===== PAGE 1 ===== THE [eld SEPTEMBER 1957 IDEAS ON LIBERTY 1. Palaces for “Protectors” . . . . . . Charles |. Faddis 2 Ferdinand de Lesseps and the Suez Canal George Winder é The Straight line . . . . . . . . RobertleFevre 17 A Declaration of independence . . . Elwood P. Smith 19 Everyman’s Dossier . . . . . . . . Frederick Walker 26 Today’s School Problem . . . . . . Bettina Bien 30 The Moral Law . . . . . . . . . Ralph W. Husted 38 The Sleeping Cat (A Sermon) . . . . Edward W. Greenfield 42 Let's “Do It Ourselves” . . . . . . H.F. Langenberg 52 Qur Free Economy: Reality or Cliché . . Glenn E. Hoover 53 The New Slavery . . . . . . . . John Chamberlain 60 THE FOUNDATION FOR ECONOMIC EDUCATION, INC. Jrvington-on-Hudson, New York * —ta oH Ae. . JCI ALL ===== PAGE 2 ===== 4 FOUR THOMPSON-DAGE TV CAMERAS IN TUNNE TV by Thompson helps protect motorists in turnpike tunnel! 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(We pay postage both ways). | RESOURCES OVER ONE ~ QUARTER BILLION DOLLARS i R ES E RV E S over $24 million. “LET'S GET ACQUAINTED"— Write today for this booklet and financial statement, to: | i COAST FEDERAL SAVINGS Le BE VA R ETY DEPARTMENT H \ 3 of accounts, Individual, Joint, Trust and Sth and HILL C ti LOS ANGELES 14, CALIF. “AL orporation. Member—Federal Home Loan Bank—Federal Savings and Loan Insurance Corp. “const FEDERAL SAVINGS JOE CRAIL, PRESIDENT ===== PAGE 4 ===== ~~ PALACES FOR ’” « =, & CHARLES I. FADDIS HE DISSOLUTION AND FALL of around the base of his castle into the Roman Empire left a vac- small plots which he allotted to uum of law enforcement in the men for the purpose of tillage. The Mediterranean Basin and in the holders of these plots were the region bordering it to the north. serfs of the barons, and each baron By virtue of a. roaring voice, a promised to protect his serfs horse, a coat of mail, and a two- against the depredations of other handed sword, many petty and barons if they would keep him in ruthless men, calling themselves the luxury of the day. The serfs barons, popped into power —but lived in squalor, the barons in history has termed many of them luxury. “robber barons.” The secret of The barons took a goodly share their success was rule by brute of the crops and animals and a force. They took over a territory, certain amount of the time of the called it their own, and adminis- serfs, their wives, and children tered its affairs as they willed. for labor in their fields and in By threat of the two-handed their castles. They usurped and sword, they persuaded the more exercised the power of judgment simple-minded people within the .and execution. Since their luxuri- scope of their power to build them ous standards of living and their castles on craggy heights over- gauges of importance depended looking tracts of fertile land, en- upon the number of their serfs, couraging these toilers with fre- the latter were fixed to the land quent applications of the lash and upon which they had been placed. ‘occasional hangings. In these cas- Serfs were not allowed to move tles the barons and their henchmen about or attempt to better them- lived and enforced the baronial selves, all this being done in the will. Each baron divided the land name of their pretended welfare. "Mr. F addis, formerly congressman from Pennsylvania, further emphasizes here the importance of the ‘“‘Right To Work’ which he discussed in the July issue of The Freeman. 2 ===== PAGE 5 ===== 1957 PALACES FOR ‘PROTECTORS’ 3 The Myth of Security brought about suddenly by any Of course, the territory in which decree of anyone in power. No in- these benevolent plunderers con- deed. Even the ignorant power-in- ducted their so-called welfare op- toxicated barons realized that they erations was, in theory, ruled by could not suddenly deprive a great some king or other whose right to number of people of all of their rule and the bounds of whose rights and liberties without bring- kingdom were often doubtful. At ing about a general uprising. the best, provisions and supplies Therefore, these rights and liber- were never plentiful. The trains ties were stolen a little at a time, of pack mules were liable to be under the pretext of necessity for captured at almost any time or security. Necessity has ever been place by the marauders from the the argument for tyrannical de- castles, who claimed that it was crees. The most remarkable fact blessed to despoil the rich in order of the entire matter is that it was to enrich the poor — the barons, of done to the very people who had course, getting the lion’s share of always been so free and inde- the spoil. Since the kings did not pendent — the Germanic and Gallic have enough power or stability to people who had furnished the best chart a strong long-range policy, warriors for the Roman Legions they were forced to resort to tem- and who had even sacked Rome. porary measures in order to sus- tain themselves. Bribery, special favors, extraordinary privileges, After about eight hundred years immunities, and titles were be- the people succeeded in regaining stowed upon blackmailers, in pro- most of their lost liberties — but portion to their ability to threaten in the meantime millions of backs the peace. Women were given in had been lashed into ribbons, and marriage, or otherwise, in order rivers of blood had drained down to secure allies and preserve the the gutters. Liberties are lost with status quo which was ever the much greater ease and with much Liberty Slowly Regained primary objective. less bloodshed than they are re- The rights and liberties of the gained. common people were of no concern History is mainly a record of when weighed against the lust of the contention for power by in- the barons for power. These mas- dividuals seldom possessed of ters tightened their hold without either the ability or the integrity mercy until the serfs were slaves to enable them to exercise power indeed. This condition was not justly. The measure of their igno- ===== PAGE 6 ===== perro om goa THE FREEMAN September rance and dishonesty has ever been able for their members to change the extent of their demands for from one industry to another. The mandatory authority over every- necessity of a union card in closed thing which they can touch. Pow- shops, seniority rights, promo- erful circumstances influence the tions, equity in pension plans, wel- feelings and opinions of men; but fare funds, health insurance, un- human nature, unchanged since employment insurance, the guar- Genesis, dictates the theme — the anteed annual wage, and other lust for power and the greed for fringe benefits are factors which gold. "assist in freezing workers to cer- tain industries. The union bosses" Another Period of Serfdom? gain more rigid control every day. Great changes do not come sud- In changing the manners and denly and are always preceded by customs of great numbers of signs of warning. Thus, the des- people the minds of those people potic wielding of power in labor must first be prepared for the affairs of our own time gives rise change, as ground must be pre- to the question: Are we returning pared for seeding. The minds of to another period of serfdom? the workers have already been Union leaders, like other lead- prepared by the campaigns which ers, will struggle for monopolistic have stressed security as an ob- power. The key to such power is a jective, even above liberty. “Place large following. Therefore, lead- yourselves in my hands and I will ers make it difficult and undesir- protect you from your enemies,” a So Atte Mh ads i Sal em Som ann. tt nat i Pn a a Sa Spin thm Hnts lrm Seane A Smnh mb A smtp rar THE : : . : SEPTEMBER 1957 ¢ Vol. 7, No. 9 [CCHNdII Additional copies, postpaid to “The Straight Line” and “let's one address: Single copy, 50c;3 Do It Ourselves.” Available in for $1.00; 25 or more, 20c each. reprint form is ‘Today's School Permission is hereby granted to Problem’! (5c) ny other article anyone to reprint any article in will be supplied in reprint form A MONTHLY JOURNAL whole or in part (providing cus- if there are enough inquiries OF IDEAS ON LIBERTY tomary credit is given), except to justify the cost of printing. > The Freeman is published monthly by the Foundation for Economic Education, inc., lrvington-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 ftrvington, N. Y. with “additional entry at New : York, N. Y. Copyright 1957, The Foundation for Economic Education, Inc. Printed in U. S. A. ===== PAGE 7 ===== 1957 PALACES FOR “PROTECTORS” 5 has been the potent appeal of the ever been a lucrative occupation would-be exploiter of his fellow — one which provided many lux- man since the dawn of history. urious palaces many centuries ago. The enemy against which the pro- But the protected have always tection was to be provided has paid dearly for the palaces in generally been one conjured up to which their protectors lived in suit the occasion and magnified luxury. into terrorizing proportions. Sel- When one has surrendered his dom have any of those upon whom rights, privileges, and liberties the protection is to be thrust been and has become obligated to some- possessed of the foresight to in- one else for support and protection quire how they are to be protected — whether to an individual or to against the protector. the State — then he who has sur- rendered becomes a vassal and The Control of the Shepherd ceases to be free. The more rights A man protects his own prop- and privileges one surrenders, the erty for selfish reasons. He pro- more will be demanded by those to tects his sheep from the wolves whom the surrender is made. that he may shear them, and pro- Those labor leaders who play upon vides them security — behind the statement that security is fences. Of course, they are not more important than liberty may now in any manner capable of class themselves as liberals; but in taking care of themselves. They reality, they are the rankest of have been protected behind fences reactionaries. They are working to for too many generations. Yet be- bring about a return to feudalism fore they were frozen to the con- in which the workers will be fixed trol of the shepherd, they must to certain industries, as the serfs have been capable of surviving un- of the robber barons were fixed to fenced. Protection of the poor has the land. LI I RIDEAS © LIGEES 7 Backfiring Weapons THOSE WHO INVOKE the law to curb the liberties of others forge weapons which at a later time may be turned against them. If I use the law to destroy the freedom of my neighbor, I have no defense when my neighbor uses the law to destroy my freedom. JOHN W, SCOVILLE, Labor Monopolies—Or Freedom New York: Committee for Constitutional Government ===== PAGE 8 ===== Aa 51 . . IFN 3 IE SEPIA Vo Bettmann Archive ANY WRITERS on economic his- leaves — even if unintentionally — tory give the impression that that impression on the mind. the rugged individualists who led ~~ Yet it was these rugged indi- the economic development of the vidualists who, in a few short Victorian era were financial ad- years, laid down those railway venturers who lost the savings of lines upon which the world’s trans- the gullible with impunity, and port still largely depends; who invariably did more harm than opened up so many of the mines good. Even that American classic of America, Africa, and Asia; and of nineteenth century economic who were the chief instruments in history, The Migration of British turning primitive lands, such as Capital by Leland Hamilton Jenks, Western America, Australia, Mr. Winder is a well-known British author, journalist, and lecturer, whose article on ''Administra- tive Law in Great Britain’ appeared in The Freeman, August 1957. 6 ===== PAGE 9 ===== GEORGE WINDER Dit LESShIPS and the Suez Banal South Africa, and New Zealand, cultivation, no house, no shade, no into new and prosperous states. greenery, no running streams, in These great leaders of enter- short, nothing of use to man or prise who changed the face of the beast; search the vast horizon as earth were, in the majority of you may, there is nothing to ar- cases, either British or American. rest the eye from sea to sea but But, if we are to choose one of parched and lifeless desert, bare this forgotten legion to illustrate rocks, glaring sands, and utterly the type at its best, then surely arid plains.” we must give the palm to that il- It was through this barren lustrious Frenchman, Ferdinand waste that de Lesseps cut a canal Marie de Lesseps. 100 miles in length, to join the Many great and unprecedented Mediterranean and the Red Seas. difficulties were overcome by the Hugh Schonfield, in his books on financial giants of the nineteenth the Suez Canal, has given us a century, but only the labors of record of de Lesseps’ difficulties. Hercules can be compared with The first of these was to obtain a those which this intrepid venturer concession which would make the faced and overcame in his deter- work worth-while to the investing mination to change the geography public he hoped to interest in his of the world. project. Before the cutting of the Suez Egypt was normally a province Canal, the Isthmus of Suez was a of the Turkish Empire, but it was vast and empty desert. It had not governed by an Albanian adven- changed its character since one of turer, Mohammed Ali, who, after Napoleon’s officers, Francois pacifying the country in the name Michel de Roziére, after describ- of the Turkish Sultan, made him- ing the fertility of the Nile Delta, self Viceroy and ruled with undis- continued: “But journey on to the puted authority. He was a ruth- Isthmus and, under the same sky, less tyrant, but susceptible to all around is changed; no trace of modern ideas. He welcomed the 7 ===== PAGE 10 ===== 8 THE FREEMAN September investment of European capital in and Austria not to build the rail- his country, and certainly became way, Mohammed Ali did nothing. intrigued with the idea of the In 1849 he died, and was succeeded Canal. by his grandson Abbas. Great » i» Britain had paid court to this British Opposition young man before his succession No sooner was the suggestion with the result that, on attaining of a concession made to him, how- power, he gave his permission for ever, than he found himself the railway to be built, and the pressed by powerful interests to project for the Canal faded into leave the project alone. The most the distance. In 1854, however, determined opponent of the Canal Abbas was murdered by his palace was the British government. slaves, and the prospects for the Lord Palmerston, the British Canal were revived. The new Vice- Prime Minister, had witnessed roy, Mohammed Said, was a much Napoleon’s attempt to reach India more civilized and intelligent ruler by way -of Egypt, and he still than his predecessor. Also, what feared France as the greatest is more to the purpose, de Lesseps, power in Europe. He suspected when a young man in the French her designs in the East, and was consular service in Alexandria, determined that they should not had met him 18 years previously be facilitated by a canal through and made him a lasting friend. the Isthmus of Suez. He consid- The man destined to build the ered that Great Britain had a per- Suez Canal was living in retire- fectly good route to India around ment in the Manor of Chesnage, the Cape of Good Hope. his old family home near Agnes Furthermore, he looked upon Sorel in France, when he heard of the rising middle classes, with Said’s accession to power. He at their stocks and shares and their once set out for Egypt. projects for making money, with De Lesseps was, at this time, a all the suspicion of the landed good-looking man in his fiftieth aristocrat. He proposed to Moham- year, giving no other obvious sign med Ali that, instead of the Canal, of his great capacity than being a railway should be built from liked by everyone he met. He pos- Alexandria to Suez, which he sessed all the social graces, and he claimed would be sufficient to deal was a particularly good horseman with all the possible traffic. — an accomplishment of which he Pressed by Great Britain not to was to make good use. build the Canal, and by France On landing in Egypt, he was re- ===== PAGE 11 ===== 1957 FERDINAND DE LESSEPS 9 ceived by the Viceroy with all the key, to exercise his rather nebu- enthusiasm of an old friend. A lous right as the legal overlord of villa was placed at his disposal, Egypt. De Lesseps, warned of this, and he was invited to join His hurried to Constantinople in the Highness’s entourage in the forth- hope of persuading the Sultan to coming maneuvers. He was also ratify the concession. Abdul-Mejid presented with a beautiful Arab considered the Canal plan favor- horse. ably, more especially as de Lesseps It was during these maneuvers pointed out that no European gov- that the great decision was made ernment was behind the undertak- which was to have so many con- ing. At the same time, he feared sequences on so many nations. to offend Great Britain, to which Resting in the desert under the country he looked for protection shade of a carriage, while chas- against the threat of Russia. In seurs erected tents and built a these circumstances the British parapet of stones around the cen- Ambassador at Constantinople had ter of an encampment, de Lesseps no difficulty in persuading him to and Mohammed Said discussed the withhold his endorsement of the project of the Canal. They broke concession. off their talks during the heat of De Lesseps, frustrated at the the day, but de Lesseps returned Sublime Porte, transferred his ac- in the evening. Finding his way tivities to the seat of the oppo- obstructed by the high parapet sition — England itself. He wrote erected that morning, he put his to no less a person than that very horse at it and leaped it grace- apostle of free enterprise, Richard fully —a performance which is Cobden. “How can England,” he thought to have impressed favor- asked, “continue its incredible op- ably the Viceroy’s advisers, who position to the Suez Canal, a pri- were all cavalry. officers. vate enterprise, in the origin, con- . stitution, and object of which Concession Granted there is nothing to awaken any Be this as it may, de Lesseps suspicion of political rivalry? How certainly returned from this meet- can the apostles of free trade and ing with the coveted concession. open competition propagate their Soon the Consulates of Cairo were doctrines when the two leading buzzing with unusual activity. members of the Cabinet, who re- Great Britain’s opposition to the cently figured in their ranks, will Canal took the form of persuading not agree, through fear or horror Abdul-Mejid, the Sultan of Tur- of competition, to the suppression ===== PAGE 12 ===== 10 THE FREEMAN . September of a narrow neck of land which storm would engulf everything in divides the two most opulent of the sand. seas, and stands as a feeble barrier The Daily News declared: “The against all the navies of the literature of fiction