALUES. s - mn re mars 3 ms Lees “vm — Ata, ron rns sem me re memes Aen ero) reves © a ns a a Sn et + ym wri are em re - WILLIAM HENRY CHAMBERLIN HERE is a widespread belief Influential publicists like R. H. that capitalism, or economic in- Tawney and Harold Laski tried to dividualism, while it may be neces- dispose of economic freedom with sary, is morally somewhat disrep- pejorative epithets. Tawney spoke utable. This has found reflection in of “the acquisitive society.” Laski the pronouncements of religious characterized historic liberalism— bodies and of individual religious diametrically opposed to what has leaders. There are fortunately not passed for liberalism under the many ministers of religion who New Deal in its economic assump- disgrace themselves and their pro- tions—as “the philosophy of a busi- fessed faith as Christians by en- ness civilization.” The true inspi- dorsing the bloodstained record of ration for historic liberalism came the atheistic Soviet Union. from faith in human freedom and But socialism under such beguil- in Locke’s great trinity of natural ing disguises as “social action,” rights: life, liberty, and property. “the social Gospel,” “humanitar- Whereas continental socialists ianism,” and the like has made were generally indifferent or ac- considerable inroads in church tively hostile to religion, the Brit- thinking on both sides of the ish Labor party has always in- Atlantic. The conviction that capi- cluded a considerable number of talism is contrary to religion and professing believers, especially in ethics was a strong factor in the the nonconformist churches. They, rise of the British Labor party and like some of their sympathizers in "its postwar ‘implementation of a the United States, tried to infuse far-reaching socialist program, some religious and ethical content which has beén only slightly di- into the materialistic dogmas of luted by the conservatives. Karl Marx. Mr. Chamberlin has examined the evils of collectivism at first hand and is known as author of numerous books, lecturer, contributor to the Wall Street Journal and many nationally known magazines. . 24 ===== PAGE 27 ===== 1957 THE MORALITY OF CAPITALISM 25 Religious warrant was invoked surprised them still more was that for communism or socialism by there were no armed guards, such pointing to such examples as the as have been found necessary in equal sharing practiced by the Soviet collective farms to prevent early Christians or the dedicated the exploited peasants from steal- life of St. Francis of Assisi and ing their own grain. others who deliberately embraced A free economy is in no way a life of poverty in order to serve hostile to the man who, as the fa- their fellow men. mous naturalist, Agassiz, once said Such examples, however, con- of himself, has no time to be rich. fuse the issue. Under a free econ- Such men, thinkers, scholars, omy, which always goes hand in scientists, are its pride and glory hand with free political institu- and enjoy opportunities for de- tions, no one is denied the right velopment and expression which to practice personal self-denial or they would never possess under to engage with others in schemes any form of controlled economy. of communal living. Paradoxical It may also be noted that many who as it may sound, an idealistic com- have acquired wealth under a free munist can live up to his faith economy have given away, wisely much more easily in a capitalist or unwisely, in one form or an- society than in the Soviet Union other, most of what the tax collec- or any other country ruled by com- tor has allowed them to keep. munists. For communism is now an en- freedom Comes First forced system of hierarchical in- The issue is not over the right equality, maintained by police of the person as an individual or state methods. There is no tolera- as a member of a group acting tion in communist countries for under some religious or ethical the religious impulse which has sanction to spurn wealth and live been strongest in promoting volun- simply and austerely. The issue is tary association of groups of men whether there is something in- and women in dedicated com- trinsically immoral in the capital- munities. ist system and whether morality When Soviet agricultural ex- would be advanced by the reshap- perts visited a kibbutz, or com- ing of this system along socialist munal farm settlement, in Israel or communist lines. The answer to they were amazed to find far more both these questions is an emphatic equal sharing than was customary No. : in collective farms at home. What The first condition of a moral ===== PAGE 28 ===== 26 THE FREEMAN January order is freedom — the opportunity provoked by the insistence of the of the individual to choose con- British government on levying an sciously and voluntarily between excise tax without the authority good and evil. And freedom, in of the representatives of the turn, has always been associated American taxpayers. with the right of the individual The Declaration of Independence freely and legitimately to own, charges King George III with “re- possess, and bequeath property. peated injuries and usurpations, One might paraphrase a famous all having in direct object the peroration of Daniel Webster's to establishment of an absolute read: “Liberty and property, one tyranny over these states.” and inseparable, now and forever.” And violations of property The emergence of Western so- rights have a prominent place in ciety from the arbitrary rule of this historic charter of American monarchs and privileged feudal liberty, along with infringements lords into states where the govern- of the political, legal, and personal ment functions are strictly limited rights of the colonists. So one finds by the rule of law went parallel in the list of grievances which are with the vindication of the right held to warrant separation from of the individual to acquire and Great Britain: own property. This issue looms He [the King] has erected a mul- large both in the British CivilWar, titude of new offices, and sent hither which ended the dream of an abso- swarms of officers to harass our peo- lute monarchy functioning through ple and eat out their substance. a royal bureaucracy, and in the Cutting off our trade with all parts American Revolution. Mention the of the world. British Civil War and one thinks Imposing taxes on us without our of one of the parliamentary consent. leaders, John Hampden, who re- fused to pay an illegal tax, “ship money,” and later lost his life in The men who affixed their names one of the battles and skirmishes to the Declaration of Independ- which finally gave the victory to ence, pledging “our Lives, our For- Parliament over the Crown. tunes, and our Sacred Honor,” un- “No taxation without represen- derstood very well the close, in- tation” was one of the slogans of separable connection between the the American Revolution; one of right of property and the other its more picturesque early epi- natural rights of man. It was per- sodes, the Boston Tea Party, was haps an accident that Locke's Security of Property ===== PAGE 29 ===== 1957 THE MORALITY OF CAPITALISM 27 formula of “the natural right of property be put in the hands of those life, liberty, and property’ is modi- who have no property, France will fied in the Declaration of Inde- find, as we have found, the lamb pendence to “certain unalienable committed to the custody of the wolf. rights . . . among these are life, --- Lhe nation which will not adopt liberty, and the pursuit of happi- 2" equilibrium of power must adopt ness.” a despotism. There is no other al- But, as is evident from reading ternative. the Federalist Papers and from other writings of the Founding Fathers, most of the leaders of In the Constitution, which still the American Revolution would stands as the sheet anchor of the have subscribed to Locke’s view American ideal of liberty under that the security of property is law, although it has been sub- “the great and chief end of men’s jected to some severe strains and uniting into commonwealths.”’ stresses in the last quarter of a John Adams, perhaps, spoke with century, one cannot find a line that clearest voice on this subject: would authorize the leveling con- The moment the idea is admitted ception of equality, enforced by into society that property is not as the power of government au- sacred as the laws of God, and that thority. The Declaration of In- there is not a force of law and pub- dependence asserts that “men are lic justice to protect it, anarchy and created equal”; but the authentic tyranny commence. American idea is that this equality And in discussing the French is an equality only of opportunity, Revolution, about which he had the right of every man to go as far almost as many reservations as as his character, industry, and Burke, Adams again emphasized ability will carry him. It emphat- the double idea that respect for ically is not that everyone should property is a fundamental condi- go equally far, with artificial tion of liberty and that only a handicaps for the more capable government of limited and divided and industrious, and unlimited powers can avoid the danger of state aid for those who lag be- lapsing into tyranny, either of an hind. There is no warrant in early individual, of the mob, or of an American political thought and oligarchy: legal enactment for the practice of Property must be secured, or Pillaging the thrifty for the bene- liberty cannot exist. But if unlimited fit of the thriftless. or unbalanced power of disposing Thomas Jeffersoh would prob- False Banner of Equality ===== PAGE 30 ===== 28 THE FREEMAN January ably have been called a Leftist, if spring for a material development the term had been known in his unmatched in history; it also pro- time. But, as his correspondence moted morality by leaving the in- shows, he fully agreed with the dividual, subject to the restraint conception of "a natural aristoc- of the law, free to make his choice racy, as put forth by his political between good and evil. opponent, John Adams, in the fol- lowing words:’ As Others See Us. There is a voice within us, which The most brilliant, lucid, and seems to intimate that real merit discriminating foreign visitors to should govern the world, and that the United States, Alexis de men ought to be respected only in Tocqueville and Lord Bryce — the proportion to their talents, virtues former observing America in the and services. . . eighteen thirties, the latter near Few men will deny that there is a the end of the century — both, on natural aristocracy of virtues and DPalance, found the moral fruits of talents in every nation and every the American experiment good, party, in every city and village. although both were keen and per- ceptive as to flaws and weaknesses. Lord Bryce, viewing America with the background of a widely trav- J efferson’s agreement with this view is expressed in a letter to Adams from Monticello, dated eled Briton, devotes a chapter to October 28, 1813: “The Pleasantness of American I agree with you that there is a [Ljfe.” As elements in this pleasant- natural aristocracy among men. The pess he mentions “the general grounds of this are virtue and tal- n,,sperity and material well-being ents. . . The natural aristocracy I of the mass of the inhabitants, consider as the most precious gift social equality,” and describes the of nature, for the instruction, the . Americans as follows: trusts and government of society. And indeed it would have been in- Good nature, heartiness, a readi- consistent in creation to have formed ness to render small services to one man for the social state, and not to another . .. seem to be everywhere have provided virtue and wisdom in the air, and in those who breathe enough to manage the concerns -of it. : : the society. So I recently heard of another trib- It was on this basis of individual ute to America from a much less opportunity that the American Re- distinguished person, an unknown public was founded. And this prin- Italian. woman. A European-born ciple not only provided the main- American professor and his wife, ===== PAGE 31 ===== 1957 THE MORALITY OF CAPITALISM 29 motoring through Italy, stopped much attention to the alarming to pick up an [Italian family prevalence of drunkenness and stranded by the roadside in the juvenile delinquency. In these rain. There was nothing about the fields, perhaps, the moral score car or the dress of the professor with the West is about even. and his wife to mark them as But where the score is certainly Americans and they were talking not even is in the immorality that in the language of their native is forced on Russians, Chinese, country. But after a time the and other peoples living under Italian woman