

===== PAGE 1 =====

IDEAS ON LIBERTY

FEBRUARY 1962

Why Capital Wants Out . . . . . . Paull. Poirot 3
Dishonest Financing. . . . . . . . Donald Rogers 7
Eating Is Essential . . . . . . . . John C. Sparks 9
Tariffs Kill Jobs . . . . . . . . . Dean Russell 15
Violence as a Way of Life. . . . . . Leonard E. Read 18
Sharing the Gains . . . . . . . . Harold M. Fleming 28
Profit-Sharing Plans. . . . . . . . H.P.B. Jenkins 31
Nancy Hanks’ Boy . . . . . . . . Robertlincoln O'Brien 32
The True Face of Free Germany . . . . William Henry Chamberlin 36
Faith in Freedom . . . . . . . . David McCord Wright 43
Qur legacy . . . . . . . . . . Edward A. Rossit 45
Medicine and Citizen . . . . . . . Max S. Marshall 50
Books:
Individualized Mobility. . . . . . . John Chamberlain 58
Other Books . . . . . . . . . . 61

fy THE FOUNDATION
FILE FOR ECONOMIC EDUCATION, INC.

lrvington-on-Hudson, New York



===== PAGE 2 =====

BACK ISSUES OF

the Freeman

from January 1956 through December 1960*

We are running out of inventory room,
but we're reluctant to destroy those extra
copies that tend to accumulate by reason
of various flaws in our crystal ball. They're
still useful to pass on to others as samples
of libertarian thinking.

While they last, and for orders
received before April 1, 1962:

Single copies of 12 different issues

12 for $1.00

Any one issue (except March 1959)
20 for $1.00

*196) issues at regular rate of 3 for $1.00; 25 or more, 20¢ each

HANDSOME BLUE LEATHERLEX

Freeman Binders io hold 12 issues
Binderonly $2.25 each
Binder with issues inserted, for any year 1956-1960
$3.75 each

Binder with issues inserted, for 1961

$6.25 each



===== PAGE 3 =====

NOW AVAILABLE —

a 1962 revised and up-dated 143-page. Macfadden
Book paperback edition of

ECONOMICS
IY ONE LBSSON

by Henry Haslitt

“If people wish to disperse the illusions which push pressure

groups and politicians all over the world to economic cannibalism
and universal impoverishment, they will form little societies to
further the sale and influence of Mr. Hazlitt’s incisive economic
lesson!”

NEW YORK TIMES

Single copy $ .50 |
10 copies 4.50 |
| 50 copies 20.00 |

ORDER FROM:

THE FOUNDATION FOR ECONOMIC EDUCATION, INC.
IRVINGTON-ON-HUDSON, NEW YORK


===== PAGE 4 =====

THE

‘recman A MONTHLY JOURNAL OF IDEAS ON LIBERTY

FEBRUARY 1962 Vol. 12, No. 2

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.

Copyright, 1962, The Foundation for Economic Education, Inc. Printed
In U.S.A.

Additional copies, postpald, 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 ‘‘Dishonest
Financing,” ‘‘Sharing the Gains,’ and ‘Faith in Freedom.”

Any current article will be supplied In reprint form if there are enough
inquiries to justify the cost of the printing,



===== PAGE 5 =====

I

IN APRIL 1961, President Kenne- densome taxes on industrial earn-
dy presented to Congress a mes- ings than has the government of
sage relative to our federal tax the United States. To the extent
system proposing, among other that this might attract investment
things, the taxing of income capital out of the United States,
earned on American investments the taxgatherers in Washington
in certain foreign countries before are inclined to look upon it as ‘“un-
such income is brought into the fair competition,” about which
United States. It was further pro- something ought to be done.
posed to tax earnings on foreign The United States government,
investments to assure that the tax of course, is not authorized to es-
paid to foreign countries plus the tablish and enforce the tax rates
U. S. tax would bring the total up of other countries in order to raise
to the 52 per cent corporate tax them up to the U. S. level. But
rate applicable to earnings of com- the new proposals would tend to
panies operating within the produce that result.
United States. “These proposals,” If another government had of-
it was argued, “along with more fered low tax rates to afford op-
detailed and technical changes portunity for profitable invest-
needed to improve the taxation of ment, that government would
foreign income, are expected to scarcely welcome a move by
reduce substantially our balance- the United States to siphon off
of-payments deficit and to increase up to 52 per cent of any profits
revenues by at least $250 million produced by such investment — an
per year.” act of interference in the internal
The “problem” for which the affairs of their country. Such ac-
President's message proposes a tion, to nullify foreign tax incen-
“solution,” is that at least some tives, undoubtedly would dampen
foreign countries have less bur- the enthusiasm of many Ameri-

PAuL L. PoIroT

3


===== PAGE 6 =====

4 THE FREEMAN February

can enterprisers who might other- that heavier taxation of earnings
wise look abroad for opportuni- of American investors in foreign
ties. And certainly, few foreign countries would tend to discourage
taxgatherers would be so foolish as an outflow of capital. But private
to let the U. S. government skim investors rarely invest abroad, or
off taxes they might just as well anywhere else, without the expec-
levy and retain themselves; so tation of ultimately getting back
their tax rates on earnings by more than they put out. And the
American investors would almost history of foreign investments af-
surely and automatically be raised fords abundant proof of the favor-
to match the 52 per cent rate pro- able effect of such action on the
posed by the United States. American balance-of-payments.
Obviously, there is no founda- As Professor Sennholz explained
tion for any hope that these for- in his “Monetary Crossroads” in
eign tax proposals of the Presi- the December 1960 issue of THE
dent would bring additional rev- FREEMAN, the build-up of foreign
enue to Washington. They would balances and the drain on U. S.
simply shut out certain opportuni- gold stocks in recent years is the
ties for the development of the inevitable consequence of deficit
economies of foreign countries spending and credit expansion by
through free enterprise, without the American welfare state. In-
opening up to private investors flationary practices in the United
any new possibilities for profit States have finally outrun the in-
either at home or abroad. This, in flationary practices of many other
turn, would afford new excuses for countries, until this country no
taxing United States industries longer affords the one best market
and citizens to support the gov- in which to buy goods or services.
ernment-to-government programs This is why foreigners prefer our
of foreign aid that have done so gold to our goods and why Ameri-
much to stimulate government can savers turn increasingly to in-
ownership and socialism instead of vestment opportunities outside
private enterprise in other coun- their own country. It is precisely

tries. the same reason why East Ger-
mans and others try to escape the
Investment for Profit welfare state beyond the Iron

Consider next the effect the Curtain to comparative freedom
President’s tax proposals might in the West.
have on the U. S. balance-of-pay- What must the world think,
ments deficit. It is doubtless true then, if the government of the


===== PAGE 7 =====

1962 WHY CAPITAL WANTS OUT
United States has to erect a bar- social security and old age agsis-
rier to keep American capitalists tance and “free” medical care! If
and investors from free enterprise unwed mothers and roving fathers
opportunities abroad? Is any leave dependent children, subsi-
further proof needed of the bank- dize them! If parents fail to pro-
ruptcy of the New Deal-New vide the education their children
Frontier philosophy of taxing in- ought to have, give state and fed-
dividuals in order that the govern- eral aid to build schools and to
ment may spend more? hire administrators and teachers!
The road to the welfare state is If housing costs rise, impose rent
paved with the best of intentions. controls and provide public hous-
If prices of farm products seem ing!
depressed and farm incomes de-
cline so that other employment op- The Price We Pay
portunities appear more attrac- The often neglected aspect of
tive than farming, grant price the good intentions of the welfare
supports and other subsidies to the state is the cost of all this sub-
farmers! If American manufac- sidy and so-called security. Some-
turers and processors "are faced one has to pay, and it requires an
with stiff competition from more ever-expanding police force just
efficient foreign operators, grant to collect the taxes. The creative
higher tariff protection, erect and productive members of society
more stringent import quotas, are the ones from whom the rev-
and place other barriers against enues of government have to be
foreign goods and services! If la- drawn; there is no other source
bor organizers have priced the of goods and services. But to reck-
services of their members higher lessly tax the fruits of a person's
than a free market can bear, grant labor is a disservice to that per-
unemployment benefits and other son. To take away the earnings
relief measures to the hapless from a business is to leave it un-
victims! If changing circumstan- profitable and unattractive and to
ces threaten to make a ghost town set it up for another of the fail-
of a formerly prosperous com- ures that the government will be
munity, try to build it back and importuned to bail out. The high-
maintain the status quo through er the rate of taxation upon the
urban renewal subsidies! If in- most productive, the less their in-
dividuals fail to make provision centive to keep on producing at
for rainy days and later years of an extraordinary pace. This is
reduced productivity, give them why growth becomes such an ag-


===== PAGE 8 =====

6 THE FREEMAN February

gravating problem in the welfare in its generosity with taxpayers’
state, and why it appears that money, offers extra welfare bene-
government spending is the only fits and other attractions and runs
way to achieve future growth and the tax rate up until businesses
productivity. And this is why a pull out and capital flees to other
welfare government can’t stand to states for investment opportunity.
see any potential source of reve- This leaves a ‘depressed area”
nue leave the country for more at- which then appeals for federal

tractive opportunities abroad. aid,
A few domestic examples might
help explain how tax burdens af- So it goes, whether domestical-

fect the movement of capital. Rent ly or internationally: tax business
control, for instance, amounts to earnings severely, and capital will
a form of taxation against owners try to escape. Interfere with pro-
of rental housing. The force of duction and exchange, disrupt a
government is used to withhold market sufficiently, and the result
from landlords rental income they will be balance-of-payments prob-
might otherwise expect. It is fair- lems. Condone a closed shop, or a
ly well understood (except per- closed society in any other respect,
haps in New York City) that the and each successive step leads on
effect of such rent control is to to some further restraint of trade
chase capital away from housing and regulation of people and their
and into better investment oppor- lives. The more “advanced” the
tunities. But tenants want more of welfare state, the less freedom
the price-controlled housing, so can it tolerate among its own citi-
they appeal to government to stop zens, and finally among outsiders.
that flight of capital and build This is why our federal govern-
dwellings with it. ment wants to foreclose on more at-
Or, consider the crowded and tractive profit opportunities in
high-tax areas “downtown” in foreign countries. It's also why
some of the larger cities. Capital Mr. Khrushchev would like to
rebels — heads for the suburbs and bury freedom wherever he finds it
open spaces —not for space so in the world.
much as for tax relief. Then comes If the people of the United
the anguished cry to stop that States want to correct internation-
flight of capital and divert it to al exchange problems and balance-
urban renewal — via further taxa- of-payments problems, why not
tion. try freedom? It attracts capital.
Sometimes a state government, And it begins at home. ®


===== PAGE 9 =====

munity Facilities Administration,
D | S H oO N E ST a subsidiary of the Housing and
Home Finance Administration,
Fl N A N C | N G headed by Robert Weaver. This

engineer, having determined the

amount in the lowest competitive
$ % bid, then offered to handle the loan
for 8.375 per cent, lower than First

Boston, and lower, in fact, than the
government can borrow the money
to handle the loan,

We will deal in a minute with
) ) ) this dishonest procedure, this vio-
its 1961 convention in Florida j1a4i5n of the ethics of competitive
starting November 26, and no yj44ing but before we shed many

matter what has been scheduled (o505 for the investment banking
for consideration, one of the first industry, let’s consider what this

items of business should be full |... to you and me, ordinary
discussion of the federal govern- taxpayers.
ment’s deliberate and dishonest in- It means that you, wherever
tervention in the private banking yoy live, are paying for Charles-
industry in the case of some sewer {4's sewer facilities. You had no
bonds for Charleston, West Vir- (noice in the matter.
gina. This Community Facilities Ad-
Seven investment bankers sub- ministration, one of the lesser-
mitted competitive bids for $4 mil- known agencies grouped around
lion worth of Charleston sewer {he Housing Administration, is
bonds. The lowest bidder, it empowered to lend up to $650 mil-
turned out, was the First Boston jon for public improvements to
Corp, one of the most respected communities which can’t borrow
private investment banking firms from private sources at “reason-
in the nation. Its bid was for 83.946  gple rates of interest.”
per cent. ] First, no one has said Charles-
While Charleston city officials y's credit is no good. It’s good
were opening the seven bids, the gpough,
process was being observed by an Second, no one has said the
engineer employed by the Com- geyen bids submitted for the sewer

Mr. Rogers is Business and Financial Editor bonds, were not “reasonable.”

of the New York Herald Tribune in which this
column appeared, November 17, 1961. Charleston needs a larger sewer

DONALD I. ROGERS

THE INVESTMENT BANKERS AS-
SOCIATION of America will hold

7


===== PAGE 10 =====

8 THE FREEMAN February

system. In the ordinary course of the people in Charleston with
events it called for bids on $4 mil- their sewer?

lion in bonds to finance it. When So, back to the banking industry
First Boston’s bid of 3.945 per which is the directly injured party
cent interest was declared lowest in this little exercise of liberal
of the seven, the CFA engineer, New Frontierism. Senator A.
on the spot, decided this wasn’t Willis Robertson, D. Va., asked
reasonable and offered to lend Dr. Weaver, head of the Housing
Charleston the money at six-tenths complex, if he wasn’t actually say-
of a cent less, The city then threw ing that a “reasonable” rate was
out all of the bids of the private only the rate the CFA would

lenders. charge for a loan (which, remem-
ber, is a rate handled at a loss).