is not dead in globe?” the land of Alexandre Dumas and He followed up this letter by Monsieur de Lesseps. The most visiting Great Britain. He was extravagant romancers are chil- welcomed by shipping and mer- dren compared with the discoverer cantile interests, and addressed of a new Pelusium, trying to con- Chambers of Commerce through- vince his audience that 250 sick out the land. Everywhere he went Europeans and 600 conscripted he obtained declarations and sig- Arabs will accomplish this stu- ‘natures in favor-of the Canal. pendous work, without money and "He was entertained by the Royal without water.” Geographical Society, and received The agitation in Great Britain by Queen Victoria and the Prince in favor of de Lesseps was, how- Consort, who showed great inter- ever, strong enough. to compel est in his project. Palmerston to defend himself in . Parliament. In doing so, he de- Skepticism Persists scribed the Canal as “an under- It could hardly be expected, how- taking which, I believe, as regards ever, that one Frenchman should its commercial character, may be change the whole political outlook deemed to rank among the many of Great Britain. The people who bubble schemes that from time to were capable of helping him were time have been palmed off on gul- not convinced. As Justin McCarthy lible capitalists. I believe that it . in his History of Our Own Times is physically impracticable, except tells us: “Engineers showed that at expense which would be far too the canal could not be made, or at great to warrant the expectations least maintained when made; capi- of any returns. I believe, there- talists proved that it never could fore, that those who embarked pay; and politicians were ready to their money in such an undertak- make it plain that such a canal, if ing would find themselves very made, would be a standing menace grievously deceived by the result.” to English interests.” -Although de Lesseps left Eng- The Times explained to its land defeated for the time being, readers that, in a land where the he nevertheless had that essential face of nature is changed by a of an honest company promoter tempest of wind, a single night of — something to sell. His famous ===== PAGE 13 ===== 1957 FERDINAND DE LESSEPS 11 concession was reviewed and rati- mism, he had allocated 80,000 fied by the Viceroy in 1856. This shares — took none whatever. Nor provided that the Company to be did the American investor, to formed by de Lesseps should exe- whom he had hopefully allocated cute the cutting of the Canal at 20,000 shares — amounts which, we its own cost, in return for which may presume, corresponded in his it was to have a lease of the land view with the comparative finan- necessary for its undertaking and cial states of the two countries at the right to charge dues for a that time. period of 99 years, to commence Altogether, the citizens of some from the date of the opening of twenty nations subscribed for the Canal. shares, but of these the people of Norway and Sweden, then one na- tion, applied for precisely one On the strength of this con- share, the people of .Prussia 15, cession, de Lesseps decided to Switzerland 460, Portugal 2,719, form his company and appeal for Netherlands 2,615, and Spain public subscription. Hoping to 4,161. The Turks took 750 and the keep it free from political influ- Egyptians 998. ence, and with the optimism typi- The whole prospect of the Canal cal of the company promoter, he clearly depended upon the French proceeded first to allocate the num- people, to whom de Lesseps had ber of shares which the citizens of allocated 80,000 shares but who the leading commercial nations of fortunately applied for 207,160. the world should be allowed to Under the circumstances, these purchase. were, of course, duly alloted in Further to emphasize the com- full. But this still left the Com- pany’s independence of any one pany with some 177,642 shares un- nation, he named it the “Com- sold. All de Lesseps’ work might pagnie Universelle du Canal Mari- yet be wrecked on those fatal fi- time de Suez.” The capital was nancial rocks which have ruined so made up of 400,000 shares of 500 many imaginative undertakings. francs each, the franc then being But, at this crisis, his old friend, worth about five to the dollar, and Mohammed Said, came to the res- these were placed on the market cue and subscribed for the bal- in November 1858. The result was ance of the shares. By this act, one of those setbacks the company Said probably did more for Egypt promoter must expect. The Brit- than any other of its rulers. ish people —to whom, in his opti- Whether this purchase by Said can A Great Company Is Formed ===== PAGE 14 ===== 12 THE FREEMAN September be described as state aid to the doubtful of the Sultan’s power, Company, it is a little difficult to was in a quandary. Laroche, the say, for Said made no invidious Company’s chief engineer, flatly distinction between himself and refused to call off his men. De his country. To him the dictum of Lesseps appealed to Napoleon III. Louis XIV — “I’etat, c’est moi!” Fortunately, the influence of the — was obviously sound political French at the Sublime Porte was, thinking. The shares were regis- at that time, as powerful as that tered in his own name. As we shall of the British. Caught between later see, they did eventually give opposing forces of intrigue, the a government financial stake in Sultan failed to follow up his the Company, but it was not the edict to his Egyptian Viceroy, and Egyptian government which was the work went on. to enjoy this advantage. The digging of the Suez Canal The Company had now overcome must be considered as one of the its first difficulties, but it still greatest engineering feats ever lacked the consent of the Sublime completed by mankind. Twice as Porte to commence its work on the long as the Panama Canal, hun- Canal; and, with England using its dreds of engineers and Europeans influence with the Sultan, this worked on the task, together with seemed as unobtainable as ever. tens of thousands of Egyptians. } For part of the distance the land The Operation Begins was covered with salt marshes, But de Lesseps and Mohammed which had to be dredged. The first Said now came to a bold decision. undertaking was to dig a small They decided to start the work canal from the Nile to supply the without the endorsement of workers with fresh water. Egypt's shadowy overlords. On Sandstorms, dangerous to man April 25, 1859, the first shovelful and covering everything in their of sand was moved, near the spot wake, delayed progress, but the on which Port Said — named after work of the canal crept steadily the Viceroy — now stands. forward. It took three years to The work had not proceeded reach Lake Timsah, the first stage very far, however, before the Sul- of its hundred-mile course. The tan, reminded of his ancient pre- mingling of the waters of the rogatives, bestirred himself. He Mediterranean with those of this sent an imperative order to Said salt-water lake, however, proved to stop the work at once. The Vice- to the world that de Lesseps’ _ roy, not wishing to obey, but great conception was no fantasy, ===== PAGE 15 ===== 1957 FERDINAND DE LESSEPS 13 and that the work he had set out seps, used all his influence with to perform might really be accom- Turkey, and with such effect that plished. + the Sultan. appointed him as an This did not, however, make the arbitrator to settle the matter. world any more cooperative. It Under his arbitration the Com- seemed rather to rouse the forces pany gave up 150,000 acres of of fear and jealousy to further land and the use of its Egyptian efforts to frustrate the great labor but was paid a compensation Frenchman. Once more a firman of £3,000,000 by Ismail. Thus the from the Sublime Porte arrived, work went on, all the more advan- this time threatening war if the tageously, owing to this infusion work was not stopped. The Sultan of money. gave two reasons for his action. One was that too much Egyptian The Task Is Completed land had been alienated for the Machinery took the place of the Company’s benefit, and, secondly, Egyptian laborer, and the Canal that the supply of forced labor crept steadily forward year after used for the excavation of the year, the investors in the company Canal deprived Egypt of the serv- patiently waiting for the day when ices of 60,000 persons who would they might see a return on their be better employed elsewhere. outlay. At last, in 1869 — ten years It is painful to read that forced after the work had commenced — labor was used for this great work, the waters of the Mediterranean but in the Turkish Empire at that and the Red Sea met, and de Les- time .it was the only kind of labor seps’ great task was done. He had employed for any great undertak- overcome all the difficulties that ing. nature and the power of govern- This last effort of the Sultan to ments had arrayed against him. prevent the building of the Canal In November 1869, the French was all the more dangerous in that Imperial yacht, Aigle, with the de Lesseps’ great supporter, Mo- beautiful Empress Eugenie on hammed Said, was now dead. His board, passed through the Canal successor, Ismail, however, who from the Mediterranean to the was anxious to end the claims of Red Sea, amid the acclamations the Sultan, and was, in conse- of the whole world. Ismail spent a quence, to be known as Khedive half-million pounds on the opening instead of Viceroy, was a keen sup- celebrations. Verdi wrote his great porter of the Canal. Napoleon III, opera Aida for the occasion. appealed to once again by de Les- The nations which for so long ===== PAGE 16 ===== 14 : THE FREEMAN September had laughed at de Lesseps’ fantasy lay might rob him of his oppor-- now made him honorable amends. tunity. In this dilemma he be- Queen Victoria, as though to atone thought him of his co-religionists, - for the actions of her government, Messrs. N. M. Rothschild & Sons. bestowed on him the Grand Cross In them. he found bankers willing of the Order of the Star of India; to finance the deal until such time and when he visited England, he as Parliament had given its ap- was made a Freeman of the City proval. In this way the British of London. A great fete was held government obtained its interest in his honor at the Crystal Palace. in the Canal, the cutting of which De Lesseps, the greatest of all the it had done so much to oppose. The great promoters of enterprise in price paid by Disraeli for the the nineteenth century, who had Khedive’s shares was £ 4,080,000. done more for Egypt than any of The American, Leland Hamilton her Pharaohs, now enjoyed the Jenks, valued them before World recognition he deserved. War I at £40,000,000. oo } The Company, however, retained How Britain Acquired Shares its private character, and the Some years later, in 1875, there British government never ob- occurred an episode in the history tained control of its management. of the Canal Company which must The Company’s capital is now di- be recorded. vided into 800,000 shares, of which In the autumn of that year, the the British government holds 44- Khedive Ismail, who held the 176,- per cent and appoints a minority 669 shares inherited from Moham- of directors. The remaining shares med ‘Said, and who was one of the are in the hands of some 100,000 most extravagant of men, was be- Frenchmen and a few citizens of ing pressed by creditors. He tried other nations. to borrow on the security of the In 1882, after rebellions and shares. Being unable to do so, he riots in Egypt in which many Eu- offered them for sale in Paris. ropean lives were lost, Great Brit- The British Prime Minister, ain, at the invitation of the Khe- Benjamin Disraeli, made up his dive, occupied Egypt for a period. mind to purchase them for the This did not, however, affect in British government. Parliament any way the private status of the was not sitting at the time, and Canal Company. the Treasury would not advance In 1888, at Constantinople, the money for such a purpose without Suez Canal Convention was signed its consent. Disraeli knew that de- by the leading maritime nations ===== PAGE 17 ===== 1957 FERDINAND DE LESSEPS 15 of the world. The first provision time to time to keep pace with the of this convention was as follows: growing tonnage of the ships “The Suez Maritime Canal shall which use it. always be free, and open in times In 1956 the chairman of the of war as in times of peace, to International Chamber of Ship- every vessel of commerce or of ping vouched for the efficiency of war, without distinction of flag. the Company in the following Consequently, the High Contract- words: “We wish to put on record ing Parties agree not in any way our recognition of the far-sighted to interfere with the free use of development and first-class ad- the Canal, in times of war as in ministration which the Shipping, times of peace. The Canal never therefore the Trade, of the World shall be subjected to the exercise has enjoyed through the efforts of the right of blockade.” of the Suez Canal Company for the last 87 years.” A Triumph of Private Enterprise This is the great property The opening of the Suez Canal which, on November 17, 1968, restored the ancient significance subject to certain payments for of the Mediterranean as a high- equipment, would have reverted way of world commerce. Some 80,- quite legally to the Egyptian gov- 000,000 tons of merchandise (more ernment if it only had the pa- - than twice the figure for the Pan- tience and integrity to wait. In- ama Canal) and some 500,000 pas- stead, on July 26, 1956, with the sengers pass through it annually. Company’s lease still having It reduces the distance between twelve years to run, Colonel Nas- Marseilles and Bombay by 5,800 ser, by a forcible police action, miles. The Canal Company, by had the heads of the Company’s bringing fresh water to the Isth- departments placed under house mus, has reclaimed thousands of arrest while armed police com- acres from the desert, so that a pelled the Egyptian banks to hand new province of Egypt has over the Company’s deposits. For emerged, supporting a population the time being, its employees were of 500,000 souls with a standard forced to work under martial law. of well-being unequaled elsewhere In this manner the Suez Canal, in the Middle East. that classic achievement of the The efficiency of the Company’s age of free enterprise, became the service has never been questioned, prize of a State which did not and the depth and width of the even exist when the Canal was cut. Canal have been increased from A few months later, after an abor- ~~ ===== PAGE 18 ===== 16 THE FREEMAN September tive attempt to recover this stolen greatest engineering feat ever un- property, the statue of Ferdinand dertaken by man? Why, none de Lesseps, which dominated the other than our old friend, the marine entrance of Port Said, was “Compagnie Universelle du Canal hurled from its pedestal into the Maritime de Suez.” sea by an Egyptian mob. When its property was confis- cated by Colonel Nasser, this great company was not forced into lig- POSTSCRIPT. During the last uidation, as might have been ex- few weeks the shares of an un- pected, for it had accumulated usual British company called the vast reserves which were fortun- Channel Tunnel Company, formed ately deposited outside the reach "74 years ago, have suddenly risen of the Egyptian dictator. It is on the market from 2/6 to 22/6. these funds which are now search- The sudden activity in this Com- ing for investment in other enter- pany, which has lived on nothing prises compatible with the Com- but hope for so long, is caused by pany’s original aim. The body of a report that its directors are.in the great Ferdinand de Lesseps touch with a powerful French com- may have moldered into dust, his pany concerning the building of proud memorial at Port Said may the long-deferred Channel Tunnel. be beneath the waters of the Medi- And what is this powerful terranean, but his fantastic and French company which is now con- indomitable soul still marches on. sidering what may well be the oe oo *. * * Rise and Progress of Revolution How LITTLE DO MEN SEE, who promote insurrection or revolution, and hope to lead it, that they must soon sink under its force, and - be among the first victims of the fury which they excite! However honest may be the views of its promoters, in the progress of in- surrection or revolution, ignorant, violent, and wicked men will soon take the lead, and conduct an enraged people to any ex- tremity. ALEXANDER ADDISON, 1759-1807 ===== PAGE 19 ===== mmm ns at PEE v a . EY ITP . J HE STRAIGHT | LINE a CU ee EE TT en, I revered ROBERT LEFEVRE AN’S INNER CONVICTION must invisible, from whence we all precede man’s outward ac- sprang, into the visible. Cause tion. must inevitably precede the effect. As a rational being, man does Since, in this world of ours, we not move without due cause. It is tend to concentrate upon effects, wholly false to presume that cor- the importance of selecting the rect action can occur in advance of precisely correct method to arrive correct thinking. The currents of at the effect we want, is of para- energy which drive each human mount importance. The means to being originate within him and the end are, in a sense, the tools move outward. These currents we must use to achieve. If we cannot be reversed. select the wrong tools — thus, the It is important that this matter wrong means — the end cannot be be understood. The actionists what we envisage. No end can pos- among us seem to fail of this un- sibly be desirable if, to achieve it, derstanding on occasion. They we must use immoral and evil presume that without thought, methods. without conviction, man can be Strangely, almost mystically, directed by others. This can only man tends to become that upon seem to occur if the individual which he concentrates. A man pre- surrenders his own volition and occupied with earning money, trusts blindly in the absoluteness placing money as his immediate of a leader. It matters not whether and all encompassing goal, is very that leader is a government rep- apt to have a great deal of money. resentative, a union racketeer, or The reason more people do not a church dignitary. To surrender have more money is simply be- one’s own processes to the control cause they do not concentrate upon of others is contrary to life itself this one thing. Instead, they per- and is, if we look closely, actually mit themselves to be drawn away impossible. Life moves from the from that objective, thus scatter- Mr. LeFevre, President of The Freedom School, Inc., also writes the editorial page for the Colorado Springs Gazette Telegraph where this article first appeared, June 19, 1957. 