said: “You must be: communist rule by the State. It is Americans. Only Americans would a high crime and misdemeanor in be kind enough to pick up com- every communist state not to be an plete strangers as you did.” informer of ‘counterrevolution- In the United States, as every- ary” activity, even though this where else, there are bad people may entail the death of a close as well as good people, swindlers, relative. Both the Soviet Union hypocrites, - hoodlums, gangsters, and Red China have made heroes and whatnot. But under the Ameri- of the wretched junior communist can system of a free economy and who has spied on his parents and free political institutions there is denounced them to the authorities. no moral compulsion on anyone to Since the official curtain was be a scoundrel. People succeed or parted, revealing some of Stalin's fail morally on their individual crimes, we have it on the highest merits or demerits. Soviet authority that innumerable Soviet citizens, including highly placed communists, have been com- How very different is the situa- pelled under torture to make false tion in the countries that have confessions involving themselves fallen under communist totalitar- and others. lan rule. No reliable figures are The Archbishop of Canterbury, available. But, judging from the highest dignitary of the British reports of many former inmates Established Church, felt no hesita- of concentration camps, a consider- tion in expressing doubt and dis- able number of people sent there, may about the British landing in besides political suspects, are Suez. hardened and brutalized criminals, But the Patriarch of the Rus- guilty of such offenses as robbery sian Orthodox Church is an amoral and murder. Soviet newspapers in robot, obliged to echo in his public recent years have been devoting pronouncements every lie put out Crime and Consequences ===== PAGE 32 ===== 30 THE FREEMAN January by his atheistic government, in- amiable of human traits, hatred cluding the one about United and envy. There has been con- States employment of germ war- siderable expression of disillusion- fare in Korea. When the notorious ment by the more thoughtful La- “Red Dean” of Canterbury or his borites in Great Britain about the American emulators sound the failure of socialism to bring about eulogies of the bloodstained Soviet the moral regeneration which they regime, implacably hostile to all expected. It has been found by ex- forms of religious faith, they have perience that workers in national- to answer only to their own reason ized industry do not work harder and conscience. No one has put or more enthusiastically because any pressure on them to do so. And the State has replaced the private they are free to denounce their employer as the boss. own governments with impunity, The process of pillaging the to act as conveyors of the incredi- thrifty for the benefit of the ble falsehoods made in Moscow. thriftless by confiscatory direct But if any Soviet religious taxation and high “social security” leader of any faith should call payments—a process that has gone . down the retribution of a right- much further in Great Britain eous Providence on a regime whose than in the United States — has not whole record has been one long led to any earthly paradise, but to atrocity — from the Red Terror of drab mediocrity and a considerable the first years of the Revolution, let-down in efficiency and will to through the starvation of millions work. : of peasants, down to the massaere The rise of the free individualist and deportation of the freedom- economy coincided with the decline loving Hungarians — he would be of old-fashioned tyranny in the an immediate candidate for the form of the arbitrary power of em- crown of martyrdom. perors, kings, and princes. The de- cline of this economy has just as significantly coincided with the It may, of course, be argued that rise of totalitarian tyrannies far communism is not the only alterna- more formidable and ruthless than tive to capitalism. But one is not the old-fashioned monarchies. impressed by the moral achieve- ‘The equation, economic individ- ments of socialism where this sys- ualism equals freedom equals all tem has partially or entirely come moral values, has‘ never been into power. Much of its driving proved wrong — least of all in our force comes from two of the least own time. o.oo Socialism Also Fails ===== PAGE 33 ===== a ) pe 1 + LJ — LL DI1OGENES HERE are two kinds of truth. memory, and the rest — I know There is the truth about the nothing. world which is external to us, the And now suppose that (without world which we perceive through killing the poor fellow, of course) our senses, or our senses aided and I were able so to operate upon him extended by instruments; but there that I could see his brain, his is another kind of truth, the truth heart, his internal organs. From about the world which is internal seeing them, I might learn some- to us and which cannot be seen by thing of how the machine works. the eye, heard by the ear, nor I might see the heart pumping measured by instruments. blood through the veins, or watch I see a man. With my physical the operations of the digestive or- senses I take him in, a solid, three- gans and the organs of elimination dimensional object. I note if he is — but again I should know nothing small or large, tall or short; I note of the man himself. whether he is young or old; I note Suppose, further, that I could the color of his eyes and his hair; take segments of his flesh and of I note whether he is bearded, his organs and his brain and sub- moustached, or clean-shaven. With mit them to microscopic and chemi- my ears I hear his voice and assess cal analysis. I might learn a good its pitch and timber — and so on. deal about the materials which But, when I have used my physical go to make up the human body, senses to the full, how much do I but I should be as far away as ever know of the man? I know nothing from knowing anything about the except some physical facts about “the invisible man,” of whom the his body; but of the real man be- body is only one — and that a tem- hind that body — the compound of porary — manifestation. emotion, thought, experience, Yet, knowing this truth about a Diogenes is the pseudonym for a regular contributor to the British weekly, Time & Tide, this article being from the issue of October 6, 1956. . . 31 ===== PAGE 34 ===== 32 - - THE FREEMAN January Fr human’ being, we do not apply’it-to'™ Senetrating the skies, microscopes.n the world without, to the physical: which probe ever-deéper into the universe. We assume that if we infinitely little. . could push the boundaries of True it is that he has added im- knowledge of that universe. suffi- mensely to his knowledge of the ciently far back, we should find the material universe. He has pushed answer to what Maeterlinck called far back into time and space the “The Great Secret.” We think that boundaries of the skies, opened up we should find the why and where- the sub-molecular world, measured, fore of things, that we should un- weighed, analyzed the different derstand the meaning of life. forms of matter. He has broken down the “particle” of my boyhood into the atom; he has even broken The thought of earlier ages did down the atom to its constituent not entertain this delusion; it neutrons and electrons. knew that man was more than his _ Nor is it to be denied that much physical apparatus. It thought of of the knowledge which science has him as a spirit of which the body discovered has been of great prac- was but the instrument. It saw the tical use. The constant probing of universe not as God, but as the the physical body has revolution- garment of God. Man was the ized the art of surgery. The con- microcosm, of which the universe stant analyzing of various forms was the macrocosm, but they came of matter has made available a from the same Hand and it was vast range of medicines. reasonable to suppose that they We can do all sorts of things with were constructed on similar prin- matter of which our fathers could ciples. If there was “an invisible not have dreamed. The impact of man” behind the visible. man, it the inventions’ made possible by was reasonable to suppose that be- scientific’ discovery has changed hind the visible world there was an during my own lifetime the face The Spirit of Things invisible one. of civilization — and the pace of But since the time of Galileo, change becomes ever swifter. modern man has thought less and On the other hand, it must be less in these terms. The whole em- admitted that increased knowledge phasis of scientific injury has of the material world has led to been on probing the material uni- awful things and to still more verse. Man has developed instru- dreadful possibilities. Gunpowder, ments of ever-greater precision, high explosives, the cultivation of telescopes of ever-greater power of deadly germs for war purposes, the ===== PAGE 35 ===== 1957 WORLD INVISIBLE 33 atom and the hydrogen bomb — being merely a highly developed these must be set against the many form of animal life, when he denies benefits that in a material sense the invisible man within, he sets science has brought to the world. strict bounds to the possibility of If science has made possible more his own psychological and spiritual abundant material life, it has also development. The materialist made possible its universal destruc- creates his own blind alley. So does tion. a materialistic science. It is reach- But the essential point is that, ing the end of that blind alley to- with all the answers to all the ques- day. As one bewildered scientist tions which science has rendered expressed it not long since, “We available, it has not answered the don’t know where we are.” © ¢ eo only questions which really matter, for its only concern has been with EDITOR'S NOTE: Diogenes well em- the external, material world. In Phasizes the dead end of material- my car I can travel fifteen times Stic science —the sad fate of the as fast as Plato could. In a plane I tndividucl who perceives only the ex ternal, material world. But that is can travel perhaps a hundred and . . hardly the end of the trouble, for the fifty times as fast as Aristotle ever iiitudes and actions of the material- did. But the same questions are - ist also affect others. there at the end of the journey. Anyone unconscious of the Invis- In earlier ages men could hear ple — oblivious to that creativity the human voice only within a dis- which is infinitely beyond self — is tance of a few score feet; now I logically inclined to believe in his can hear the voices of men from own omniscience. Thus self-enthroned, every part of the earth, but they he may dream of a world perfected tell me much less of what is to the by casting others in his “omnipotent” point than the utterances of the [little image —even to the point of wise of old. I may extend the dura- compelling them to act and believe tion of my life for perhaps a score 5 he does. From such inability or “of years longer than my fore- unwillingness to contemplate the In- fathers could have hoped for — but visible and to admit of reality beyond will it" equal theirs -in quality ? Sci- ones own sensory perceptions, may .. well stem the growth of authoritar- ence may plan better cities and iamism. For if a person is aware of houses, but does it help one iota 43, ny cteries enshrouding even him- with the mansions of the soul? self, how could he possibly seek to When an individual man denies control or forcibly direct the creative that he is more than flesh and actions of others about whom he blood, when he thinks of himself as knows less? ===== PAGE 36 ===== EpITOR’s NOTE: We're told that more than three million reprints of “Our Four Great Faiths” had been distributed between its first publication in 1952 and our recent acquaintance with it. The message seems so timely at the beginning of a new administration, a new year — or even a new day — that it is presented here for others who might never have seen it, and for those who want to read it again. FA IN C7 fi is Pr 1 Owe N Oech JEN W. G. VOLLMER E LIVE in a land of plenty, cism, nazism, socialism, and com- in a land of mechanical mira- munism. cles and great scientific achieve- This Marx-bred philosophy is an ments. We are the best fed, the anti-God concept of life. It de- best clothed, and the best housed nounces and smears the God-given people in the world. Qur vast ma- rights and liberties of man. It de- terial blessings have no equal in nounces the basic faiths and rights the long, turbulent history of civi- contained in the Bible, the Decla- lization. The productive capacity ration of Independence, and our of our farms, our factories, our Constitution. Under the Marxist mines is the envy and the hope of idea, man has only one right — the a free world. right to follow blindly and unques- Yet, at the peak of our prosper- tioningly the dictates of the State ity and power, we find ourselves — and to slave and die uncomplain- beset by fears, by doubts, and by ingly for it. uncertainties. The situation is a This theory of the all- powerful frightening one. State is now locked in a death The seeds of this critical situa- struggle with the concept of free- tion in which we find ourselves to- dom, justice, and the dignity of day were planted many years ago man. It is a global struggle with a by a German named Karl Marx. philosophy which seeks constantly The teachings of this man long lay and craftily to destroy everything dormant. But some years ago they © we hold dear. It is a conflict be- came to life in such forms as fas- tween human dignity and godless Mer. Vollmer is President of the Texas and Pacific Railway Company. 