===== PAGE 1 ===== IDEAS ON LIBERTY NOVEMBER 1959 Our First Thanksgiving . . . . . . . Sartell Prentice, Jr. 3 In a Free Economy . . . . . . . . T. N. Carver 12 How To Disemploya Slave. . . . . . Dean Russell 15 Let’s Not Choose Slavery . . . . . . Indianapolis Star 20 Government's Expanded Role . . . . . First National City Bank 22 Piracy — Reincarnated . . . . . . . LleonardE. Read 26 The Moral Antagonism of Capitalism ‘ and Socialism . . . . . . . . . BarbaraBranden 28 How the Spiral Spins. . . . . . . . Henry Hazlitt 32 On the Training of Scientists and Moral Responsibility . . . . . . . Daniel K. Stewart 34 The United Nations . . . . . . . . H. P. B. Jenkins 39 Growth — the Dutch Example . . . . . William H. Peterson 40 ! India’s EconomicRoad . . . . . . . William Henry Chamberlin 46 | The Auction Sale . . . . . . . . . VollieTripp 49 The Economics of King David . . +. +. . Orien Johnson 54 ] A Project in Learning . . . . . . . John Chamberlain 57 | OtherBooks . . . . . . . . . . 61 8 THE FOUNDATION | FOR ECONOMIC EDUCATION, INC. Irvington-on-Hudson, New York ===== PAGE 2 ===== The year-old Brownlee power dam on the Snake River between Idaho and Oregon, built by the local independent electric company, the {daho Power Company. The project embraces the Oxbow dam and the Hetls Canyon dam down river from Brownlee. How to save taxpayers a half-billion dollars This big electric power dam offers cause of the pressure groups that a clear example of the difference constantly promote federal govern- between federal government elec- ment electricity. They tried for tricity and electricity developed by eight years to make the govern- independent electric companies. ment build this project with a half- Brownlee dam is saving money billion dollars of taxpayers’ money. for you and other U.S. taxpayers, This time, every taxpayer in the because it was built by an inde- country got a break because the in- pendent power company instead of dependent company built the dam. by thefederal government. Brownlee = But sometimes the pressure groups and its two companion dams, in win, and you and everybody else fact, will pay about $150,000,000in pay hidden taxes for their victory. federal taxes over a 25-year period, Remember this difference the plus about $100,000,000 n taxes to next time you hear somebody beat- states and local communities. ing the drums for more federally But this power project almost cost owned and operated electric power taxpayers a half-billion dollars be- systems. When they win—you lose. 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SECURITY of principal assured through progressive, conservative manage- ment and the additional protection of $10,000.00 insurance on each account. COAST FEDERAL SAVINGS JOE CRAIL. PRESIDENT MEMBER — FEDERAL HOME LOAN BANK — FEDERAL SAVINGS AND LOAN INSURANCE CORP, Coast Federal Savings, Department "/H” 855 South Hill St. at 9th (Please check-mark as desired.) ‘ Los Angeles 14, Calif. 1. [0 1 enclose [7] check, [J] money order, to open 2, [J] Please send me a copy of your a savings account in the following name or Booklet “Let's Get Acquainted”, names: Savings Account Information and latest financial statement. Name Address City Zone State ===== PAGE 4 ===== FYE A MONTHLY JOURNAL OF IDEAS ON LIBERTY NOVEMBER 1959 Vol. 9 No. 11 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 $12.00 a year per person on the mailing list. Donations are invited in any amount — $5.00 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 copies, 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 ‘‘How To Dis. employ a Slave,’ ‘The Moral Antagonism of Capitalism and Socialism,” "How the Spiral Spins,” and ‘India's Economic Road.” Any current article will be supplied in reprint form if there are enough inquiries to justify the cost of the printing. Pr] ===== PAGE 5 ===== SARTELL PRENTICE, JR. OUR American Thanksgiving Day are asked to remember what Ed- is a unique holiday, a day set aside mund Burke, in one of the most by Presidential Proclamation so eloquent phrases to be found in all that we may thank our Heavenly literature, described as “that Father for the bountiful gifts he little speck, scarce visible in the has bestowed on us during the mass of national interest, a small year, seminal principle, rather than a It is also a day dedicated to the formed body”’— the tiny vessel, Family, the basic unit of our more accurately to be described as American society, the core and a “cockleshell,” the Mayflower, and center around which all else in its hundred passengers, men, America revolves. This, too, is in women, and children, who sailed accord with our basic religious on her. faith, for the Commandment has Twelve years earlier, in 1608, come down to us to “honor thy they had fled from religious per- father and thy mother.” secution in England and estab- And so, from wherever we may lished a new home in Holland. be, North, South, East, or West, Despite the warm welcome ex- we Americans travel, sometimes tended by the Dutch, as con- great distances, back to the family trasted with the persecutions they hearth, to be present at the tradi- had endured in England, their tional Family Reunion and Feast love for their homeland impelled on Thanksgiving Day. them to seek English soil on which But Thanksgiving Day has still to raise their children, English another meaning; on this day we soil on which they would be free to worship God in their own way. Mr. Prentice is an economist, lecturer, writer, Finally, the Pilgrims landed, as and Counselor on Profit Sharing, now living Ki in Dobbs Ferry, New York. we all know, on Plymouth Rock in 3 ===== PAGE 6 ===== 4 THE FREEMAN November the middle of December 1620, and the daily food ration of their Pil- on Christmas Day, in the words of grim forebears. Governor William Bradford,! they Within three months of their “begane to erecte ye first house landing on Plymouth Rock, ‘of for commone use to receive them one hundred and odd persons, and their goods.” scarce fifty remained. And of So was established the first these in ye time of most distres, English colony in New England. ther was but six or seven sound Three years later, when the persons, who, to their great com- plentiful harvest of 1623 had been endations be it spoken, spared no gathered in, the Pilgrims ‘sett pains, night nor day, but with aparte a day of thanksgiving.” abundance of toyle and hazard of Governor Bradford adds, “Any their own health, . . . did all ye generall wante or famine hath not homly and necessarie offices which been amongst them since to this dainty and quesie stomaks cannot day.” endure to hear named; and all this willingly and cherfully . .., shew- Three Kernels of Corn ing herein their true love unto But what of the intervening their freinds and bretheren. A years? After all, there were har- rare example and worthy to be vests gathered in in 1621 and remembered.” 1622. One half of the crew of the I know of one family, descended Mayflower, including ‘many of from the Pilgrims, who place be- their officers and lustyest men, as side each plate at their bounteous ye boatson, gunner, three quarter- table on Thanksgiving Day a little maisters, the cooke, and others,” paper cup containing just three also perished before the little ves- kernels of corn, as a constant re- sel set sail on her return voyage minder of the all too frequent to England in April 1621. days during these first years when In the following excerpt from three kernels of corn represented his History, Governor Bradford "This and subsequent quotations are vividly describes the lot of the taken from Bradford's History. “of Pli- Pilgrims during these early years. moth Plantation” from the original manu- Writing about conditions in the of the General Court. Boston: Wright & had been planted, he says: Potter Printing Company, State Printers. “All ther victails were spente, 1898. and they were only to rest on Gods Presumably 1647, the last year covered . . in Bradford's History. providence; at night not many ===== PAGE 7 ===== 1959 OUR FIRST THANKSGIVING 5 times knowing when to have a Yet, following the harvest gath- bitt of any thing ye next day. ered in in the fall of that same And so, as one well observed, had year, 1623, and for all the years need to pray that God would give that followed, Governor Bradford them their dayly brade, above all tells us, “Any generall wante or people in ye world . . . . ; which famine hath not been amongst makes me remember what Peter them since to this day.” Martire writs (in magnifying ye Three years of near starvation Spaniards) in his 5. Decade, page — and then decades of abundance. 208. ‘They’ (saith he) ‘led a miser- Was this a miracle? able life for 5. days togeather, with Or is there a rational explana- ve parched graine of maize only, tion for this sudden change in the and that not to saturitie’; and fortunes of our Pilgrim fore- then concluds, ‘that shuch pains, fathers? shuch labours, and shuch hunger, he thought none living which is So They Tried Freedom not a Spaniard could have en- Describing events that took dured.’ place in the spring of 1623, Gov- “But alass! these [the Pilgrims], ernor Bradford answers our ques- when they had maize (yt is, Indean tions, in eloquent words that corne) they thought it as good as a should be engraved on the hearts feast, and wanted not only for 5. and minds of all Americans: days togeather, but some time 2. “All this whille no supply was or 3. months togeather, and heard of, neither knew they when neither had bread nor any kind of they might expecte any. So they corne. begane to thinke how they might “Yet let me hear make use of raise as much corne as they could, his [Peter Martire’s] conclusion, and obtaine a beter crope then which In some sorte may be ap- they had done, that they might plied to this people: ‘That with not still thus languish in miserie. their miseries they opened a way At length, after much debate of to these new-lands; and after things, the Govr (with ye advise these stormes, with what ease of ye cheefest amongest them) other men came to inhabite in gave way that they should set them, in respecte of ye calamities corne every man for his owne per- these men suffered; so as they ticuler, and in that regard trust seeme to goe to a bride feaste to themselves... . And so as- wher all things are provided for signed to every family a parcell them.” of land, according to the propor- ===== PAGE 8 ===== 6 THE FREEMAN November tion of their number for that end, only for present use (but made no devission for inheritance) and ranged all boys and youth under some familie. This had very good success; for it made all hands very industrious, so as much more corne was planted then other waise would have bene by any means ye Govr or any other could use, and saved him a great deall of trouble, and gave farr better contente. The women now wente willingly into ye feild, and tooke their little-ons with them to set corne, which before would aledg weaknes, and inabilitie; whom to have compelled would have bene thought great tiranie and oppres- sion. “The experience that was had in this comone course and condi- tion, tried sundrie years, and that amongst godly and sober men, may well evince the vanitie of that conceite of Platos and other an- cients; — that ye taking away of propertie, and bringing into a comone wealth, would make them happy and florishing; as if they were wiser then God. For this comunitie (so farr as it was) was found to breed much confusion and discontent, and retard much imploymet that would have been to their benefite and comforte. For ye yong-men that were most able and fitte for labour and gervice did repine that they should spend their time and streingth to worke for other mens wives and children, with out any recompence. The strong, or man of parts, had no more in devission of victails and cloaths, then he that was weake and not able to do a quarter ye other could; this was thought injuestice. The aged and graver men to be ranked and equalised in labours, and victails, cloaths, &ec., with ye meaner and yonger sorte, thought it some indignite and dis- respect unto them. And for mens wives to be commanded to doe servise for other men, as dresing their meate, washing their cloaths, &c., they deemd it a kind of slav- erie, neither could many husbands well brokke it. Upon ye poynte all being to have alike, and all to doe alike, they thought them selves in ye like condition, and one as good as another; and so, if it did not cut of those relations that God hath set amongest men, yet it did at least much diminish and take of ye mutuall respects that should be preserved amongest them. And would have bene worse if they had been men of another condi- tion. “Let none objecte this is men’s corruption, and nothing to ye corse it selfe. I answer, seeing all men have this corruption in them, God in his wisdome saw another course fiter for them.” This new policy of allowing each o | ===== PAGE 9 ===== 1959 OUR FIRST THANKSGIVING 7 to “plant for his owne perticuler” “Thou shalt not covet” and “Thou produced such a harvest that fall shalt not steal.” that Governor Bradford was able When it came time for the to write: spring planting in the following “By this time harvest was come, year, 1624, the Pilgrims went one and in stead of famine, now God step further. In Governor Brad- gave them plentie, and ye face of ford’s words: things was changed, to ye rejoy- “I must speak of their planting sing of ye harts of many, for which - this year; they having found ye they blessed God. And ye effect of benefite of their lastyears harvest, their particuler planting was well and setting corne for their par- seene, for all had, one way and ticuler, having therby with a other, pretty well to bring ye year great deale of patience overcome aboute, and some of ye abler sorte hunger and famine. That they and more industrious had to spare, might encrease their tillage to bet- and sell to others, so as any gen- ter advantage, they made suite to erall wante or famine hath not the Govr to have some portion of been amongst them since to this land given them for continuance, day.” and not by yearly lotte, for by that means, that which ye more in- The Importance of Property Rights dustrious had brought into good Our first Thanksgiving should, culture (by much pains) one year, therefore, be interpreted as an ex- came to leave it ye nexte, and pression of gratitude to God, not often another might injoye it; so so much for the great harvest it- as the dressing of their lands self, as for granting the grateful were the more sleighted over, Pilgrims the perception to grasp and to lese profite. Which being and apply the great universal prin- well considered, their request was ciple that produced that great har- granted. And to every person was vest: Each individual is entitled to given only one acrre of land, to the fruits of his own labor. Prop- them and theirs, as nere ye towne erty rights are, therefore, insepa- as might be, and they had no more rable from human rights. till ye seven years were expired.” If man abides by this law, he Describing the results of the will reap abundance; if he violates application of this policy in the this law, suffering, starvation, and year 1626, Governor Bradford death will follow, as night the day. tells us: This is the essential meaning of “It pleased ye Lord to give ye the two great Commandments, plantation peace and health and ===== PAGE 10 ===== 8 THE FREEMAN November contented minds, and so to blese dreds did “setting crops for their their labours, as they had corne particuler” begin slowly to be ac- sufficient (and some to spare to cepted in England — and decades others) with other foode; neither were to pass before the new prac- ever had they any supply of foode tice became sufficiently wide- but what they first brought with spread to provide an adequate them. After harvest this year, they food supply for the population. sende out a boats load of corne 40. As recently as 1844, an English or 50. leagues to ye eastward, up writer thus describes the condi- a river called Kenibeck. .... God tions which then existed: preserved them, and gave them “Full one third of our popula- good success, for they brought tion [in the United Kingdom] sub- home 700 ti. of beaver, besids sist entirely, or rather starve, some other furrs, having little or upon potatoes alone, another third nothing els but this corne, which have, in addition to this edible, them selves had raised out of ye oaten or inferior wheaten bread, earth.” with one or two meals of fat pork, The discovery and application or the refuse of the shambles of this concept of individual prop- [slaughterhouses], per week; while erty rights, derived from the Crea- a considerable majority of the re- tor, was the real “seminal princi- maining third seldom are able to ple” so eloquently phrased by the procure an ample daily supply of great English statesman and ora- good butcher's meat or obtain the tor, Edmund Burke. As it devel- luxury of poultry from year to oped from this tiny seed into a year. “formed body,” it became the cor- “On the continent of Europe, nerstone of our Declaration of In- population is still in a worse con- dependence and of our Constitu- dition... .”3 tion, and produced the extraordi- No country was ever more ‘“‘un- nary explosion of individual hu- Treatise on Artificial Incubation” by . man energy that took place in Mr. W. Bucknell, London: p. 36, quoted i 3 in Dictionary of the Farm by Mr, W, L. nineteenth century America. Rham (Charles Knight and Co., 1844), . . . pp. 418-419. I am indebted to my uncle, Famine Persisted in England the late Col, E. Parmalee Prentice, for . the vast amount of research he carried . In England, meanwhile, farm- 4 in gathering material such as this ing “in common” continued to be for his remarkable book, Hunger and . Printers, Ltd, 19561), without which this hundred years. Not until