===== PAGE 1 =====

IDEAS ON LIBERTY

APRIL 1959 |

Runaway Spending Brings Crisis in

Local Governments . . . . . . . Lawrence Sullivan 3 |
Tax Decalogue for the Welfare State . . H. P. B. Jenkins 9
The Complex World of Claudius Ptolemy . Edward Coleson 11
Who Is Watching You? . . . . . . . Ralphl. Woods 18
Human Rights Are Property Rights . . . Murray N. Rothbard 23 |
Money Talks . . . . . . . . . . Carlton Williams 27
Union Coercion and Your Newspaper . . Joseph E. Brown 32 :
The Dollar Will Be on the Defensive . . Lawrence Fertig 40
Private Investment Is Best . . . . . Reese Roeder 42
The Robins (A Poem) . . . . . . . AnnTerril 47
Modern Idol Worshipers . . . . . . Vollie Tripp 48
Samuel Smith’s Patriotic Song . . . . Alfred K. Allan 52 |
| Education and Freedom . . . . . . John Chamberlain 54 |
Other Books . . . . . . . . . . 58 |

THE FOUNDATION
FOR ECONOMIC EDUCATION, INC,

Irvington-on-Hudson, New York



===== PAGE 2 =====

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===== PAGE 3 =====

WHEN
"PUBLIC
POWER

Every time lobbyists for federal “public power” push a government
electricity project through Congress, you are taxed to pay the bill!

You and other Americans have already Yet they must know that America’s
been taxed about $5,500,000,000 to hundreds of independent electric light
pay for federal “public power.” That's and power companies are ready and
how much has been taken out of tax- able to supply all the electricity the
payers’ pockets and put into federal nation needs—without depending on
power dams and plants. your tax money.

But that’s just the beginning —if the How can this needless spending of
federal “public power” lobbyists have your taxes be stopped? As soon as
their way. They want more of your tax enough people know what “public
money—3$10,000,000,000 more—so that power” is really costing them, they will
government can take over a still bigger call a halt to it. The quickest way is to
share of the electric business. - spread the word among your friends.

America's Independent Electric Light and Power Companies

Company names on request through this magazine


===== PAGE 4 =====

THE

Teeman A MONTHLY JOURNAL OF IDEAS ON LIBERTY

APRIL 1959 Vol. 9 No. 4

LEONARD E. READ President, Foundation for
Economic Education

PAuL L. POIROT Managing Editor

THE FREEMAN is published monthly by the
Foundation for Economic Education, Inc.,, a non-
political, nonprofit educational champion of private
property, the free market, the profit and loss system,
and limited government, founded in 1946, with offices
at Irvington-on-Hudson, New York. Any interested
person may receive its publications for the asking.
The costs of Foundation projects and services, in-
cluding THE FREEMAN, are met through volun-
tary donations. Total expenses average $12.60 a year
per person on the mailing list. Donations are invited
in any amount — $6.00 to $10,000 — as the means of
maintaining and extending the Foundation’s work.

Accepted as controlled circulation publication at Irvington, N. Y., with
additional entry at New York, N. Y. Copyright, 1959, The Foundation for
Economic Education, Inc. Printed in U.S.A.

Additional coples, postpaid, to one address: Single copy, 50 cents;
3 for $1.00; 25 or more, 20 cents each.

Permission Is hereby granted to anyone to reprint any article in whole
or In part, providing customary credit Is given, except ‘The Dollar
will Be on the Defensive.”

Any current article will be supplied In reprint form If there are enough
inquiries to justify the cost of the printing.


===== PAGE 5 =====

SPENDING
Ziingo Chive do TEN §

Local
Governments

LAWRENCE SULLIVAN

ALL LOCAL GOVERNMENT in the $90 million a year in new taxes.
United States is in deep financial “No other Governor in the history
distress. Inflation is increasing of Massachusetts ever has asked
costs much faster than the cities, for so much in new revenues at
counties, and states can find new one time,” says the Massachusetts

sources of revenue. budget survey.

In their 1959 sessions virtually An official study in Connecticut
all our state legislatures face dif- found “the big problem is how to
ficult budget deficits. meet growing state expenses with-

The current deficit in California out operating in the red.”
ranges between $200 million and The Idaho survey concluded,

$250 million, the final figure to be “How to raise $15 million for

determined by administrative de- schools is a problem.”

cisions. From Illinois: ‘Lawmakers
With a budget of $2 billion for must scratch for new funds for

New York State, Governor Rocke- both hospitals and schools.”

feller recommended an increase in Maryland needs more new rev-

the state gasoline tax from 4 cents enues to finance a general in-

to 6 cents a gallon, plus higher crease in teachers’ pay promised

state income tax rates, and more last year.

local taxes on cigarettes. In all, Michigan faces a deficit of $65

new taxes requested total $277 million this year. The legislature

million a year. had before it 13 specific proposals
In Massachusetts, Governor for tax increases.

Furcolo asked the legislature for Montana faces a current deficit

of $5 million.
Mr. Sullivan is Coordinator of Information of : . a :
the U. S. House of Representatives. Oregon discovered a crisis In

3


===== PAGE 6 =====

4 THE FREEMAN April

her unemployment trust fund, plus per cent of the gross national
an embarrassing deficit in her product in 1946, to 9 per cent for

operating budget. 1956.
South Carolina faces a deficit Almost without exception since
of $15 million. 1953 all local and state govern-

Texas faces a deficit of $55 mil- ment units in Pennsylvania and
lion this year, and $74 million New Jersey have been operating
next year, if all presently author- in the red. Some now approach the
ized programs are expanded at the limits of their borrowing power.

rate now fixed by law. This Federal Reserve study re-
. Washington State faces a defi- lates the stormy meeting of a local

cit of $80 million this year. school board which demanded an
Other states seeking new rev- immediate new school.

enues to avert 1959 deficits are “But ends barely meet as it is,”

Alabama, Colorado, Georgia, Min- the treasurer interrupted. “How
nesota, Nebraska, New Mexico, are we going to pay for a new
North Carolina, North Dakota, building? We still owe a lot of
Ohio, Oklahoma, Rhode Island, money on the gym we built in
South Dakota, Wisconsin, and 1953. We'll have to have higher

Wyoming. taxes before we can take on any-
Washington, D. C. is no excep- thing more.”
tion to the rule for cities. Early in “I don’t think the public will

January a committee of the House stand for more taxes,” another
of Representatives warned the member of the board interjected.
commissioners for the District of “We've already raised taxes twice,
Columbia against their rapidly ex- and people are beginning to grum-
panding municipal payroll. “The ble.”
percentage of payroll increase in
the District of Columbia has gone Looking to Washington
up in recent years far more than U.S. Budget Director Maurice
in any other similar city in the H. Stans tells of a meeting to dis-
population class.” In 1952, Wash- cuss a new bridge in the Midwest.
ington D. C. carried 19,676 on the Part of the cost was to be borne
city payroll; the current total is by the city, state, and county, but
23,421. no division of allotments could be
A 19567 survey by the Federal agreed upon. “Everybody was un-
Reserve Bank of Philadelphia re- happy, and there was no solution
ported that state and local budgets in sight until one fellow at the
have increased from less than § end of the table suggested


===== PAGE 7 =====

1959 RUNAWAY SPENDING BRINGS CRISIS IN LOCAL GOVERNMENTS 33

brightly: ‘Let's get the money local budgets. Since 1946 city and
from Washington — then no- county populations have increased

body’ll have to pay for it.”” by roughly 25 per cent on national
In 1946 state and local spending averages.
was only 18 per cent of all gov- In most urban areas, per capita

ernmental spending in the U.S. income has increased upwards of
Today the state and local total 60 per cent since 1946. There is
makes 36 per cent of all public hardly a community in the country
spending. which could not afford to sustain
Three states in the Northeast normal growth in public services
and all their cities over 25,000 out of current income.
population went into the red by a But what community can cover
total of $1.4 billions during the the pinch of inflation, when it costs
four fiscal years, 1953-56 inclu- $2.46 today to duplicate what

sive. $1.00 brought in new construction
Growing deficits in Dixie were in 1945?
surveyed in the January 1959 bul- In 1945 hospital construction

letin of the Atlanta Federal Re- was estimated on the basis of $10,-
serve Bank. “State and local gov- 000 per bed. Today’s hospitals are
ernments borrowed at a record calculated on the basis of $25,000
rate in 1958. . . . The borrowing per bed.

trend of state and local govern- “Charge it!” appears to be the
ments ‘in the [Atlanta] District guiding mood of the city fathers
still appears to be upward....The everywhere.

demand for public services con- Thus, budget demands have far
tinues unabated and, in a sense, exceeded, percentage-wise, both
feeds upon itself. . . . Although population growth and improve-

some new sources of revenue may ment in per capita income. Ex-
still be untapped, they are cer- travagance approaching public
tainly dwindling. . . . The time, profligacy at the state and local
therefore, may be approaching levels is another grave factor in
when the public must choose be- today’s fiscal crisis. Local tax-
tween a school or a shiny new au- payers must take matters in hand.
tomobile, a sewer or a new tele- In many areas, grumbling tax-

vision set.” payers already are looking to their
political powder horns.
Public Profligacy A revealing incident epitomiz-

Population increase, of course, ing the Wallingford spending
justifies some annual increase in mood of local supervisors comes to


===== PAGE 8 =====

6 THE FREEMAN April

light in Montgomery County, mountain of deferred extensions
Maryland, a wealthy and booming accumulated during the depression
suburban area adjoining Washing- years 1932-42, when most cities
ton, D.C. For many years new and counties maintained their fis-
schools were located on b5-acre cal equilibrium only by avoiding
plots. Recent county regulations all expansion and renewal of
make the new area 30 acres per streets, alleys, and highways.
school — the legal limit on areas In most areas, however, these
taken by eminent domain. In one deferred highway demands over-
instance the school site alone, with lapped similar wartime backlogs
road frontage and storm drainage, in hospitals, schools, waterworks,
cost $10,000 per acre —or a total and fire prevention. Trying to
of $300,000 before ground was catch up all at once, during the
broken for the new school! last decade, with 25 years of de-
Many suburban counties across ferred demand plus a 25 per cent
the land today face critical short- population increase presents the
ages of schoolrooms. Yet scores of raw skeleton of today’s national
these same counties already have crisis in local finances.
launched junior colleges, extend-
ing public education through two First Things First
or four years of college, while Every- state and every local
some of their first and second board faces the stern task of per-
grades still are on split-shifts, or fecting a slate of orderly priori-
housed in quonset-type tempos. ties on public improvements. No
community can do everything at
once — today’s controlling mood.
New roads and streets neces- Extravagance must be curbed
sarily deferred during the war- through alert public auditing com-
time restrictions on building ma- mittees of taxpayers. With federal
terials, create another major prob- aid available in virtually every
lem in local finances. Since the facet of local operations, the ten-
war, auto registration has doubled dency to conceal real costs from
in most states. But no community local taxpayers is becoming a dan-
has yet caught up with this gerous national habit.
growth, plus the backlog of streets Trick budgets are strong en-
and highways neglected during the couragement to runaway spending.
years 1941-46. And all this high- Hardly a city, county, or state in
way development postponed dur- the U.S. today presents its annual
ing the war then fell on top of a budget in two columns headed in-

Roads and Streets


===== PAGE 9 =====

1959 RUNAWAY SPENDING BRINGS CRISIS IN LOCAL GOVERNMENTS 7

come and outgo. Instead, every by literally thousands of growing
budget is a maze of “segregated communities — the very core of the

revenues,” ‘earmarked funds,” ever-increasing wail for more and
“special purpose taxes,” ‘“statu- more systems of federal aid.
tory items,” and “restricted rev- But with the federal establish-

enues”’ — until the poor, befuddled ment currently in the red at $12
taxpayer has difficulty determin- billion a year, there are no longer
ing whether his community is any untapped revenues, anywhere,
really in the black, or hopelessly to supply the local deficits.
overboard with “deferred capital Total taxes in America today —
items.” federal, state, and local — take 28
It should not be necessary for per cent of the gross national
citizens to hire professional CPA’s product every year. And total gov-
to find out what their local budgets ernment spending consumes 30 to
add up to from year to year. 33 per cent of the gross national
Honest budgets, and straight- product. One reputable tax au-
away accounting statements pub- thority estimates that every em-
lished monthly by legal require- ployed person in America now
ment, would permit the taxpayers works until April 14 merely to pay
to know what their master plan- his year’s taxes. Then, on April
ners are doing to them from month 15, he starts to work for himself

to month. and his family.
Classical theories of taxation
Urban Renewal teach that no community can sus-

In many urban areas today new tain itself in a state of solvency
apartment buildings are being when the total tax burden exceeds
constructed which yield to the lo- 20 per cent of the gross product.
cal government roughly $150 a Americans have been paying more
year per unit in taxes. But each than 20 per cent since 1940. And
apartment gives, on national aver- today state and local expenditures
ages, 1.8 pupils to the public combined are increasing by more
school system. Each pupil costs than 10 per cent a year, and state
the county about $200 per year. So and local debt since 1940 has in-
each apartment adds $360 a year ‘creased at the average rate of 12
to the school budget, and contrib- per cent per year.
utes approximately $150 a year in Congressman Wilbur D. Mills of
taxes! This is jocularly called “ur- Arkansas, chairman of the House
ban renewal.” Ways and Means Committee, pre-

Such is the road traveled today sents vigorously the crux of the


===== PAGE 10 =====

8 THE FREEMAN April

revenue problem at all levels of since history began that there is
government: “In recent years one no end of human wants. Only the
popular way of imagining our- disciplines of civilization can hold
selves out of this problem has been public spending within the limits
to assume that the increase in of community resources. Tax-
revenues resulting from the payers are now aware that many
growth of the economy will out- of the welfare-state luxuries de-
strip government expenditures.” vised during the last quarter-cen-
Only one figure need be cited to tury are still carried on the cuff
explode this theory, Congressman of the public debt.
Mills insists; total public debt has True, some one group in every
increased steadily from $38.7 bil- community regards each program
lions in 1932 to $333 billions at of public service as indispensable
the end of 1958. to human felicity. Public belt-
During the same period, gross tightening means simply that each
national product has increased community must somehow arrive
from $56 billion a year to the at a solid public judgment on what
present $450 billion. the local treasury can afford.
During the last quarter-century Tested by this standard, every
our gross national product has program must have a controlling
been multiplied by 8 but total gov- relative importance. And that is
ernmental expenditures have been where the public belt-tightening

multiplied by 10. must begin — at the first program,
or extravagance, the community

Learning to Say “Nol” decides it cannot afford.
Only effective public disciplines There is an ancient adage in

can stop this headlong rush political science which teaches
toward inflation, national bank- that any government big enough

ruptcy, and chaos. to give the folks everything they
Obviously, we are all in for some want is big enough to take away
stern local budgets. everything they've got.
Somehow, we must devise, at Local budgets are more than a

every level of government, a sys- fiscal problem, more than an eco-
tem of buying only what we can nomic issue. Balanced budgets to-
afford. day are a moral issue of the first

Economists have recognized order. ® oo


===== PAGE 11 =====

TAX DECALOGUE FOR
THE WELFARE STATE

| ~ ' ONE GOLDEN RULE LEADS ALL THE REST:
. THE TAX THAT YIELDS THE MOST IS BEST.