34 ===== PAGE 37 ===== 1957 OUR FOUR GREAT FAITHS 35 tyranny, between freedom and too, that all of the great and last- slavery, between God-given rights ing movements of civilization have and state-granted privileges. been dedicated to, and founded upon, Faith in a Supreme Power. When our Pilgrim Fathers Thus today we stand at a cross- waded onto the shores of New roads in the history of our great England, there was no government nation. The time has come when ready to give them aid or comfort we must act, not procrastinate; or support. All they had to sustain when we must lead, not follow; them was a deep and abiding when we must speak, not listen; Faith. But it was sufficient. when we must unite, not divide. In those early days the voices of In this crisis, we have at our the nation’s builders resounded command the strength, the cour- through the hills with the great age, and the inspiration which lay songs of Faith. In times of dis- in the Four Great Faiths of our tress, of danger, of Thanksgiving, A Time for Faith Founding Fathers: these ancestors always relied upon Faith in God faith in God, which they fortified Faith in Ourselves with faith in themselves, faith in Faith in Our Fellow Men their fellow men, faith in freedom. Faith in Freedom Upon these Faiths rests the foun- Our nation was founded upon dation and the strength and the these Faiths. The men who signed security of our nation today. the Constitution, the men — and Most of the world’s two billion the women — who braved the prai- people have a firm Faith in the ex- rie and the mountain to pioneer istence of a Supreme Power. our land lived and died by those Throughout civilization, that Faiths. But what about us —and Faith has persisted. It has sur- our Faiths? vived the efforts of tyrants and dictators to stamp it out. Faith in God This Faith is woven into the In searching our minds and foundation and uprights of our na- hearts for the answer to this ques- tion. It has given us strength when tion, let us remember that down we faltered, courage when we were through the ages, Faith in God has afraid — united us when we were been an all-powerful force in the divided. Recognition of a Supreme lives of men — that it has been a Power and dependence upon that never-failing source of strength in Power for guidance is contained in time of trouble. Let us remember, the Declaration of Independence ===== PAGE 38 ===== 36 THE FREEMAN January and in our national and state Con- Faith in Ourselves stitutions. So strong was their Faith in God that our forebears caused to be stamped on our coins the words, “In God We Trust.” To these Founding Fathers, to these men who signed the Declaration of Independence and the Constitu- pan pe strong; in terms of fear, tion, these men who pioneered our 4 then be courageous; in terms land, this phrase had real mean- ,¢ 4oubt, and then have Faith. ing. But what about us? Do these ’ words, “In God We Trust,” guide us, inspire us, strengthen us? If our country’s future is un- certain, if we are worried about tomorrow, then we should do as our forefathers did! We should Each of us can help revive the turn again to the Faiths which spirit which built our country by made our nation great. Our.coun- renewing and revitalizing this try’s leaders throughout the years Faith in Ourselves. We know that shared a sure belief in God. In it has paid off in richer, in happier, crisis and in peace, they placed in fuller lives. We know that it has their Faith in God’s wisdom, in brought us the greatest outpour- their own ability to work out their 11g of goods and services the world problems, in the great justice of a has ever known. We know, too, free people. that it can bring us peace and Between the America of yester- Security. Co day and America of tomorrow The history of our country is stands our generation. To us has the history of a people with Faith fallen the duty to preserve the in Themselves. But in recent years Faith, the Honor, the Strength, Wwe have lost some of this Faith. and the Glory that is America. So We have started leaning upon the guided, we will serve best government for aid and for as- America’s destiny —and the sistance — we have started looking “world’s. By looking to God, by ded- to the government for the solution icating ourselves to His teachings, of personal and community prob- we and our. children can be filled lems. , with renewed and strengthened - If we persist in this dependency Faith. - upon .government, we shall surely The Scriptures remind us that “as a man thinketh in his heart, so is he.” This Biblical admonition tells us that we cannot think in terms of failure, and then suc- ceed; in terms of weakness, and Our material well-being is ample proof that we have had Faith in Ourselves. It is proof, too, that “the Lord helps those who help themselves.” ===== PAGE 39 ===== 1957 OUR FOUR GREAT FAITHS 37 destroy one of the basic Faiths ago, we must seek the strength that helped to make our country such Faith in our Fellow Men free, prosperous, and strong. As yields. We, too, should pledge to dependence upon the government's each other “our Lives, our For- ability to solve personal and com- tunes, and our Sacred Honor” in munity problems increases, Faith working to revive the spirit of in Ourselves is gradually weakened brotherhood upon which the foun- and eventually destroyed. dation of our great nation rests. Faith in our own ingenuity, re- We must renew our Faith in each sourcefulness, and ability to take other, and in the inalienable rights care of the basic needs of life is of each other “to life, liberty, and essential to the preservation of the pursuit of happiness.” The human rights and personal liber- preservation of the basic Faith — ties. This kind of Faith in Our- this foundation of brotherly love — selves is what our forefathers is our duty and our privilege. handed down to us. It is our re- sponsibility to preserve it untarn- Faith in Freedom ished, undiminished. The fourth and last of Qur Four Great Faiths is Faith in Freedom. Faith in Our Fellow Men Personal Freedom is the natural It follows naturally that Faith fruit of Faith in God, in Ourselves, in God and in Ourselves leads and in our Fellow Men. directly to Faith in our Fellow Our forefathers believed this. Men. They believed that Freedom was Our forefathers possessed this more than an abstract dream. Faith, too. They lived by it, fought They believed it was a God-given for it, and died to foster it. They right, not a state-granted privi- wrote it, too, in the Declaration of lege; and they believed it so deeply Independence, that all who fol- that they made Freedom an ac- lowed in their footsteps never complished fact. That is why we would forget these words: “With have Freedom. That is why we, a firm reliance on the Protection more than any people in the world, of Divine Providence, we mutually have been blessed so richly with pledge to each other our Lives, our so many of the good things of life. Fortunes, and our Sacred Honor.” Our nation truly has become a These are the words shaped by land of plenty in a world beset men who faced the future with a by poverty, hunger, and suffering. firm Faith in their Fellow Men. Freedom made this possible by Today, no less than long years releasing the fetters from our ===== PAGE 40 ===== 38 THE FREEMAN January minds. Down through the years Israel into the land of Canaan, pro- we have been free to dream, to ex- vides an example of what we can plore, to invent. We have been free do to give meaning to our Faith. to work, to achieve, to accumulate. At a critical period in the history We have been free to venture of his people, old Joshua told —and if we failed —to venture them: “Choose you this day whom again and again. We have been you will serve, but as for me and free to spend our money or to save my house, we will serve the Lord.” it. We have been free to climb Another stirring example that from lowly beginnings to positions points the way was given us by of power, honor, and trust. We the great patriot, Patrick Henry, have been free to rise from rags when he said: “I know not what to riches. We have been free to course others may choose, but as enjoy the fruits of our labors. for me give me liberty or give me But as we enjoy these blessings, death.” we should remember always that The Faith of our pioneering an- Freedom can be lost, and that it cestors was a living, vital force. will be lost if we take it for It was what sustained and guided granted. Freedom is a sacred trust them as they toiled and fought to — one which we must protect and lay the foundation and carve the pass on inviolate, unblemished. It uprights of our nation. To these is our children’s birthright, ours men and women, Faith was a daily, to hand on to them and to their hourly substance — a constant children. source of strength and comfort. To do this, we must do as those That is the kind of Faith we before us have done. We must need today to fortify our material have Faith in God, who answers’ strength. That is the kind of Faith prayers, Faith in Ourselves and we can have today if we are will- our work; Faith in our Fellow ing to look to God for guidance, Men, their courage and honesty; to seek Him in his temple, to follow Faith in Freedom, its strength and his teachings. That is the kind of its comfort. But it is not enough Faith we must have if we are to merely to declare our Faiths. We achieve ultimately “on earth, peace must give them life and meaning, to all men of good will.” eo oo by our words, by our works, in our ___ daily lives. Additional copies of this article are The dynamic Joshua, rugged available upon request to Mr. J. B. warrior and man of God who was Shores, Director Employee and Public Relations, Texas and Pacific Railway, chosen to lead the children of pahas 2, Texas. ===== PAGE 41 ===== REGINALD JEBB EprTorR’s NOTE: In the October issue of THE FREEMAN, journalist Reginald Jebb discussed some of the implications of the British Labor party program outlined in its pamphlet, Towards Equality. More recently Laborite thought leader and Member of Parliament, Mr. C. A. R. Crosland, amplified the equality objectives in three long articles which appeared in the magazine, Encounter. His subtle and closely reasoned arguments afford a foretaste of the manner in which collectivist aims may be presented to educated readers of all nations. To help prepare ourselves against such propaganda, we asked Mr. Jebb to review critically the Crosland essays. AVING picked “equality” as able — that there are limits beyond the most appealing aim of which his revolution should not be the socialist program, Mr. Cros- pushed: “But where, en route, be- land suggests several approaches fore we reach some drab extreme, to his objective. He argues the we shall wish to stop, I have no pros and cons of each approach idea.” So he would start rolling with a great show of impartiality, a snowball of centralized power, concluding that all of them have apparently overlooking the fact merit but that none fully solves that this power feeds upon the the problem he has posed; needed liberty of individuals and destroys is a revolutionary change in the their capacity to halt the dictator. whole fabric of society. In diagnosing the labor-manage- All this gives an impression of ment and political strife in Eng- judicial inquiry presented to rea- land, Mr. Crosland emphasizes so- sonable people, but unfortunately ciological rather than economic for his argument, his objective of causes. Certain classes have gained equality is never shown to be prac- income faster than they have ticable or suited to free human gained social status. And though beings. Neither equalization of in- the United States is comparatively comes nor a classless society is a free of rigid