A “Reasonable” Subsidy No, replied Dr. Weaver, he had

Where does the CFA get this determined that “an interest rate

money ? is to be deemed reasonable if it

The government borrows it. The does not exceed 37; per cent and
money the government is borrow- if the loan is repayable over thirty
ing now costs more than 4 per years or more.”
cent. This means that the CFA Well, now, First Boston's rate
will be carrying this bond issue at of 3.945 per cent was based on a
a loss of more than $20,000 per repayment term covering thirty-
year, plus all of those high house- nine years. It was not only rea-
keeping costs they have in the sonable, it was most favorable.
federal bureaus. If anybody doubts this, just

So what the CFA considers a consider that bonds of the United
“reasonable” interest cost is one States government, with a shorter
80 low that the lender loses money maturity, were priced at the very
on it. The lender, friend, is the same time of the First Boston bid,
taxpayer, and that’s you. So as to yield over 4 per cent.
things stand, Charleston's new Truth is, this is a blatant viola-
sewage system will be paid for in tion of the principles of competi-
part by millions of Americans who tive bidding, and it is a bulldozing
will never pull the plug in a bath- attempt to have the government
tub in Charleston, West Virginia. step into direct competition with

I'd like to make arrangements private industry. There can be no
like that for handling the mort- other interpretation. ®
gage on my house. Anybody want ——— .
to help me? No? Then why help by with. poceniestons Tribune Inc. Re


===== PAGE 11 =====

JOHN C. SPARKS

To MY KNOWLEDGE no one has yet year, the uninterrupted supply of
devised a convenient and inexpen- which is necessary to sustain our
sive way to eliminate eating with- lives.

out also eliminating life. There For the first time, I realized
are other essentials to maintain- that none of our food had been
ing life, such as air, water, and provided directly by me, nor did
certain basic clothing as dictated I even know how to provide more
by the climate; but none of these than an infinitesimal quantity of
presents an economic problem what we consumed. Yet, over the
comparable to the continuous daily years I had never granted this
provision of food for one’s body. vital matter even a second
It came as a shock when 1 thus thought. As I pondered this situa-
realized how important it is to tion, our grocer with his shelves
maintain the “supply line of food” stocked for our convenience began
for oneself and his family every to take on.a special image of hero-
day of the year. Our family, in- ism. My wife soon shattered this
cluding my wife, one daughter, image by explaining that she
two sons, and one cocker spaniel, shops for the best bargains
consumes over 6,500 meals in one among five or six neighborhood
Mr. Sparks is a businessman in Canton, Ohio. groceries, several supermarkets, a
Hlustration: A. Devaney, Inc., N. Y. home-delivery bakery, and a dairy,

9


===== PAGE 12 =====

10 THE FREEMAN February

as well as miscellaneous rural sup- ample gross margin (they hope)
pliers of home-processed meats, to pay their rent and the wages
eggs, and fresh vegetables. She of their employees, and have
further revealed that she knew enough left over for themselves
the names of only a few of these and their own families. Beyond
purveyors of food upon whom we this, they also have to anticipate
depended, and she did not consider the multiple likes and dislikes of
the matter of much concern. Since all the housewives and other shop-
the lives of my loved ones seemed pers, as affected by the seasons of
to hang by such a thin thread, I the year and the days of the week.
felt it my responsibility to learn Scarcely anyone lets a grocer know
more about these food merchants. in advance when he or she intends
I discovered that in our com- to shop, but nevertheless the gro-
munity, with a population of over cer must foresee who, when, what,
200,000, there are between 250 and how much.
and 300 retail suppliers of food. How the grocers can do all this
They are successfully meeting the with so little apparent fuss and
need for approximately 219 mil- bother is an amazing feat and
lion consumed meals a year not in- holds my genuine admiration.
cluding between-meal snacks. These little and big grocers, dair-
Hardly any grocer stocks fewer ies, and other suppliers of food
than 2,000 items on his shelves have not looked upon themselves
while some of the larger markets as heroes or mental giants; nor
handle more than 10,000 different have they held, until now, any
items. The problem of providing special place in my mind. From
all of the families of the area with now on I will look upon this whole
food and meals — the basic essen- operation as one requiring a sub-
tial to life —is one of extreme stantial bit of magic, more than
complexity. a light touch of supernatural pow-
However, I soon learned that er, and a generous helping of pure
this was but the beginning of the luck to be able to anticipate so
complexity. These grocers, bless very accurately what we plan to
them, select each of the 2,000 to eat next week.
10,000 items from numerous A major reason why I am flab-
wholesale grocery-supply compan- bergasted by the magnificent job
ies in quantities and at prices being done by our community food
which will enable them to com- merchants is the contrast I see
petitively price their merchandise between them and the big govern-
for the retail trade and yet obtain ment bureaus in Washington,


===== PAGE 13 =====

1962 EATING IS ESSENTIAL 11

which find such fantastic ways to The record shows that wherever it
get themselves tied up in huge has been allowed to operate, the
messes in regard to one product — results have been excellent.
wheat. Now, there is something I However, those who have little
am aware of. Not many people faith in the independent daily de-
seem happy about the wheat situa- cisions of millions of individuals
tion. The farmer grows more than in a free market unfortunately
an economic guantity of wheat be- have placed many segments of our
cause our politicians guarantee lives — economic and otherwise —
to pay him for everything he under government control and
does not sell. Of course, there is bureaucratic decision. Disregard-
an effort to place some top limit ing the highly satisfactory results
on the quantity produced, but ob- in an area as vital as supplying
viously with very little effect. groceries, the crusading govern-
There are old liberty ships, un- ment interventionists seek ever
used movie theaters, old and new more opportunities to “move in”
warehouses, and other storage on the freedom-loving citizen and
facilities bulging with these ex- to take away his right to decide
cessive quantities of wheat. Such for himself.

is the contrast between the cen- We have already noted that
trally-planned, politically-powered these busybodies have supplant-
spending of fabulous sums of ed the free market in the wheat
other people's money and the business — with sorry results. The
amazing efficiency of private food objective was simple enough: to
merchants, each acting independ- keep wheat prices from declining.
ently and assuming his own risks Now, almost everyone knows that
and responsibilities in open com- the price of anything tends to fall

petition. as the supply becomes greater
than the demand. The clothing
When Government Interferes store conducts a “sale” in late

Since independent business- summer to get rid of the excess
men, both small and large, operat- supply of summer clothes. The im-
ing in the free market do such a portant feature of such a sale is
splendid job in the vital areas of the reduced price; excessive sup-
supplying the daily food require- ply must be avoided if a price
ments of nearly 200 million Amer- level is not to decline. But, what
icans, one could logically look to is the basic approach of the gov-
the free market for the accomp- ernment farm program? A price
lishment of other important tasks. guarantee! It is hard to imagine


===== PAGE 14 =====

12 THE FREEMAN February

a more attractive incentive to a support program works. Chewing
producer than to guarantee pur- gum manufacturers, let us say,
chase of his product; this is an are fearful that their potential
incentive to produce. But remem- production capacity will cause too
ber, to maintain a high price level large a supply and consequently
requires less production, not more! tend to reduce the price level. So,
The government program creates members of the industry seek gov-
a condition worse than before, and ernmental price-support action
no easy solution is in sight. through their representatives in
The solution, of course, is to Congress, It is argued that chew-
discontinue the government price ing gum is essential to dental
supports. But, government inter- care, assists in weight control, and
vention makes that increasingly so forth and so on — important to
complex, While enormous amounts the welfare of Americans. The in-
of farm products glut storage fa- dustry is threatened with a decline
cilities, rental and other business in prices and a chance of losses.
contracts have come into existence If this occurs, workers in chewing
to accommodate the government's gum factories will be out of work
uneconomic program. Farmers and unemployment will plague
and allied businesses are up to the economy.
their necks in transactions based Suppose that Congress then
on unnatural economics. The cure passes a law to purchase all chew-
may be distasteful, but it is badly ing gum unsold at the end of each

needed; and now! month at a price of three cents a
i. pack, a price slightly lower than
The Problem Is Magnified manufacturers currently receive

Why does any attempt of gov- from snack counters all over the
ernment to maintain a certain country. Mr. Smith’s company has
level of prices through a price sup- a factory that can produce five
port program inevitably result in million packs a year, but produc-
failure? Simply because it dis- tion has been cut back to match
courages the consumption and en- sales at a rate of three million a
courages the production of an year, When the price-support bill
even greater quantity of the very becomes law, Mr. Smith will im-
item claimed to be in abundant mediately increase his output to
supply at the outset. five million packs. The same

A theoretical example, in a busi- change will occur at all chewing
ness not connected with farming, gum factories, thus assuring the
shows how a governmental price- excess of production originally


===== PAGE 15 =====

1962 EATING IS ESSENTIAL 13

feared — the exact opposite of the bottle, that the manufacturing
result needed to solve the problem. cost is 60¢, and that the druggist
Attendant unhappy results are pays 75¢ to the manufacturer.
waste of taxpayers’ money, and Public benefactors reason that
great quantities of unchewed gum more people would buy and con-
stored in government-leased facil- sume the healthful vitamins if
ities. Most important, the problem the retail price were limited to
has been worsened by the inter- 50¢ a bottle, and they obtain leg-
ventionist action taken. islation to that effect.

Government price supports al- What happens? The manufac-
ways will encourage the output of turers of vitamins simply stop
unwanted products, which is the manufacturing, because a product
opposite of the intended result. costing 60¢ at the factory cannot
Wheat or chewing gum produced be retailed at 50¢ without leading
in excess of economic needs are to bankruptcy. Has the ceiling
of no more value than mud pies. price fixed by government brought

We have examined an actual about greater vitamin consump-
case and a theoretical example of tion? No, quite the opposite! Vita-
the distressing results of a gov- mins no longer are available to
ernment price-support program. anyone.

Now, let's take a look at a govern- Again, government intervention
ment ceiling-price program, : in the free market produces re-
It is easy to observe that prices sults contrary to those desired.
tend to rise when the demand ex- Case after case of government

ceeds the supply. The demand for interference with the natural laws
personal TV appearances of Roger of economics can. be cited — all
Maris undoubtedly exceeds the with the same result. England es-
time the brilliant young home-run tablished socialized medicine in
king has available for such activ- order to provide better medical
ities — so the price runs high. For services at lower cost to its citi-
the same reason the price of fresh zens. Result? The quality of medi-
strawberries 1s especially high cal care declined, and a person in
when strawberries are “out of sea- serious need of medical service
son.” : encounters difficulty, due to the
What happens when government heavy demand on the doctors by
intervenes and places a ceiling the citizenry who receive many
price on a product? Let us assume frivolous benefits “free” of
that vitamins are sold to the con- charge. Meanwhile, the cost has
sumer at a retail price of $1.00 a increased rapidly. Moreover, the


===== PAGE 16 =====

14 } THE FREEMAN February

quality of socialized medicine will interrupted by government, are
continue to decline, for young men continually making sensational
of ability will be less and less at- advances in industry, science,
tracted to a profession demanding medicine, and all the comforts of
such skill and technical training living. But when government steps
and knowledge when the rewards in with its irresponsible bureau-
are not commensurate. cratic substitute for private own-
Government interference in af- ership, the trouble really begins.
fairs between employer and em- The certain result is that the de-
ployee has existed for several dec- sired goal will recede from our
ades, presumably to protect labor grasp, and we will harvest the
from exploitation by management. grotesque and the unnatural in-
But the result of these laws favor- stead.
ing unionism is that exploitation It would appear that an axiom
and dictatorship over the union or law of human action applies in
membership by their own leaders situations where government in-
is pricing the individual worker terferes in the private lives and
out of the market. Thus, the door decisions of the citizens. Every in-
is opened to importation of goods terventionist program, attempting
produced by foreign labor, and to reach a generally desired ob-
customers are encouraged to find jective by an artificial method run-
substitute products or services. ning counter to the natural course
Again, government intervention of a free market economy, inevit-
brings about the opposite of the ably leads away from, rather than
hoped-for result. These are only toward, the proper goal; and the
a few random examples of the result is chaos. Whenever govern-
many available for examination. ment departs from its appropriate
role of policeman and soldier, the
The Result Is Chaos painful application of the forego-
There is a wealth of convincing ing rule overrides all the prior
evidence that private ownership good intentions.
of all creative facilities will yield
results far surpassing any and all Our progress depends upon our
attempts at government ownership ability to recognize unwarranted
and control. The grocers near my government intervention and our
home quietly conduct their busi- determination to eliminate it. If
ness and solve the critical daily we fail to restrict government to
problem of feeding me and my proper size, we may not eat! And
family. Private owners, when not eating is essential! @®


===== PAGE 17 =====

It so happens that Representa-
tive Mason has always been one of
my favorite congressmen. My only
real disagreement with his voting
record is on the issue of tariffs.
In defense of his campaign for
higher tariffs, he generally ad-
vances the familiar arguments of
protecting American jobs and in-
dustries against “cheap foreign
labor.”

He is correct in his observation
that if it were not for government
protection against foreign compe-

DEAN RUSSELL tition, many persons in the United
States would lose their jobs, and
REP. NOAH M. MASON of Illinois, a considerable number of Ameri-
top Republican on the House Ways can companies would be forced out
and Means Committee, is now pre- of business. But Mason com-
dicting that the tariffs in the pletely ignores the American con-
United States will definitely not be sumer and the multitude of jobs
lowered and will probably be and industries that depend on for-
raised. “If the administration eign trade,
tries to continue the Reciprocal He dramatizes the jobs and in-
Trade Act in its present form, dustries that are threatened by
there will be a devil of a fight,” the $16 billion worth of yearly im-
he states. ports into the United States. But

Mason claims that most con- he just ignores the far larger
gressmen are now opposed to our number of jobs and industries that
27-year-old policy of lowering are involved in our $20 billion
tariffs for nations that lower them worth of exports — automotive
for us, and that this increasing and electric equipment, steel mill
opposition could easily result in products, machine tools, coal and
the defeat of the act when it cotton, petroleum products, and
comes up for renewal next June. many others. Comparatively speak-
ei Js Protassor of Economics gt Role ing, prohibitive tariffs would de-
ford College and Chairman of the Depart- stroy 20 American jobs and com-
ment of Economics and Business Administra- .
tion. This article is from his column of Novem- panies for every 16 saved. And

ber 19, 1961, in the Rockford [Illinois] Morn- : )
ing Star. i worse still, the companies that

15


===== PAGE 18 =====

16 THE FREEMAN February

would be destroyed by this policy automobile industry in Illinois,
are our most efficient ones that however, if the state were permit-
pay the highest wages. Apparent- ted to put a 25 per cent tariff
ly, our high tariff congressmen against “imported” cars.
completely ignore the obvious fact With that amount of govern-
that foreigners cannot continue to ment protection (really a concealed
buy from us unless they are per- subsidy), capital would flow from
mitted to sell to us. our machine tool industry into our
Actually, tariffs never protect new automobile industry that
jobs for the nation as a whole. But could then offer the owners of the
tariffs do always increase prices capital a higher return on their
for consumers throughout the money. That development would
country. Today, you and I are pay- immediately increase costs (and
ing higher prices for clothing and prices) for machine tools because
watches (and many other items) those companies, in turn, would
because the American manufac- then have to pay a higher price to
turers of those products are pro- hold and attract the needed capi-
tected by tariffs. I am just as op- tal. And for a while at least, the
posed to protection and subsidies machine tool companies would also
for industry as I am opposed to have to pay higher prices for labor
protection and subsidies for farm- because the new automobile indus-
ers, unions, and professional men. try would bid especially high for
I cannot logically and morally be the services of those skilled me-

for one and against the other. chanics.
Thus, even if Detroit didn’t re-
For Example — taliate with tariffs against our