" LET RACKING TAXES BE REPEALED,
SAVE THOSE OF SURE AND STABLE YIELD.

| ~ DIVERSIFY YOUR SOURCES; WHEN
, THE GOOSE IS NAKED PLUCK THE HEN.
\Y ~ DESIGN YOUR TAX WITH SNARES AND COILS
__: TO CATCH EVADERS IN YOUR TOILS.

V MAKE TAXES CERTAIN; LEAVE NO SCOPE
FOR ARGUMENT OR FOOLISH HOPE.

Vi " BE FAIR TO ALL; FROM SAINT OR SOT
Y ¥ | COLLECT NO MORE THAN HE HAS GOT.

) Vi | "' LET PAYMENTS BE CONVENIENT; WHEN
. A MAN HAS MONEY, CATCH HIM THEN.

oo Vi I " USE HIDDEN TAXES; PEOPLE FRET
~ WHEN THEY TOO PLAINLY SEE YOUR NET.

| X ALLOW APPEALS FROM THOSE WHO BALK;
i BUT TAKE THE TAX BEFORE THE SQUAWK.

X SEND TAX COLLECTORS OUT IN PAIRS;
AND KEEP A TRAINING CAMP FOR SPARES.

H. P. B. JENKINS
Economist at Fayetteville, Arkansas


===== PAGE 12 =====

“N\ EARTH | THE
+7) STATIONARY
1%] CENTER OF

THE UNIVERSE

we 4 J
p ’
/
Pid ‘
- 7 ’
/

. -
ad THT ed

’ ~~ -
a . ' Se. em

N TH PL
2 ~~ Mo TRACED ©Y S
o Ying IN TWO one!

Fig. 1. Ptolemy's picture of the structure and relative motions of the members of the universe.

Reprinted with permission from Man and Ris Physical Universe
by Richard Wistar. John Wiloy & Sons, Inc., 1953.


===== PAGE 13 =====

omplex World of

CLAUDIUS PTOLEMY

in reasoning, developed to help science students understand the political economy.

EDWARD COLESON

IF THERE IS ANYTHING the “mod- paleolithic past. He is busy trying
ern” prides himself on, it is the to peer beyond the horizon into
complexity of the world of today. our “Fantastic Future.” This
You hear it on every hand. Poli- earthly paradise, just down the
ticians are sure that the states- road, will make our present com-
men of bygone ages would have plex world seem as simple by con-
been completely baffled had they trast as the “horse and buggy
been confronted with the prob- days” appear to us now, at least
lems of “our modern, complex so we are told.

age.” Many educators seem even Actually, we have nothing on
at a loss to know what to teach or the old-timers. They often got
emphasize in school in “our be- their world snarled and tangled
wildering age of rapid change, enough to please the most fastid-
when books are obsolete even be- ious devotee of the complexities of
fore they get the covers on.” The modern culture. For instance,
man in the street, the average there was old Claudius Ptolemy
citizen, if there is such a person, who flourished, as the poets say,
may yearn to return to a hypo- during the first half of the second
thetical Golden Age of Simplicity century A.D. He must have really
which is supposedly gone forever. flourished, too, as he is credited
But, more than likely, the ordi- with having had more influence on
nary American has never more geography than any other man
than cast a disdainful glance back- who ever lived. Nor did his in-
ward to what he regards as our terests stop there. Certainly as-
De. Coleson is Professor of Social Studies at tronomy did not recover from the
Huntington College, Indiana. effects of his bright ideas for the

11


===== PAGE 14 =====

12 THE FREEMAN April

next fifteen hundred years. When ing which the condition of the human
Galileo suffered for his Coperni- race was most happy and prosperous,
can heresy, it was Ptolemy, whose he would without hesitation name
notions had become part of the that which elapsed from the death of
sacred canon, who was breathing Domitian (A.D. 96) to the accession of
down his neck. Ideas die hard, es- Commodus (A.D. 180).

pecially if they are wrong. This rascal Commodus, who was
worse than Nero by a considerable
Ptolemy, His Life and Times margin which is no mean accom-

Now we don’t really know much Pplishment, was the beginning of
about Ptolemy. He made astro- the end for Rome and the world.
nomical observations dated as By contrast with the previous
early as the eleventh year of the Golden Age, things got about as
Emperor Hadrian and as late as bad as it was possible for them
the fourteenth year of Antoninus, to get without such modern con-
who picked up the additional name Vveniences as communists and nu-
of Pius because he was a pretty clear weapons.
good sort of fellow. In fact, these Historians seem to think that
two Caesars were third and fourth late in the Roman period scholars
in a series called the “five good somehow tended instinctively to
emperors” —the only time the garner up the knowledge of the
Romans managed to have five good past and sort of stow it away,
ones in a row, which would be squirrel-like, to save it through
quite an accomplishment for any the long Dark Ages that lay ahead.
people. At any rate, the early and Certainly, writing “digests” sum-
late dates for Ptolemy translate marizing the knowledge of the
into 127 A.D. and 151 A.D., respec- ancients became the fashion, what-
tively, so on the basis of this, plus ever the motivation. That is pretty
a few scraps of tradition, he is much what Ptolemy did. Any tend-
considered to have appeared on the encies along the same line today
scene around 90 A.D. and to have Wwe hope are purely coincidental.
passed on to his reward about 168
A.D. That was the best time in the
history of the world to be alive, Now in trying to compile the
too, according to Edward Gibbon, astronomical knowledge of the
the great historian of Rome's de- classical period, Ptolemy needed
cline and fall: a framework to organize his cos-

If a man were called to fix the mos around. There were obviously
period in the history of the world dur- two possible centers for his sys-

Ptolemy’s Cosmic Problem


===== PAGE 15 =====

1959 THE COMPLEX WORLD OF CLAUDIUS PTOLEMY 13

tem, the earth and the sun; and in nice neat patterns — Orion, the
he was well aware of the alterna- Gemini, the Pleiades, and the rest
tives, as, indeed, Greeks had been — and go trooping along in perfect
long before his time. In fact, one formation through the night
of his predecessors at the Library toward the western horizon, ex-
of Alexandria, Eratosthenes by cept those around the Pole Star
name, had even measured the cir- which seem slowly to circle that
cumference of the earth some star. The sun, of course, was a
three centuries before and with special case: some giant in the
surprisingly accurate results, too. east made a long pass during the
Perhaps he got about 25,000 miles day and another fellow in the west
which is the approximation we use intercepted it and made an end
today, or maybe a couple or three run during the night all ready to
thousand more, we aren’ sure, start over the next morning, or at
but even that would be an accom- least that is the modern version
plishment. You try it! Ptolemy, of the story. But our friend Ptol-
as part of his self-appointed task emy was not a superstitious,
of reordering the world, trimmed slant-browed cave man; he was
Eratosthenes’ figure down to a the end-product of centuries of
mere 18,000 miles, which, some learning and culture, and had the
thirteen hundred years later, led vast Alexandrian Library at his
a Genoese navigator named disposal.
Columbus to get the absurd notion Still the problem was not a sim-
that the Eurasian land mass ex- ple one even for him. He realized,
tended pretty well around the and correctly, that the near stars
globe so that he could easily reach should appear to shift with respect
the East by sailing west. But so to the far ones, parallax as it is
much for that. This was only one called, if the earth went around
of his minor errors. the sun. But no parallax was
When confronted with the prob- evident with the naked eye. Nor
lem of choosing a center for his could he get over another problem
solar system, Ptolemy missed his which was closer by. He knew that
way altogether. Now primitive if he had his earth go around the
peoples have always assumed that sun to make his year, it would
the earth was flat with a huge in- have to rotate on its axis every
verted bowl turned over it, with day to produce night and day. But
the stars mounted like jewels in if the earth went around in 24
this vault of heaven. Now the fixed hours, that meant a point on the
stars, as we call them, always stay equator would be moving at a


===== PAGE 16 =====

14 THE FREEMAN April

velocity of over a thousand miles involve speeds infinitely greater
an hour (about 7560 on his smaller than the mere 750 that had
globe). If the earth were rotating bothered him. But at least they
at this furious speed, Ptolemy rea- were remote, and he had taken
soned, there should be a terrific care of the problems at hand
gale, much as if you stuck your which is what all good politicians
head out the window of a jet have learned to do since. There
plane. No such wind was apparent, was only one really serious diffi-
so the earth stood still and every- culty: the problem of the planets.
thing else went around it. Ptolemy

sensed that there was something The Maladjusted Planets

whacky about the whole arrange- Since men began to observe the
ment, but it was the best he could stars in the remote past, it was
do with the evidence at hand. noticed that the host of heaven

Now a stationary earth works marched past in the night in per-
as well as any other kind — almost. fect order, each star maintaining
Of course, there were some engi- its place within its pattern (con-
neering problems involved, such as  stellation) faithfully from year to
how the host of heaven got around year (although the heavens aren’t
the earth every day which would changeless over the ages). How-

-— ay
- ~~

—— ——— — —
———— hdl

- ~~
- YCLE > nC
~~ Epic s Pe ORBIT OF CENTER OF EPICYCLE
7 \ -
/ \
’ TN
/ ad \
1
/ a \
] J \
i ’ 1
] !
\ J Fig. 2. SINGLE EPICYCLE.
\ / To get the peculiar loops in
“ , , the planetary paths, the planet
SNS J’ in question was affixed to the
“J ad circumference of an imaginary
AN ov wheel, the epicyle, which turned
/ ~————— around as its center, a point in
/ space, followed a circular

/ orbit about the earth.


===== PAGE 17 =====

1959 THE COMPLEX WORLD OF CLAUDIUS PTOLEMY 15

ever, there were a few bright and pen — periodically in the heavens.
conspicuous stars that were a law So far so good.
unto themselves; they appeared to
wander among their fellows. You Complexity Ad Absurdum
would find one as an intruder in However, there was still one
a given constellation now, and a little catch to the whole arrange-
few months later it would have ment. If an astronomer tried to
moved on into another. Hence, project the system into the future
their name planeta, which means and predict the position of a
wanderer. planet for some night years ahead,
Now fitting these maladjusted he was always in error. But that
members of the celestial family could be remedied. Why not a
into his cosmic scheme was no double epicycle as in Figure 3?
easy assignment, since they not The planet in question was now
only slowly strayed where they mounted on the circumference of
would, but even executed weird an imaginary second orbit, whose
loops in their paths among the center followed a circular path
stars on occasion. But Ptolemy whose center in turn went about
was equal to the task. The Greeks the earth. Now that ought to do
had decreed that all orbits should it. It should have, but the more
be circles, since a circle was the involved system didn’t quite work
symbol of perfection, so Ptolemy either. But still astronomers didn’t
was stuck with that figure. give up hope, perhaps other epi-
However, there was no limit to cycles revolving on the previous
the number of circles he could ones would secure a better fit.
use; they weren’t rationed. He, In the ensuing centuries that
therefore, put his planet — Mars, elapsed before Copernicus and
for example — on the periphery of Kepler straightened out the celes-
a second circle whose center, an tial tangle in the sixteenth and
imaginary point in space, followed early seventeenth centuries, indus-
a circular path about the earth as trious scholars complicated the
in Figure 2. The scheme, although theoretical structure beyond be-
a little complicated, worked quite lief. Still, the computed paths, the
well as should be evident from theory, did not fit the facts of
Figure 1. The apparent path of a observation for very long into the
planet as the consequence of this future. The planets soon got out
double motion was looped at in- of order no matter how involved
tervals which is exactly what hap- the system became. Arabian as-
pens — or at least appears to hap- tronomers carried on while the


===== PAGE 18 =====

16 THE FREEMAN April

Western World was sunk in the sun instead of the earth. The re-
night of the Dark Ages. Finally, sulting system as worked out more
each planet was fitted out with 40 fully by Kepler was childlike in
to 60 epicycles, each turning on its simplicity. Put the sun in the
the other, a literal nightmare of center and let the planets just go
celestial clockwork. Still the sys- around it, that's all. The loops are
tem did not work very well for an optical illusion noted when the
very long. An old story hag it that earth passes the outer planets on
King Alphonso X of Castile, after the way around, just as a moving
listening to a long-winded ex- train appears to stop and back up
planation of the Ptolemaic theory, when you pass it. The Ptolemaic
remarked that he believed he could theory had fallen under the pon-
have given excellent advice had derous load of its own complexity.
he been present at the creation, as The incredible thing is that men
a sort of consulting engineer, no who were intellectually capable of
doubt. devising such a fabulously in-

Strangely enough, the revolu- volved theoretical structure were
tion of Copernicus consisted sim- not wise enough to see that it was
ply of choosing a new center, the unnecessary.

m————— ORBIT
Pre ~ a ———————— a
’ FIRST EPICYCLE ~~ —
ie RN —
\ rae

~»" | SECOND EPICYCLE
Ra REVOLVING ON FIRST

-~
oo” ~-

’ 1 “a
SZ \ ph]
7’ ’ \
* ¢ ) \
’ ! ! by
’ } / \
’ ! 4
4 ] !
/ [] [)
/ \ !
’ \ / Fig. 3. DOUBLE EPICYCLE.
Nl Y pid ! When one epicycle failed to
PAN NLel / reconcile theory and fact, others
TN me mmm J were added until the heavens
Seo -7 became a nightmare of celestial

clockwork, yet the system
never worked very we!l for all
its absurd complexity.


===== PAGE 19 =====

1959 THE COMPLEX WORLD OF CLAUDIUS PTOLEMY 17

The Moral of the Story a remunerative one; this branch of

It is regrettable that astronomy industry forbidden, and that branch
is practically the forgotten science. of industry encouraged; one article
. of commerce must not be grown, be-

If only our contemporaries were . . LD
. inted with Claudius Ptol cause it was grown in the colonies,
acquainted wi audius to €MY, another article might be grown and
then when one of our complicated bought, but not sold again, while a
schemes failed to work — another third article might be bought and
farm program, some monetary sold, but not leave the country. Then,
hocus - pocus, or other economic too, we find laws to regulate wages;
witchcraft whereby we may all laws to regulate prices; laws to regu-
live like kings without doing much late profits; laws to regulate the in-
of anything — one might suggest: terest of money; custom-house ar-
“What we need is another epi- Iangements of the most vexatious
cycle. That would straighten out kind. ... and the inconvenience suf-
A fered. . . . in order that industry

everything.” For somehow one

. . might thrive. . . .
cannot View our complex, modern The first inevitable consequence
world’ without being over-

h was that, in every part of Europe,
whelmed as King Alphonso X was there arose numerous and powerful

with the feeling that the ‘world gangs of armed smugglers, who lived
just isn’t naturally like that nor by disobeying the laws which their
does it need to be. ignorant rulers had imposed.

Let those who believe that the —HENRY THOMAS BUCKLE
present chaos is the inevitable
fruitage of the Industrial Revolu-
tion examine the record. Back in Remember Ptolemy’s scheme
the days of the Founding Fathers Was incredibly complicated,
of this Republic when craftsmen learned —and wrong. Copernicus
still plied their trades, Europeans found a new center, and order just
did quite well complicating what naturally grew out of chaos. One
we have regarded as their simple is reminded of the words of Adam
world and exported more of the Smith: “All systems either of
same to their colonies, as should Preference or of restraint, there-
be evident from the following: fore, being thus completely taken
away, the obvious and simple sys-
tem of natural liberty establishes

The Obvious and Simple System

In every quarter, and at every

moment, the hand of government was itself of its own accord... ." The
felt. Duties on importation, and duties 0bvtous and simple system of
on exportation; bounties to raise up a natural liberty . . . liberty estab-

losing trade, and taxes to pull down lishes itself... yes, liberty! o o o


===== PAGE 20 =====

WHO IS watcuine (fod 7

The loss of freedom and privacy in the United States and the threat
of further loss is indicated by the thousands of government employees
who watch, check, record, inspect, investigate, and supervise us.