the sec- . ¢ of the article could not have been ond decade of the seventeen hun- written, ===== PAGE 11 ===== 1959 OUR FIRST THANKSGIVING 9 derdeveloped” than the wilderness phy, “From each according to his of New England on which our Pil- ability, to each according to his grim forebears set foot. The ma- need”? jority of those who landed from Would the Pilgrims ever have the Mayflower in December 1620 learned and applied the concepts perished prior to that first great of the dignity of the individual harvest of 1623. For two years and the sanctity of property — the they followed the age-old custom idea that each individual is en- prevalent in England of “farming titled to the fruits of his own in common” — and they starved. labor — the Law of Individual Through suffering, starvation, Freedom and Individual Respon- and hardship, they learned and ap- sibility? plied the fundamentals of freedom Freedom for the individual, with — and, instead of starvation, they recognition and respect for the grew crops sufficient not only for right of each individual to his their own needs, but to spare, en- property, is essential to the release abling them to exchange their sur- of individual human energy, which plus with the Indians for beaver alone can raise the standard of liv- and other “furrs.” ing of any people. It is for this reason that aid If Pilgrims Had Had ‘‘Foreign Aid’? sent to support socialist govern- But suppose some foreign coun- ments (which deny the right to try, or their mother country, had private property) and aid sent to taken pity on them in their misery help underdeveloped peoples that and sent them ample food supplies have not yet learned the lessons during those first terrible years; taught to the Pilgrims by hard this would have been impossible, experience — it is for this reason for England herself was virtually that such “aid” may be likened to on a starvation diet, as were most attempting to fill a bathtub with- of the countries on the continent out first putting the stopper in.4 of Europe. But suppose it had ——— been possible; suppose they had (Che SEIMCIEn, Pelesn Cee marie: received such “foreign aid”? mental foreign aid may be clarified by Would not the Pilgrims have this statement by Joseph Stalin in Marz- . ‘« . nq ism and the National and Colonial Ques- continued to “farm in common”? (New York: Four Continent Book Would they not have continued to Corporation, 1940), pages 115 and 116:— follow the practice that more than “It is essential that the advanced coun- . to b tries should render aid—real and pro- two centuries later was to become longed aid—to the backward nationalities a basic tenet of Marxian philoso- in their cultural and economic develop- ===== PAGE 12 ===== 10 THE FREEMAN November Would not America be render- continued to plague the Old World ing a greater service to these peo- for some two centuries to come. ples by teaching them, through We are not as yet suffering the precept and example, the real Pilgrims’ privation, but we are re- meaning of our first Thanksgiving verting to arbitrary communaliza- — and by pointing out to them the tion on an enormous scale, reset- truth and applicability of the great ting the same old-world stage. ideals of individual freedom and Our present tax structure is a individual responsibility under case in point. Its aim is not to fi- God? nance the costs of a strictly The young American nation limited government, but rather to grew and prospered because for reform society, to remold our lives, more than a century and a quarter and to redistribute our wealth ac- the sanctity of property rights cording to the ideas of economic was recognized as being indispen- and social planners dedicated to sable to human rights; because the socialization, the communiza- her people were free to “plant for tion, of our once free America. their own particuler”; because the As a consequence, we are now resultant “free market economy’ supporting vast armies of govern- invited domestic and foreign capi- ment bureaucrats who swarm over tal seeking a profit. the land — and over much of the world — devouring our substance What of Today? like a plague of locusts. Today, one Is America, today, still abiding in every six employed Americans by these principles? is on a government payroll. Not only is the answer “No!” As a consequence, we are com- but there is evidence on every pelled to contribute from the hand that we are re-enacting the fruits of our labor billions of dol- very mistakes our Pilgrim Fath- lars for subsidies and handouts ers made during their first years granted by politicians in their of “farming in common,” mis- endless search for votes and per- takes which produced nought but sonal power. disaster, re-enacting in the New As a consequence, we have gov- World the age-old miseries of con- ernment operating vast businesses stant hunger and starvation that — already representing 20 per cent ment. Otherwise it will be impossible to of the industrial capacity of the bring about the peaceful co-existence of USA — businesses that ride the the various nations and peoples within a backs of the American people as single cconomic system that is so cssen- . tinl for the final triumph of Socialism.” interest free, rent free, cost free, ===== PAGE 13 ===== 1959 OUR FIRST THANKSGIVING 11 and tax free princes of privilege, for himself and for his children. in competition with tax-paying en- Each time I produce less, in my terprises. work, than enough to earn a profit In our program of aid to so- for my employer, I am stealing cialist governments and to under- from someone else — and contribu- developed nationalities and peo- ting toward creating unemploy- ples that have not yet learned to ment for others and a higher cost apply the great universal truths of living for all. tested and proved by our Pilgrim forebears, are we not seeking to This Thanksgiving Day, let us, fill the bathtub without first see- each in his own way, humbly ask ing to it that the stopper is in forgiveness for the degree to place —in a fruitless attempt to which we have all violated the buy loyal allies with money? Re- great “seminal principle,” either ferring to our sixty billion dollar directly, or through tolerating its Foreign Aid since World WarIl,on violation by others. January 27, 1957, Hon. Spruille Then, this Thanksgiving Day, Braden said: “It is a sum equal let us highly resolve to dedicate to the assessed valuation of all our lives, as individuals, to “plant- real and other property in our ing for our own particuler,” seventeen biggest cities!” rather than living as parasites on Each time I accept a govern- the productive energy of others; ment handout, for any reason let us dedicate our lives to a re- whatsoever, I am stealing from newed application of the ideal of the only Treasure House any peo- individual freedom and individual ple has — the surplus wealth cre- responsibility, which our Pilgrim ated by the productive energies of forebears learned at such sacrifice, millions of individual men and and which they passed down to us women, each seeking a better life as our most precious heritage. ===== PAGE 14 ===== A noted educator explains how the “rewards” for working, waiting, and risking are allocated, through choices made by consumers . . . IN A FREE ECONOMY T. N. CARVER IF YOU are one of those who still Besides, the moneylender and believe that labor produces all the insurance company would ex- value, you can try the equivalent pect to be paid, and it would be of a laboratory test. You can try a question whether you were really being a self-employed farmer or a self-employed farmer. machinist to see if you can pro- An easier way to avoid having duce anything of value without to wait or to run risks would be doing some waiting or running to work for an employer. In that some risk. case you certainly would not be a If you don’t want to do any self-employed farmer. But your waiting, you can, of course, borrow employer would do the waiting by enough money to pay your ex- paying your wages every week and penses while waiting for your thus carry the burden of waiting. crops to mature and be harvested But the burden would have to be and sold. In that case you can shift borne by somebody; shifting it on- the burden of waiting onto the to the employer would not elimi- lender. But the waiting has to be nate it. done by somebody. The employer would also carry Or you can insure your crops the burden of risk by paying your against loss by fire, flood, hurri- wages in full even though he in- cane, hail, or grasshoppers, thus curred losses short of bankruptcy. shifting the burden of risk onto This loss also has to be borne by the insurance company. But the somebody. Shifting it onto the em- risk has to be borne by somebody. ployer would not eliminate it. Shifting it does not eliminate the The formula, “Without labor burden. nothing of value is produced,” can —_— be repeated as truly with respect Dr. Carver, now 94, was for 32 years Profes- ey 1s f sor of Political Economy at Harvard. to waiting and risking. Without 12 ===== PAGE 15 ===== 1959 . IN A FREE ECONOMY 13 waiting nothing of value is pro- running of risk. Boys like to skate duced, or without the running of over thin ice, but not too thin; risk nothing of value is produced. or climb tall trees, but not too tall. The only question is: Who does Gamblers seem to get a thrill out the waiting or risking? of gambling. A small loss may be If you want to be critical, you _ regarded as money well spent for can prolong the argument by con- a good time; but there is a limit tending that waiting and risking to the loss that can be accepted are not true costs and should not without regret. be paid for. That depends on what It is said of Mr. Edison that, on you mean by cost. one occasion, his treasurer told him that his money was all gone Overcoming Disinclination and he was broke. All he said was, In the last analysis cost is disin- “Well, we had a helluva good time clination — disinclination to do spending it, didn’t we?” and went something that has to be done or on with his research. But we are that someone wants to have done. not all Edisons, nor are we able Money cost is the amount that has to take losses, beyond a certain to be paid to overcome someone’s point, “with a frolic welcome.” disinclination. Losing a whole year’s crop is Up to a certain point, even labor too much of a calamity for a self- may be, and frequently is, per- employed farmer to stand. Hence formed for the pleasure of the his desire for crop insurance. doer. Beyond that point it ceases to be pleasure and, in a free econ- Workers Expect To Be Paid omy, has to be paid for because of Why should men expect to be disinclination. In a slave economy paid for doing things to which it is different. they are disinclined? That is not The same may be said of wait- a reasonable question. The real ing and risking. Men are gener- question is: Can you get enough ally not disinclined to wait for things produced to satisfy your their wages until the end of the needs and desires without it? In a day — usually not until the end of free economy you can’t. And we the week. They may be slightly might as well accept that fact and disinclined to wait until the end stop the argument unless we are of the month; but to wait until the willing to change to a slave econ- end of the year, or longer, would omy. be too much to endure. While it is true that men will do The same rule applies to the a little work for the pleasure of ===== PAGE 16 ===== 14 THE FREEMAN November doing it, also a little waiting and All are equally entitled to the risking, you can’t get enough of rewards that a free market nor- those things done by free men. In mally allows them. The reward of this respect all three things rest working is wages, of waiting is in- on the same economic foundation, terest, of risking is profit. eo eo oe that of necessity. From the Los Angeles Times, August 29, 1959. Socialism Is a Disease ER I UNDERSTAND that in the United States there are still those who think that the machinery of government can be used as a substitute for personal responsibility on the part of the gov- erned. This idea, as we know only too well in Britain, is the open road to disaster. It changes persons with responsibilities into robots with rights. And while you fortunate Americans will last a little longer than the rest of us, your doom is also assured if you, like us, rely upon politics and collective action to relieve you of the normal and natural responsibilities of healthy men. For social- ism is not a system; it is a disease. The “something for nothing” mentality is, in fact, an economic cancer. In England we have suffered nearly five years of effective socialist government. But that is only the end of the story; we are merely completing 50 years of a sloppy sentimentalism -in public affairs of which the present socialism is merely the logical outcome. In the process we have murdered old virtues with new deals. Well-meaning, shallow-thinking, kindly people, aware of the scriptural injunction that “the greatest of these is charity,” have failed to notice the distinction between the real article and the giving away of other people's money. So, having lost our faith, we come to the end of the story; we have accepted false hopes and practiced a charity which is nothing of the kind. From Rights for Robots, a speech delivered in 19050 by SIR ERNEST BENN Single copies on request from the Foundation for Economic Education, Irvington-on-Hudson, N. Y. ===== PAGE 17 ===== THE YEAR 1787 covered two events on December 14, 1792, Evans peti- that were to have a profound tioned it to grant him a national effect on the American people and patent to replace his several state the way we live. First, and by far patents for a “land carriage with- the most important, the founders out cattle.” of this nation met in Philadelphia It took Oliver Evans another 13 to draft a constitution for a new years to actually construct his self- idea in government. Second, the propelled road vehicle. Like the free state of Maryland granted to Constitution, its birthplace was Oliver Evans a patent on his draw- also Philadelphia. On or near the ings for a new idea in transporta- tenth day of July 1805, his steam tion, “a Steam-Carriage . . . to vehicle, the Orukter Amphibolos, move . . . without the aid of ani- moved ponderously up Market mal force” on the roads of that Street under its own power to state. Center Square. America’s first In September of 1787, the work “automobile” was on the road — of that Constitutional Convention and no newspaper bothered to re- was finished and submitted to the cord either the date or the event people of the 13 independent states itself! For several days there- for their approval. Some 18 after, Evans entertained the good months later, the new government people of the City of Brotherly came into formal existence. And Love by driving his vehicle around Dean Russell, formerly of the Foundation the Square. Then, since his ma- staff, is Professor of Economics at Rockford chine was built to operate on both obetion oa study he her socently made on land and water, he astounded them a Sousrimpact on the Ameri- hy driving it into the Schuylkill Illustration: The Bettmann Archive River. (That same idea was used 15 ===== PAGE 18 ===== 16 THE FREEMAN November with great success some 137 years was too primitive for general use. later by our armed forces in World It remained for James Watt, be- War II.) In 1813, Evans predicted ginning in 1762 and continuing that “the time will come when the through 1782, to perfect a prac- people will travel [in road car- tical and versatile steam engine riages] . .. almost as fast as birds that could be used as the source of can fly.” power for factories, ships, trains, and automobiles. Steam Power Development Those steam engines were soon While Oliver Evans built the being used extensively by various first American road vehicle that English manufacturers — in flour ran under its own power, he was mills, breweries, textile factories, by no means the “father” of the and so on. William Murdock, the automobile. A French artillery inventor of gas lighting, also used captain, Nicholas Cugnot, was that source of power for a crude ahead of him by 36 years. In 1769, train that ran on oak rails in Brit- he used a steam engine as the ish quarries and coal pits in 1784. source of power for a self-pro- And in 1815, another Englishman, pelled gun carriage. That clumsy, George Stephenson, converted three-wheeled, barely workable Murdock’s primitive seven-mile- vehicle has an excellent claim to an-hour locomotive into the early first place in the direct ancestry nineteenth century model that was of the magnificent automobile you soon doing 70 miles an hour on drive today. metal rails. The steam (and sail) Actually, Hero of Alexandria ship “Savannah” crossed the At- may have started the whole thing lantic from Georgia to Liverpool about 130 years before the birth in 1819. And one of Sir Golds- of Christ when he invented a sort worthy Gurney’s “steam automo- of toy that was run by steam. biles” made a sustained journey But for the next 1,800 years, that from London to Bath and return, magnificent source of power lay a distance of 200 miles at a speed largely dormant. While several of 15 miles per hour, in 1829. Dur- men in various countries experi- ing the early 1830's, more than a mented with steam power in the hundred of those steamers were 1600's, it wasn’t until 1706 that operating on the roads of England. Thomas Newcomen developed the Six of them were large passenger first workable steam engine. It was buses, built by Walter Hancock. In used to pump water from British a period of three months, one of coal mines. That engine, however, his buses traveled 4,200 miles and ===== PAGE 19 ===== 1959 HOW TO DISEMPLOY A SLAVE 17 carried 12,761 passengers, with- history of