17 ===== PAGE 20 ===== 18 THE FREEMAN September ing their energies upon a thousand means of controlling others. And devious things. Their actual prog- what they concentrate upon, they ress in a given direction is re- tend to become. lated directly to their ability to It might be said that this is concentrate upon that direction. mankind's basic trap. For, having To achieve mightily, intense con- acknowledged that defensive force . centration is mandatory. is necessary, we must accept the . In discussing the nature of free- corollary that it is necessary only dom and the problems which must when aggressive force is present. inevitably come up when we think If the amount of aggressive of a totally free society, we note force in evidence at a given time the ever-ready willingness of per- is diminished, it follows that the sons to abandon freedom as a goal necessary amount of defensive and to permit themselves to be force would diminish in the same sidetracked. exact ratio. If more defensive Most persons who believe in force exists than aggression neces- freedom, for example, will admit sitates, then force, presumably de- that a certain amount of defensive fensive in character, becomes it- _ force is inherent in freedom. If ° self aggressive. there are persons in our midst — Thus, it will be seen by keen and who could deny it — who will students of human nature that if not govern themselves, it follows we concentrate our energies upon that something or someone out- providing adequate defensive side themselves must govern them. force, we will in all probability ex- Control is essential, lest chaos en- ceed the requirement for such sue. The problem is to create a force. Instead, if we can concen- - desire within the individual so trate upon freedom and upon at- that he will practice self-control. taining greater and greater self- When he does so, there is no fur- control in ourselves, then the need ther necessity for worrying about for defensive force will diminish him. If he is governing himself, as the possibility of aggressive there is no necessity for someone force being used diminishes. else to govern him. In the end, we will be that But it is at this point that many which we concentrate upon. Shall otherwise good students of liberty we renew our concentration upon turn aside. Instead of concentrat- freedom? Or shall we succumb to ing upon liberty, they strike off on the temptation to concentrate a tangent, busying themselves upon security, protectionism, and with seeking to find ways and finally, force? : LCI ===== PAGE 21 ===== Elwood P. Smith, a young engineer with Boeing Airplane Company in Seattle, began seriously studying moral, economic, and political philosophy about a year and o half ago. This letter is evidence that he has “done his homework” remarkably well. 76, Declination of Shdjpendlonoe ELwoop P. SMITH Dan N. Hendricks, Jr., President Seattle Professional Engineering Employees Association 3106 Arcade Building Seattle 1, Washington Dear Sir, I wish to inform you that I am discontinuing my membership in SPEEA. In order that my reasons for this action are properly under- stood, I would like to explain the basis upon which this decision was reached. I would first like to commend SPEEA for its “new look,” its attitude of cooperation and good will toward management. In this light SPEEA reflects the type of organization to which I would like to belong, and which I believe could perform a valuable service to both management and the engineering profession. My objection to SPEEA stems from an entirely different considera- tion, that of its being a protected organization under the Wagner Act, as modified by the Taft-Hartley Law. Under this legislation SPEEA is technically in fact a labor union, and granted certain powers by law in employer-employee relationships. As such, and I think you will agree with me, SPEEA is, by legal definition, a labor union, regardless of what high aspirations it may have in the way of professional status and recognition. Recent study on my part has brought me to a re-evaluation of the moral and economic validity of the labor movement. An examination of the historical background of the labor movement is most enlightening in this respect. 19 ===== PAGE 22 ===== 20 THE FREEMAN September We are, of course, forced to have all heard many times. The look at history through the eyes justification for the rise in the of historians. This introduces a labor movement is based upon this seemingly incalculable margin for interpretation of events, and the possible error, the interpretation continuation of the labor move- of historical events by the his- ment is similarly defended upon torian. Opinions involved ‘in the the proposition that, given the relating of events must, of neces- chance, economic power in the sity, reflect the judgment and ex- hands of the unscrupulous would perience of the historical writer, again exploit the laborer and re- which accounts for the divergent duce him to the status of a mere opinions we so often find as to the pawn -of the entrepreneur. fact and the interpretation of his- tory. Looking Beneath the Surface I believe that such historical in- We must remember, however, terpretation of the events that that basic and fundamental causa- gave birth to the labor movement tion for a given phenomenon often - is a case in point. The early In- lies far below the surface. For ex- dustrial Revolution era was a time ample, it is very easy to conclude of extreme hardship for the labor- that the crash of the stock market ing man, when he was faced with caused the depression of the early notoriously poor working condi- thirties. We completely ignore the tions, long hours, and low pay. root of the problem, however, by Conditions of work were, by our failing to ask, “What caused the present-day standards, intolerable. stock market to crash?” Such, 1 believe, is fact, contested To evaluate fully the circum- by virtually no one. stances in question, we must care- “One must be careful, however, fully consider the whole story. in evaluating cause and effect. We What were the conditions of em- are told, and it is the classical in- ployment and the relations of the terpretation of our day, that these laborer to society prior to the In- were arbitrary and unjust circum- dustrial Revolution? What was stances, capriciously visited upon the impact on the status of the mankind by unrestrained capital- laboring man of the readjustments ists who submitted humanity to in economic relationships caused unbearable indignities in their by the Industrial Revolution? It power and greed for unearned is in this light that we find that profits.. This is an oft-told story the classical interpretations have which, in one form or another, we grossly ignored so much relevant ===== PAGE 23 ===== 1957 A DECLARATION OF INDEPENDENCE 21 data as to completely distort the era for having immensely im- fact. proved the lot of the laboring man. Rather than being a time of When we compare the working idyllic conditions of peace and conditions of any past era to the good will, of happy economic cir- conditions of today, we must con- cumstances in which the common sider the fact that before one can man enjoyed a relatively stable run, one must learn to walk, and and useful life, we find that the before one can walk, one must pre-industrial era was a time of learn to stand. In climbing a lad- infinitely worse conditions. There der from the very bottom, one was virtually no place for the com- must, of necessity, start with the mon man. Instead of widespread bottom rung. To consider that the opportunities for gainful employ- conditions of any past era were ment, there was a bare minimum poor by today’s standards as an of subsistence for most of the indictment of the free enterprise populace. Many were doomed to system, is to ignore the fact that debtors’ prisons, workhouses, or the productivity rate of the labor- communal relief. Even under the ing man also started at the bottom. relatively democratic freedoms of The capital investment per worker pre-industrial England, life was and his productive capacity in the but slightly improved over that year 1800 were only a mere frac- which existed under former auto- tion of the capital investment and cratic and totalitarian despots. the productive capabilities of the worker of today. We would be ex- A Tremendous Improvement tremely foolish to think the la- By contrast, the Industrial Revo- borer could have sustained him- lution, with its poor working con- self with even the barest necessi- ditions, long hours, and low pay, ties of life as we think of them was in fact a tremendous improve- on an eight-hour day, five-day ment in the worker’s status over week with paid vacations and nu- that which existed prior to that merous other “fringe” benefits in time. For the first time, the com- the year 1800. It is patently im- mon man had a decent opportunity possible to withdraw from the to pay his own way instead of economic cornucopia more than living by the grace of charity, and has been deposited therein. The to make a real and respectable low productivity level meant that contribution to the cause of hu- the economic valuation of each manity. It would seem to me worker's contribution was there- wholly incongruous to condemn an fore low. ===== PAGE 24 ===== 22 THE FREEMAN September It is undeniably true that for- dustrial Revolution, instead of tunes were made during this pe- making the rich richer and the riod, and that the distribution of poor poorer, created an entirely wealth was very uneven. We might new wealth that was distributed assume from the popular inter- according to the voluntary ex- pretation of events that all capi- changes evidenced in the operation talists and entrepreneurs were of the market place. The new living in the lap of luxury, that wealth: went into the hands of all who ventured into capitalistic those that produced it, in propor- activity were rewarded grandly. tion to the degree in which each When we examine the total pic- contributed to the production of ture, we find contrarily that rela- that new wealth. The laborer now tively few made.the grade, that received something instead of the overwhelming majority suf- nothing, and the distribution of fered mediocre success or. total wealth was solely based upon the failure. And which ones did attain market evaluation of each service the most success? Those that sur- rendered. vived that we might hear about The market for this new pro- them, those that supplied the pub- duction of the industrial era must, lic needs most effectively and ef- of necessity, be the mass market ficiently, as determined. by the of the people. Mass production overwhelming vote of confidence without mass consumption is a given them by the consumer in contradiction in terms. Mass pro- the market place. duction can be sustained only by CL the satisfaction of the needs of the Privileged Classes mass market, which, in turn, can To state that the producers be- purchase only with the wages for came rich at the expense of the the labor used in that production, poor is again contravariant with and paid by the owners of the pro- fact. What was the distribution of ductive means. Thus, to say that wealth prior to the Industrial Rev- the rich became rich at the ex- olution? It was virtually all in the pense of the poor becomes com- hands of — not capitalists who pletely ambiguous and contradic- were producers of economic goods tory. — but in the hands of economically And the laborer has continued impotent purveyors who thrived to earn an increased share of that solely by government favor. For wealth in proportion to his pro- the common man we find an almost ductivity. The necessary balance total famine of wealth. The In- between production and consump- ===== PAGE 25 ===== 1957 A DECLARATION OF INDEPENDENCE 23 tion dictates that this must be so. those who profited were those who Real wages must, of necessity, in- best satisfied the consumer needs crease as the productivity in- in the most efficient and economi- creases, otherwise the market cal manner then known. If we as- could not possibly absorb the gross sume that the fortunes were made output of that production. Con- dishonestly, then coercion in the versely, it is impossible for real market place and a violation of wages to increase faster than pro- individual rights must have taken ductivity because it is impossible place. Certainly the consumer to consume that which has not would not have willingly parted been produced. with what little hard-earned money Union membership has shifted he had to feather the nests of the purchasing power from one labor already rich without value re- group to another; it cannot in ceived. toto increase the laborers’ share Let me make it understandably of the wealth. Labor can derive clear that I hold no brief for busi- an increased share of the wealth ness management as a perfect ex- only with increased productivity. ample of pure free enterprise in But, aside from psychological fac- action, who can commit no wrong. tors, this can be attained only by : I have no doubt that many indis- increased capital investment to cretions of moral judgment did provide more and better tools. We take place then and still continue to enjoy our high standard of living take place today. This is an indict- then, not because of labor unions, ment of persons, however, and not but because of our high produc- of a system based on economic tivity per worker, in spite of labor law. Certainly we know that man- unions. Such are the economic agement has curried special favor facts of life, Karl Marx and Sam- from government at the expense uel Gompers notwithstanding. of those nonfavored, and I would wholeheartedly agree that such favoritism certainly does not con- In regard to the fortunes that tribute to our national well-being. were made, we may assume that We must continually be aware, they were made honestly or dis- however, that under our capital- honestly. If they were made hon- istic system, which is just a short- estly, it would mean that the con- handed way of saying the right of sumer spent his dollar voluntarily individuals to seek their place in and without coercion where he society as determined by the free felt it benefited him most, and market value of their services With the Consumer's Consent ===== PAGE 26 ===== 24 THE FREEMAN September rendered to society, we have bene- that a moral society resorts to fited from a growth in living stand- government. Certain powers of ards that is enjoyed nowhere else protection are delegated to lawful on earth. agencies so that the energies of mankind can be freed to concen- The Rights of the Individual trate on constructive pursuits. To be free, one must be able to When government _extends its seek an honest determination of coercive power to the granting of the value of his contribution to favors, however, freedom must society. In order that each may necessarily suffer. Governments do this, our government was con- can grant favor to one group only ceived that the inalienable rights by equal denial of favor to another of man shall be protected from group. If it granted equal favor to predation and trespass from all, how can it be considered a others, who shall enjoy the same favor? but ‘no greater rights of protec- It is- a matter of historical rec- "tion. This, then, is the rightful ord that we have all too often position of government in our af- sought short-range goals of eco- fairs, to maintain with all the -nomic advantage without consider- vigilance it can command, the pro- , ing the long-range effects of the tection of these inalienable rights policies pursued. Disruption of the of the individual. When manage- market for short-range advantage ment or any other group seeks spe- of one group has invariably re- cial favor of the exercise of gov: sulted in economic disadvantage ernment power for displacement in the long run as the market seeks of equal privilege, it is the duty to adjust to the artificial strain of every individual to maintain placed upon it. with equal vigilance command of We would both agree, I am sure, government to prevent such in- that management has no right to equity of rights from taking place. exert coercion in the market, We cannot expect, in view of something that it cannot do with- the vagaries of human nature, that out trespassing upon the rights of all persons in our complex civiliza- individuals, something it cannot tion will practice to an acceptable do lawfully without government degree the. precepts of Judeo- favor to permit such trespass. Christian ethics. It is for the pur- It is my firm conviction, how- pose of protecting these ethical ever, that two wrongs never, under . and moral concepts from pred- any circumstance, make a right. I ators without moral compunction must, therefore, deny that any in- ===== PAGE 27 ===== 1957 A DECLARATION OF INDEPENDENCE 25 dividual, or group of individuals, nomic contribution can be by the has the right to exert coercion on voluntary acceptance of the mar- any other individual or group of ket of value received. Where co- individuals. Yet, this is precisely ercive power exists, it is impos- what our current labor legislation sible to determine to what degree is designed to do, to grant govern- acceptance is voluntary and to ment favor upon “organized” la- what degree it is forced. bor by permitting it to exert co- It is in this light that I cannot ercion upon the market for labor. further justify support of SPEEA. This is as morally wrong as any I cannot by free choice belong to other form of coercion. an organization which derives its From a purely economic stand- powers of existence under coercive point, it is as futile as it is wrong. law. To do so is to give tacit sup- The standard of living, rather port and approval to laws that I than being raised, 1s merely consider morally wrong. Should shifted from one pressure group SPEEA renounce all rights under to another; in aggregate it is ac- these protective laws, disaffiliate tually lowered because of the with any similarly protected or- waste in manpower, the loss of ganization, and base its justifica- production, and overhead costs of tion for existence upon free and supporting all of the economically voluntary acceptance of the value unproductive machinery. necessary that it may be capable of contrib- to implement and control such co- uting to both management and its ercive powers. members, I shall be most happy to Does this mean that I deny the rejoin and give SPEEA my full right of labor to organize? Cer- support. Under such voluntary as- tainly not. Labor has every right sociation without protection of co- to organize by voluntary contract, ercive law, it could not exist ex- but its justification for so doing cept that it should be capable of and its entitlement to recognition making a worth-while contribution should be based upon its ability to to all parties concerned. contribute to the economic good. Yours very truly, The only proof of positive eco- Elwood P. Smith — DELS @N LIBERTY. | Cause and Effect THINGS AND ACTIONS are what they are, and the consequences of them will be what they will be; why then should we desire to be deceived? BISHOP JOSEPH BUTLER, Fifteen Sermons ===== PAGE 28 ===== v [ EVE RYMAN¥S DOSSIER Mann: Re -« A. Devaney, Inc FREDERICK WALKER “THIS,” said Benjamin Disraeli Apparently there is little recog- in 1857, “I believe to be the age of nition of the possibility that the statistical imposture.” Unfortu- fat dossier of Everyman is an in- nately, mortality prevented the contestable hold on him if there Victorian statesman from seeing ever occurs an administration in 1957. It is significant that the Washington unscrupulous and de- growth of statistics and data has termined to have power regardless coincided with the steady, gradual of methods used. In troubled times expansion of the state and its there is always this possibility, powers. Today the life of the av- and the late Huey Long remains a erage citizen, Everyman, is care- portent of what might happen. fully recorded in a multitudinous Precooked, prefabricated, proc- series of files and statistics rang- essed in his file, Everyman is now ing from Washington to his home at the mercy of any group of poli- precinct. In working and maintain- ticians who attain power without ing the processes which fill the fanatical concern for their own dossier of Everyman, we emulate ~ integrity. in our endeavors the destructive So far, the process has been rel- and all-embracing methods of Nazi atively painless. After wrestling Germany and Soviet Russia; but with his individual income tax re- this emulation does not deter us turn, Everyman — when his per- from increasing as fast as possi- sonal annoyance has passed — is ble the already swollen dossier. apt to forget how many forms are The invasion of privacy is an ac- . accumulating in his dossier. The cepted procedure. Privacy, once the burden of the expanding dossier inalienable right of every Ameri- falls on his employer, the ever- can, is dead! Long live privacy. growing groups of civil servants Mr. Walker, public relations consultant and writer from Media, Pennsylvania, is experienced in the workings of governmental agencies and statistical and testing organizations. 