RALPH L. Wo0ODS

RECENTLY, Cleveland industrialist possibly depressing —number of
Cyrus S. Eaton condemned the federal employees who are prin-
Federal Bureau of Investigation cipally or exclusively engaged in
because it engages ‘in snooping, watching and recording what goes
in informing, in creeping up on on in a vast array of human ac-
people,” and he asserted that not tivities. Whether one welcomes or
even Hitler at the height. of his deplores this trend, the facts
power “had such spy organiza- should be of interest.
tions as we have in this country The F.B.I., it should be recog-
today.” nized at the outset, will always be
Such pinpointed denunciation of the prime target for various mal-
the F.B.I. suggests either un- contents and publicity seekers. Its
awareness or indifference to the operations —or at least the re-
widespread snooping, investigat- sults it achieves — are dramatic.
ing, policing, and supervising It has captured the public’s im-
done by various other agencies of agination and is good newspaper
the executive branch of the fed- “copy.” Though attacked and mis-
eral government, many of which represented by the communists
have larger staffs and greater and other traitors it exposes, the
powers than the much-abused F.B.I. cannot answer its accusers
F.B.I. without revealing details that
A careful look at the ever-ex- would prevent a successful com-
panding activities of our govern- pletion of its work. Furthermore,
ment reveals an impressive —and the F.B.I. is frankly and neces-
-_— sarily a government detective
of mor FT ivi sg Be ied agency, with the total of its

18


===== PAGE 21 =====

1959 WHO IS WATCHING YOU? 19

agents or investigators a matter less reputable characters and en-
of public record. In short, there terprises the F.B.I. customarily
is no question as to the nature of investigates. No doubt airlines
the Bureau's work and its numeri- and farmers on occasion resent in-

cal investigative strength. terference by government but, be-
} } ing unashamed of their activities,
Farmer, Indians, Businessmen . . . they do not work themselves into

But what about all the other an hysterical lather as a diver-
governmental agencies engaged in sionary tactic. Consequently, the
watching, checking, investigating, public is only vaguely aware that
and supervising — the ones that they are watched and supervised
seem to be unknown to and un- by government.
mentioned by the highly articu- The myopia of the headline-
late “freedom fighters”? hunting critics is illustrated by

The F.B.I. has 13,760 on its their failure to mention that the
payroll, but the Civil Aeronautics U.S. Bureau of Indian Affairs has
Administration has 23,000 and six 10,862 employees — or about one
of the Department of Agricul- federal meddler for every 35 In-
ture’s 24 sections (Forestry, Soil dians whether on or off the reser-
Conservation, Agricultural Mar- vations. One might well speculate
keting, Commodity Stabilization, on the extent to which this situa-
Federal Crop Insurance, and tion is responsible for much of
Farmers Home Administration) the social erosion suffered by the
have a total manpower of 68,000. Indians.

We are not here concerned with Business, of course, is much
the value or necessity of these ac- watched and often rigidly regu-
tivities, but only with the extent lated and supervised by the gov-
to which the government engages ernment. Few would disagree with
in watching, recording, investiga- the basic principle that govern-
ting, and supervising. If the Civil ment is needed as an umpire or
Aeronautics Administration and referee to minimize fraud, vio-
the Department of Agriculture lence, and other malpractices.
employees are as attentive to But how many umpires or ref-
their duties as F.B.I. men are erees are needed? The Securities
said to be to theirs, then the air- and Exchange Commission has the
lines and the farmers are perhaps surprisingly small but effective
more carefully watched and cer- force of 834, the Federal Trade
tainly more firmly supervised than Commission a relative handful at
are the secretive and considerably 724, and the Federal Power Com-


===== PAGE 22 =====

20 THE FREEMAN April

mission a mere 708 watchers and state, county, and municipal agen-
regulators, cies that keep an eye and often

There is, however, considerably lay a restraining hand on busi-
more manpower involved in the ness.

following watching and regulating Several other massive govern-
agencies: ment agencies are engaged in
Employees watching and to some extent su-
National Labor Relations perviging both business and in-
Board ........................ 1,124 dividuals. The Internal Revenue
Federal Deposit Insurance Service is a painful example. It
Corporation ............. 1,179 has 50,683 employees dedicated to
Federal Communications the task of securing all the details
Commission ......... 1,201 of business and personal income
Bureau of Employment and taking a big slice of it an-
Security nually for the government's use
(Dept. of Labor) ....... 1,248 — including the pay of those who
Small Business see that we make our money ac-
Administration ........... 1,284 cording to the rules they lay down
Food and Drug for us.
Administration ........... 1,331 Then, there are 22,849 Social
Wage and Hour and Security Administration employ-
Public Contract Division ees who, in the course of time, ac-
(Dept. of Labor) ........ 1,416 cumulate a fairly complete record
Interstate Commerce of one’s working life as they
Commission ............... 2,238 watch and record facts about both
Federal Maritime Board employers and employees.
and Maritime The Selective Service System
Administration ........... 3,457 watches citizens and on occasion
Bureau of Mines ........... 4,371 makes rather drastic demands of

Bureau of Customs 8,284 them. It has 6,568 full-time and
2,300 part-time employees, plus
This is not a complete roll call some 41,000 public spirited citi-
of the government watching and zens who serve on local draft
regulating agencies. A number of boards.
smaller ones have been omitted, The Veterans Administration
such as Renegotiation Board with an astonishing 106,000 full-
(835) and Federal Mediation and time paid employees, plus 21,000
Conciliation Service (832). Nor part-time workers and 47,000 who
does it take into account the many work without compensation, in-

sere aane


===== PAGE 23 =====

1959 WHO IS WATCHING YOU? 21

evitably watches, reports, and eral Services Administration —
often supervises those who par- that has a good deal to say about
take of its benevolence. the other departments in the ex-
The 60 million people who an- ecutive branch of the govern-
nually visit our National Parks ment. Its 27,000 employees have
are watched, as well as helped been referred to as the govern-
and protected, by some of that ment’s housekeepers.
Service's 5,000 employees. Sports- Finally, the government em-
men are both watched and aided ployees themselves are to some ex-
by the Fish and Wildlife Service’s tent watched, protected, and some-
4,100 employees. The Census Bu- times over-protected by 4,200 em-
reau has 3,065 workers keeping ployees of the Civil Service Com-
count of us and of some of our mission.
activities. The Public Health Serv-
ice’s 24,000 employees must often The Unmistakable Trend
concern themselves with humans On its face, this situation may
as well as microbes, thus consti- not seem unduly disturbing. Fed-
tuting a temptation to anyone who eral snoopers amount to a rela-
would use them as a Trojan Pony tively small proportion of the
for socialized medicine. The Im- total manpower available in the
migration and Naturalization United States. But the upward
Service’s force of 6,700 watches trend is unmistakable, as is the
and supervises those who enter fact that the growth is in propor-
the country, and the State De- tion — if not in geometric ratio —
partment’s 360 Passport Office to the amount of taxation and con-
employees have a great deal to say trol of various aspects of our per-
about who leaves the country. sonal affairs. Though the snoop-
Those who handle and use the ing itself is deplorable enough,
mail do so under the glances of let us remember that it is hardly
the 1,500 employed in the Postal more than the symbol of the regu-

Inspection Service. lations and controls which precede
And who, one may validly ask, and give rise to such supervision.
watches the government? This is When one gives careful thought

primarily the duty and responsi- to the extent of federal watching
bility of each individual citizen, and to the total government man-
and of their elected representa- power engaged in such work, it is
tives in Congress. easy enough to see how these

But the government itself has agencies could become instruments
another huge agency —the Gen- of tyranny through the manipula-


===== PAGE 24 =====

22 THE FREEMAN April

tions of political adventurers. This handful of bureaucrats who
possibility exists in the F.B.I., of fondle such poisonous ideas. But
course, but it also is present in a it is not too fanciful to envision
great many other agencies of gov- a time when continued economic
ernment. policing and welfare coddling
For example, in addition to could so soften Americans that
their watching, recording, and they would invite the handcuffs of
regulating, some of these agencies the Police State and the spoon-
control the disbursement of hun- feeding of the Welfare State.
dreds of millions — even billions — We have allowed and often en-
of dollars of government funds. couraged the government to erect
Since money is power, in unscru- a bewilderingly complex structure
pulous hands these agencies could of regulations and controls, plus
buy political loyalty and obedi- subsidies, gifts, grants, loans, and
ence. Freedom has often been benefits. The nation swarms with
bought out before it was stamped federal watchers, checkers, re-

out. corders, regulators, and control-
i lers who either are or could be en-
Indirect Threats to Freedom listed in behalf of the police

A less obvious and therefore power —a power that threatens
more effective method for achiev- freedom in proportion as it in-
ing the same results is the oblique creases in size and authority.
or indirect approach — gradually Even the present structure of
tightening the controlling screws government could be converted in-
through commissions and bureaus to a police state by a dictator
which assume powers similar to minded group —if the people made
those of legislatures and courts. no move to prevent it. And we al-

These are hazards of every big - ready have given the government
government; they are danger- a great deal more power than it
ously multiplied when agencies needs to perform its constitution-
are given excess funds, man- ally determined functions.
power, or authority. If the people Intelligent and unselfish voting
don’t patrol their government, the is not enough to check the Ameri-
government is apt ultimately to can drift and drive to some form
police the people. of superstate. Voting must be pre-

There is no evidence that the ceded and followed by vigilance.
government has a malevolent de- The only insurance against the
sign for the enslavement of the government policing us is for us
people, though there may be a to police the government. eo eo o


===== PAGE 25 =====

Human Property.

ARE

MURRAY N. ROTHBARD

MUCH IS HEARD these days of the in newsprint and in the other es-
distinction between human rights sentials for newspaper production.
and property rights, and many In short, there is no conflict of
who claim to champion the one rights here because property
turn with scorn upon any de- rights are themselves human
fender of the other. They fail to rights. What is more, human
see that property rights, far from rights are also property rights!
being in conflict, are in fact the There are several aspects of this
most basic of all human rights. important truth. In the first place,
The human right of every man each individual, according to our
to his own life implies the right to understanding of the natural order
find and transform resources: to of things, is the owner of himself,
produce that which sustains and the ruler of his own person. Pres-
advances life. That product is a ervation of this self-ownership is
man’s property. That is why prop- essential for the proper develop-
erty rights are foremost among ment and well-being of man. The
human rights and why any loss of human rights of the person are,
one endangers the others. For ex- in effect, a recognition of each
ample, how can the human right man’s inalienable property right
of freedom of the press be pre- over his own being; and from this
served if the government owns property right stems his right to
all the newsprint and has the the material goods that he has
power to decide who may use it produced. A man’s right to per-
and how much? The human right sonal freedom, then, is his prop-
of a free press depends on the erty right in himself.
human right of private property But there is another sense in
Dr. Rothbard is an economist in New York City. Which human rights are really

23


===== PAGE 26 =====

24 THE FREEMAN April

property rights, a sense which is taxpayers. Should the taxpayers
much obscured in our time. Take, who want to demonstrate be al-
for example, the human right of lowed to use the street for that
freedom of assembly. Suppose purpose at the time they choose,
that a certain group wants to or should it be reserved for use by
demonstrate for a particular idea other groups of taxpayers as mo-
or bill in a street meeting. This is torists or pedestrians? Who is to
an expression of the right of as- decide? Only government can de-
sembly. On the other hand, sup- cide; and whatever it does, its de-
pose that the police break up the cision is bound to be a wholly ar-
meeting on the ground that traffic bitrary one that can only aggra-
is being disrupted. Now, it is not vate, and never resolve, the con-
sufficient simply to say that the flict between the opposed forces.
right of assembly has been Consider, however, a situation
abridged by the police for politi- where the streets are owned by
cal reasons. Possibly, this was the private individuals. In this case,
case. But there is a real problem we see clearly that the whole ques-
here, for maybe traffic was dis- tion is one of property rights. If
rupted. In that case, how is one Jones owns a street and the Citi-
to decide between the human right zens United want to use it for a
of free assembly and the “public demonstration, they may offer to
policy” or “public good” of clear hire the street for that purpose.
and unobstructed traffic? In the Then it is up to Jones to decide
face of this apparent conflict, whether he will rent it out and at
many people conclude that rights what price he will agree to the
must be relative rather than ab- deal. We see that this is not really
solute and have to be curbed a question of the human right of
sometimes for the common good. the Citizens United to freedom of
assembly; what is involved is
A Question of Ownership their property right to use their
But the real problem here is money to offer to hire the street
that the government owns the for the demonstration. But, in a
streets, which means that they are free society, they cannot force
in a virtual state of no-ownership. Jones to agree; the ultimate de-
This causes not only traffic jams, cision is Jones’, in accordance
but also confusion and conflict with his property right to dispose
over who should use the streets of the street as he sees fit.
at any given time. The taxpayers? Thus, we see how government
In the last analysis, we are all ownership obscures the real issue


===== PAGE 27 =====

1959 HUMAN RIGHTS ARE PROPERTY RIGHTS 25

— how it creates vague and spur- terest”: Justice Holmes’ famous
ious “human rights” that seem- dictum that there is no right to
ingly conflict with each other and cry “fire” in a crowded theater.
with the “public good.” In situa- Holmes and his followers have
tions where all the factors in- used this illustration over and
volved are owned privately, it is over to proclaim the supposed
clear that there is no problem or necessity for rights to be relative
conflict of human rights; on the and tentative rather than abso-
contrary, only property rights are lute and eternal.

involved, and there is no vague- But let us further analyze this
ness or conflict in deciding who problem. The fellow who brings
owns what or what is permissible on a riot by falsely shouting “fire”

in any particular case. in a crowded theater is, neces-
sarily, either the owner of the
Property Rights Are Clear theater or a paying patron. If he

In short, there are no human is the owner, then he has com-
rights that are separable from mitted fraud on his customers. He
property rights. The human right has taken their money in ex-
of free speech is only the prop- change for a promise to put on a
erty right to hire an assembly movie; and now, instead, he dis-
hall from the owners, to speak to rupts the movie by falsely shout-
those who are willing to listen, to ing “fire” and breaking up the
buy materials and then print leaf- performance. He has thus welshed
lets or books and sell them to on this contractual obligation, in
those who are willing to buy. violation of the property rights of
There is no extra right of free his patrons.
speech beyond the property rights Suppose, on the other hand, that
that we can enumerate in any the shouter is a patron and not
given case. In all seeming cases of the owner. In that case, he is vio-
human rights, then, the proper lating the owner’s property right.
course is to find and identify the As a guest, he has access to the
property rights involved. And this property on certain terms, includ-
procedure will resolve any appar- ing an obligation not to violate
ent conflicts of rights; for prop- the owner's property or disrupt
erty rights are always precise and the performance that the owner
legally recognizable. is putting on for his guests. His

Consider the classic case where malicious act, therefore, violates
“freedom of speech” is supposed the property rights of the theater
to be curbed in “the public in- owner and of all other patrons.


