===== PAGE 1 ===== THE [eelld DECEMBER 1960 IDEAS ON LIBERTY Monetary Crossroads . . . . . . . Hans F. Sennholz 3 The Real Conflict . . . . . . . . Ralph Bradford 12 Economic Growth: Reality and Mirage . . William Henry Chamberlin 15 The New Frontiersmen . . . . . . . H.P. B. Jenkins 21 The United Nations: Peace or Peril? . . . Darryl W. Johnson, Jr. 22 That Extra Mile . . . . . . . . . George D. Scarseth 31 William Ralphinge. . . . . . . . Edmund A. Opitz 34 The Powerof Truth . . . . . . . . Leo.N. Tolstoy 37 Equality Versus Liberty: The Eternal Conflict . . . . . . . R. Carter Pittman 40 Book Reviews Too Rich for Our Own Good? . . . . . John Chamberlain 5 Other Books . . . . . . . . . . 55 Annuallindex. . . . . . . . . . 59 THE FOUNDATION FOR ECONOMIC EDUCATION, INC. frvington-on-Hudson, New York ===== PAGE 2 ===== traditionally disguised. It is often called “incidental” to such government activities as . flood-control, irrigation and navigation. But billions are mighty big “incidentals”! IS THERE A NEED FOR SUCH SPENDING? Government doesn’t have to spend billions of future taxes for America to have all the electric power it will need. The hundreds of independent electric companies are able and ready to supply this power. To build the plants. To 3 finance them through investors. And in your budget produce taxes as well! that’s hard gv tHe story IN A NEW FREE BOOKLET to plug This booklet is published specially for those interested in local community affairs. It discusses the effect that in- You can’t budget for your share of the cost of government in the electric light i oased federal “public power” spend- and power business. ing could have on communities—taking That's because nobody can tell you money that you might prefer to see exactly what your part of the bill is. spent locally on schools, libraries, hos- More than $5,000,000,000 in tax- Pitals, parks and other essentials. To payers’ money has gone into federal get your copy promptly, please send government power projects. Proponents ~~ coupon below. of the projects now say that billions rt more should be spent—much of it to --—==-v-vc--=- < = 2 come from taxes, too. i Z Z 2 | POWER COMPANIES ZM=r4 2% But there isn’t, and has never been, |" Room 1124- = a named “government power tax” to | 1271 Ave.of the Americas ow i show a single individual taxpayer how | So York 20. mY. i = much of the bill he pays. without Charger” = Is it any wonder that this handling the material +. Ge of the taxpayer’s money slips by almost | (J “What Do Federal Power Ventures | unnoticed? That $5,000,000,000 went ! Cost Your Community?” ° yesterday, and around $10,000,000,000 | [Names of companies that sponsor | : ] this message 1 more has been proposed without even | a big-scale national discussion of the 1 , whole picture. (Please print) | THE REASON WHY such an enor- | Address I mous tax burden is virtually overlooked City Zone State | is that federal power spending has been | AMERICA'S INDEPENDENT ELECTRIC LIGHT AND POWER COMPANIES ===== PAGE 3 ===== Join the thousands of others from all 50 states and many foreign countries who hold individual, joint, trust or corporation savings accounts and get the following outstanding advantages for your invested savings. HIGHEST EARNINGS —Since January 1, 1960, we are paying at the rate of 412% per annum. Accounts opened or added to by the 10th of any month earn from the 1st of that month. ASSETS OF OVER $438,000,000.00 with over $100,000,000.00 in cash and Government Bonds and Reserves of over $31,500,000.00 as of June 30, 1960. AVAILABILITY OF FUNDS ~ Coast Federal has always paid every withdrawal immediately on request. SAVE-BY-MALIL — Airmail postage paid both ways on all transactions. SECURITY of principal assured through progressive, conservative manage- ment and the additional protection of $10,000.00 insurance on each account. ' COAST FEDERAL SAVINGS a JOE CRAIL, PRESIOENT © MEMBER — FEDERAL HOME LOAN BANK — FEDERAL SAVINGS AND LOAN INSURANCE CORP. i — — —— — — — V—— — — — —— — — — — — — — — — — —— — — —— — — TE T—— — — — — — —— Coast Federal Savings, Department "H" 855 South Hill St. at 9th . (Please check-mark as desired.) Los Angeles 14, Calif. 1. {1 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 “Coast Federa! Savings Guide,” names: Savings Account Information ond latest financial statement. Name - Address City Zone State ===== PAGE 4 ===== THE Teemdi A MONTHLY JOURNAL OF IDEAS ON LIBERTY DECEMBER 1960 Vol. 10 No. 12 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, 1960, 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 ‘Equality Versus Liberty: The Etermal Conflict.” Any current article will be supplied in reprint form if there are enough inquiries to justify the, cost of the printing. ===== PAGE 5 ===== The continuing outflow of gold suggests that +3 has reached its . . . HANS F. SENNHOLZ No MATTER what the politicians The most popular approach dur- may have promised the American ing the last 30 years has been people, the new administration deficit financing, which largely ac- faces some hard facts of economic counts for the ominous deprecia- life. Most electioneering promises, tion of our dollar. During the if implemented, involve increased Roosevelt, Truman, and Eisen- government spending for such fa- hower administrations, unusual vored pressure groups as farmers, conditions hid the most spectacu- workers, small businessmen, and lar effects of inflation from the the aged. But more government eyes of the public. The new ad- spending necessitates higher rev- ministration may be less fortu- enues which must be obtained nate for, in addition to the pres- from the people. ently visible effects of inflation, it If the new administration tries is likely to face a gold crisis. to keep its campaign promises, it In September 1960, the Ameri- will have to raise the taxes or in- can gold stock slipped below $19 cur budget deficits. Judging from billion for the first time in 20 past experience, it will do both: years. Since 1958, it has decreased close tax “loopholes,” which in some $4 billion and continues to plain English means higher taxes decline month after month. In ad- on some groups of taxpayers; and dition, foreign banks and capital- rely on deficit financing, which ists have built up large liquid as- means inflation. sets in this country which may be —_— } redeemed in gold upon demand by Dr. Sennholz is Professor of Economics at . . Grove City College, Pennsylvania. foreign central banks. Foreigners 3 ===== PAGE 6 ===== 4 THE FREEMAN December now own in the United States ap- gold and international exchange is proximately $21 billion of liquid the inevitable outcome of the assets. Though we still hold nearly monetary policies conducted by $19 billion of gold, some $12 bil- the government. A policy of infla- lion of that is required as mone- tion or credit expansion causes an tary reserves under our Federal outflow of gold because inflation Reserve Bank: laws. This leaves a makes commodity prices rise and free gold reserve of some $7 bil- short-term interest rates: decline. lion against $21 billion of liquid Foreigners purchase less from us foreign assets. and our imports increase. At the same time, short-term capital is sent abroad in order to earn In popular language, this out- higher interest. Consequently, flow of gold and build-up of for- gold leaves a country until its in- eign balances is called an “unfa- flationary policy is abandoned or vorable balance of payments.” It until it is surpassed by inflation gives rise to alarm because for- in foreign countries. eigners may some day decide to The socialists and nationalists ask for gold en masse, which are quick to lay the blame for the would leave the U. S. Treasury gold losses on sinister foreign bankrupt in international pay- forces that are said to attack the ments. But some government offi- stability of the dollar. The Fed- cials are still disposed to view the eral Reserve System is applauded gold loss as a passing phenomenon for its valiant defense of the cur- of limited scope because most of rency against foreign intrigue and the foreign dollar gains are de- speculation. posited in American banks or in- In reality, the Federal Reserve vested in American securities. System is the government engine The popular explanations of of inflation that causes the gold this unfavorable balance are often losses. The Federal Reserve ex- quite superficial. The general pub- pands its credit more than the lic believes that an unfavorable European central banks expand balance is the result of unfortu- theirs. American prices thus tend nate circumstances over which the to rise more quickly than prices citizens have no control, and that in Europe, and the American in- correction of the situation re- terest rates tend to be lower than quires government action on an European rates. Foreigners have international scale. nothing to do with the causation The truth is that the flow of of these phenomena. European An Unfavorable Balance of Payments ===== PAGE 7 ===== 1960 MONETARY CROSSROADS 5 and American businessmen react huge budgetary deficits for some alike to American credit expan- 30 years without the dilemma of sion. They buy less in the United embarrassing gold losses. Why States and more abroad, and both could the previous administrations tend to shift some capital over- conduct inflationary policies with seas. such impunity? On August 1 when the Federal During the 1930’s, the fetish of Reserve discount rate stood at 3% cheap money dominated Europe per cent, the comparative rates and other parts of the world. No stood at 6 per cent in England, 5 matter what President Roosevelt per cent in West Germany, 4 per did to the U.S. dollar, the Euro- cent in France, and 7.3 per cent pean governments outdid him. in Japan. It is no coincidence that The prestige of the pound sterling each of these countries was in- went in eclipse when, in 1931, the creasing its gold reserves and dol- Bank of England quit paying gold lar holdings. From January 1, and went off the gold standard. 1959 to March 31, 1960 (the Capital and gold holdings no latest date for which statistics are longer seemed safe in England. available at this writing) the Also, France and Switzerland suf- United Kingdom gained $159 mil- fered severe gold losses by reason lion in gold and dollar holdings, of their currency devaluations in Germany $291 million, France 1936 and the explosive political $783 million, and Japan $522 mil- situation in Europe. The rise of lion.! So large are the gold and Hitler caused gold to: leave Ger- dollar holdings of the German and many until rigid government con- Swiss banks that both central trols halted all movements. With banks have taken steps to halt the the outbreak of war and the threat heavy inflow of funds from the of German occupation, the flight United States. of European gold to the United States naturally accelerated. Euro- Foreign Inflation Facilitated Dollar pean chaos and monetary disorder Depreciation afforded U.S. monetary authori- Such a turn of events comes as ties tremendous leeway for their a shock to many American ob- own inflationary ventures. servers. The United States gov- For the same reason, the nu- ernment has expanded credit nu- merous bursts of Federal Reserve merous times and has incurred credit expansion in the first post- I Federal Reserve Bulletin, August War decade failed to create a dan- 1960. p. 959. gerous payments problem. The Fed- ===== PAGE 8 ===== 6 THE FREEMAN December eral Reserve System in the Tru- eral Reserve authorities took sev- man Administration could expand eral additional steps to ease credit. credit and depreciate the dollar be- The discount rate at which the cause foreign currency deprecia- System stands ready to lend its tions were even worse. In Eng- funds to member banks was low- land, France, Germany, Italy, and ered in two stages from 4 per Japan, the central banks created cent to 3 per cent. Effective Sep- credit even faster than did the tember 1, the reserve require- Federal Reserve, and their gov- ments for banks in New York and ernmental trade restrictions were Chicago were reduced to 17% per even worse than those of the Fair cent from 18 per cent. Rules were Deal. relaxed as to the amount of cash When foreign governments re- in bank vaults that may be counted turned to balanced budgets, the as part of a bank’s legal reserves. situation was bound to change. These two steps provide commer- Foreign currency stabilization and cial banks with more than $600 continuous American credit ex- million of new reserves. The Sys- pansion meant that capital and tem also embarked upon large- gold would turn away from the scale open-market purchases of United States. In 1957, this turn- government securities which in- ing point was finally reached. jected more than $600 million in- to the economy. A further indica- While more and more European money policies is the reduction of governments endeavored to bal- margin requirements on stock ance their budgets and took steps market credit from 90 per cent to toward currency convertibility, 70 per cent. the United States government The United States government continued its policy of deficit and its Federal Reserve System spending and credit expansion. In are firmly committed to deficit fi- 1958 and 1959 respectively, the nancing. Whenever the American federal government incurred defi- economy shows symptoms of eco- cits of $7.3 billion and $8.0 billion. nomic decline, the government The Federal Reserve lowered its feels called upon to create another discount rate from 3 per cent in boom through deficit spending January to 134 per cent in April and credit expansion. This atti- of 1958, but felt obliged to raise tude is the ideological cause that the rate again later in the year. is creating and perpetuating the Beginning in June 1960, Fed- problem of gold losses. ===== PAGE 9 ===== 1960 MONETARY CROSSROADS 7 May We Ignore the Problem? It seems unlikely, however, that The United States cannot con- the U.S. government can long per- tinue a payments deficit of present suade foreign central banks to ig- proportions and lose gold indefi- nore the problem. Governments do nitely. What can and should be not trust the integrity and hon- done to solve the problem? esty of one another in monetary Some persons suggest that we matters. They learned the lesson merely ignore the problem be- in 1931 when the British govern- cause gold is an ancient relic for ment abandoned the gold standard which there is no place in the and again in 1949 when it de- modern economy. Who wants to valued the pound. France and Hol- sacrifice the government’s auton- land, particularly, suffered huge omy in economic planning for the losses on their sterling holdings in sake of gold and a given exchange 1931 when they trusted assur- rate? ances of the Bank of England’s For the U.S. government to ig- Governor Montagu Norman that nore the gold problem is to invite England would remain on the gold dollar disaster. It is true that our standard. But two days later he government may temporarily suc- suspended gold payment. In 1949, ceed in persuading foreign cen- Sir Stafford Cripps, Chancellor of tral banks to ignore the dollar the Exchequer, reassured the weakness. Through persuasion or frightened public thirteen times gentle coercion it may induce for- of his sincere intention to main- eign depositors to maintain their tain the official exchange rate, dollar balances and refrain from whereupon he suddenly announced further gold withdrawals. But the a devaluation. These examples il- foreign banker who heeds the lustrate the reasons why govern- American advice runs the risk of ments and central bankers cannot staggering losses in case the U.S. trust each other in monetary mat- government should suddenly cease ters. ‘ gold payments, which would cause Foreign dollar-holders may re- the dollar to fall in relation to member this lesson and withdraw gold and foreign exchange. And their capital before it is deci- he invites disaster regarding his mated by an American devaluation own career. To protect his own or payment suspension. True, solvency, he must continue his their withdrawal might precipi- gold withdrawals although he may tate a sudden run and crisis. But, start a run and precipitate a dol- in the long run, that might be less lar crisis. harmful than a continuation of ===== PAGE 10 ===== 8 THE FREEMAN December currency expansion that is hidden larger export subsidies will be re- and prolonged by dishonest tricks quired to counteract the basic and subterfuge. maladjustment. It is obvious that this must end sooner or later. The A Proposal by the President subsidy approach is self-defeat- It is imperative, some writers ing, as it necessitates more gov- concede, that we maintain world ernment spending and deficit fi- confidence in the U.S. dollar and nancing which is the very cause of solve our payments problem; we the gold losses. In short, an evil must expand our exports of goods cannot be remedied by an intensi- and services to offset our spend- fication of its cause. ing. The government’s eagerness to President Eisenhower had this help exporters with taxpayers’ in mind when he outlined an ex- money is usually accompanied by port development program to as- an official denunciation of foreign sist American exporters in ex- trade policies. Foreign trade bar- panding their sales in foreign riers and restrictions are blamed markets. The government would for our inability to sell enough promote exports through free ad- abroad to solve our payments di- vice, guarantees, U.S. participa- lemma. tion in foreign trade fairs, expan- This attempt to shift the blame sion of export credit insurance by to foreign governments for what the Export-Import Bank, and is clearly our own government's other hidden subsidies. making must be rejected. During Will such a policy solve the pay- recent years the industrial nations ments problem? Obviously not! of the free world have reduced The government help may tempo- their trade barriers, which par- rarily promote American sales tially accounts for their upsurge abroad because the public treas- in production and prosperity. ury carries some sales costs or re- While they were lowering their duces the risk to exporters. These barriers, we were losing gold, subsidies for the benefit of for- which strongly suggests that we eign buyers and American export- not attribute our losses to the re- ers may temporarily halt the gold maining, but reduced, foreign losses. But government payments trade barriers. do not correct the basic maladjust- The government reasoning im- ment. If our credit expansion con- plies that foreign governments tinues and the purchasing power are responsible for our dilemma of the dollar further declines, ever and that the problem can be solved ===== PAGE 11 ===== 1960 MONETARY CROSSROADS 9 by foreign freedom of trade on duce its spending, balance the the one hand and by American budget, and