26 ===== PAGE 29 ===== 1957 EVERYMAN’S DOSSIER 27 and governmental employees, the zen was covered by a most slender vast private agencies engaged in dossier. His citizenship was re- testing, measuring, recording, an- corded as a voter. His church and alyzing, developing the thoughts, fraternal memberships were listed. wants, needs, intelligence, and If he owned property, he possessed status of Everyman. recorded deeds. If he had been in Like creeping inflation, our dos- military service, he had a certifi- siers, stuffed with facts and fig- cate of discharge. The forms were ures, envelop us as quietly as a fog simple and necessary but not in- in the night. Painless and smooth, clusive. It was generally assumed this development so far has pro- that a man’s business and affairs voked hardly an audible protest. were his own concern. “Security’’ from womb to tomb Look at today. From the time of neatly guaranteed by a welfare his entry into the world until his state leers on our horizon, but at departure, the life of Everyman is the price of freedom and boldness, recorded on paper. Birth certifi- daring and initiative —the very cates; school records; draft rec- factors which brought the Ameri- ords; Social Security numbers and can republic to its present position recordings; income tax returns; of eminence. It must be remem- psychological and physical exami- bered that America once offered nations from school and job; prop- more freedom, hence more privacy, erty records; military service rec- than ever existed before; and it is ords; all organization member- well to ask where this freedom is ships; F.B.I. records (25,000,000 today. Americans according to reports) ; driver’s licenses and accident re- Paper Civilizations ports; state and municipal statis- Our civilizations are increasing- tical records; fingerprints; pass- ly paper civilizations. When Brit- port applications; state and city ish doctors recently wanted an in- income tax forms; often, police de- crease in salaries, they threatélied partment records; innumerable to refus€ to fill out death certifi- questionnaires by organizations cates. The traditional method of seeking to learn Everyman’s needs, the strike was ignored. Instead, wants, opinions, and sex life; and the doctors chose a lethal weapon finally the death certificate beyond — refusal to add to the paper forms which even the statistical madmen which are the very lifeblood of a and Internal Revenue Collectors modern state. cannot go. Once the average American citi- Paper, paper, everywhere! Em- ===== PAGE 30 ===== 28 THE FREEMAN September ployers are forced by the federal intelligence, and imagination government and some states and through which expansion, develop- cities to act as tax collectors ment, and growth are possible. against their employees. Innumer- Such imponderable factors cannot able small taxes are devised by be measured and filed on paper. our politicians based on the pres- Commenting on our statistical ent popular theory that true states- madness as it applies to the reli- manship consists only in constantly gious life, The Christian Century increasing the costs of our various had this to say: “Does the cam- governments. Each new tax means paign have a statistical objective, more paper. Candidates for high as, for example, that of exceeding office rely on public opinion sur- the largest number of converts veys to formulate their policies announced at any previous Billy and platforms — paper reports on Graham meeting? Forty thousand what is. popular, not what is nec- would do it, since the London cam- essary. paign got almost that many. (Where are they now?) Or per- Measurables and Immeasurables “haps it is intended to beat Billy. Magazines test readership opin- Sunday’s record of some 40 years ion for editorial guidance. Cor- ago in New York, which would porations test employees through take 100,000. (What difference did every known examination. Our Sunday’s 98,000 converts finally youth are classified and earmarked make in New York’s civic life, in as so many animals of varying de- the ethics of Wall Street, or even grees of quality by the most elab- in the vitality of her Protestant orate series of tests ever devised churches?) Statistics, even when by man. It is noteworthy to add they are totaling numbers of con- that the formulators of these tests verts, admittedly constitute a very are fond of pointing out that some poor yardstick by which to meas- of the world’s greatest geniuses ure spiritual gains. Then why are and -leaders would never have they used?” passed them. The results are all Paper, it is well to remember, embalmed on paper. Advancement is a most delicate material. It is and promotion almost everywhere easily destroyed by fire, water, in- are based on paper symbols em- sects, transportation, age, or phasizing education, length of weather. Yet such is our faith in service, personal habits, and atti- it that it is now our paramount tudes, and discounting entirely ~ symbol. Even our money, once those qualities of boldness, daring, based on gold (Who can remember ===== PAGE 31 ===== 1957 EVERYMAN'’S DOSSIER 29 our handsome gold pieces of ex- our affairs, whenever the tax men change?) is now made of paper; might decide, even when there and the result, increasingly evident might not be any justification be- every day, is not happy. Our pres- yond mere cynical suspicion.” ent money constantly tends to de- The rights of Everyman to his preciate in value. privacy and a life unmolested should be respected. This will mean Danger Ahead far-reaching revisions in our pres- Enough is enough! We have ent policies and paper mania. Yet built our values on paper, and we it can and must be done if we are get paper values in return. The to escape tyranny and totalitari- human spirit can stand so much, anism. The great imponderable and then it goes into reverse. qualities of nature which toss up There is evidence that such is oc- men and women gifted with gen- curring today. There is now a slow- jus, courage, imagination, and vast ly developing awareness of the ability must be recognized. These dangers of a paper civilization great qualities of the human spirit and its menace, for its ultimate which result in our finest achieve- end is the Welfare State, totali- ments and accomplishments cannot tarianism, the Marxian goal, no- be measured by any known tests, where better stated than by T. fitted into any system of files, or Coleman Andrews, former United placed on paper and controlled by States Collector of Internal Rev- rules and regulations. Return to enue, in his criticism of the Inter- Everyman his privacy and free- nal Revenue laws and policies. Mr. dom, and the fruits of genius, un- Andrews, from his inside knowl- curbed, will follow. edge of the income tax machinery, It was Meister Eckhart, one of feels that “it flouts the constitu- the greatest mystics of the West, tional right of the people to be who said: “No one can strike his secure in their persons, houses, roots into eternity without being papers, and effects against unrea- rid of the concept of number. The sonable searches and seizures.” human spirit must go beyond all Continuing, Mr. Andrews held number — ideas must break past that the income tax law has and away from ideas of quantity “opened our homes, our papers, and then he will be broken into by and our effects to the prying eyes God.”* LIC I of government agents and set the *From Meister Eckhart by Franz Pfeiffer, stage for searchers of our books translated by C. deB. Evans. London: and vaults, and for inquiries into Watkins, 1924. ===== PAGE 32 ===== “To many Americans, education is banker before a gathering of one of the religions they really be- school officials: lieve in. It has its orthodoxy, its pontiffs, its noble buildings. Edu- cation is the Established Church of the United States.” I don’t blame a school teacher, for having socialistic tendencies today. If I were a teacher getting paid so little that I could not afford a car or couldn’t afford to get married, I'd HERE IS MUCH TRUTH in this criticize the private enterprise sys- observation by the late British **™ educator, Sir Michael Sadler. We Apparently this banker failed Americans do have almost a re- to realize that the great majority ligious faith in education. We of our teachers are not part of a want the highest quality instruc- private enterprise system. Rather, tion and the best possible educa-- their jobs and salaries are a con- tional opportunities for our sequence of government control youngsters. We recognize that the which tends, more and more, to well-being of individuals and of drive private enterprise from the our nation depends upon true educational field. knowledge and a thorough under- standing of basic principles which The Beginnings of can be gained only through sound Government Schools education. - Since the earliest years of this There is increasing evidence, country’sdevelopment, government however, that too much attention has played an important role in is being paid to the external form educational matters. In 1642 Mas- of education, its pontiffs, and its sachusetts enacted a law requiring buildings, while not enough is “that the selectmen of every town spent on fundamentals, truth and ... teach by themselves or others, understanding. Consider, for ex- their children and apprentices so ample, this recent comment by a much learning, as may enable Miss Bien is a member of the staff of the Foundation for Economic Education. 30 ===== PAGE 33 ===== PROBLEM... them perfectly to read the English have to tolerate each other’s faith. tongue, and knowledge of the capi- As a result, the idea gradually tal laws . . . also, that all masters gained acceptance that taxpayers of families, do, once a week at should not be compelled to support least, catechise their children and religious instruction with which servants, in the grounds and prin- they did not agree. The close con- ciples of religion.” nection between these government Before long, the citizens in schools and the various churches many Massachusetts communities was slowly severed, and thus there set up town schools, financed by developed in this country the truly tax funds. Reading the Bible and liberal idea of separating Church learning to interpret it according from State. to their particular religious ortho- Education was given national doxy was an important part of a recognition in the Ordinance of child’s training. The State, during 1787. Drawn up to govern the this period, was actually the serv- Northwest Territory, including ant of the Church. There was little roughly the present states of Ohio, controversy as to the subjects and Indiana, Illinois, Michigan, and moral philosophy to be taught. All Wisconsin, this document stated: taxpayers and parents in a town Religion, morality, and knowledge were members of the same church, being necessary to good government and the school teacher was usually and the happiness of mankind, the minister. For all practical pur- schools and the means of education poses, these early government shall forever be encouraged. schools were religious schools. Here is proof that our ancestors As the colonies grew, the origi- had “faith” in education. This nal settlers were joined by others sentence must have meant no more with varied beliefs and back- than that, in view of the ideas pre- grounds. They soon began to real- vailing in this country at the time. ize that if people, holding so many Yet, it has been cited specifically different ideas, were to live to- time and again in recent years as a gether without conflict, they would precedent justifying government- 31 ===== PAGE 34 ===== 32 THE FREEMAN September supported schools and even federal followed suit with some form of subsidies to local schools. compulsory school attendance leg- ] islation. Early State Aid The 1850’s also marked the be- Early in the nineteenth century, ginning of active federal interest a number of persons interested in in the field of education. Congress- expanding and improving educa- men, having “faith” in education, tional opportunities started work- hoped to use some of the vast fed- ing actively, through their gov- eral holdings of land to encourage ernments, for “free,” ‘“‘common,” the development of colleges and or “public” schools. They believed universities in the various states. that no child should be denied the They passed a bill in 1859 to pro- chance of attending school, even vide for “land grant colleges” but if his parents could not, or would President Buchanan considered it not, assume the responsibility. The unconstitutional and he vetoed it, strongest movements in this direc- stating: tion started in New York and Should the time ever arrive when Massachusetts. In contrast to the the State governments shall look to early colonial schools which had the Federal Treasury for the means been supported and managed en- of supporting themselves and main- tirely by local citizens, the trend taining their systems of education at this time was toward state di- and internal policy, the character of rection and control. As early as both Governments will be greatly 1795, New York appropriated deteriorated. The representatives of funds to help pay the costs of the States and of the P eople, feelin id . a more immediate interest in obtain- local government schools, and in . ing money to lighten the burdens of 1835 Massachusetts followed suit. their constituents than for the pro- In 1852, largely at the instiga- motion of -the more distant objects tion of Horace Mann, for many intrusted to the Federal Government, years Secretary of the Massachu- will naturally incline to obtain means setts State Board of Education from the Federal Government for and Editor of The Common School State purposes. Journal, Massachusetts enacted the During the Civil War, the United first state compulsory school at- States’ Congress once more passed tendance -law. That legislation re- the bill calling for land grant col- quired all children between the leges, this time with a new clause ages of eight and fourteen to at- inserted, requiring that the pro- tend school for twelve weeks each . posed colleges furnish training in year. By 1918 all other states had “military tactics.” President Lin- ===== PAGE 35 ===== 1957 TODAY'S SCHOOL PROBLEM 33 coln signed the bill, thus introduc- ing the federal government into every state school system. Government Funds Mean Control When citizens turn to any gov- ernment for financial support, they must always remember that with such “aid” come “strings.” The spenders of government appropri- ations may willingly accept the stipulated conditions. But, should conflicts arise, they are forcefully reminded of the “strings.” One of the basic principles of our government, as it has evolved through the years, is the separa- tion of Church and State. Once this idea was generally understood, there was little controversy about it. People realized they could lose their freedom of worship and the right to choose their own religion if the churches were dependent on government. However, in the earn- est desire to further one of our “religions” — that of education — this sound logic was forgotten. The early state governments of New York and Massachusetts dis- tributed funds only to localities where the schools and teachers satisfied certain requirements. In New York State recently, the gov- ernment schools of the City of Yonkers were threatened with the denial of state assistance because, in the eyes of state officials, the city’s school budget was “inade- quate.” Last year, the school of- ficials of New York City learned that their practice of excusing stu- dents from compulsory attendance during the week after the State Regents examinations conflicted with the state order that “attend- ance up to the last day of school was always required for state aid purposes.” New Jersey state officials or- dered the City of Englewood to redraw its school district bound- aries last year, before the start of the fall term, “to end discrimina- tion against Negro children.” The president of the University of Massachusetts has complained of “undue state interference with faculty policy.” Textbooks paid for by state appropriations for use in the government schools of Cali- fornia are selected by the State Board of Education and must be printed at the State Printing Of- fice. Because Utah state law re- quires instruction in the “harmful use” of tobacco, liquor, and nar- cotics, a local school board has adopted a policy “against hiring anyone who uses them.” As a con- sequence, that school board recently fired a school painter because he smoked — at home. Teachers and other professional educators are specialists, many of whom believe that only they are competent to make decisions in their field. As a result, they are ===== PAGE 36 ===== 34 THE FREEMAN September apt to