===== PAGE 28 =====

26 THE FREEMAN April

If we consider the problem in rights. The fellow who maliciously
terms of property rights instead cries “fire” in a crowded theater
of the vague and woolly human is a criminal, not because his so-
right of free speech, we see that called right of free speech must
there is no conflict and no neces- be pragmatically restricted on
sity of limiting or abridging behalf of the “public good”; he is
rights in any way. The rights of a criminal because he has clearly
the individual are still eternal and and obviously violated the prop-
absolute; but they are property erty right of another person. o ¢ ¢

THE SBoank Dou ECONOMY

“Thank you very much,” said the grocer to the lady
as she paid him 18¢ for a can of beans.

“And thank you,” responded the lady. “I want the
beans more than these pennies, so I am as obliged to
you as you are to me.”

“Aren’t these voluntary transactions what's meant
by the free market?” queried the man with the apron.

“Surely. I like to think of it as the Golden Rule prac-
ticed in the market place. Would that all of my income
were as willingly exchanged as this.”

“That goes for me, too. Hm! I never thought of it
this way before; but when the government takes my
income to give to others, I don’t say thank you, and
the ones to whom it is handed never say thank you to
me. That’s the thankless way of life, isn’t it?”

“How right you are. The thankless way of life is
rapidly replacing the thank you way. And why? I
suspect it’s because folks like you and me don’t know
how to explain the thank you way. I see I’ve got some

homework to do. Good afternoon.”
LEONARD FE. READ


===== PAGE 29 =====

A rural minister insists that...

Money Talks

CARLTON WILLIAMS

THE PHRASE, “money talks,” is a If money does talk, what it says
commonplace saying, used chiefly to us is of vast importance because
in a facetious sense, indicating it tells us some blunt truths of
that if you have the money, you economics and of the economic
can buy almost anything, or, if welfare that conditions the whole
there's enough money in it, a man life of every individual. The nat-
will undertake to do what he ural ambition of everyone is to
otherwise would not think of do- improve his own condition. We all
ing. want better things. We want hap-
Certainly, this is not the mean- piness. We want peace in the
ing in which the words are used world and stability in our own
here. Instead, I propose the old communities — which can come
phrase as a sort of sounding only from more dependable, moral,
board to emphasize certain and spiritual relationships among
thoughts which I hope may echo men. And above all, we want eco-
and re-echo in our minds. nomic justice. Economic justice is,
If money actually does talk, indeed, the cornerstone of human
what — in heaven's name — is it progress the world over. That is
trying to say to us? true because where there is no
I believe sincerely that if we economic justice there is no free-
can hear and understand what our dom, and when people are not free
money is actually saying, it is there can be no real progress.
vastly more important than any- This is not to reduce the vastly
thing that any man, however complicated interests of human
gifted or however wise, can pos- affairs to economics. But the sober
sibly say to us. fact remains that if there are no
The Reverend Mr. Williams of Rockton, physical and material supports

Illinois, also is interested in farming—and free- i life.
dom. This article is from his address before for life, there can be no life

the Annual Meeting of the Northeast Illinois A starving musician is more
Production Credit Association at Woodstock, . .
January 18, 1958. concerned with food than he is

27


===== PAGE 30 =====

28 THE FREEMAN April

with a Beethoven sonata; and a in America today as it ever was,
poverty stricken philosopher is just remember that even here the
probably more concerned with the very concept of the right to pri-
problem of how he is going to vate property is under attack from
pay the rent, so that he will have several quarters. For the most
a place to live, than he is with part, the attack is indirect — the
categorical panaceas for the salva- main effort is directed at the im-
tion of the world. position of national welfare pro-
But give this musician and grams designed to minister to
philosopher the physical things each according to his need.
they need, and you liberate their
talents for greater production. “Need” Always Exceeds Supply
It follows, then, that material It would be a most comfortable
blessings are among our first and situation if the needs of every-
most important needs; and for one could be met automatically by
this reason all human welfare is some super power. “To each ac-
directly and inseparably connected cording to his need!” That is a
with money. teaching which is being accepted
But money is nothing more than by millions. But the other part of
an expression of value —a mutu- the equation goes with it: “From
ally recognized symbol of prop- each according to his ability.” The
erty. It is the property which con- fallacy in that socialistic philos-
stitutes the real wealth. Hence, ophy is that the second part can-
when the right of private prop- not possibly equal the first part.
erty is denied, the value of money, The “from each according to his
its symbol, is gone. When money ability” cannot satisfy the ‘to
talks, it says, above all things: each according to his need.” For
“Look well to your property, for the need is always greater than
when you have lost that, you have the supply. The only way it can
lost everything.” be done is for all of us to supply
We profess to believe that the our own needs with our own labor,
right of private property is in- frugality, and ingenuity, and then
alienable. Yet within the brief lend a helping hand where it is
span of memory of most of us, most needed.
the property of untold millions of Now, it is not my purpose to
people in the world, from Russia question claims or to judge the
to Bolivia, has, in one way or an- relative merit of human needs,
other, been taken away from them. for our economic fortunes or mis-
If we think our property is as safe fortunes have a profound influ-


===== PAGE 31 =====

~

1959 MONEY TALKS 29

ence on all other relationships.
There can be no doubt that eco-
nomic prosperity breeds personal
satisfaction as well as a high de-
gree of spiritual well-being, while
poverty is a festering cesspool of
disease, maladjustments, discon-
tent, social unrest, and crime.

But for the most part, the way
out of poverty lies in the fruit of
our own efforts, for we live in a
universe of natural law.

Nothing in this universe can or
will succeed which is not in har-
mony with the universe. Eventual
success in any enterprise, be it
personal or governmental, depends
upon and is conditioned by its
essential harmony with the irref-
utable facts of the universe. This
is as true in the realm of eco-
nomics as in the field of science.
Our fortunes or misfortunes, of
whatever nature, reach deep into
the basic laws which govern the
entire universe.

Basic Laws of the Universe

To illustrate, let me relate two
very dissimilar incidents in my
own experience.

1. As a child some five years of
age, I discovered it was fun, or
so I thought at the time, to wet
matches with my tongue or soak
them in my mouth, then rub them
on my fingers so that they glowed
with a fascinating and beautiful
phosphorescent fire. This . 1 did,

not knowing what might happen.
But it happened! From the time
I was six until I was 14, I was a
complete invalid, not knowing
whether I would live or die; the
poison went through practically
every bone in my body — finally
settling in the tibia of my right
leg. My body is scarred from ab-
scesses and operations caused by
infected bone.

An ugly disease — chronic osteo-
myelitis. And there’s no known
cure except to cut out the diseased
bone with literal hammer and
chisel, hoping to stop the infec-
tion before the whole bone be-
comes necrotic. Now, no matter
how ignorant the child, his dis-
obedience of natural law caused
the man to be a virtual cripple all
the days of his life.

2. The second illustration is
more pleasant. About twenty years
ago, when recovering from the
periodic bone surgery which has
been the rule rather than the ex-
ception during my life, on crutches
most of the time, incapacitated
and unable to follow my profes-
sion, I locked myself in my study
and wrote a couple of novels. Then
my wife inherited a little money
from her father’s estate, and we
set out to buy a farm. We didn’t
have enough money, and no one
with a good farm for sale thought
a- crippled preacher was too good
a risk; the farm mortgage people


===== PAGE 32 =====

30 THE FREEMAN April

felt the same way. But finally we reward for obedience to economic
bought 380 acres of about the and physical laws. This was a per-
poorest land in Winnebago sonal and a family struggle, the
County. The owner was willing to success of which was guaranteed
carry the mortgage for a time by no one. In the light of this ex-
— glad enough to get rid of the perience I am convinced that such
land. struggle is a blessing, not a curse.
There you have it, a thin farm
on a very thin shoestring and a Strength Through Struggle
heavy mortgage. Perhaps I didn’t No people ever became greater
know enough about it to be scared. than the difficulties they had to
We even got the local Production overcome. Strength comes from
Credit Association to loan us exercise, work, struggle. It is in
money to buy feeder cattle. They effort that physical and mental
finally got their money back — but health is born.
take my advice: Don’t ever loan These are days of terrific ten-
anybody money to buy cattle if sion. The lines of our problems
he knows nothing about how to seem to be drawn almost to the
feed them! breaking point. Perhaps we need
Part of our 380-acre tract was to remember that there is no
too sandy to plow, and more than music in a violin with loose
one-third of it too wet. We have strings. The strings of a fiddle
now planted nearly 150,000 pine have to be stretched almost to the
trees on the sandy land for Christ- breaking point to bring it in tune,
mas tree production, and dug and only then can a musician play
ditches and built dykes in the upon it. I have faith to believe
slough land. We even bought 120 that something great, perhaps
acres more of the stuff at the fab- divine, will eventually come out of
ulous price of $17.50 an acre. Then the staggering tension which now
we threw a couple of carloads of grips the world. For great prob-
muriate of potash on the peaty lems produce great men as well as
loam and changed the value of the great events.

land from $17.50 per acre to -— Still, there are plenty of people
you name it! —let us say con- who plead for subsidies, hoping to
servatively, $300.00. benefit from federal aid without

In the first instance, calamity suffering the hardship of federal
followed disobedience. In the control. But that is a false hope.
second, all the success my family Controls are inseparable from
and I have achieved has come as grants. The mess agriculture is in


===== PAGE 33 =====

J

1959 MONEY TALKS 31

today, the staggering government
supports, and the creeping paraly-
sis of government control of agri-
cultural markets as well as the
attempted control of production,
puts every farmer deeper and
deeper in subjection, and more
and more dependent on the ca-
price of bureaucratic dictation.
How can we be naive enough to
think that the government can
give us anything which it does not
first take away from us?

Think of it as we will, argue
about it as we wish, habitual fed-
eral aid is indicative of a vast
transformation from a free econ-
omy to a planned economy. And
may we never forget, when we no
longer have a free economy, we
are no longer a free people. And
that is the dynamic and didactic
thing our money is trying to say
to us today.

I have a neighbor who has done
exceedingly well in the farming
business, yet he consistently takes
from the Agricultural Stabiliza-
tion and Conservation Committee
(ASC) every dollar he can get,
not because he needs it, but be-
cause he argues that if you can
get it, you're a fool if you don’t
take it. He said to me: “Why not?
I figure those fellows in Wash-
ington are a lot smarter than I
am, and if this is the way they
want it, who am I to object?”

Now a man like that can’t con-

vince me that he is in favor of
government economy so long as he
eagerly grabs government pay-
ments, money which has come out
of the pockets of other people
who owe him nothing.

Character Will Stand

In the last analysis, our salva-
tion will not come out of Wash-
ington. It will come, if it comes
at all, in that secret relationship
which each man works out be-
tween himself and his God. Per-
sonal responsibility, integrity,
and faith are the building blocks
which erect that stalwart edifice
of character which is the only
building worthy to stand through
tomorrow. The only loyalty that
has the power to save modern
civilization is loyalty to truth. If
we consistently practice a lie, we
will inevitably be destroyed by
that falsehood; for only the truth
will survive. That is the judgment
of human history, as it is the de-
cree of God’s universe, and it will
be the verdict which shapes the
future.

Money talks! It is saying to us
with all its power: “Economic
wrong-doing and economic false-
hood lead eventually to economic
poverty and human slavery. Eco-
nomic rightness which is in har-
mony with eternal truth alone will
lead us to economic prosperity
and human freedom.” * oo

a


===== PAGE 34 =====

3 ' aise Msg EL

UNION COERCION an

IY. Li cma TE itis on. it na

HSE irs

IT Is a sad truth that the public sixteen thousand newsstands were q
is the victim hit hardest when a forced to close, throwing many
handful of people, using the weap- dealers temporarily out of work.
on of collective force bestowed The nine struck newspapers them-
upon our trade union movement, selves lost an estimated twenty-
succeeds in crippling an industry five million dollars in advertising
through boycotts, strikes, and sim- and circulation revenue. Employee
ilar pressures. In New York last pay losses totaled more than five
. December, this truism was proved million dollars. Hundreds of busi-
once again in a strike which for nesses, dependent upon news-
three weeks stopped the presses paper advertising — resort hotels,
of nine major daily newspapers theaters, restaurants, auto dealer-
with a combined circulation of ships, real estate agencies, em-
over six million. ployment bureaus — felt a serious
Let’s review, for a moment, the crimp in their income.

effect of this costliest newspaper In the school system, 270,000 of
strike in American history, for the city’s 300,000 students in 213
which nearly every one of the secondary schools accustomed to
twelve million citizens of the New using newspapers in their instruc-
York metropolitan area paid a tion, were affected.

price. Contrast these facts with the
Coming in the midst of the dubious gains and the number of g

Christmas shopping season, the people who receive them. Directly

shutdown slashed an estimated 7 involved were 4,500 members of )

per cent from anticipated Yuletide the striking news handler’s union,
business of major stores which de- representing only a fraction of the
pended on newspaper advertising New York newspaper industry’s
to draw customers. This loss total employee force. Of the news
amounts to about ten million dol- handler’s union membership, only
lars. Ten thousand of New York's 19 per cent had voted to strike
—_— (887 for and 772 against), and
Mr. Brown is Managing Editor of the Burbank . . ..

(California) Daily Roviow. this voting majority — a meager

32


===== PAGE 35 =====

| YOUR NEWSPAPER _

Wg Se Pm,
RR ne GR EFI

oR ALR
ro Fatt JOSEPH E. BROWN

105 of the city’s eight million citi- gstitutionally guaranteed freedom
zens — brought about a tie-up of the press and that this freedom
which ultimately cost an estimated is under attack on many fronts
fifty million dollars. today. One much discussed front
They won their case, of course is the blanket of secrecy which
— a $7.00 per week “package.” But shrouds an increasing number of
discounting the strike benefits re- activities in Washington, state
ceived, those who walked off their capitals, and city halls, obscuring
Jobs and those forced to go with the people’s right to know under
them must work more than ten an innocuous guise of “security.”
months at the new pay rate before Another is pressure from state
the “gains” will be realized, be- legislatures and city governments
cause they earned no pay during in the form of heavy business li-
the strike. cense fees on newspapers, taxes
But more tragic than these eco- on advertising, and, in some re-
nomic losses is the fact that a mote cases, even direct censorship.
handful of union members, with a These are the obvious dangers
weapon sanctioned by law, struck to our press, but they are dangers
a costly blow to freedom and with which we can cope adequately
forced concessions to their coer-- in the courts because in most in-
cive force. stances they violate one statute or
Because of its magnitude, the another, and we recognize them as
New York strike received wide such.
notice across the country and its
cold, hard facts were driven home. Unseen Damage to Freedom
Not all, however, realize the in- The danger of union coercion as
roads made by trade unionism in it is practiced in the American
the past few years in the news- newspaper industry, however, is
paper industry, a trend which to- one which too few Americans re-
day threatens to squeeze our press alize. Such attacks against free-
into such a pattern of standardi- dom as that in New York are, in
zation that its effectiveness may fact, considered perfectly legal and
soon be seriously impaired. moral, and are blessed by the
We are quite aware of our con- courts.