refrain from credit trade restrictions on the other expansion. It is doubtful, how- hand. Although this is a conven- ever, that any foreign handout ient line of official reasoning, it could bring about such a change is radically opposed to the truth. in American attitude. On the con- It is especially dangerous because trary, substantial German foreign it encourages protectionism in the aid spending would appear to vin- United States. The payments ar- dicate American spending and en- gument together with the argu- courage our Washington planners ment of higher labor costs in the to spend even more. Furthermore, United States, which allegedly foreign aid by their governments hampers American competition at would tend to dissipate the econ- home and abroad, could lead to a omic strength of our prosperous great number of new American allies and create payments prob- trade restrictions. Such a “solu- lems for them. Foreign aid spend- tion,” however, can only disrupt ing encourages the recipient gov- foreign trade, cause unemploy- ernments to embark upon central ment at home and abroad, and planning and development pro- further jeopardize our economic grams and, thus, further promotes and political position in the free socialism in the underdeveloped world. areas of the world. Another imperative for the solu- tion of our payments problem, ac- More Subterfuges cording to official reports, is that An intensification of our pay- our prosperous allies take more ments problem will bring the U.S. of a share of the West's responsi- government to crucial monetary bility for aid to underdeveloped crossroads. One road leads to countries. Our government offi- stabilization of the dollar through cials are urging Germany, in par- balanced budgets and credit sta- ticular, to embark upon more for- bility. This road requires the re- eign aid spending in Asia and nunciation of a great deal of gov- Africa to give relief to the U.S. ernment intervention. It is the Treasury. road of individual enterprise and This is poor advice. German limited government. The other handouts to Ghana, Congo, or In- road leads to all-out socialism via dia can affect the American gold a number of interventionist sub- problem only inasmuch as they in- terfuges designed to make infla- duce the U.S. government to re- tion and credit expansion work. ===== PAGE 12 ===== 10 THE FREEMAN December One of these measures is the would shake the world’s confidence lowering of the legal reserve re- in our integrity and probably pre- quirements. According to present cipitate the foreign run on the re- legislation, the Federal Reserve maining gold. System is required to maintain a Another subterfuge in the ar- reserve of 25 per cent in gold cer- mory of statist planners is foreign tificates for its note and deposit exchange control. This is tanta- obligations. As pointed out above, mount to nationalization of all for- gold holdings are down to $19 bil- eign exchange dealings. All ex- lion of which some $12 billion porters would be forced to cede constitute required reserves, leav- their foreign earnings to the gov- ing a free gold reserve of some ernment which would then sell $7 billion. If foreign central banks them at arbitrary exchange rates continue to draw heavily against to importers for purchases which this amount, or if the Federal Re- the officials deem essential. For- serve should expand its obliga- eign money and gold would be ra- tions through additional note is- tioned according to central plan sue or credit expansion, or if the and official discretion. In a country two things go on simultaneously, that depends on imports from the critical point may soon be abroad, foreign exchange control reached. Under the present law, is naked tyranny of the govern- the Federal Reserve would then ment over business. In the United be required to contract its credit States, where foreign trade is less in order to reduce its obligations. important, foreign exchange con- Rather than face up to a trol would constitute another im- squeeze in that manner, however, portant step toward total social- the government will probably re- ism. Like the reduction of reserve sort to a subterfuge it has prac- requirements, nationalization of ticed before: reduce the legal re- foreign exchange dealings can serve requirements from 25 per hardly be assumed to foster for- cent to, let us say, 15 per cent. eign confidence; it probably would This would afford the System new trigger the dreaded run. leeway for further credit expan- Any government that invites sion by changing required gold such a run would most likely re- reserves to free reserves. act to it by suspending gold pay- Such a “solution,” however, ments. Blaming foreigners and would merely intensify the pay- speculators, it would declare itself ments problem through temporary incapable of meeting the gold with- continuation of present policies. It drawals. Immediately, the price of ===== PAGE 13 ===== 1960 MONETARY CROSSROADS 11 dollars in terms of gold and for- The effects of currency devalua- eign exchange would collapse. tion are disastrous. Like the pay- Foreign holders of dollars or ments suspension, dollar devalua- claims on dollars would suffer se- tion would undermine the econ- vere losses. Though such bank- omic position of the United States ruptcy might solve our payments in the world. It would probably difficulties, the price would be sui- usher in price, wage, and rent cide as a free nation. The dollar controls. It would inflict severe would lose its position as a world losses on foreign depositors and currency. Foreign confidence in on all creditors, thus penalizing the United States as a free nation thrift and self-reliance. It would and a champion of freedom would destroy the people’s savings and be shattered. The resultant infla- capital en masse and cause capital tionary burst here would entail consumption. Productivity and all-round price, wage, and rent standards of living would decline. controls. In other words, socialism Even so, currency devaluation would arise from the ashes of in- is an inevitable step on the road flation and payments bankruptcy. of credit expansion and unbal- anced budgets. No matter how Dollar Devaluation Is Inevitable many controls the inflating gov- Another “remedy” of inflation- ernment may choose to impose on ists is currency devaluation. When the people, currency depreciation the outflow of gold reaches men- sooner or later necessitates official acing proportions, an interven- devaluation, which re-establishes tionist government is prone to de- a more realistic exchange rate be- value the currency officially. It sud- tween gold and depreciated cur- denly decrees that the price of gold rency. and the value of foreign money have risen in terms of the depre- If our government continues its ciated dollar. Just as President policies of monetary ease and de- Roosevelt devalued the dollar in preciation, dollar devaluation can- 1933, the new administration will not be avoided. Devaluation con- be tempted to devalue again, in- stitutes official admission that the creasing the price of gold, for in- dollar has declined in value—proof stance, from $35 per ounce to $50 that the laws of economics prevail or $60. over government planning. ~ ===== PAGE 14 ===== THE REAL la CONFLICT Its resolution is a personal responsibility. RALPH BRADFORD THERE has been much talk in re- lows — whether it shall be an cent years about the alleged con- agency to protect him and all flict between business and govern- others in their life and liberty and ment. Actually, there is no such pursuit of happiness, or whether thing. through coercive force it shall Businessmen, to be sure, have direct and dominate his life and often criticized those in charge of theirs. government on matters of policy or It was a recognition of this con- administration. But so have farm- flict that led the founders of our ers, laborers, and professional peo- government to hedge it about with ple. This is not “conflict.” It is defensive checks and balances. On simply a part of the process of rep- the one hand they wanted to guard resentative government. There is against the overextension of gov- no conflict between “business” and ernmental powers; on the other, government, any more than there they wanted to protect government is between ‘‘agriculture” or against the excessive and ruinous “labor” or “medicine” or ‘“educa- demands of the people who would tion” and government. live under it. In other words, they But there is a conflict, very real, wanted to protect the people from very serious, age-old and inevitable themselves; for whether they were — namely, the conflict within exploited by those they had each of us as to the role he expects elected; or despoiled by their own government to play in his own life cupidity, the ruin, in the end, and in his relations with his fel- would come home to them. —_— Once launched, that government nd or organisation comma” speaks’ had to meet the test of time and 12 ===== PAGE 15 ===== 1960 THE REAL CONFLICT 13 usage. As the decades multiplied, when supergovernmentalism is it emerged as one of the great ex- carried to its final stages, the aim periments of humankind in self- of making life better for the in- government, and so it stands to- dividual is sacrificed, and the end day. result is first to rob him of his But there comes a time in the substance through inflation, and life of every civilization when the finally to deprive him of his free- lamp of freedom burns low. Partly, dom. perhaps, that is because physical frontiers vanish and the pio- Who Is Responsible? neering spirit fades. Partly it may This is where the real conflict be because men cease to make is sharply dramatized — the inner with their own hands the things conflict of the individual with they need, and are thus more and himself, whether to accept and more remote from the realities of exercise self-responsibility, or to primary production. In part, it is attempt the shifting of that re- no doubt due to age — not of per- sponsibility onto society through sons but of civilizations; for they, government. Over and over, his- too, have their time of youth and tory has recorded the results of vigor, their sedate and sedentary that conflict, as portrayed in the middle period, and their shuffling rise and fall of nations. Nor is it senility. all ancient history. We do not need Whatever the cause, somewhere to go back to Rome and its de- along the line the word “success” cline. We have seen it happen in becomes less alluring than the many parts of today’s world. Be- word “security” — and when that fore the eyes of this generation, happens to large numbers through- once-great nations are decaying out a civilization, then its period and falling apart. The constant of greatness is waning or past, spread of our own government, and and it is headed for the boneyard the sapping demands of its vor- of history. acious tax-appetite, accompanied Now the pendulum is on a swing by a dollar shrinkage to about toward the Mother-Father State. one-third its value in one genera- As always, this trend is based on tion — this is painfully apparent to the loftiest of motives. The de- all who will see. clared aim is to improve the lot of No matter where on the globe the individual — a consummation it may be located, the constant devoutly desired by all men of tendency of government is to good will. Ultimately, however, grow; to expand its functions; to ===== PAGE 16 ===== 14 THE FREEMAN December absorb the prerogatives of sub- ruin. This process is often stoutly ordinate units of government such resisted by those who want the as states, counties, and munici- state to remain simple for the sake palities, using up their tax sources of solvency and freedom. It is ad- in its ever-increasing demand for vocated and pushed on by those revenue; and to take away more who want the State to do some- and more of the substance of thing special for them or their those very individuals whose lot economic group or their area, or it is supposed to be improving. for the public generally. And the And it does this, strangely ultimate irony of it all is that the enough, both at the demand and proponents and opponents of what over the protest of its citizens. we may call progress-through- The conflict is not just a case bankruptcy are often the same of ambitious, power-driven bu- people! reaucrats reaching out to gobble up lesser units of government and This is the real conflict — the to control the lives of the people, inner battle between common though that may be part of it. sense and greed, between wisdom Rather, it is the paradoxical and folly, between the sense of get phenomenon of people who resent and the sense of give, between God and resist the encroachment of and Mammon, that always goes on government into their private in the aspiring but weary human lives nevertheless demanding, in heart. effect, that it do so encroach, by If we will multiply the urges insisting that it “give”’ them more and demands we have mentioned and more services, bonuses, loans, by tens of millions; if we will pensions, price supports, subsidies, imagine them extending over dec- tariffs, and other “benefits” never ades and generations; and fi- contemplated when the govern- nally, if we will ask ourselves ment was established. whether we, too, denounce use- Governments start out simply, less spending and inflation in one in response to certain basic needs breath and in the next demand of men living within a common some governmental favor or privi- geographic area. Usually with lege for ourselves, our business, slowness, but sometimes rapidly, or our city—if we will do this, we they go through the steps from will perhaps reach a better under- Jeffersonian simplicity to the apo- standing of the real conflict, and theosis of statism — the stages of the part which we, as citizens, that promise utopia but lead to ought to play in it. -> ===== PAGE 17 ===== WILLIAM HENRY CHAMBERLIN THE SUPPOSED necessity of forcing a more rapid rate of growth for the. American national economy is one of the two main talking points of the statists and planners at the present time. The other is the idea that too little money is being spent for public purposes, that Americans are undertaxed and don’t know how to spend their money wisely anyway, so that it will be all the better for them if an all-wise and omnicompetent government relieves them of much of the task of deciding how to spend, or save, what they earn. There has been much play with the idea that we are in a produc- tion race with the Soviet Union, that our very national survival depends on winning this race. But this whole idea of an economic race between two countries with profoundly different social and Mr. Chamberlin, noted author and speaker on political and economic affairs, has observed at firsthand the conditions of growth on either side of the Iron Curtain. economic systems, ideals, and goals is far more complex than it is to determine who won a hun- dred-yard dash. The complexity is enhanced because Soviet methods of economic computation are highly suspect to most foreign economists who have studied the subject. And their suspicions re- cently received confirmation from an unimpeachable Soviet source. One of the oldest Soviet econ- omists, S. G. Strumilin, in an es- say on “Investment Effective- ness,” recently received in this country, admits that official Soviet figures on industrial growth are unreliable because of the practice of double counting. For instance, in estimating over-all Soviet indus- trial output, sheet steel is counted twice, first when it emerges from the factory, second when it is used in trucks or other manufactures requiring steel. Economic growth is certainly desirable, just as health is desir- 15 ===== PAGE 18 ===== 16 THE FREEMAN December able for the body. But growth that become more numerous and is stimulated by inflation may be poorer. a deceptive mirage, as is growth It is noteworthy that some of that ignores such important ele- the most conspicuous successes in ments as quality of output and solving social and economic prob- free consumer choice. This is why lems have followed the application the very considerable increase in of the method of economic free- Soviet industrial output which has dom, while state intervention has taken place in the last forty years led to some of the biggest fiascos. (and could have been naturally ex- pected in a country of Russia's A Solution to Poverty size, population, and natural re- John Steinbeck’s novel, The sources, regardless of the econ- Grapes of Wrath, dramatized the omic system) has had so little vis- plight of the “Okies,” Oklahoma ible effect on the standard of liv- farmers who were impoverished ing of the Russian people. as a result of a prolonged drought. The experience of the United Under a statist regime the Okies States shows that steady growth would probably have been *“di- on an ever expanding base is the rected” to go to work elsewhere. normal condition of an economy Under a free system many of that is still, despite much state in- them piled into their battered cars terference and distortion, pre- and took off for California. In the dominantly private in ownership beginning, as Steinbeck’s novel and incentives. Real gross national showed, the going was hard. But product over the period 1909-1957 the saga of the Okies had a happy grew at an annual compound rate ending, which has not been so of 2.9 per cent a year. This rate much publicized. They were easily was somewhat stepped up, to 3.8 absorbed into aircraft, oil, and per cent, between 1948 and 1957. other industries and are now Of course, the increase in popu- mostly solid citizens of California. lation made the figures of per The same thing, on a larger capita growth somewhat smaller, scale, occurred in Germany. Since 1.5 per cent for 1909-1957, 2 per the war ended, some twelve million cent for 1948-1957. However, the Germans and people of German upward trend is unmistakable and stock either were foreibly expelled completely explodes the Marxist from their homes and dumped pen- gloom-and-doom theory that the niless into the German Federal rich are predestined to become Republic or fled from political op- richer and fewer, while the poor pression and economic lack of op- ===== PAGE 19 ===== 1960 ECONOMIC GROWTH : REALITY AND MIRAGE 17 portunity in Soviet-ruled East price levels above the market, has Germany. This means that more been a resounding failure from than one out of every five of the every standpoint. Farmers remain citizens of the Federal Republic is dissatisfied; taxpayers are mulc- an expellee or a refugee. The ted; consumers are robbed; there problem of absorption created all is resentment in Canada and other sorts of initial difficulties, crowd- countries which are trying to mar- ing for the older inhabitants, job ket their crops on a commercial difficulties for the newcomers. In basis. this case a plausible case