resent restrictions on their on voters, lawmakers, tax collec- spending of the money allotted to tors, and finally, the government the schools. Government legisla- officials delegated to hand out the tors, on the other hand, must at- funds. tach “strings” to control the funds Since the beginning of govern- they offer in order to fulfill their ment schools, the most ambitious obligations to their constituents and hardest-working teachers have and the taxpayers whose money realized that more money would they are spending. As representa- help them do a better job in many tives of the people, they are not ways. Therefore, the school teach- free to use tax collections indis- ers organized in order to strength- criminately. Nor are they free to en their plea for a larger share of permit anyone else to use them in- tax collections. Vote-conscious leg- discriminately, if they can possibly islators have generally found it prevent it. Government controls difficult to resist the claims of pro- and government money, therefore, fessional educators that more always go together. money was needed for the gov- ernment schools. Largely asa result of such po- litical pressure, President Eisen- If a private businessman is del- hower called a White House Con- uged with requests for his prod- ference on Education in 1955. uct, this is a sign that consumers Perhaps the most important ac- want more at the price he charges. complishment of that million-dol- His increased sales make it possi- lar conference, from the point of ble for him to get the funds to view of the professional educators, expand his operations. Government was the publicity it gave to pleas school administrators, howevér, for higher taxes and greater pub- must operate in a different way. lic interest. When Dr. Samuel They are not in a position to try Brownell was Director of the to please their “customers” direct- United States Office of Education, ly, through their own efforts, by he admitted that “it is part of our expanding their services or en- job to try to wake up the people.” larging the school facilities. In- This was the major role of the creased demand for their “produc- White House Conference on Edu- tion” does not necessarily have cation. Called in response to po- any relation to their ability to litical pressure, the reports which raise funds and increase produc- followed are being used as grounds tion. They must depend entirely for further pressure on politicians. Dependence on Government Produces Political Pressure ===== PAGE 37 ===== 1957 TODAY’S SCHOOL PROBLEM 35 The “Problem” its apparent inattention to facts, The taxpayers who foot the bill discipline, drill work, and basic for the government schools are principles. They have questioned finding it more and more difficult the tendency to outlaw religious to support them in the manner to and moral teaching from govern- which they have become accus- ment schools. The current conflict tomed. Lobbying by teachers and raging over racial integration is other professional educators for merely one more inevitable con- ever-increasing funds leads inevi- troversy created by the use of tably to higher and higher taxes. public funds in the field of edu- Few taxpayers would begrudge ad- cation. ditional funds to the schools if Parents cannot escape responsi- they really thought the result bility for the education of their would be “better” educational op- children. They may hire teachers portunities, but they do not neces- to help them but they cannot, in sarily agree with those who will the last analysis, avoid their per- be spending the money as to what sonal responsibility. Taxpayers is “better.” have the right, and the obligation, Educators, also, are becoming to intervene in the operations of increasingly disturbed about many the government school system, for aspects of the government school which they are paying, in order system. They resent restrictions to make sure government require- on their spending of the funds ments are satisfied. Legislators, provided for the schools. They also, have a duty to try to prevent want more freedom in the deter- the misuse of their constituents’ mination of textbooks, educational tax money, so they must stipulate techniques, curricula, and teacher the conditions under which it shall qualifications. Many feel their sal- be spent. Specialists in education, aries are too low. They recognize teachers, and administrators be- the impossibility of educating all lieve that they, too, are entitled children “equally” and resent justi- to some voice as to the spending fiably the tremendous disciplinary of money appropriated for the problem this attempt involves. government schools. In recent years, parents, also, have been showing more and more Surface Remedies Sought concern over the mounting costs Because of the many conflicts of and other aspects of the govern- interest among all those concerned ment school problem. They criti- — politicians, school administra- cize the quality of the instruction, tors, teachers, taxpayers, parents, > ===== PAGE 38 ===== 36 THE FREEMAN September and pupils — it is not surprising to supervision. Parents, also, have that serious complaints have been paid dearly. Reliance on govern- raised. In spite of the widespread ment to “educate” their young- concern, however, most persons sters has meant relinquishing their seek solutions in surface remedies. freedom of choice and control of Few, as yet, are willing to question their personal spending in this the whole idea of government edu- field. Thus, they have hampered cation itself. their own ability to fulfill their ob-- Sir Michael Sadler showed keen ligation to “educate” their chil- insight when he spoke of educa- dren, without relieving themselves tion as “the Established Church of that responsibility. of the United States.” This par- The laws creating and regulat- ticular religion, howrver, was ing government schools have in- singled out for special treatment, terfered directly with private and with the result that freedom of individual efforts to furnish edu- choice in schools has been almost cational opportunities. The use of entirely eliminated. Government force is incompatible with the education now enjoys practically cause of true knowledge. Conse- the status of a state religion. quently, its introduction into the Government became involved field of education has led increas- with the schools in this country ingly to problems; and there is no “early in their history. Their fate reason to believe that their solu- became linked with government in tion lies in introducing still furth- earnest with the provision of state er force by passing still more laws. funds to foster government schools locally. The next logical step was The Solution enactment of the first state com- The only solution to problems pulsory attendance law in 1852. created by government interven- Ever since then, the influence of tion with the market is to repeal government in education has pro- the legislation involved, remove the ceeded logically, relentlessly, and restraints erected, eliminate the inexorably, by means of one inter- special privileges created, and en- vention after another, toward the force the principle of justice and creation of today’s school “prob- equality before the law. Only by lem.” . removal of the intervention itself The price the school officials can the problems it created be have paid for seeking government remedied. support and accepting public mon- One specific step toward a solu- ey has been increased subservience tion of today’s government school * ===== PAGE 39 ===== 1957 TODAY’S SCHOOL PROBLEM 37 “problem” would be repeal of the of potentially higher production state compulsory attendance re- and better living standards for quirements. Many of the trouble- everyone. makers responsible for the great- The people in this country have est share of the teachers’ disci- become the world’s greatest pro- plinary problems would be glad to ducers and consumers of wheat, leave school for jobs where they corn, coal, automobiles, dresses, could begin to feel useful to them- lipsticks, medicine, hospital beds, selves and to the world. The and almost anything else you “shortages” of teachers and of might name. Their experience has classrooms would largely disap- shown that the way to get more of pear. Once more, the responsibility the things that people want most, for a child’s education and disci- is to leave production and distri- pline would be recognized as be- bution to the free market. That is longing to the parents. A school the path to the greatest possible graduation would again become an amount of wealth and satisfaction. accomplishment in which both Government, on the other hand, parents and children could take has proved to be a notoriously in- pride. efficient producer. Certainly the truth of this has been borne out in Resistance to Change the field of education. Repeal of the compulsory school Experience with our government attendance requirements would un- school system has raised serious doubtedly meet strong resistance. doubts as to the suitability of The belief is widespread that these force to serve the cause of true laws are both desirable and neces- education. Therefore, why not con- sary. Members of the educational sider removing government re- hierarchy enjoy the prestige that straints on individual initiative in comes with large student enroll- that field? If the most effective ments and tremendous appropria- way to get the most and the best tions. Many workers in industry of anything and everything is to are convinced that their own high leave its production in the hands wages are a result of the laws that of private individuals in a free compel school attendance and for- market, why not try leaving the bid children from working. They solution of today’s school “prob- fail to see that these gains in wage lem” to the market? Why not a rates have been purchased only at free market for education? e e e the expense of total real wages and {its available, 5¢ each ===== PAGE 40 ===== An important function of education is to orient man’s search for happiness in terms of... ste mA ————— ate. Tv ———————, J evermmm————————————__ J THE MORAL LAW OU have heard it RALPH W. HUSTED work, the plaudits of said many times during your your fellow men, and material evi- four years in high school that ed- dence of success will not satisfy a ucation is essential to freedom. need for intellectual well-being. Perhaps you have heard it said It is in the very nature of men more often in another way — that to want to understand their rela- education is essential to democ- tionship with the rest of the uni- racy. I prefer the first way of say- verse. Stated in another way, all ing it, but more about that later. of us are searching for an under- The connection between freedom standing of God’s moral law, and education has as much signifi- whether we realize it or not. I be- cance for you as anything else in lieve that in the great laboratory life. Some of you aspire to be sci- of history, man has proved to him- entists, some engineers, some busi- self many times that there is a nessmen, teachers, writers, ma- moral law to which, in the long chinists, or maybe housewives. ' run, he must be responsive. I be- Whatever the field of your inter- lieve that from the time we ac- est, you have visions of becoming knowledge the fact that it is the well-known and respected for the moral law of God we are searching quality of your work. All of the for — that regardless of what our callings I have mentioned are no- life’s work may be, the end of our ble endeavors, and some of you achievements is to know and un- will gain the renown you seek. But derstand that law — we then really sooner or later you will discover, begin to live. It is then that our if indeed you have not already, work begins to afford us the last- that it takes something more than ing satisfaction and peace of mind renown to make people happy. You which we must have. It is then will find that proficiency in your that we begin to face our respon- Myr. Husted, a businessman from Indianapolis, first offered these remarks to the 1957 graduating class of Thomas Carr Howe High School. 38 ===== PAGE 41 ===== 1957 THE MORAL LAW 39 sibilities, as they should be faced, do not think alike. Similarly, yes, with a greater regard for the con- but never alike. We are individual sequences of everything we do and creations. The intellectual experi- say. ences which will lead to your ulti- I believe that the thing which mate understanding of God’s law has made our country the greatest are experiences no other human on earth is the fact that here, more being has ever had or ever will than anywhere else, people have have. Unless you can make the been free to seek an understanding search in your own way through of the moral law in their own way, your own freedom of choice, you and to reap the material benefits of cannot hope to attain the sense of such freedom through the opera- well-being which I mentioned. tion of a free economy, the only Men have tried countless times economic system known to man to substitute the will of some group which will not eventually destroy for freedom of the individual to his freedom. pursue his own intellectual well- CL being. Probably the greatest effort Freedom Is Individual of that kind in all of history is go- What do we mean by freedom? ing on in Russia today where the We speak of free nations. We think religion of communism is being of our country as a free country, forced upon people. But it will fail, of our people as a free people, but because it is contrary to human remember this: There is no free- nature. No one can be forced to dom separate and apart from the accept an idea. He may be sub- individuals who comprise our na- jected to any number of persua- tion, our society. We cannot have sive measures, but the final act of a free nation unless our people thinking is his alone; and just have individual freedom. It is in- what he finally thinks, no one but dividual liberty — the liberty of in- he will ever know. dividuals to make choices for themselves — that we must have, Freedom vs. Democracy and there is no substitute for it. As to the point I mentioned No group, no society, no govern- earlier, we hear in educational cir- ment was ever formed which could cles these days a great deal about do for men what they have been education for democracy. I think able to do for themselves as free we should drop that expression in individuals. The reason for this is favor of education for freedom. quite fundamental. No two of us Freedom and democracy are not are alike. We do not act alike. We synonymous although I think they ===== PAGE 42 ===== 40 THE FREEMAN September are many times used thoughtlessly tomorrow. No mortal has ever to mean the same thing. Democ- fully understood the moral law. racy can be, and at times in his- That understanding is the work of tory it has been, an instrument of a lifetime and more. It is the work tyranny. The word democracy is of generations, but I am convinced used in many places in the world that the search for it affords men today by many people who haveno a really satisfying purpose in life, + regard whatsoever for individual and that faith in the existence of liberty. I do not mean to say that God’s eternal truths gives men the we should drop the use of the word courage to stand up for what they altogether, for democracy, as we believe even if they stand alone. know it, is the only method of gov- ernment acceptable to free men. Education and the Moral Law But it should be understood that So long as we are free to choose we are educating people to appre- between right and wrong ‘as we ciate freedom and not merely to see it now, we will grow in wis- understand a method by which free dom for tomorrow. How fast we men express themselves. grow in wisdom will depend di- There are many people in the rectly on how much freedom of world today who deny that there choice is left to us. In recent years are any eternal truths; who con- many infringements of that free- tend that the only value of a prin- dom have crept into our laws and ciple is in its practical application customs. You must learn to recog- at the moment; that what is true nize them before it is too late. today will not necessarily be true Now I have said very little about tomorrow. Obviously I cannot education. On the other hand, I agree with them, but I will not have implied a great deal. argue the matter here. I will sim- I believe that genuine education ply say that this country was not is intellectual training based on a founded on such beliefs, nor can belief in the existence of eternal it long endure if we fall into the truths. I believe that genuine edu- error of such beliefs or compro- cation must recognize the ultimate mise with them. need of every man to know the To say that we believe in the moral law and his need to discover existence of a moral law, in the it in his own way. In grade school existence of eternal truths, is not and high school young people are to claim that our understanding of given the basic tools with which them is perfect. We do not know to continue a search for God’s as much today as we hope to know truth. That search is not the work ===== PAGE 43 ===== 1957 THE MORAL LAW 41 of a single lifetime, but of gener- the moral law. It is only when suec- ations. Every generation of men ceeding generations cease to con- receives through the process of tribute something of lasting value education the culture of its fore- to their cultural heritage that civ- fathers. Through the process of ilization dies, and it is only when education, it transmits that cul- men lose their individual liberty — ture to its children, but with some- liberty to choose for themselves — thing added — something reflect- that they cease to make such con- ing a little greater knowledge of tributions. oo 0 RT Ce Wilson c00awy | The Dignity of Man oo hg ey LIFE GLOWS WITH INFINITE POSSIBILITIES. Open to everyone are gates of enterprise, courage, helpfulness, sacrifice, trusteeship, and achievement. Men of vision see something saner and better than the hum- drum life of the vast majority of people. Mentally and spiritually well-developed men and women are rare because so few give thought to the higher aspects of life. Mediocrity is the fate of millions who could, if they realized it, rise to heights of personal attainment. The world teems with unintelligent effort. Compassless men race here and there in the mad pursuit of money or other sup- posed advantage, with no realization of what the consequences will be. Their unavailing efforts could be dismissed as simply pitiful were it not that they are sacrificing the eternal spiritual for the temporary material. The vision of high ideals is possible to every man who has the sincere desire to look beyond present conditions, however dis- quieting, to the finer possibilities beckoning him ever onward and upward. GRENVILLE KLEISER ===== PAGE 44 ===== Zl \ al "THE <. NA = EpwWARD W. GREENFIELD SUPPOSE that ministers are no am so worried about what is hap- different from other people in pening to it. And I am not talking having particular hobbies they about communism or fascism: the like to ride. I have far-ranging in- communist and fascist assaults terests. Many things fascinate me; are relatively obvious and out in but one area of thought and con- the open. I am talking about some- cern is a consuming passion. It is thing far more subtle and insidi- a theme upon which there can be ous, something that even parades considerable controversy, and yet under the fair names of freedom controversy itself assumes and and faith — a creeping, paralyzing supports it, for the theme is free- mood and philosophy of our own dom — for the individual. In this making which play directly into I am completely and unblushingly the hands of the totalitarians and American and Christian. In our apostles of collectivism. We think American and Christian heritage of Americans as the chief of the of independence, individuality, freedom-loving peoples, and, in freedom of conscience, freedom of addressing ourselves to the sub- enterprise, and personal responsi- ject, I know that we are talking bility before God, we have a tra- about something that is dear to dition of such priceless value that the hearts of all of us. But if we I will fight for it with all the per- really believe in freedom, we are suasion at my command. going to have to grant each other It is precisely because of this some rights —my right to say profound belief in freedom that I some things you may not like, and The Reverend Mr. Greenfield is Minister of the First Presbyterian Church, Princeton, Indiana, where this sermon was delivered May 19, 1957. 