33


===== PAGE 36 =====

34 THE FREEMAN April

Worse, the most insidious phase many others published under ad-
of union pressure against our verse conditions brought about by
press, the undermining of a news- labor tension. Among newspapers
paper's freedom by chipping away which enjoyed immunity from
the integrity and character of such economic attacks during the
those who operate it, is seldom year, many suffered narrowing
seen by the public. It is seldom, margins of profit by constantly in-
in fact, seen or exposed by the creasing demands for higher
very newspapers which are them- wages, increased fringe benefits,
selves the victims. and the like. When a newspaper’s

Nevertheless, the danger is budget is pinched, invariably the
there: growing, gnawing, chisel- reader is the one who must suffer
ing at the roots of freedom to by receiving a poorer product, or
which our newspapers owe their by paying a higher price.
existence.

Direct damage to this freedom The Role of Newspapers
exists in the form of strikes, boy- Despite the impact of television
cotts, forced shutdowns and, the and other media as a means of
end result, suspension of publica- communication, the American
tion, as in the case of the 114- public still depends very largely
year-old Brooklyn Eagle in 1955. upon its newspapers to inform,
Pinched between spiraling costs entertain, and serve as a guide in
of operation and the union’s de- making decisions. Last year, for
mands, its management, at one example, daily newspapers in the
point in negotiations, stated flatly United States had a combined to-
that the demands could not be met tal daily average circulation of
if the newspaper were to survive. more than 57,000,000 - more than
The union held firm. The result: any other communications me-
the newspaper folded, and a mil- dium.
lion readers were forced to turn A key reason for this trust, in
elsewhere for their news. my opinion, is that newspapers

If the fact that a newspaper's traditionally have remained un-
reading public is denied access to hampered by restrictions from the
its news by such coercion is not a federal government such as are
threat to freedom, then what is? imposed, say, on the television-

Last year, 28 daily newspapers radio industry by the Federal
in the United States were forced Communications Commission.
to suspend publication for various But just as the direct control by
lengths of time up to 66 days, and the federal government limits the


===== PAGE 37 =====

1959 UNION COERCION AND YOUR NEWSPAPER 35

scope of freedom in television and News, one of eleven publications
radio, economic assaults on news- in Freedom Newspapers, Inc., of
papers by labor unionism, which Santa Ana, California, of which
ultimately result in suspension of Mr. R. C. Hoiles is founder and
publication, are parallel examples co-publisher. Those familiar with
of unjustified pressure against Mr. Hoiles’ lifelong fight against

the press. collectivism can well imagine
what happened in Lima when
How Unions Use Coercion unionism turned its collective fury

A newspaper is a private busi- against him. The fact that the
ness enterprise and as such must Lima News survived one of the
compete in the spirit of free en- most bitter union attacks ever di-
terprise. It can exist only as long rected against an American news-
as it is economically possible to do paper is past history and, while a
so. It is at this point that trade credit to those who put principle
union interference, where that in- before personal gain and “got the
terference is exercised by means paper out,” has little bearing here.
of coercion, rears its collectivist The point is that the Lima situ-
head. ation — like the more recent New

Is not a union’s demand that York strike — brought into focus
prospective members of a news- a relatively recent weapon which
paper’s editorial staff be has shaped up against the news-
“screened” by a union committee paper industry and other indus-
before being hired an indirect ef- tries, namely, collective, economic
frontery to the publisher's right warfare.
to hire as he sees fit? Is not a de-
mand that news copy be examined To Capture the Press
and approved — censored, if you An increasing number of Amer-
will — by a union official a like at- ican newspapers each year are
tack against the publisher’s drawn within the sphere of union
rights? And isn’t physical intimi- - domination, either directly
dation of strike-breaking news- (through contracts in their own
papermen, those who choose to shops) or indirectly (through the
work when others do not, another necessarily close alliance of their

form of coercive pressure? news columns with the community
These are not generalities, by they represent). :
the way. They all occurred during Last year, when the American

a recent period in which I was as- Newspaper Guild observed its
sociated with the Lima (Ohio) twenty-fifth birthday, it an-


===== PAGE 38 =====

36 THE FREEMAN April

nounced a membership of more subscribers and advertisers —
than thirty thousand in noncraft from withdrawing their support
departments of newspapers, maga- if they choose. No one is forced to
zines, and other periodicals. The pay for a newspaper, or to read
percentage of workers under union one, or to subscribe to its philoso-
control in craft departments of phy. In a free society, acceptance
these American publications is or rejection by the consumer of a
difficult to estimate; it’s safe to product guides the maker of that
say it is increasing annually. product in its production. In this
Whether or not a newspaper's regard, a newspaper is no differ-
employees are represented by a ent from a factory producing
trade union does not matter. Be- shoes, toy balloons, or automo-
cause of a trend in the past decade biles.
toward unification among unions,
exemplified by the merger of the The “Right” To Sabotage
AFL and CIO, no newspaper can But when a labor union, with
isolate itself from union influence, government sanction, can employ
and it would be foolish for any illegal or immoral means to pre-
publisher to think he could do so. vent the distribution of a product
A publisher may ‘officiate over —in this case a newspaper — it
a nonunion plant, for example, makes no difference whether a
but chances are great that de- publisher is a good or bad busi-
livery of newsprint is handled by nessman; his rights have been
Teamster Union truckers. A news- trod upon.
paper tagged unfair by one union Take the case of one California
may find its paper supply brought weekly newspaper during the last
to a sudden halt. If this occurs, national election campaign. Exer-
the publisher must find other cising his right guaranteed by the
means of hauling newsprint, often Constitution, the publisher wrote
at accelerated cost. Such pressures a series of editorials favoring a
so magnify the expense of opera- . “right to work” voluntary union-
tion that a newspaper might find ism measure appearing on the up-
itself with a budget so overloaded coming California ballot. The
that it cannot survive. measure was, obviously, bitterly
A publisher has no right to stay fought by the California labor
in business if he’s a poor busi- union movement, and the editori-
ness man, nor is there any moral als became increasingly distaste-
restriction against those who pro- ful to the newspaper's union
vide a newspaper’s financing — the printers whose job it was to set


===== PAGE 39 =====

1959 UNION COERCION AND YOUR NEWSPAPER 37

them in type. So they slowed down properly represent their members
in work, went home “sick,” or without “protection” by law. De-
didn’t show up for work at all. spite the fact that this theory
Finally the publisher, sensing the has long since been disproved,
reason, toned down his editorials its application nevertheless still
and then dropped them altogether. remains.

Work picked up immediately It is through this off-balance
and the publisher filed a com- theory that labor bosses today can
plaint with the National Labor literally sit in an editor's chair
Relations Board. Angered over and, as it has been shown, dictate
this act, the printers called a what shall and shall not be in-
strike and the paper was forced cluded in a newspaper's columns.

to shut down. Is this any less an evil, or more
} justified, than direct censorship
Unions Enjoy Special Privileges by a dictatorial government?
If labor unionism enjoyed no Consider for a moment what

legalized exemption from the laws would happen if newspapers — all
which regulate business, or if it newspapers — became controlled by
operated with other than collec- a single church. It’s safe to as-
tive force, then it could be prop- sume that readers would be al-
erly categorized by a newspaper lowed to read nothing contrary to
among its other competitors. the doctrine of this church. There
But such is not the case. Be- would be no broad cross-section of
cause both government, through religious ideas and opinions, as we
laws, and courts, through deci- find in the pages of our American
sions, have placed trade unions on newspapers today.
a special pedestal, the competition Or what would happen if the
they present is wholly unjustified. press became controlled by the
As Indianapolis newspaperman Republican Party, or the Demo-
Walter Leckrone pointed out re- cratic Party, or the Socialist
cently, the American trade union Party? We would find only Repub-
movement enjoys numerous liber- lican or Democratic or Socialist
ties and exemptions which are de- opinions, and nothing else.
nied to business. Early labor law Using this parallel, it becomes
was predicated on the theory that easy to visualize what would hap-
management carried a big finan- pen if our entire newspaper in-
cial stick and thus should be held dustry knuckled under the thumb
in check, while the then scattered of trade unionism. We would read
unions were in a poor position to only the type of material that to-


===== PAGE 40 =====

38 THE FREEMAN April

day is printed in labor union-op- duce but what the union, by its
erated organs. force, can “get” for him?

There would be no diversity of In industry, mechanical ad-
opinions that we have today in the vances in an era of technology
American press. And the key to have to a large degree offset the
the strength of our press is indi- narrowing margin of company
vidualism. profits brought about by union de-

The indirect approach by labor mands in many fields. But in the
unionism in the destruction of newspaper field, it still takes vir-
freedom in the newspaper indus- tually as long to write a story,

try is a subtle one. process a photograph, or prepare
an ad, as it did ten or twenty
Initiative Is Stifled years ago. The obvious alternative

In my years of newspapering, it is to reduce staffs, devote less
has become increasingly apparent space to news which is time con-
that more than any other single suming to produce and adopt wider
factor, personal initiative on an use of handouts and fewer fea-
editorial staff is the spark that tures. Since a large percentage of
keeps one newspaper’s star burn- handouts are produced by govern-
ing more brightly than its com- ment information specialists in
petitors. It is initiative that makes Washington, state capitals, and
a reporter sniff behind every news city halls, it is apparent the pub-
handout. It is initiative that lic will be getting more and more
makes him refuse to accept any- doctored information rather than
thing at face value alone. It’s ini- news objectively prepared.
tiative that kindles competition
and, in turn, provides a better Students Shun Newspaper Careers
product. A survey taken shortly before

But whether initiative can rise graduation time last June showed
above complacency in an atmos- that the number of students in
phere of unionism is open to college schools of journalism des-
speculation. Will a reporter, for tined for newspaper careers had
example, remain as dedicated if dropped sharply from the year be-
given the alleged “security” of a fore. The total of journalism stu-
collective bargaining agreement? dents was just as high, but gradu-
Since unionism tends to destroy ates appeared to be eyeing careers
individualism, will he expend extra in advertising, public relations,
energy, knowing advancement de- and related fields, while shunning
pends not upon what he can pro- city rooms in greater numbers.


===== PAGE 41 =====

1959 UNION COERCION AND YOUR NEWSPAPER 39

Educators were quick to theorize vive where the individual is regi-
that the newspaper field is grow- mented and initiative is restrained
ing less attractive because salaries by a collection of rules and regu-
and other benefits have not kept lations.
pace with other American indus- If we insist on driving young
tries. Though this argument can creative talent from the news-
be debated, it nevertheless repre- paper field to other areas by allow-
sents widespread thinking. ing the philosophy of trade union-
My guess is that there are other ism to downgrade this profession,
reasons for the reluctance of our we may awake one day soon to
journalism-bent younger genera- find our morning paper vastly dif-
tion to enter the newspaper pro- ferent. Its news columns will no
fession. It is a simple rule of hu- longer be free, in the sense that
man nature that as individuals we we know freedom. They will con-
cannot be herded into categories tain stories carefully. slanted by
like inanimate milling machines or union bosses to promote the ideas
turret lathes. In a field as demand- of collectivism and the advantages
ing on creative talent as the news- of a socialistic Welfare State.
paper field, those participating A victory by the collectivists in
cannot be regimented into the col- the attack against our press, like
umns of statistics that the theory the skirmish victories in New
of unionism demands. York and Lima, would be a sad
Likewise, freedom cannot sur- day indeed. o oo

Authority Without Responsibility

THE PRESENT unrestricted strike procedure represents a primitive
aspect of civilization. It authorizes violence as a means of settling
disputes. It implies that the relationship between capital and
labor is such that disputes cannot be brought under the estab-
lished methods of adjudication. It is based on the propaganda
that the employer can be brought to heel only by threats of
violence . . . Collective bargaining so enforced, transfers to ir-
responsible hands most important policies of industry and, conse-
quently, the welfare of the nation... .

The labor leaders under congressional attack are not peculiar
men. They are the inevitable and unavoidable result of peculiar
laws which grant excessive authority without adequate responsi-
bility.

H. E. SPITSBERGEN, Public Welfare and Labor Laws


===== PAGE 42 =====

R will be on the

‘DEFENSIVE

LAWRENCE FERTIG

WHEN TEN leading nations of He was right, of course, in say-
Europe extended the area of free- ing that Britain would henceforth
dom by unfreezing currencies have less freedom of action to do
earned by foreigners, and making as she pleased. She would not, for
them more freely convertible, the instance, be able to honor the new
significance of this event was agreement and at the same time
highlighted by a telltale statement increase welfare state measures,
of Hugh Gaitskell, leader of the increase subsidies for nationalized
socialist Labor Party of Britain. industries, create more inflation
Mr. Gaitskell said he was and higher prices for British
against this move on Britain’s goods. If she pursued such poli-
part because it would restrict her cies, the result would be a sinking
independence of action, and would of the pound in international mar-
exert pressure for deflationary ac- kets and a substantial loss of gold
tion within Britain. By this state- which she could not afford.
ment he revealed how national- But every other country in the
istic socialism really is — how op- ten-nation group will be subject
posed to the basic interests of a to the same discipline. They have
free world community which must all thrown away a crutch — the
depend upon the free flow of control of their currency earned
money and goods among all coun- by nonresidents—in order to
tries. achieve much greater benefits.
Mr. Fertig is a columnist on economic affairs, Trade will be stimulated, exports
New York World-Telegram and Sun and other Will increase, and the plain citi-

Scripps-Howard newspapers, in which this col- :
umn first appeared February 2, 1959. zens and business people of every

40


===== PAGE 43 =====

1959 THE DOLLAR WILL BE ON THE DEFENSIVE 41

country will get a better break fearful of continuing inflation in
because they will be able to use the United States. Many people
whatever currency they earn in who formerly held dollars for
trade to buy the best value in any greater security sell their dollars
country they choose. to get gold.

It is curious that this move was This country has lost over $2
made possible by the fact that the billion in gold during the last
dollar is no longer the Rock of year, and we are still losing it. A
Gibraltar. It has become consider- continued loss of gold will be a
ably weaker. It is no longer feared serious matter. This much is cer-
that, given half a chance, every- tain: We can no longer pursue un-
one will rush to convert into dol- economic policies with impunity.
lars every pound or franc or lira We cannot price ourselves out of
he can lay his hands on. A London markets, engage in continued in-
commentator pointedly said that flation, or give away dollars in
“the pound now looks down on the profligate fashion. If we do, the
dollar.” This is not completely ac- dollar will weaken, there will be a
curate because the dollar is freely greater outflow of gold, and dol-
convertible for all purposes while lar devaluation will be the only
the pound is not. But, in a way, answer.
the pound and the lira and the
france do “look down on” the dol- Restraints on Convertibility

lar because they are no longer It should be noted that there
afraid of what the dollar can do still remain some great restric-
to them. tions. on the transfer of curren-
cies in practically all of these

Soft Dollars European countries. Money in-
The dollar has weakened for two vested in stocks, bonds, real estate
obvious reasons. In the first place —in fact any form of invested

we are pricing ourselves out of capital — still cannot be freely con-
export markets because our costs verted into other currencies when
are rising too rapidly and so are the capital investments are sold.
our prices. The U.S. is losing ex- Like a person who has been fed
port trade which is being gained drugs for many years, these coun-
by Germany, Japan, Britain, and tries are afraid to throw away all
others. Thus the demand for dol- their drugs and move at once
lars is not as great as it used to toward complete freedom of their
be. Secondly, the dollar has weak- currencies.

ened because the world is more Nevertheless, the limited move


===== PAGE 44 =====

42 THE FREEMAN April

they have made toward freedom cies. If they inflate, they will lose
is highly encouraging and signifi- trade and gold. The pressure will
cant. To make this move required be on them to put their economic
both economic strength and cour- house in order and keep it so.
age. Henceforth, these countries

can no longer depend upon the In substance the move to un-
European Payments Union for freeze European currencies will
credit when their trade balances mean freer world trade, will curb
become adverse. They must settle their inflationary tendencies, and
their trade payments in gold, since will give economic strength to the
the EPU was abandoned upon the West in the fight against the
signing of the new agreement. Soviets. But we must realize that
These countries can no longer de- it will put the dollar on the de-
pend upon tight exchange controls fensive and reveal any inflationary
to cover up their inflationary poli- weakness here very quickly. ¢ ¢

Private Investment is Best

Government capital investment belies its professed purpose.