might Another striking example of the have been made for some compul- folly and harmfulness of govern- sion. But the West German au- ment intervention in the free mar- thorities remained true to their ket is the practice, more wide- principle of economic freedom. spread in Europe than in the They did what was possible to United States, of rent control. The help the refugees help themselves result of this experiment, which and find a new start as workers, amounts in many cases to out- farmers, owners of small indus- right expropriation of the owners tries. But they never said to them: of rental housing, is that deterio- “So many of you must go here, so ration of housing and difficulty in many there.” And the result has finding new apartments are in di- brilliantly vindicated the reliance rect proportion to the severity of on individual initiative. Many of the rent control. (Its conse- the refugees are to be found in quences are to be seen at their leading positions. By their hard worst in France where the depre- work they became pacemakers for ciation of the currency has re- the other Germans. To a consider- duced the real value of rents to able extent they replaced Ger- virtually zero. The natural conse- many’s war casualties. Today quence is stagnation in the pri- Germany’s problem is not one of vate building market and an al- unemployed, unhappy refugees; it most complete neglect of upkeep is one of shortage of labor. of apartment houses which yield no revenue to their owners. The A Colossal Failure European country where there is On the other hand, one of no housing shortage is Belgium, America’s biggest and costliest ex- which took the sensible and logical periments in government inter- step of abolishing rent control vention, the attempt to maintain some years ago.) prices of many farm products at So, while growth in an economy ===== PAGE 20 ===== 18 THE FREEMAN December is certainly desirable, some con- Overproduction in general can- ditions and qualifications must be not occur, provided that the free laid down, if desirable growth is market is permitted to function not to degenerate into undesirable normally—a condition that is, alas, “growthmanship,” a mere playing seldom realized in modern times. with figures, a mirage and a de- But a mature and productive econ- ception. After all, as Mr. W. Allen omy like the American can con- Wallis, special assistant to Presi- ceivably turn out more of some dent Eisenhower and executive particular commodity than home vice-chairman of the Cabinet and foreign markets can absorb. Committee on Price Stability for None in America, for instance, Economic Growth, very sensibly goes hungry for lack of bread or said in a recent address: other wheat products. It is merely “Growth is not an end in itself. silly to force the growth of un- We do not live to grow; we grow usable agricultural surpluses or to live better. And we do live bet- industrial goods for which there ter, not only by consuming better, is no market. The remedy for such but also by working under better situations is to shift to other more conditions. . . . A unique feature profitable forms of production. of our economic growth has been One of the considerations that the broad sharing of progress makes comparisons between Amer- among all groups. We represent ican and Soviet growth rates so the nearest approach to a classless misleading as to be downright fu- ‘society.” tile is the very different levels of output on which the economies Healthy Growth are operating. For instance, Growth is healthy when it re- United States output of passenger sponds to genuine demand and cars is about 6 million a year, as satisfies human needs. It is un- compared with about 100,000 in healthy and deceptive when it is the Soviet Union. So a Soviet undertaken by the fiat of state “growth” of 100 per cent would planners or when it receives the be the equivalent of an American narcotic stimulus of currency in- growth of less than 2 per cent. flation, which robs the people of Other factors that should make their savings and leads in the end for a fairly high Soviet growth to far worse difficulties than those rate and that do not apply to the against which it is sometimes mis- United States may be noted. Hav- takenly invoked as a quack ing stinted their people in. con- remedy. sumer goods for four decades, the ===== PAGE 21 ===== 1960 ECONOMIC GROWTH : REALITY AND MIRAGE 19 Soviet government has no reason Political Barriers to Progress to fear saturated needs of such There are measures which would goods. Masses of Russians are be- be calculated to increase growth, ing transferred from agriculture, but these measures are not polit- with its low productivity, to in- ically popular. It is a matter of dustry, with its higher value of common observation that the coun- output. The Soviet Union is able tries which “plow back” large to take advantage of technology shares of output into investment that has been developed in other have the fastest rate of growth. countries. As Mr. Wallis puts it: Germany is a good example of a “In other words, Russian country that is investing much growth is more rapid because they and growing fast, while Great are still in the area where im- Britain shows the opposite trend provement is easy and the way. in both respects. The American has been shown, whereas we are practice of high graduated direct more heavily involved in the dif- income taxation is not favorable ficult tasks of expanding produc- to growth, because it siphons off tivity in medicine, journalism, for federal, state, and local gov- education, engineering, and other ernment needs much of the capi- services. There is mo possibility tal that would otherwise be avail- that the Russian economy will able for reinvestment. overtake ours at any time in the The huge annual expenditure on visible future, certainly not in this subsidies and storage charges for century.” (Italics supplied) the supposed benefit of the farm- Much of the oratory of those ers is an example of misdirection who are concerned with increas- of financial resources. If this ing the American rate of economic whole fantastic program for the growth contains more heat than taxation of the whole community light, more insistence on the end for the benefit of one section than specific consideration of the were swept away, the big farmers means. Insofar as recommenda- who get most of the subsidies tions in this field are more or less would still be able to make a profit, specific, they tend to run to more of the marginal farmers “pump-priming” or inflationary would go into manufacturing and devices, to be counteracted by service industries, and large sums price and wage controls. The of money which are now simply whole recipe seems calculated to wasted would be available for fi- sound the deathknell of a free nancing new expansion projects. economy. Still another aid to growth ===== PAGE 22 ===== 20 THE FREEMAN December would be the maintenance of a nomic miracle,” says in his stimu- reasonable relationship between lating little book, The Cost of wage increases and improvement Freedom: : in productivity. It is the countries “If we were prepared to restrict where the trade unions have been the consumer, control prices, most restrained and moderate in wages, materials, and manpower, their demands, Germany and and if nothing counted but an in- Switzerland, which show the best crease in output — with the gov- results in booming foreign trade ernment as the principal customer and full employment. — we might generate growth enough to outgrow the Russians. “Cures” that Kill Our economy would also have be- But, since economically sound come so like theirs, however, that moves are not believed to possess the meaning of the competition the greatest appeal to voter pres- would have vanished.” (Italics sup- sure groups, the danger is that plied) any legislation designed to pro- Mr. Wallich goes on to point out mote growth may be framed along that only a dictatorship could op- the wrong lines. It might more or erate a centrally controlled econ- less without conscious intention omy, run with ruthless disregard and desire carry us back to a war of the consumer — a perfect defini- economy where price control tem- tion, incidentally, of the Soviet porarily and partially offset infla- economy. tion and the shortages and im- balances in the market were sup- In short, economic growth that pressed by rationing of consumers is the result of individual invest- and controls over manpower and ment and normal market demand materials. This war economy is al- is both healthy and, if one may most indistinguishable from the judge from past historical experi- Soviet normal peace economy; and ence, quite assured. Efforts to this goes far to explain such So- force growth by government ac- viet progress, lopsided and unbal- tion unrelated to real consumer anced though it is, as has actually needs and to the volume of genu- taken place. As Henry C. Wallich, ine savings must be viewed with Yale economist, member of the considerable suspicion and mis- President’s Council of Economic giving, as pointing to the intro- Advisers, and author of one of the duction of permanent state con- best analyses of the German “eco- trols and creeping socialism. PN ===== PAGE 23 ===== THE NEW FRONTIERSMEN or — PIONEERING FOR THE AFFLUENT SOCIETY It was a chilly afternoon At story-telling time. Old Kaspar turned his collar up And spiked his rum-and-lime. While Peterkin and Wilhelmine Warmed up the metaphoric screen. They saw a path that stretched away Across the hills and plains, Where men with burdens on their backs, And many wrapped in chains, Were plodding silently along Without a spoken word or song. “Is that a gang of foreign slaves?” Cried little Peterkin. “They're builders of the New Frontier,” Said Kaspar with a grin. “They’re off to scale the distant heights And pioneer unknown delights.” “Those men in chains,” said Wilhelmine, “They don’t look very spry.” “Those chains are union working rules To keep employment high. A man unchained might go astray And work enough to earn his pay.” “What’s in the loads,” asked Peterkin, “They carry on their backs?” “It’s shares of mounting public debt And soaring payroll tax. They've fallen heir to all the weight Of paying for the Welfare State.” “Will they get rich,” asked Wilhelmine, “Upon the New Frontier?” “The chance for that,” Old Kaspar said, “Gets smaller every year. The Planners hold that private wealth Is bad for economic health.” H. P. B. JENKINS Economist at Fayetteville, Arkansas 21 ===== PAGE 24 ===== The United Nations: PEACE or Fi, PERIL? DARRYL W. JOHNSON, JR. A. Devaney, Inc. THE FACTOR of communism in the Lie, in his book, In the Cause of United Nations is of major im- Peace, describes the deal made by portance and cannot be ignored. Hiss and Molotov whereby the Time magazine referred to Leo Chairman of the UN Security Pasvolsky, a Czarist Russian, as Council (the oft-called “military the “architect of the UN Char- head” of the UN) will always be ter.””! Alger Hiss, top Communist a Communist. in the State Department, was the Dr. Anthony Bouscaren, as first Secretary General of the UN chairman of the Department of and Director of the office which Political Science, Marquette Uni- initiated American policy on UN versity, pointed out that during questions and serviced the Ameri- the Korean War, “more UN mem- can delegation to the UN.? Trygve bers helped the communist enemy —_— than helped the Republic of 1 Time, May 18, 1953. Korea.””3 2 Report: “Interlocking Subversion in The United Nations Security curity Subcommittee. 1853) p.'s. This re. Council resolution of July 7, 1950, port also lists other top Communists in (United Nations Document S/ the UN and in the U.S. State Department 1588) requested the United States and shows the remarkable extent of their . . . influence. to provide the Security Council 3 4" 3 M 1 . Mr. Johnson is a teacher at Hialeah Senior , Speeches, Findings and Resolutions: High School in Florida. Congress of Freedom. Inc.” 1955, p, 99. 22 ===== PAGE 25 ===== 1960 THE UNITED NATIONS: PEACE OR PERIL? 23 with reports on the course of ac- and UN history, communism in tion taken under the unified com- the UN is not a necessary factor mand, a request with which the in condemnation of the UN ap- United States complied. proach to peace. The UN would No wonder General Stratemeyer be just as bad if the charter had could say, “We were required to been written by George Washing- lose the Korean War.”4 ton, although it would have been No wonder Professor Salvador impossible for Washington to de Madariaga could state that have written anything differing “the UN Organization bore upon so violently with the United its brow from the very beginning States Constitution, both as to the mark of Moscow.”? letter and as to spirit.® The last part of an editorial in Any student of the history of the Los Angeles Evening Herald liberty and the rule of law will Express of January 9, 1954, sums not need detailed discussion to con- it up nicely: “Stalin first ap- vince him that the UN way is the pointed Arkady Sobolev [to UN wrong way — he will feel it in his Security Council] who demanded bones. the firing of MacArthur. He was succeeded by Konstantin Zinchenko, Scholarly Views who chose a notorious Red espion- Detailed discussion is provided, age agent for his first assistant. however, in two new books: The Last July [1953] the post was Humane Economy by Professor given to Ilya Chernyshev, another Wilhelm Roepke, published with Red. MacArthur and Van Fleet the assistance of the Institute for had to confide their plans to these Philosophical and Historical Stud- Reds. That's why we lost the ies,” and The Constitution of Lib- Korean War. That’s why our cas- erty by Dr. Friedrich A. Hayek ualties were the highest per of the University of Chicago.® month of any war in American Neither of these books is directly history.” concerned with the United Na- But while the Korean War was tions, but rather with problems a great tragedy, both in American of freedom and government in - . } general. As such, however, certain 4 Hearings, “Interlocking Subversion in Government Departments” (Internal 8 For an exposition of these differences, Security Subcommittee, 1954) Parts 21- consult The United Nations by Dr. Orval 27, which include testimony of Strate- Watts. New York: Devin-Adair Co., 1955. meyer, Van Fleet, Clark, Almond, and 7 Chicago: Henry Regnery Company, Joy. 1960. 5 Victors Beware, London, 1946. p. 270, 8 University of Chicago Press, 1960. ===== PAGE 26 ===== 24 THE FREEMAN December passages are indeed pertinent, and solution to many of the world’s indicate that the UN was much in problems, yet this is the only solu- mind when they were written. tion consistent with a regard for individual differences and with - The Case for Decentralization the fact of America’s unique suc- Roepke sees today’s key ideo- cess in this area. logical struggle as one between Hayek, who develops his points “centrism and decentrism,” and beautifully, classifies the ‘‘inabil- contrasts those who are attracted ity to conceive of an effective co- toward collectivity (centrists) ordination of human activities with those who are attracted to without deliberate organization the members which compose it by a commanding intelligence” as (decentrists). “The former,” says part of the “opposition to a sys- Roepke, “look at the structure of tem of freedom under general society from the top downwards, laws. ...” Yet how frequently we the latter from the bottom up- find people who cannot visualize wards. The first seek security, any way toward peaceful organ- happiness, and fulfillment in the ization except the UN way! Hayek subordination of the individual makes his point clear in the second and the small group to a deliber- chapter: “To turn the whole of ately and strictly organized com- society into a single organization munity, which, from this point built and directed according to a of view, is all the more attractive single plan would be to extinguish the larger it is; the others seek the very forces that shaped the these benefits in the independence individual human minds that and autonomy of the individual planned it. . . . We are not far and the small group.” Roepke de- from the point where the deliber- velops and defends the decentrist ately organized forces of society approach. He spends considerable may destroy those spontaneous time showing the necessary paral- forces which have made advance lel between all “centralized” ap- possible.” proaches to peace and socialism; and, in a specific reference to the The Rule of Law direction the UN is taking, states Nowhere has the principle of that “the shining peak in the dis- the rule of law been so highly de- tance is the international welfare veloped as in the United States state . ..” under the Constitution. To pre- It is unusual to find someone serve that principle here in the advocating DEcentralization as a United States is a tough job, but ===== PAGE 27 ===== 1960 THE UNITED NATIONS: PEACE OR PERIL? 25 the attempt to establish it in the nation its principles concerning UN is sheer folly. The Charter, the rule of law. following the Russian pattern, con- The entire “from the top down” cerns itself with many liberties. approach to law is wrong. In a Yet, as Hayek points out, freedom note to chapter ten Hayek quotes is indivisible, and “liberties” ap- from an American Bar Associa- pear only when “liberty” is lack- tion Report of 1890: “Law is not ing. “Constitutionalism,” he says, a body of commands imposed upon “means that all power rests on the society from without, either by understanding that it will be exer- an individual sovereign or supe- cised according to commonly ac- rior; or by a sovereign body con- cepted principles. The rule of law stituted by representatives of so- is therefore not a rule of the law, ciety itself. It exists at all times but a rule concerning what the as one of the elements of society law ought to be, a meta-legal doe- springing directly from habit and trine or a political ideal. . . . the custom. It is therefore the uncon- ideal of the rule of law presup- scious creation of society, or in poses a very definite conception of other words, a growth.” “It is,” what is meant by law.” as Hayek says, “the acceptance Is there anything more incon- of common principles that makes gruous than communist and so- a collection of people a commun- cialist nations which, as Hayek ity. ... If people were not at most documents, have always denied the times led by some system of com- rule of law, sitting down with the mon ideas, neither a coherent pol- United States and other Western icy nor even real discussion about powers to form the rule of law? particular issues would be pos- As the sharpest of contrasts to sible.” the Constitutional concept where- by everything is permitted which Nothing in Common "is not specifically prohibited What “coherent policy” may be Hayek poses the Russian concept ascribed to the UN? How much which “represents an attempt to ‘real discussion” goes on? Is it found the state on principles not obvious that there must be which are the very opposite of unity of basic ideals before physi- those of the rule of law,” and cal “togetherness” in the UN can where “everything is prohibited be anything but hypocrisy? (A which is not specially permitted.” delegate from an African “nation,” The United States can ill afford who may barely understand the to compromise with any other word government, has an equal ===== PAGE 28 ===== 26 THE FREEMAN December voice with the U.S. delegate. And, kind is a problem in the exercise as the General Assembly is pres- of responsibility, about which ently constituted, delegates repre- Hayek states, “Freedom demands senting 5 per cent of the earth’s that the responsibility of the indi- population can carry the day vidual extend only to what he can against the other 95 per cent.) Isit be presumed to judge. . .. Respon- not obvious that the United States sibility, to be effective, must be in- and the free world gain nothing dividual responsibility. In a free by their verbal victories over the society there cannot be any collec- communist bloc in the UN dream tive responsibility. . . . As every- world when, in the meantime, the body’s property in effect is no- Communists are permitted to se- body’s property, so everybody's cure victories of a more concrete responsibility is nobody’s responsi- nature in the world of reality?