42 ===== PAGE 45 ===== 1957 THE SLEEPING CAT 43 your right to disagree if you wish. gist, political scientist, business And if you go away mad, please executive, and clergyman all reach don’t direct your anger at me. I much the same conclusions, each am merely telling you what we from his own perspective, you may face, and it is time we be alert to be sure there is something behind it. it. What they all agree upon is Different Approaches that a fundamental and far-reach- I am encouraged by the fact ing change, amounting to a vir- that more and more books and tual revolution, is taking place in articles are being written on the the character of the American subject, trying to alert us. Be- people. The change is going on all cause much of what I shall say is around us, and perhaps in our own derived from them, let me name lives, far more than we are aware. some of them and urge your own Indeed, it is our lack of awareness study. One is a book that has been and its initial innocence that make stirring considerable comment for the creeping change so dangerous, several years, The Lonely Crowd like a sleeping cat. When I speak by David Reisman, a sociologist. of a sleeping cat, I am thinking of Another is Changing Values in the pets we have in our own home, College by Philip Jacob, a profes- which, in addition to four chil- sor of political science. There are dren, include a dog, a baby pigeon, two by a psychologist, Robert two parakeets, and a beautiful, Lindner, whose books, Prescrip- black Persian which we brought tion for Rebellion and Must You up from helpless kittenhood. The Conform?, are as provocative as Persian has always had his eye on their titles. And then the latest the birds, but has been so scrupu- and one of the most discussed is lously kept away from them that The Organization Man by William we were confident he had learned Whyte, assistant managing editor to leave them alone. And then one of Fortune magazine. I owe some day not long ago, out of a languor- insights, also, to an article in The ous, innocent-looking sleep, he Christian Century by William suddenly and viciously uncoiled to Kirkland, professor of Applied pounce upon one of the parakeets. Christianity at McCormick, the The bird was finished before we Presbyterian seminary in Chicago. were even aware of how it had And so you see, this topic is being happened. approached from several different As yet, the change is still in its angles. When sociologist, psycholo- kitten stage. While its pedigree ===== PAGE 46 ===== 44 THE FREEMAN September doubtlessly runs farther back, it motive of organized labor seems is cnly since World War II no longer to be the securing of that its growth has been obvious rights but the grabbing of power! enough to be clearly recognized. And the power is not in the hands The creed and driving motive be- of the rank-and-file working man hind it are what Dr. Lindner calls but of the labor bosses who are “the Eleventh Commandment” — using the workers as their tools. “You must adjust!” William 1 think it a pity, as salutary as it Whyte calls it a new “Social may be, that the Senate Investi- Ethic.” David Reisman speaks of gating Committee is focussing so it in terms of “the other-directed much attention upon only a hand- man.” In essence it is a group- ful of such bosses, for it takes the oriented, adjustment-seeking, har- heat and the spotlight off hun- mony-obsessed, conformist type of dreds of others who in their character which is slowly and power-hunger and exploitation of subtly leading us into a herd- workers are almost as bad. mindedness such as America has Listen to the testimony (THE never seen before. We are travel- FREEMAN, May 1957) of a man in ing, either unwittingly or by un- Portland, Oregon, for forty years thinking consent, the same road a union member, and for the past that Nazi Germany and Commu- eleven years a member of the Car- nist Russia took by conviction and penters’ and Joiners’ Union. He force. We are headed toward the answers the claim often made, es- mindless, collectivist rule of Mass pecially by labor leaders, that Man, the enshrinement of medioc- unions are democratic, that all is- rity, the apocalypse of the average. sues are determined by member- ship votes. The Labor Movement “Often,” this man says, “it ap- We see it most clearly, perhaps, pears that they are. But what the in the labor movement in which union bosses don’t tell. you is that millions of workers have been or- their rehearsed stooges, strategi- ganized — originally for the pur- cally placed near microphones in pose of securing legitimate rights the huge meeting hall, give lip- from the exploitations of manage- service favoring the union’s pro- ment. But with the labor move- posals. The weak-kneed, the intim- ment firmly established, fully pro- idated, and the habitually reti- tected by law, and becoming cent, awed by the flags, the ornate second only to the churches in trappings, and the huge crowds — number of members, the driving although frequently opposed to the ===== PAGE 47 ===== 1957 THE SLEEPING CAT 45 proposal at hand — remain dis- “Imprisoned by Brotherhood” creetly silent. The more brazen I said that this collectivizing and articulate members are ruled trend is most clearly apparent in out of order by the chairman, with organized labor; and yet, inter- little or no provocation other than estingly enough, it is not to labor their obvious disapproval of the that Mr. Whyte applies his phrase, matter before them. Most carpen- ‘imprisoned by brotherhood.” In ters, like most workingmen, are his book, The Organization Man, honest, hard-working, conscien- he is talking mostly about white- tious fellows who, though far collar workers, the junior execu- from being intellectual giants, can tives, the people in law offices, re- read not only blueprints but also search laboratories, industrial between the lines, especially on management suites, and even issues concerning their own wel- church organizations. For here, fare. But to speak before a crowd while he publicly gives lip-service of several thousand men — that is to the “Protestant ethic” of indi- something else again.... So time vidual salvation by work, thrift, and again they sit back in silence competition, and merit — as this while stooges promote the proposi- ethic was understood and applied tion favored by the bosses.” by earlier generations of Ameri- The picture is all too typical. cans — the organization man is ac- We have millions of inarticulate tually living a pressured, corpor- people massed together as the will- ate life, somewhat more refined ing or unwilling tools of a few and benevolent, but fully as regi- power-hungry men, afraid to pro- mented as that of the union man. test the strangle hold if they want A high premium is put upon being to, and, with the exception of the sociable, agreeable, cooperative, few states where there are right- contributing to the harmony of the to-work laws, even prevented by group. He belongs to the right club law from getting out except at the and the right church; he drinks price of their jobs. It sounds pain- the right brands of bottled and fully like a sentence from Scrip- bonded “distinction”; he associ- ture: “All we like sheep are being ates with the right people; he is led. ...” In a striking phrase from conservative and moderate in his William Whyte, they are “impris- politics, his tastes, and his habits. oned by brotherhood” —not a His uniform is the gray flannel brotherhood of loving their fellow suit. He is expected to qualify for man, but of fear lest their fellows his position by being the very should hate and hurt them! model of intelligent, sociable ===== PAGE 48 ===== 46 THE FREEMAN September moderation as measured by stand- I don’t care for books or music ardized personality tests.- If he much. were to work, for instance, for one I love my wife and children. I don’t let them get in the way company which Mr. Whyte men- of company work! tions, he would have to refrain from letting it be known that he It is part and parcel of another has keen artistic and cultural in- litany that says: “Be loyal to the terests because, according to that company and the company will be company’s organizational pattern, loyal to you. ... There are a bunch “there is evidence that such in- of real people around here... and terests are detrimental to suc- they don’t want a man to fret and cess.” His life in the organization stew about his work....A man is a kind of latter-day monasti- who gets ulcers probably shouldn’t cism in which he takes “vows” for be in business anyway.” It is a life, and is surrounded by other creed and ritual that is rapidly re- organization men upon whom he placing the traditional American is dependent for his sense of well- deal of independence, freedom of being, his prestige, and his future. conscience, and individual initia- ) ] tive. A Social Ethic It is based, for one thing, on the Now, there always have been peljef that the source of all crea- organizations, and organization is tive achievement is not the indi- necessary in order to get things vyjdual but the group. Creative done; but what is appearing today work and major undertakings are is what Mr. Whyte calls a “social. Jone by committees, by discussion ethic” that is a kind of unwritten ground a table,” somewhat after but binding creed by which the in- the idea of the old ditty: dividual’s life is run. It even has a litany which is recommended memory work for anyone who wants to fit in with the organiza- tion pattern: The more we get together, together; together, The more we get together, The happier we will be! The individual no longer counts; his mind must fit in with the group mind, like a cog in the nicely bal- I like things pretty much the anced working of a watch. While way they are. he should be bright, he must not I never worry much about be so bright as to outshine the anything. others ;- while he should be origi- I loved my father and my mother, but my father a little bit more. ===== PAGE 49 ===== 1957 THE SLEEPING CAT 47 nal, he must not be so disturbingly such harmonious organizational original that he draws attention to life begins in school, initially on himself or subjects the others to the elementary level and reach- shock. If by chance he should be ing its triumph in college, where a genius, he must be careful not adjustment to the group is more to show it. highly valued than personal And then, for another thing, this achievement. Thus it is that Pro- new “social ethic” of organized fessor Jacob's study of Changing living and working justifies itself Values in College revealed some by the belief that the most impor- rather startling and disturbing tant need of man is belongingness. things. Young people, he finds, are Man needs to feel “at home” with no longer driven by personal ambi- his fellow man in a group solidar- tion; they are ‘gloriously con- ity. Conflict between the individual tented” with things as they are, and group is evil, and any indi- and they accept the “conventions vidual who fails to adjust to, or of the contemporary business soci- cooperate with, the group is a mis- ety as the context within which fit, no matter how great his abil- they will realize their personal de- ity. What is sought is “an environ- sires.” Their desire is no longer to ment in which everyone is tightly get rich or to excel, but simply to knit into a belongingness with one be comfortable. “No life in the ul- another, one in which there is no cer belt for me,” writes one young restless wandering about but rath- man; and another says, “Why er the deep emotional security that struggle on my own when I can comes from total integration with enjoy the big psychological income the group.” The watchword is “be- of being a member of a big out- ing part of the team,” and to fit?” American youth no longer achieve it is what is called “human looks for frontiers to push back; relations.” At all costs, and by all it seeks, instead, to swim along in means, especially psychology and the wake of a prosperous profes- “social engineering,” the indi- sion or corporation. And the girls vidual must be adjusted to and want husbands who are ‘“ambi- submerged in the organization. tious but not dangerously so.” The individual is so blended into the group that his thought and ac- No Religious Guide tion become a reflection and echo Religion plays a vaguely defined of the group. He is to become the part in the thinking of the youth homogenized man! preparing to adjust to corporate And the process of training for life, but, according to Professor ===== PAGE 50 ===== 48 THE FREEMAN September Jacob’s findings, they do not ex- to standards of excellence but the "pect this religion to guide and gov- lowest common denominator, ern decisions in the secular and whose level is cultural mediocrity. working world; such decisions are We could talk about the disturb- to be “socially determined.” In ing and challenging phenomenon other words, as David Reisman of mushrooming big-city suburbs, characterizes them, they are which one writer calls “a vast com- “other-directed.” Not God or re- munistic female barracks,” and ligious principles but the opinions which Mr. Whyte rather acidly of others are their guide to con- calls ‘packaged villages which duct. In the new era of ‘“other- have become dormitories” of the directedness” into which we are organization man. moving, an individual puts out Perhaps all this is somewhat ex- feelers, as it were — a kind of social aggerated, but if it is true to any radar — with which he is able to degree at all, it is important to pick up the signals from other peo- examine it critically from the point ple as to what they think and feel, of view of our American and and adjust accordingly. He doesn’t Christian heritage and decide express strong differences of opin- which it is we want. ion; he is better off if he has no strong opinions; he is a “yes” man, The Christian Ideal a conformist, following the crowd, We have to recognize at once, doing what he does because with William Kirkland, that eriti- “everybody does it.” cizing this new and subtle collec- Well, we could go on and on. If tivism from a Christian point of we had time, we could add to this view is tricky. At first glance it picture the pathetic herd-minded- seems to be exactly what Christi-- ness of the teen-ager whose most anity, under the influence of what powerful compulsion is the ap- was called “the Social Gospel,” has proval of the group or gang, and been preaching for at least the whose deepest agony is to be out past forty or fifty years, and whose of step with, and socially unaccept- roots may be found in the very be- able to, his fellow teen-agers. We ginnings of the Christian move- could talk about the mass-produced ment. The idea of community, with culture being purveyed by our its emphasis upon cooperation, fel- marvelously efficient media - of lowship, togetherness, and belong- mass communication — television, ingness, is an ancient and honor- radio, newspapers, and popular able Christian ideal. Christianity magazines — whose appeal is not has always been opposed to selfish ===== PAGE 51 ===== 1957 THE SLEEPING CAT 49 self-centeredness, to the ruthless of the individual to “an idolatrous individualist who has no concern worship.of organization,” whether . for the rights and feelings of it be a labor union, a corporation, others, and to the glory-grabber governmental bureaucracy, or even and the arrogant. Christianity has a church or a council of churches, always made high virtue of humil- then the issue is clearly drawn. ity, obedience, and self-sacrificing willingness to serve. At the foun- The Sanctity of the Individual dation of Christianity is the ideal For the emphasis that Jesus of love which has always included made, and which has been central “togetherness” with fulfillment of in our American and Christian the desire to belong in a sacred heritage, is upon the sacredness fellowship, either family or church. . and uniqueness of -the individual. Why not say, then, that all these Can you imagine Jesus, himself a tendencies toward cooperativeness, carpenter, belonging to a union living in and for the group, hum- against his will? And, if he be- bly submitting oneself to organiza- longed, can you imagine his stand- tion, belonging to something big- ing for the skullduggery, the coer- ger than oneself, are the actual cion, and the regimentation with- fulfillment of what Christianity out loudly proclaiming his protest? really stands for? Rather than re- He would take a whip to dema- sist it, why not bless it? gogues of labor just as fiercely as It is a fine line that marks the he did to the money-changers, even difference, but it is a line that though it meant being crucified. I must be sharply drawn and clearly cannot help thinking of the simi- seen, for it is ultimately the differ- larity in principle of what hap- ence between freedom and slavery. pened to Christ and Victor Riesel! It is, indeed, highly desirable and And, to be sure, Jesus had his thoroughly Christian that people own organization, and he started be able to get together and work the Church. But he saw his band together — the