REESE ROEDER

CAPITAL INVESTMENT was, until sult in public benefit. So if private
recently, considered to be the con- capital cannot or will not make an
cern of private interests; it has investment, there is no course
now become very much the con- open but for government to step
cern of government. Government in and take over. On this theory
has taken over, so the theory goes, the government has spent and
of necessity. It is rightly claimed pledged—not millions and millions

that capital investments are need- - but billions and billions of the
ed for material progress and re- taxpayers’ money. But, to what
end?

Mr. Roeder is an advertising and merchandis- . . . '
ing counselor in Webster Groves, Missouri. This government intervention is


===== PAGE 45 =====

1959 PRIVATE INVESTMENT IS BEST 43

based on the triple supposition: plant benefits all the people and
—that private capital invest- is the only road to a high general
ment either ignores or works living standard.
against the public good; A constant flow of investment
— that all government capital in- funds is necessary to meet the
vestment is solely for the public needs of a growing population, to
good; and increase the efficiency of produc-
— that the government can pro- tion tools, and to maintain the
vide unlimited capital investment production plant in working order.
funds. Though we sometimes speak of
All three suppositions are false. capital goods as permanent pos-
The capital structure of a na- sessions, this is not true. They
tion consists of the plant and dur- are durable, but not everlasting.
able goods with which industry Often an investment simply re-
and agriculture operate, plus the places tools and equipment that
transportation, banking, and com- have become obsolete; a new
munication systems. The capital structure replaces one that has
structure of a nation determines been destroyed by the elements or
the material welfare of the people has outlived its usefulness. Much
and sustains their living standard. of the apparent capital investment
The spread between the low liv- is actually replacement and main-
ing standard of many Asiatic tenance which does not add to the
countries and our own is attribu- total capital plant.
table almost entirely to the differ-
ence in the production plant. In Capital Depends on Prior Production
the backward countries, what can- Every capital investment must
not be accomplished by a pair of come out of prior production. To
hands and a strong back is largely increase the size of the produc-
left undone. In our country, we tion plant, there first must be a
have provided the worker with surplus production above imme-
abundant tools and mechanical diate consumption and above the
horsepower that multiplies man- replacement and maintenance of
power many times. The resultant the present capital plant. That
high productivity supplies prod- surplus production capacity is
ucts in abundance at low unit cost. comparatively small — very small,
Instead of a one-sided gain for Additions to the capital plant can
the so-called capitalistic class, the come only slowly and gradually.
building and maintaining of a suf- There will always be more to be
ficient and efficient production done than can be done —a prob-


===== PAGE 46 =====

44 THE FREEMAN April

lem of deciding that certain capi- able for capital projects is the re-
tal investments are to be made sult of privately conducted pro-
and that others are not to be duction. The government is not a
made. Even the richest nation producer and consequently cannot
must exercise wisdom in its choice add one iota to this fund. The only
of capital projects and apply effi- way government can obtain prop-
ciency in the execution —or else erty is to take it away from pri-
pay the penalty in lack of prog- vate sources. This taking from
ress. There never is enough sur- private funds may enlarge the
plus production capacity to put in- government investment fund, but
to operation all desirable capital at the same time it diminishes
projects. the amount private interests can
Our capital plant is a part of invest. From the standpoint of
our wealth and has been accumu- public interest this leaves but one
lating since our colonial days — question: ‘Is the public best
some three hundred years. The served through capital invested by
estimates of the total wealth in private sources or by govern-
our nation tell how very gradual ment?”
is the real increase of our capital
plant. Our national wealth is esti- Private Profit and Public Interest
mated at between six hundred and Let's consider the assumption
seven hundred billion dollars. This that private capital investment ig-
takes in all public and private nores or works against public in-
material possessions and includes terest. It is quite true that the ac-
all lands, buildings, railroads, tuating motive of private capital
communication facilities, facto- investment is profit. However, the
ries, machinery, tools, livestock, public benefits because of, and not
homes, furniture, inventories of despite, that motive. The profit
goods, all property, everything. motive itself surrounds private
This accumulated wealth of three capital investment with checks
hundred years amounts to less that work to the advantage of the
than two years of output at cur- public.
rent rates of production. There is There is no question that the
no room for waste. The record be- most needed capital projects are
speaks emphatically the constant those producing maximum public
need to direct the ever-limited good. They are the ones that pri-
capital investment fund to the vate capital investment will seek
greatest possible utility. because they promise the best re-
The surplus production avail- turn and the greatest security.


===== PAGE 47 =====

1959 PRIVATE INVESTMENT IS BEST 45

The personal whims of private million-dollar kitty for more or
investors do not really determine less useless projects to put on a
their capital investments. They show for the folks back home and
make those that the public wants help Mr. Congressman retain his
them to make. Not only must their seat.
investments produce a product or We often find government de-
a service that the public wants, partments working at cross pur-
but they must produce at a price poses. For instance, while one de-
the public will pay. It boils down partment is taking fertile land
to this: The public is boss. Pri- out of production at government
vate investors serve themselves expense, another department is
best by serving the public best. putting arid land into use through
So, regardless of motive, private costly government support.
capital investment does work for Through government investment,

the public good. millions and billions have been di-
verted from economic good to po-
Political Allocation of Resources litical use — and such diversion is

The assumption that govern- a waste that no nation can afford.
ment capital investments, subsi-
dies, and guarantees work solely The Unseen Waste
for public good is pure fancy. The third supposition that the
Government is not an economic government has unlimited funds
but a political institution: politi- also is entirely without founda-
cal motives underlie all govern- tion. We have already observed
ment action. Successful politics is that the government has no re-
not always good economics. Politi- sources; whatever resources the
cal expedience is far too often op- government obtains are taken
posed to public good. away from the people. But do we

Government is in the hands of realize what this means to our na-
politicians. Politicians are mere tional welfare? A useless “pork
men, always with an eye to their barrel” investment by govern-
own interests. So it is that most ment means that a useful and
government capital investments needed production operation must
are made, not where they are most be denied, a waste multiplied
needed, but where they will best thousands of times and measured
serve political purposes. in billions of dollars. This is a

The “pork barrel” is tapped at serious waste at all times and is
every session of Congress, con- particularly devastating now when
gressmen dipping into the multi- our rapidly growing population


===== PAGE 48 =====

46 THE FREEMAN April

demands a greatly expanded and government has assumed financial
highly efficient capital plant. obligations, direct and contingent,
That capital investment con- that exceed the entire national
fined to private sources is an ef- wealth by at least 50 per cent.
fective builder of the nation’s
capital plant is not only sound A Day of Reckoning
theory but also solid fact. During For a while, and only a while,
the first century and more of our . government can skate along on
national existence, capital invest- this thin ice by the device of
ment came almost entirely through money and credit manipulation —
private investors. Under this monetizing the debt and increas-
policy, and starting from scratch, ing taxes that already are confis-
the people of this nation achieved catory. But the government, like
the industrial leadership of the a person or a private organiza-
world and provided a general liv- tion, must eventually come to a
ing standard unequaled in all his- day of reckoning. And what then?
tory. Government obligations are
How far have we now moved either worthless, or they are a
toward government investments, mortgage on private property.
subsidies, and guarantees? No one What, then, has happened to pri-
knows the exact extent of these vate ownership in the United
financial obligations. We do know States if government has mort-
that the government has pledged gaged all private property up to
its credit for an astronomical the hilt and beyond?
amount. The financial obligations The old-time medicine man
assumed by the government have peddled his nostrums with high
been estimated at a thousand bil- promise but sad result. It was a
lion dollars.* This includes the na- swindle. And they are swindlers
tional debt, the direct liabilities today who would have us believe
such as social security, and the that “government must make capi-
myriad government guarantees. If tal investments because the greedy
a private organization had liabili- private interests will not.” If pub-
ties exceeding assets, it would lic good is the objective, the gov-
probably be called bankrupt. The ernment can best serve that pur-
®See “What Is the National Debt?” by Pose by restoring and leaving
Medford Evans, THE FREEMAN, October CAPital investment where it be-
1967. p. 87. longs — in private hands.  o o



===== PAGE 49 =====

~~ . Jd 7 ON
Se ,
ZA J ‘
xr

ROBINS

ANN TERRILL

Ann Terrill is a
California housewife.

HYMNS of truth may die unsung
For want of men to sing.

But robins yearly take the job

Of building brand new Spring.
They live their simply patterned way
And somehow carry on,

While nations fall for lack of faith
To build a pattern on.

For robins never waver

In their task (a stubborn trait) ;
Nor set up limits on their time
(They can’t be thinking straight)!

What makes that type so unconcerned?
They might produce much more

Of sprightly sunny melody

Than Spring had bargained for.

What then? There is no guarantee

Of payment in advance!

They’re just too energetic, so

Best look on them askance.

They might encounter lots of things
Like hurricanes or snow,

Or scrawny worms or bigger birds
Or cats, or brats, you know!

They haven't asked a subsidy
From God to cover these,

And don’t you think they’re foolish
To depend so much on trees?

But they go right on working,

Bearing young and singing, too!

Why haven't they the sense to change?
Improve! The way we do.

47


===== PAGE 50 =====

Some questions for consideration by...

| mooern|

_ ‘IDOL |
| worsHiPERS |

IDOL WORSHIP is frowned upon as Now, our dictionary defines
a general practice in this sophisti- progress as “improvement, steady
cated age. You would have to con- advancement toward perfection,
duct a lengthy survey to find even moving toward a higher state.”
one of our “progressive” citizens Nothing wrong with that. So the
worshiping a graven image. How- trouble must be one of definition,
ever, the worship of certain ideas what the word means for different
and concepts, without benefit of people. Just what is progress, any-
iconic figures, is widespread and way?
provokes no censure. Among the so-called common
Such an idol is the idea of people, and many well above the
“progress” or whatever at the common level of intelligence, there
moment passes for progress. To exists a pathetic belief that prog-
be labeled ‘‘unprogressive’”’ in ress is synonymous with the
one’s political, social, or economic march of time; that by some
views is even more fatal to popu- strange arcane law, life is bound
larity than advanced halitosis, to improve as the years pass.
B.O., or a propensity to canni- If we take the long, long view,
balism. To be “agin” progress, or encompassing tens of thousands
even neutral in the matter, marks of years, some such law or prin-
one as a dangerous reactionary, ciple may operate in human af-
out of sympathy with the aspira- fairs. I like to think that there is
tions of the common man. such a law, even though it is diffi-
cult to prove. But the widespread
Mr. Tripp, rotired from the building business, belief that progress is automatic,

now devotes full time to travel, writing, and . .
promotion of free enterprise. synchronized with the mere pas-

48

VOLLIE TRIPP


===== PAGE 51 =====

1959 MODERN IDOL WORSHIPERS 49

sage of time, is mischievous and smash an idol, a persistent perni-
dangerous. It gives rise to unrea- cious faith in the excellence of
soning worship of the new, the everything novel, or that looks
novel, the contemporary, and rules novel — which implies that old
out all sound objective appraisal ways are therefore bad, merely
of the merits and real value of because they are old. The all but
modern trends, fads, and fashions. universal acceptance of this con-

“Progress,” the sacred cow of cept here in our own country has
the masses, the graven image of made many abominable things
those unable or unwilling to think tolerable, or even fashionable,
soundly, has come to mean an urge while many of our tested and
for constant change and innova- proved ideals are now suspect.
tion for its own sake, with little Warning signals are ignored as
concern for betterment, improve- “progress” takes us on its dizzy
ment, and a ‘gradual movement spin through time and space.
toward perfection.” With millions
clinging to this childish belief, is Newness Is Not All Progress
there much wonder that the world As we read the tragic story
has experienced many violent of great nations for the past 1,500
swings of the pendulum during years, it must be apparent that
much of its long history? not all chronological movement

There has undoubtedly been was truly progressive, in a sense
some net progress in the past of improvement or net benefit to
3,000 years. Medicine and science the people. The great Saracen
have lengthened, nearly doubled, civilization gave way to barbar-
the life span. Hunger and priva- ism. Culture and learning in Eu-
tion have been banished over rope had its ups and downs. Gen-
large areas of the earth. Brutaliz- ghis Khan's thirteenth century
ing toil has likewise disappeared despotism was no improvement
from many sections. But it is im- over the tyrannies of the ancient
portant to remember, too, that world. Does this look like prog-
within this short span many great ress? Yes, if we accept the puerile
cultures have taken sickening doctrine that the new must be bet-
plunges into intellectual and spir- ter than the old; that the old must
itual darkness. Some disappeared, ever give way to the new and
never to rise. Others are slowly modern, even if it violates our
clawing their way out and up- tenderest concepts, and all com-
ward, inch by tortured inch. mon sense.

In this essay, I am trying to Was the Spanish conquest of


===== PAGE 52 =====

50 THE FREEMAN April

the Incas, the Aztecs, and Toltecs able to their finesse in convincing
marked by any net improvement people that they represent the
of life generally among these ‘wave of the future.” Actually,
“heathen” people? Doubtful in neither communism nor socialism
the extreme. At any rate, most of is a new concept of human rela-
them showed their appreciation tionships, and their appeal is
for this enforced “progress” by likely to grow less as it becomes
dying. increasingly difficult to maintain
Materially, we are still on a this fiction of novelty.

progress binge. But this morn-

ing’s paper carries the startling Hold Fast to the Good

news that 25 per cent, one out of In our attempt to demolish the
four youths of 17, get into serious belief that the new is better than
trouble with the law. Is this prog- the old, because it ¢s new, it would
ress? The use of dope in my state, be foolish to defend the old on the
California, has reached alarming same specious grounds. When our
proportions. This, too, must be a limited government concept was
desirable state of affairs if we set up on this continent, it was
believe those who claim that every truly “something new.” Nothing
substitution of the new for the in the history of governments had

old means progress. been like unto it before. It is still
new, much newer than anything
The Wave of the Future” Russia or China has to offer. Yet,

It is doubtful if any one false its great success was not due to its
belief of modern times has innovations, its shining modern-
wrought more total misery and ity, but because it appealed to
mischief than this; that all change man’s oldest but timeless longing:
is progressive, and therefore bene- the desire to be free.
ficial. Hence, all old beliefs and St. Paul said: “Test (try) all
lessons should be tossed onto the things. Hold fast to that which
scrap pile. Such beliefs are inim- is good.” This bit of profound ad-
ical to all true progress, for vice ought to be broad enough and
they prompt man to abandon sound enough to reconcile the
many of his most dearly won ad- most divergent views. Note well
vances — his freedoms — even be- the part about ‘holding fast” to
fore he has fairly sampled and that which is good, or true. That
tasted them. the “good” might be new, or old,

Much of the success of the com- is implicit in Paul's words. He
munists and socialists is attribut- neither said nor did he imply any


===== PAGE 53 =====

1959 MODERN 1DOL WORSHIPERS bl

merit in a thing because it pos- If we want moral progress, and
sessed or lacked age. no real progress is possible ex-
It is true enough that a blind cept as we move forward morally
unreasoning worship of the old, and spiritually, we shall have to
the tested, and familiar has held go back, back, to the ancient wis-
back real progress in many parts dom of Christ, Moses, Socrates,
of the world, and does still. But and others of our “eternal con-
this resistance to change can temporaries.”
hardly be said to obtain in Amer-
ica. If we except a few insular
mountainous sections of the South, Our modern social planners, ex-
the error has been too great an perimenters, innovators do not un-
impatience with yesterday's derstand real progress. They seem
values for the nation as a whole. to think that progress lies in
In our frantic pursuit of prog- chucking overboard the lessons
ress, of change for its own sake, and verities of yesterday for
we have collided head-on with whatever political nostrums and
certain forces that are unchange- theories they can cook up today.
able and eternal. Human nature is Or tomorrow.