class distinctions, he possibility that could endure. Mr. sees some of the same thing there Crosland himself admits that ab- in “any nouveau-riche business solute equality would be intoler- class ... from Texas oil million- 39 ===== PAGE 42 ===== 40 oo THE FREEMAN January aires to small shop keepers, now “the best public [private] schools highly prosperous but socially in- offer not only a superior education, secure.” but further crucial advantages of the right accent, manner, and de- pendability of character. These ad- To remedy this kind of social in- vantages are a major determinant equality, Mr. Crosland seeks ways of occupation, and hence of income, and means to undermine an aris- power, and prestige.” tocracy of wealth, only to discover Admitting that a private enter- another obstacle in the form of an prise school does a better job than aristocracy of talent. And he fears its state-operated “competitor,” that under freedom of opportunity, Mr. Crosland nevertheless proposes those who do not succeed may be — for the sake of equality — that even more resentful than if they private schools be filled with boys had never been given a fair chance. from the government schools and So he concludes that the State be required to add state officials must be doubly careful in arrang- to their boards of management. In ing differentials in income, taking other words, they would be indis- into account such psychological tinguishable from government factors as cause men to envy one schools. If, for equality’s sake, another. } everyone should enjoy the advan- He also is concerned with the tages of an educational system wastes of inequality: “In a strati- created by private enterprise, the fied society the ruling elite becomes logical method would seem to call hereditary and self-perpetuating, for removal of education from and this... must involve a waste government control. But Mr. Cros- of talent.” Undoubtedly, there isin land’s policy is to kill the goose all countries a waste of talent, but that lays the golden eggs and sub- forced equalization will not.-remedy stitute a government fowl whose that defect. It will only diminish eggs never have come up to stand- the amount of talent available, ard! creating more excuse than ever for rigid and all-embracing state con- trol. The principle of equality, so The privately owned and oper- popular among those who are re- ated schools (called public schools sentful of the success of others, in England) are especially formi- calls for critical analysis: The dable obstacles in" Mr. Crosland’s truth that all men are equal has drive toward equality: In his view, one meaning and one only: All are Many Reasons for Inequality Opportunity Guarantees Nothing ===== PAGE 43 ===== 1957 EQUALITY RE-EXAMINED 41 equal in the sight of God. From sons according to their work, in- this it follows in justice that no terests, or tastes; and (2) the man should be enslaved, and that tendency of some possessing all should be dealt with equally by wealth, rank, or power to look the law. But to pretend that all down upon their humble neighbors are endowed with equal gifts, and treat them as inferiors. The whether of intelligence, creative first sort of grouping seems both: power, or physical prowess is, of natural and right for free men course, absurd. Even under com- while the second is clearly indefen- plete equality of opportunity, in- sible. But the collectivist, in order equalities of wealth, prestige, and to bring everything to a dead level, fame are bound to occur. To at- would destroy that desirable form tempt to level them flies in the of voluntary cooperation by equat- face of human nature. Certainly, ing it in men’s minds with the everyone seeks full opportunity worst kind of snobbery. for the development of his talents. Mr. Crosland considers with It is also certain that class snob- some justice that the English are bery is detestable. But to presume a class-conscious nation. But if he that bureaucratic government can would probe deeper, he would find ensure the former or eradicate the that the least class-conscious and latter is pure fancy. A govern- most independent among them are ment ought to protect the weak not those who clamor for “equal- against persecution by the strong, ity,” but those who by their efforts but strength of character lies ul- have acquired productive prop- timately in individual effort. And erty, thus enabling them to defy if men are snobs, they will still be bureaucracy. snobs in the “drab extreme” of a Freedom, if it means anything, classless society. implies independence of mind, and In its drive for a classless so- independence of mind is not ciety, collectivist thought confuses created through the centralized two utterly different things: (1) power to organize a flock of equal- the voluntary association of per- ized sheep. os» Consent Binds Freely IT 1S CERTAIN that the most natural and human government is that of consent, for that binds freely . . . when men hold their liberty by true obedience to rules of their own making. WILLIAM PENN, Essay towards the Present and Future Peace of Furope, 1693 ===== PAGE 44 ===== The Mathematical Manpower Shortage Learning how to add 1s clearly an important step toward understand-' ing of higher mathematics. And perhaps it also is the first step in mastering the fundamentals of economics. HENRY E. BELDEN HE SHORTAGE of people follow collegiate courses in mathe- whose education and training matics or science. If an effective make them suitable candidates to attack is to be made on the problem enter the scientific field is so well of critical shortages in scientific known that any citation of statis- and mathematical personnel, it is tics in this regard would be repeti- going to be necessary to change tious and redundant. completely the grand strategy of We hear a great amount of talk the attack. The fire-power must about the necessity for channeling start at the foundations of educa- the gifted college student into sci- tion. ence and mathematics. Such efforts In short, I believe we should have merit and should actively be start to train the child rather than pursued, but complete solution to the man. And we must make sure the problem is not to be found at that the child is well trained. the college and university level. If this process is followed, we The truth is that many pupils will uncover the natural talent for reach the college level with a type scientific and mathematical sub- of mathematical preparation which jects, which in many individuals is leaves them sorely unprepared to never awakened or realized, or in Mr. Belden, nationally known consultant on employee pension plans, also is Manager of the Southern California-Arizona Branch of The Union Central Life Insurance Company. This article is from an address at the 1956 Annual Meeting of the Conference of Actuaries in Public Practice, of which he is a member. 42 ===== PAGE 45 ===== -1957 THE MATHEMATICAL MANPOWER SHORTAGE 43 others is finally awakened, but at a selves to the study of mathematics time of life when to go back and and were the first to advance in fill the mind with elementals and that science; insomuch that, hav- fundamentals is distasteful, im- ing been brought up in it, they practical, or perhaps even impos- thought that its principles must be sible. the principles of all existing Pythagoras, who lived in the things.”? sixth century B.C., was one of the Fuclid’s Elements, first written first of the Greeks to develop an on papyrus scrolls in about 300 understanding of mathematics. He B.C. and translated into Arabic per- felt that his knowledge of arith- _haps 1,000 years later, became the metic, geometry, and philosophy basis of textbooks on geometry in was so valuable that he would only modern languages. These were in teach it after swearing his pupils wide general use until the early to secrecy and obtaining their years of the present century.’ agreement not to divulge the knowledge to others. Out of this Progressive Education came the Pythagorean brother- hoods which were disbanded in about 532 B.C. because of their re- ligious and political activity. How- ever, the importance of Pytha- goras’ mathematical teachings was recognized. In the following cen- tury there was no secrecy about the mathematics and philosophy which was being taught to Grecian There was a time prior to the rise of Progressive Education, under the aegis of John Dewey? and his followers, when mathe- matics was required in some im- portant and significant form at every level of the educational proc- ess, starting at the elementary grades and ending at the top as one of the rigid requirements for a youth by such men as Socrates and Ph.D. Today the teachers’ colleges According te Aristotle, who lived about 150 years after Pythagoras, 2Encyclopaedia Britannica, 14th ed. Vol. the Pythagoreans “applied them- 18, p. 803. 3Ibid, Vol. 8, pp. 802-3. Hogben, Lancelot. The Wonderful World 1Encyclopaedia Britannica, 14th ed. Vol. of Mathematics. Garden City Books, of many of our respected universi- 15, pp. 84-5; Vol. 18, pp. 48-50, 802-4. 1955. p. 33. Hogben, Lancelot. Mathematics for the ‘Dewey, John. The School and Society. Million. Rev. ed. Norton, 1947. pp. 26-9, Rev. ed. University of Chicago Press, 30-1, 66-7, 163, 194-6; Wonderful World 1915; Democracy and Education. Mac- of Mathematics. Garden City Books, millan, 1921; Experience and Educa- 1955. pp. 30-1, 33. tion. Macmillan, 1938. ===== PAGE 46 ===== 44 THE FREEMAN January ties are granting the Ph.D. and the to figure out the answers; could newer doctoral degrees without add and subtract with reasonable any requirements in mathematics. accuracy and speed; could do prob- The status of present-day mathe- lems in long division; could work matics at the secondary school level out simple percentages and get the is illustrated by the case of the decimal in the right place; and mother of a high school student had a basic knowledge of algebra who wrote to the editor of her and plane geometry? Today any newspaper to complain that when employer of clerical help knows her child wanted to study algebra better than to expect a similar per- and geometry, the teacher and formance from the average re- principal of the school had advised cently graduated high school stu- against it on the grounds that such dent. Two or three years after courses would be of little value in graduation they can do some of later life. What retrogression since these things with reasonable pro- the time when Pythagoras taught ficiency, but for the most part they that mathematics was the basis of have learned how to do the work all things! on the job and after leaving school. Perhaps the change is, in part at least, explained by the following quotation from an opinion poll In considering the above situa- used at a “workshop” for teachers, tion I am reminded of something administrators, and school board I once read about the effectiveness members at Teachers College, Co- of the ‘quickie’ courses in reme- lumbia University: dial reading. If the backward reader can be brought up to standard by a few weeks of in- tensive training, why wait until he is backward to give him the inten- sive training? In arithmetic, why be emphasized even at the expense foree our young people to spend of a reduction in the time given to the time from age 6 to 18 in the three R’s.” school, only to have them find they must then intensively study what If the old arithmetic teaching they were not taught in those 12 methods were so wrong, why is it long years? that the average high school grad- - In June 1956 the Educational uate of past years knew his mul- Testing Service of Princeton, N. tiplication tables without'stopping J., published a booklet, Problems Why Wait for Deficiencies? “Geometry and other branches of mathematics are not valuable for training persons to think.... “The newer types of school activi- ties—excursions, art, plays—should ===== PAGE 47 ===== 1957 THE MATHEMATICAL MANPOWER SHORTAGE 45 im Mathematical Education. This The report of the Educational report opens with a quotation from Testing Service then takes up the the New York Times of June 20, question of “The Learner.” In this 1955: section we find: “According to a At the grassroots of our society, recent national survey of high in the schools where our young peo- school seniors, 12 per cent of them “ple are being trained for their re- had never taken any algebra or sponsibilities tomorrow, there are geometry; 26 per cent had quit dry rot and decay which threaten not studying mathematics after only only the bright economic prospects one year, and another 30 per cent before us but even our ability to re- pad dropped the subject by the main strong and defend ourselves. ond of the second year . .. 