man. For example, it out an accident or serious delay. appears in the laws of Hammu- By the mid-1830’s, steam en- rabi. We know further that it con- gines were the source of cheap tinued to exist throughout most power for an extensive industrial of the world until well into the complex (manufacturing and nineteenth century. There is, how- transportation) in Western ever, no general agreement as to Europe and the United States. For the principal cause of its abolition. better or for worse, the modern It is certainly safe to say that age of mass-produced and low-cost government itself wasn’t responsi- industrial products was in full ble for abolishing human bondage. swing. If a government wants to stay in } business, its actions must gen- An Incomplete Picture erally reflect the attitudes and de- Karl Marx (and others) reached sires of the people under its au- the conclusion that it was unques- thority. So the actual laws that tionably for the worse. And, ad- were written against slavery were mittedly, they produced some tell- primarily acknowledgments of an ing evidence and persuasive ideas existing situation that had de- to support their convictions. But veloped from other causes. perhaps they were so busy slash- Nor was education, as such, re- ing at the individual trees that sponsible for ending slavery; the they had no idea at all of the vast educated classes throughout the forest with which they were deal- ages had generally tolerated, justi- ing. They condemned the age of fied, and supported the institution. mechanical power because it If they hadn't, it couldn’t possibly brought women and children into have continued to exist. And to the deplorable factories of that era say that the people in general were — at meager wages and long hours responsible for abolishing human of killing labor. But the picture bondage, still leaves unanswered they drew was far from complete their reasons for doing so. Was the because, among other things, they answer Christianity? To some con- utterly ignored the part that the siderable extent, yes. But if that mechanical revolution was playing were the primary answer, one in the abolition of the most an- would still be faced with the awk- cient curse of mankind — legalized ward task of explaining why we human slavery. Christians required some 1,900 We know that the institution of years to complete the job. The slavery is as old as the recorded Columbia Encyclopedia (and other ===== PAGE 20 ===== 18 THE FREEMAN November standard references) acknowl- machinery did not seem to promise edges the great part played by any release from such unintelli- Christianity, and then goes on to gent toil.... [But as the mechan- the part played by machinery: ical revolution] went on, the plain “The introduction of Christi- logic of the new situation asserted anity is generally thought to have itself more clearly. Human beings had little effect [on slavery dur- were no longer wanted as a source ing the first few hundred years of of mere indiscriminated power. the Christian Era], though it did What could be done mechanically mitigate conditions by inculcating by a human being could be done principles of humanity, and it did faster and better by a machine.” give hope and courage to the long- oppressed classes. . . . In Western Economic Arguments Against Slavery Europe, outright slavery had Whatever else slaves might be largely disappeared by the later used for, it is dead certain that Middle Ages, though it still re- they could never be trusted with mained in such manifestations as the responsibility of operating the the use of slaves on galleys. . . . power-driven ships, trains, auto- The British, the Dutch, the mobiles, and factory machines that French, the Spanish, and the Por- were becoming increasingly com- tuguese all engaged in the [Afri- mon in the western world of the can] slave traffic [beginning in late eighteenth and early nine- the sixteenth century and continu- teenth centuries. Thus the ever- ing well into the nineteenth]. ... present moral arguments against The British, in abolishing slavery, slavery were soon buttressed by were primarily motivated by eco- the overriding economic argu- nomic, not humanitarian, in- ments against it. terests. While the institution pro- Beginning in 1833, Parliament duced great wealth under the mer- rapidly outlawed the practice of cantilist system, it became un- slavery throughout the vast Brit- profitable with the rise of indus- ish Empire. (In the home islands trial capitalism.” themselves, a 1772 court decision H. G. Wells, in his The Outline had already decreed that the 15,- of History, discusses the same 000 or so imported slaves in Brit- idea: ain at that time were automatic- “A vast proportion of mankind ally free men because “as soon as in the early civilizations was em- a slave set his foot on the soil of ployed in purely mechanical drud- the British islands he became gery. At its onset, power-driven free’) Slavery in the French Em- ===== PAGE 21 ===== 1959 HOW TO DISEMPLOY A SLAVE 19 pire was abolished in 1848. Russia short-staple cotton from its tena- liberated her slaves in 1861. cious seeds, it produced an unbal- Slavery in the Dutch Empire was ance between cleaning and picking, outlawed in 1863. Brazil continued planting and cultivation. The the practice until 1888. Even to- faster the cotton was cleaned, the day, slavery continues to exist in more labor was required in the various nations and areas where field. Thus slavery, moribund in the primary source of power has 1790, became a dominant institu- long been the muscles of men and tion....” animals. (Information on present- day slavery may be secured from A Machine that Prolonged the United Nations Committee on the Use of Slave Labor Slavery.) The idea of human slavery was Of course, it could have been completely foreign to the precepts merely a remarkable coincidence on which this nation was founded. that slavery diminished as me- And when the Constitution of the chanical sources of power in- United States was drafted, the creased. For example, what about founders wrote into it the first slavery in the United States? necessary steps toward its aboli- Since this nation had as many or tion. Thus it is probable that this more machines than the others, country would have led all others why wasn’t slavery voluntarily in abolishing human slavery, if abolished here? The history of Whitney had invented a cotton human bondage in the United picker along with his cotton States also lends support (with a cleaner. reverse twist) to the theory that Before the cotton gin, not much machines, rather than morality or cotton was grown in the South be- education, may have been of pri- cause it was too expensive to clean mary importance in determining by hand — even when the hands the issue of slavery. Roger Bur- belonged to a slave. But Whitney's lingame, in his Backgrounds of first crude machine enabled a man Power explains that reverse twist to clean 50 pounds of cotton a day, while discussing Eli Whitney's and rapid improvements to the ma- 1793 invention of the gin for chine soon doubled that amount. cleaning cotton. The resulting demand for cotton “The gin led directly to a social, caused its cultivation to become economic, and political crisis. By highly profitable. But picking cot- increasing a hundredfold the pro- ton was such a backbreaking and ductivity per worker in separating monotonous task that it was the ===== PAGE 22 ===== 20 THE FREEMAN November last job a free man would take. of more than 80 hand pickers Since there was no machine to re- would have been of vast help in lieve the drudgery of the job — and abolishing slavery by again mak- since no education or skill was re- ing it uneconomic and thus per- quired — it automatically fell to mitting the long-suppressed moral slaves. ideas against it to take effect. But, Before Whitney’s invention, most unfortunately, such a ma- slavery was rapidly becoming both chine was not invented for more unprofitable and immoral — in Ala- than a hundred years after the bama as well as in Massachusetts. gin. Thus the issue of slavery in But with the gin, slave labor be- the United States was settled by a came highly profitable in the hot fratricidal war. The side with the areas of the country where cotton best machines won, and the slaves could be grown. In due course, were set free. That was as it most educators, legislators, and should have been. But it is to be churchmen in the South were soon hoped that a few of the victors defending or tolerating the ‘“pe- stopped to ponder the probability culiar institution” — or were re- that it was more a matter of cli- maining discreetly silent about it. mate and economics, rather than A modern cotton picking ma- morality and government, that de- chine that now performs the labor termined which side was which. LET'S NOT CHOOSE SLAVERY “SLAVERY was a good life, if you slave in Crittenden County, Ken- had a good master. Just eat and tucky, when the Civil War ended. sleep and play and take care of a To a generation which has grown small part of the farm.” up with the bloodhounds-and- This was Dan Hughes speaking blacksnakes concept of the slavery in Louisville at the age of 112. era in America, his words have a He knew his subject; he was a strange sound. They shouldn’t. ===== PAGE 23 ===== 1959 LET’S NOT CHOOSE SLAVERY 21 There are thousands of persons in tion against price-cutting competi- this country today, of all races, tion, these are the fruits of secu- who believe that slavery is a good rity — and the attributes of life — if you have a good master. slavery. It makes little difference When Dan Hughes was a slave whether a person or a govern- with a good master, he had secu- ment is the master. rity. His parents had no worry for The more Americans call upon the future when he was born. Such government for cradle-to-grave training as he received in his security, the more they ask politi- youth — and it was equal to the cians for guaranteed jobs, guar- education received in those days anteed profits, guaranteed living, by many free men — was provided the closer they come to placing without cost to him by his benev- themselves in slavery. Some say olent “owner.” He looked forward the difference is that we choose to guaranteed full employment our masters; they forget that the during his productive life, and to more freedom we surrender else- an old age free of economic wor- where, the nearer we come to ries. losing the right of choice. Others Dan Hughes, the slave, had sub- say government is a good master; sidized housing and guaranteed they forget that when slavery is medical care. He had incentive, established, masters can change. too; if things had gone on as they We think that for all the secu- were he might have become a rity of slavery, Dan Hughes must straw boss or even a butler up at have preferred freedom with its the big house. And if he planted risks. So do we. So, we believe, what he was told to plant on the does a great majority of the small part of the farm he took American people. To ‘eat and care of, well — try planting wheat sleep and play and take care of a today without being told you can small part of the farm” isn’t plant it. enough for the human soul. Our The security Old Dan had in task today is to see that we do not those days, he couldn't have had drift through complacence into a without slavery. We cannot have bondage we would not knowingly it today without slavery. Guaran- accept. When government promises teed food and housing and medical security, let us look for the chains care, assured full employment and before we accept. oe oo carefree old age, surety against economic depression and prote€c- from The Indianapolis Star, August 18, 1959. ===== PAGE 24 ===== gun an [RBI GOVERNMENT'S- 2X ANDED ROLE nel = L e— | ill is r \ | THE EXPANDED ROLE of govern- scope, to get some indication of its ment has brought about signifi- vast and growing influence, can cant changes in our economic sys- take many approaches, Perhaps tem. Old-style, individual-enter- the simplest is to cite a few sta- prise capitalism has given way to tistics, single out a few programs what Professor Calvin Hoover of that point up the wide range of Duke University describes in his government economic-financial ac- recent book, The Economy, Liberty tivities and responsibilities today. and the State,! as “Welfare Capi- For example, some 25 million talism, Progressive Capitalism, or Americans (veterans, federal simply the Organizational Econ- workers, armed forces, farmers, omy.” social security recipients) — one Picking up the last descriptive adult in every five — get regular phrase, it would seem that organ- checks from the government. ization headquarters are gravitat- Countless others receive occa- ing more and more toward Wash- sional payments. ington — as President Eisenhower At the end of 1958, federal warned at the 1957 Governors’ warehouses were giving out food Conference.? to more than five million “needy The federal government, in persons.” The food got in the ways large and small, pervades warehouses in the first place be- our lives. Measuring its size and cause of federal farm programs E— which, while regimenting the IThe Twentieth Century Fund, N. Y. = farmer with acreage controls and Quotes in “The Progress of Socialism,” keti t h iced page 71, of the June 1959 issue of the Marketing quotas, have price First National City Bank Letter. commodities out of markets and 22 ===== PAGE 25 ===== 1959 : GOVERNMENT'S EXPANDED ROLE 23 piled up mountainous surpluses. One in every six employed Amer- Some two million persons live icans is on a government payroll. in government-subsidized public Since 1900 nongovernment employ- housing. ment has increased about 100 per Taxes at all levels of govern- cent while government employ- ment take more than one-quarter ment — federal, state, and local — of our national production and are has increased about 650 per cent. levied most heavily on work, enter- prise, and capital accumulation. The Great Reaction The federal government directly There is a chorus of pleas these competes with private business by days for an even bigger role for operating thousands of commer- government — more central plan- cial-industrial facilities (a 1956 ning, goal setting, decision mak- tally placed the total at nearly 20,- ing. They are invariably put forth 000 with capital assets of some in the name of “progress.” $12 billion). Last month, for example, a panel In the financial field there are of seven economists, including over 100 federal insuring, lending, Professor John K. Galbraith of and guanteeing agencies covering Harvard, stated: “We reject the agriculture, housing, foreign notion that government governs trade and investment, local gov- best which governs least. The fed- ernment organizations, commerce, eral government is our only in- and industry. It is estimated that strument for guiding the economic by June 1960 existing lending pro- destiny of the country.” grams will reach a total outstand- “Liberals” urge greater spheres ing of $105 billion ($23 billion of government to “beat the Rus- direct loans and $82 billion guar- sians” and “advance social wel- anteed or insured loans.) In June fare.” Criticism is heaped on “re- 1945 the total was $11 billion. actionaries” who are obsessed with Federal aid to states, localities, the “fetish of a balanced budget and individuals, at $147 million in and stable prices” and who harbor 1930, climbed to $7.2 billion by “exaggerated fears about growth 1958. of government.” Government-owned electric util- “Liberalism” is a good word; ities accounted for one kilowatt in ‘reactionary’ is a bad word. Yet 18 generated in this country in the real reactionaries are those 1920; last year public power facil- who urge statism in the name of ities generated one kilowatt in liberalism. The true liberal op- every four. poses encroachment by centralized ===== PAGE 26 ===== 24 THE FREEMAN November power; he respects the individual, vents existence. It does not tyran- his cherished freedoms, his sense nize, but it compresses, enervates, of responsibility. extinguishes, and stupefies a peo- The “neo-liberals,” on the other ple, until each nation is reduced to hand, have little faith in the ca- be nothing better than a flock of pacity of freemen to take care of timid and industrious animals, of themselves, to overcome hard- which the government is the shep- ships, to exercise wise judgments, herd.” Supporters of the superstate as- John Stuart Mill, the English } pire to decide for people what they philosopher and economist, pointed shall have and to keep power by out more than a century ago: making voters beholden to them “The worth of the State, in the | for handouts. This is openly ex- long run, is the worth of the in- I pressed in the cynical observation, dividuals composing it; and... a |: widely attributed to Harry Hop- State which dwarfs its men, in kins: “We will spend and spend, order that they may be more do- and tax and tax, and elect and cile instruments in its hands even elect.” for beneficial purposes — will find It was Alexis de Tocqueville, that with small men no great that discerning French observer, things can be accomplished.” who in the 1830's warned of the v ultimate fate of men who are Retreats from Socialism { tempted by a “benevolent” Welfare A democracy, while preserving ) State: the outward forms, can destroy it- “It provides for their security, self if the majority of the voters foresees and supplies their neces- find themselves bound, out of sel- sities, manages their principal fish interests in benefit programs, concerns, directs their industry, to perpetuate in power a benevo- regulates the descent of property, lent dictatorship. Sooner or later, and subdivides their inheritances however, people revolt when bu- —what remains, but to spare them reaucrats become too greedy for all the care of thinking