Perhaps our protectionists could machine tools, the higher prices
understand this issue better if would automatically mean that
they would consider the economic fewer would be sold. That, in turn,
effects in Illinois of a tariff against would mean fewer jobs in the ma-
all products from our other 49 chine tool industry. Meanwhile,
states. Here is how it would work. you and I would also have to pay

We do not have, for example, an $500 more for a car. In turn, that
automobile industry in our state. added cost would mean that you
The reason is simple — we can buy and I would have $500 less to
cars cheaper from Detroit and, in spend for housing, education, en-
effect, pay for them with machine tertainment, and so on. Thus those
tools that we produce cheaper than industries would also have to lay
they do. We could easily create an off workers. And since Illinois


===== PAGE 19 =====

1962 TARIFFS KILL JOBS 17

would soon run out of “unem- of tariffs among our 50 states ex-
ployment benefits,” those people plains better than anything else
would have no choice but to why our level of living is so high.
scratch out a living as best they It is due almost entirely to com-
could. Under those circumstances, petition, natural specialization,
obviously it wouldn't be much. But survival of the most efficient man-
unquestionably, many new jobs agers and companies, and the free
would have been created in our movement of labor and capital
new automobile industry. from one industry and one section
After that arrangement had of the nation to any other indus-
continued for 10 years or so, it try and section.
would be almost impossible to stop Those economic facts about com-
it; the protectionist politicians petition and trade also explain
would quickly and correctly point why the nations of Europe are
out that all the jobs in our high now establishing a tariff-free Com-
cost Illinois automobile industry mon Market. The advocates of that
would be wiped out overnight if project are well aware that the
we removed their protection from ultimate result will be better jobs
competition and permitted those at higher pay for all employees,
“cheap cars from Detroit” to be lower prices for all consumers, and

sold in our local markets. even higher profits for the owners
who are capable of operating in a

The Economic Facts About free and competitive economy.

Competition and Trade For both economic and political

That is always the final result reasons, the United States should
of government protection and sub- provide the leadership for lower
sidies and interference with the (not higher) tariffs among na-
free market economy. The absence tions. ®

Unsound

WHERE DOES ANYONE get the idea that he is entitled to the pro-
duction of someone else? Under what moral or economic concep-
tion can one base a claim upon his neighbors? Inducements of
something for nothing encouraged by politicians to get votes and
voted for by those not economically or morally informed can only
turn into a morally defective procedure which is economically un-
sound and which will lead to financial chaos.

RALPH E. LYNE, Taylor, Michigan


===== PAGE 20 =====

Violence AS A WAY OF LIFE

|

_' LEONARD E. READ

BROADLY SPEAKING, there are two Dbitions permit; no restraint in this
opposing philosophies of human re- respect — none, whatsoever.
lationships. One commends that Abandon the ideal of love and
these relationships be in accord the only alternative is to embrace
with the principles of love. The violence in principle, with robbery
other commends that they be in ac- and murder as its ultimate expres-
cord with the principles of vio- sions. Plunder, spoliation, special
lence.? privilege, feathering one’s own
The principles of love in society nest at the expense of others, do-
lead to willing exchange in the ing one’s own brand of good with
market place —the economics of the fruits of the labors of others —
reciprocity and the Golden Rule. coercive and destructive schemes of
No special privilege is counte- all sorts — all fall within the order
nanced. All men are equal before of violence.
the law, as before God. The life and Are we abandoning the ideal of
the livelihood of a minority of one love and drifting into the practice
enjoys the same respect as the of violence as a way of life? That's
lives and the livelihoods of majori- the question this paper intends to
ties, for such rights are conceived raise and answer — to answer in
to be endowed by the Creator, Ev- the affirmative. But why? William
eryone is completely free to act James may have suggested the
creatively as his abilities and am- reason: “Now, there is a striking
I The use of “love” as the antithesis of 1aw over which few people seem to
“violence” is suggested by Leo Tolstoy’s have pondered. It is this: That
little book, The Law of Love and The . .
among all the differences which ex-

Law of Violence. Published posthumously :
(1948) by R. Field, New York, ist, the only ones that interest us

18


===== PAGE 21 =====

1962 VIOLENCE AS A WAY OF LIFE 19

strongly are those we do not take an exemplification of violence and

for granted.”? that such practices are multiply-
ing rapidly?
Taken for Granted The word “violence,” as here

Socialistic practices are now so used, is a particular kind of force.
ingrained in our thinking, so cus- Customarily, the word is applied
tomary, so much a part of our indiscriminately to two distinct
mores, that we take them for kinds of force, each as different
granted. No longer do we ponder from the other as day is from
them; no longer do we even suspect night, One is defensive or repel-
that they are founded on violence. lent force. The other is initiated
Once a socialistic practice has been or aggressive force. If someone
Americanized it becomes a member were to initiate such an action as
of the family, so to speak, and, as flying at you with a dagger, that
a consequence, is rarely thought of would be an example of aggressive
as having any violent or evil taint force. It is this kind of force I
attached to it. We are, in this state call violence. The force you would
of taken-for-grantedness, inclined employ to repel the violence I
to think that only other countries would call defensive force.

condone and practice violence — Try to think of a single instance
not us! where aggressive force — violence
Who, for instance, ever thinks — is morally warranted. There is

of TVA as founded on violence? none. Violence is morally insup-
Or social security, federal urban portable!
renewal, public housing, foreign Defensive force is never an ini-
aid, farm and all other subsidies, tial action. It comes into play only
the Post Office, rent control, other secondarily, that is, as the anti-
wage and price controls, all space dote to aggressive force or vio-
projects other than for strictly de- lence. Any individual has a moral
fensive purposes, compulsory un- right to defend his life, the fruits
ionism, production controls, tariffs of his labor (that which sustains
and all other governmental protec- his life), and his liberty — by de-
tions against competition? Who meanor, by persuasion, or with a
ponders the fact that every one of club if necessary. Defensive force
these aspects of state socialism is ¢s morally warranted.
—_— Moral rights are exclusively the
2 See The Will To Believe and Other attributes of individuals. They in-
Essays on Popular Philosophy (New . .
York: Dover Publications, Ine. 1956), here in no collective, governmental
p. 257. $1.65. or otherwise. Thus, political offi-


===== PAGE 22 =====

20 THE FREEMAN February

cialdom, in sound theory, can have the destructive or violent mani-
no rights of action which do not festations of human energy. It is
pre-exist as rights in the individ- a malfunction to inhibit, to penal-
uals who organize government. To ize, to interfere in any way what-
argue contrarily is to construct a soever with the creative or pro-
theory no more tenable than the ductive manifestations of human
Divine Right of Kings. For, if the energy. To do so is clearly to ag-
rights to governmental action do gress, that is, to take violent ac-
not originate with the organizers tion.
of said government, from where Now, carefully consider TVA or
do they come? any of the other socialistic proj-
As the individual has the moral ects earlier mentioned. You are
right to defend his life and prop- living peaceably and off the fruits
erty —a right common to all in- of your own labor, including any-
dividuals — he is within his rights thing which you have acquired
to delegate this right of defense from others in willing exchange.
to an organization. We have here You are aggressing against no
the logical prescription for gov- one; therefore, there is no occa-
ernment’s limitation. It performs sion for anyone’s use of defensive
morally when it carries out the in- force against you, defense being a

dividual moral right of defense. secondary action against an initi-
As the individual has no moral ated aggressive action. And, cer-
right to use aggressive force — tainly, there is no moral sanction

against another or others — a mor- for anyone or any organization to
al limitation common to all indi- take aggressive action against
viduals — it follows that he cannot you.
delegate that which he does not
possess. Thus, his organization — Subsidized Power
government — has no moral right One more step for clarity’s sake:
to aggress against another or Suppose that some people decide
others. To do so would be to em- they want their power and light
ploy violence. at a price lower than the market
To complete this picture, it is rate. To accomplish their purpose,
necessary to recognize that man’s they forcibly (with guns if neces-
energies manifest themselves sary) collect the fruits of your
either destructively or creatively; peaceable labor in the form of
we might say violently or produc- capital to construct the power
tively. It is the function of gov- plant. Then, they annually use
ernment to inhibit and to penalize force to take your income to de-


===== PAGE 23 =====

1962 VIOLENCE AS A WAY OF LIFE 21

fray the deficits of their operation citizen pause for reflection when
— deficits incurred by reason of he awakens to the fact that the
the sub-market rates they charge people of his country are abandon-
themselves for the power and light ing the ideal of love and drifting
they use. The questions I wish to into the practice of violence as a
pose are these: Is any set of per- way of life? The fact that this
sons, regardless of how econom- catastrophic change is taking
ically strapped they may be, mor- place without many persons being
ally warranted in any such action? aware of it is all the more reason
Would not this be aggressive ac- to sound the alarm,
tion? Would not their project be It is easy to demonstrate that
founded on violence? The answers all state socialism, of which TVA
to these questions are inescapably is an instance, is founded on vio-
clear. There is hardly a person but lence, Take the farm subsidy pro-
would declare this thievery and gram, for example. Let us say that
criminal. your share of the burden of this
Very well, Move on to TVA. socialistic hokus-pokus is $50.
What distinguishes this from Should you absolutely refuse to
that? Not a thing, except that in pay it, assuming you had $50 in
the case of TVA the immoral, ag- assets, you would be killed — le-
gressive, violent action has been gally, of course — here in the
legalized. This merely means that United States of America in the
the law has been fixed so as to ex- year of Our Lord, 1962! If that
onerate the “beneficiaries” from isn’t resting the subsidy program
penalties common to criminal ac- on violence, then, pray tell, what
tion. There is no altering of the is violence?
fact that TVA, as well as all in-
stances of state socialism, are
founded on violence! Here's how to get yourself
Most people are inclined to scoff killed: When you get your bill
at this idea simply because they from the Internal Revenue Serv-
have never witnessed any instance ice, remit the amount minus $50
of actual violence. They are blind- with these words of explanation:
ed by the common acquiescence to
socialistic pressures, once they are
legalized. Everybody goes along,

Absolute Refusal To Pay

“I do not believe that citizens
should be compelled to pay farm-
ers for not producing. I do not
so what! believe in the farm subsidy pro-

Before going further, isn’t it gram. My share of the cost is
enough to give any conscionable $50, which I have deducted. Do


===== PAGE 24 =====

22 THE FREEMAN February

not try to collect for I absolutely But to accede to their invitation

refuse to pay for same.” to vacate would be to pay. With

The IRS will quickly inform you your “absolutely” in mind, you re-
that this is a matter in which free- fuse. At this point the officers will
dom of choice does not exist and try to carry you off your property,
will demand that you remit the ag peaceably as possible, of course.
$50. But to let them carry you off would

You respond by merely refer- be to acquiesce and to pay. You
ring the IRS to your original let- might as well have acquiesced in
ter, calling attention to your use the first place. At this stage of the
of the word “absolutely.” proceedings, in order not to pay,

When the IRS becomes con- you have no recourse but to resist
vinced that you mean business, physical force with physical force.
your case will be referred to an- It is reasonable to assume that
other branch of the government, from this point on you will be
the judicial apparatus. It being mentioned only in the past tense
the function of the judiciary only or as “the late Mr. You.” The rec-
to interpret the law, the law mak- ords will show that your demise
ing it plain that a government was “for resisting an officer,” but
claim has first lien on one’s assets, the real reason was that you ab-
a decision will be rendered against solutely refused to pay farmers
you and in favor of the IRS. If for not growing wheat or what-
you have no assets but your home, ever.

the Court will order it put on the Rarely will any citizen go this
auction block and will instruct you far. Most of us, regardless of our
to vacate. beliefs, acquiesce immediately on

At this point you will apprise receipt of the bill from the IRS.
the Court of your letter to the But the reason we do so is our rec-
IRS and your use of the word “ab- ognition of the fact that this is an
solutely.” area in which freedom of choice

When the Court becomes con- no longer exists. I, for instance,
vinced that you mean business, would never give a cent of my in-
your case will be referred to an- come to farmers not to grow
other branch of the government, wheat were I allowed freedom of
the constabulary. In due course, a choice in the matter. But, real-
couple of officers carrying arms izing that the farm subsidy pro-
will attempt to carry out the gram rests on violence, it takes
Court’s instructions. They will no more than the threat of vio-
confront you in person. lence to make me turn part of my


===== PAGE 25 =====

1962 VIOLENCE AS A WAY OF LIFE 23

income over to farmers for not acquaint you with all the facts in the

growing wheat. case.
Public Law 761, 83rd Congress, ef-
The Penalty Is Death fective January 1, 1955, extended So-

cial Security coverage so as to in-
clude farm operators. A tax on the
self-employment income of these peo-

The idea that the whole weari-
some list of socialistic practices
re sts on violence and that the ul- ple is imposed and they are required
timate penalty for noncompliance report this tax on their annual
13 death, was written and pub- federal income tax return.
lished in 1950.2 Many have read The Old Order Amish are the most
the booklet and an explanation of conservative of the Amish groups
the same idea has been given be- and have taken the position that al-
fore many discussion groups though they will comply with taxes,
throughout the country, but the as such, Social Security payments, in
reasoning has never been chal- their opinion, are insurance premi-
lenged. Yet, I am unaware of any ums and not taxes. They, therefore,

3 “« : ” -
instance where an individual has will not pay the “premium” nor ac
cept any of the benefits.

gone all the way, that is, has ab- 1 410 £41] of 1956, the IRS district
solutely refused to pay and gone director at Cleveland held meetings

to his death for his beliefs. One ith Amish farmers and their church
farmer went so far as to leave the officials in an effort to solicit coop-
country, and quite a number of eration and voluntary compliance
citizens have delayed their acqui- with the laws we have to administer.
escence considerably, that is, they At these meetings, it was explained
have carried their revolt beyond that the self-employment levy is a
immediate payment mixed with tax and that it would be the respon-
grousing. One of the most inter- sibility of IRS to enforce this tax.

esting examples is reported by As a result of these meetings and
IRS in a news release dated May of letters sent to the individuals in-
15. 1961: volved, the majority of Amish

farmers in that general area volun-

tarily remitted the tax. With re-

spect to those who refused, it be-

came apparent that some did not

wish to contravene the dictates of

their church, but they also did not
This memo is designed merely to want “trouble” with IRS.