Church itself de- of disciples as a group in training, pends upon it — but the question preparing to go out, as they finally at issue is whether the individual did, on their own; and he respected or the group comes first, whether their individuality even though the individual exists to serve the Peter disputed and Thomas doubt- group, or the group to serve the ed and all of them often argued individual. If it is true, as Mr. among themselves. The bond they Whyte contends, that we are wit- had in a common loyalty was not nessing a shift from the primacy intended to obscure and overwhelm N\ ===== PAGE 52 ===== 50 THE FREEMAN September their differences. The Christian does not cooperate just for the sake emphasis upon community, when of being cooperative and therefore it has been true to itself, has al- to be known as a “regular fellow”; ways been upon voluntary, freely he cooperates only with what is chosen association. The tie that right and good, and, so far from unites Christians is not an “im- cooperating with what his Chris- prisonment to brotherhood” but a tian conscience cannot approve, he common devotion to God, in which will fight. So far from being a con- each approaches God in a way that formist, the Christian who follows is intimately and uniquely per- his Lord is not afraid to be, if sonal. It is this vertical and per- necessary, the most forthright of sonal reference to God which is nonconformists. He is not inter- finally the only defense of freedom ested in doing what the crowd against the horizontal levelism of wants but what God wants. The the collective society! Eleventh Commandment that says : } “you must adjust” is not a rule for What Is Right? the Christian’s code of conduct. So Here, then, are the differences long as there is evil in the world, between American-Christian indi- and also so long as there is to be vidualism and the new “social respect for individual differences, ethic” which is replacing it: The he can never be “adjusted” in the sensitivity of the individual is not sense of “fitting in” with every- to the other person’s opinion by thing and everybody around him. which he therefore determines his His peace is not in mutely accept- own opinion; his sensitivity is to ing whatever is, no matter how the other person’s wisdom or need outrageous or rotten; his peace is whereupon he seeks help or offers in doing what God commands his his help. He does not ignore pub- conscience. lic opinion — even if he wanted to, it is difficult to do, and, indeed, he To Save One's Soul seeks to influence it to holy pur- Anything collective that sub- poses — but his conduct is finally merges or denies man’s freedom, decided by the will of God as he any group that uses any form of sees it. If the group moves in. a compulsion to coerce his opinion direction that he believes is con- or his silence, any organization trary to the will of God, he will not that violates or shows no respect “go along” in order to be agree- for his independent selfhood, is a able; he will resist the group and, menace and a betrayal of his status if necessary, break with it. He as a son of God. Above all, in ===== PAGE 53 ===== 1957 THE SLEEPING CAT bl everything he does or refrains God’s concern is only for persons from doing, the Christian will pre- fulfilling themselves as persons, serve the integrity of his own soul. and the group must not be the The word of Jesus is emphatic and master but the servant. crucial for everyone who believes Such is our belief as Americans in freedom: “What shall it profit and Christians. Heaven help us if a man if he gain the whole world we surrender that belief to the and lose his own soul?” Para- subtle seductions of the herd mind. phrase it any way you wish: What Let us put a bell on the sleeping shall it profit a man to gain all cat before it rouses and becomes the security in the world if he can strong enough to devour us like a no longer call his soul his own! race of mice! LEI .Concealing the Coercion IT IS POPULARLY BELIEVED that we ness; they knew what they were car- have tried liberty and found it want- rying around on their backs. But in ing. The misplaced faith in govern- a democracy we feel that the govern- ment is largely based on the delusion ment is us, and so we can excuse that every evil suffered during the whatever government does by say- past century has been due to too ing that “we are doing it to our- little government and can be cor- selves.” Or, if we are more sophisti- rected by increasing the scope and cated, we say that the government functions of political action. Through- is “ours.” And again, whatever gov- out history people have displayed a ernment does is excused, because, we pathetic faith in government, mis- ask, who has a right to tell us what understanding its true nature. We to do with what is ours? have chosen to disregard the warn- For these and other reasons, we ing of George Washington, who said: succeed in concealing the coercive “Government is not reason, it is not nature of all political action from eloquence — it is force! Like fire, it even ourselves. Government in ac- is a dangerous servant and a fearful tion always operates with undertones master!” In the final analysis gov- of violence, either overt or covert, ernment action is coercive, but in a and this makes it an inappropriate democracy most people overlook this. instrument to accomplish all the When the government was a mon- goals politicians promise and peo- archy or an oligarchy, it was easy ple demand. for the people to recognize its other- BEN MOREELL, Pi in the Sky ===== PAGE 54 ===== Let's 'D, St. Louis Globe Democrat ple’s money without their consent comes pretty close to legalized stealing, if it isn’t that already — I would like to bring up one even though it may not be so re- \ To THE EDITOR: point, which I never hear men- garded. : tioned, concerning the highly con- It would indeed be a great oc- troversial river front memorial: casion, in keeping with the spirit ! Who is going to pay for it? The of those whom we wish to com- answer, of course, is obvious —the memorate, if St. Louis took the bit } United States government. But may between her teeth and paid her I dig a little deeper? Who should? own total bill for whatever project | If the citizens of St. Louis and was decided upon. This is the sort § the surrounding country haven't of step, if enthusiastically seized enough pride in the exploits of their upon, that might conceivably spark J forebears in opening up what was a counter-movement against the § then new territory, to pay for it growing “grab-bag” practices of voluntarily, if they'd rather run to communities, pressure groups, and { ‘Washington — or to any other gov- other causes that seek to unload ernmental force — with their hands the cost of their proposals on ¢ out, the justification of any proj- others. Such practices, no matter y ect would seem highly doubtful. It how rationalized, can’t help re- q would appear as if the sacrifices sulting in eventual calamity for all and hardships of those early pio- of us unless stopped. neers are not sufficiently appreci- Wouldn't it be refreshing for ated by their offspring for the the people of St. Louis to show ) latter to put up the necessary pro- enough initiative to take over the ceeds themselves. leadership in such a venture? Such In addition to lack of pride and 3 memorial, whatever it be, would self-respect, if federal funds are indeed have a true significance allocated here, is there any reason rather than be just another some. { why all other communities in the thing-for-nothing deal, the financial country shouldn’t have similar proj- basis of which would make our ects paid for by federal funds? forefathers (the very people we How can we justify using the co- ish to memorialize) turn over in ercive power of government to pay their graves. for our project and yet reject its use when similar demands are made by others? Such use of other peo- June 19, 1957 H. F. LANGENBERG —~ n — a “a _ ” . Mr, Langer, ber, rg is 9 of Reintldr"§ Ga, ardne¥, SE, Louis, ===== PAGE 55 ===== out FREE - Reality or Cliché OUR FREE ECONOMY, strictly speak- to his ability and to each accord- ing, is as unreal as a unicorn. ing to his need” is the slogan Too many people still believe which best describes a purely com- that our economic system was de- munistic system, and it was such signed by English colonists who a system that the Pilgrim Fathers settled here to enjoy the freedoms introduced here some two cen- which were denied them in turies before Karl Marx was born. Europe. With all due respect for They did so — if I may needle my our Founding Fathers, that notion ultraconservative friends a bit — is quite wrong. Most of our pres- because in a normal family group, ent ideas concerning freedom were goods are produced and distrib- «developed on this continent. For uted in the communistic fashion, instance, the Puritans came here, and they tried first to operate as as some wit observed, ‘“to worship one big family. ‘God as they pleased — and make Equipped with our hindsight, it everybody else do the same.” In is easy to see why their system their theocratic government, failed. But the Fathers, though Quakers, “Papists,” and other dis- they made mistakes, were not senters were excluded, or treated stupid, and they soon corrected as second class citizens. The Puri- their errors. They found that tans had their considerable vir- their system provided them with tues, but religious tolerance was a ration of only a quarter of a not one of them. pound of bread a day per person; As to economic freedom, you may that the people complained of recall that in both Massachusetts being too weak to tend the crops and Virginia, the Fathers first as they should; that although they established a communistic system. were deeply religious, they had be- Food was collectively grown and gun to steal from each other. The stored in a common warehouse colonists seemed doomed to extinc- from which it was distributed ac- tion. cording to need rather than work How the Plymouth settlers performed. “From each according abandoned their communistic sys- Dr. Hoover is Professor Emeritus of Economics, Mills College, and a member of the Oakland City Council. 53 ===== PAGE 56 ===== 54 THE FREEMAN September tem and established individual ini- rejected communism, neither they tiative has been told by Governor nor their descendants ever Bradford, in language every achieved complete economic free- American should read. He records dom. In all the colonies there were that the colonists “began to think half-free workers known as “in- how they might raise as much dentured servants,” and until the corn as they could...that they war between the states, most of might not still thus languish in our Negroes were slaves. Three misery.” And so, in 1623, “after centuries prior to the New Deal, much debate of things,” it was de- there were governmental controls cided that “they should set [plant] of apprentices, prices, and wages. corn, every man for his own par- ticular, and in that regard trust to Complete Freedom Never Achieved themselves... and so assigned to In this “land of the free,” we every family a parcel of land.... have never been allowed to buy This had very good success; for freely in foreign markets. All gov- it made all hands very indus- ernments seem to restrict foreign trious.” At harvest time, “instead trade as naturally as a duck takes of famine, now God gave them to water. There is some quirk in plenty ...and the effect of their our minds which makes us believe particular [private] planting was such restrictions affect foreign well seen, for all had, one way or sellers only. We forget that protec- another, pretty well to bring the tive tariffs are designed to enable year about, and some of the abler our privileged domestic producers sort and more industrious had to to exact from us higher prices spare, so as any general want or than would otherwise be possible, famine hath not been amongst and that they do it only too well. them to this day.” Whatever else we may be, we are It can hardly be said of the all consumers, and the freedom to pious Fathers that they practiced buy at the lowest possible price is, what is now called Godless Com- perhaps, the most important of all munism. But they certainly prac- the economic: freedoms. To win ticed communism, nearly perished this freedom we must recognize of it, and learned a lesson which, - that international trade is as much apparently, each generation must in the public interest as is domes- learn for itself, as we seem incap- tic trade. able of learning from the experi- In our own country, some per- ence of others. sons insist that because of the But if the Pilgrim Fathers soon high rates of our income tax, so- ===== PAGE 57 ===== 1957 OUR FREE ECONOMY 55 cial security program, or a few Power in the Market Place federal adventures in the building Free markets are the core of of multi-purpose dams, we are free economies, and markets are crossing the divide between free- free only if traders are forbidden dom and socialism. If this is bad, to exercise monopoly power. The then the alarm should have been use of monopoly power by the sounded long, long ago. sellers of goods has long been for- In many of our communities we bidden by our state and federal have long had what the British governments. radicals contemptuously called Do the objections to monopoly “gas and water socialism.” The prices for goods apply equally to people of our community recently monopoly prices for the services of voted to create a new government workers? On this question, opinion to provide local transportation, is sharply divided, and we are all and another government may be tempted to sweep it under the rug, created to provide rapid transit. along with the other questions that Not long ago the citizens of Qak- are “too hot to handle.” However, land voted to have their city ac- now that several of our larger quire parking lots to be operated unions have the power to shut in direct competition with lots down entire industries if their now privately owned. This, to me, wage demands are not met, we is a socialistic venture, unless may have to examine proposals for words have lost their meaning, but limiting such power. our business community seemed Thus far, much of the argument to be for it, and few citizens were about trade unions has been cloudy frightened by it. For some dec- or self-serving, and some of it ades, in this same area, we have has been hypocritical and intel- all been drinking socialistic water, lectually dishonest. For example, brought to us by the East Bay union leaders argue that it is im- Municipal Utility District. Munic- possible to fix a monopoly price ipal parking lots are just another for labor because labor is not a example of the “downtown social-. “commodity”! And what of our ism” that business leaders demand. business leaders who profess to Federal government policies of ‘believe in unions” but are en- recent years have shown a strong raged whenever they strike or in socialistic trend, but it also is true any other way use the power for that much of our authentic social- which they are organized? Can ism is to be found at the local gov- our industrialists believe that it is ernment level. all right for unions to have power, ===== PAGE 58 ===== 56 THE FREEMAN September provided they seldom or never use I can find no warrant for such an it? How far they are from Lord appropriation in the Constitution, Acton’s understanding of the cor- and I do not believe that the power rupting influence of power! and duty of the General Govern- ment ought to be extended to the re- The Role of Pressure Groups lief of individual suffering which is in no manner properly related to the ’ i. . public service or benefit. A prevalent has spread rapidly. The public tendency to disregard the limited treasury is now fair game for mission of this power and duty shipbuilders and ship operators, should, I think, be steadfastly re- airlines, home buyers, pensioners, sisted, to the end that the lesson veterans, and that amorphous but should be constantly enforced that politically appealing group, the though the people support the Gov- “little businessmen.” State and ernment, the Government should not local governments got into the act support.the people.... by demanding federal assistance Some may find President Cleve- in the building of local roads, air- and’s notions a bit old-fashioned, ports, sewage disposal plants, and put he had a combination of gump- schools. Recently, the “underde- tion and courage that is never too veloped” countries have joined the plentiful in political circles. Here receiving line, asking their “fair a5 a Democratic President, share” of the inexhaustible supply standing on principles, refusing to of dollars which the Washington ge tax revenue to buy a few magicians are to conjure up. measly seeds for drought-stricken To illustrate the profound f4rmers in a democratic state. change that has taken place in our That was only seventy years ago, thinking about the proper role of 3 short time in the life of a nation, the federal government, let me put time enough for our govern- quote President Cleveland's mes- ment’s policies to be changed al- sage to the Congress, dated Feb- post beyond recognition. ruary 16, 1887. The pressure group technique Obstacles to a Free Economy I return without my approval House Bill No. 10203, entitled “An Act to enable the Commissioner of : d Agriculture to make a special dis- - €conomy 1s that too many of us do tribution of seed in the drought- not know what a free economy is, stricken counties of Texas, and mak- NOT the steps to be taken if we are ing an appropriation (of $10,000) ever to have one. For example, our therefor.” relative prosperity is too often ex- A major explanation of our fail- ure to achieve a completely free ===== PAGE 59 ===== 1957 OUR FREE ECONOMY 57 plained by our “unlimited re- world. Goods move freely from sources,” our ‘“American Know any part of the United States to How,” or the diligence of our any other part, without tariffs, workers. currency controls, or any sort of The notion that North America governmental interference. This is better supplied with natural re- enables production to be concen- sources per square mile than is trated where conditions are most Western Europe is one of those favorable. A free market of con- persistent myths which economic tinental proportions has brought geographers have not been able to forth our mass production indus- destroy. Even if North America tries in which the division of labor were more favored by nature than can be carried further than in any the other continents, it would be other country, and for this reason something for which we should be the per capita productivity of our humbly grateful rather than pre- workers is the highest in the tend that it was we who made it world. SO. What even a limited freedom As to our vaunted “Know How,” can