and all the power and money. trouble of living .. .? As far back as 1949, the Aus- “The will of men is not shat- tralian people turned out of office tered, but softened, bent, and a ruling Labor Party in favor of a guided. Men are seldom forced by Liberal-Country Party which re- it to act, but they are constantly formed taxes to open opportunity restrained from acting. Such a for enterprise. power does not destroy, but it pre- In Canada a Liberal Govern- | ===== PAGE 27 ===== 1959 GOVERNMENT'S EXPANDED ROLE 25 ment launched a similar tax policy mated the number of forms, and beginning in 1952. A year earlier, said good riddance to nearly two- in 1951 in the United Kingdom, thirds of the remaining wartime ! the Labor Government went down regulations. Now we have red to defeat before a Conservative meat — instead of red tape.” i Party pledged to halt nationaliza- These illustrations of retreats h tion, end controls, reform taxes. from socialism show that, while ) As R. A. Butler, Chancellor of the people like to get Christmas pres- Exchequer in the Conservative ents, they are not so keen about Government, put it in 1954: the restraints, controls, and losses ] “In the past three years we of opportunity that go with the 8 have burned our identity cards, fully developed socialist society. A torn up our ration books, halved . From the Monthly Letter of the First National N the number of snoopers, deci- City Bank of New York, August 1959. What They Said: THOSE WHO LOOK to the action of this [federal] government for specific aid to the citizen to relieve embarrassments arising from losses by revulsions in commerce and credit lose sight of the ends for which it was created and the powers with which it is clothed. It was established to give security to us all in our lawful and honorable pursuits, under the lasting safeguard of repub-- lican institutions. It was not intended to confer special favors on individuals or on any classes of them, to create systems of agriculture, manufactures, or trade, or to engage in them either separately or in connection with individual citizens or organized associations. If its operations were to be directed for the benefit . of any one class, equivalent favors must in justice be extended to the rest, and the attempt to bestow such favors with an equal hand, or even to select those who should most deserve them, , would never be successful. MARTIN VAN BUREN, 1837 SHOULD the time ever arrive when the state governments shall look to the Federal Treasury for the means of supporting them- selves and maintaining their systems of education and internal policy, the character of both governments will be greatly de- teriorated. JAMES BUCHANAN, 1859 ===== PAGE 28 ===== LEONARD E. READ PIRACYY REINCARNATED ONCE UPON A TIME there lived a quite to the contrary. These folks pirate by the name of Laffoote. held to the proposition that all in- As pirates come and go, there was dividuals had a moral right to the much to be said in his favor. He fruits of their own labor and, adored his wife and children and thus, they resented the pirate’s he felt a deep compassion for the methods. They went so far as to lame, the halt, and the blind —in- believe that Laffoote should grat- deed, his heart went out to every- ify his generous impulses with his one in distress. What's more, he own, not with their, produce. helped others so much he rarely The victims had an additional had anything left over for himself. thought: Predation as a way of Laffoote, however, had one quirk life did not make social sense. If in his moral make-up: He satisfied all were parasites, who would his deep, charitable instincts for serve as hosts? They reasoned others not with his own produce that if all were producers, there but with the fruits of the labor would be more good done, even to of others; that is, he acquired the poor, than if all were pre- what he gave away not by willing dators. but by unwilling exchange. He and No Pope or priest or monk, no his hoodlums, with guns and prophet or seer, no rabbi or swords, would pounce upon hapless pastor, ever felt cleaner at heart and honest traders and take their than did Laffoote. He saw nothing all. wrong with his way of life. Was True, the “beneficiaries” of not piracy his speciality, his Laffoote’s generosity thought him chosen profession, his means of a great and lovable man. But the getting ahead? victims, the ones from whom he The victims did not share looted, had thoughts about him Laffoote’s self-assessment. They 26 ===== PAGE 29 ===== 1959 PIRACY — REINCARNATED 27 did not think him clean at heart spectable. He could conscript his in the slightest. They insisted that armed forces from the very people no sin was greater than to feather who were now hanging him and one’s own nest at the unwilling even they would think him a bene- expense of others. Each human factor. He would call them his being, they argued, was as much “constabulary” and they would a child of God as any other and call him their “Leader.” The more for one to advance self at an- Peters he would rob to help the other’s expense was to thwart poor Pauls the more honor would God’s will. be heaped upon him. Why hadn’t From these disparate ways of he thought of this before? But, thinking there developed a moral alas, it was too late! schism of the first magnitude. Ah! But was it too late? What Laffoote saw nothing wrong with about reincarnation? He had once his code. The victims thought his heard someone speak of it. If only code not only uneconomic but evil he could come back to earth in and concluded that their society another form, he could put his new must be cleansed of piracy. Being plan into effect. Such was the more numerous than Laffoote and pirate’s last thought before the his gang, they organized, cap- trap door was sprung. tured, and condemned him to hang Laffoote did not return to earth by the neck till dead! in bodily form. But the spirit of Poor Laffoote! There he stood Laffoote did return and fastened on the trap door, noose around his itself in the minds of mankind — neck, in bewildered pride and with Americans as well as others —in a a deep sense of moral rectitude. most effective manner. From the How to get even? Not much farms, from the factories and ex- chance in this earthly life! That ecutive offices, from the pulpits — was near its end. There ought to from rich and poor alike — emer- be a way, thought he, to do good ges the spirit of Laffoote, the without getting hanged for it. pirate. The more his “brilliant” Wasn’t there a way to practice his idea is imitated, the more are code — taking from some and giv- honors, esteem, titles, uniforms, ing to others — that would result and medals conferred on the imita- in acclaim rather than hanging? tors. The spirit of Laffoote rides Then, in his last moments, unbelievably high. Its proper name Laffoote experienced a brilliant, is socialism but which, when prac- intuitive flash: Why not legalize ticed by Russians, we call “com- piracy? That would make it re: munism.” * oo ===== PAGE 30 ===== — EE THE MORAL ANTAGONISM OF Capitalism and Socialism BARBARA BRANDEN CAPITALISM and socialism have, What is capitalism? Economi- traditionally, been considered ex- cally, it is a system in which the clusively as opposing economic- instruments of production are political systems. It is therefore in owned by private individuals who terms of economic and political operate them for their personal tenets that the battle between them profit. Goods and services are ex- has been fought. Certainly each changed by free trade on a free system does embody a mutually market, a market which is regu- exclusive theory of the proper lated, not by bureaucratic edict, function of government and the not by what those who claim to legitimate operation of an econ- represent the majority decide is omy — but if one examines their good for the people, but by the law tenets, one will discover at the of supply and demand — which root of their specific and practical means: by each man’s voluntary doctrines, a more basic and divi- decision as to what products he is sive clash between them. willing to produce, to buy, and to It is in their opposing concepts sell, and at what price, within the of the nature of man and of his context of the market with which proper relationship to other men he deals. — in that which each side holds to The motive power of capitalism, be the good, the right, the moral the propelling force which makes — that the heart of the conflict be- it work, is men’s desire and effort tween capitalism and socialism ex- to use their productive capacity ists. for the purpose of creating This article is reprinted by permission of wealth. The end which capitalism ore aa anion boing offered in Nowy York City Serves is the achievement of profit on the philosophy of Ayn Rand. Barbara —- 3 Branden® is an Associate Lecturer. a private, personal, selfish profit 28 ===== PAGE 31 ===== 1959 THE MORAL ANTAGONISM OF CAPITALISM AND SOCIALISM 29 — by every man from a captain of talism "is one which limits the industry to a shopkeeper to a coal- function of government to the pro- miner, each to the limit of his tection of its citizens from the ability, his effort, his attainment. violation of their rights by force Capitalism is not aimed at what or fraud, and from foreign inva- its opponents call “the service of sion. Just as its economic prin- the public good.” It is concerned ciples are not aimed at ‘the public exclusively with the private good good,” neither are its political of individual citizens, and holds principles; it does not recognize that the good is to be achieved by the validity of the concept; it does those citizens as individuals. It ex- not grant that anyone's good can pects each man to achieve what- be achieved by having some men ever heights he is able, in what- decide what to do with other men’s ever work he has chosen, by his lives, energy and profit. It recog- own intelligence, his own will, his nizes that all good inheres only own virtue and his own work. in individual men, and that there Capitalism expects, and, by its is no moral reason why one man nature, demands, that every man should be forced to accept, as the act in the name of his own ra- goal of his work and his life, the tional self-interest. Just as it does achievement of the good of not expect a consumer to pay more another man. for any product than the lowest price at which that product can be What is socialism? Economi- obtained — just as it does not ex- cally, it is a system in which the pect a worker to accept a lower means of production are owned by wage for his effort than the mar- the State, not by private individ- ket will bear — so it does not ex- uals, and are operated for the pect a factory-owner to sell his profit of the collective, not for the products at a price lower than the private gain of the producers. The public is willing to pay. The twin State, not the free market, decrees motors of capitalism are profit how and by whom goods and serv- and achievement, with one & func- ices are to be produced, how and tion of the other; profit is pro- to whom they are to be distrib- portionate, not to a man’s inten- uted. The State purports to be tions, wishes, needs or desires, but the voice and the expression of the proportionate to that which he in majority of its citizens; it equates fact accomplishes. state-good with public good, and, The political system logically insofar as individual good is re- implied and necessitated by capi- garded as of concern, it holds that ===== PAGE 32 ===== 30 THE FREEMAN November the good of the individual is to be defined the basic antagonism be- achieved by his service to the good tween individualism and collectiv- of the public — which, in practical ism, and stated that their oppos- terms, means: by service to the ing moral concepts are to be State — which, in concrete terms, found in their answer to this means: by service to the partic- single question: Does man have ular group of men in power at the right to exist for his own any given moment. sake? Socialism rests on the premise The individualist answers: Yes. that man, by his nature, is unfit The collectivist answers: No -— for freedom, that he cannot be and asserts that man exists, not trusted independently to pursue by right, but by virtue of a per- and to achieve that which is neces- mission granted him by society, a sary for his life, that he cannot permission contingent upon the be trusted to own and freely to ex- service he renders to society. change that which he produces, Individualism holds that a that, if left free, men will live as human life is an end in itself. Col- wild beasts. Therefore, socialists lectivism holds that man’s life is decree, men must produce at the a means to an end to be desig- order of a higher authority called nated by society. Individualism the public, or society, or the State, holds that man possesses, by his and must permit this higher nature, the rights of life, liberty authority to utilize the products and the pursuit of happiness. Col- of men’s efforts as it sees fit. lectivism holds that man possesses, Under socialism, men are to pro- by his nature, the duty to sacrifice duce not for profit, but “for use” his life, his liberty and his happi- — the use of the public, without ness whenever and wherever the regard for the profit of the men collective may demand it. Collec- who created that which is being tivism regards man as property, used. signed, sealed and delivered up to those who claim to represent Each Life an End in Itself his fellow men; he must exist for What opposing moral premises their sake, in their service, and by are implicit in the doctrines of their command. capitalism and socialism? — of in- No matter how vehemently col- dividualism and collectivism? It lectivists may insist that the in- was Ayn Rand, in her novels ad- dividual does in fact profit under vocating individualism, The Foun- their system, no other premise can tainhead and Atlas Shrugged, who underlie the coercion of the indi- ===== PAGE 33 ===== ~~ 1959 THE MORAL ANTAGONISM OF CAPITALISM AND SOCIALISM 31 vidual by the will of the mass but right, if they are not my chattel, the premise that man does not do I have the right to force them possess the right to exist for his to work for the benefit of others? own sake — the premise that self- And if I do not have this right, do interest and profit are evil. Every I acquire it by virtue of the fact insult and every criticism ever that other men like myself, who hurled at a free economy has been call themselves “the public,” wish based on the assumption that it is to join me in the activity of forc- not moral for men to pursue their ing men to work for ends other profit, and that morality consists than those they have voluntarily of sacrificing their self-interest to chosen? Is it not man’s right to the welfare of others. exist that makes me brand as evil The questions which every man the actions of a hold-up man who who preaches collectivism must coerces and robs? Why is this rea- ask himself are these: Do I have son canceled when the coercion the right to force other men to and robbery are committed, not by work for my benefit? Are their an individual thug, but by the lives mine? If I do not have this State? eo oo “Thou Shalt Not Steal, Except . . . .”’ IT sEeMS that wherever the Welfare State is involved, the moral precept, “Thou shalt not steal,” becomes altered to say: “Thou shalt not steal, except for what thou deemest to be a worthy cause, where thou thinkest that thou canst use the loot for a better purpose than wouldst the victim of the theft.” And the precept about covetousness, under the administration of the Welfare State, seems to become: “Thou shalt not covet, except what thou wouldst have from thy neighbor who owns it.” Both of these alterations of the Decalogue result in complete abrogation of the two moral admonitions — theft and covetous- ness — which deal directly with economic matters. Not even the motto, “In God we trust,” stamped by the government on money taken by force in violation of the Decalogue to pay for the various programs of the Welfare State, can transform this immoral act into a moral one. F. A. HARPER, Morals and the Welfare State ===== PAGE 34 ===== HOW THE Sines FOR YEARS we have been talking about the inflationary wage-price spiral. But Washington (by which is meant both the majority in Congress and officials in the Ad- ministration) talks about it for the most part as if it were some dreadful visitation from without, some uncontrollable act of nature, rather than something brought about by its own policies. Let us see just how those poli- cies, over the last 25 years, have produced the wage-price spiral. First of all, under a series of laws beginning most notably with the Norris-La Guardia Act of 1932, followed by the Wagner Act and by its later modification, the Taft- Hartley Act, we decided that labor troubles developed chiefly because there was not enough unionization and because unions were not strong enough. Therefore, we in effect put the federal government into the union- organizing business. We compelled This article is reprinted by permission from Newsweek, August 31, 1959, Mr. Hazlitt wrote the column during the recent steel strike, but the ideas will apply cqually well to any sub- sequent acts of union coercion. 