— . Thus, a portion of these farmers
3 See my Students of Liberty (Foun- . ;

dation for Economic Education, Ine, did not pay the tax, but did make

Irvington, N. Y.), pp. 7-8. 50¢ paper. the execution of liens possible by

Considerable public and press mis-
understanding exists over the seizure
of three horses from a Pittsburgh
area Amish farmer who refused to
pay Social Security taxes because of
religious convictions.


===== PAGE 26 =====

24 THE FREEMAN February

maintaining bank accounts which of $37.89 which was returned to the
covered the tax. taxpayer.

The current problem stems from The Byler case like all others in
the “hard core” group of Old Order the same category present an un-
Amish farmers who closed out their pleasant and difficult task for the
bank accounts and made such levy Internal Revenue Service. However,
action impossible. As a result, the there is no authority under which
IRS was forced to collect 130 delin- Amish farmers may be relieved of
quent taxpayer accounts from Amish liability for this tax.
farmers in the past two years. With respect to those who remain

Valentine Y. Byler of New Wil- adamant in their refusal to pay, as
mington, Pennsylvania became the in the case of any person who re-
latest collection problem among the fuses to pay any federal tax that
Old Order Amish. He owed the fol- is lawfully due, it is incumbent on the
lowing self-employment tax: Internal Revenue Service to proceed

with collection enforcement action as

Too eer $82.60 provided by law.

Tos 76.57 We have no other choice under the
1958 ooo, 32.98 law
1959 «ooo, 65.63 ’

The foregoing taxes amounted to Had our Amish friend, Valen-

same period was $51.18, making a8 {he point he did but had gone all
grand total of $308.96 owed by the way in his determination, he
taxpayer. ld have employed physical
Attempts had been made since wou . ploy phy
1956 to induce Mr. Byler to pay his force against the officers who
tax willingly, but with no success. Seized his three horses. In this
Since Mr. Byler had no bank account event he would now be known as
against which to levy for the tax “the late Valentine Y. Byler.” He
due, it was decided as a last desper- would have established beyond a
ate measure to resort to seizure and shadow of doubt that the social se-
sale of personal property. curity program, as well as all
It then was determined that Mr. other socialistic practices, is
Byler had a total of six horses, 80 it founded on violence.
was decided to seize three in order to
satisfy the tax indebtedness. The They Did Their Duty
three horses were sold May 1, 1961 .
at public auction for $460.00. Of this 1° 18 important to acknowledge
amount $308.96 represented the tax at this point that the IRS did
due and $118.15 represented ex- Precisely what it should have done,
penses of the auction sale including This agency of government is not
feed for the horses leaving a surplus in the business of deciding the


===== PAGE 27 =====

1962 VIOLENCE AS A WAY OF LIFE 25

rightness or the wrongness of a farmer's three horses as when
tax. Its job is to collect regardless collecting a fine for embezzlement.
of what the tax is for. Yet, the former is an exercise of
The judiciary, having previ- aggressive force —violence — while
ously ruled on the powers of the the latter is an exercise of defen-
IRS to make such collections, ac- sive force. The former has no
curately interpreted the law and, moral sanction; the latter is mor-
thus, did what it should have ally warranted. How can two
done. police actions which ultimately
The constabulary, in seizing manifest themselves in an identi-
the three horses, was properly cal manner actually be opposites?
performing its function. This This is like asking how two shots
agency, unless derelict in its duty, from a pistol can be identical
has to look as indifferently on when one is used to protect life
seizing the horses and harnesses and property and the other is used
of a gentle, God-fearing farmer as to take life and property. The
bringing a John Dillinger to bay. shots are wholly indifferent as to
They are properly called law en- how they are used. The pistol
forcement officers. And, had Mr. shots, like the IRS, the judiciary,
Byler resisted with physical force, the constabulary, only do the bid-
the constabulary would have been ding of someone’s mind and will.
performing its duty had it been It is the bidding which determines
found necessary to put Mr. Byler whether they are part of a defen-
out of the way, as it did Dillinger. sive or an aggressive action. The
Theirs is to carry out the law, not law, and the people who are re-
to reason why! sponsible for it, determine
The fault here is with the law, whether a police action is defen-
the three above-mentioned parts sive or violent.
of the political apparatus being
but effectuating arms of the law. A Simple Test
And the fault with the law rests There is, however, a simple way
with those who make the law and to decide whether a governmental
with those of us who elect law- action is an exercise of defensive
makers and who, presumably, have force or an exercise of aggressive
some powers to reason what the or violent force: “See if the law
law should be. takes from some persons what be-
The IRS, the judiciary, the con- longs to them, and gives it to
stabulary, behave exactly the other persons to whom it does not
same when seizing the Amish belong. See if the law benefits one


===== PAGE 28 =====

26 THE FREEMAN February

citizen at the expense of another American polity. State socialism

by doing what the citizen himself — every single item of it—is
cannot do without committing a founded on violence!
crime.’ Alexander Barmine and Victor

Using the above as a basis for Kravchenko, both of whom rose to
determination, it is obvious that top posts in the Kremlin heir-
every act of socialism is founded archy, escaped from Russia and
on violence. came to this country because they

The fact that the IRS found it could not stomach the purgings
expedient to make a public ex- and shootings that logically fol-
planation in the face of severe lowed the policies which they
criticism throughout the country, themselves had a hand in pro-
merely lends credence to the fact moting.? Let the principle of vio-
that most people — even those who lence continue in this country —
support socialistic legislation — do even fail to rid ourselves of what
not know what they are doing nor we have — and gangsters only will
did they mean to do what they come to occupy high political of-
did. Simply because most of us fice. Few of the present crop of
meekly acquiesce, that is, uncom- bureaucrats are heartless enough
plainingly go along with the ma- to administer socialism in its ad-
chinery of socialism, we tend to vanced stages.® Violence is not
lose sight of the fact that it is their dish. The IRS folks demon-
founded on violence. The seizing strate this,
of the Amish farmer's three That policies founded on vio-
horses generated widespread feel- lence are growing is self-evident.
ings of remorse and resentment. Take the examples of practices
Had he absolutely refused to pay founded on violence cited on page
and been killed in the process, the 19. All but the Post Office are of
American people would have pro- relatively recent vintage, and
tested, “But we didn’t mean this!” _________

Of course they didn’t mean it. 5 See One Who Survived by Alexander
Nonetheless, these projections of Barmine (New York: G. A. Putnam’s
nothing more nor less than the in- 6 To understand why gangsters rather
evitable consequences of admit- than humane human beings must occupy

; ialiati H i political office in a socialistic state, read
ting the socialistic premise into “Why the Worst Get on Top” in F, A,

4 Sec The Law by Frederic Bastiat Hayek’s The Road to Serfdom (The Uni-
(Foundation for Economic Education, versity of Chicago Press), Obtainable
Irvington, N. Y., 1950), 76 pp. $1.00 pa- from The Foundation for Economic Edu-
per; $1.75 cloth. cation, Irvington, N. Y. $1.50 paper.


===== PAGE 29 =====

1962 VIOLENCE AS A WAY OF LIFE 27

clamor for more of the same rights. There is no third alterna-
seems to increase daily. tive.

I can still remember when the Those who accept the Creator
income of farmers came from concept can never subscribe to the
willing exchange; when people practice of violence in any form.
lived in houses built with the They have been drawn to this
fruits of their own labor; when concept, not coerced into it. If we
wage earners, for the most part, would emulate, as nearly as we
were no more compelled to join can, that which we have learned
unions than businessmen were from this relationship, we would
forced into chamber of commerce confine ourselves to this same
membership or parents into the drawing power. As Gerald Heard
P.T.A. Violence as a way of life so clearly puts it: “Man is free to
was in those days perhaps at an torture and torment himself until
all-time minimum. he sees that his methods are not

Man either accepts the idea those of his Maker.” ®
that the Creator is the endower of 7 Gerald Heard, editor, Prayers and
rights, or he submits to the idea pegitations (New York: Harper &
that the state is the endower of Brothers, 1949), p. 39.

He Might Have Known

CHARLES II, monarch of England from 1660 to 1695, tried to avoid
uneasiness and trouble and was noted for generous gifts of money
and honors. The description by the Marquis of Halifax of The
Character of King Charles II aptly fits many characters of the
twentieth century as well:

“He thought giving would make Men more easy to him, whereas
he might have known it would certainly make them more trouble-
some. . . .

“When Men receive Benefits from Princes they attribute less to
his Generosity than to their own Deserts; so that in their Opinion
their Merit cannot be bounded; by that mistaken Rule it can as
little be satisfied. They would take it for a diminution to have it
circumscribed. Merit hath a Thirst upon it that can never be
quenched by Golden Showers. It is not only still ready, but greedy
to receive more. This King Charles found in as many instances as
any Prince that ever reigned, because the Easiness of Access in-
troducing the good Success of their first Request, they were more
encouraged to repeat those Importunities which had been more
effectually stopped in the Beginning by a short and resolute
Denial.”


===== PAGE 30 =====

HAROLD M. FLEMING

SHARING i! \THE GAINS

All economic gains must be even- other people have to offer. But
tually shared. That is a basic prin- they also have to share a part of
ciple of such broad application the values they themselves have to
that it might be called a general offer.
“law of economics.” A million deals, agreements,
This is not socialism. It is the trades, contracts, and bargains
essence of the free economy. Nor are made every day in this coun-
is it “re-distribution.” It is plain try. They are all voluntary, and
distribution, or diffusion of go on the same principle as that

wealth. of the most primitive barter be-

It works this way: tween Indians and fur-traders.

1. All business is done by agree- Both sides gain, or think they
ments of some kind. gain.

2. The agreements are volun- This is the difference between

tary. ours and the communist system

3. Nobody agrees to anything —or any army system. (The com-
unless he finds it in some way munists, in fact, seem to feel that
to his advantage. a deal is something like matching

These add together to make the coins. One man’s gain must be

essential reason why economic another man’s loss.)

well-being is more widely dis- But because of this principle of
tributed in the United States than sharing, or “letting the other fel-
it ever has been in any other low make a profit, too,” the free
country. economy is one of history's great-

For in a free economy, every- est mechanisms for the diffusion

body gets a share of the values of wealth.

28


===== PAGE 31 =====

1962 SHARING THE GAINS 29

What Pulls up Wages uct per hour of the time he buys,
This principle of sharing ap- the time gets more valuable to
plies to all markets, including the him, and he can, and eventually
market for labor, The workman will, one way or another, share the
with labor to sell has been for gains with the workman — even
150 years the most consistent though the increased productivity
gainer from this sharing prin- may be due in large part to better
ciple. This is because, though machinery and management.
labor is a commodity, the price of
which is subject to supply and de- The Blessings of Competition
mand, it is a unique commodity. It This is because if he doesn’t,
enters into every kind of produc- then even more successful and am-
tion, and as productivity in- bitious employers will outbid him
creases, the workman shares in in the labor market. His rate of
the increase. “qualified applications” will go
The hope of profit in new and down, and his quit-rate will go up.
growing industries forces em- If then he can’t afford to “meet
ployers in those industries to bid the (rising) market” for work-
up for labor. This force has caused men’s time, he is on the way to
them to bid millions of people going out of business.
from off the farms, from out of This is the “magic formula of
depressed areas and out of domes- productivity,” which class-con-
tic service, and even from across scious European economists and
the Atlantic. The best and the employers failed to grasp. It is
most new jobs are normally found what Henry Ford meant when he
with the most optimistic em- said, “There is no conflict, in a
ployers who have the strongest machine economy, between low
hope of profit. And it is such labor costs and high wages.” This is
markets that over the decades why the world’s highest-paid
have steadily lifted wages. labor (per hour of workman'’s
The point where the workman time) can be and often is the
repeatedly benefits from the shar- world’s lowest-cost labor (per unit
ing principle is in the wage-bar- of output) ; whereas in some parts
gain. It is the peculiar nature of of Asia and Africa, labor is so
this bargain which benefits the expensive, in output or produc-
workman. What the employer buys tivity, that it is the lowest-paid in
is time. But what he sells is units the world, and in some cases
of product (or service). So as fast scarcely worth any wage at all.
as he can get more units of prod- This is also why labor is a


===== PAGE 32 =====

30 THE FREEMAN February

unique commodity, the market for {ive plant, and bids for people to
which is normally quite different man it, This notches up the labor
from that of all other commodi- market. But there is no such mar-
ties. The result of the produc- ket for the outmoded plant. It is
tivity formula is that, in a free on the way to the scrap heap.

and progressive economy, and par- Perhaps this story might be
ticularly in manufacturing indus- criticized as skipping too easily
tries, the price of an hour of over the problem of technological
labor normally and indefinitely unemployment. It might be said
tends to rise, while the price of that workmen can’t move that
manufactured goods normally and fast, and labor is not that mobile.
indefinitely tends to fall (or tends But they can move. Their time
toward better goods for the same still has value. An outmoded plant

price). can’t move. It has no more than
scrap value. There is no market
The Costs of Obsolescence today for steam locomotives ex-

But, it might be asked, “Why cept with the wreckers — nor any
doesn’t the employing manufac- market for the shops that built
turer's net return on sales also these locomotives. But there is
keep rising indefinitely ?” still a market for the time of the

Obsolescence and competition men who used to build and drive
are the combined reason. They steam locomotives — though it may
are the two blades of the shears have taken them some time to find
which keep clipping away the em- it, @®
ployer’s gains. While the tide of

increasin roductivity continu-
cre gp y Mr. Fleming, for many years New

ally works to increase the value of York Business Correspondent of the
: . : ristian Science Monitor, is a prom.
the workman’s time, it continu- inont free tance writer on business
3 and economics.
ally pushes against the value of rp hig article is a brief excerpt from
! i ‘The American Achievement’ -— the
the employer 3 . investment. For story of how history and economics
example, he builds a new plant, and politics and human initiative
. . combined in America to achieve
with new machinery, to market a freedom, prosperity, growth, and
: strength — from the August
new product. It is a more produc- issue of Canco Magazine, Y publica.
i tion of the American Can mpany.
tive plant, and he pays more for N A Tomy of the fall font PORTH
i . merican Achievement,” in an at-
labor, accord ng y. tractive 6 x 9 booklet, may be ob-
But in time this employer, or tained for 15 cents from The Freo-
. . . man, lrvington-on-Hudson, New
a competitor, or a competing In- York.

dustry, builds a still more produc-


===== PAGE 33 =====

Or — GRANDPA WOULD CALL IT RUSTLING

The snow was drifting in the street
And frost was in the air

When Kaspar pulled the shutters tight
and settled in his chair,

While Peterkin and Wilhelmine

Warmed up the television screen.