do for a nation’s economy has the notion that our production been clearly demonstrated here techniques are unknown to Euro- and in Canada for several genera- peans is quite untenable. There is tions and, more recently, in West- no “iron curtain” which prevents ern Germany. With such examples such knowledge from flowing on both sides of the Atlantic, it freely across the Atlantic. As for would seem that the underde- the diligence of our workers, that veloped and over-socialized coun- ‘may help explain why we are more tries could make an easy choice be- prosperous than some countries, tween free enterprise and collec- but it will not explain why we are tivism. However, the uncommitted more prosperous than the peoples peoples will be confused as long as of Northern Europe, the only re- we attribute our economic achieve- gion with which comparisons ments to our natural resources, should be made. our “Know How,” or the unusual diligence of our workers, instead of to our free market, free enter- The economists whom I respect prise system. believe that our relative pros- Those who ignore how freedom perity is chiefly due to the fact has contributed to our prosperity that our economy operates within recall the old quip that Columbus, the largest free trade area in the when he sailed from Spain, did Large Free Trade Area ===== PAGE 60 ===== 58 THE FREEMAN September not know where he was going; called a Great Debate of world- when he got there, he did not wide proportions, and we are more know where he was; and when he likely to win it if we stress our returned, did not know where he economic differences rather than had been. There were obvious rea- our theological ones. We are living sons for the ignorance of Colum- in a scientific age, and the West- bus, but these who misread our ern World abounds with agnostics, history have only themselves to rationalists, and others who have blame. little interest in religious contro- . . versy. They, together with the The Choice non-Christian millions of Asia and It is now accepted doctrine that Africa, will remain indifferent to the “cold war”.is not to be the a conflict represented to them as prelude to a hot one, but is pri- one between Christianity and Ra- marily a struggle for men’s minds. tionalism. To state the issue in In view of the weapons now avail- these terms might well foredoom able to both sides, we must keep our efforts to failure. If we are to the struggle on that level if there convince the world that free enter- is to be much hope of survival. prise is preferable to socialism, we What are the two ideologies now must first understand these sys- competing for world favor? As I tems better than we now do. Re- see it, the choice which humanity peating the cliché that the issue is making is essentially between is between a slave economy and a two economic systems, one based free economy is not enough. In the on the freedom. of the individual Western World, including our own and the other based on govern- country, there is still so much of ment ownership and control. government ownership and con- Certain .groups believe the trol that our talk of freedom has struggle is essentially a theologi- a hollow sound. cal or philosophical one, with Christianity arrayed against what is called Godless Communism. From propaganda by word we However, with all due respect for must switch to propaganda by those who hold this opinion, I be- deed. For example, we must cut liéve the outcome of the “cold war” our agriculture free of the stran- will be determined chiefly by the gling controls which restrict pro- world’s opinion of the merits of duction, deprive our farmers of the two economic systems involved. foreign markets, and take from us What we are witnessing may be as consumers and taxpayers some By Our Actions . .. ===== PAGE 61 ===== 1957 OUR FREE ECONOMY 59 billions of dollars each year. We assume that we have finished the must also undertake the elimina- job, and we go about exchanging tion of all governmental restric- clichés and congratulations with tions on international trade as well each other, instead of observing as domestic trade. Acts such as how far short we are of the mark. these will do more to convince Too much of the propaganda for others that we are committed to our way of life seems designed for a free economy than will any minds that are receptive to our amount of costly propaganda. “singing commercials.” To achieve Finally, to achieve a completely and maintain freedom, in econom- free economy, we must give more ics or any other field, will require thought to the essentials of it than more intellectual effort than we is now the fashion. Too many of us: have thus far given it. oo 0 AN ARGUMENT AGAINST PROGRESS FREDERIC BASTIAT (1801-1850) SOME YEARS AGO when I was in vent any increase of Portuguese Madrid, I attended a session of the grain into Spain.” Spanish parliament. The subject of A short while later, I was in Lis- debate was a proposed treaty with bon, and also attended the parlia- Portugal for improving the Douro ment there. The same treaty was River to facilitate navigation be- being discussed by the Portuguese tween the two countries. One deputy legislators. A noble hidalgo spoke as argued as follows: follows: “If the navigation of the Douro is “This proposed project is absurd. improved, commerce between our At great expense, we have placed country and Portugal can be car- guards along the banks of the Douro ried on at less expense. Thus the to prevent Spanish grain from in- grain of Portugal will be sold in our vading our markets. Now, at the markets at a lower price than is now same time and also at great expense, the case. This cheap Portuguese it is suggested that we facilitate the grain will compete with our own invasion of that grain by improving national grain industry. Therefore, navigation on the Douro! This is an I oppose this navigation project un- example of inconsistency to which I less our government promises to cannot assent. Let us leave the raise the tariff high enough to pre- Douro in its present condition.” Translated by Dean Russell from Selected Works of Frédéric Bastiat, Volume 1, p. 92; Guillaumin, Paris, 1863 ===== PAGE 62 ===== A REVIEWER'S NOTEBOOK The New Slavery JOHN CHAMBERLAIN ipation in World War I. Prior. “to 1917 the American labor move- ment — or at least that large part of it which constituted the Ameri- can Federation of Labor — es- ONALD R. RICHBERG, labor chewed politics. It believed in free lawyer and boss of the NRA collective bargaining with man- during its last stuttering days, has agement, without asking that the been through the wars. He co- State intervene either to set the authored the Railway Labor Act stage or to affect the result. On of 1926, he knows the history of Election Day labor followed Supreme Court decisions affecting Samuel Gompers’ prescription: It labor, and he has a good command “rewarded its friends and pun- of economics. Accordingly, when ished its enemies.” But the union he writes -a book called Labor members did this as individuals — Union Monopoly: A Clear and and they might (and often did) Present Danger (Regnery, $3.50. differ with the union leaders over 175 pp.), it is a pretty clear in- the definition of “friend” and dication that the labor movement “enemy.” - has “come full circle” (Mr. Justice In World War I, however, the Jackson’s phrase for it) and is federal government took over the now wielding a power which was railroads and put them under a once popularly ascribed to the commissar, namely, Secretary of “trusts.” the Treasury, William G. McAdoo. As Mr. Richberg tells the story, This put the State into the busi- the whole contemporary problem ness of dealing with both labor had its origins in America’s partic- .and management and exercising 60 ===== PAGE 63 ===== 1957 A REVIEWER’S NOTEBOOK 61 the final right of enforcing a “pub- nisms as the Railway Labor Act lic” decision on both of them. Mc- and the Clayton Act are no longer Adoo encouraged the organization utilized in the proper spirit. Labor of nonoperating railway workers has been using its “charter” not to the point where labor got the as instruments of freedom, but as idea that the power of government repressive “class” legislation of could work magic if one could only its own. capture and hold it for keeps. The blame for the misuse of the After the war, railroad labor put Clayton Act he places squarely on the new theory to the test; and in the U. S. Supreme Court. Accord- 1926 it succeeded in getting. the ing to the late Chief Justice Railway Labor Act through both Charles Evans Hughes, the fram- houses of Congress. This was the ers of the Clayton Act merely in- “entering wedge’; it made Wash- tended to forbid application of the ington a “third party” to labor dis- antitrust laws to unions which putes, and the struggle was on for were “lawfully carrying out... the control of the “third party” legitimate objects.” But the opin- mechanism. ion of Chief Justice Hughes was destined to become the minority view of the Supreme Court. Today Mr. Richberg sympathizes with the Clayton Act is interpreted to the unions’ general position in the mean that unions are exempt from “dark age” when injunctions were the Sherman Act under any and freely granted to put an end to all circumstances, thus giving la- local violence in labor disputes. He bor a total immunity which was still thinks the judiciary sided al- never intended in the days of together too flagrantly with the Woodrow Wilson. factory and mine owners in the : days when the State of Pennsyl- Coercive Restraints by Unions vania maintained its Coal and Iron As things stand now, a labor Police. Judging from the tone of union can get away with a whole his book, he still regards the Clay- variety of monopolistic restraints. ton Act, the so-called ‘“Magna Electrical workers in New York Charta of labor,” as a good thing have made deals with employers to in balance. But now that labor is exclude the products of certain “top dog’ after twenty years, dur- manufacturers, and to control ing which the judiciary has sided prices. There is even one notorious all too flagrantly with the union instance in which a union has re- bosses, he thinks that such mecha- fused to permit its members to The Pendulum Swings ===== PAGE 64 ===== 62 THE FREEMAN September work for one particular employer ship, its methods, or its philoso- . and simultaneously refused to al- phy, he has no power to check the low this employer's self-chosen tyranny of a majority. men either to work on a nonunion The unions have argued that basis or to join the union after ‘majority democratic rule requires being hired. the minority to support the ma- This effective denial of the right jority,” and they point to citizen- of an entrepreneur to conduct his ship in a nation as analogous to business on any terms has been en- membership in a union. But the forced by the State, much to the analogy is faulty, for in a free na- horror of the late Mr. Justice Rob- tion one can always organize an ert Jackson. Said Jackson in a opposition with impunity, and one strong dissenting opinion: “This is not required to contribute to court now sustains the claim of a the political support of the major- union to the right to deny partici- ity party or its ideas. As Mr. Rich- pation in the economic world to an berg puts it: “Those who espouse employer simply because the union compulsory unionism are essen- dislikes him. This Court permits tially adopting the communist the- to employees the same arbitrary ory that there should be only one dominance over the economic party to which everyone should sphere which they control that give allegiance and support.” ~labor so long, so bitterly, and so When unions achieve an effec- rightly, asserted should belong to tive monopoly status, the drive to no man.” “industry-wide bargaining” be- : comes virtually irresistible. “In- Compulsory Membership dustry-wide bargaining” takes no It is over the question of “com- account of local conditions or the pulsory unionism: the new slav- means of individual employers. ery” that Mr. Richberg really Under industry-wide agreements waxes indignant. The closed shop, the wage scale of the most pros- or the compulsory union shop, he perous companies tends to be notes, delivers a worker to a union forced on all companies in a given organization without recourse. field. Faced with the necessity of This means, in practice, that union paying what is for them an uneco-- members must follow their leaders nomic wage, the small, weak com- even against the dictates of their panies must seek some sort of pro- own individual consciences. If a tection. One way of getting pro- man cannot resign from a union if tection is to merge with a bigger he is displeased with its leader- unit of the industry. Another way ===== PAGE 65 ===== 1957 A REVIEWER'S NOTEBOOK 63 is to crawl gratefully under a to compel political action,” or “price umbrella” supplied by a big “strikes without a preceding rea- “competitor.” The big fellows can sonable effort to avoid a strike,” get away with “maintained prices” or “strikes conducted with the under industry-wide wage scales, aid... of criminal violence.” for they do not need to fear cost- Mr. Richberg sees many things cutting tactics on the part of clearly. What he does not yet see fringe companies which might, in (or make explicit) is that one can- a free labor market, hire men un- not go even a little way along the der special options. road fo statism without being Thus industry-wide bargaining dragged the rest of the way. The helps promote monopolistic stiff- original mistake made by the nesses in the economy and nar- American people was to permit the rows the customer’s freedom of government to run the railways choice. Labor suffers for two during World War I. This was ex- reasons: first, because it is itself pedient, it was a “national emer- a customer; and second, because gency” method of solving a prob- the “fringe” employer no longer lem. But it was not necessary. One has much of a chance to become a thing led to another, the conse- big fellow (and a big employer) quence of it being that not merely on his own. railway labor in particular but the labor movement as a whole finally Three Suggestions abandoned the Gompers’ philoso- Mr. Richberg offers three prop- phy of voluntarism. ositions to curb union monopoly. Thus the big oak from the little He would amend the Clayton Act acorn. Mr. Richberg should have (or the Supreme Court’s own “leg- been harder on his own brainchild, islative” extension of the Clayton the Railway Labor Act, than he Act) to make “the creation and has been in these otherwise ex- exercise of monopoly powers by tremely illuminating pages. ® o o labor unions . . . unlawful.” He would have Congress declare com- pulsory unionism to be a form of “involuntary servitude” within Any book reviewed in this Book Section (or the definition of the Thirteenth any other current book) supplied by return strikes “unlawful” when they are Catalogue on request. “strikes against the public health, THE BOOKMAILER, Box 101, New York 16 safety, and welfare,” or “strikes ===== PAGE 66 ===== A ...NOW SOMETHING iS BEING DONE ABOUT PARCEL POST SUBSIDIES eee H.R. 8108 IN THE HOUSE OF REPRESENTATIVES JUNE 13, 1957 - A BILL To provide for control by the Interstate Commerce Commission of the reformation of rates on fourth- class (parcel post) mail, and for other purposes. 1 Be it enacted by the Senate and House of Repre- 2 sentatives of the United States of America in 3 Congress assembled, That section 247 of title Most businessmen know what its own way —a recommendation parcel post deficits mean as an of the Hoover Commission. unfair burden on the taxpayer The bill, of course, will be fought . . . the extent to which govern- by those who are still thriving ment subsidies ignore the princi- on the special privileges granted ples of private enterprise. by present rates. A bill—H. R. 8108—has been There you have, in a few words, introduced in the House of Rep- the story of the new bill that resentatives . . . a bill calling for can mean far-reaching reform a study of parcel post service . . . by requiring the user of the and its cost based on sound com- parcel post system to pay his mercial accounting practices; rightful share. and then, on the basis of the For a free copy of an informa- findings, calling for rate reforms tive booklet, “The Truth About aimed at making parcel post pay Parcel Post,” write to: The Public Relations Division of RAILWAY EXPRESS AGENCY, INC. 219 East 42nd Street, New York 17, N. Y. 4 A PRIVATE ENTERPRISE IN THE PUBLIC SERVICE ===== PAGE 67 ===== LO Can you answer these questions ahout taxes? Q: Do you pay taxes in your electric bill? A: ves. About23¢ outof every dollar on the average family electric bill goes for taxes. Q: Does everyone pay this much tax in his electric bill? A: No. Several million Amer- ican families and businesses pay a far smaller tax—only a fraction of the tax you pay. A: Who are these “privi- leged’’ people? A: People who get electricity from federal government elec- tric systems. Q: Why don’t they pay the same taxes you pay? A: A strange twist in federal law exempts them from paying most of the taxes in electric bills that you pay because they get their electricity from fed- eral electric systems. Q: isn't that unfair? Shouldn’t every American pay his fair share of taxes? A: Yes. American standards of fair play call for each citizen to pay his fair share of taxes. America’s Independent Electric Light and Power Companies* *Company names on request through this magazine ===== PAGE 68 ===== FROM A LIBERTARIAN'S LIBRARY Ir TAKES no great psychological acumen to observe that we enjoy passing judgments on matters of which we know very little. This is bound up with our taste in configurations. Problems to which we have devoted scrupulous scrutiny and arrangements which we have delved into deeply offer no scope for application of the simple models that we inherently prefer. It is a relief to turn to problems of which we are ignorant and to which we therefore may apply our models. Be it noted that the greatest scientists who have mastered prodigious complexities are apt to come out with the most naive views on social problems, for example. Their minds are taking a holiday, reverting to the effortless and invalid judg- ment of seemliness. We could assume that those who are best aware of the difficulties of grasping a process in their own fields should be most chary of passing sightseer-judgments on other matters; but this is contrary to reality. Our affection for simple patterns is so basic to our nature that the more we must bow to the actual complexities of organizations we understand, the more we want to find simplicity in other organizations. From an essay, “Order vs. Organization” by Bertrand de Jou- venel, in On Freedom and Free Enterprise edited by Mary Sennholz, D. Van Nostrand Company, Princeton. 333 pp. $3.50.