® bility. . . . we cannot expect the It may be that the UN focuses sense of responsibility for the the “burning fire of world opin- known and familiar to be replaced ion” on wrong doers, but what by a similar feeling about the re- good did this “burning fire” do mote and the theoretically known.” for the people of Czechoslovakia, Perhaps now we can understand Rumania, Bulgaria, Hungary, or former UN Assembly president Tibet? Madame Vijaya Lakshmi Pandit’s Exchange of technological in- remarks concerning the UN Char- formation, emergency relief for ter: “We don’t cry at the Charter starving children, and the like, any more — we laugh at it. It has have all been provided long before been interpreted, misinterpreted, the UN came into existence; and and explained. It is the one thing private aid continues to this day. all of us can hide behind when we The UN and “government to gov- do not want to fulfill our obliga- ernment” approaches merely tend tions, and that is not the way to to subsidize socialism, as they pro- peace.”!® Thus the debilitating mote, not internationalism, but philosophy of “Let George do it” intergovernmentalism. But the has given way on an international main point is that aid of this scale to “Let the UN doit.” 9 Walter Lippman recognized this in “’Distributive Justice’ the Miami Herald, August 28, 1960, when his editorial stated: “Those who regard The United Nations’ concern the problem of standing up to the Rus- ——m— sians as standing up to them in debate 10 Bromfield, Louis. A New Pattern for do not understand the problem of stand- a Tired World. New York: Harper & ing up to the Russians.” Bros., 1954. p. 247. ===== PAGE 29 ===== 1960 THE UNITED NATIONS: PEACE OR PERIL? 27 with “distributive justice” and plays an important part in the ad- “underprivileged nations” is in- vance of civilization. Hayek states, teresting. “Distributive justice,” ‘There can be little doubt that the says Hayek, “requires an alloca- prospect of the poorer, ‘undevel- tion of all resources by a central oped’ countries reaching the pres- authority; it requires that people ent level of the West is very much be told what to do and what ends better than it would have been, to serve.” And Roepke reminds us had the West not pulled so far that “what is given to the one ahead. Furthermore, it is better must be taken from the others, than it would have been, had some and whenever we say that the world authority, in the course of state is to help us, we are laying the rise of modern civilization, a claim to somebody else’s money, seen to it that no part pulled too his earnings or his savings.” far ahead of the rest and made If a nation wishes to acquire sure at each step that the material the capital necessary for raising benefits were distributed evenly its standard of living, it may throughout the world.” Surely either tighten its own belt or this is telling commentary on adopt antisocialist governmental many of the UN objectives. policies which will attract foreign capital. Unfortunately, as Roepke A lack of Purpose states, most nations are unwilling The fine books herein quoted to do either one. They have in are but two of a vast number mind “not the legitimate but the available which paint a picture of unlawful and revolutionary as- peace and progress through vol- pects” of equalization. “The idea,” untarism, not compulsion; through says Roepke, “is tempting and as DEcentralization, not centraliza- such is by no means new. We met tion — and they show that, in fact, it twenty or thirty years ago in peace cannot be achieved any other the Fascist and Nazi catchwords way. Peace and progress are built of the haves and the have-nots. from the bottom -up —not from We remember the violence with the top down. Yet the scope of ac- which Mussolini launched what he tivity under the present UN called the class struggle of the Charter is monolithic and practi- proletarian peoples against the cally infinite. It is not power, but satisfied and possessing peoples, purpose which the UN lacks. and the Nazis demanded living How the UN can grow in power space for themselves.” while its charter remains the Furthermore, inequality itself same is a long subject for another ===== PAGE 30 ===== 28 THE FREEMAN December time, but it is significant that have the following: December 21, Russia has voted for the new 1955-1947 to 1955—World War powers given to Mr. Hammarsk- III, Russian Style. Who is win- jold. With the large number of ning? Russians have been waging new nations admitted and sched- war against the West for nearly uled for admission to the UN, ten years. They were winning four Russia’s power will grow. Need- years ago, are doing even better less to say, no communist nation now. Immense areas of the world has ever accepted the compulsory have fallen under Soviet control. jurisdiction of the International Other areas, vital to noncommu- Court, either with or without nist world, are tottering. All of reservation, although it is con- this has been accomplished with- ceivable that the number of com- out the Soviet Army’s firing a munist judges will increase suf- shot. Yet it is a real war. It is ficiently, in time, to make this pos- World War III, Russian style.” sible. June 15, 1956 — “Here Is What Politics and peace just don’t Reds Have Done To Violate Armis- mix, and the UN is the most polit- tice In Korea.” October 3, 1958 — ical of all possible organizations. “Today's War — How The Reds The political character of the UN Are Operating In 72 Countries.” is something of which Mr. Ham- To emphasize the hypocrisy of marskjold is well aware.ll the UN, remember that the ) Charter solemnly states: “All We Are at War members shall refrain in their in- One possible way to peace might ternational relations from the be to win the war. This indeed in- threat or use of force against the volves acceptance of the fact that territorial integrity or political we are in a war, but it would be independence of any member hard to find more evidence of this state, or in any other manner in- fact than that already available. consistent with the purposes of Just browse through some old, or the United Nations.” When will recent, copies of Life, Time, News- people stop evaluating the UN on week, or U. S. News & World Re- the basis of its principles and port, noting merely headlines and start evaluating it on the basis of subheadlines. For instance, from how well it is suited to realize U. S. News and World Report, we those principles? —_ . How can anyone say the UN is 1 « sold: Travel » Nationel Review, Aug. 37. 1960, the way to peace? Since the UN p. 109. was founded the Communists have ===== PAGE 31 ===== 1960 THE UNITED NATIONS: PEACE OR PERIL? 29 made satellites of Czechoslovakia, guarantee that peace will be pre- Hungary, Rumania, and Bulgaria, served, or even that peace will be and have precipitated the follow- an objective. This is not to rec- ing major wars, which they either ommend unilateral disarmament won and established control, or (or atomic test bans), which is utilized to secure important foot- suicidal, but rather to state the holds: Indonesian War, Chinese obvious fact that a nation must Civil War, Malayan War, Philip- know what it is for as well as what pine Civil War, Indochina War, it is against. Greek Guerilla War, Korean War, When the Kaiser waged war, Guatemalan Revolt, Algerian War, we whipped him. But it did not Hungarian Suppression, Formosa bring peace. When Hitler waged Straight Conflict, Indonesian Civ- war, we whipped him. But it did il War, Cuban Civil War, and not bring peace. Now Khrushchev Tibetan Revolt.12 is waging war, and we sit down The list of minor conflicts is too with him at the conference table lengthy to present, and it grows and give him nine votes to our every day. To date, Russia has one.l* This, of course, is not bring- shot down twelve American planes, ing peace either. ‘ practically all over international waters, with a loss of 67 American Peace Begins at Home lives.!3 One wonders how bad Is it not possible that the UN’s things can get before we face the lack of purpose is but a reflection facts and stop hamstringing our- of the lack of purpose of the na- selves in UN debate. How can the tions which comprise it? It is in- world follow God and act toward deed true that we may be unable peace when such action is subject to purge the world of communism to veto by an atheist power bent until we purge ourselves of com- upon world domination? The ob- munism and Communists here in jective of checking the communist the United States. But it is equally advance can never be, and has not important and far more basic to been, carried out under the United purge ourselves as individuals of Nations. collectivist tendencies generally. Winning a war, however, is no International disorganization is "12 Consult Protracted Conflict. New but an outgrowth of personal dis- York: Harper & Bros., 1959. Released by organization. Peace is not built the Foreign Policy Research Institute of from the top down but from the the University of Pennsylvania, 13 U.S. News & World Report, July 25, ———— 1960. 14 Including six satellites. ===== PAGE 32 ===== 30 THE FREEMAN December bottom up. The beauty of decen- To this end we must learn to tralized government, as an ap- avoid the inherent immorality and proach to peace and harmony gen- antagonism of socialism and col- erally, lies in its emphasis upon lectivism generally. Collectivism the inescapable fact that “society” cannot be checked abroad while it never improves along any lines is embraced at home. We must except as individuals improve. We learn more of the inherent morality have all heard that “charity begins and harmony of the free market. at home,” and this is equally true We must learn more of the spiri- of peace. tual bases of liberty and their ex- Through this approach a man pression in the United States Con- tends not to the affairs of distant stitution. millions, which are beyond him, but to his own affairs, which are There are two quotations perti- within his powers; he aids not the pent to this end, the first by G. K. unknown masses, but his neighbor Chesterton and the second by in need next door; he attempts not Emerson: to govern the world, but to gov- “Christianity has not been tried ern himself and his local com- and found wanting; it has been munity — for the man who can found difficult and not tried.” govern the world does not exist. “Nothing can bring you peace This approach conflicts with but yourself. Nothing can bring much that is said today about the peace bu: the triumph of prin- necessity of assuming our “world- ciples.” wide” responsibilities. The answer We, as a country, must learn is that the only way for the what we are for. And when I say “world” to assume “its” respon- ‘as a country,” I includz you, and sibilities is for each individual to me. assume his responsibilities. There is no other way.1% veloped by Mr. Lipscomb in an article JE entitled “How to Win a War” in THE 15 This whole topic is beautifully de- FREEMAN, August, 1960. The Personal Practice of Freedom FREEDOM RESTS, and always will, on individual responsibility, indi- vidual integrity, individual effort, individual courage, and indi- vidual religious faith. It does not rest in Washington. It rests with you and me. ED LIPSCOMB ===== PAGE 33 ===== rar Edi, mine GEORGE D. SCARSETH TODAY we can overcome gravity, The solutions start with every make stars in the spaces of the person. universe, create energy out of a The time for man to awaken to grain of sand, cure tuberculosis, his own dormant potentials is prevent polio, breed cows from now. This refers not to someone dead bulls, see beyond the clouds, else, to any special social, indus- use hormones to make a male or trial, or political group, but to female out of a fertilized egg, you and to me as individuals. We cause insects to destroy their own are the cells that make up the race, drop a bomb on a target on whole body of man’s institutions. the other side of the world, speak - Each of us carries in his blood- into a box and be heard and seen stream of inheritance, the genes by billions, control the evolution of the great and of the misguided. of a superior seed, improve soils We can call on our good genes to by using them, cover the earth help us grow, and work to cover with food — and so on and on, with the bad ones. each day bringing forth new The common man is common magic. Miracles have become com- only when he sleeps. When he is monplace. awake he can observe and learn. Tomorrow, we cover the earth The big difference between people with more people, more masses of is what they do with their time a creature who can become a when awake. This becomes the key master of his emotions and his to every person’s tomorrow. destiny or a slave to his stupidity. The most extraordinary phe- The stakes are high. The issues nomenon of creation is growth. are a matter of happiness or woe. Our physical growth is largely a _— matter of inheritance and influ- Dr. Scarseth is Director of Research, American enced by environment. We grow to Farm Research Association, West Lafayette, Indiana. This article is from an address of become Homo sapiens (man), zea July 15, 1960 to the Annual Research Con- J . ference at Michigan State University. mays (corn), or a million different 31 ===== PAGE 34 ===== 32 THE FREEMAN December species of growing physiological son. It should be an inspiration types by the background of genet- that all growth starts infinitely ics. All these physical growth small features have a definite termina- At no stage in a life need we tion. The growth stops at a certain despair and say, “I'm too old to stage and the species is said to learn, to grow, to be more than I be mature. now am.” The choice is truly one Man is the one creature en- of your own making. Nobody is a dowed above all other species to worse enemy of yours than your- be given the extraordinary ca- self. You are the one who signs pacity to grow in intellect and in your own death warrant in the that indefinable quality we call growth of your character and character and regard for his your services to mankind as an neighbor. important person. In man’s highest ideal there is Some 300 years ago, John even room for the Golden Rule, Milton was turning blind, and he common to most religions, or to cried out in despair that his life love every man as oneself, even was half spent and he was be- to love and forgive an enemy. coming blind before he had served The growth of the cultural at- his God. Then patience whis- tributes of man has no terminal pered, “God does not need either point. There is no one stage in man’s work or his own gifts.” Yet, man’s life where the growth of it was this burden on Milton that his intellectual, cultural, or spirit- caused him to do all his thinking ual life is stopped except by his and writing and to become an im- own indifference, apathy, love of mortal inspiration to all who “best the easy moment, diversion of his bear their mild yoke as they serve time by fruitless interests, and, Him best.” too often, by living in an environ- The remarkable part about ment where little or no high value growth in all life species is that is placed upon inspiring people to when physical maturity is reached, improve themselves. a cycle is finished. This is not true of man’s spiritual qualities — Never Too Late To Grow in Yalues here growth has no end. The cheerful note in this at- But this is today — the age of tempted analysis of ourselves is things, things to make life easier that no one of us, not the least of and longer. We can make more us, has a bottleneck on his oppor- things than we can consume. We tunity to grow as a worthy per- chase happiness by going into ===== PAGE 35 ===== 1960 THAT EXTRA MILE 33 debt personally and as a nation, up the system which made it pos- seeking to find happiness in hav- sible to earn what this requires. ing more things. But these material things came As Dorothy Thompson said by the simple rule of going an (Ladies Home Journal, June extra mile where only one mile was 1960) our “sole aim of life be- asked. This included going comes personal security, personal through much so-called swampy pleasure, personal success, per- land before the dry ground and sonal self-indulgence.” the hilltop were reached. These But all these self-seeking goals swamps were often disheartening, are not the ingredients which but with perseverance, sincerity, made America the miracle it is. attention to duty, with an extra measure frequently thrown in, the That Extra Mile Has Rewards land became firmer, and so did Many made sacrifices as indi- the spirit. viduals along the path of our his- Two distasteful dishes fre- tory in a response to duty beyond quently became the fare. One was call. Many gave all in the dramas to “eat crow’ to correct an error of wars to keep us a free people. so as to be right, and the other In the humdrum of daily life no was to forget one’s own self-im- great issue calls us to go the extra portance and not take oneself too mile. We look at those who “get seriously. These dishes have a way more” than ourselves. We seldom of improving in flavor after a bit look the other way to see that of experience. most people, even to a billion or Out of all these material gains more, have less and not even a none compares to the greater gain chance to better tiemselves. in finding that life is more than I live in a beautiful house which the bread and bed. This is what is my own home and sleep under America stands for. There was an electric blanket when it’s cold, much reward outside of material and cool my house with another gain in the pioneer life of our electrical something when it’s too forefathers. To be a good neigh- hot. About 40 or more electrical bor was rewarding. To be a re- motors (counting those in the sponsible citizen brought recogni- clocks) are my servants. We have tion. The secret of our very suc- a spare bedroom for guests in cessful youth agencies such as the case you come to visit us. Boy Scouts, the 4-H Clubs, the None of this is free, and you Future Farmers, and similar or- can have all of it before I'll give ganizations may be that they rec- ===== PAGE 36 ===== 34 THE FREEMAN December ognize the worthiness of any every task beyond the call of duty, achievement or the extra mile of not just for a state or organiza- any individual. tion or institution or company, In a government-controlled sys- but for much more than these: — tem much of this may be lost, for the dignity of man and his because why go an extra mile chance to be worthy of being free when some get rewards just be- to choose. cause they exist as numbers? This is why we do not want a system The reward for the extra miles of government where the State may come in promotions and in- NEN and | its agents make the rules, But creased pay, but more.than- such to avoid such an order for the remunerations will be the com- masses, we must each of us be- pensation that will come out of the come individuals who make it a growing inward satisfaction and part of our character to go the the respect and love of our neigh- extra mile on every road and do bors. These gains must be earned. 