They saw a gang of men invade
A big department store
And force the customers inside
To lie upon the floor,
While clerks were made to open tills
And package crumpled dollar bills.

“Is that a gang of robbers there?”
The little children cried.
“They say they're Profit-Sharing now,”
Old Kaspar soon replied.
“They’ll leave enough to run the store
Until they come around for more.”

“Those crumpled bills,” said Peterkin,
“Look old and all defaced.”

“They dare not take,” Old Kaspar sighed,
“‘A bill that could be traced.

A man without a union card

Finds profit-sharing lean and hard.”

“Do unions have a better plan?”
Asked little Wilhelmine.
“The unions have the legal right
To strip the coffers clean.
That’s why they seldom have to shoot
To get possession of the loot.”

“Why don’t these men join unions then?”
Asked little Peterkin.
“The union bosses,” Kaspar smiled,
“Refuse to take them in.
The unions can’t afford to look
Like havens for a thief or crook.”

H. P. B. JENKINS
Economist, Fayetteville, Arkansas

31


===== PAGE 34 =====

ROBERT LINCOLN O'BRIEN AY A )

b.

Nancy Hanks: I see the calendar Nancy Hanks: What do you
says it is 1962, more than seven mean? More money than I ever
score years after my life in the saw in my life spent on my grave,
world ended. Pray tell me, Spirit more than 60 years after I had
of the Present, whether anyone made it! Was he a rich descendant
remembers that I ever lived, or of mine?
knows my place of burial.

The Spirit of the Present: Oh,
yes. There is a monument over
your grave at Pigeon Creek. A
man named Studebaker of South
Bend, Indiana, went there in 1879
and spent $1,000 in making it.

The Spirit of the Present:He
was no relative of yours, As a
matter-of-fact citizen, he thought
your grave ought to be marked.
Twenty-three years later the state
of Indiana erected a massive
monument in your honor; 10,000
The imaginative intorview reproduced here be- school children marched in pro-
tween Nancy Hanks, the mother of Abraham . . :
Lincoln, and “The Spirit of the Present” wos  CeSSION when it was dedicated.
editor of the Boston Horald, Minar thorations The Governor of the state, now
have been made in the text to bring it up-to- one of the great commonwealths
Hlustration: The Bettmann Archive of the union, was there, while a

32


===== PAGE 35 =====

1962 NANCY HANKS’ BOY 33

distinguished general from afar sad little boy? He was not very
delivered the principal oration. well when I left him. All that win-
This monument cost a larger for- ter he seemed ailing. I hated to
tune than you ever knew anyone go away. I was afraid his father
to possess. More people than you could not give the care that the
. ever saw were there. And on the frail little fellow needed. Did you
pedestal, in raised letters, one may ever hear what became of my little
read: “Nancy Hanks Lincoln.” nine-year-old boy out there in the
Can there be any mistake about woods of Pigeon Creek?
that?
. } The Spirit of the Present: Of
Nancy Hanks: What is this oor T have heard what became
wonder of wonders? I realize that ,f him. Few have not. The people
my mortal remains, enclosed in 2 ho could answer your question
rough pine box, were buried under pymher hundreds of millions to-
the trees at Pigeon Creek, and that day. There is no land and no
no minister of religion was there tongue in which the information
to say even a prayer. I supposed yo, seek could not be supplied,
that if anybody in all this earth ,,4 usually by the “man in the
of yours would be surely forgot- street.” Millions of people know
ten, and soon forgotten, it would that the twelfth of February was
be Nancy Hanks, the plain woman {pe day you welcomed into your
of the wilderness. My life was ¢ahin in the frontier wilderness
short — only 35 years —and in it I that little boy. His birthday, in
saw little of the great world, and thirty-four states of the Union,
knew little of it, and on going jncluding the imperial state of
out had little further to expect New York, has become a legal holi-
from it. So, I pray, break to me Jay Most of the others hold some
the meaning of this mystery! commemorative exercises. When

The Spirit of the Present: This the great financial market of the

. world opened in London this morn-
h fth F ! . . .
is the twel day of February ing it was with the knowledge

Nancy Hanks: That was the that the United States of America,
birthday of my little boy, a slender the great republic over the seas,
awkward fellow who used every would record no stock transac-
night to climb a ladder of wooden tions this day. The words, “No
pins driven into a log, up into a market—Lincoln’s Birthday,” trav-
bed of leaves in the loft, and there el on wireless and ocean cables
to dream. Whatever became of that under every sea; and business in


===== PAGE 36 =====

34 THE FREEMAN February

the great buildings, as many as death he expected soon to be
102 stories high, has paused to- thrown out of the position he was
day. holding, and so he wrote a letter
telling how he would strive to help
his successor to carry out the un-
finished task. Your little boy saw.
so little to indicate the place that
The Spirit of the Present: If time has accorded him. His wid-
you had one copy of every book ow was hardly able to get from
that has been written about him, Congress a pension large enough
you would have a larger library for her comfortable support, and
than you ever saw in your mortal yet that same body, in less than
life. If you had visited every city a half century, appropriated $2,-
which has reared his statue, you 000,000 —stop to think of that —
would be more widely traveled for a national monument in his
than any person you ever saw. The honor.
journey would take you to several But I could tell you only half
European capitals. Every possible the story. Men have retired from
word that he ever wrote, every business to go into solitude to
speech he ever made, every docu- study his life. Others have been
ment he ever penned, has been col- famous by reason of having known
lected and these have all been him. I recall a New York financier
printed in sets of books with a full- who had known the high life of
ness such as has been accorded the world, mingling with the
to the works of only a few children princes and statesmen of nearly
of men. You could count on the every land. On his seventieth
fingers of two hands, and perhaps birthday his friends gave him a
of one, the men in all secular his- complimentary dinner. He chatted
tory who so vitally appeal to the with them on what he had seen
imagination of mankind today. and where he had been. But he
dismissed all the honors of the
big world by saying that the one
thing he valued most in his three-
score years and ten was that he
The Spirit of the Present: He had shaken hands and conversed

died at 56, as unaware of how the in private audience with your lit-
world would eventually regard him tle boy, whom he pictured as
as old Christopher Columbus him- “leading the procession of the im-
self. A few months before his mortals down the centuries.”

Nancy Hanks: Pray tell me more
of my little boy’s life. I cannot
wait to hear what it all means!

Nancy Hanks: And so my little
boy came into all this glory in his
lifetime!


===== PAGE 37 =====

1962 NANCY HANKS’ BOY 35

Nancy Hanks: This is beyond experiment, the life of Abraham
me. I am lost in mystery and a- Lincoln. And, when we are our-
mazement. What did my boy — that selves tempted in the mad com-
earnest, sad little fellow of the plexity of our material civiliza-
woods and streams — do to make tion to disregard the pristine
men feel this way? How did it all ideals of the republic, we see his
come about? gaunt figure standing before us,

The Spirit of the Present: That 2nd his outstretched arm point-
might be as hard for you to un- ing to the straighter and simpler
derstand, without a knowledge of path of righteousnes 3, For he was
what has taken place in the mean- a liberator of men in bondage, he
time, as the skyscrapers and the was a savior of his country.
ocean cables and railroad trains He became President of the
that I have spoken about. But I United Bates, but that affords
will try to tell you something of small clue to his real distinction.
what he has done. Few Americans ever refer to him

as “President Lincoln.” In the

Nancy Hanks: I am hanging on idiom of our people, he is Abra-
your words. I long to hear the ham Lincoln, called by the name
story. you gave him in the gloom of the

The Spirit of the Present: We wilderness. To that name of your
have in the United States a great choosing no titles that the vain
democracy. We are making a great world knows can add anything of
experiment for the nations. Your honor or distinction. And today,
little boy gave friends of democ- from the Atlantic to the Pacific
racy the world over the largest Seas, and in places under distant
measure of confidence in its per- skies, children will recite in their
manency and success of any man schools his words, men will gather
who has ever lived. about banquet boards to refresh

More than a million people a their ideals by hearing anew some
year have come to the United phase of his wonderful story. Our
States from lands beyond the seas, nation could get along without
most of them unfamiliar with our Some of its territory, without mil-
language and our customs and lions of its people, without masses
our aims. When we Americans ©f its hoarded wealth, but it would
who are older by a few genera- be poor indeed were it to wake up
tions have gone out to meet them, on this morning of the twentieth
we have taken, as the supreme ex- century without the memory of
ample of what we mean by our your little boy. @®


===== PAGE 38 =====

the True Face of Mree Germany

WiLLiAM HENRY CHAMBERLIN

Is THE GERMAN FEDERAL REPUB- ment to achieve a new take-over of
LIC a worthy partner in the com- political power?

munity of free nations and, inci- Sparked by the grisly recital of
dentally, a remarkable illustration concentration camp horrors during
of what economic freedom can do the trial of Adolf Eichmann in Is-
in restoring a nation to prosperity rael, there has been a more or less
from wartime devastation? Or is concerted drive to convince Ameri-
it mere camouflage for lurking can public opinion that the second
Nazis, who pull all the strings interpretation of German condi-
from behind the scenes and are tions is the correct one. A best-
only awaiting an auspicious mo- selling book represents Nazism not
EP E— as a frightful aberration, a twin
Mr. Chamberlin is a skilled observer and re- . "

porter of economic and political conditions at symptom with communism of re-
oF Toot a ociurad widens ot Sa" tone volt against Western individualis-
tributor to The Wall Street Journal and many tic civilization with its Judaeo-

nationally known magazines.

Illustration: Pix, Inc. Christian and Greek and Latin

36


===== PAGE 39 =====

1962 THE TRUE FACE OF FREE GERMANY 37

roots, but as a natural outgrowth the German Federal Republic com-
of German history and German pared with the vast expanse of
character. Other works, which the Soviet Eurasian Empire, to
have not reached so wide an audi- overlook the enormous change in
ence, go still farther in trying to the European balance of power
represent Germany under Konrad caused by the Soviet conquest of
Adenauer as only one short step eastern and southeastern Europe
removed from the Germany of and the contraction of Germany
Adolf Hitler, as a state where de- within extremely narrow fron-
mocracy is despised and liberal- tiers. Along with this there is a
ism is persecuted, where most of marked resentment, in British so-
the people make little effort to cialist circles, against the new
conceal their Nazi sympathies. Germany for proving so emphati-
Behind this drive to create a cally that a combination of hard
picture of a Germany unchanged work, a normal incentive system,
and unchangeable are several and a free market economy is a
strong emotional preoccupations. far more hopeful road to national
First, some individuals, in their prosperity than an elaborate sys-
justified horror at the crimes of tem of state controls and inhibi-
the Nazis, are unwilling or unable tions.
to recognize that great numbers Finally, it is very definitely in
of Germans were also victims of the interest of Moscow, and of in-
Nazi tyranny and that there was ternational communism, to create
an honorable German resistance the image of a ‘“revenge-hungry
movement. In these individuals Bonn militarism.” Nowhere has
there is a tendency, conscious or the anti-Adenauer drum been
unconscious, to make mountains beaten so assiduously as in Mos-
out of molehills, to regard isolated cow, and for an obvious reason:
cases of hoodlumism, such as the German Chancellor's princi-
daubing swastikas, as more signif- pled and unswerving anticommu-
icant than the fact that there is nism. To inspire doubt as to the
not a single neo-Nazi deputy in character and motives of the Ger-
the German parliament. man Federal Republic would be a
Second, there is a trend, espe- propaganda feat worth many divi-
cially in England but not unknown sions to Nikita Khrushchev.
in other countries, to regard Ger- While it is easy to identify spe-
many as the only possible future cific motivations for the anti-Ger-
enemy, to refuse to look at the man propaganda which has been
map and see what a tiny speck is very much in evidence during the


===== PAGE 40 =====

38 THE FREEMAN February

last year, the allegations that are over-all indictment as false and

voiced against the Federal Repub- misleading. The small substratum

lic should be examined on their of truth is submerged in a thick

merits. The most familiar of these overlay of misrepresentation and

allegations are as follows: gross exaggeration. Take up the
1. The Germans always have counts one by one.

been and remain an incurably mili-

taristic and aggressive people. 1. German Militarism

2. There is no real democracy Historically, this allegation is
in the Bonn Republic and Ade- quite untrue. For centuries the
nauer is a virtual dictator. division of Germany into many

3. Many former Nazis or Nazi states, some of them microscopi-
sympathizers are in influential po- cally small, encouraged and in-
sitions; a case frequently cited is vited the aggression of stronger
that of Dr. Hans Globke, State neighbors. During the Thirty
Secretary in the Chancellor's Of- Years War (1618-1648) French
fice, a post roughly equivalent to and Swedes and foreign merce-
that of Presidential Assistant in naries fought over Germany and
the United States. ravaged it. Louis XIV repeatedly

4. German courts turn a blind invaded Germany. If one considers
eye to Nazi misdeeds, and the the names of the streets which ra-
truth about the Nazi system is not diate from the Paris Arc de Tri-
taught in the German schools, omphe — Wagram, Friedland, Jena

5. Neo-Nazi propaganda is ram- —or of the Austerlitz Station or
pant and influential, so that the the Rue de Rivoli, these commem-
emergence of a new Fiihrer is orate Napoleonic battles fought
probably only a question of time. far from France’s home grounds.