The Forms of Tyranny Are New

such a force. It changes, if at all, If we take in enough of the
imperceptibly. If you doubt this, time span, the “new” becomes old,
read again Aesop’s Fables. and the “old” becomes new once

more. At least, this applies in the
Unchangeable and Eternal realm of political, social, and eco-

In our frenetic desire to change nomic values. Certainly there is
and mold the citizen into a pre- nothing new about a Welfare
conceived pattern, we are stirring State. Governor Bradford tried it
up ancient resentments that mani- over 300 years ago. It failed, of
fest in many dangerous forms. In course, for it was in conflict with
the program to give the nation man’s fundamental nature and in-
that “new look” socially, we are stincts.

running afoul of economic princi- Nor is oppression and tyranny
ples that were old when Hammu- new, though the excuses given by
rabi was a lad. contemporary tyrants and despots

Mind, I'm not “agin” progress. may have a bright new ring. But
But the only kind I'm interested the yearning for freedom, for
in is the kind defined in the dic- liberty and individual expression,
tionary — that which will improve is as old as time, a part of man's
my condition, not just change it. soul. This desire may lie dormant,


===== PAGE 54 =====

52 THE FREEMAN April

moribund, for centuries, stamped newness of tomorrow ean impart
into silence by dictators and their any merit, to an idea or a philoso-
agents, to burst forth again when phy.
the time is ripe. The formula for progress, the
Progress, real progress, does only kind that will help man move
not follow the weary pattern of upward and forward toward his
substituting one variety of slavery destiny, was clearly set forth by
for another, a course the world the Apostle. “Test all things.
has followed for tens of centu- HOLD FAST — to that which is
ries. Neither hoary age nor the good.” * oo

DLtriotie dong

ALFRED K. ALLAN

SAMUEL FRANCIS SMITH was born he graduated in 1829, he went on
in Boston shortly after the turn to Andover Theological Seminary
of the nineteenth century. The in Massachusetts, and ordination
Smith home was near that city’s in 1834.

famous old Christ Church, and One evening in February 1832,
the chiming of the steeple bell after he had finished his studies
seemed to beckon young Samuel to for the day, Samuel was browsing
seek his calling in the ministry. in the library of the home he
From Harvard University, where maintained near the Seminary. He
—_— chose a couple of German lan-
Mr. Allan writes each month for the mogazine guage books of children’s songs

Partners, and his work has pppeared in nu-

merous other American periodicals. from one of the bookcases, settled


===== PAGE 55 =====

1959 SAMUEL SMITH’S PATRIOTIC SONG 53

before his desk, and slowly turned pressed. He felt that the song
the pages. One song caught his at- beautifully expressed love of God
tention, a patriotic tune for chil- and country and vowed that he
dren, and the thought came to him would bring the verses to the at-
that American children also need- tention of all the world.
ed a song that would tell of the That Fourth of July 1832, there
beauty and goodness of America. were special patriotic ceremonies
He drew a piece of writing at the historic Park Street Church
paper from a desk drawer and to in Boston. Lowell Mason arranged
the music of an old folk tune be- to have his friend's song per-
gan to set down the words of a formed by the children’s chorus at

poem going through his brain: these ceremonies. The young
My country ’tis of thee, voices rose on the wings of Samuel
Sweet land of liberty, Smith’s glowing song, sending a
Of thee I sing: stir of inspiration throughout the

Land where my fathers died, entire gathering. This was the
Land of the pilgrims’ pride, first public performance of Amer-
From ev'ry mountain side, ica. Soon the song was known all
Let freedom ring. over the world and it has become
one of our favorite patriotic tunes.

In 1889, our nation celebrated
The George Washington Centen-
nial, and Samuel Smith composed
a new fifth verse to America as

It took him just half an hour to
write four complete verses of his
patriotic song, concluding with
the stirring:

Our fathers’ God, to Thee, his special tribute to “The Father
Author of liberty, of Our Country.” These are the
To Thee we sing; words as Samuel Smith himself
Long may our land be bright, read them before a hushed and
With freedom’s holy light; attentive audience that April day
Protect us by Thy might, in 1889:
Great God, our King. Our joyful hosts today,
The next morning he mailed his Their grateful tribute pay,
verses to his dear friend, Lowell Happy and free.
Mason, a famous composer, or- After our toils and fears,
ganist, and choir leader of the After our blood and tears,
day. Strong with our hundred years,

Lowell Mason was greatly im- O Lord to Thee. oo


===== PAGE 56 =====

A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN

coucaTioN wh mm

WHEN he was put in charge of the well-educated applicants to be de-
project of creating the first atomic ficient. They tended to be ‘know-
submarine, Admiral H. G. Rick- how”-minded — meaning that they
over ran into unforeseen difficul- knew how to handle certain spe-
ties with the problem of “lead cific jobs but lacked the ability to
time.” For the type of military apply general principles to things
equipment needed in World War and situations that were still un-
II, lead time — the time “which discovered. Admiral Rickover had,
elapses between conception of a quite literally, to recruit young
new idea, its development, and men and begin with them at a
finally its fruition in the completed level of training that should have
new article rolling from the pro- been a matter of course for them
duction lines” — was two and one- during sophomore year in high
half years. But for things like school.
atomic power plants for underseas His experience with the build-
ships, lead time must begin in the ing of the Nautilus provoked Ad-
high schools, with a type of edu- miral Rickover into making an
cation that is no longer in fashion. extended study of American high
The war-making machines of school education in general. What
the modern age (and, inferen- he encountered was quite horrify-
tially, the peacetime machines of ing —and the horror drips from
the day after tomorrow) are so almost every page of the Ad-
complicated both to plan and to miral’s book, Education and Free-
manufacture that it takes a long dom (Dutton, 256 pp. $3.50).
schooling in the understanding of Taken in conjunction with Dr.
abstract concepts to work on their James B. Conant’s far more tem-
production. Faced with the task perately expressed but almost
of assembling a staff for the plan- equally critical The American
ning and building of the sub- High School Today (McGraw-
marine Nautilus, Admiral Rick- Hill, 140 pp. $1.00), the Admiral’s
over found most of his supposedly book represents a reaction to the

54


===== PAGE 57 =====

1959 EDUCATION AND FREEDOM b5

modern professional ‘‘education- predominating substance of a sec-
ist” control of our public schools ondary school education.

that is impossible to dismiss with

a remark that amateurs should ‘life Adjustment”

know their place. The book is too It all goes under the name of
formidably documented for that “life adjustment.” “Life adjust-
—and besides, there is Dr. Conant, ment’ consists of such things as
a professional educator, standing learning how to work a lathe,
right beside Admiral Rickover to how to plane a board, how to cook
back him up in matters of diag- a simple meal, how to dress one’s

nosis. hair, how to converse with a boy
} on a date, and how to think about
Emphasis on “Know-How problems of “marriage and

The two men are in profound family” well in advance of taking
agreement on the deterioration of a wife or a husband and having
the content of modern high school children. Indeed, all the things a
education. For thirty years now child was once supposed to learn
the trend has been away from the at home, or in Sunday school, or
idea that a student goes to school at the Y.M.C.A., or at summer
to master certain basic principles camp, are now thought of as legit-
and tools that will enable him to imate material for high school
surmount any and all problems in courses.
later life. Instead of grounding On the level of “social studies,”
the student in the art and science “life adjustment” consists of
of proceeding from the general learning how to “get along with
rule to the specific instance, the others.” The accent is on the
modern educator has tended to group, not on the individual.
break things up into little pieces. ‘Democracy’ thus becomes a mat-
For example, in place of a rigor- ter of learning how to conform
ous training in physics (which to a “norm” that is based on ma-
must give the student some un- jority opinion. Competition is
derstanding of machines in gen- frowned upon, for the idea of
eral), the modern high school boy competition involves measuring
or girl gets a course in how to one’s self up from the norm, not
drive an automobile, or how to merely “adjusting” one’s person-
repair an electrical switch. Thus ality to it. Unwittingly, “life
“know-how,” on an immediate adjustment” becomes a seedbed
practical level, replaces basic phil- for socialistic dependence on the
osophic preparation for life as the State.


===== PAGE 58 =====

66 THE FREEMAN April

Admiral Rickover does not deny will a mere two years spent in ac-
that it is a good thing for a boy quiring a smattering of bad
to know how to drive an automo- French turn out a logical candi-
bile or repair a leaky faucet. All date to work in an embassy
he says is that the high school is abroad.
not the proper place to acquire At times Admiral Rickover slips
such skills. These require only the into broad parody in his zeal to
shortest kind of “lead time” for make a point. But the parody is
their mastery. What the high always used to high-light the ex-
school should concern itself with istence of trends that are unmis-
is the problem of “lead time” re- takable. In his far more dispas-
lating to the long-term future of sionate way Dr. Conant establishes
the student. Instead of specific and anatomizes the same trends.
“know-how” courses, the high
school should provide the basic Corrective Measures
fundamentals of language, mathe- On the mechanics of correction,
matics, science, and the humani- however, Dr. Conant and Admiral
ties. Learning to drive an auto- Rickover differ considerably.
mobile is something for Saturday Where Admiral Rickover advo-
morning or for any day in July cates the creation of special “dem-
or August vacation period that onstration” high schools for bright

the family can spare the car. students, Dr. Conant thinks our
problems might better be solved
Deeper Needs Neglected within the peculiarly American

In substance, Admiral Rickover framework of the ‘‘comprehen-
condemns ‘life adjustment” on sive” high school as it exists to-
its own terms —it does not really day. He would simply put pres-
“adjust” the student to the deeper sure on the bright student to take
needs of the complicated modern harder courses in the basic sub-
age. If we are to continue to im- jects. For the “academically tal-
prove the standard of life, says ented” students (about 15 per
Admiral Rickover, we must edu- cent of the total now attending
cate our talented youth as it has high school) Dr. Conant advocates
never been educated before. four years of mathematics, four
Courses in “general mathematics” years of one foreign language,
(how to balance the checkbook, four years of English, three years
etc.) will never prepare a boy to of science, and three years of “so-
design a supersonic plane or make cial studies” (meaning history,
new discoveries in electronics. Nor economics, etc.) —a total of


===== PAGE 59 =====

1959 EDUCATION AND FREEDOM b7

eighteen “basic” courses requir- ing of American secondary edu-
ing fifteen or more hours of home- cation.
work each week. In the past, Dr. Conant has ac-
Dr. Conant would not rule out tually advocated the abolition of
the ‘“frills’”’ or the vocational the private secondary school. In-
courses for those who are not asmuch as the modern “indepen-
“academically talented.” But he dent” preparatory school has all
would “limit” his “comprehensive- along been offering the type of
ness.” As for Admiral Rickover, education which Dr. Conant now
he would throw out the frills and advocates for the ‘academically
put vocationalism where it be- talented” high school student, one
longs, in separate schools. As for wonders if there has been any re-
teacher training, Admiral Rick- cent change in Dr. Conant’s think-
over is vehement on the subject. ing on the subject of private
To qualify for a job teaching cal- schools.
culus or Latin in a modern high
school, one must have spent many A Common Sense Approach
dreary hours acquiring “credits” As for Admiral Rickover’s pro-
in the “methodology” of present- posal that American corporations
ing a subject. As a result of this finance a number of “demonstra-
rigmarole, the calculus or Latin tion” high schools, isn’t that a
teacher is forced to skimp his recognition that there may be
training in basic subject matter. more hope in the free-wheeling
He is likely to be expert in the citizen than in the State when it
tricks of getting student atten- comes to a matter of saving the
tion and deficient in his knowledge day for educational common sense?
of Cicero or Catullus. Admiral Indeed, if it had not been for
Rickover thinks this is a ridicu- the superior competition offered
lous situation. Dr. Conant, on the by the private schools in prepar-
other hand, doesn’t seem to be ing boys and girls for admission

particularly worried about it. to the better colleges, there would
} be no contemporary market for
The Role of Private Schools books like Admiral Rickover’s

Neither Dr. Conant nor Ad- Education and Freedom and Dr.
miral Rickover considers the im- Conant’s The American High
portant, indeed the crucial, role School Today. One hopes that both
which private — or “independent” Admiral Rickover and Dr. Conant
— schools might logically be will spend some prayerful hours
counted on to play in the upgrad- of meditation upon this fact. » o


===== PAGE 60 =====

b8 THE FREEMAN April

+> The Uncommon Man tive, and responsibility. The for-

By Crawford H. Greemewalt. mula holds for the entire organi-

New York: McGraw-Hill. 130 pp. zation, from the top down.

$4.00. Big as Du Pont is, its president
WHAT 1S the secret behind the Du allows no room for ‘organization
Pont success story? Listen to a men.” Take the top management
man qualified to speak on the sub- group at Du Pont, for example. It
ject: consists of 34 men: members of

“First, (the company’s) realiza- the Executive Committee plus the
tion that an enterprise will suc- heads of manufacturing and auxi-
ceed only to the extent that all in- liary departments. In surveying
dividuals associated with it can be the group, Mr. Greenewalt says
encouraged to exercise their high- that about the only common char-
est talents in their own particular acteristic he can recognize is that
way. Second, the provision of max- they are all very able men and
imum incentives for achievement, each, in his own way, a rugged
particularly in associating the for- individualist.
tunes of the individual with that There is a premium placed on
of the corporation.” original thinking, and conformity
The speaker is Crawford H. is anathema. The author traces the

Greenewalt, president of Du Pont principle back to 1902 when the
and McKinsey Foundation lecturer first incentive plan was introduced
at the Columbia University Grad- at Du Pont. It carried a provision
uate School of Business. Mr. that, in the conferring of awards,
Greenewalt’s lectures are pub- special consideration be given in-
lished as The Uncommon Man. dividuals who achieved a goal “in
Previous titles in the series are the face of objection, from within
New Frontiers for Professional and without.” The provision still
Managers by Ralph Cordiner of stands.