1860-1954 EDMUND A. OPITZ THE LIFE of William Ralph Inge, ual life of England. His first ma- late “gloomy dean” of St. Paul’s jor work appeared in 1899, the Cathedral, spanned ninety-four Bampton Lectures, published as years of the past one hundred. He Christian Mysticism. Fifty-four died in 1954, twenty years after years later Inge was asked to re- retiring from the post known as vise his book, England, and write the scholar’s pulpit in the Church a new preface for the third edi- of England. For more than half tion. He accepted the assignment, a century Inge was a leading fig- writing to Sir Ernest Benn, the ure in the intellectual and spirit- publisher, “1 am very feeble, at ‘92, but I hope not quite imbecile.” The Reverend Mr. Opitz is a member of the Indeed he was not, as his brilliant taff of the F dation for Economic Educa- tion. © Foundation for Hconom ten thousand word essay proved. ===== PAGE 37 ===== 1960 WILLIAM RALPH INGE 35 In the same year he contributed a party or movement. In religion, in foreword to Advance to Barbarism philosophy, and in politics he be- by F. J. P. Veale, a sobering ac- longed to schools sanctioned by count of modern civilization’s the great tradition, but increas- lurch toward savagery in World ingly repudiated in the twentieth War II and its aftermath. century. He was out of step with Between his first published work his times, but it was only because and his last this somber figure he heard the rhythm of a more produced a steady succession of distant music. Dedicated to the books, essays, lectures, and ser- truth, he was a lifelong witness mons. He earned the grudging re- on behalf “of lost causes, and for- spect accorded men of the cloth by saken beliefs, and unpopular the academic community for works names, and impossible loyalties” — of monumental scholarship — such to borrow Arnold’s words about as his definitive two-volume ac- Oxford. How many scientific the- count of The Philosophy of Plo- ories espoused during this century tinus, the Gifford Lectures of 1917- are now extinct! How few schemes 18 — and he reached a general au- of political and economic recon- dience as well. During the twenties struction have survived this turbu- he invaded the field of journalism lent era! Numerous philosophies with weekly newspaper articles have had their short vogue and which made his name and face are no more. But Inge’s writings familiar to the man in the street. have a curiously contemporary He had something tc say on a va- ring. They are not dated. riety of subjects, and was gifted . The world and Inge were headed with a superb literary style — in different directions and the clear, caustic, and witty. His news- breach between the two widened paper pieces were collected in four with the years. The tides of un- books which even now may be read reason and insanity all but blotted with pleasure. out the landmarks he had laid But despite Inge’s involvement down. By the time of his death, in the intellectual, religious, and Inge had pretty much outlived his literary currents of the past fifty popular reputation, and the memo- years, he was never completely at rial service at St. Paul's was at- home in any of them. He was too tended mostly by elderly people, much his own man — and God’s — friends of earlier days. ever to become a popular figure, Inge was, by temperament, a and he possessed too much reserve shy scholar, inheriting from his to become the champion of any mother’s people, he wrote, ‘“the ===== PAGE 38 ===== 36 THE FREEMAN December faculty of being silent in several Inge was a stanch Christian languages.” But the deanship was Platonist at a time when his fel- thrust upon him in 1911 and he low philosophers were turning became a reluctant public figure. from idealism to pragmatism to He was a high ranking ecclesi- positivism to existentialism or astic, but no organization man. whatever. His fellow theologians “Christ came among his country- were trying to recover a purer men as a layman,” he wrote, Biblical religion by eliminating “preaching a lay religion.” Re- the Greek elements from Chris- ligion is not, in its essence, church- tianity, while Inge, a master in going, philanthropy, or ritual — Greek studies, stoutly maintained important as these things are — that “the Christian Church was but “the thirst for God, and its the last great creative achieve- satisfaction.” Some of Inge’s con- ment of classical culture.” People temporaries interpreted “lay re- who appreciated Inge’s high re- ligion” to mean Christian Social- gard for mysticism and the inner ism. Not Inge, who fought a life- life were dismayed by his equal long battle on this front, scoring concern for the historic faith and Christian Socialists as “black- the institutions of religion. He de- coated advocates of spoliation.” fended reason in religion and in This did not mean, however, that life, but his defense pleased nei- he urged a turning away from life ther the simple rationalists nor and its concerns in order to find those who put private revelations God. Christian Ethics and Modern or feelings ahead of thinking. Problems is one of his major Inge was, in short, a man who fit works. It is the fruit of a lifetime none of the usual categories. He of effort to apply religious in- was that rare kind of rebel who sights to the everyday perplexi- may exemplify, in his rebellion, ties which bedevil our age: war, the best and rarest qualities of a - unemployment, statism, and so on. nation or a religion. > Henri-Frederic Amiel IF LIBERTY is to be saved, it will not be by the doubters, the men of science, or the materialists; it will be by religious convictions, by the faith of individuals who believe that God wills man to be free but also pure. ===== PAGE 39 ===== 7 WE | The Power of | COUNT LEO N. ToLSTOY THE POWER of the government is maintained by public opinion, and with this power the government, by means of its organs — its offi- cials, law courts, schools, churches, even the press — can always main- tain the public opinion which they need. Public opinion produces the power, and the power produces public opinion. And there appears to be no escape from this position. Nor indeed would there be, if public opinion were something fixed, unchangeable, and govern- ments were able to manufacture the public opinion they needed. But, fortunately, such is not the case; the public opinion is not, to begin with, permanent, unchange- able, stationary; but, on the con- trary, is constantly changing, mov- ing with the advance of humanity; and public opinion not only can- not be produced at will by a gov- ernment but is that which pro- duces governments and gives them power, or deprives them of it.... These passages are selected from Count Tol- stoy’s essay on Patriotism and Christianity writ- ten in 1894. No feats of heroism are needed to achieve the greatest and most important changes in the existence of humanity; neither the arma- ment of millions of soldiers, nor the construction of new roads and machines, nor the arrangement of exhibitions, nor the organization of workmen's unions, nor revolu- tions, nor barricades, nor explo- sions, nor the perfection of aerial navigation; but a change in public opinion. And to accomplish this change no exertions of the mind are needed, nor the refutation of any- thing in existence, nor the inven- tion of any extraordinary novelty; it is only needful that we should not succumb to the erroneous, al- ready defunct, public opinion of the past, which governments have induced artificially; it is only need- ful that each individual should say what he really feels or thinks, or at least that he should not say what he does not think. And if only a small body of the people were to do so at once, of their own accord, outworn public 37 ===== PAGE 40 ===== 38 THE FREEMAN December opinion would fall off us of itself, with whom he comes in contact, and a new, living, real opinion and from whom he would regard “would assert itself. And when pub- it as sinful to conceal the truth. lic opinion should thus have No milliards of rubles, no mil- changed without the slightest ef- lions of troops, no organization, fort, the internal condition of no wars or revolutions will pro- men’s lives which so torments duce what the simple expression of them would change likewise of its a free man may, on what he re- own accord. ... gards as just, independently of what exists or was instilled into Thought and Its Expression him. The governments know this, and One free man will say with truth tremble before this force, and what he thinks and feels amongst strive in every way they can to thousands of men who by their counteract or become possessed of acts and words attest exactly the it. opposite. It would seem that he They know that strength is not who sincerely expressed his in force, but in thought and in thought must remain alone, where- clear expression of it, and, there- as it generally happens that every- fore, they are more afraid of the one else, or the majority at least, expression of independent thought have been thinking and feeling than of armies; hence, they insti- the same- things but without ex- tute censorships, bribe the press, pressing them. and monopolize the control of re- And that which yesterday was ligion and of the schools. But the the novel opinion of one man, to- spiritual force which moves the day becomes the general opinion world eludes them; it is neither in of the majority. books nor in papers; it cannot be And as soon as this opinion is trapped, and is always free; it is established, immediately by im- in the depths of consciousness of perceptible degrees, but beyond mankind. The most powerful and power of frustration, the conduct untrammeled force of freedom is of mankind begins to alter. that which asserts itself in the Whereas at present, every man, soul of man when he is alone, and even if free, asks himself, “What in the sole presence of himself can I do alone against all this reflects on the facts of the uni- ocean of evil and deceit which verse, and then naturally com- overwhelms us? Why should I ex- municates his thoughts to wife, press my opinion? Why indeed brother, friends, with all those possess one? It is better not to re- ===== PAGE 41 ===== 1960 THE POWER OF TRUTH 39 flect on these misty and involved weapon which should assist him in questicns. Perhaps these contra- the struggle. It is as if a man, dictions are an inevitable condi- who was given a blade so marvel- tion of our existence. And why ously keen that it would sever any- should I struggle alone with all the thing, should use its edge for driv- evil in the world? Is it not better ing in nails.... to go with the stream which car- Let the government keep the ries me along? If anything can schools, Church, press, its mil- be done, it must be done not alone liards of money and millions of but in company with others.” armed men transformed into ma- And leaving the most powerful chines: all this apparently terrible of weapons — thought and its ex- organization of brute force is as pression — which move the world, nothing compared to the conscious- each man employs the weapon of ness of truth, which surges in the social activity, not noticing that soul of one man who knows the every social activity is based on power of truth, which is com- the very foundations against municated from him to a second which he is bound to fight, and and a third, as one candle lights that upon entering the social ac- an innumerable quantity of others. tivity which exists in our world The light needs only to be every man is obliged, if only in kindled, and, like wax in the face part, to deviate from the truth and of fire, this organization, which to make concessions which de- seems so powerful, will melt, and stroy the force of the powerful be consumed. > Education for Privacy WE ARE LIVING in a world and in a time when powerful leaders with millions of fanatical followers are committed to the forcible regimentation of their fellow men, according to formulas which have no initial authority but that of their own private dogma- tism. They not only refuse to recognize the right of private thought and personal conscience to be considered in the manage- ment of public affairs, but they have abolished the concept of the individual as a private personality and have reduced him to the level of the bee in the hive. To restore the individual to his former dignity as a human being is the urgent need of the day. MARTEN TEN HOOR ===== PAGE 42 ===== EQUALITY versus LIBERTY The Eternal Conflict R. CARTER PITTMAN < Mr. Pittman, an Attorney of Law, Dalton, Georgia, believes that the current emphasis upon “equality” is ° misconceived, in spite of many state- ments by responsible men that “equality” is a basic tenet of Ameri- can government. He argues that, by its very nature, “equality” is inimi- cal to “liberty,” and his research casts new light upon the eighteenth- century meaning of the Declaration of Independence’s statement that “all men are created equal.” 40 NO ONE questions the right of all men to equal justice under law, but propagandists have carried the doctrine beyond equality of rights to equality of things, and men are heard to proclaim human equality who would revolt at the suggestion that all birds, all fish, all cattle, all dogs, or all race horses are equal. Of course, all men are not created equal any more 80 than are all other mem- bers of the animal kingdom. Even if they are created equal, creation ends when life begins, and life is always unequal. Nevertheless, we are told over and over again and again that all men are equal, and the Declaration of Independence is cited as final authority. The Declaration of Independ- ence never became living law in America, and no provision of the federal Constitution or Bill of Rights can be traced to it; its in- fluence on state constitutions and bills of rights has been insignifi- cant. It was written to serve the temporary purposes of a sangui- nary conflict. It was and perhaps will ever be history’s most effec- tive piece of propaganda, but it neither grants nor protects hu- man rights. The first paragraph of the Dec- laration speaks of the necessity “for one people . .. to assume . the separate and equal station to which the laws of nature . . . en- ===== PAGE 43 ===== 1960 EQUALITY VERSUS LIBERTY 41 title them,” thus reaffirming the eighteen paragraphs and was re- separate and equal station doec- ported on May 27 and published in trine established by nature under Dixon's Virginia Gazette of June which all great people have pro- 1. It was published in Philadelphia gressed throughout history. Then newspapers on June 6, June 8, and follows, “all men are created June 12 of 1776. It was published equal,” equating ‘one people” and republished in newspapers with “all men” and “created” with and magazines all over America “laws of nature.” No one who and in England. helped to write it or who voted to Jefferson, to whom was as- adopt it ever asserted the doctrine signed the task of writing the pre- of human equality either before amble to the Declaration of Inde- or after July 4, 1776, but the pendence, took the first three Declaration of Independence, like paragraphs of Mason’s original the Constitution, has ‘taken on draft of the Virginia Declaration new meaning” by the application of Rights and rearranged and re- of “new philosophy” and “modern phrased them to make a Preamble authority.” for the Declaration of Independ- At about the time when Thomas ence. Jefferson, Benjamin Franklin, The preamble for the proposed John Adams, Robert Livingston, Virginia Declaration of Rights as and Robert Sherman were named published stated that it was “the as a committee to write the Dec- basis and foundation” of govern- laration of Independence, to ac- ment in Virginia. Its first para- cord with instructions from the graph was: Virginia Convention, which met in May 1776, George Mason’s Orig and independent and have certain in- inal draft of the Virginia Dec- herent natural Rights, of which they laration of Rights was a popular cannot, by any Compact, deprive, or subject of conversation in Phila- divest their Posterity; among which delphia and all over America. A are the Enjoyment of Life and Liber- draft of ten paragraphs of Ma- ty, with the Means of acquiring and son’s original was mailed to Rich- Possessing Property, and pursuing ard Henry Lee by T. L. Lee from and Obtaining Happiness and Safety. Williamsburg on May 25. It is The Virginia Convention, be- among the Mason Papers in the fore officially adopting Mason's Library of Congress at this time. original or the committee draft, The original was extended by Ma- changed the first paragraph to son into the committee draft in read: That all men are born equally free ===== PAGE 44 ===== 42 THE FREEMAN December That all Men are by Nature equally are equal” either at creation or in free and independent and have cer- life, On June 26, 1787, on the floor tain inherent Rights of which when of the convention Alexander Ham- ney enter into a pa of Society, ilton, the patron Saint of the Re- ey cannot, by any Lompact, deprive blican Part id: or divest their Posterity; namely, the publican Y, sa Enjoyment of Life and Liberty with Inequality will exist as long as lib- the