This writer has spent a good It was France that declared war
deal of time in Germany, before on Prussia in the Franco-Prussian
the Nazis came into power, dur- War of 1870-71. And, if Bismarck
ing the first year of Hitler's rule, set a trap for Napoleon III, the
and since the end of the war. With French Emperor made himself co-
this background of contacts with responsible for this conflict by
hundreds of Germans of varying walking into the trap. There was
social backgrounds and view- a tendency to rewrite the histori-
points, supplemented by extensive cal evidence about the origins of
reading of German newspapers, World War I in the light of Adolf
magazines, and books, I have no Hitler's unquestionable personal
hesitation in pronouncing this responsibility for World War II.


===== PAGE 41 =====

1962 THE TRUE FACE OF FREE GERMANY 39

But the judgment of Sidney B. signed to circumvent the restric-
Fay, the objective American schol- tions on Germany’s armed forces,
ar, at the conclusion of his massive there was not a trace after the ter-
work, The Origins of the World rific collapse of 1945. There was
War, is worth remembering: not a single case after 1945 when

“Germany did not plot a Euro- the occupation powers had to deal
pean war, did not want one and with any kind of serious national-
made genuine, though too belated ist conspiracy.

efforts to avert one. She was the As a matter of fact, it was in-
victim of her alliance with Aus- finitely easier to keep the Germans
tria and of her own folly. ... It disarmed than to persuade them

was the hasty Russian general to rearm when it was realized that
mobilization, assented to on July without German cooperation the
29 and ordered on July 30, while European balance of power would
Germany was still trying to bring be hopelessly tilted in favor of the
Austria to accept mediation pro- Soviet Union. Although they have
posals, which finally rendered the now modified their position, the
European War inevitable.” Social Democrats fought German

I was in Germany in 1922-23, rearmament to the last ditch.
shortly after the end of World There was an immense psychologi-
War I, and I have been in Ger- cal resistance of the Germans
many repeatedly since World War themselves to the idea of taking
II, the last time in August 1961. up arms. Now, equilibrium has
There was a tremendous contrast been restored. Young Germans ac-
in the mood of the German people, cept military service as a neces-
especially the youth, in these two sity. But nowhere in Germany to-
aftermaths of defeat. Following day does one find “militarism’ in
World War I, there was a strong the sense of glorification of war
nationalist ferment and a keen de- as something intrinsically desir-
sire for revenge. I still recall at- able. The Germans are realistic
tending a movie which showed the enough to know that they would
German War of Liberation against stand no chance if they had to
Napoleon and the cheers which face the might of the Soviet em-
broke out when the Prussian Field pire alone. They have no national
Marshal Bliicher was shown cross- army; all their divisions are com-
ing the Rhine. mitted to NATO.

Of this spirit, which also found
expression in the growth of many 2. Undemocratic and Dictatorial
illegal military organizations de- Every people has its own way


===== PAGE 42 =====

40 THE FREEMAN February

of practicing democracy. Respect seats in the new parliament. In
for leadership and authority — for the opinion of almost all political
party discipline —is stronger in observers, German and foreign,
Germany than in some other coun- the shock of this unopposed com-
tries, But for the last twelve munist action cost Adenauer his
years, the Federal Republic has clear majority and led to long bar-
maintained a stable existence un- gaining for a coalition govern-
der free institutions. Freedom of ment.
press and speech has been fully
maintained. If Chancellor Ade- 3: Ex-Nazis in Government
nauer came out with the highest It is true that some ex-Nazis
vote in four national elections, this are in government service. The
was not because the voting was Nazi regime was totalitarian, and
rigged. It was because German membership in the Nazi Party —
prestige abroad and prosperity at or at least in some Nazi-controlled
home had revived much faster organization — was for many Ger-
than any observer would have mans a condition of employment.
imagined possible in the bleak It would have been impossible to
early years of foreign occupation. staff a competent civil service ex-
To anyone who saw the ruined, clusively from people who had
hungry, economically paralyzed been in concentration camps or in
Germany of 1945 or 1946, the Fed- emigration.
eral Republic (although not the What would be a serious cause
part of Germany kept under So- for concern would be any sign that
viet occupation) would have been ex-Nazis were influencing the pol-
almost unrecognizable, booming icy of the Federal Republic along
with prosperity and steadily point- Nazi lines. But of this there is not
ed upward. the slightest proof. On the con-
The sensitiveness with which trary, it would be impossible to
German voters react to important imagine a system more different
events was vividly demonstrated from Hitler's than the one which
by what happened after the com- has developed under the leader-
munists sealed off East Berlin on ship of Konrad Adenauer.
August 13, 1961, Up to that date Nazi Germany exalted the state,
there seemed to be every probabil- cultivated a fanatical creed of Ger-
ity that Adenauer’s party, the man racial and national superior-
Christian Democratic Union, would ity, based the country’s economy
repeat its achievement of 1957 by on intensive build-up of war indus-
winning a clear majority of the tries, rejected any cooperation on


===== PAGE 43 =====

1962 THE TRUE FACE OF FREE GERMANY 4]

equal terms with its European istry of Justice, and over five
neighbors. Adenauer Germany has thousand were convicted. Since
based its economy on free private 1958 a central office for the ex-
enterprise, has been busily dena- posure of Nazi crimes has been
tionalizing and selling to small in- functioning in Ludwigsburg, and
vestors some big state enterprises, there has been a strenuous effort
has led the way in promoting close to finish prosecutions of war crim-
European integration, and has inals before the statute of limita-
been, if anything, a little laggard tions comes into effect.
in building up to very modest It would be impossible to claim
goals of defensive military power. that every school in Germany
gives full instruction on the crimes
4. Prejudiced Judges and Teachers of the Hitler period. Local condi-
Most of the relatively few cases tions and parents’ sentiment enter
of serious anti-Semitic actions into the picture, and there is dif-
have led to court trials, Nearly all ference of opinion among educa-
the more unregenerate Nazis live tors as to the proper age when
abroad — the surest sign that they children should be told stories of
would not be welcome in the Fed- revolting crimes. But the sugges-
eral Republic. There has been a tion that German schools are sys-
serious, determined, and fairly tematically covering up the sins of
successful effort to bring to legal the Hitler period is quite false.
account those Nazis who commit- On this point the testimony of Dr.
ted crimes that were inexcusable, Benjamin Fine, former education
even by wartime standards: mur- editor of The New York Times
ders and torture in concentration who made a detailed study of the
camps, in Germany and in occu- German education system in the
pied countries. summer of 1961, is worth quoting:
In the first years after the end “With the exception of a small
of the war, war crimes trials were unimportant fringe of neo-Nazis,
reserved to the Allied powers and the overwhelming majority of
led to 5,000 convictions and 806 German youth believes in the de-
death sentences, some of which mocracy of the Federal Republic...
were commuted. Since German “Hitler and his philosophy are
courts took over, more than 30,000 dead, as far as German youth are
people were prosecuted for war concerned. Perhaps some traces of
crimes, according to Walther his influence still linger in neo-
Strauss, a conservative anti-Nazi Nazi circles, but this is little more
who is State Secretary in the Min- than the ‘lunatic fringe’ you could


===== PAGE 44 =====

42 THE FREEMAN February

find in any country. Films show- all opposition. Look how different
ing Hitler or his followers are met the situation is today. Bonn is not
with laughter or scorn. Schools Weimar, During the existence of
stress the evils that Hitler and the Weimar Republic we had 21
the Nazi regime did, and the de- changes of Cabinet. Up to 1961
struction they caused to Ger- we had only one Chancellor, Kon-

many.” rad Adenauer, Instead of a score
of discordant parties in parlia-

5. Neo-Nazi Propaganda ment we have only three parties
What about the strength and in- represented now in the Bundestag
fluence of the “neo-Nazis’’? Po- —and all these three, however

litically, it is as close to zero as they may disagree among them-
possible. Of the little groups like selves, are dead set against any
the Socialist Reichspartei which return to Hitlerism. And of course
are oriented in this direction, not our economic position is entirely
one member in free elections has different. Now, we have work for
been seated in the German parlia- all and general prosperity. In the
ment. In scores of casual meetings years of Hitler's rise to power,
with Germans, many in the in- there was mass unemployment and
formal atmosphere of mountain acute economic distress. We now
hikes, I never met one who de- have a younger generation that
fended Hitler or who wished to has grown up completely without
see a return of the Nazi system. Nazi influence. Every year that
Dr. Walther Strauss, who re- passes weakens any lingering ap-
gards Nazism as a terrible blot on peal of Nazi sentiment.”
the civilized German Christian There is unfortunately one part
conservative tradition, offered this of Germany where Nazi spirit and
penetrating analysis of the danger methods still prevail. This is the -
of a Nazi revival in a conversa- so-called German Democratic Re-
tion in the Ministry of Justice in public (which is neither German,
Bonn last summer: nor democratic, nor a republic),
“Compare the aftermaths of where Soviet tanks prop up the
two great wars, in which Germany hated regime of Soviet Gauleiter
suffered crushing defeat. It is Walther Ulbricht. Its popularity
now sixteen years since the end of may be gauged by one simple fact:
World War II. Sixteen years after over three million Germans have
World War I, in 1934, Hitler was fled from its territory to the pros-
in power, with a machine of terror pering Federal Republic since 1945.
and propaganda calculated tocrush Its character as a huge peniten-


===== PAGE 45 =====

1962 THE TRUE FACE OF FREE GERMANY 43

tiary has been emphasized by the legal institutions go hand-in-hand
wall in Berlin, designed to prevent with economic freedom,
the prisoners from escaping.

The brutal young Vopos (“Peo- It is high time that this non-
ple’s Police”) who shoot men, sense about rampant, triumphant
women, and children trying to es- neo-Nazism in the Federal Repub-
cape, are blood brothers, in ideol- lic be recognized for what it is:
ogy and character, with the young malicious propaganda, compound-
thugs whom Hitler recruited into ed of downright falsehood, gross
his SA and SS. But this obvious exaggeration and half- and quar-
parallel between the brutalitarian ter-truths, designed consciously or
methods of Nazism and commu- unconsciously to advance the vic-
nism never seems to occur to the tory of Soviet imperialist commu-
commentators who make a special- nism and to sow distrust between
ty of baiting the German Federal free peoples who should stand to-
Republic, where free political and gether. @®

dl Dy
ith in Wendin
DaviD McCoRD WRIGHT

THE LETTER of Korean student beyond a mere travel-folder level.
Sugwon Kang (Aug. 28) which Six years ago I said that our
urged us to treat communism as propaganda was like trying to
a highly rational point of view to fight an atomic war with a pre-
which we should give rational and Revolutionary shotgun, and that
intellectual answers, is one of the we would lose out if we did not
first bits of common sense I have tackle Marxism on a fundamental
seen on this subject for some time. level.

I have been a lecturer on Marx- The truth of the matter is that
ism for years, and have striven when we undertake to answer
desperately for years to persuade Marxism intellectually, we have to
our propaganda authorities to go contradict so much of our own
Dr. Wright is William Dow Professor of Eco- policy and attitude it shocks us

nomics and Political Science, McGill Univer- . . .
sity, This article is from a letter to the editor into silence. But what will be the

in ene Wall Street Journal, September 12, end of this?


===== PAGE 46 =====

44 THE FREEMAN February

We say that foreign aid will The argument for capitalism is
make people love us. Yet we ap- the argument for spontaneous
parently dare not answer the creativity, adaptation, and growth,
Marxian doctrine which appears to But how can we present this argu-
prove “scientifically” that all our ment for adaptation when every
wealth was stolen anyhow. But if VU. S. pressure group, labor or
a man feels that you have stolen capital, is clamoring for relief
a million from him, and you stand from the need to adapt — and is
on a corner and give him $10 as being encouraged in this attitude
a handout, will that make him by those who profess to wish to
love you? Or will he not rather use re-investigate us?
it to buy a gun —to use on you? How can we argue for the need

Let me now try to indicate some of economic spontaneity when cen-
of the other problems involved in tral coordination is being

really answering Marxism. preached as the cure for all our
To show the falsity of the ills?
Marxian claim that they can cre- How can we initiate growth in

ate a state in “which the free de- other countries if we teach that
velopment of each is the condition “insecurity” is bad or when a
for the free development of all,” leading U.S. psychologist speaks
or that the root of all conflict is of our participation in the “cor-
the conflict of the “bourgeois” and porate sin” of believing in eco-
“proletariat,” it is necessary to nomic growth?
use the following line of thought: Another communist doctrine is
“The creative instinct is one of that profits are exploitation. Can
the attributes of free men. So if we answer that if we also think
we make men free they will, for most profits should be recaptured
good or ill, become creative. From either by the union or the tax col-
this spontaneous creativity will lector?
come both growth and disturb- Is our only real difference with
ance. The ultimate justification of the communists the method of
growth is thus that it is the na- obtaining the same end?
tural product of spontaneous crea- These are but samples of the
tivity. You stifle it; you stifle problems involved. The long and
creativity. Yet growth comes the short of it is we no longer
through change and causes believe in our own institutions —
change. And change upsets some at least not intellectually enough
people.” to defend them. ®


===== PAGE 47 =====

Or Loguey

EDWARD A. ROSSIT

THE END may not be in sight, but changed. Machinery does much of
man has traveled far on the road our work. Planes, trains, cars, and
to civilization. It was only a few ships travel fast and are comfort-
centuries ago when all men every- able. Transportation is cheap and
where were still quite primitive. convenient. Communication is rap-
Horses or oxen pulled plows, and id, often instantaneous. There is
ships moved with the force of the still hunger and disease in the
wind against their sails, or by hu- world, but less than there used to
man muscle-power. When men be. Clothing is cheap and good —
traveled, they were moved by and some artificial fibers seem to
horses — or they walked. Commu- last forever. Homes are (or can
nication was slow, often by direct be) clean, sanitary, comfortable,
personal contact, and there was and durable. If human slavery has
little of it. Hunger was common, not been abolished everywhere, at
and also disease, with famine and least it is regarded with such dis-
plague present to a horrifying ex- repute that individuals and gov-
tent. Clothing was expensive and ernments deny its existence. Vari-
inefficient. Homes offered little ous institutions of freedom have
more than shelter from the ele- been established in many places in
ments, and often not much of that. the world, and the natural rights of
Governments were cruel and tyran- individuals are lauded and often
nical. Very few political systems respected.
showed concern about the freedom Man has progressed far in the
of the individual or the rights of recent millennia. From a semi-ani-
man. Human slavery was practiced mal, living in caves, he has emerged
openly in many places. to dominate the face of the earth,
Today, the picture is greatly and even to ponder seriously the
Mr. Rossit does public relations work in Seattle attractions of outer space.
Washington. ’ To whom are we indebted for

45


===== PAGE 48 =====

46 THE FREEMAN February

this great legacy of civilization? new concept or defines a new re-

To whom should we be grateful? lationship.