General Electric, and Big Business Conformity is also avoided at
and Human Values by T. V. Du Pont by decentralization, nec-
Houser of Sears, Roebuck. essary anyway because of cor-

The Greenewalt precept of man- porate size and operational com-
agement is, in a nutshell: Stimu- plexity. Decentralization is based
late uncommon effort and suppress on what Mr. Greenewalt calls
conformity. It follows that the job “shared responsibility.” The au-
of management is to find just the thor makes the point that while
right product-mix of individu- authority can and must be dele-
ality, freedom, authority, incen- gated, total job responsibility can


===== PAGE 61 =====

1959 THE UNCOMMON MAN 59

never be. Authority should be suf- with the stimulus of freedom,
ficient to discharge fully the re- reward, and recognition, individu-
sponsibilities of the job, but au- ality and creativity blossomed in
thority and responsibility should this country as in no other. Un-
be coupled with —to quote from common men were uncovered and
The Uncommon Man — “the prin- common men were inspired to un-
ciple of individual laissez faire.” common deeds.

Under these conditions intel- What, then, is the challenge of
ligent selection becomes a critical 1959 and the 1960's? It is, in
matter. Somebody recently figured Greenewalt’s words, “to create an
that there is a promotion every atmosphere in which men, what-
ten minutes at Du Pont. So per- ever their level of talent, gain
sonnel appraisals there are fre- through their association with
quent and thorough. For the one another. When this condition
ambitious and the talented, oppor- exists, those of lesser gifts are
tunity is always knocking, ob- drawn upward by the precept and
serves the knowledgeable author. example of those whose abilities

The essence of good manage- are greater. And those of higher
ment is to nurture ambition and attainments are elevated toward
develop talent. Management new peaks of achievement with
should adopt the principle that a the rising level of the average.”
business prospers to the extent WILLIAM H. PETERSON
that all its human relationships —
customer, employee, supplier, = The Rise and Fall of Society
stockholder, public — are fruitful, By Frank Chodorov. New York:
harmonious, and mutually benefi- Devin Adair. 168 pp. $3.95.
cial. The principle — and here is I HAVE the highest regard for
where the provocative Greenewalt Frank Chodorov’s two earlier
work ranges into social philosophy books, One Is a Crowd and The
with verve and insight — holds for Income Tax, but neither is as im-
society as well. portant as the volume under re-

The author notes that the view. The present book is the re-
United States of America was sult of an investigation of the role
founded on the grand design of played by man’s economic activi-
human freedom. He refers to the ties in shaping the widely various
observation of "Charles Darwin societies in which he has lived.
that men differ less in the sum Man is not an isolate, but neither
total of their abilities than in the is he wholly gregarious; he is a
degree to which they use them. So, creature who maintains his iden-


===== PAGE 62 =====

60 THE FREEMAN April

tity as a person even while living gods will take over. Then we may
his life in communities. Why do have what Nock described as “econ-
men stay together? How is social omism’ —the doctrine that the
cohesion to be accounted for? Nu- whole of life consists in the produc-
merous theories have been elabo- tion, exchange, and consumption of
rated in answer to these questions, things. This, however, is far from
but most of them overlook the ob- what it means to say that man is
vious and basic fact about man, an economic animal.
that he is an economic animal. One
of them errs in the opposite direc- The Importance of Man
tion and insists that he is little All creatures take the world
or nothing more than that! pretty much as they find it, save
Economic activity in a healthy man. Man alone has the gifts which
society is in the realm of means, enable him to entertain an idea and
being somewhat analogous to di- then transform his environment in
gestion in a healthy individual. A accordance with it. He is equipped
person has aims for his life which with needs which the world as it is
far transcend the processes by cannot satisfy. Thus he is com-
which his body is maintained; but pelled to alter and rearrange the
if these processes begin to falter natural order by employing his
and work badly, his attention is energy on raw materials so as to
drawn away from his life’s goaland put them into consumable form.
begins to focus on them instead. He Before he can do much of anything
becomes a hypochondriac. Given else, man must manufacture, grow,
other circumstances he may be- and transport. His creaturely needs
come a glutton. In any event, he man shares with the animals, but
has idolatrously erected means into he alone employs economic means
ends, to the detriment of both to satisfy them. This is an enor-
means and ends. mous leap upward, for by relying
Economic activity, too, may be- on the economic means man be-
come an end in itself for a person comes so efficient at satisfying his
whose life lacks more worth-while bodily hungers that he gains a
goals, or even for a society when measure of independence from
its value system is scrambled. It is them. When they are assuaged, he
up to a society’s religious institu- feels the tug of hungers no animal
tions to keep its value system in re- ever feels: for truth, for beauty,
pair; and if they fail to respond for meaning, for God.
with new duties to meet new occa- It conveys something like a half
gions, it is inevitable that the false truth and a whole error to label


===== PAGE 63 =====

1959 THE RISE AND FALL OF SOCIETY 61

man a spiritual being. He is, in of the State. On the opposite side
fact, a spiritual being who eats, of the fence is a school of thought
feels the cold, and needs shelter. which appears to regard it as a
Whatever may be man’s capacities cosmic calamity that each soul is
in the upper reaches of his nature sullied by connection with a body
— to think, dream, pray, create — which must be fed and kept warm.
it is certain that he will attain to Spiritual purity will not be at-
none of these unless he survives. tained until there is deliverance
And he cannot survive for long un- from this incubus; but until that
less he engages in economic activ- happy day let us try to forget that
ity. At the lowest level economic man has creaturely needs which
action achieves merely economic only the products of human labor
ends: food, clothing, and shelter. can satisfy. Nothing in this scheme
But when these matters are ef- to dispose men to pay any atten-
ficiently in hand, economic action tion to economics! But there is a
is a means to all our ends, not only third way.
to more refined economic goods but The mainstream of the Judeo-
to the highest goods of the mind Christian tradition is character-
and spirit. Add flying buttresses ized by a robust earthiness which
and spires to four walls and a roof, makes it as alien to the materialism
and a mere shelter for the body de- of the first of the above alterna-
velops into a cathedral to house the tives as to the disembodied spirit-
spirit of man. uality of the second. Soul and body
are not at war with each other, but
The Whole of Human Nature are parts of our total human na-
Chodorov picks his way between ture. It is the whole man who needs
two schools of thought, neither of to be saved, not just the soul. Crea-
which has much excuse for being turely needs are, therefore, legiti-
except as a protest against the er- mate; and being legitimate they
rors and one-sidedness of the other. sanction the economic activities by
On the one hand are the economic which alone they can be met.
determinists, who argue as if man Such an understanding of the hu-
were merely a soulless appendage man situation prepares us to ac-
to his material needs. For them, the cept the idea that economics is a
modes of production at any given discipline in its own right, gov-
time decree the nature of man’s in- erned by its own natural laws. This
stitutions, his philosophies, and tradition also makes it plain that
even his religions. Economics, un- economic action is in the realm of
der this dispensation, will be a tool means, and thus properly subject


===== PAGE 64 =====

62 THE FREEMAN April

to noneconomic criteria. Chodorov them an economic advantage at the
arrives at a similar conclusion by expense of others.

a somewhat different route. Eco- Carry the question of causation
nomics, he says, “is a science, con- one step back of The State and we
cerned with the immutable and con- find that this monstrosity is fueled
stant laws of nature that determine by a characteristic of human na-
the production and distribution of ture to want something for

wealth. ... Economic laws are self- nothing. Man must earn his bread
operating and carry their own sanc- by the sweat of his brow; this is a
tions, as do all natural laws.” basic rule of the game. But man,
: fallen man, has no intention of
The State Out of Bounds playing by the rules if he can get

How do the interrelated parts of around them. He needs his bread
this discipline work themselves and finds a way to get it with dry
out? Chodorov has brooded over brow; he steals it. “Robbery,”
this question for the better part of Lewis Mumford once observed, “is
a lifetime and presents here as the first labor-saving device.” The
clear an explanation of the work- victim appeals to the constable, but
ings of the free-choice market sys- all too often in history he has found
tem as I have ever read. But if him allied with the thief.
these laws are self-operating, why The common enemy of all honest
does the economic order occasion- men is the bipartisan structure
ally bog down on us? In answering called The State, comprised of those
this one, Chodorov calls our atten- who hold office and wield power, on
tion to The State, the power struc- the one hand, plus the private per-
ture in society. The out-of-bounds sons who benefit by the exercise of
State has never respected the in- power designed to give them eco-
tegrity of the economic order, and nomic advantage over their fel-
it has repeatedly intervened at the lows. This unsavory alliance tends
behest of some individuals to give to enlarge continuously at the ex-
pense of society, paralyzing, as it
grows, all spontaneous social rela-
Any book reviewed in this Book Section (or tionships. Production diminishes
any other current book) supplied by return as more and more freeloaders climb
mail. You pay only the bookstore price. We aboard The State, until finally The
pay the postage anywhere in the world. Thing can no longer pay its bills
Catalogue on request. and collapses, pulling society down

THE BOOKMAILER, Box 101, New York 16 | With it.
Unless. . . . unless books like this



===== PAGE 65 =====

1959 NATIONALISATION IN BRITAIN 63

can make their weight felt in time. lected. Huge annual deficits, in-
This book is addressed to those curred by many of the national-
“who firmly maintain that only man ized industries, are squeezed from
is made in the image of God, that the taxpayers of England. The
the State is a false idol.” There are socialistic ideals of state owner-
many who believe this, and many ship and management have been
more who are ready to believe it. achieved.
But they aren’t quite sure what The British Welfare State has
this belief means for them and promised security from womb to
what it demands of them. This tomb. It has succeeded in taxing
book will help them understand. its people beyond endurance. In-
EDMUND A. OPITZ flation adds its pressures to the
manifold miseries of Britain.
All this is described in a new
book by a former socialist who
By E. Kelf-Cohen. New York: St. poygonally participated in several
Martin's Press. 310 pp. $5.50. phases of it. Nationalisation in
BEFORE the turn of this century, Britain is a comprehensive, objec-
the power and pervasive influence tive study by R. Kelf-Cohen, an
of the British Empire seemed in- official in the British government
vincible. The England of Queen for the decade following World
Victoria, Disraeli, and Gladstone War II. It presents wise Ameri-
presented to the world a spectacle cans with a remarkable oppor-
of empire in its finest flowering tunity for extracting a most im-
and fruition. Now, notwithstand- portant lesson from history.
ing Churchill's brave words, we By steps almost identical with
witness the liquidation of the those that brought disastrous na-
British Empire, and what was tionalization to Britain, the United
once a great nation is all but bank- States, a few years later, races
rupt. toward the socialistic skidway.
Twice racked by war, the In England, socialism was effec-
formerly free economy of England tively promoted by the Fabian So-
has been further crippled by the ciety. Here, groups like Americans
nationalization of major indus- for Democratic Action perform a
tries. Bureaucratic state control similar role. Liaison between ADA
of industry has succeeded inde- and American labor politicians
pendent management. Confusion closely parallels the relationship
and inefficiency prevail. Interests that has characterized Fabian-La-
of consumers are ignored and neg- bor relationships in England.

t= Nationalisation in Britain:
The End of a Dogma


===== PAGE 66 =====

64 THE FREEMAN April

Just as the British Liberal Party facts so well presented by Mr.
fell under domination of English Kelf-Cohen could be assimilated
labor unions, so a wing of our own by the socialists of ADA and our
Democratic Party has become an American labor unions, it is con-
instrument of American labor un- ceivable that the realities of na-
ion dictators. tionalization would temper enthu-

If the current trend is not siasm born of dogma and lack of
quickly changed, our state and experience and of present inabil-
federal governments will soon be ity to extract a lesson from his-
controlled by ardently socialistic tory. “If some of the criticisms
union leaders. Michigan, one-time appear harsh,” the author writes
Republican stronghold, even now in his Preface, ‘detailed evidence
is so controlled. Labor union dic- will be provided to justify them.”
tators now exercise pervasive in- The author was sympathetic
fluence in the national Congress. with the philosophy of socialism

Nationalisation in Britain until the facts of socialism gave
should be widely read by wise citi- him a more mature viewpoint.
zens of the United States. If the LOUIS RUTHENBURG

We invite your subscription to

MODERN AGE

Published Quarterly

Edited by RusseLL Kirk
VoL. 3, No. 2 (Spring 1959)
“HUMANE LETTERS”

Including contributions by Eric Vorcerin, FREbERICK DD. WILHELMSEN,
PETER STANLIS, RonErT J. NEEDLES, M.D., and “M.T.V.”

84.00 the year 81.25 the copy

Address: 64 East Jackson Boulevard, Chicago 4, Hlinois



===== PAGE 67 =====

MEMO ON PRIVATE ENTERPRISE

No. 6 in a series

“...Parcel Post should pay its full way...
and...not cover freight service...”

The Local Cartage National Con- ganization representing the local
ference long has been concerned trucking industry—made up of
over continuous efforts by certain thousands of small businessmen
groups of commercial shippers performing motor carrier trans-
who “‘gelfishly’’ seek to increase portation services within the
parcel post size and weight limi- nation’s cities and their immedi-
tations ‘for their own benefit at ate commercial areas.
the taxpayer's expense.” The LCNC has asserted that
In a statement to a Senate “parcel post is by no means an
Post Office subcommittee in June essential function of government’’
1958, the LCNC urged that Con- and ‘is not . . . communication
gress preserve existing size and ... but is rather transportation.”
weight limits and continue to It said further, “This is not to
give active consideration tomeas- mean that we favor elimination
ures “which will further remove of the parcel post service, but
government from unnecessary, rather to point out that parcel
unhealthy, and unfair competi- post should pay its full way in
tion with private transportation the Post Office function, and

business.” that it should not cover freight
The LCNC urged that Congress service...”
“enact into law measures . . . The LCNC has pointed out that

which would implement the rec- none of the many local, state and
ommendation of the Hoover Com- Federal taxes paid by private
mission to eliminate parcel post enterprise carriers ‘“‘are paid or
subsidies by requiringand author- accrued to ‘public benefit’ when
izing the Postmaster General to commercial shipments move via
seek parcel post rates adequate the below-cost parcel post sys-
to cover all direct and indirect tem.” Clearly, the positions of
costs.” the LCNC are in the best interests

The Local Cartage National of every citizen and deserve wide
Conference is the national or- support.

For a free copy of the informative
booklet, “The Truth About Parcel Post,’ al LWy
address the Public Relations Division, QL PRESS >

AcenC 4
RAILWAY EXPRESS AGENCY WZ
219 East 42nd Street, New York 17, N. Y. 4S AD)
A PRIVATE ENTERPRISE IN THE PUBLIC SERVICE



===== PAGE 68 =====

Rerorm invariably rests its case on the good will, intelligence, and
selflessness of men who, invested with the power to do so, will put
the reform into operation. And the lesson of history is that power
is never so used. Never. I am convinced, on the other hand, that all
of the evils of which these honest people complain can be traced
to the misuse of power, and am therefore inclined to distrust
political power of any kind... . The only “constructive” idea that
I can in all conscience advance, then, is that the individual put his
trust in himself, not in power; that he seek to better his under-
standing and lift his values to a higher and still higher level;
that he assume responsibility for his behavior and not shift his
responsibility to committees, organizations and, above all, a super-
personal State. Such reforms as are necessary will come of them-
selves when, or if, men act as intelligent and responsible human
beings. There cannot be a “good” society until there are “good”

men.
FRANK CHODOROV

THE FREEMAN may be forwarded any-

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