6 per We need scientists, mathematicians, cent of the brighter seniors (the and engineers as never before, yet top 30 per cent on a test of mental many teen-agers with the ability to lity) d t give eith lzeb assume such roles are simply not ability) do not give either algebra or geometry a try and another 41 being given a chance to get the es- sential training. The statistics make PT cent never get beyond the ele- plain that great mistakes have been mentary phases.” made in thousands of communities The section of the report headed throughout our land. “The Teacher” is so important that I quote from it at some length: “One study showed that of 211 prospective elementary school teachers, nearly 150 had a long- standing hatred of arithmetic. “This state of affairs may not be unrelated to a lack of ordinary competence with numbers. A ran- dom sample of 370 candidates for elementary school positions faced this question on an examination: “The height of a letter in a cer- tain size of print is 14 inch. If the following are the heights (in inches) of this letter in other sizes “This report, based upon a study made Of print, which one is the next possible by a grant from the Carnegie larger size? Corporation of New York, may be ob- “(a) 5/16 (b) 1/2 (e) 3/16 (d) tained from the Educational Testing Service, Princeton, N. J., for $1.00. 3/8 (e) 7/16 The report continues: “This is a serious indictment. It charges that the schools are falling down on an important part of their job, that at the very time we are increas- ingly dependent on competence in mathematics, many capable young- sters are denied the training they need. Recent studies tend to fortify this conclusion. Complaints from businessmen emphasize that even the most elementary skill, facility in ordinary arithmetic, is in short supply.” ===== PAGE 48 ===== 46 THE FREEMAN January “Half of the 370 candidates accept the assumption that a teach- picked a wrong answer. er who has a solid understanding “There have been numerous of mathematics himself is more studies of teacher competence in likely than not to develop a similar arithmetic. If they can be believed, understanding in his pupils. Where it seems pretty clear that many ele- does such an assumption take us? mentary school teachers have a In a vicious circle, apparently — hard time keeping even half a and in reverse — for it has been jump ahead of their pupils. shown that ‘solid understanding’ is “ ‘Elementary teachers, for the frequently absent in teachers. Fu- most part,” according to one ob- ture teachers pass through the ele- server who has taught them, ‘are mentary schools learning to detest ignorant of the mathematical basis mathematics. They drop it in high of arithmetic; high school teachers school as early as possible. They assigned to teach mathematics fall avoid it in teachers’ colleges be- in this category also.’ cause it is not required. They re- “This ignorance is scarcely sur- turn to the elementary school to prising, for little knowledge of teach a new generation to detest mathematics is expected, even offi- it.” cially, of prospective school teach- ers. In the majority of cases an in- dividual with ambition to teach in A great majority of the recent an elementary school can matricu- efforts to combat the mathematical late at a teachers’ college without manpower shortage have been di- showing any high school mathe- rected at the collegiate level. While matics on his record. He can gradu- such activity is good, the problem ate without studying any college will be solved only if attention is ‘mathematics. And in this condi- directed to mathematics training tion, he can meet the requirements at every level of education, starting of most states for a certificate to at the very lowest grades. The col- teach arithmetic. The certification lege or university student who de- requirements for high school math cides to pursue a career in science teachers are only a little stiffer: or mathematics will find he is un- nearly one-third of the states will able to follow through with the license them even though they have idea if he has not received and ab- had no college mathematics at all, sorbed adequate primary and sec- and the average requirement forall ondary school mathematics. Also, states is only 10 semester hours. there is low ratio of probability “In the absence of data, let us that a college freshman will have Start in lower Grades ===== PAGE 49 ===== 1957 THE MATHEMATICAL MANPOWER SHORTAGE 47 any worth-while or serious scien- have mentioned were at their tific or mathematical desire if his height. These men were very con- interest has not been aroused at scious of the value of mathematics; the lower academic level. some thought it was the basis of all Parents should demand that things. It was not until the Greek their children receive adequate scholars began to lay their empha- drill in-addition, subtraction, mul- sis on less important studies that tiplication, and division and that Greece was overthrown and lost its old-fashioned teaching techniques power. The present Atomic Age be returned to usage in the instruc- and its nuclear physicists have tion of these important elementary proved that the Pythagoreans were subjects. not so far off the beam in their be- Greece was the cultural and eco- lief in regard to mathematics that nomic leader of the world in the “its principles must be the prin- days when the great teachers I ciples of all existing things.” e » The Responsibility of Education IN THAT TERRIFYING NOVEL by George Orwell, 1984, the Party of Big Brother developed the ultimate in ruthless dictatorship pre- cisely because it devised the means of enslaving men’s minds. . . The crowning triumph of its torture chambers was the under- mining of the disciplines of logic and mathematics, by which it finally brought its victims not only to assert but actually to believe that two plus two equals five. As yet, fortunately, it is only through fantasy that we can see what the destruction of the scholarly and scientific dis- ciplines would mean to mankind. From history, we can learn what their existence has meant. The sheer power of disciplined thought is revealed in practically all the great intellectual and technological advances which the human race has made. The ability of the man of disciplined mind to direct this power effec- tively upon problems for which he was not specifically trained is proved by examples without number. This ability to solve new problems by using the accumulated intellectual power of the race is mankind’s most precious possession. To transmit this power of disciplined thinking is the primary and inescapable responsibility of education. ARTHUR E. BESTOR, JR., Fducation for 198; ===== PAGE 50 ===== “Well. I'll Be Switched ! —~ at A bit of speculation concerning human relations. F. A. HARPER HOSE OF US who are either past events. We cannot decide that fathers or mothers, or sons or the Stone Age shall not have been. daughters,” have doubtless pon- All that can be done in the dered the problem of posterior ap- direction of undoing the deed ‘is plications of force as a means of tg replace the former physical posi- dealing with juvenile misconduct. tion of things, and the like. If Suppose a child has done some- Johnny ‘has pushed Suzie’s doll thing he shouldn’t. What should carriage over the bank, for in- be done about it? Some pretty deep stance, perhaps he can be made to philosophical problems are in- pring it back. Or if the doll has volved. They are the same ones heen broken, perhaps he can be involved in international squabbles made to either patch it up or buy — even war, where the participants 3 pew one from his candy money are older and operate in gangs. or penny savings. But let’s reduce the problem to a Such readjustments do not Size we can see, based on our OWI really undo the original deed. One direct experience, so as to avoid indelible consequence is that becoming befuddled by the sheer Suzie’s feelings have been hurt, bulls of the battle. with the result that her disap- The Deed Is Done pointment in Johnny is imprinted Your child, let us say, has en- upon her mind forever. And acted a misdeed. neither the patched doll nor a new The first fact to be realized is one like it quite suffices to replace that nothing can.undo a deed al- - the object of her fondness before ready done. That much is sure. It it was marred or ruined. is not within our power to alter Or to illustrate this point more Dr. Harper is a member of the staff of the Foundation for Economic Education. 48 ===== PAGE 51 ===== 1957 WELL, I'LL BE SWITCHED 49 clearly, the life of a dog that has 2. To discourage similar mis- been killed or a person who has deeds in the future. been murdered is definitely beyond Let’s consider these two pur- our power to replace. poses separately. What else can be done to Johnny for having committed this mis- deed? One thing only — you can One who believes in Eventual apply some sort of retribution. and Eternal Justice in the Uni- You can do that, or just let the Verse must reject the first of these Retributive Justice matter go. two purposes of retribution. He must refrain from punishment for Retribution its own sake, as distinct from try- The form of retribution you ing to prevent repetition. choose may range all the way from To refrain from posterior appli- a rebuke, such as a mild scorn of cations for purposes of retributive disfavor, to something of the vio- punishment really stems from lent sort. In common parlance, you one’s religious faith. And it is a may either go easy on him or severe test of that faith, indeed. beat the tar out of him. The choice For in the heat of parental dis- will differ among parents, but for approval, it becomes almost irre- any one parent the selection at any sistible to get in on the act and one time will probably depend on try to help God a bit; to try to the adjudged seriousness of the decide for Him what would be a misdeed or the frequency of its fair potion of gall in this particu- recurrence. Perhaps the time of lar instance; to apply the potion day and how tired you are when now rather than to wait for Him the misdeed occurs will have an to settle the matter in that uni- influence on your choice; the birch versal accounting of justice in the rod doubtless is a tool used more Hereafter. in late afternoons and evenings. If I really have faith in" an But let such details go. They are Eternal Justice, I cannot logically not of primary concern here. bow to this temptation. My excuse Retribution can have only two for doing so would be a claim of purposes: false authority. Tested in the light 1. To penalize the misdoer for of an Eternal Justice, I would then a misdeed that has already been myself be originating a misdeed performed. This is in addition to merely because another has done forcing him to replace the thing a misdeed, and that makes no stolen or broken, and the like. sense. I would be starting a chain ===== PAGE 52 ===== 50 THE FREEMAN January . reaction leading to an endless mar- So if misconduct can be dis- ket for birch rods as a consequence couraged by retribution on the of the original misdeed: misdoer, can it not also be dis- So anyone who believes in a couraged in an alert child who formalized Heaven and Hell, or merely observes the application of any counterpart thereof, must re- posterior pains on the misdoer? ject as a valid purpose of retribu- And if that can be made to work, tion the penalizing of misdoers is it not possible to forestall mis- beyond the point of repairing dam- conduct in an innocent. child by age done. On what authority can applying in advance a sample of I assume that the processes of the retributive process? retribution have not already been fully designed, or that I am em- Pre-Punishment powered to design or redesign ~~ For instance, if George can be them as part of my life mission? prevented from cutting down a second cherry tree by the applica- That He May Fear tion of a bit of force after the If one rejects retribution for first misdeed, can’t Tom be dis- its own sake alone, then the only couraged from cutting one down valid purpose it can have is to try by being allowed to observe to discourage repetition of the George’s punishment, as a sample misdeed. of what might be in store for him Usually these retributive cere- in like circumstances? In fact, monials are quite private affairs couldn't George have been pre- between the parent and the child. vented from cutting down the first Neighbors are generally not in- tree if he had been whipped in vited to be observers. Why? advance, as an innocent boy, as a Couldn’t neighbor children benefit sample of what the misdeed would as observers and also acquire good- hold in store for him? This would ness