Means of acquiring and possess- erty exists. It unavoidably results ing Property, and pursuing and ob- from that very liberty itself. taining Happiness and Safety. . . Apparently every mind in ‘the Jefferson never saw that ver- Convention assented, because not sion until he returned to Virginia a word may be found in all the long after the Declaration of In- Notes of Debates to indicate that dependence was adopted. Jeffer- any delegate believed in the doc- son’s rendition from the Mason trine of human equality in 1787. original was: So far as we have found, the That all men are created equal, that doctrine of human equality was ‘they are endowed by their Creator Not suggested by any one in the with certain unalienable Rights, that Pattle that raged over ratification among these are Life, Liberty and the and a bill of rights. Pursuit of Happiness. The Constitution proclaims in its preamble that it was estab- Equality Ends at Birth lished “to . . . insure domestic So the “basis and foundation” tranquility . . . and secure the of the first free government in blessings of liberty.” Nowhere America was equality of freedom does it hint a purpose to insure and independence, while the Jef- or impose equality of men or ferson perversion was equality at things. The due process clause of creation. The Declaration of Inde- the Fifth and Fourteenth Amend- pendence does not say that all men ments which render life, liberty, are equal. It says that they were and property immune from attack created equal. There equality except by the orderly processes ends. fixed by law, insure that American When the United States Consti- governments may not impose tution was under discussion at the equality. Philadelphia = Constitutional Con- vention in 1787 not one delegate Lincoln on Equality from any of the twelve states rep- In his famous Gettysburg Ad- resented suggested that “all men dress in 1863, Lincoln recited ===== PAGE 45 ===== 1960 EQUALITY VERSUS LIBERTY 43 from the Declaration of Inde- onstrated that he was not an pendence in this context: equalitarian. Speaking to a large group of Negro delegates in Fourscore and seven years ago our . , Washington, he said: fathers brought forth upon this con- tinent a new nation, conceived in liberty, and dedicated to the proposi- tion that all men are created equal. You and we are different races. We have between us a broader differ- ence than exists between almost any At the hour when Lincoln made other two races. that speech the Declaration of Whether it be right or wrong I need Rights of his home State of Il- not discuss; but this physical differ- linois proclaimed in the words of ence is a great disadvantage to us Georwe M both, as I think... eorge Mason: Even when you cease to be slaves, That all men are born equally free You are yet far removed from being and independent, and have certain in- Placed on an equality with white peo- herent and indefeasible rights, among Ple. On this broad continent not a which are those of enjoying and de- Single man of your race is made the fending life and liberty, and of ac- dual of a single man of ours. Go quiring, possessing, and protecting Where you are treated best, and the property and reputation, and of pur- ban is still upon you. I cannot alter suing their.own happiness. it if I would. ... See our present con- dition — the country engaged in war, Lincoln's task in 1863 was our white men cutting one another's much like Jefferson’s in 1776. throats, and then consider what we Equally they needed a phrase know to be the truth. But for your that would arrest the imagination race among us there would be no war, and stir emotions. When Lincoln although many men engaged on either recited from the Declaration few Side do not care for you one way or remembered the phrase. For near the other. It is better for us both, a century before 1863 it was sel- therefore, to be separated. dom mentioned. In 1863 as in 1776 it kindled a flame that spread. It aroused emotions of sympathy. That is the primary reason for and the most powerful result of propaganda. The maxim, “All is fair in love and war,” is not alone for Machiavelli. Only a year before, on August All men are by nature free and in- 14, 1862, President Lincoln dem- dependent, and have certain inalien- Views of the Supreme Court The Declaration of Rights of California, home state of Chief Justice Warren of the Supreme Court, is almost a verbatim copy of the official Virginia Declaration of Rights. It proclaims: ===== PAGE 46 ===== 44 THE FREEMAN December able rights, among which are those of man’s inherent right to equality enjoying and defending life and lib- of freedom and independence un- erty; acquiring, possessing and pro- der Jaw. tecting property; and pursuing and . obtaining safety and happiness. The Communist Kind of “Equality” No member of the Supreme The same concept of equality Court can find support for equali- before the law is expressed, some- tarianism in the fundamental laws times in the words of Mason, and of his home state. sometimes in the words of Aris- The constitutions of the various totle, and protected by safeguards, republics of the world to be found in more than seventy of the in three volumes of Peaslee’s Con- eighty-three constitutions edited stitutions of Nations reveal that by Peaslee in 1950. Only four con- the doctrine of human equality tain the concept of cultural, eco- has been universally rejected in nomic, or social equality that Myr- the constitutions of the noncom- dal found to be the ‘“American munist world. The constitutions creed.” Those four are Guatemala, of a few communist countries pro- the Mongol Peoples Republic, the claim the doctrine of human Ukrainian Soviet Socialist Repub- equality but none of the living lic, and the Union of Soviet So- constitutions of free republics, so cialist Republics. far as we have found, now pro- Mongolia puts it this way: claim or perpetuate that doctrine. “Equal rights in all spheres of the Thirty-one of the constitutions state, economic, cultural, and so- of the nations of the world contain ciopolitical.” Aristotle’s equality clause, as does Russia puts it this way: “Equal- Florida, to-wit: ity of rights of citizens of the U.S.S.R. irrespective of their na- tionality or race; in all spheres of For all men to be “equally free economic, government, cultural, and independent” they must be political and other public activity.” “equal before the law.” There is While Russia has partially suc- no such thing as freedom and in- ceeded in reducing most of her dependence under men. It exists people to the level of degradation under law or not at all. The Four- approaching cultural “equality,” teenth Amendment guaranty that she has been careful not to inter- no state shall deprive any citizen fere with the segregation prac- of “equal protection of the laws,” tices and racial mores of her peo- is but another way of expressing ple. Even Russian despots have Equal before the law. ===== PAGE 47 ===== 1960 EQUALITY VERSUS LIBERTY 45 more sense than to attempt a corpus-juris-tertius and “modern thing like that. authority” in the Supreme Court’s In the summer of 1955 Justice pseudo-socio-law, defined the Douglas and Robert F. Kennedy, “American creed,” on page 4 of his an attorney for a Senate Commit- book, as the “fundamental equality tee, toured Russia. Mr. Justice of all men.” On pages 4 and 9 he Douglas found something he unwittingly copied Hamilton to didn’t fully tell. Mr. Kennedy admit that liberty and equality spilled it in the New York Times cannot co-exist because, as he in- Magazine of Sunday, April 8, sists, there is an “inherent con- 1956. Here is a part: flict” between them and “equality . Co is slowly winning.” After defining In every city that we visited there the “American creed” as “the were two different school systems. fund tal lity of all ’ There was one set of schools for the undamenta equa Ity of all men, he says that its local children — those of a different color and race from the European tenets were written into the Decla- Russian children. State and collective ration of Independence, the preamble farms were operated by one group or of the Constitution, the Bill of the other, rarely by a mixture of Rights, and into the constitutions of both. the several states. The ideals of the Although work is supposedly being American creed have thus become the done to minimize the differences, highest law of the land. many of the cities we visited were He must have known that the still sp lit into two sections, with the ¢.4.ral Constitution and Bill of finer residential areas being reserved . . Rights and those of the states for the European Russians. European ) we were written ‘to secure the bless- Russians coming into the area receive | : . . a 30 per cent wage preferential over ings of liberty” and that neither local inhabitants doing the same jobs. Says a word about securing human The whole pattern of segregation and equality. discrimination was as pronounced in On pages 12 and 13 Myrdal this area as virtually anywhere else said: th in the world The worship of the Constitution... A distinguishing feature of is a most flagrant violation of the communism is that it never prac- American creed which is strongly op- tices what it preaches. It always Posed to stiff formulas. says one thing to distract atten- On page 18 Myrdal finds judges tion as it does another. and lawyers to be anathema to Karl Gunnar Myrdal, whose those indoctrinated with the book, American Dilemma, is now ‘American creed” saying: ===== PAGE 48 ===== -46 THE FREEMAN December . . . the judicial order is in many re- echoed all over France: “Every spects contrary to all their inclina- man a king!” The thought didn’t tions. occur to them that if all men are Naturally so because liberty may kings, then all might be peasants not exist without a constitution or slaves. sustained, as written, by an eman- The Declaration of Indepen- cipated judiciary selected for dence recites that its purpose was learning and honor. Equality may ‘‘to enable the states to levy war, be established only where the judi- conclude peace, contract alliances, ciary is so prostituted that it will establish commerce, and to do all undermine that which its mem- other acts and things which inde- bers take an oath to support. pendent states may of right do.” Those who wrote it and those who Why the Declaration © signed it knew that it was written Says “Created Equal” for the principal purpose of bring- Why did Thomas Jefferson, Ben- ing France into the Revolution on jamin Franklin, and John Adams, the side of America. The war had the subcommittee that drafted been going on for a full year. the Declaration of Independence, America was in an unequal strug- use a phrase so susceptible to mis- gle for life over death. Washing- use and misconstruction as “all ton had been at the head of men are created equal’? The an- America’s armies a year before swer to that question is partially July 4, 1776. Washington’s task explained in the Writings of John looked hopeless. Jefferson's task Adams. Prior to 1776 two half-de- was to win the case for America mented philosophers of France, by writing a powerful preamble named Helvetius and Rousseau, that would appeal to the hearts— had maintained that “all men are not the minds—of the French peo- equal,” and had preached “the ble. Since the doctrine of human brotherhood of man.” France was equality had become a popular saturated with it. That philosophy creed in France and since Helve- had caught on with the simple- tius and Rousseau were the proph- minded peasants and philosophers ets of that creed, Jefferson di- of France. Nothing appealed so rected the Declaration at the powerfully to the ignorant French hearts of the French people by peasants as the doctrine that “all declaring that “all men are created men are equal” or are brothers. equal.” To the peasant that meant that In their old age Thomas Jeffer- all men are kings. The slogan was son and John Adams progressed ===== PAGE 49 ===== 1960 EQUALITY VERSUS LIBERTY 47 from political rivals to bosom through life, is as gross a fraud, as friends. On the thirteenth day of glaring an imposition on the credulity July, 1813, Adams’ mind went of the people, as ever was practiced back to July 4, 1776, when he and *- by the self-styled philosophers of Jefferson labored together in Phil- the French Revolution. For honor’s . sake, Mr. Taylor, for truth and vir- adelphia. He wrote to Jefferson tue’s sake, let American philosophers that day: and politicians despise it. Inequalities of mind and body are so established by God Almighty in his constitution of human nature that no Much has been falsely written art or policy can ever plane them and more has been mistakenly down to a level. I have never read said about the influence of the hu- reasoning more absurd, sophistry man equality doctrine of the Dec- more gross, in proof of the Athana- |jration of Independence on sian creed, or transubstantiation, France. We may not complete the than the subtle labors of Helvetius story about America without tell- and Rousseau to demonstrate the nat- ing the story of France. 1 lity of mankind. J ) . i ural equality ol mankind. Jus cuique, In 1783 Benjamin Franklin the golden rule, do as you would be . done by, is all the equality that can be translated and prepared for publi- supported or defended by reason or cation a French edition of the Dec- common sense. laration of Independence and all American state bills of rights and About a year later, on the fif- constitutions adopted up to that teenth day of April, 1814, John {ine including the committee Adams wrote to John Taylor of graft of Virginia's Declaration of Virginia: _ Rights and Constitution, both Inequalities are a part of the nat- Written by George Mason — but ural history of man. I believe that not the official draft of the Vir- none but Helvetius will affirm, that ginia Declaration which Franklin all children are born with equal did not have because it was not genius. published in any form for distri- That all men are born to equal pytjon outside of Virginia until rights is true. Every being has a right well into the 1800%s. As is well to his own, as clear, as moral, as sa- known. that book greatly influ- cred, as any other being has. This is as d th F h Revoluti I indubitable as a moral government in ence e Xrenc evolution. In August 1789, France adopted the the universe. But to teach that all . men are born with equal powers and celebrated French Declaration of faculties, to equal influence in society, Rights which copied much from to equal property and advantages those published by Franklin. Equality in France ===== PAGE 50 ===== 48 THE FREEMAN December Since Helvetius and Rousseau Power now moved smoothly over a had been the prophets of the creed level plateau. The promised liberty of equalitarianism, one would ex- and freedom of the French people pect the French Declaration of vanished in the dead sea of equal- 1789 to have asserted the doctrine ity. that “all men are created equal” In his Essays on Freedom and as did the Declaration of Indepen- Power (1948 edition), page 154, dence. But, instead of following Lord Acton had this to say about Helvetius, Rousseau, or the Dec- the effects of the doctrine of equal- laration of Independence, France ity in the French Revolution: rephrased George Mason’s origi- The deepest cause which made the nal and asserted as the first para- French Revolution so disastrous to graph of her Declaration language liberty was its theory of equality . . . which, when translated back to With this theory of equality, liberty English, comes out: “men are was quenched in blood and French- born and always continue free and men became ready to sacrifice all equal in respect of their rights.” other things to save life and fortune. Her Declaration then defines “the Speaking on Charter Day at the natural and imprescriptible rights University of California on March of man” as “ liberty, property, se- 23, 1907, Nicholas Murray Butler, curity, and resistance to oppres- President of Columbia University, sion.” had this to say: How Power Corrupts The political and social anarchy . which Lord Acton described must be The French Revolution teaches the inevitable result whenever the that liberty does not reside in the passion for economic equality over- power of the majority to run the .,mes the love of liberty in men’s state but it lies rather in the se- preasts. For the state is founded upon curity of a minority from the ar- justice, and justice involves liberty, bitrary exertion of the majority and liberty denies economic equality; exercising the powers of the State. because equality of ability, of effi- In that bath of blood equality fi- ciency, and even of physical force nally became the revolutionary are unknown among men. creed. The nobility was leveled to The American Revolution was the middle class and finally the kept under control by constitu- middle class was leveled to the tions that limited power in order proletarian. The attempt to create to preserve liberty. Virginia's Bill a classless society resulted in the of Rights and Constitution were complete suppression of liberty. both written before the Declara- ===== PAGE 51 ===== 1960 EQUALITY VERSUS LIBERTY 49 tion of Independence. All of the ity of energy renders all men thirteen states immediately fol- sluggards. Equality of virtue sus- lowed the example and adopted pends all men without the gates new governments. The French of Heaven. Equality of love stulti- Revolution went out of control fies every manly passion, destroys when it subordinated the liberties every family altar, and mongrel- of men to the power of a govern- izes the races of men. Equality ment immediately responsive to homogenizes so that cream does equalitarian mobs, Unbridled not rise to the top. It puts the power and liberty are in eternal eagle in the hen house so that he enmity. As Lord Acton said, may no longer soar. It subverts “Power tends to corrupt and ab- civilization by encouraging the solute power corrupts absolutely” Hottentot to claim equal footing and again, “A nation can never with the cultured and intellectual abandon its fate to an authority in any scheme of social adminis- it cannot control.” tration. Free and Unequal Compulsory Equality Means Slavery It is equality of freedom and Equality of freedom cannot ex- independence that gives unto man ist without inequality in the re- his opportunity to be rich or poor wards and earned fruits of that or to be good or bad. Equality of freedom. There can be no equality men leaves no choice, because if of freedom, without leaving to all all men are equal by nature or in- men a free and lawful choice of herently, there can be no differ- the “means of acquiring and pos- ences and no distinctions. All have sessing property, and pursuing an equal right to stand at the and obtaining happiness” as judgment bars of God and man — Mason had it when Jefferson, like but all are not entitled