32 PINS HENRY HAZLITT employers to deal exclusively with the unions thus quasi-officially set up, regardless of how unreason- able the demands of these unions might turn out to be. Though il- legalizing all efforts to deny em- ployment to workers who joined unions, we explicitly legalized ar- rangements to deny employment to workers who did not join unions. The Right To Coerce But worst of all, we gave to the unions and union members a privi- lege not granted to any other as- sociations or individuals — the power of private coercion and in- timidation. By the Norris-La Guardia Act we in effect pre- vented either employers or non- union employees from going to the federal courts for immediate re- lief from irreparable injury. We refuse, contrary to legal practice in every other field, to hold a union liable for the acts of its agents. We tolerate mass picketing, which is intimidating and coercive, pre- venting employers from offering to other workers the jobs abandoned ===== PAGE 35 ===== 1959 HOW THE SPIRAL SPINS 33 by strikers, and preventing other Not Facing the Issue workers from applying for such Soon or late our federal law- jobs. And then we are astonished makers and administrators must and indignant when these special face up to the labor-union-boss dic- privileges, against which we pro- tatorship and the wage-price spiral vide no effective legal protection, that their own laws and actions are “abused.” have created. But they refuse to The inevitable result of these do this when each new crisis laws is that we have built up huge arises. When a nationwide steel unions with the power to bring strike is prolonged they. become basic national industries to a halt panicky. They seek to settle it by overnight. And when they have the only means that seem possible done this, we can think of no way to them — by giving in once more of getting an industry started to union demands, by granting again except by giving in to the still another wage increase and demands of the union leaders who setting off a new upward wage- have called the strike. price spiral. This accounts for the upward Senators demand the President push on money wage-rates. But it appoint a “fact-finding” board to does not account for the inflation- “recommend,” i.e. to impose, in ary spiral. The effect of pushing effect, compulsory arbitration that wage-rates above the level of mar- would compel the employers to ginal labor productivity, taken by grant another increase to employ- itself, would simply be to create ees who (at $3.10 an hour, com- unemployment. But as F. A, Hayek pared with average factory earn- has put it: “Since it has become ings of $2.23 an hour) are already the generally accepted doctrine among the highest paid workers that it is the duty of the monetary in the country. authorities to provide enough Thus one government interven- credit to secure full employment, tion begets a further government . whatever the wage level, and this intervention. Because government duty has in fact been imposed has failed in its primary task — upon the monetary authorities by that of preventing private coer- statute, the power of the unions to cion — senators ask, in effect, for push up money wages cannot but price and wage-fixing; and we are lead to continuous, progressive in- driven toward totalitarian con- flation.” trols. * oo ===== PAGE 36 ===== Ll halle THE TRAINING OF SCIENTISTS AND Nay g DANIEL K. STEWART IN RECENT YEARS there has been tieth centuries, whatever is not much soul-searching among sci- reducible to some physicalistic ence people over the possible moral verification basis is unreal. Re- consequences of their work. The searchers who adhere to a basi- scientist of today is genuinely con- cally materialistic philosophy are cerned over the obligations that he considered “real” scientists; all — as a scientist —has to his so- others are regarded as making ciety, and the effect of his discov- weak-kneed concessions to mysti- eries on his fellows. cism, The term ‘ obligations” neces- Within this frame of reference, sarily implies a reference to some what happens to the scientist moral standard. And, up to now, who feels some sort of obligation moral standards, and their neces- to his society? Any consideration sary implications, have not been of an obligation necessarily im- one of the major concerns of em- plies the existence of some moral pirical scientists, philosophy. But any view which The status of moral values in permits moral propositions is, of the universe has been a central necessity, incompatible with ma- question in the thought of those terialism. who are in the main stream of our Plato makes this distinction un- philosophical tradition from Plato mistakably clear in the dialogue, on down. Moral values are non- ‘The Sophist.”’! The Eleatic physical and thus cannot be sub- Stranger describes the material- ject to any quantitative tests, but ists as “dragging down all things for the typical scientists of the from heaven and from the unseen late nineteenth and early twen- to earth, and they literally grasp Dr. Stewart is an Instructor in the Depart- a : ment of Natural Science, Michigan State Uni- Plato, The Dialogues, tr. by B. Jowett. versity, East Lansing, Michigan, New York: Random House, 1937. Vol. I], Illustration: A. Devaney, Inc.,, N.Y, pp. 263-2h4. 34 ===== PAGE 37 ===== 1959 ON THE TRAINING OF SCIENTISTS 35 in their hands rocks and oaks; of Obligations, and the moral prop- these they lay hold, and obsti- ositions which they necessarily en- nately maintain, that the things tail, are defined as meaningless in only which can be touched or terms of most present-day philoso- handled have being or essence, be- phies of science. It is thought that cause they define being and body these propositions have nothing at as one, and if anyone else says all to do with genuine science. that what is not a body exists They belong instead to the realm they altogether despise him, and of traditional philosophy, or worse will hear of nothing but body.” yet, to religion, and are subject to As opposed to this, the idealists all the alleged mysticisms of these are described as “contending that pursuits. true essence consists of certain in- Thus, it might reasonably be telligible and incorporeal ideas; thought that those scientists who the bodies of the materialists” are accept materialism as the basis taken to be “not essence, but gen- for their philosophy of nature eration and motion.” would not concern themselves with } the sociological implications of The Scientist's Dilemma their activities. In their system The dilemma is quite apparent. man is just a curious sort of an The young scientist either accepts animal. He has little sense of the materialistic philosophy of his morality or beauty or justice or group; or, sensing the inadequacy goodness. Man, in this sense, Is of materialism to fully explain na- simply the product of his environ- ture, he tries to pick up, in a most ment. He is but a minute part of a unscientific way, what informa- vast physical complex, the forces tion he can concerning moral of which interact upon each other philosophy. But, if the philosophi- and him, and he upon them. cal climate-of-opinion in science is Holding this view of man, it such as to embrace materialism to would clearly be absurd to ask the exclusion of any philosophy questions regarding good and evil, which makes reference to spiritual and we would reasonably conclude realities, then what is the prog- that those scientists who accept nosis for those recalcitrant souls materialism as the basis for their of the scientific brotherhood who philosophy of nature could not dare to deviate from the unwrit- logically be concerned with such ten code to the point of even being things as obligations, morality, concerned about a scientist's obli- and free will. gations to his society? But some scientists of this per- ===== PAGE 38 ===== 36 THE FREEMAN November suasion have overstepped the logic that point of view known as “life of their position. Certain issues adjustment” education. Under which started out to be merely magic clichés uttered Lv the pro- simple physical accounts of purely gressive-mindz=d teacher, the stu- biological phenomena, have been dents are we!l indoctrinated with extended to cover social and polit- the slogans of ‘team efforts,” ical situations to which they were “group projects,” or ‘“together- never intended to apply. One such ness.” Indeed, this may very well example is the concept of popula- be the starting point for collec- tion theory as it applies to living tivist economic and political organisms, including man. theory. In any case, the analysis This theory boldly assumes that shows the ambiguity in the posi- organisms live in groups, they do tion of those scientists who re- not live alone. Plants and animals gard themselves as ‘‘tough- live together in colonies, flocks, minded” materialists. Traditional and herds, all of which are mu- values are ostentatiously booted tually dependent upon each other out the front door while the cur- and their environment, in such a rent shibboleths are illicitly im- way as to ultimately produce a ported through a rear window. relatively stable ‘‘ecosystem.” Man, of course, is one of these The Inadequacy of Materialism animals, even though he might be, This leads to a brief considera- as G. G. Simpson concedes, “among tion of the second horn of our di- the higher animals.” lemma. The concern is now for Now, if we consider man as a those young scientists who have biological organism, and only that, arrived at the conclusion that ma- it seems obvious that he does, for terialism is inadequate to fully ex- the most part, live with other peo- plain nature. And it would not be ple. But this biological concept of hard to identify these people. population, as applied to humans, With specific reference to the ex- is notoriously vague and unscien- ample above, these would be the tific in that it fails to answer the John Does who unconsciously feel, questions of how many other peo- or even truly understand, that the ple a person has to live with be- concept of ‘living in a group,” fore he will not be living alone, when taken in a strictly biologi- and how much of the time this has cal sense, is contradictory to the to take place? concept of the distinctiveness of This group theory concept is the individual, his independence, one of the basic assumptions of his individual initiative, his moral ===== PAGE 39 ===== 1959 ON THE TRAINING OF SCIENTISTS 37 self. For John Doe may recognize implication from this fact is that this contradiction to be directly man, the human being, must be tied up with the freedom of any considered in terms of his totality. individual to choose one goal This “totality” we shall call the rather than another. whole man. The point is that man Now this ability to make a is more than just a mechanistic, choice between two distinct alter- physical-chemical machine. He is natives is generally spoken of as more than just a highly complex, “free will.” Free will is identi- integrated glob of protoplasm. fied as that which provides man Man also has a spiritual self. This with a feeling of freedom, of giv- consists of a sense of beauty, of ing him a sense of authorship and goodness, and moral responsi- responsibility, a sense of guilt and bility. And it is this whole man ethics, and a sense of knowing that scientists must take into con- that there are norms and stand- sideration on those occasions when ards to be maintained in every they concern themselves with any human endeavor. This means that obligations they might have to the notion of “free will” is op- their society. posed to the concept of people ex- isting only as a part of some This makes it clear why the group. In the collective, the in- first horn of the dilemma — stated dividual no longer counts; his at the beginning of this paper — mind must fit in with the group ought to be our primary concern. mind; his every thought and ac- The young scientist, more often tion is determined for him in than not, accepts the prevailing terms of what the group thinks materialistic philosophy of his and does. If he deviates from this, group, and therefore regards he is made to feel ashamed, selfish, moral questions as irrelevant to and a misfit. And, if this be the “real” science. With this we would “choice” he has, it is clear that, have little quarrel provided that in practice, it amounts to having this sort of philosophy was ex- no choice at all. plicitly restricted to questions re- A purely materialistic philoso- garding biological phenomena. phy is, by its very nature, meta- But, unfortunately, this has not physically contradictory to, and been the case. We have shown, in hence unable to cope with, ques- one instance of several, how this tions regarding the morality of philosophy has been extended to man, and therefore the obligations cover social and political phenom- of scientists to their society. One ena to which it was never intended ===== PAGE 40 ===== 38 THE FREEMAN November to apply, and cannot, significantly, nated against and to which his be applied. group is metaphysically opposed. The implication is before us, It goes without saying that these then, that the nature of life, in all are terrific hurdles. But the fact of its various forms and aspects, still remains that knowledge of cannot be adequately explained moral philosophy is a necessary solely in terms of chemistry and prerequisite to any significant physics. There is, in fact, a cer- synthesis of purely biological sub- tain vital, directive aspect to all stance with those things that this forms of living matter — a certain substance is asserted as having, organizational wholeness. namely, obligations. In humans this psychical or Materialism, alone, has proven spiritual aspect of living sub- to be inadequate — because of its stance reaches its highest fruition very nature — to handle such ques- in what is called mind and per- tions as morality. But yet, scien- sonality. tists are coming more and more to Our suggestion is that, before concern themselves with moral science is able to consider such consequences of their behavior. things as obligations and other The conclusion of our dilemma moral problems, a theory of re- would seem to be, therefore, for ality is needed that will explain scientists either to restrict their both this nonmaterialistic aspect explanations to purely physical- of all living matter as well as istic phenomena, or to openly and those features explicable by chem- frankly, and even perhaps as a istry and physics. And it seems part of their academic training, almost anticlimactic to point out make room for some preparation that before such a synthesis of in traditional philosophy. For it the moral and material could be is among the traditional philoso- made, it would be necessary to phers, such as Plato, Maimonides, know something about moral phi- Aquinas, and Spinoza, that knowl- losophy. For it may very well be edge concerning morality will most that, in the final analysis, moral likely be learned. And the only philosophy and science are mu- suggestion that one might make tually implicative endeavors. is that the prospective scientist What this means, in terms of approach the study of these men actual practice, is that the young with the same intensity for the scientist must conscientiously and truth that he exhibits in his anal- critically study that very philoso- ysis of the facts of empirical sci- phy which he has been indoctri- ence. © oo ===== PAGE 41 ===== The UNITED NATIONS or—-THE SUBSTANCE OF THINGS HOPED FOR It was a cold November day At story-telling time. Old Kaspar closed the windows tight And poured a rum-and-lime, While Peterkin and Wilhelmine Warmed up the television screen. They saw a straggling line of men Who toiled with bleeding hands To build a lofty, solid wall Across the shifting sands; While men in red from foot to crown Worked just as hard to tear it down. And sweeping in against the wall, Like waves upon the shore, Came lines of howling men in red, And more and more and more; Until the wall began to rock And fall apart beneath the shock. “Now tell us what it’s all about!” Cried little Peterkin. “It’s the United Nations, dear,” Said Kaspar with a grin; “They're building walls against the Reds, So we'll sleep safely in our beds.” “Then why do they allow the Reds To work upon the wall?” “To chase them off,” Old Kaspar said, “Would never do at all; For then they never would agree To help us build Security!” H. P. B. JENKINS Economist at Fayetteville, Arkansas 39 ===== PAGE 42 ===== ond Antwerp in the sixteenth a. 7 = =~ century — “the queen city | = : of all Christendom” (From a painting in the Steen Museum, Antwerp) —The Dutch .. . © Example Li: S WILLIAM H. PETERSON GROWTH. Economic development. exports nor imports; nor is it, in The planned expansion of the the usual sense of the word, a world’s poorer economies outside bank. Newest, still in the plan- the communist orbit. These are ning stage, is the International the watchwords of today’s seven Development Association, which major international lending agen- will make loans to poor nations cies with offices in Washington, that cannot qualify for credit at D. C., in which the United States the World Bank nor the other Government ‘is either the largest agencies under existing relatively or the only shareholder. (Oldest easy regulations.) is the Export-Import Bank, Such fervor to dispense money founded in 1934, which neither abroad, to fight communism ee through upbuilding “under-devel- Dr. Peterson is Associate Professor of Eco- oped” nations, raises questions: nomics at New York University and a weekly contributor to the Wall Streot Journal. Are government-to-government 40 ===== PAGE 43 ===== At a ese i” - . hE my provegs loans — often gifts in disguise —~ centuries? And what of the Nether- with their usual accompaniments lands in the sixteenth and seven- of exchange control, inflationary teenth centuries? schemes, tariff protection, full em- For is there not a tested second ployment practices, tax gimmicks, road to national economic growth, Castro-like “agrarian reform,” namely, laissez faire? and so on, the best road to na- Before considering the Dutch tional economic growth? If so, example, it might be well to note how then did the United States that growth, in underdeveloped and Britain flower in the nine- and developed economies, has as- teenth century as the two richest sumed a sloganeering function, As nations in all the world? What of Lawrence Fertig, Scripps-Howard Japan which leaped from feudal- financial and economic columnist, ism to industrialism in the late observed recently: nineteenth and early twentieth “The inflationists’ new device is ===== PAGE 44 ===== 42 THE FREEMAN November to wave the banner of ‘growth.’ Andrew Dickson White's classic — Of course, they say, we are against Fiat Money Inflation in France®) inflation. Of course, they assert, it crops up ever anew. The an- we are not in favor of zooming tiquity of the thesis can be seen prices. But after all, they quickly from the following quotation by ask, isn't growth the really im- John Law, who became Controller portant thing — shouldn't we General of France and initiated achieve growth (with government the Mississippi Bubble inflation in the driver’s seat as planner and from 1716 to 1720: spender) even. at the expense of “Domestick Trade depends on some inflation?! the Money. A Greater Quantity employes more People than a les- A False Correlation ser Quantity. A limited Sum can Fertig’s contention that growth- only set a number of People to and-inflation is a false correlation Work proportion’d to it, and ’tis is borne out in a recent study by with little success Laws are made, economists of the New York Fed- for Employing the Poor or Idle eral Reserve Bank covering econ- in Countries where money is omic development in 16 countries scarce.”’? from 1950 to 1957. These econo- So, when John Law got eco- mists found that in countries in nomic command in France, he im- which prices advanced only mod- plemented his inflationary scheme, erately or not at all, annual rates inadvertently courting and finally of growth were generally close to embracing economic ruin for both 6 per cent. In countries where France and himself. there were heavy inflationary pressures during this period — The Example Was Ignored and where, by and large, U.S. for- The Dutch example was in full eign aid was much greater — rates display for Law and his em- of growth varied widely, ranging ployer, Louis XV. But, like so from less than one to more than 7 many lessons of history, the ex- and averaging around 4 per cent. ample was ignored. No rich uncles So, the thesis that growth de- showered the Dutch of the six- pends on inflation demands criti- — cal examination. It is an old thesis, 2A ncw edition with an introduction by and though exploded time and Henry Hazlitt is available through the . . Foundation for Economic Education, Irv. again in the past (see, e.g, ington-on-Hudson, N.Y. 'See the October 1959 Freeman, pages 3Law, John. Money and Trade Con- 58-60, sidered, Edinburgh, 1705. ===== PAGE 45 ===== 1959 GROWTH — THE DUTCH EXAMPLE 43 teenth and seventeenth centuries was complete dedication to one’s with aid. No Point Four teams of calling. Whatever a man’s pursuit, technical experts surveyed their it was his Christian duty to give lowlands for likely sites for fac- it his fullest effort. The tradesman tories, warehouses, harbors, and in his own shop “could most con- other projects. No Economic and fidently expect the presence and Social Council issued reports de- blessing of God.” Thus pursuit of crying the Have-nations for fail- profit, in free and honorable trade, ure to share their economic gains was no longer tainted; quite the with their less fortunate neigh- contrary, it was Christian virtue. bors. Sloth was the sin. How did the Dutch miracle hap- pen? And to many it was a mira- Trade Was the Key cle. The Dutch were not blessed But perhaps the best answer to with natural resources. If any- the Dutch miracle was trade — thing, nature had cheated them trade, and its corollaries of free- with seas which had periodically dom, property, and economic gain flooded the lowlands, thus requir- (and without the progressive in- ing expensive dikes. A contem- come tax!) In the sixteenth cen- porary observer, Daniel Defoe, tury, Antwerp — then in the noted that the seventeenth century Netherlands — was the queen city Dutch had “neither Corn, Hemp, of all Christendom; in the seven- Tar, Timber, Lead, Iron, Arms, teenth, it was Amsterdam. Each Ammunition, woolen Manufacture, week some two thousand freight or Fish of their own Growth.” wagons and ten thousand peasant For these commodities, the Dutch carts passed through Antwerp’s took to the sea—and hence became gates with the manufactures and known, initially, as the Sea-Beg- foodstuffs of the Continent. As gars. many as four hundred ships came To Max Weber and others, re- in on the same tide, spreading on ligion was the answer to the Antwerp’s docks silks and spices Dutch miracle. The Protestant Re- from the East, wool from Eng- formation, supposedly, opened the land, pitch from Sweden, tallow floodgates of business prosperity. from Norway, furs from Russia, The Calvinists even had their own and fish from the Seven Seas. In- regime in Amsterdam for eleven surance became big business in years (1611-22). The keynote of sixteenth century Antwerp — ship Calvinism, particularly as it was and cargo insurance and even life developed by the Dutch Puritans, insurance. The Antwerp Bourse, ===== PAGE 46 ===== 44 THE FREEMAN November founded in 1531, was the world’s behavior can be seen in the ob- first stock exchange. servations of Sir William Temple, Little wonder, then, Defoe said English ambassador to The Hague of the Netherlands population: in 1668: “The Dutch must be understood “The [Dutch] merchants and to be as they really are, the tradesmen are of mighty industry. Carryers of the World, the Middle Never has any country traded so Persons in Trade, the Factors and much and consumed so little. They Brokers of Europe: That, as is buy infinitely, but 'tis to sell again. said above, they buy to sell again, They are the great masters of take in to send out; and the Indian spices and Persian silks, greatest Part of their vast Com- but wear plain woolen and feed merce consists in being Supply’d upon their own fish and roots. from all Parts of the World, that They sell the finest of their cloth they may supply all the World to France and buy coarse out of again.” England for their own wear. They . send abroad the best of their own Thrift Also a Factor butter and buy the cheapest out But trade is only part of the of Ireland for their own use. They story, apparently. The Dutch, as furnish infinite luxury which they may be gathered from the pres- never practice and traffic in pleas- ence of the Antwerp and Amster- ures which they never taste.” dam Exchanges, were investors as Sir William shrewdly pinned well as traders. Frugality and down the Dutch secret. “Their steady trade furnished the sav- common riches,” he wrote, “lie in ings. Savings, in turn, furnished every man’s spending less than he the capital for their mercantile has coming in.” Self-indulgence searchings and trade centers and was out, for “the general intention outposts the world over. Above all, every man has is upon his busi- the soundness of the Dutch cur- ness. .. . All appetites and pas- rency unit, the florin, won world sions seem to run lower and cooler renown and respect as is seen in here than in other countries, the volume of Dutch banking and avarice excepted, Their tempers insurance business. The florin of are not airy enough for joy, nor that era knew virtually no depre- warm enough for love.” ciation—no “planned” inflation. This observation was shared by And this was a big reason it at- the philosopher Descartes who tracted so much business. lived in Holland from 1629 to Aspects of the Dutch business 1640: “Every man thinks only of ===== PAGE 47 ===== 1959 GROWTH — THE DUTCH EXAMPLE 45 himself and his business interests To be sure, Dutch business suc- and whoever has nothing to do cess in the sixteenth and seven- with business and trade. ..is com- teenth centuries was not always pletely disregarded.” onward and upward. The Tulip Craze of the early seventeenth century (in 1609, one prize bulb Such comments, while having was sold for 13,000 florins) broke some measure of truth, are to a in 1638, bringing financial hard- degree obviated by the burst of ship to thousands. And in the end, great Dutch art. Art requires beginning with the Anglo-Dutch patrons, an economic surplus. And wars of 1652-1674, business some- a measure of Dutch prosperity how became inextricably entwined can be seen in the parade of the with empire. The Netherlands had Dutch masters: Brueghel, Ver- become, if temporarily, a “world meer, Hals, Steen, Rubens, Rem- power.” And the era of the bour- brandt. If such paintings were for geois man of the lowlands, who the rich, the middle class home had reached Java in the East and had its appointments. A contem- the Hudson River in the West, was porary historian noted that “the largely no more. plainest and most modest burgher At any rate, the secret of the had a house full of pictures, and Dutch example of economic de- there was nothing unusual about velopment is plain — it was trade, finding from one to two hundred not inflation; growth was natural, paintings in a modest home.” not manipulated. oo 0 Art Appreciation Voluntary Action VOLUNTARY ACTION is the best possible weapon with which to fight statism and prevent the submergence of the individual. It is our nation’s great tool in showing the rest of the world the way to solve problems without throwing ourselves slavishly into the arms of government. Few people elsewhere in the world have any idea how far and how fruitfully voluntary organiza- tion has gone in the United States. Our entire system is radiated and irrigated by a vast network of private voluntary organiza- tion and communication. Vital ideas and concepts flow back and forth in these channels. ERWIN D., CANHAM, Freedom Begins in the Market Place ===== PAGE 48 ===== ~e TD India’s Economic Road An Indian intellectual asks whether U.S. aid l \ A \ pl ) ! OXFORD, ENGLAND United States opinion about India results almost entirely from actions by the plan- ners and collectivists who direct that country’s series of economic five year plans. As a consequence, some influen- tial members of Congress and publicists have committed them- selves to the proposition that Uncle Sam should countersign any blank check for foreign aid which Prime Minister Nehru may pre- sent. Insofar as there is opposition to this “back up India at any cost” psychology, it has been mainly rooted in two considerations: dis- taste for India’s strident neutral- ism, to which a sometime repre- sentative in the United Nations, Mr. Krishna Menon, has often given a strong anti-Western twist; and consideration for the heavily burdened American tax- payer. What may be the more im- portant question, whether India is 46 can ever be/effective in a planned economy WILLIAM HENRY CHAMBERLIN on the right economic road, whether there can be reasonable confidence that American and other foreign aid will be effec- tively used, has seldom, if ever, been raised. But it was raised very emphat- ically, and by an Indian of proved competence as an economist and financial expert, Professor B. R. Shenoy, at the meeting of the Mont Pelerin Society in Oxford. The Mont Pelerin Society is a group of economists and political scientists, committed to the belief that economic freedom is an inte- gral part of political and personal freedom and that economic free- dom means maintenance of the free market, rejection of state in- tervention in economic matters, and reliance on individual initia- tive as the principal moving force in economic life. Its membership is overwhelmingly West European and North American, with a small fringe of Latin American members. ===== PAGE 49 ===== 1959 INDIA’S ECONOMIC ROAD 47 A Revelation to the real savings of the country. But by general agreement Pro- The result has been an inflation- fessor Shenoy’s speech was the ary rise in the price level, allevi- highlight of the Oxford meeting, ated but not cured by foreign aid if only because it was a revela- and by reducing the gold and for- tion, even to an audience consider- eign exchange backing of the cur- ably above average in familiarity rency to a dangerously low level, with world political and economic with a prospect of complete ex- conditions. Professor Shenoy has haustion if the present course is served as an Indian representative followed for another year. with the World Bank and the News reports of firing on hun- Monetary Fund, is director of the gry mobs in Calcutta lent topical school of social sciences in Gujerat significance to Professor Shenoy’s University at Ahmedabad, and is criticism of a series of state inter- a member, an increasingly dissent- ventionist measures in agricul- ing member, of the panel of econo- ture, interference with interest mists attached to the Planning rates, land transfers, prices and Commission of the government of marketing of food grains, pres- India. sure for collective farming. The So Professor Shenoy’s analysis effect of these interventions, how- of the results of India’s planned ever well meant, has been to affect ‘economy was an inside job of a adversely the amount of credit man with thorough knowledge of available in agriculture, to deter the subject and it was devastating larger landowners from improv- in its impact. India is now in the ing their land, and to cause with- fourth year of its second Five holding of food grains from the Year Plan. The main counts in market. Shenoy’s indictment may be sum- marized as follows. Gold Smuggling Agriculture, basic source of A rigorous system of exchange livelihood for the overwhelming and import controls has led to majority of the people, has been equally disastrous consequences, ruthlessly sacrificed to the build- slowing down industrial output, ing of costly industrial white ele- leading to a widening gap between phants, including several steel the internal and external prices of plants, the need for which cannot import goods and gold, promoting be proved. Investment in these gold smuggling. The state enter- “white elephants” has been pushed prises which are heavily favored at a rate quite out of proportion against private firms in new in- ===== PAGE 50 ===== 48 THE FREEMAN } November vestment generally run at a loss or idea of the Soviet than of the In- at rates of profit considerably dian economy. lower than private firms. Professor Shenoy is considering the publication of a book in Amer- Professor Shenoy sees two al- ica. Certainly his views should be ternatives for India’s economy: made widely available in the all-out planning along communist United States —not least to the lines or the adoption of policies members of those congressional consistent with a free market committees which deal with for- economy. He received a hearty eign aid appropriations. round of applause when he de- His speech, with its hard-hit- clared: “What we need from the ting facts and figures, conveyed West is not dollar aid. It is the the impression that government- philosophy of the Mont Pelerin to-government foreign aid creates Society.” for the givers the awkward Even more surprising, perhaps, dilemma of underwriting the than Professor Shenoy’s exposure shopping list of foreign bureau- of the consequences of high pow- crats who may or may not know ered planning (which could be what they are doing, or of being paralleled in the experience of denounced as imperialist Shylocks Turkey and other underdeveloped if there is any attempt to criticize countries which have tried to do or to prune the extravagantly too much too fast) is the fact that planned economy ventures. ¢ ¢ eo they are so little known in the To The Wall § , West. Perhaps we have a better 199. treet Journal, September 18, IDEAS ®K 1006897 | Productive Investment To DOUBLE the standard of living in a quarter-century, with all that that means in the final abolition of want and squalor, is not a fantasy. It is a practical possibility — but only with the aid of a massive, unobstructed, and enterprising investment of capital, not in the places where it will “do most social good,” but in the places where it will be most productive. The Economist (London), October 16, 1064 ===== PAGE 51 ===== SALE Epitome of the Free Market VOLLIE TRIPP I HAVE just had a thrilling experi- the good natured give and take of ence — watching an old-fashioned the American business tradition. auction. What is there so exciting And the auction is far from a about following a loquacious dying institution. In a day when auctioneer about a hot dusty many of the customs and tokens Kansas farmyard, while stolid of the free market are under farmers bid for cultivators, plows, bitter attack, it is good to know laying hens, and feather mat- this one neutral meeting place for tresses? buyer and seller remains inviolate. Well, for one thing, it’s always Shall we review briefly the interesting to watch an expert; mechanics of the Midwest auc- and Walter Hand, son of a famous tion? An older couple, no longer auctioneer, knows his business. able to farm, are selling out, mov- But even more important, the auc- ing to Wichita. In the course of tion, as developed and carried on nearly 40 years, they have ac- in Midwest farm areas, has be- cumulated, besides the varied and come a symbol of the free market, complicated items required in free enterprise system. It ex- farming, a large two-story house presses the robust dynamic spirit, full of furniture, oddments, and Mr. Tripp, retired from the building business, unrelated items — thousands of now devotes full time to travel, writing, and them. Some are valuable, and will the promotion of free enterprise. : . Illustration: A Devaney, Inc., N. Y. fetch a fair price. Others are of 49 ===== PAGE 52 ===== 50 THE FREEMAN November little account. But, whether they clude a sale. And, the auctioneer bring much or little they're going must be fair to all. The man who under the hammer this sultry has things to sell, as well