that way? Why restrict the be a unique procedure, to be sure, lesson to one who has already and it opens up quite unlimited performed the misdeed? Why not opportunities for “retribution in let its benefits accrue as well to advance,” so to speak. But if one others, where misdeeds may be assumes that the process truly pre- contemplated but still undone? vents misdeeds, what is wrong Perhaps, if the process can attain with such preventive measures ap- the goal, something is to be said plied to the innocent as well as for public whipping posts, public to the guilty? executions, and the like. The deep, philosophical question ===== PAGE 53 ===== 1957 WELL, I'LL BE SWITCHED 51 at issue here is whether or not But isn’t it possible, somehow, to the process attains its objective. "avoid their ever reaching that Can people be made moral by critical stage? force? There is no doubt, I sup- pose, that the conduct of a child Love and Respect can be altered somewhat by the Now, love — or at least respect — application of force or the threat is surely a requisite to the child’s of force; that he can be influenced learning a lesson that will reorient through the process of fear which his conduct into proper, self- this engenders. The child can responsible action —moral conduct. surely be made to act one way, or If a whipping has the effect of not act another, due to the push of destroying this love and respect, a fear rather than to the pull of un- most precious and essential start- derstanding. But since moral con- ing point of the child’s education duct must be a personal and self- will have been lost. willed choice based on what the in- It is not easy at such critical dividual himself deems to be good, times to remember that the child’s rather than what he fears, then deed seemed to him at that time to force and the threat of force surely be the right thing to do. It seemed fails to cause moral conduct — to him that it was the thing to do, whatever else one may say about that is, as a composite opinion that it. However much the child’s ac- took into account all considerations tions may be influenced by re- known to him, together with his - straint and by the generation of intuitive guides to conduct. To say fears, it is something other than this is no more than to state an moral guidance that is being ac- axiom, yet as a tool of thinking it complished. - tends to escape parents in such I suspect from my own experi- times of emergency. ence that when as parents we ap- So the child’s deed — which to ply a whipping, it is the conse- the parent was a misdeed — simply quence of having reached a state reflects the child’s tools for deci- of intellectual bankruptcy at this sion at that time. In differing from point. We don’t know what else to his parent's decision of the right do. So our discouragement or ani- thing to have done, it simply mosity breaks out in this particu- means that the two had different lar form, with the child directly on tools for judgment. To beat the the receiving end. tar out of the child because of this Perhaps there is nothing else to difference of opinion fails to intro- be done at that stage of events. duce a single new element for ra- ===== PAGE 54 ===== 52 THE FREEMAN January tional choice into the child’s kit-of is for each side to state the facts decision tools. When again similar and position held by the other side circumstances arise, the child will — state them to the satisfaction of surely still think as he did before the other person. Only after that as to what is the right thing to do. point has been reached are the par- The. whipping does nothing, basi- ties ready to try to proceed with cally, to correct the concept that the final step of resolving the dif- caused the child to behave in a way ference. The only point of present deemed wrong by the parent. All interest about this procedure is to that the whipping can do is to in- recognize that both parties have ject the new ingredients of vio- reasons for their position; that lence and fear into the child’s kit only after all the facts have been of reactions. laid on the table for both to see, is it possible to proceed toward What Was His Reason? agreement based on reason rather I once observed a teen-ager han- than on power. dle a problem in an interesting way. A younger child had perpe- Who Should Be Whipped? trated a misdeed, as his elders Now there is an interesting judged it. The elders, in confer- question to be posed at this point, ence assembled, were pondering about a difference of opinion be- what to do about it. Finally the tween the parent and the child. Let teen-ager said: “Let me try to han- us assume that one of them is go- dle this. I want to talk with him ing to use force on the other as a first, and find out why he did it. He means of ‘handling this difference must have had some reason, and if of opinion. We have already con- we can find out what the reason is, cluded that the process relies on we will know where to start to fear rather than on understanding work.” : and sincere. conviction; that it This approach seemed to me to probably destroys love and respect be astute and sound. Why start to on the part of .the. victim. The work on a problem until we know problem now arises as to which of precisely what the problem is? the two is to be the victim. Who is .I am reminded in this connection to be whipped? of a proposal for resolving argu- Ruses may. be used to decide this ments. As a starting point, each question, such as seniority rights. side states.its case and all the facts Or the law of guardianship might that contribute to the position éach be.-invoked, or something of the takes on the issue. The second step sort. But behind all these masks to ===== PAGE 55 ===== 1957 WELL, I'LL BE SWITCHED 53 the claim of authority looms the all this, why the child should not real one — superior might. The one whip the parent rather than the who is bigger as tested by the tools other way around? If the child of this battle — force — will be the truly loves and respects the parent, applier; the smaller will be the re- then his having to do this should cipient. Might rules games of induce sincere regrets for having might. And so the parent wins the done something that led to this sad initiative, ordinarily. ending. It would, furthermore, A common parental observation avoid the risk of losing the child’s is this: “This is going to hurt me love and respect, to whatever ex- worse than it does you.” That, I tent there was any originally. take it, is supposed to convince the The child may not, of course, victim that he is not, after all, to have any love and respect for the be the principal sufferer. That is a parent. If this is the case, then a claim surely lacking in convincing fundamental requisite to educa- power. On the contrary, it prob- tional influence is totally lacking ably only induces in the child a anyhow. And a lashing, by itself further — and unnecessary — loss alone, is surely not the way to es- of respect for the parent who poses tablish love and respect. So if the such a porous pontification. parent has failed up to this time Now let’s take a bit of inventory to gain the love and respect of the of our analysis. The only valid pur- child, why shouldn’t the parent be pose for a whipping is to induce lashed for his failure; who better nonrepetition of misconduct —as to administer the penalty than the judged by the parent, and in con- child, the victim of neglect? trast to the child’s judgment at the time of the deed. The process sub- The Test of Experience stitutes force for reason. It oper- Before throwing such a strange ates through fear, and will be no proposal into the ash can, one more lasting than will be the might try applying it to his own child’s fear of his parent. This ap- experience as a child. In my own proach is the antithesis of love and experience, the one and only lash- respect, and is alien to all that love ing I received was one where — to and respect can attain. It denies this day — I am convinced that the education and bars new tools for judge rendered a hasty decision learning moral self-reliance, by prior to obtaining all the facts in which the child will make wise the case. The whipping had abso- choices. lutely no effect whatever, so far as One may now ask, in the light of I can detect, of helping me to ac- ===== PAGE 56 ===== 54 THE FREEMAN January quire better tools of judgment in totally on gaining enough advance the future. All it did was to sacri- respect in the eyes of the child so fice some of that sacred ingredient that guidance can be accomplished of love and respect, from which out of respect and understanding, alone can come a positive influence rather than to have to resort to for the future. force. Failing in this, perhaps the How about your own experi- battle is lost anyhow. ences? Did you ever learn any- A complete reorientation of thing fundamental from the appli- processes of the parental handling cations of brute force upon your of children in times of misdoing, posterior? Did you ever gain from along the lines suggested, might it any love and respect for the in- also be tried elsewhere. It might flictor? be tried where there are differ- It would be difficult, I suspect, ences of opinion in larger cate- to take this step and hand the gories of humanity — even interna- switch to the child to be used on tional and interracial affairs. In one of us as a parent. A friend of the face of continuous failure in mine, on whom I tried a trial run international affairs by the use of of this reasoning, remarked: “I force, might we not consider a new think I'll have my wife try it first.” approach even there? Rule by Of course, there is another alter- sheer might is a doubtful device, native. And this is to avoid the even from the standpoint of the process of force entirely; to rely seeming victor. [oDEAE ©m apnenuy.l A Consequence of Compulsion 3 No. pe N hod 1 WHEN THE LAW, by means of its necessary agent, force, imposes upon men a regulation of labor, a method or a subject of edu- cation, a religious faith or creed — then the law is no longer negative; it acts positively upon people. It substitutes the will of the legislator for their own wills; ‘the initiative of the legislator for their own initiatives. When this happens, the people no longer need to discuss, to compare, to plan ahead; the law does all this for them. Intelligence becomes a useless prop for the people; they cease to be men; they lose their personality, their liberty, their property. FREDERIC BASTIAT, The Law, 1850 ===== PAGE 57 ===== A REVIEWER'S NOTEBOOK = Ee __ John Chamberlain = | HARLES E. Sorensen — ‘“Cast- an American manufacturer had to Iron Charlie,” as Henry Ford do to make consumer capitalism called him throughout the forty work was to follow the books of years of his employment by the a few academic pioneers, such as Ford Motor Company — was not a Francis Walker and H. C. Carey. man of theory. Like his boss, this For there, a full generation before Danish patternmaker from Copen- Henry Ford began tinkering with hagen had to see things in action a racing car for Barney Oldfield, before he could proceed to the gen- the American system of economics eralization. Nevertheless, Soren- is shadowed forth. Ricardo and sen’s autobiography, My Forty his followers in England had Years with Ford (W. W. Norton. taught the doctrine of the wage 345 pp. $5.00) offers the clearest fund; they thought the working- anatomical description of the man was paid out of profits, which American system of economics implied a perpetual struggle be- since the publication some thirty tween investor and laborer for the years ago of Garet Garrett’s The something extra that makes both American Omen. It is a book that saving and working worth-while. is worth far more than all the In brief, Ricardo, long before college texts that have been Marx, taught the doctrine of the written in the wake of John May- class war. Francis Walker and his nard Keynes, who did so much to American school said it was not undercut the American theory of so: The American theory was that the falling price level by institu- wages were paid out of produc- tionalizing the opposite — and tion; that if you increased produc- European — idea of the perpetual tion, selling more and more items inflationary bias. at less and less per item, the wages Theoretically, when Charlie and the profits would rise together. Sorensen went to work for Ford But no one acted on the Walker in the early days of the century theory until Ford came along. before Model T was born, all that The curious thing about it, as 55 ===== PAGE 58 ===== 56 THE FREEMAN January Sorensen’s book shows rather ir- Michigan to the construction of refutably, is that Henry Ford