Sometimes an entire nation or
A Few Notable Individuals cultural group seems to have been
Account for All Progress gifted, intelligent, and intensely

During the many centuries in- creative. For example, Greece in
volved, billions of people were born, its ‘“‘golden age” abounded with
lived out their lives, and died — poets, philosophers, architects,
without contributing toward this mathematicians, and statesmen.
progress, How then did it happen? Civilization spurted then. Another
And to whom, specifically, are we explosion of scientific and other
indebted? Are the heroes too nu- knowledge came to Europe after
merous to mention? Is the number the renaissance, in the eighteenth
of people responsible for progress and nineteenth centuries, The re-
unlimited? On the contrary, all sulting creativity in all directions,
progress may be attributed to a political, cultural, and philosophi-
small number of men, so few as to cal, still continues today.
constitute a ‘‘negligible” percent- Although we may be tempted to
age of the total population in attribute such advances to the na-
whichever age they lived. Never tion, or to the group or culture, it
the result of mob action, progress was always individuals who were
has come always from individual responsible. Greece had a golden
human beings. One person some- age only because there happened
where gets a new idea, conceives to be at one time and in one place
of a new thing, and all the rest of a larger than average percentage
us benefit from it. All of us owe a of gifted individuals who were
tremendous debt to this one indi- free to contribute. It was not the
vidual, for it is he who makes prog- Greek states but individual Gre-
ress possible. Mobs may roar, com- cians who were great, and who
mittees worry, delegations confer, stamped the mark of greatness on
but in the last analysis, an individ- their era. Similarly, greatness
ual human brain must conceive an came to Europe in the last three
idea before it can become effective. centuries because a large number
Often the brain is that of a genius, of great men, Europeans, happened
such as Socrates, Archimedes, Da to be living in the same area at the
Vinci, Newton, Jefferson, Goethe, same time, and were free to con-
Edison. Or, it may be a brain of tribute. These giants of history
only average intelligence. But al- stand out as individuals, and it is
ways, a lone individual creates a because of them that .advances


===== PAGE 49 =====

1962 OUR LEGACY 47

came in the countries where they contributions of these rare indi-
lived — and in the world. viduals, but often the authorities
Da Vinci, Kepler, Pascal, New- and masses have opposed, ridi-
ton, Leibnitz, Voltaire, Schiller, culed, or persecuted their benefac-
and the many others whose names tors. Roman mobs cheered when a
we remember, formed but a small gentle Christian, preaching “Do
percentage of the total population unto others as you would have
of their time. While the individual others do unto you,” was torn apart
geniuses of Greece left their marks by a savage lion. Archimedes was
on the world, thousands of other killed by a soldier possessing per-
Greeks lived and died without leav- haps but a fraction of the intelli-
ing a ripple. The great and lonely gence of his victim. Copernicus and
titans of Europe blazed new intel- Galileo were not free to publish
lectual trails, while millions of their findings. Church-approved
other Europeans contributed noth- torture forced Galileo to recant
ing. Newton envisioned a majestic publicly after he dared to suggest
and orderly relationship between that the earth revolved around the
the sweeping motion of the planets sun, Indeed, we find church history
and the sun. To most of the mil- at its worst whenever the church
lions of people then living not only has been powerful enough, through
in Europe but in the Congo, China, civil governments, to suppress
India, South America, and other freedom of thought. In our own
places, the concepts of Newton's age, a teacher was tried and found
mind would have been unintellig- guilty of crime when he taught
ible gibberish and nonsense. In- Darwin’s theory of evolution in a
deed, there .are today millions of public school.
people to whom it still is gibberish, In the Soviet Union, under a sys-
Others, in their snide, twentieth- tem of rigid “thought control,” ar-
century, half-understanding, are tists have been convicted for paint-
capable of pointing out that New- ing the “wrong” kind of paintings,
ton has been replaced by Einstein, writers for having written unen-
but know not how or why or to thusiastic poetry, and composers
what extent these great intellects have apologized in public for hav-
differed in their views of the uni- ing written the “wrong” kind of
verse. music. The fact that Shostakovich
composes at all is a tribute to the
That All May Benefit restless, imaginative, uncontain-
The great masses of humanity able spirit within him, as an indi-
have benefited from the creative vidual —a taunting rebuff to the


===== PAGE 50 =====

48 THE FREEMAN February

massive, dead hand of Soviet cen- ond alternative, which hinges on
sorship pressing down on him. governmental authoritarianism,

Here, we come to the heart of the denies freedom and discourages
matter. Creative men have always creative action. If millions of
been creative, whether the authori- Americans choose freedom, then
ties have been harsh, repressive, not only will they enjoy having it,
and restrictive, or lenient and en- but one of these millions, some one
couraging. As Deems Taylor said individual, will reward us with a
of Wagner, when a man has this new artistic creation, a revolution-
restless spirit which scratches, ary invention, or a new and pro-
claws, and struggles furiously found mathematical or philosophi-
within him for expression and for cal concept, something yet un-
release, then creation must result. dreamed of. In freedom, we could
How much more is available to all march forward to greater heights
when we let this one man be free of civilization, perhaps to a new
to create! golden age.

Any age, any system, even the The most beautiful music has
most repressive, will produce a few not yet been written. The most per-
men who are creative. But when fect painting has not yet been
we allow men to be free, we help painted. The biggest bridges, tall-
to bring about those phenomena est buildings, and longest tunnels
known as golden ages. A small have not yet been built. Gravita-
handful of free Greeks were able tional engineering, which will en-
to leave their mark upon the ages. able us to float effortlessly in the
We have already witnessed a veri- air instead of using brute rocket
table outburst of creative energy force or screaming jet engines, is
in the United States. We may now now hardly more than a science-
be on the threshold of an Ameri- fiction dream. All these things and

can Golden Age. many more will be ours after some
} one individual conceives of them.
The Alternatives Let us not curtail his freedom to

But now the people of the U.S.A. do so. Let us not stand in his way.
seem torn between two opposing
alternatives. They want personal If we extend enough freedom to
freedom which permits the release enough people, and thus release
of creative energy, and they want even a slightly higher percentage
a bogus type of security which in- of active creative genius, our gold-
volves feathering one’s own nest en age will be assured. Creative
at the expense of others. The sec- people don’t need encouragement


===== PAGE 51 =====

1962 OUR LEGACY 49

and subsidy. They just need to be ing today, who have made or will
left unmolested. Our debt for our make their contribution, If we ex-
civilized legacy is not to the state, tend freedom to ten million people
not to the authorities, not to the and one of these makes a great cre-
masses of ordinary people, but to ative contribution, it will all have
those few, very few men, some liv- been worth-while, @®

A Wolf Story

SOME YEARS AGO while in Alaska Instead, they propose to give us
we were told a wolf story. Eski- federal support. They will empty
mos imbed razor-sharp knives the federal treasury at our feet.
clasp down in the ice and apply a Now, we should know that there
little seal blood. The wolves are is nothing in the federal treasury
attracted by the blood and lick the but what we have sent there by
knives, cutting their tongues. way of the collector. These taxes
They are delighted by the seem- are our blood, and we cannot be
ingly inexhaustible supply of nourished any more than those
nourishing blood, and stand there wolves can thrive on their own
licking until they drop in their blood. But we have bought this
tracks from loss of blood, then kind of government. Today, the
freeze to death in the snow. Kentucky farmer is taxed to sub-

This is a clever trick, but we sidize the electric bills of a plumb-
are in no position to jeer at the er in Tennessee. The Tennessee
stupidity of the wolves. We Amer- plumber is taxed to subsidize the
icans have been falling for a simi- Kentucky farmer. We are trying
lar trick for a good many years. through the federal process to
The variation in our case is that nourish ourselves with our own
in Washington and in our state blood. @®

capitols are many politicians. EDITOR'S NOTE: The foregoing editorial came

Many of them are poor men, a few to us from George Rehm of Napierville, Illi-
nois, who read it in The Montana Citizen
well-to-do, but none of these pro- (Helena), which had credited the Nicholas

: : : Turkey News.
poses to give the public any of his Whether welves really are as stupid as peo-

personal estate. ple is quite beside the point of the story.


===== PAGE 52 =====

MAX S. MARSHALL

IF TRENDS mean anything, the citi- traditionally have shown a reluc-
zens of the United States soon may tance to teach or indoctrinate
be voting on the question of social- their patients. Though health de-
“ized medicine. The outcome of partments have long had bureaus
such balloting might well depend of public health education, these
on an understanding of four ma- formerly functioned largely as
jor principles of medical relation- passive distributing centers. A
ships. school wanting information on

Let the first be labeled a princi- how to brush teeth would be pro-
ple of indoctrination. With the vided with a chart, or a lecturer
same root as the word “doctor,” would be assigned if a women’s
meaning one who teaches, ‘“indoc- club wanted to know about vac-
trination” has come to signify the cines. But the initiative was in the
installation of a doctrine in the hands of the citizens. News arti-
recipient, an imposition; whereas cles about medicine used to be
teaching, akin to education, is a generally regarded as morbid, in-
leading out process, a guidance of decent, impertinent, or unethical.
the individual functioning under The principle of indoctrination had
his own power. not yet developed.

Physicians and those engaged More recently, however, a public
in "related medical professions health bulletin confides, “the more
—_— attractive the group is to its mem-
Microbiotogy Na Divermity oF Cantoot bers, the greater the influence that
Medical Center, speaks here as a citizen. the group can exert on its mem-

Though neither physician, dentist, pharmacist,

nor nurse, he has taught prospective members bers.” This exemplifies a complete
of these professions for more than thirty years, i :

Ho also was associated for many years with change in spirit. The public health
the political centers of two large departments .

of public health. man becomes, by his own fiat, the

50


===== PAGE 53 =====

1962 MEDICINE AND CITIZEN 61

Man Who Knows, and thus his world has grown callous to such
real job is to indoctrinate the ballyhoo and the dangers of a lit-
populace with this wisdom. Great- tle knowledge. Because medicine
ly concerned when the populace is complex, an unprepared mind
does not accept his dicta, he won- cannot put in its place a brief com-
ders in what way his methods of ment in lay terms. Try to consider
indoctrination are inadequate. hemorrhage as a topic and keep
Bigger and better campaigns are out of trouble: internal, external,
planned, not aimed at education sign of disease, minor traumata,
but aimed at victory, the sale of surgical, risks of infection, clot-
his point. ting, hemophilia — even to a lay-

Medical indoctrination is not man the list of complexities
limited to public health. At least mounts rapidly. Hypochondriacs
three other groups of indoctrina- may enjoy wallowing in morbid-

tors fire at us citizens. ity, but there is no need to force
One, the advertisers, are out to it upon all of us.
sell. Though seldom going outside The principle of indoctrination

of medical journals, they resort in- in medical knowledge, even in a
creasingly to high pressure ap- sense of teaching, has little to sup-
peals. Informing the medical pub- port it; but the trend is toward
lic is a worthy goal, but selling the more and more of it.
product has become a greater one,

A second category, the medical Compulsory Participation
writers, vary in their output from The second principle, allied in
excellent — such as Greer Wil- thought to indoctrination, is the
liams’ Virus Hunters, highly in- principle of compulsory participa-
formative, not sensational, and in tion. To what extent can, should,
good balance — to articles which or does an organized medical inter-
are no more than dramatic shock- est impose itself on citizens by
ers or bits of ebullient and mis- legal force? This question arises
leading optimism. Since medicine in matters of compulsory medical
to the layman is more emotional insurance, compulsory vaccination,
than scientific, only the best in school legislation, and even in the
medical writing has any place, and clinic.
even then spots for it are few. In the clinic, however, the feel-

A third group of indoctrinators ing of compulsion is minimal. No
are the medical men who write for one forces the patients who go past
public consumption in the news my window to come into the clinic.
columns and editorial pages. The They are examined and perhaps


===== PAGE 54 =====

52 THE FREEMAN February

an operation seems wise; but it effective in stopping the distri-
is suggested, not demanded. Pa- bution, yet some communities have
tients may be told to come back in barred unvaccinated children from
a week, but not all do; and no one public schools. This is bigotry, not
sends a policeman after them. medicine.
Even when a physician tells a pa- The live vaccine operates differ-
tient to stop drinking lest he drop ently and in theory might block
dead, that patient is on his own some distribution of the virus (it
after the warning. will not stamp out the disease),
Compulsion is not part of the but it also offers new risks. Its
language or the way of life of effect on a whole population cannot
trained physicians. In public be known for some years because
health, however, are to be found polio, despite all the advertising,
all sorts of born missionaries, is still relatively uncommon. Its
compulsive thinkers. outbreaks or ups and downs are
“The new state law requiring notoriously uncertain. Based on
compulsory polio shots for school the record, the injection of salt
children will not go into effect un- solution the year before would
til. .. .,”” says a recent news item. seem to have been effective in
The matter is of particular inter- many years. Is it not odd that the
est to me, and I had followed it, urge to make a vaccine compulsory
but this was my first information is so often associated with prod-
that such a law was even being ucts which would seem to work
considered. The compulsive think- successfully, regardless of their
ers, annoyed at the slow response value? Consider, for example, that
to their publicized campaigns, had a lump of sugar, backed by a little
moved very quietly to the legis- ritual, would seem to prevent polio
lative halls. Instead of raising the 9,999 times out of 10,000 on the
question to find the truth, their average. That is pretty good bat-
goal is to convince the legislators ting!

that they, the proponents, are As for compulsory insurance,
right in knowing what is good for listen to the proponents as they
all of us. try to play God. They claim, for