as those Saturday afternoon in late Au- who come to buy, must have com- gust. plete confidence in his integrity. Several factors are necessary for a successful auction. A good The Preliminaries crowd is essential. Both the auc- The crowd begins to assemble tioneer and the owners will try to long before the hour set for the insure a good turnout, by adver- sale. Farmers want to inspect the tising in the two local papers, by machinery, the livestock, the fur- radio spot announcements, by niture, before they make their handbills distributed in feed stores bids. and other places where farmers The men come in their work may see them. Others are notified clothing. At least a few of them by telephone, while the farm are worth from $50,000 to $200,- “grapevine” further spreads the 000. But wealthy or not, all have news. come to the sale to improve their The weather is important, and fortunes in some way. They come Kansas weather is unpredictable. in late Buicks, Pontiacs, some A bad storm not only will discour- pulling trailers. This is good, for age people from coming, but may we know they mean to buy, if ruin furniture, beds, rugs, and possible. They come in battered other items piled in the yard. But pickups, in trucks. But you can’t Kansans are used to risks, and tell a thing about a Kansas farm- cheerfully take one more. er’s finances by the car he drives, The auctioneer, the man who or by the clothes he wears. kids and cajoles the crowds, keeps The ladies of the Riverside them chuckling and in a buying Home Demonstration Unit arrive mood, is the heart and soul of the with cases of pop and sacks of auction sale. For auctioneering is crushed ice. They set up their bar a true art. Not many have the in the garage, serving hot coffee, ready wit, the leather lungs, the frankfurters and buns, and home- varied and practical knowledge of made pies by the slice. The crowd merchandise to do it successfully. will clean them out, and provide a The work is physically and men- neat profit for their Unit. tally exhausting, calling for tre- Now, the auctioneer and his two mendous concentration, an intui- clerks have arrived, and the sale tive knowledge of when to con- will begin —a demonstration of ===== PAGE 53 ===== 1959 THE AUCTION SALE 51 the free market, in its most basic, free to compete for such bargains. most elemental form. Some items may not bring as Auctioneer Hand mounts afarm much as the seller hopes, but wagon piled with unclassifiable - others will bring even more. He farm items. He makes a brief and pre-accepts the price offered, that friendly talk, seizes an ancient is, the best price, and has faith. mattock, as if it were some rare that it will be the right price, in and interesting object. relation to the conditions. The “Well, whatdya know? Just the conditions are those of today, on thing for those weeds too big and a hot dusty Kansas farm in late tough for a hoe! What am I bid? August. Who'll give a dollar? Who'll give Yesterday, or tomorrow, or next a half?” The sale is on. month some item, polished and In a few moments the tool sells, packaged brightly and offered to and in rapid succession other the right person in New York or items, a big sledge hammer, a California or Chicago, might felling saw, a wire stretcher, rolls bring much more. But such selling of wire, boxes of assorted nails, costs money, and our seller is in screws, bolts, washers. no position to search out that right person as his buyer. The The Price Is Right quick, final action of an’ auction And the price, whatever it is, is sale compensates in part for the exactly right. It is right because lower prices he may have to take this sale represents the perfect for his things. functioning of the free market, As for the buyer, he knows bet- without interference from meddle- ter than any other person — cer- some government agents bent on tainly better than any agent of “protecting” either those who government — how much he can want to sell, or those who hope to afford to pay for a tractor, or disc, buy, to the annoyance of both. a dozen sheep or chickens. He The seller recognizes the risks makes his bid, based on what the inherent in all trade, and assumes merchandise is worth to him, now, those risks. It is conceivable that and to him alone. There is no a nearly new tractor might go to pressure to buy other than his someone for a dollar bill. But the own self-interest as it operates in seller knows from past experience this free and open market place. that such a disastrous sale is There is a lot of merchandise quite improbable, so long as the to sell. Neighbors ask permission profit motive exists, and men are to bring things to be auctioned ===== PAGE 54 ===== 52 THE FREEMAN November off. One man sends two loads of doesn’t knock his wares. But furniture. Another a small garden neither does he make extravagant tractor, another a horse. And one and unsupported claims. neighbor has a big old tractor to Among the diverse items of sell, a truck or two. property are ten bushels of new “Now, we’ll sell this bed, corn. “Someone give me a buck a springs, mattress, and all. Boys, bushel. If we had it in the bottle, if you once sleep in a bed, you'll it'd be worth twice as much.” never sleep on the floor again,” Hand lets the corn go at 95 cents. sings out Hand. Everyone chuck- Now a saddle horse is brought les. Soon he gets a bid, not a very out of the barn. “Better take the large bid. But, big or small, it is saddle off, Charlie, so we can see the proper one, all things con- him all over.” Charlie does, as he sidered. In unbelievably short cites statistics about his horse, time, the furniture and odds and age, disposition, and so on. And ends are sold and the auctioneer we know Charlie is telling the moves out to the barnyard, where truth, for the eyes of his friends rows of farm machinery are neatly and neighbors are upon him. displayed. At this sale, there was not an He gives a tractor a resounding instance of knocking of merchan- whack with his cane. “Ernie, tell dise. Much of it was junk, and us about your tractor.” At such brought a junk price. But auction affairs, the owner of machinery, etiquette seems to forbid and dis- livestock, and the like is expected courage any belittling tactics. If to tell the truth — and does. To a battered chair has no appeal to claim falsely that the tractor has a bidder, he expresses his views had a new clutch, a new transmis- by simple silence. Chances are the sion, battery, or whatever would chair was worth something to subject him to a prompt, vigor- someone. Every transaction was ous, and wrathful accounting. handled with the same quiet, pro- Hand soon gets spirited bidding fessional dignity. for the tractor and tries hard to Never had we seen a better sell it for $500. After five minutes mannered crowd. They were ‘“‘capi- he sees this is too much, lets it go talists’”” bent on gain, each man for $465 — a fair and proper price. for himself in a sense, but faith- His job is to sell things at the ful to the rules of the game. best figure the free and uncoerced The sale was over. Walter Hand, market will permit. He works on exhausted, went for a cool pop at a commission basis. Naturally, he the ladies’ bar. Happy people were ===== PAGE 55 ===== 1959 THE AUCTION SALE 53 gathering up their bargain treas- sales. His two clerks received an- ures, exchanging bits of farm other 2 per cent of the gross. The news, guying and kidding each cost of advertising, including other for their bizarre purchases. radio spots and handbills, prob- If there was any chagrin, any dis- ably did not exceed 1% per cent of appointment, it was not revealed. the total — roughly 5% per cent in The owners were satisfied, feeling all. By no other method can such that their property had received a immensely diverse and “perverse” fair “trial” in the court of public merchandise be sold so quickly and values. Here buyer and seller met cheaply. freely and of their own accord, Yes, I saw an auction sale, and matched wits in good-natured a very good one —a striking and banter, compromised, and finally stirring manifestation of the free reached a price acceptable to both. market, free enterprise system op- It may be of interest that sell- erating vigorously in an economy ing costs, which must be borne by that wobbles precariously on the both customer and supplier in all brink of socialism. So long as this transactions, are amazingly low peculiarly American institution — in these auction sales. Auctioneer the auction sale — remains with us, Hand received 2 per cent of gross freedom’s cause is far from lost. Everybody Wins in Free Enterprise NoTE that a private concern in a system of free enterprise is an entity of such characteristics that all people who deal with it, material suppliers, equipment dealers, money lenders, workmen, and customers, contribute what they value less and receive what they value more. There is a net gain for each person. Also, where there are several competing enterprises, each person is free to deal with the organization that returns the most for what he contributes. Thus there is a natural selection of those firms who are capable of operating so that each person, whether he be a material supplier, equipment dealer, a workman, a banker, pro- fessional man, or customer, receives the most for his contribu- tions. Any firm that cannot compete under these conditions fails. H. G. THUESEN ===== PAGE 56 ===== wo THE ECONBICS OF WEI q ORIEN JOHNSON KING DAVID KING DAVID was one of the most with young, suffering no mis- popular and powerful kings of an- chance or failure in bearing; may cient Israel. During his reign of there be no cry of distress in our forty years, he brought unity to a streets! Happy the people to whom divided nation and established such blessings fall! Happy the Jerusalem as the mightiest capital people whose God is the Lord!” of the ancient world. He was a In spite of the riches he accumu- soldier king who made his coffers lated, we see a healthy lack of the rich by conquest as was the custom materialistic philosophy that de- of oriental potentates of that day. lights in things that money can Yet, we have a hint in his 144th buy. Psalm 62:10 gives this ad- Psalm that he disliked the ways vice: “If riches increase, set not of battle and longed for the sound your heart on them.” economy of a healthy agricultural But it is in Psalm 128:2 that we prosperity. “Rescue me from the discover a rare gem. I call it a cruel sword, and deliver me from ‘gem’ because, like so many truths the hand of aliens, whose mouth in the Bible, you have to pick them speaks lies, and whose right hand up, polish them, and give them a is a right hand of falsehood. May proper setting before they become our sons in their youth be like valuable to you. plants full grown, our daughters Here is the quotation: ‘You like corner pillars cut for the struc- shall eat the fruit of the labor of ture of a palace; may our garners your hands; you shall be happy, be full, providing all manner of and it shall be well with you.” store; may our sheep bring forth Shall we begin the polishing thousands and ten thousands in process? our fields; may our cattle be heavy To labor with “your hands” is a figure of speech, for we know that Mr. Johnson is editor of Young Life, o maga- it is possible to work with our feet, rine for high-school and college-age youth, pub- os . lished in Colorado Springs, Colorado. our tongues, our brains, or with 54 ===== PAGE 57 ===== 1959 THE ECONOMICS OF KING DAVID 55 other parts of our body. But fruit of labor of the artist; or “hands” are personal things. The instruction, the fruit of labor of words show that it is our own the teacher; or administration, the labor that is intended and not an- fruit of those with organizational other’s. and leadership ability. These fruits “Labor” is work — accomplish- could be listed ad infinitum, a tre- ment as a result of energy ex- mendous storehouse or granary to pended. This must mean construc- hold the many fruits of labor of tive, creative, or helpful work. It mankind —a lovely facet of our is unthinkable that the Bible would jewel. advocate work that is detrimental The word “eat” is the next facet to one’s fellow man. Therefore, to tackle. any work that one is able to do It is necessary for me to eat in that does not injure society is ac- order to live. The plan in the quo- ceptable. We realize that it is pos- tation unfolds. ...work.... reap sible to accumulate energy in the fruit... .eat.... live. It is a form of capital or tools that enable workable circle that perpetuates one to work more effectively than itself. It is life itself in its barest he could otherwise. But it is still outline. If I don’t work, I will not the labor of our “hands” in that reap, I will not eat, and soon I will it took creative energy on our part not live. On the other hand, I may to administer it or to put it to use work a lot, reap a lot, eat a lot, and after it was stored up. The gem is have some left over to give away, beginning to shine. and some to sell or to store up in The next facet we work on is order that more work may be done. that word “fruit.” The fruit of our It is this possibility of putting labor is the net result of the labor more energy to work to produce of our hands. If I am a farmer, the more fruit that makes an efficient fruit may be literal fruit that is system of economics possible. good to eat. But what difference There are some who cannot work if I eat it or trade it for another because of sickness, either mental kind of fruit? Or perhaps I might or physical. Their fruit will not sell it and buy another kind of sustain them. Therefore, it will fruit from my neighbor, a kind be the privilege of those who can that I might not have the ability to and do produce more than they grow and yet a kind that I need need to put another Bible precept and want very much. into practice: “Happy is he who is These other fruits that I might kind to the poor,” (Proverbs want could be pieces of art, the 14:21) and also, ‘It is more ===== PAGE 58 ===== 56 THE FREEMAN November blessed to give than to receive.” joy the result... a happy life. (Acts 20:35) There is no law in- A happy life, then, will be a volved here — no law voted in by giving life. This meets the needs men, that is. But shall we call it a of my unfortunate neighbor and higher principle? It is the prin- makes my own life overflow with ciple which says, “Do this, if you the warm kind of joy that is the wish, and you will receive the re- product of such giving. Will you ward that goes with it.” This is pardon me if I cannot become en- much stronger than man-made thusiastic over socialistic pro- laws which say, “Do this or else.” grams that involve compulsory Now look at our shining jewel. “giving” in the form of high taxes It is a valuable one because it to pressure groups that never fully teaches valuable lessons in eco- meet the wants of those who cry nomics, and they are principles, by for help? Thank you, but I have the way, which have stood the test found a better plan. of time. First of all, it utterly outshines This plan, which I learn from the socialistic imitation which King David, and believe to be says, “The state shall take the God’s plan, is vibrant with the fruit of your labor and administer heart-warming values of the good it equally to all men.” It outshines life He is trying to teach. Of it because of one important ele- course, I have to fight greed and ment. It is the element of happi- selfishness, but that puts iron in ness which is missing in all social- the soul and makes life worth the istic paste imitations. In every one living when we taste a bit of vic- of the verses cited in this study, tory now and then. May I look for happiness is the result. And I am the injured traveler along life's not referring to the emotion that road. May I stop, bind up his comes from having your physical wounds, care for his needs, and needs met. This is satisfaction for pay the bill out of the surplus I the moment, but happiness is have been able to accumulate as deeper and more valuable. It comes the result of the labor of my own as a result of freedom. Here’s how hands. Then only will 1 feel the it works. If I am free to work as glow of satisfaction that results much as I please, to reap as much from learning God’s lessons in as I please, to dispense with my economics which form for me a fruit as I please, to enjoy the fruit pattern of life that gives me an of my own labors, to give to my incentive to labor that much the neighbor in want, then I will en- harder. ¢ oo ===== PAGE 59 ===== A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN Wo | t | A AW) NING ECT i IN TWO of the pieces collected in gives a firm “no.” It is influential this latest FREEMAN anthology, people who must be reached —i.e., Essays on Liberty, Volume VI people who have depth of under- (Foundation for Economic Edu- standing, strength of conviction, cation, 448 pp., clothbound $3.00, and the power of attractive expo- paperbound $2.00), Leonard E. sition. Such people, as Mr. Read Read deals with some of the prev- well knows, are not to be converted alent criticisms of the work being by easy blandishments or by the done by FEE in general and THE bulldozing tactics of the sloganeer. FREEMAN in particular. To those They respond best to the attrac- who contend that the state of the tion of minds that work to pro- nation cannot wait on leisurely mote a spirit of inquiry. In other processes of education, and that words, the libertarian who is vis- political action is needed right ibly working at his task of per- now, Mr. Read makes the pertinent fecting his own understanding of observation that politicians are basic principles makes the best usually nothing more than the “reformer” of others. And he does echoes of their supporting publics. his “reforming,” not by shouting If these publics are prevailingly or buttonholing or