to the same the gypsy, first defaced and then judgment. Virtue and depravity claimed as his own. are not entitled to the same re- It is inequality that makes “the wards on earth or in Heaven. pursuit of happiness” something It is inequality that gives en- more than a dry run or a futile largement to religion, to intellect, chase. It is inequality that makes to energy, to virtue, to love, and to the race. It is the father of every wealth. Equality of intellect stabil- joy and the giver of every good izes mediocrity. Equality of wealth gift. More than 2,000 years ago makes all men poor. Equality of Aristotle said: “Equality may ex- religion destroys all creeds. Equal- ist only among slaves.” Slavery is ===== PAGE 52 ===== 50 THE FREEMAN December the end result of leveling. In the communistic sewers of slavic slav- fruitless effort to achieve equality ery. As Francis Lieber pointed short of slavery the peaks must out in his great work on Civil be bulldozed into the valleys to Liberty (page 334) 100 years ago: make a level plain. Such may be “Equality absolutely carried out done only through the process now leads to communism.” called “social engineering’ which The prophecy is now being real- holds that the end justifies the ized in America. It is not the means. Those means must ever be ‘“‘American creed.” It is the creed force, restriction, terror, and a of Marxism and the come-on of complete loss of liberty. communism, > Equality may be imposed only ‘EpITor’S NOTE: This is a condensation of in a despotism. Equality .beyond ,, article which first appeared under the the range of legal rights is des- same title in the American Bar Associa- potic restraint. It is nowhere fon Journal, August 1960. A reprint of . . that article will be supplied upon re- sought to be imposed except in the guest to THE FREEMAN. Russians Catch Sly Bootmaker BY pay, F. I. Kuznetsov worked in a Soviet co-operative boot factory, as any good Soviet bootmaker should do. By night, he and his wife went into the basement of their home near Moscow and made felt boots on a private enterprise basis, which they sold on the black market. In short, they bootlegged the boots. Police who arrested Kuznetsov found bank books listing de- posits of $42,300, and 1,500 gold coins, and two automobiles. Private enterprise had paid off. From the New York Herald-Tribune October 16, 1960 AY ===== PAGE 53 ===== A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN SuEOWN GOOD? 4) Tz WHEREVER the departed soul of ¥ a case, it would seem to call for a Karl Marx may be, it (or he?) new generation of Carlyles, Rus- must be scratching a celestial (or kins, or H. L. Menckens, esthetic infernal?) head at the strange in- critics with a mission to reform tellectual cavortings of contempo- the tastes of the multitude. But rary American leftists. No longer Packard, Galbraith, and Schles- do these leftists say that socialism inger are not content to argue di- is necessary because capitalism op- rectly with people about the al- presses the masses. What they are leged sinfulness of tail-finned cars now complaining about is that our or goods that come in fancy wrap- industrialists have made us too ping paper. No, they make a pitch rich for our own good. We waste for putting the improvement of our money on frivolous things (so taste under the wing of political says Vance Packard). And, since planners. We must be forced to the marginal utility of our mani- like the right sort of thing by fold gadgets is questionable, Madi- men who carry fiscal clubs behind son Avenue is called upon to pump their backs. up an entirely synthetic desire for In other words, force majeure, them (so says Kenneth Galbraith). and plenty of it. The little matter Indeed, our riches have so de- of first finding tasteful politicians bauched our sensibilities that we among the tasteless masses and refuse to pay out what is neces- then persuading the tasteless to sary for education, for leisure, for put the tasteful into office is rebuilding our cities, and for blithely skipped over. bringing the best in medical care Since bad taste is always with to the elderly (so says Arthur us at least to some extent, the Schlesinger, Jr.). complaints of Packard and Co. To the extent that the Packards, have a certain relevance. But Galbraiths, and Schlesingers have these critics achieve their flesh- 51 ===== PAGE 54 ===== 52 THE FREEMAN December creepy effects by pulling isolated society in which there is a great and usually short-lived trends out deal of “bunching around the mid- of the context of a contemporary dle,” financially speaking. In 1959, society that is neither unduly on the threshold of the sixties, wasteful nor particularly con- about 43 per cent of all nonfarm cerned with sheeplike ‘status families had after-tax cash in- seeking.” They make parts do duty comes of from $5,000 to $10,000 a for wholes, and foreigners who year. “Proletarians” had practi- rely on them for a portrait of cally disappeared; “blue collar” America are thereby grossly mis- workers now lived in suburbs led. cheek-by-jowl with the white col- A generation ago one could al- lar classes, and neither from their ways count on the wise Simeon houses nor their spending habits Strunsky, who conducted a well- could Karl Marx have told them known newspaper column called apart. “Topics of the Times,” to pull the The Fortune editors have in- ever-swarming Packards and Gal- vestigated the charges that the braiths of his age down from their bunch-in-the-middle with the pedestals. But there are no Strun- $5,000-to-$10,000 “disposable” in- skys any more, and our contem- comes wastes its money on frivoli- porary part-from-the-wholersseem ties, or spends it in frenzied to have blanketed most of the status-seeking. And the editors available white space. The an- found some silliness. But in look- swers to Packard and Co. lie all ing for “waste” and “conformity,” around us — but so far as my own they came upon a curious phenom- searches show, the only place enon: a nation with increasingly where they have been committed large families which has little to paper in a thoroughgoing man- enough money to spare for throw- ner is in a book called Markets of ing away when so many children the Sixties, compiled by the edi- demand so much schooling. The tors of Fortune (Harper, $5.00). after-tax income of the U.S. ran to $336 billion in 1959. Three- Widespread Affluence quarters of this $336 billion were Markets of the Sixties paints a spent on the “essentials” — food, picture of an “affluent society,” clothing, housing, and transporta- all right. But it is hardly the af- tion. Of the remaining $84 bil- fluent society of Professor Gal- lion, some $24 billion were set braith, a place in which “money is aside in savings. Almost $19 bil- no object.” True enough, it is a lion went for medical care. Some ===== PAGE 55 ===== 1960 TOO RICH FOR OUR OWN GOOD? 53 $4 billion for private education, over a decade? Or that money $17 billion for bank service spent on books, magazines, and charges, brokerage charges, in- newspapers has jumped from $1.8 terest on loans, and other “per- billion a year to $3.5 billion, with sonal business,” and $16 billion religious and business books out- for “fun” —i.e., movies, books, pacing detective stories and West- magazines, gardening, boating, erns? Is it “frivolity” that ani- ball games, and travel in foreign mates the 2.5 million camera own- countries, ers who qualify as “advanced ama- teurs,” meaning the ones who like Who Says It Is Waste? to operate their own darkrooms These figures do not mean much and belong to one or another of when taken by themselves. They 12,000-odd photography clubs? do not include before-tax public And is it “Madison Avenue,” or education. When they are com- any other nest of ‘hidden per- pared with the expenditures of suaders,” that lures people into former years, they really take on joining amateur community or- meaning. We discover that medical chestras, or sends 30 million Amer- care, private education, and “per- icans fishing and 20 million hunt- sonal business” have been taking a ing when fishing and hunting sea- steadily rising share of the con- sons come around? sumer’s dollar. People have been keeping their cars longer; more- over, they have been insisting on The “money left over for the “functional” cars (Volkswagens good life” — or the “discretionary for shopping, secondhand cars for dollar” — often winds up in the commuting to trains, station wag- hands of money-lenders, which ons for big family use, and so on). might be interpreted as “waste.” Money spent for spectator sports But the editors of Fortune do not has been declining (since 1947 it consider that the American people has dropped from $2.3 billion a have gone goofy over consumer year to $2.2 billion). But “active” credit. In the old days people paid forms of recreation have been for their commuting on a day-to- commanding rapidly increasing day or month-to-month basis, by sums. forking over their cash for trolley Is it a mark of “waste” that the car fares or commuter train tick- number of Americans owning their ets. Now they still “pay as they own boats has jumped from two go” —by reducing the debts on million to seven million in a little their automobiles as the cars More Personal Ownership ===== PAGE 56 ===== 54 THE FREEMAN December themselves are “consumed.” Once means they are individuals. They upon a time the American people can casually mix Victorian furni- paid for their movies at the box ture and “modern” in the same office. Now they pay for their tele- living room without worrying vision sets from month to month about what their neighbors will as they watch the television shows think. To the extent that they en- night upon night. However one courage other people to be whim- figures it, it is still “pay as you sical, they translate “status seek- get something.” Though consumer ing” into something that is close credit totals may seem high, peo- to ‘“self-realization.” ple have had very good records of Moreover, the taste of the “high repayment. When Americans used mobiles” is, on the evidence pre- to travel to work by trolley and sented by Fortune’s Gilbert Burck, spend their evenings at the movie constantly changing for the better. theater, they were simply out of In the sixties, so Mr. Burck pre- pocket for their expenditures. diets, business will still be able to They did not wind up as part sell kitsch — or junk — to a lot of owners of streetcar lines and Americans. But it will surely “be theaters. But now, more often able to make more money operat- than not, they do wind up as pos- ing on the assumption that people sessors of TV-sets and automo- want something ‘better,’ not only biles “in the clear.” In terms of functionally but aesthetically.” personal ownership, this means It is on this note that Mr. Burck less waste, not more. ends his own penetrating essay on American taste, which sums up the conclusions of the Fortune editors. Instead of ‘keeping up with the The book as a whole is far more Joneses,” the modern American soundly argued than the works of suburbanite is often what Fortune the Packard-Galbraith-Schlesinger calls a “high mobile,” or an “early school. Why, then, doesn’t it out- adopter,” one who likes to pioneer sell Packard’s latest? Is it because new trends. The “high mobiles” our popular taste in sociological were the first to buy electric blank- works is still on a kitsch standard? ets, food freezers, and colored Or is it because our “high mo- sheets. Waste? Well, maybe a pen- biles” buy Packard because they chant for colored sheets is rather enjoy reading about people they silly, but it is certainly harmless. can look down upon — the “other At any rate, the “high mobiles” fellow,” in brief? I suspect the obey their own whims, which latter explanation is the true one. Their Status’ Is Freedom ===== PAGE 57 ===== 1960 OTHER BOOKS 55 But, if so, the joke is on the “high things which in serious form would mobiles,” for the “other fellow,” never find their way into print; or, on the evidence of Fortune, is ceas- if by some oversight this occurred, ing to exist. They have been read- the author would be shot or exiled ing about a disappearing animal. to Outer Slobovia. > Just recently I read somewhere that anyone wishing fo get the » MARK TWAIN AND THE GOV- “feel” of World War II would do ERNMENT Selected and arranged better to forget the serious trea- by Svend Petersen (Caldwell, tises and novels and turn instead Idaho: Caxton Printers, Ltd., 1960. to Ernie Pyle’s books and Bill 146 pp. $3.50) Mauldin’s Up Front. The latter is no doubt considered by most per- sons to be nothing more than a SERIOUS social criticism is a recur- collection of cartoons that leave ring need, but it is never in such one weak with laughter after only short supply as the kind of criti- a few pages. Well, they are that, cism supplied by an Artemus it is true, but they are also much, Ward, a Will Rogers, a Mencken, much more as one learns after go- or a Mark Twain. These men are, ing through the book several times first of all, a literary delight. They and rereading the text which at don’t hit us over the head with a first is probably forgotten by remedy; rather, they help us see pearly every reader. the plain truth about things. Take We could use a Mark Twain to- an example, day, someone who is gifted with The mad scramble for political that sense of humor which makes advantage provokes the usual con- a good critic a great one. We have demnation of pork barrel legisla- lots of good critics but they are tion and we shrug it off. But much too serious, much too angry; Twain, watching the fracas, and, in consequence, they depress notes, “All were agreed upon one even the reader who quite agrees point, however: if Congress would with them on every point. Thus, make a sufficient appropriation, a we are fortunate to have this la- colossal benefit would result,” and bor of love which brings together immediately we get the thing into Mark Twain’s many observations focus. Humorous critics have an- on what Huck Finn called “the other advantage: they survive. As gov'ment” gleaned by Mr. Peter- Mr. Nock put it, the wit and the sen from Twain's tremendous lit- court jester can say outrageous erary output. The book can be Reviewed by Robert Thornton ===== PAGE 58 ===== 56 THE FREEMAN December read as a gorgeous bouquet of wit- tity theory, gold and silver, the ticisms, or as a collection of com- bill of exchange, the goldsmith’s mon-sense observations on politi- note, the Bank of England, the cians, parties, patriotism, Con- bank note, deposit money, the gress, Washington, D.C., and creation of credit money, a world kindred subjects. Mark Twain monetary system, the gold stand- was, of course, a product of the ard, postwar exchange control, frontier and, as such, had a built- saving and full employment, state- in distrust of “the gov'ment” in created cash, and finally (the Washington. Unfortunately, this chapter title is significant) “The trait has pretty much disappeared Cause [not causes] of Inflation.” from the American personality The subject of money, banking, and a man like Mark would be a and inflation is capable of being’ curiosity in these days. ~ dealt with simply and lucidly; but it is honeycombed with traps for p A SHORT HISTORY OF MONEY the unwary. It has taken mankind By George Winder (London: New centuries to achieve a true and of Econom agar es . ue comprehensive analysis. Progress shillings.) Available from The In understanding has by no means Foundation for Economic Educa- occurred in a straight line. As tion, Irvington-on-Hudson, N. Y., . $2.50. pioneers such as Hume, Adam Smith, Ricardo, Mill, Jevons, B. E IN A fortunate blund M. Anderson, Ludwig von Mises, DITOR’S OTE: ortunate unaer on our part has resulted in this second have pushed forward to greater review of Mr. Winder’s A Short His- clarity, other writers have es- tory of Money. Professor Peterson’s poused new fallacies or entangled review appeared in the October Free- th 1 . fusi that man. The importance of the subject emse ves In new contusions tha and the excellence of the book war- required an ever more acute anal- rant this added attention. ysis to unravel. The great nine- THIS LITTLE BOOK is not only a teenth century controversy be- short history of money, as its title tween the Currency School and the declares; it is an excellent primer Banking School is still being on money and banking, and a clear waged on some issues. Even and courageous analysis of the thinkers who have contributed to cause of present-day British (and understanding on one point have Reviewed by Henry Hazlitt world-wide) inflation. contributed to confusion on an- Individual chapters discuss other. whether banks “create” money, But throughout the history of the purpose of money, the quan- monetary controversy there is one ===== PAGE 59 ===== 1960 OTHER BOOKS 57 choosing of sides that has been as a coordinator of production all decisive. That is between the in- over the world.” He is not con- flationists and the champions of vinced that it was necessary for sound money. Great Britain to abandon gold in There are some points in mone- 1931. tary and banking theory on which Winder recognizes that if wage I think George Winder is mis- rates are properly adjusted no un- taken. But I do not propose to employment whatever need exist. discuss them here. For not only He sees through the iniquities of does he come out on the side of exchange control, and the brazen the angels on the chief monetary nonsense about a “world dollar issue of our time, but he is so shortage.” He sees the Interna- informative, he is so right on so tional Monetary Fund as an un- many things, he has stated his successful institution that has case so clearly and cogently, that thrown its weight behind the he has given us one of the best dubious policy of “keeping wrong introductions to money, banking, exchange rates stable.” Pending and inflation to appear in the last the restoration of a real interna- thirty years. tional currency he suggests that On the historic side, the book ‘the free exchange of currencies, . is full of fascinating information. at their free market values, would It gives the history of money and aid international trade just as coinage since ancient times, and much as the free exchange of explains the origin of banking goods.” He suspects that the pres- and bank notes. But it is not for ent “almost universal opposition to its historical informativeness but these two freedoms” exists “chiefly for the unequivocal position that because they would make the inter- it takes on current monetary is- nal planning of an economy, by sues that Winder’s book should be the politicians and the economists, most valued. an impossibility.” He recognizes that ‘““a rise in But most of all Winder sees, prices is not itself inflation; it is and clearly says, that it is, first the outward symptom of infla- and foremost, governments that tion.” He