Cadillacs. Ford took. the inter- owed precisely nothing to the theo- changeable unit system out of the reticians who had gone before him. Detroit air. But mass production Ford was the true untutored required an automatically timed genius. What he did was to redis- flow of parts to the right place at cover all on his lonesome the . the right time, and there was noth- several elements which were to ing much in the Detroit air to make mass production and a con- show Ford what to do about this sumer-oriented capitalism possi- until he hired a man named Walter ble. He put the several elements Flanders. This wild man, who together by a process of trial and stayed with Ford only twenty error, coming up in the end with months, had original ideas about a perfect model of what had been the arrangement of machines. Put- dimly apprehended in the acade- ting the interchangeable unit sys- micians” books. Then, long after tem together with the Flanders’ the first working model of modern notions, Sorensen and others at capitalism had produced and sold Ford finally came up with the mov- some thirty million cars, Henry ing assembly line. It was indige- Ford hired a man named Samuel nous to the Ford plant, but Ford Crowther to explain the theory of himself did not invent it; he what had been done. The explana- merely sponsored it—which Charlie tion, says Charlie Sorensen, was Sorensen says is glory enough. wholly after the fact, and the fact itself owed far less to logical processes than Ford himself In his arrangement of work wished to believe. Ford might have .saved himself a lot: of trouble if he had only been : acquainted with Frederick W. Tay- The production of interchange- lor who first tried out the tech- able parts was already an old story niques of time-motion study at the when Ford began dreaming of a Midvale Steel Company. But no- cheap car to fit the average Ameri- body at the Ford Company had can’s pocketbook. Eli Whitney and ever heard of Taylor when Ford the Connecticut gunmakers had and Sorensen were setting up mov- been producing rifles and Colt re- ing production lines at the High- volvers by the interchangeable unit land Park plant in 1913. According system for years before Henry to Sorensen, Taylor was highly Leland first applied the principle in surprised in 1914 to hear that the Assembly Lines Interchangeable Parts ===== PAGE 59 ===== 1957 A REVIEWER'S NOTEBOOK 57 Ford Company “had undertaken to draw the inevitable deductions. install the principles of scientific Thus the optimistic principles management without the aid of ex- which had first been set down in perts.” the eighteen seventies by econo- It was more trial and error that mist Francis Walker were almost led Henry Ford on from his inde- accidentally proved in the practice pendent discovery of Taylorism to of a man who probably never in his an equally independent adumbra- life heard of Walker. tion of the theory of consumer capitalism. When Ford first con- ceived the desire to make a cheap Henry Ford is famous for his car for the multitudes, he wasn’t opinion that the greater part of much concerned about the origins history is “bunk.” But this was the of mass purchasing power. Pre- opinion of a tinkerer who learned sumably he had farmers, the tradi- only from his hands and his eyes. tional dwellers in rural isolation, in It didn’t matter much in the case mind when he thought of an ex- of Henry Ford, who happened to be panding market for the Tin Lizzy. a genius. But books have their When Ford first decided on the $5- place — and it would not have hurt day for his workers, it was as an if Ford had been able to read the incentive move. The profits were literature which effectively prophe- piling up so fast as a result of as- sied his own emergence. sembly line production that it was The point is worth making these only reasonable to suppose that the days precisely because Mr. Soren- Ford labor force would become dis- sen’s story of the origins of the gruntled if it didn’t share in the Ford system is not bunk. My Forty vastly increased take. Years with Ford is something that So the $5-day was instituted as should be read again and again, in an efficiency lure, not as something workshops, in union offices, in the to make mass consumption possi- schools, and in whatever rooms pol- ble. But mass consumption came iticians use when they have oppor- inevitably in its wake. Ford him- tunity to do a little homework. The self was soon startled to discover sad thing is that the lesson of the that he hadn’t provided parking Ford Company, which was elo- space for cars at the new Highland quently set forth in 1928 in Gar- Park plant. It was long after his rett’s The American Omen, is be- men had started driving Model Ts ing forgotten by the very Ameri- to work that Ford got his literary cans who have profited most from Man Friday, Mr. Crowther, to its application. Instead of letting Books Have Their Place ===== PAGE 60 ===== 58 THE FREEMAN January capitalism work its miracles in the on working. It may be surmised shape of lower and lower prices for that the only reason the past the consumer as mass production twenty years of inflation haven’t spins on past the “breakeven” been absolutely ruinous is to be point, the politicians are commit- found in the triumph of American ted to the rule that the savings of technology, which has hauled the the American system belong to dollar back from the abyss by fore- them, to be siphoned off in taxes. ing a continually mounting plenty. Wages still go up as unit produc- Sorensen’s book is a first-rate case tion costs are slashed. But the con- study of how this technology works sumer no longer gets his share of even in the face of transcendent the benefit, save as the politician difficulties. It is also an intensely sees fit to dole it out to him as fed- human study of a man who had his eral aid to this and that. idiosyncracies and blind spots. Al- Even so, the Ford system goes together, it is the book of the year. 2 Liberty Hyde Bailey: An In- Bailey's is worthy for several rea- formal Biography sons. By Philip Dorf. Ithaca: Cornell Uni- Yor one thing, his unique name versity Press. 259 pp. $3.50. — Liberty. His grandfather, a Ver- mont abolitionist of the early nine- Of the countless people who wan- teenth century, had proclaimed on der over hill and dale, occasionally the birth of a son: “Call him Lib- there is one whose course becomes erty — for all shall be free.” And a path; then a road; then a high- - that name was passed on to the way. grandson. The influence of great minds is Liberty Hyde Bailey was an ex- like that. Many of us were at- treme individualist who exempli- tracted to Cornell to study under fied the deepest purposes of lib- one particular man who himself erty. An ordered, command society had been attracted there to study can never chart the course for under another man. The other man great minds. All it can do is to was Liberty Hyde Bailey, one of paralyze them. But under liberty, the world’s greatest botanists. the work of men like Bailey bene- Not every biography of a scien- fits us all. tist would be worthy of note from His was a fascinating life. As a the standpoint of liberty. But boy, he played with the Indians in ===== PAGE 61 ===== 1957 OTHER BOOKS 59 frontier Michigan. Later he be- never recover enough to make the came the close friend not only of trip, his enthusiasm faded for the remote plants but also of men all first time. Finally, on Christmas over the world. night of the ninety-eighth year of At an early age Bailey laid out his life, there passed away a man his life’s plan in skeleton form. He who had upheld liberty in science planned to learn for twenty-five as few have ever done —‘“for all years, teach for twenty-five years, shall be free.” F. A. HARPER and then “do what I wish” for twenty-five years. = The Passing of American Neu- He entered the third phase of trality, 1937-1941 his plan a bit late. It seems that when he was forty-five he had re- luctantly accepted the Deanship at Cornell, but promised to serve only ten years. Ten years later he Professor Drummond’s volume de- walked into a faculty meeting, an- scribes the most ominous transi- nounced his retirement, and left tion in American history — from the room. Of this event, one who the loss of the benign neutrality, was present said: “We were all too international modesty, and pacific stricken to speak, and I look back inclinations which safely guided on it as one of the most dramatic our foreign relations for more experiences of my life.” than a century and kept us free The end of his great career did from any major foreign war dur- not come, however, at the three- ing this period, to the fervent quarter-century mark. Bailey had espousal of world meddling, give once said in a commencement ad- away, and “perpetual war for per- dress delivered in his seventy- =~ petual peace.” third year: “On that day that I This transition should be espe- lose my enthusiasm, let me die.” cially impressive and appalling to His continuing enthusiasm is evi- libertarians who are opposed to denced by the fact that in his state enterprise, inflation, and in- ninety-second year he was prepar- creasing debt, as it has brought ing for one of his numerous expe- every one of these in its wake. ditions to study palms in Africa, The decline of political morals and to visit fourteen countries. As after a decade and a half of official a result of an accident in New mendacity in regard to world af- York, he broke his leg. When he fi- fairs and their domestic aftermath nally came to realize that he would has led to the toleration of unprec- By Donald F. Drummond. Ann Arbor: University of Michigan Press, vii. 409 pp. $7.50. ===== PAGE 62 ===== 60 THE FREEMAN January edented graft and corruption in tures continue in so-called peace public life. time. The militaristic system is be- The economic changes have been ing made permanent as politicians even more menacing. Military have learned the technique of link- managerialism, a vast enlargement ing economic “prosperity” and po- of statism, inflation, rising living litical tenure to the indefinite pro-- costs, currency depreciation, an as- longing of cold and phony warfare tronomical public debt, and in- and the vast military expenditures creasingly crushing taxation have associated with it. been among the penalties exacted . Professor Drummond’s book of the United States by our inter- tells how we lost our neutrality ventionism. Our economy is being and the truly peaceful policy which undermined and our national re- controlled our foreign relations sources exhausted. and limited our public expendi- The financial balance-sheet dra- tures for a century and a half, al- matically underlines the fantastic though he recounts the story with cost of interventionism. It has approval rather than reproach. been estimated that the total cost HARRY ELMER BARNES of our interventionism since 1941 has been in excess of $750 billion = A Carnival of Buncombe dollars, as compared with all fed- By H. L. Mencken, edited by Mal- eral public expenditures of $180 colm Moos. Baltimore, Md.: The billions from 1789 to 1941. Be- Johns Hopkins Press. 