trying to sneak interventionist in their thoughts things over, but by the quiet force and emotions, then any political of his own example. action they encourage is bound to This, as Mr. Read notes, is not be deleterious. being “practical” as the modern The job, then, is to change the world tends to interpret ‘practi- intellectual climate so that politi- cality.” To be “practical” in the cal “leadership” will act on liber- contemporary intellectual climate tarian clues. Does this mean that is to evince a willingness to meet whole “masses” must be converted socialists half-way. Such “practi- at once? To this question Mr. Read cality,” approaching collectivism 57 ===== PAGE 60 ===== 58 THE FREEMAN November as a limit, must end by reducing They have usually been willing to the amount of freedom in society settle for the argument that some to a mere chemical trace as more boredom in work is worth-while and more ‘compromises’ are because of the productivity which reached. “Practicality,” so accept- repetitive processes unleash. This ed, is a Trojan horse. Mr. Read sort of “defense” of the machine, is not out to “sell” anyone on this however, seemed to Mr. Buck to idea of the futility of political constitute a pretty feeble answer “practicality.” He wishes only to to those who have alleged that make it plain. The only antidote modern life is far less “creative” to political authoritarianism, he than life in pre-machine times. So says, is “a project in learning, not Mr. Buck set himself a question: selling.” How many Americans actually work at simple repetitive opera- Surprises tions? As a project in learning, the es- The Bureau of Labor Statistics says collected in this volume are supplied some clues. In a recent full of surprises. Taken as a whole, year some thirteen million “pro- they utterly confute the charge duction” workers were employed that THE FREEMAN is edited by in the land. From this thirteen true believers who merely serve million Mr. Buck subtracted the up to other true believers a doc- figures for industries, such as lum- trine on which they have been pre- bering, where narrowly repetitive sold in advance, which is one criti- operations do not exist. A tool cism of FEE which Mr. Read does plant inspection turned up the in- not tackle. The FREEMAN-type es- formation that only one out of six say is normally built step by step toolmakers worked at “robot” jobs. — and it must take blind men to Even in automobile assembly ignore conclusions that are so plants only five out of nine workers firmly grounded in factual evi- were actually employed on the line. dence and in logical lucidity. Mr. Buck’s mathematical foray Take William Alvadore Buck’s ended by reducing the total num- “Emancipation by Machine: The ber of “robot” workers in the U.S. Myth of Mass-Production Slavery,” to 2.5 million, or 3 million at most. for example. Most defenders of And this was for a year in which modern capitalism have been will- the gainfully employed, including ing to concede that a certain farmers and service people, num- amount of “robotization” is in- bered 66 million. separable from the factory system. Repetitive boredom, then, af- ===== PAGE 61 ===== 1959 A PROJECT IN LEARNING 59 c flicts only from one-twentieth to ployed dance teacher which sug- one-thirtieth of the working force gests that children would be better of the most advanced mass produc- off if the PTA would sponsor few- tion nation in the world. In com- er rather than more extra-curricu- parison to the 2.5-to-3 million that lar activities for after-school work on repetitive tasks the Bu- hours). To continue in this vein, reau of Labor Statistics lists 8.8 it was a complete surprise to me million people who are “craftsmen, to learn, from George Winder, foremen, and kindred workers,” that it was the sixteenth-century and 6.4 million who are ‘“profes- Africa Company, a private trading sional, technical, and artistic organization, which effectively put workers.” “Managers, officials, and Britain on the gold standard. It proprietors’ number another 6.6 did this by making its golden million. Why, then, not call us a Guinea the most acceptable coin in nation of individualists if the non- the realm. (The Guinea, as coin repetitive type of industrial job in the realm, became coin of the outnumbers the robot type job by realm without any conscious effort as much as seven to one? on the part of government to make Moreover, the ‘robots’ do not it such.) The moral of Mr. Wind- necessarily cry to be separated er’s piece: that honest money is from the assembly line. Some peo- not created by government but by ple, as Mr. Buck discovered by individuals whose private evalua- asking a few questions, actually tion of a medium of exchange sets prefer repetitive tasks. There may the standards of the marketplace. be a genuine problem of how to make such people happy once “au- More Surprises tomation” has released them for Another of the surprises in this more individualistic and enter- volume is Oscar Cooley’s “Why prising work. Not Pay Cash?” This piece re- Mr. Buck’s step-by-step refuta- futes the popularly held idea that tion of clichés is a good illustra- it is possible, through borrowing tion of THE FREEMAN approach to against the future, to shift the full its work, which is not propagan- burden of contemporary wars or distic within the modern drill-it- depressions to one’s grandchildren. in-by-rote connotation of the term. As Mr. Cooley makes plain, any- The genuine surprises in this vol- thing wasted or shot away in the ume mount up as one reads Rose present has to be taken from cur- Grieco’s “A Child’s Diary” (an rent stocks —and if those stocks imaginative piece by a PTA-em- are paid for by debt rather than ===== PAGE 62 ===== 60 THE FREEMAN November by taxation the present generation the depletion allowance; in other must take the material conse- industries, the trick has been ac- quences of the resulting inflation. complished by the device of re- (True enough, the social effects of taining a good portion of corpo- the inflation will live on to plague rate earnings for an investment our grandchildren. It will not seem which may eventually bless the right that some of them must be stockholder as capital gains. “Pro- taxed to redeem the bonds held by gressive taxation’ doesn’t keep ex- others. But the eventual settle- isting industries from growing. ment of the debt on the govern- But it must have a depressing ef- ment’s books will merely involve a fect on the birth statistics of new transfer of existing wealth. The companies. In other words, the original loss of wealth will have progressive tax is a force for been paid for in grandfather's monopoly and, concomitantly, a time. And for the sake of non- lower standard of living. bondowning grandchildren it The surprises in this anthology had better been paid in cash. of fifty pieces might be multiplied The surprise in Harold Bray- almost indefinitely. Patrick Boar- man’s “Rich Man's Tax — Poor man’s “Value Judgments in the Man’s Burden” is the suggestion Classroom” suggests that marginal that the American standard of life utility cannot be taught as an eco- might be two or three times high- nomic concept without a prior com- er than it now is if “progressive mitment to the philosophic value taxation” had never been legis- of free choice. Sylvester Petro lated. The higher one’s income tax suggests that union leadership bracket, the less the incentive to must always tend toward corrup- employ one’s funds in risky ad- tion as long as union membership ventures. Just how many job-cre- is socially or legally compelled. ating enterprises have been “birth- Edmund Opitz suggests that the controlled” out of the very possi- majoritarian principle in the Dec- bility .of existing is, of course, im- laration of Independence is in- possible to compute. But Mr. Bray- compatible with the doctrine of man’s logic cannot be assailed. inalienable rights once religious How else explain the fact that in- sanctions have ceased to check ma- dustry has had to find ways of jority appetites. negating the progressive income And so it goes, surprise after tax in order to assemble capital surprise — but always within the for expansion? The oil industry framework provided by coordinates has managed to do this by way of of fact and logic. * oo ===== PAGE 63 ===== 1959 OTHER BOOKS 61 +S A Study in Ethical Theory is not within the range of rational By D. M. Mackinnon. New York: discussion. Someone else might Macmillan, 1958. 280 pp. $3.50. say “Ice cream, ugh!” In using + Ethics and the Moral Life sounds like “ugh” and “yum” we By Bernard Mayo. New York: St. may influence other people's feel- Martin's Press, 1958. 238 PP. jngs hut it can’t be said that we - $5.00. are engaged in rational discourse. THE INTEGRITY of moral philos- The proponents of the “emotive” ophy is under fire from several di- theory take an unwarranted leap rections. It has to defend itself from the obvious fact that some against the so-called “emotive” personal judgments are merely theory of the logical positivists, “emotive” to the false conclusion against the existentialist chal- that all moral judgments are ne- lenge, and it must maintain the ceggarily “emotive,” that is, re- reality of human freedom as ducible to a matter of taste which against the determinists who deny ig not rationally discussable. it. Our authors are professors of Both Mackinnon and Mayo re- philosophy: in Britain and attempt ject that subjectivistic interpreta- to rebut these challenges. Al- tion of moral values and judg- though they write mainly for other ments. Mayo points out that in philosophers, the layman will find discourse generally, when I say their arguments instructive. “This is a good fishing rod,” the The so-called “emotive” theory word “good” has an objective re- of ethics maintains that moral ference. By “This fishing rod is evaluations or moral judgments good” I mean that anyone com- are just a matter of expressing petent to judge fishing rods would one’s likes or dislikes. People are agree with me, and I could engage just emoting when they say, for in rational discussion about the example, “Stealing is wrong.” features good fishing rods have They might, with equal meaning, that make them better than bad say “Stealing, ugh!” Now if any- ones. Similarly, in ethical dis- one says “Ice cream tastes good,” he is describing his feelings about ice cream, but he is neither de- Any book reviewed in this Book Section (or scribing ice cream nor purporting any other current book) supplied by return . mail. You pay only the bookstore price. We to do so. Such an assertion may be pay the postage anywhere in the world. translated accurately as “Ice Catalogue on request. cream, yum yum!” This is truly | rHe BOOKMAILER. Box 101, New York 16 an emotive utterance and, as such, ===== PAGE 64 ===== 62 THE FREEMAN November course — when ‘“‘good” is used as tion in terms of a general prin- a moral epithet, that word is ob- ciple, just as a scientist in think- jectively evaluative and not just ing scientifically has to think in an expression of liking. terms of the characteristics that Again, when I say “Stealing is certain events have in common. I wrong,” I am not merely giving would not be thinking morally at vent to my private feelings nor all if I took my predicament as so just expressing my disapproval of ‘“unutterably particular” that I stealing, I mean it is morally could not view it in the light of wrong to steal. I could conceivably general moral principles. find myself in a situation where I Mackinnon’s complaint against might have a strong inclination to the existentialists is that they steal, but in holding that stealing fall in love with the tragic for its is morally wrong, I am committing own sake, accepting the hardness myself against stealing wherever of our human lot, and the intrac- it occurs, whatever my feelings in tability of the world around us to a particular situation. I am saying our aspirations, with an almost that stealing should always be dis- masochistic delight. Giving one- approved and be disapproved by self up to a sort of self-indulgent everyone. Evidently then, ethical wallowing in the beastliness of judgments are more than mere things is a poor substitute for emotings. About ethical judg- tackling the next job at hand. ments there is something ration- A third question, and one of ally universalizable. perennial interest in ethics, is that of human freedom. Both Mackin- Existentialism Invalidated non and Mayo make use of Kant’s Our two philosophers also agree statement, “Ought implies can.” in invalidating existentialism. The It would be senseless for me to existentialists make much of the say I ought to have done some- fact that every situation in which thing I didn’t do unless I was able a person must come to a moral de- (or free) to have done it. Mackin- cision is a unique one involving non bases his argument for hu- unique persons. Mayo accepts this man freedom largely upon our im- fact, but he considers it completely mediate consciousness, our direct false to think that such uniqueness awareness of the fact that we is relevant to the making of a could have done something we moral decision. In order to think didn’t do, while Mayo discusses in moral terms at all one must human freedom largely in relation view the unique aspects of a situa- to scientific predictability and de- ===== PAGE 65 ===== 1959 OTHER BOOKS 63 terminism. He does not claim to of moral autonomy.” (p. 176) No find human free-will in the inde- man is really moral unless he is terminism of electron jumps. He guided by principles he has made maintains that even if determin- his own. If conscience were a con- ism were universal, since predic- ditioned reflex, an unreflective im- tion is a function of language, and itation of the ways of others, there language cannot describe every- would be no such thing as con- thing without limit, there would science —the word could never still be ample room for scientific have been invented. The whole unpredictability and for moral idea of moral education is to in- freedom in human action. ternalize authority, to pass from Finally, both these philosophers doing what we do because others would resist the effort to reduce say it is right to a condition in what is right to the question of which we bring moral principles what is customary or legal or con- to the test of rational reflection ventional. ‘“Moral maturity,” and make our own decisions. writes Mayo, “is the achievement —ROWLAND GRAY-SMITH We invite your subscription to MODERN AGE A CONSERVATIVE REVIEW Published Quarterly Edited by RusseLL Kirk Vou. 3, No. 4 (Fall 1959) Special number on “HUMANE SCHOOLING?” Including contributions by Richard M. Weaver, Daniel Villey, and Erik Von Kuehnelt-Leddihn and the second number of the “Burke Newsletter” $4.00 the year $1.25 the copy Address: 64 East Jackson Boulevard, Chicago 4, Illinois ===== PAGE 66 ===== IN for a dental appointment. I buy DEFENSE them for another reason, too-— they are wonderful for marking! OF Something in my childhood training prevents me from mark- POCKET BOOKS ing up the clothbound books in our home library. When I want to GRACE BOSWORTH refer to a particular passage in one, I have to hunt for it. Not so IT WAS REPORTED recently that the with my pocket books, they are Yugoslavs almost wept with joy underlined in red and blue and when exposed to their first sample marked with brackets. Listen: of supermarket shopping. The lux- “Private fortunes are destroyed ury of picking and choosing from by public as well as by private ex- many items touched them deeply. travagance. And this is the ten- In the local market the other dency of all human governments. night, I wondered if the day would A departure from principle in one ever come when they could buy a instance becomes a precedent for loaf of bread on the one hand and a second; that second for a third, a book on the other. We take for and soon. ...” granted our markets, even more That is Thomas Jefferson, writ- so, our books. With the advent of ing a letter in 1816. A book* of pocket books, we can have every- his collected letters cost me 35¢. It thing from new developments in has 186 pages in all, but even if space travel to murder or adven- it had only the one letter, that ture novels; the world at our fin- was worth my investment. gertips for less than $1.00. When the news from Washing- There is an element that says, ton stands my hair on end, or an- “I wouldn't buy a pocket book.” other Senator gets an idea of what Many hold that all paperbacks are we should and shouldn’t make the as lurid as the front covers on functions of our government, I most of them. In other cases, peo- can sit down with Jefferson, and ple feel a book belongs in a per- Madison, and Hamilton, and think manent library and reprints don’t about it —and it didn’t cost as meet that need. No, they are made much as a single night out to din- for reading while eating lunch, ner at a half-way decent restau- riding a bus or train, or waiting rant. eo = . . . H Mrs. Bosworth is n California housewife who Thomas Jefe son on Democracy, edited also does secretarial and editorial work. by Saul K. Padover. 64 ===== PAGE 67 ===== OF YOUR PRODUCT CIBER ser-sondine NAMEPLATES Poly-Plates — Add new color, new beauty, new Life to your products with Brady self-bonding Poly-Plates. Give you unlimited free- dom in nameplate design. Made of Miracle Mylar* for scratch, scuff, acid and solvent resistance. Permanent sub-surface printed. Sparkling gold or silver metalized. No screws, rivets, heat or activators needed to apply. Stay bright, clean, legible — for the Life of Your Product. -SAUS Y *DU PONT'S REGISTERED TRADE MARK SIRLDIN BRADY-CALS res: LL MI-T-FLO Pressure-sensitive, Super-thin Vinyl Nameplates, Top-sur- face Printed . . . Enduro- Kote Over-coating protected. 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