recognizes that the gold are the architects of inflation. standard gave “the world an in- “One of the chief objections to ternational money,” and that this the power of the State to create money, in a world of comparative- money at will is that it always ly free trade, in effect coordinated creates too much.” He keeps mer- international prices and so “acted cilessly citing the British statis- ===== PAGE 60 ===== 58 THE FREEMAN December tics on this. “The power of gov- that it had recourse to the bank- ernments to control the quantity ing system, which has supplied it of bank loans may be described with new money. . . . The surest: as an attempt to substitute a flex- way of stopping inflation is for ible supply of money for a flexible the government to cease increas- wage-and-price structure.” ing its borrowings from the bank- “Both in war and in peace, in- ing system. . .. The expenditure flation in Great Britain has its of the government in excess of its source in the government’s fail- resources has been the cause of ure to balance its budget . . . so post-war inflation.” ~ Freedom FREEDOM CAN WELL BE LOST to us through misinterpreta- tion of it. When we think it gives us the right to another inan’s harvest, or entitles us to an honor we are unwilling to earn, we place ourselves in a bondage that curtails our true growth in every way. Through the privilege of choice our way is opened for us to become what we will. The wise use of this faculty brings out the best that is in us, and thereby places us in positions and circumstances that are compatible with our abilities and much to our liking. When we direct our efforts to the knowledge and expression of the real Self, of our Sonship with God, we take from no man what is rightfully his, nor do we place anyone in our debt. Freedom does not mean that each shall have the same thing, or even express in the same way; for it is every man’s right to discover the path to his highest good. But how we use this priceléss heritage of choice decides what we become. True freedom is experienced as we earn it through thought and deed. LA VERNE BOWLES From the “Daily Guide to Richer Living” for September 15, 1960, appearing in Science of Mind. ===== PAGE 61 ===== THE FREEMAN, Volume 9, January-December 1960 HIND Yo Prepared by VERNELIA A. CRAWFORD of the Foundation staff NOTE: In page references, the number preceeding the colon designates the month; the number following the colon refers to pages. All Book Reviews are listed according to title of book in a separate section on page 63. A Blough, Roger M. ABC’s of Modern Economics, The. By R. Time of Decision, A, 10:23 Bradford, 3:16, 4:42, 5:16 Bowles, La Verne Abuse Freedom — Lose It. From ‘Bankers’ Freedom; quote, 12:58 Bulletin, 7:12 Bradford, Ralph . ; : . ABC’s of Modern Economics, The, 3:16, Aduit Delinquency. By B. Moreell, 7:3 1:42, 5:16 Aid, Alternatives, and Discrimination. By A. Real Conflict, The, 12:12 Alchian and W. Allen, 11:20 Washington Monument, The, 2:3 Alchian, Armen A. and W. Allen } Braley, Berton - Aid, goernatives, and Discrimination, Thinker, The, 6:65 11: . Business Review America Is Many Million Purposes. By W. Henry VIII Revisited, 8:22 Chamterlin, 10:3 American Predicament, The. By P. Gresham, 10:18 C “And for Other Purposes.” By G. Leitch, 4:3 Case for Freedom, The. By F. Hayek, 10:32 Andelson, Robert V. Centuries of Communism, The. By G. Winder, “Rights”; quote, 3:57 6:39 Answering Some Questions about The Rem- Chamberlain, John nant. By E. Opitz, 4:38 Man Who Smelled the Future, The, 11:3 Are Antitrust Laws the Answer? By K. Wood, Reviewer's Notebook, A. See Book Review 4:37 section of this index Are Tariffs Isolationist? By F. Clark and R. Chamberlin, William Henry Rimanoczy, with comments by K. Wood, America Is Many Million Purposes, 10:3 3:20 Economic Growth: Reality and Mirage, 12:15 Are We Changing Our Concept of Govern- ment? By K. Sollitt, 9:5 European Socialism in Eclipse, 1:42 Feet of Clay, 6:28 B Perils of Playing Uncle Atlas, The, 2:43 Socialism Through the Back Door, 5:3 Backdrop of American Social Conduct, The. Change. By R. Eagle, 2:50 By G. Gadzikowski, 9:9 Chapman, Gilbert W. ‘“‘Bankers’’ Bulletin Need for Excellence, The; quote, 10:66 Abuse Freedom — Lose It, 7:12 Chimera of Monopoly, The. By A. Winston, Bastiat, Frederic 9:39 Legal Plunder; quote, 8:26; 9:66 Why the U.S.S.R. Must Succeed, 2:22 Bell, Bernard Iddings Chodorov. Frank Short History of Political Power, A, 1:41 No More Socialists, 10:42 Benn, Sir Ernest Clark, Fred GG. and R. Rimanoczy Profit Motive, The, 8:36 Are Tariffs Isolationist? 3:20 Better Way To Help Farmers, A. By J. Clarke, Thomas S. Patrick, 5:56 Criticism Founded on Fact; quote, 4:24 ===== PAGE 62 ===== 60 THE FREEMAN December Coleson, Edward P. Feet of Clay. By W. Chamberlin, 6:28 Scientific Free Enterprise, 4:20 Fertig, Lawrence What Science and Engineering Cannot Do, Do the Facts Justify a Higher Tariff Wall? 5:24 5:44 : Comedy at the Bargaining Table. By 8S. First National City Bank Letter Rydenfelt, 2:30 Hong Kong — A Success Story, 3:26 Comments on Inflation. By H. Hazlitt, 8:18 Private Affluence and Public Poverty, 10:10 Common Sense of Progress, The. By F. Five Ways to Nowhere. By T. Phelps, 9:3 Hayek, 11:44 For Moral Conduct. Quote by F. Hayek, 6:66 Communist Capitalism. By E. Webster, 6:35 Free To Obey. Anonymous, 9:27 } Conover, G. Courtney Free Will: The Foundation of the Free World. World’s Worst Folly, The, 11:29 By H. Schlichting, Jr., 6:17 Cooley, Oscar W. Freedom. Quote by L. Bowles, 12:58 Education and the Market, 8:53 Freedom: The Mortar of Maturity. By S. Criticism Founded on Fact. Quote by T. Miles, Jr., 7:13 Clarke, 4:24 Freedom of Choice. By A. Kemp, 8:27 Crusade Against Excellence, The. By M. From Within. Quote by W. Inge, 12:66 Rukeyser, 3:3 Curtiss, W. M. , G Insuring Irresponsibility, 7:54 Keeping the Peace, 10:46 Gadzikowski, Gilbert R. Backdrop of American Social Conduct, The, 9:9 D Day, J. Edward : Good and Bad Monopoly. By L. Read, 9:35 We Can't Afford It! 6:9 Great Man Warned Us of Dangers Ahead, A. Do the Facts Justify a Higher Tariff Wall? By H. Walker, 2:32 By L. Fertig, 5:44 Gresham, Perry E. Dolo. Vincent B American Predicament, The, 10:18 Worth Repeating; quote, 6:12 H E Hayek, F. A. Eagle. Robert H Case for Freedom, The, 10:32 Change po : Common Sense of Progress, The, 11:44 Ag . For Moral Conduct; quote, 6:66 Economic Foundations of Freedom, The. By Hazlitt, Henry L. Mises, 4:44 Comments on Inflation, 8:18 Economic Growth: Reality and Mirage. By Inflation vs. Morality, 8:20 W. Chamberlin, 12:15 That Elusive ‘National Income’; quote, Economic Growth of Soviet Russia, The. By 1:66 H. Sennholz, 9:22 Years of Inflation, 8:18 Economics for the Teachable. By L. Read, 1:32 Henry VIII Revisited. From Business Review, Education and the Market. By O. Cooley, 8:53 8:22 Elsten, A. Wayne High Cost of Coercion, The. By P. Poirot, 4:12 Mass Immunization, 8:30 Hoff, Trygve J. B. Equality versus Liberty: The Eternal Conflict. Soviet Economists Part Company with By R. Pittman, 12:40 Marx, 9:29 Eternal Love. By L. Noonan, 5:28 Hong Kong — A Success Story. From First European Economic Community, The. By H. National City Bank Letter, 3:26 Sennholz, 1:50 How To Reduce Taxes. By L. Read, 7:17 European Socialism in Eclipse. By W. Cham- How To Win a War. By E. Lipscomb, 8:3 berlin, 1:42 Hunter, W. L. Why I Returned to My Job, 6:24 F Fallacy of the Minimum Wage, The. By T. ! Sensing, 5:9 If 1 Were King. By S. Pettengill, 9:53 Featherbedding — A Way of Life. By L. Read, In Defense of Life and Property. By Minne- 6:14 apolis District Court, 7:40 ===== PAGE 63 ===== 1960 INDEX 61 Individual Freedom. Quote from Phillips Pe- mM troleum Co., 11:41 M . Inflation vs. Morality. By H. Hazlitt, 8:20 Pa Jac enewal. 6:52 Inge, William Ralph uburban newal, 0: From Within; quote, 12:66 Mahaffy, Francis E. Insuring Irresponsibility. By W. Curtiss, 7:64 Socialism, Spiritual or Secular? 5:47 Integrity. Quote by H. Toulmin, Jr., 3:10 Man Who Smelled the Future, The. By J. Chamberlain, 11:3 J Manchester, Frederick A. Jenkins, H. P. B. Lawmakers or Robots? 1:11 Antidotes for Tax Resistance, 10:45 Tricky Four Freedoms, The, 4:25 Commuter-Train Subsidies, 9:13 ce . Dollarless Diplomacy, 3:31 Mass Immunization. By A. Elsten, 8:30 Fair Shares in the Wheat Belt, 7:25 Matter of Common Interest, A. By P. Poirot, Gold-Disposal Plan, The, 5:28 8:14 Middie- Income Housing, 41 Miles, Stephen B., Jr. ew Frontiersmen, e, 12: . : . Painless Subsidy, 11:19 Freedom: The Mortar of Maturity, 7:13 Pure Collective Bargaining, 2:31 Minneapolis District Court Subsidized Doctoring, 8:35 In Defense of Life and Property, 7:40 Surplus Train Rides, 1:19 Tax Consciousness, 6:13 Mises, Ludwig Economic Foundations of Freedom, The, Johnson, Darryl W., Jr. 4:44 17 Arguments Against Socialized Medicine, ! 11:25 Monetary Crossroads. By H. Sennholz, 12:3 United Nations: Peace or Peril, The? 12:22 Mynkey Business. By G. Leslie, 10:58 World Government, A Reactionary Disor- Moreell, Ben der, 6:3 Adult Delinquency, 7:3 KX Long Range Consequences; quote, 3:66 Keeping the Peace. By W. Curtiss, 10:46 Motivation To Conserve, The. By F. Nymeyer, Kemp, Arthur 3:31 Freedom of Choice, 8:27 Mullendore, William C. Kershner, Howard E. Our Tragic State of Confusion: A Diag- Result Is Slavery, The, 5:54 nosis, 5:32 Toward a Better Future, 2:20 L N " Lawmakers or Robots? By F. Manchester, Need for Excellence, The. Quote by G. Chap- ) man, 10:66 Legal Plunder. Quote by F. Bastiat, 8:26; 9:26 . Leitch, Gordon B, No Middle Ground. Quote by A. Lincoln, 2:66 “And for Other Purposes,” 4:3 No More Socialists. By F. Chodorov, 10:42 Leslie, Grey Noonan, Lawrence Monkey Business, 10:58 Eternal Love, 5:28 Lessons from New Zealand. From Liberator, Nymeyer, Frederick 10:29 . Motivation To Conserve, The, 3:37 Lincoln, Abraham No Middle Ground; quote, 2:66 Lipscomb, Ed 0 Lo or Conse oy Quote by B. Mo- Old Kaspar. See Jenkins, H. P. B, reell, 3:66 On Talking to Ourselves. By E. Opitz, 65:11 Look to the Individual. Quote by A. Schweitz- On the Scientific Methods and Truth. By D. er, 4:66 Stewart, 6:53 Love That Neighbor. By J. Sparks, 1:29 One's Own Duty. Quote by W. Sumner, 5:66 ===== PAGE 64 ===== ‘ 62 THE FREEMAN December Opitz, Edmund A. Result Is Slavery, The. By H. Kershner, 5:54 Answering Some Questions about The Rem- Retirement in the Red. By L. Sullivan, 3:13 Oe 88 Ourselves, 5:11 “Rights.” Quote by R. Andelson, 3:57 Socialism — Substance and Label, 2:34 Rimanoczy, Richard Stanton and F. Clark Two-Fold Crisis: Personal and Social, The, Are Tariffs Isolationist? 3:20 7:46 : Ritscher, H. J. William Ralph Inge, 12:34 Tariff Controversy: A Christian Dilemma, Our Tragic State of Confusion: A Diagnosis. The, 7:56 By W. Mullendore, 65:32 Rukeyser, Merryle Stanley P Crusade Against Excellence, The, 3:3 Patrick, James C. Russell, Dean Better Way To Help Farmers, A, 5:56 Silent Partner, The, 2:14 Paupers in Parity. By L. Sullivan, 1:8 Rustgard, John Perils of Playing Uncle Atlas, The. By Ww. Problem of Poverty, The; quote, 7:24 Chamberlin, 2:43 Petro, Sylvester Political Activities and Political Expendi- tures, 1:20 Rydenfelt, Sven Comedy at the Bargaining Table, 2:30 Union Power and Government Aid, 7:26 S Petten ol el y . 63 Salesmen of Sloth. From Wall Street Journal, Phantom Called “Monopoly,” The. By H. 1:9 Sennholz, 3:39 Scargeth, George D. Phelps, Thomas W. That Extra Mile, 12:31 Five Ways to Nowhere, 9:3 Schlichting, Harold E., Jr. Phillips Petroleum Company Free Will: The Foundation of the Free Individual Freedom; quote, 11:41 World, 6:17 Pittman, R. Carter Schweitzer, Albert Equality versus Liberty: The Eternal Con- Look to the Individual; quote, 4:66 flict, 12:40 Planners, Go Home! By L. Sullivan, 5:18 Poirot, Paul L. High Cost of Coercion, The, 4:12 Scientific Free Enterprise. By E. Coleson, 4:20 Sennholz, Hans F. Economic Growth of Soviet Russia, The, Matter of Common Interest, A, 8:14 9:22 i i Social Security's Salvage Value, 3:11 European Economic Community, The, 1:50 Two Kinds of Power, 2:26 Monetary Crossroads, 12:8 Political Activities and Political Expenditures. Phantom Called “Monopoly,” The, 3:39 By S. Petro, 1:20 Sensing, Thurman Political Behavior. Quote by A. Toynbee, 2:25 Fallacy of the Minimum Wage, The, 5:9 Power of Truth, The. By L. Tolstoy, 12:37 Seventeen Arguments Against Socialized Private Affluence and Public Poverty. Medicine. By D. Johnson, Jr., 11:25 From Monthly Letter of ‘First National City Short History of Political Power, A. By B. Bank of N. Y., 10:10 Bell, 1:41 Problem of Poverty, The. Quote by J. Rust- gjjent Partner, The. By D. Russell, 2:14 gard, 7:24 Profit Motive, The. By E. Benn, 8:36 Smoot, Dan Socialized Medicine, 4:9 R Social Security's Salvage Value. By P. Poirot, Read, Leonard E. 3:11 Economics for the Teachable, 1:32 ons — } Ma- Featherbedding — A Way of Life, 6:14 Socialism, Spiritual or Secular? By F. Ma haffy, 5:47 Good and Bad Monopoly, 9:35 Cl . How To Reduce Taxes, 7:17 Socialism — Substance and Label. By E. Opitz, “We Never Had It So Good,” 11:13 2:34 Real Conflict, The. By R. Bradford, 12:12 Socialism Through the Back Door. By W. Regaining Lost Freedoms: A Plan. By V. Chamberlin, 5:3 ’ Tripp. 3:63 Socialized Medicine. By D. Smoot, 4:9 ===== PAGE 65 ===== 1960 INDEX 63 Sollitt, Kenneth W. Walker, Harold Blake Are We Changing Our Concept of Govern- Great Man Warned Us of Dangers Ahead, ment? 9:5 A, 2:82 Soviet Economists Part Company with Marx. Wall Street Journal By T. Hoff, 9:29 Salesmen of Sloth, 1:9 Sparks, John C. Wallis, W. Allen Love That Neighbor, 1:29 Wages, Productivity, and Prices, 3:32 Stephenson, Howard Washington Monument, The. By R. Bradford, Tale of Two Railroads, A, 9:14 2:3 Stewart, Daniel K. We Can't Afford It! By J. Day, 6:9 On the Scientific Methods and Truth, 6:53 Suburban Renewsl. By J. Mabley, 6:52 Success Without Subsidy. By G. Winder, 4:17 Sullivan, Lawrence U. S. Foreign Aid, 11:42 Paupers in Parity, 1:3 “We Never Had It So Good.” By L. Read, 11:13 Webster, Edward J. Communist Capitalism, 6:35 What Free Enterprise Means to Me. By K. Planners, Go Home! 5:18 Wood, 1:65 . . Retirement in the Red, 3:18 What Science and Engineering Cannot Do. Sumner, William Graham By E. Coleson, 5:24 One's Own Duty; quote, 5:66 Why I Returned to My Job. By W. Hunter, 6:24 T Why the U.S.S.R. Must Succeed. By F. Cho- Tale of Two Railroads, A. By H. Stephenson, dorov, 2:22 -9:14 William Ralph Inge. By E. Opitz, 12:34 Tariff Controversy: A Christian Dilemma, Winder, George The. By H. Ritscher, 7:56 Centuries of Communism, The, 6:39 That Elusive “National Income.” Quote by H. Success Without Subsidy, 4:17 Hazlitt, 1:66 Winston, Ambrose Paré That Extra Mile. By G. Scarseth, 12:31 Chimera of Monopoly, The, 9:39 Thinker, The. By B. Braley, 6:65 Wood, Keith S. Time of Decision, A. By R. Blough, 10:23 Are Antitrust Laws the Answer? 4:37 Tolstoy, Leo N. Comments on Tariffs, 3:20 Power of Truth, The, 12:37 What Free Enterprise Means to Me, 1:65 Toulmin, H. A., Jr. World Government, A Reactionary Disorder. Integrity; quote, 3:10 By D. Johnson, Jr., 6:3 Toward a Better Future. By H. Kershner, World’s Worst Folly, The. By G. Conover, 2:20 11:29 Toynbee, Arnold Worth Repeating. Quote by V. Dole, 6:12 Political Behavior; quote, 2:26 Tricky Four Freedoms, The. By F. Manches- Y ter, 4:25 Years of Inflation. By H. Hazlitt, 8:18 Tripp, Vollie Regaining Lost Freedoms: A Plan, 3:53 BOOK REVIEWS To Te Srisis: oo ronal and Social, The. Adams-Jefferson Letters, The. Edited by L. Cappon. Reviewed by R. Thornton, 4:60 American Constitution, The. By H. Pritchett. Two Kinds of Power. By P. Poirot, 2:26 1} Reviewed by R. Brown, 1:62 Union Power and Government Aid. By S. Big Business and Free Men. By J. Worthy. Petro, 7:26 Reviewed by J. Chamberlain, 1:68 United Nations: Peace or Peril. The? By D. Case for Basic Education, The. Edited by J. Johnson, Jr., 12:22 Koerner. Reviewed by J. Chamberlain, 2:65 U. S. Foreign Aid. By L. Sullivan, 11:42 Christian History of the Constitution of the United States of America, The. Vol. I, “The w Development of Self-government.” Com- Wages, Productivity, and Prices. By W. Wal- piled by V. Hall; edited by J. Montgom- lis, 8:32 ery. Reviewed by J. Chamberlain, 8:57 ===== PAGE 66 ===== 64 THE FREEMAN December Constitution of Liberty, The. By F. Hayek, Man: The Bridge Between Two Worlds. By F. Reviewed by J. Chamberlain, 5:59 Winkler. Reviewed by E. Opitz, 9:56 1877: Year of Violence. By R. Bruce. Reviewed Man in Modern Fiction, By E. Fuller. Re- by J. Chamberlain, 4:53 viewed by R. Thornton, 9:62 Epistemological Problems of Economics. By L. Mark Twain and the Government. Selected Mises. Reviewed by P. Greaves, Jr., 11:54 and arranged by S. Petersen. Reviewed by Ernest Benn — Counsel for Liberty. By D. R. Thornton, 12:55 Abel. Reviewed by W. Altman, 4:57 Markets of the Sixties. By Editors of For- Folkways. By W. Sumner. Reviewed by J. tune. Reviewed by J. Chamberlain, 12:51 Chamberlain, 3:58 Men at the Top. By O. Elliott. Reviewed by Free Man and the Corporation. By R. Blough. J. Chamberlain, 1:59 Reviewed by J. Chamberlain, 1:58 Movement of World Revolution, The. By C. Freedom and Federalism. By F. Morley. Re- Dawson. Reviewed by E. Opitz, 10:64 viewed by F. Manchester, 2:58 National Purpose, The. Edited by J. Jessup. Freudian Ethic, The. By R. LaPiere. Reviewed Reviewed by J. Chamberlain, 11:58 by F. Chodorov, 8:61 On Planning the Earth. By G. Dobbs. Re- Future as History, The. By R. Heilbroner. viewed by T. Ingram, 2:64 Reviewed by J. Chamberlain, 9:59 Power and Morality. By P. Sorokin and W. Human Nature and the Human Condition. Lunden. Reviewed by W. Peterson, 2:62 By J. Krutch. Reviewed by F. Walker, 4:63 Short History of Money, A. By G. Winder. Humane Economy: The Social Framework of Reviewed by W. Peterson, 10:62; and by the Free Market, A. By W. Roepke. Re- H. Hazlitt, 12:56 viewed by J. Chamberlain, 7:61 United States Aid and Indian Economic De- Idea of a College, The. By E. Trueblood. Re- velopment. By P. Bauer. Reviewed by E. viewed by E. McDowell, 5:63 McDowell, 4:59 In the Days of McKinley. By M. Leech. Re- Westward Expansion: A History of the Amer- viewed by J. Chamberlain, 4:56 ican Expansion. By R. Billington. Reviewed Lament for a Generation. By R. De Toledano. by L. Sullivan, 9:64 Reviewed by J. Chamberlain, 6:61 What You Should Know about Inflation. By Language of Dissent, The. By L. Mason. Re- H. Hazlitt. Reviewed by J. Chamberlain, viewed by P. Greaves, Jr., 3:63 10:59 ===== PAGE 67 ===== ESSAYS ON LIBERTY Np in 7 ob trmes VOLUME VII, just published (448 pp., indexed), contains selected writings from THE FREEMAN and NOTES F ROM F EE, from June 1959 through June 1960. Cloth, $3.00 Paper, $2.00 Se Sit — all 7 volumes ! Cloth, $16.00 Paper, $11.00 Consider these volumes, either singly or in the set, as choice and thoughtful Christmas gifts. ORDER FROM: THE FOUNDATION FOR ECONOMIC EDUCATION, Inc. Irvington-on-Hudson, New York ===== PAGE 68 ===== —