370 pp. tween 1941 and 1953, Roosevelt $4.50. and Truman each spent approxi- This is not the most profound mately twice as much as all na- book on politics ever penned, but tional expenditures down to the it is probably the most fun. There year 1941. are sixty-nine pieces here, se- It will be evident that the evils lected by Huntington Cairns from and burdens brought to this coun- the hundreds of political articles try by our interventionist Liberals Mencken wrote for the Baltimore since 1940 vastly exceed the dam-. Sun in the years 1920-1936. age done to the country through Mencken was at the top of his the machinations and subversive form during this period, and al- actions of the communists during though he professed to despise pol- this same period. itics — apart from its entertain- Some may seek to brush this off ment value — he would have been by holding that such is the cost of desolated if kept away from it. He actual war. But the vast expendi- had a constitutional antipathy to ===== PAGE 63 ===== / 1957 OTHER BOOKS 61 frauds, and his preoccupation with honest, his candidacy is hopeless.” the gorgeous specimens that This trend appears inevitable in abounded in American politics dur- a mass democracy where politicans ing his lifetime brought out some must flatter the mob to get elected: of his best writing. He was a ‘The first and last aim of the poli- shrewd reporter who reacted vig- tician is to get votes, and the saf- orously and wrote with a complete est of all ways to get votes is to honesty that spared no one. appear to the plain man to be a This is the second book to be plain man like himself, which is to published after Mencken's death. say, to appear to him to be happily The previous one, Minority Re- free from any heretical treason to port, is a miscellany of warmed- the body of accepted platitudes — over Mencken written after his to be filled to the brim with the prime, and better forgotten. A flabby, banal, childish notions that Carnival of Buncombe, on the challenge no prejudice and lay no other hand, is the cream of Menck- burden of examination upon the en’s best. mind.” It was not the “honest imbecil- This trend in American political ity” of the ordinary politician that life carries with it two major con- sent Mencken’s temperature up to sequences: the deterioration of the 103; it was the do-gooder, the two partysystem, andthe decline of right-thinker, and the forward- the people's liberties. If no candi- looker in politics — the “resilient, date for high office can get elected sneaking, limber, oleaginous, hol- by standing on his principles, par- low, and disingenuous” fellow who ties erected on distinctive political purveyed ‘an idealism that is principles will tend to disappear. oblique, confusing, dishonest and This is inevitable, and evidence for ferocious.” This was the type itis the merging of the two major which had come to dominate the parties. “Both,” Mencken writes, American political scene since the ‘have lost their old vitality, all turn of the century, as Mencken their old reality; neither, as it viewed it. “One of the greatest de- stands today, is anything more fects of a democracy,” he wrote, than a huge and clumsy machine “is that it forces every candidate for cadging jobs. They do not for office, even the highest, into carry living principles into their frauds and chicaneries that are successive campaigns; they simply wholly incompatible with the most grab up anything that seems likely elementary decency and honor. In to make votes. The old distinctions proportion as he is intelligent and between them have all faded out, ===== PAGE 64 ===== 62 THE FREEMAN January and are now almost indiscernible.” plain reason: he is the best man in As for personal freedom, it is the running, as a man. There is no steadily being liquidated: “Laws ring in his nose. Nobody owns him. multiply in the land. They grow Nobody bosses him. Nobody even more and more idiotic and oppres- advises him. Right or wrong, he sive. Swarms of scoundrels are let has stood on his own bottom, firmly loose to harass honest men. The and resolutely, since the day he liberties that the Fathers gave us was first heard of in politics, bat- are turned into mockeries. ... Be- tling for his ideas in good weather tween Wilson and his brigades of and bad, facing great odds gladly, informers, spies, volunteer detec- going against his followers as well tives, perjurers and complaisant as with his followers, taking his judges, and the Prohibitionists own line always and sticking to it -and their messianic delusion, the with superb courage and resolu- liberty of the citizen has pretty tion.” well vanished in America...I begin Mencken had his blind spots, and to see signs that, deep down in some of them glare. But in the po- their hearts, the American people litical arena he saw clearly. He was are growing tired of government the outsider viewing his contem- by fiat and denunciation. Once they poraries with good-natured con- reach the limit of endurance, there tempt for their excited absorption will be a chance again for the sort in the shenanigans of politics. { of Americanism that civilized men Even in his Notes on Democracy, | can be proud of....” This, written the nearest thing to a political in 1920, is a tribute to Mencken’s creed, his common sense kept prescience. On the issue of indi- breaking through to keep him vidual liberty he never faltered, sane. No political structure or pro- even when his own freedom was gram has the solidity to bear the not directly involved. assorted faiths and loyalties which Mencken could recognize and re- people in the twentieth century — spect a man when he saw one, even lacking a proper object of faith if he abhorred the man’s ideas. and loyalty — entrust to it. To the Thus it should surprise no one that extent that a cure for this condi- he voted for LaFollette in 1924. tion is possible, A Carnival of Bun- Mencken affirmed he would go to combe is a long step in the right the gallows arguing that socialism direction. A new object of faith was a swindle. Nevertheless, he and loyalty completes the cure, and stated: “I shall vote for him (La- one is free to look beyond Mencken Follette) unhesitatingly, and for a for that. EDMUND A. OPITZ ===== PAGE 65 ===== 1957 OTHER BOOKS 63 += Fountain of Justice: A Study tution rests on its rootage in popu- in the Natural Law lar will represents a comparatively By John C. H. Wu. New York: late outgrowth in American consti- Sheed & Ward. 287 pp. $3.75. tutional theory. These are large topics which do A statutory law is established by not admit of any easy settlement, legislative enactment. Whatever and they are of enormous impor- authority it may have derives from tance to every libertarian. For if the power of the legislating body any elected body, at the behest of to enforce it, plus the public opin- some “majority,” may rightfully ion which approves it. For the le- pass any law it pleases, then a law gal positivists there is not and curbing the liberty of a minority need not be any other sanction, but has the same ethical sanction as a there are philosophies of law which law which seeks to protect it. In take issue with this conclusion. practice, and perhaps in theory as Public opinion may be unin- well, this is equivalent to eliminat- structed or misinformed and the ing ethical considerations from the legislators wicked men — in which legal field, which is to sanctify case the statute enacted by the one force. and approved by the other may be Dr. Wu combines the wisdom of a vicious and unjust law. But when two social heredities — that of we speak in these terms, we intro- China and that of the West. He has duce another dimension into the written a learned but readable argument — the speculative and pook on the natural law and com- metaphysical dimension which the mon law background of the Ameri- positivists seek to exclude. The cap political tradition which pays idea that eternal and immutable fy] tribute to the theological and principles are written into the na- religious premises which under- ture of things and that just laws gird that tradition. are those which correspond to these principles is part of the Higher Law background of Ameri- can constitutional theory. The con- cept of “Nature and Nature’s God” EDMUND A. OPITZ Any book reviewed in this Book Section (or as the ultimate sanction for politi- any other current book) supplied by return cal bodies and their deliverances mail. You pay only the bookstore price. We . . pay the postage anywhere in the world. was widely held by the Founding Catal on request Fathers. The alternative notion THE BOOKMAILER, Box 101, New York 16 that the supremacy of the Consti- ===== PAGE 66 ===== I BA Ar Aa AN re AA RP Ar, CS i Sn hint Sh SAA 2h 2 SAM A © AAS AR) SA © hh b= non i BRIR IER & ies ra ~ ’ a oo TRE y pall {IE Pes J HI ES INNE ESN . St) SH WJ ty feaitlea PEERY pd \ KR u NTA, ad Ll Wowpe LENZ Vio 9 I AL SUE I MO N 3 > : v2. N oA AS ~ rn Se yn Arr ed ey { | THIS MONTH the Foundation for Economic Education is pleased to announce a new service, which makes available, for those who cannot see, a limited number of Foundation publications in Braille. } During the past two years, Mr. Frederick M. Phelps of Spokane, Washington, a certified public accountant, has been transcribing copies of Foundation material into Braille. Following a long- established and inspiring tradition set by other Braille transcribers, Mr. Phelps has refused to accept remuneration for his services. Now, through the Foundation, he has made available the fol- : lowing bound volumes in Standard English Braille, Grade 2, which 1 may be loaned, at no cost, to any blind person who is interested, ¢ for a period of one month: Blessings of Discrimination.................................... F. A. HARPER 3 A Farmer Fights for Freedom ..................... Cy PETERMAN N Inflation... F. A. HARPER . ~The Mainspring of Human Progress... HENRY GRADY WEAVER 3 Not Worth a Continental......................... PELATIAH WEBSTER R Stand-By Controls.................ccccceveeicevciiiranenn, F. A. HARPER | Survival of the Species. ..................c...cc.cccoee. BEN MOREELL N Wards of the Government.................................... DEAN RUSSELL Also, Property Rights and Human Rights by PAuL L. POIROT is available in Grades 1 and 1% Braille. fo “Iningtovan Hudson, N. Ye, i. ===== PAGE 67 ===== THOMPSON RADIOACTIVE TESTS REVEAL ENGINE WEAR—POINT WAY TO LONGER CAR LIFE This sketch shows bow Thompson engineers use atomic energy to measure piston ring side wear while it is taking place. Radioactive piston rings are installed in a test engine - . . . as tiny particles wear off, io much the same manner a3 they wear off rings in your {i } car's engine, they are carried through a highly sensitive scintillation counter which = keeps 8 continuous record of wear conditions. RACIO ACTIVE a BEING TESTED RECORDER, For WEA rt I =a RADIO ACTIVE Pode ~ 31 WEAR PARTICLES MARKS DEGREE OF PISTON RING WEAR ON GRAPH scInTILLATION |: COUNTER : COUNTS THOUSANDS OF TINY § |, RADIO ACTIVE PARTICLES TO . LEARN THE EXTENT OF PISTON ’ RING WEAR «? J CIRLULATING PUMP HE DAY MAY NOT BE too far away they wear. For example, Thompson is when the engine in your car will now hard at work studying the side last twice as long as it does today. weur tendencies in piston rings after Important progress toward that goal new discoveries about this little- is being made by Thompson Products known subject resulted from the new A Thompson engineer installs 4 radioactive cngincers who have uncovered new radio-isotope tests. piston ring in a test cagine using special tools discoveries in wear patterns of car, a designed to protect personne! from over. truck and tractor engines. To do so, Other tests to follow involve such red I exposure to dangerous radioactive rays. A Thompson put man’s most modern vital engine parts as bearings, valves, second engineer closely observes the radiation “tool”. . . atomic energy . . . to work tappets, rocker arms, connecting rods, count to be sure that safery limicasions are in new testing techniques. gear teeth and pistons. maintained. Here's how Thompson does it... This important new development Engine parts to be studied for wear ~~ YPifies the thoroughness and inge- You can count on are irradiated in an atomic pile. These nuity of research methods, develop. - radioactive parts are then placed in a ment skills, and manufacturing facili- test engine. Tiny radioactive metal ties that have made Thompson Prod- 0 hn particles, torn loose by wear, are picked ucts one of industry's leaders for more up by lubricating oil and circulated than 50 years. Today such industries through a scintillator, a measuring as automotive, aviation, agricultural, device S50 times more sensitive than appliances, metallurgy, hydraulics, 10 S a Geiger counter. pneumatics, electronics and many From these radiation measurements, others count on Thompson. Thompson MANUFACTURLRS UF AUTOMOTIVE, AIRCRAFT, Thompson engincers are learning how Products, Inc, General Offices, INDUSTRIAL AND LEH CTHONIC PRODUCTS, parts wear, where they wear, and when Cleveland 17, Ohio. FACTURILS IN SINTREN CITIFS. ===== PAGE 68 ===== FROM A LIBERTARIAN’S LIBRARY We HAVE one common similarity, and one common necessity if we are to live and progress. It is that prohibitions against, or re- strictions upon, the release and exchange of our creative energies be at the lowest minimum possible. The universality of the will to live and the requirement that life and livelihood be protected are conterminous with society. The responsibility for society-wide protection cannot, in sound organi- zational practice, be vested in anything less than society. And where the responsibility rests, there also should rest the authority to discharge the responsibility. The law, the book of rules and prohibitions for social admini- stration, can logically serve only the purpose of deterring man’s destructive actions for the sake of giving full flower to his creative actions. Government, within its proper bounds, can be but the protective servant of all individuals equally against antisocial marauders. Selections from Government—An Ideal Concept by Leonard E. Read. The Foundation for Economic Education, Irving- ton-on-Hudson, N. Y. 149 pp. $1.50 paper, $2.00 cloth.