In this instance, one of the most instance, that some improvident
open questions about the use of folk will never take out insurance
polio vaccine is the effect it has unless they are forced. The im-
on the distribution of the virus of plication is that “of course you
poliomyelitis. The inactivated vac- and I would not be so foolish.”
cine is generally known to be in- Once on a time a U. S. citizen had


===== PAGE 55 =====

1962 MEDICINE AND CITIZEN 53

a constitutionally respected right a decisive person, a chooser of
to be foolish, and a corresponding blacks and whites, whose decisions
duty to abide by the consequences, are as clean as his wounds: the
We are developing a race in which leg may come off or it may not,
everyone seems slightly annoyed but it will never come half way
at his own duties. Under this at- off. The general practitioner on
titude we are ready to save the the other hand, is likely to be more
other fellow’s soul at the drop of palliative, gray, less sure, more
a hat. tolerant to theory, able to feel
optimistic about treatments in
which cause and effect are almost
This brings us to a third cate- never clearly related as they are
gory, the principle of trespass. with the surgeon.
One of the oldest debates in the But most general practitioners
realm of public medicine arose call on specialists quickly when
when federal agriculturalists, in the going gets tough; and most
charge of food and cows, found specialists check on background,
themselves embroiled in problems relating their tasks to the whole
of health over which othersclaimed patient. In their puzzling and oft-
jurisdiction. Is the use of weed en puzzled relationships with lay-
killers, sprays, preservatives, men, physicians prefer not to tres-
freezing methods, or milk from pass outside their fields even as
tuberculous cows a problem for the much as they should.
Department of Agriculture or for Again, public health affords a
the Department of Health, Educa- prime exhibit of trespass. Public
tion and Welfare? With no ab- health education was pedestrian,
solute answer demonstrable, polit- so it shifted from education to
ical jockeying decides the issues. indoctrination. Calling some of
- In medicine the “general practi- its problems essentially solved —
tioner” is in a sort of gentlemanly safe milk and water, quarantine,
opposition to the specialists: sur- marked reduction in tuberculosis,
geons, heart specialists, otorhino- less spectacular epidemics — pub-
laryngologists, ophthalmologists, lic health sought other fields of
and so on. But physicians are by glory.
no means so sure of the answers Does the health official admit
as they may seem. that the perfect measure of his
True, distinctions among spe- progress would be the rate of re-
cialists may rest on profound dif- gression of his staff and duties?
ferences. A surgeon is likely to be Not by a jugful! And so the health

In Whose Jurisdiction?


===== PAGE 56 =====

54 THE FREEMAN February

official seeks drama and a basis method for policing medicine.

for expansion. He trespasses, From my ringside seat I have
grasping everything in medicine seen, I think, that medical men
which is not tied down. had pretty well ironed out the

Property is condemned by a sociology of medicine. They are
health department, unless the city completely baffled by an uprising
officials own it — the same health of a citizenry for which they have
department that moans because been caring, a citizenry which has
agriculture trespasses. Epidemics little if any concept of the medi-
of measles still occur, but health cal problems involved.
officials rather scoff at such and Hospital bills are astronomical
talk preferably about the epidemi- compared to the bills of physi-
ology of heart disease and cancer, cians, for reasons some of which
problems strictly in the realm of are crystal clear. Hospital in-
physicians. They talk about auto- surance, for example, is ungov-
mobile accidents. Schools of pub- erned and means that neither
lic health, engaged in data-collect- doctor nor patients concern them-
ing —busywork which is always selves with needs and costs. Hos-
available for rainy days in all pital administration, for another
walks of life — take over statis- example, is garbled, because
tics, a mathematical field notably most doctors or other superintend-
unsafe out of the hands of mathe- ents are not trained for hotel
maticians and not always safe management.

then. As for nonmedical interference,
Co consider New York, 1947. A man
Organizational Problems with smallpox came to town and

The fourth principle of opera- went through streets, subways,
tional medicine is the principle of stores, and hospital waiting rooms
organization. Both “rugged indi- and wards. In the course of two
vidualists” and ‘organization months a dozen cases occurred;
men’ tend to agree that we need the first case and his wife died. A
(a) some answer to socialized huge campaign led to some 6,000,-
medicine, (b) some outlook which 000 vaccinations in a few weeks.
will put hospitals on realistic foot- Only a few men claimed to know
ing with medical practice, (¢) what was good for everyone; but
some basis by which medicine can the campaign was ruled by the
be kept in the hands of those Mayor, columnists, radio broad-
trained instead of being trampled casters, professional publicists
in legislative halls, and (d) some who were weak in medicine, strong


===== PAGE 57 =====

1962 MEDICINE AND CITIZEN 55

in causes and indoctrinations. The Vice-President C, who phones to
small outbreak, hardly deserving President D, who puts the question
that name, killed fewer persons up to the Board of Directors. The
than the literally countless vac- patient gets to see the doctor, in
cinations. Several hundred vac- person. This is the essence of
cinations, if that many, would medical practice, and it is signifi-
have restrained the spread (what cant.
spread?) of the disease, because Clearly, most physicians are not
this was 1947 and a high percent- interested in organizational head-
age of the population had had vac- aches. I have faced over two thou-
cine. The situation supported the sand future M.D.’s in my classes
normal vaccinating program; it and have seen many physicians in
was against hysteria. After spend- action. Almost to a man they are
ing seven to twelve years in train- bored stiff by meetings of com-
ing, on top of whatever years have mittees. When they join in debates,
been added by experience, a phy- they usually go directly to the is-
sician in cases of public hysteria sue. In their offices the patient, the
is literdlly not allowed to use his physician, and the disease are
best medical judgment, the thing paramount; neither person is in-
for which he is trained and paid. terested in extraneous rituals. If
To his own mental tortures raised doctors are not interested in the
by the medical problem are added migraine brought on by emphasis
those unbearable additional ones on organization, can they be
which society imposes. forced to function in it? I think
Policing of medicine has been not, successfully. They ignore it
tackled occasionally by the only or rise above it, and go to a patient
proper policemen, the medical somewhere and talk about kis mi-
fraternity itself. Among 170,000 graine.
persons in any field, problems of The generalization that phy-
discipline and policing are bound sicians are mercenaries is improp-
to arise. The rare medical groups er. Some of them make big in-
which acknowledge this and at- comes. Now and then one of them
tempt to do their own policing fails to report all to the Internal
are very quiet; but the best police Revenue officer, not necessarily
work is usually done quietly. deliberately, for income taxes re-
A noteworthy point about medi- quire organization. Even as stu-
cal practice is that patients do not dents a few of them indicate that
have to inquire of Flunky A, who they will seek country club prac-
asks Manager B, who consults tices and deal with patients with


===== PAGE 58 =====

56 THE FREEMAN February

incidental chronic diseases, which for clean restaurants, under-
bring in steady large incomes with standable to and tolerated by phy-
no worries. But, as a group, a good sicians, it has come to be a sort of
case cannot be made that phy- maelstrom of unpredictable propa-
sicians are mercenaries. ganda, not understandable at all.
Beyond the shadow of doubt, Thus physicians do not under-
their minds are filled with medi- stand public health folks, and vice
cal problems most of the time. versa. Several years ago a pharma-
With certainty it can be said that ceutical house discovered that, by
most of them work long and odd advancing a product through pub-
hours, with rare vacations; being lic health instead of through the
mercenary serves no purpose. The usual medical channel, they got
responsibilities they take, their free advertising and mass moves.
relative availability, their period Whereas public health stampeded
of training, their freedom of op- prematurely for polio vaccine, phy-
eration, the overhead carried in sicians then were saying quietly
an office, the cost of equipment, that they would like a few an-
their small but necessary payroll, swers yet before giving it to their
all suggest that a substantial in- patients and families.
come is earned. Public health might conceiv-
ably be better off in the hands of
physicians. Citizens could then
With the two great questions, perhaps pay for it, a prospect
the status of public health and the which seems so unlikely under
status of socialized medicine, even policies of unlimited expansion.
with risks incidental to oversim- Matters which are strictly medi-
plification, conclusions seem con- cal would then have no interfer-
spicuous. ence from public health. Matters
Public health, as it stands to- which are not medical in any way
day, is highly organizational, and would be dropped or appropriately
physicians stand away. Their pa- delegated. This suggestion, though
tients are persons rather than pop- radical, is not impossible. Public
ulations. Public health as now health is essentially a community
managed calls for publicity, also affair, not a state or federal mat-
anathema to physicians. It in- ter. Doctors and patients intrin-
volves politics, still less desired. sically are of the community.
It calls for mass moves and com- As for socialized medicine, to-
pulsion, of debatable merit. Where- day’s compulsory approach is de-
as public health originally stood stroying the very practical and

The Great Questions


===== PAGE 59 =====

1962 MEDICINE AND CITIZEN 57

effective alternative we once en- pointed its guns at them. So long
joyed. The amount of wearing ef- as we have good physicians they
fort or expensive time given away will continue to smile and remain
by physicians was colossal and is aloof in silence. When and if we
still significant. should shift to mere trained tech-
Examine the effect of “social- nicians and slaves of the state,
ized medicine” on the hypochon- medical efficiency would suffer
driacs who clutter up “free clin- basically for lack of the finest of
ics” until physicians find ways all ingredients, the quality of those
to block them off; or weigh the persons in the profession. The
best service of a physician who threat is already showing its ef-
must sit up until midnight book- fects. The men and women of
keeping instead of studying medi- medicine inevitably make it what
cine, seeing a patient, or even re- it is. Give them latitude and they
laxing like other folk. Compare will catch up with some criticisms;
civil service employees as a so- and we citizens may learn that
cially bound class with those of many of our comments are unin-
a live organization, and then think formed and narrow, invalid.
of physicians as rule-bound em-
ployees instead of as independent Medical men and women, hu-
highly trained detectives on whom man and subject to the slings and
we depend for our lives, Weigh arrows of the same fortunes that
the rights of both patients and greet us, are the absolute best that
physicians and the degree to which we have to meet the physical woes
they are stymied by organiza- which have to be met. They will
tional maneuvers. remain our best bet so long as they
Without excessive organization are allowed the independence and
and without noise, fuss, or feath- dignity of a profession which, be
ers, physicians were doing fairly it called noble or morbid, is one
well until an untrained citizenry of our greatest needs. @®

IDEAS ON LIBERTY

«+ +» But They Found Freedom

ADULTS in George Washington's time had no social security, job-
less insurance, free food, socialized medicine, or public old-age

assistance. Life was tough any way you look at it.


===== PAGE 60 =====

A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN

OBILITY

IN THE TWENTIES, Thomas Edison, ner Labor Relations Act. Men like
Henry Ford, and Harvey Firestone Edison and Ford were considered
made an annual event of a jaunt by the newer brand of historians
around the country, usually in the to be part of the “old order,”
company of John Burroughs, the which had, so it was asserted,
naturalist. The trips were publi- plunged the country into deep
cized beyond the wildest dreams trouble because of its unimagina-
of Madison Avenue, but nobody tive approach to things.
felt inclined to be satirical at the The popular historians are still
expense of the demigods at play. peddling that line; indeed, John.
For Edison and Ford were then Kenneth Galbraith wrote an essay
riding high in the pantheon of not so long ago designed to prove
folk heroes, and if they could man- that Henry Ford, the folk hero,
age to get a little advertising was a creation of the myth mak-
along with their fun, it was per- ers. Many of the things which
fectly all right with a grateful Ford claimed to have done for
population. Inventors and indus- the nation and the automobile in-
trialists were considered benefac- dustry, so Galbraith said, were
tors in those distant days, not in reality the work of other men.
mulctors and monopolists, and peo- In denigrating Ford, however,
ple liked to share vicariously in Galbraith made a left-handed ad-
the folk heroes’ pleasures. mission that the ‘old order” was
In the thirties, of course, all actually pretty fecund. For obvi-
that was changed. The various ously Henry Ford could not have
“Edison” companies, the big cen- stolen credit for accomplishments
tral stations which had grown up that did not exist,
to supply electricity for Edison’s Just how lavishly creative the
lamp, were the “power trust.” As old order was, both in the work
for Henry Ford, he was the man that Ford did and in the work
who tried to hold out against such that was done around him by
things as the NRA and the Wag- other men and other companies,

68

NDIVIDUALIZED


===== PAGE 61 =====

1962 INDIVIDUALIZED MOBILITY 59

is apparent in a remarkable book, supplier firms a long way at the
American Automobile Manufac- very dawn of the automobile in-
turers: The First Forty Years, by dustry in Michigan. As for the
Professor John B. Rae of the imposition “on the industry of
Massachusetts Institute of Tech- rigorous standards of precision
nology (Chilton, $6). If Professor and accuracy,” that was the work
Rae tells the story with less atten- of Henry M. Leland of Cadillac.
tion to its philosophical implica- In the Ford factory itself, Walter
tions than may be found in Dean E. Flanders did the pioneering in
Russell’s excellent Men, Motors, applying Frederick W. Taylor's
and Markets, he brings to it an principles of systematic layout of
ability to marshal an inordinately plant and tools. The moving as-
complicated mass of material into sembly line carried Flanders’
clear sequences. And his summa- ideas to their ultimate conclusion,
tion, “If this be Capitalism, make but whether the credit for its in-
the most of it,” a delightful para- troduction at the Ford Highland
phrase of Patrick Henry, contains Park plant in 1913 belongs to
in essence what Dean Russell had Sorensen, Clarence Avery, or Ford
previously spelled out in detailed himself is still debatable.

logic. So what, after all, did Ford do?
It cannot be said that he was the
Among the Innovators first to mass produce a cheap car,

Professor Rae agrees with Gal- for Olds, with the famous “curved-
braith that Ford did not “invent” dash Oldsmobile,” had pioneered
mass production, Rae’s account, in this direction as early as 1901,
which goes back to the origins of when he made 600 cars of a single
the automobile industry in the model to sell in the $600-$700
bicycle shop and the carriage fac- range. (This was the original
tory, is a densely woven chronicle ‘Merry Oldsmobile’ of the popu-
of “firsts.” Hayden Eames at the lar song.) But where the curved-
Pope Manufacturing Company in dash Oldsmobile disappeared be-
Hartford, Connecticut, was years cause of flimsy construction, Ford
ahead of Ford in organizing work had a persistence that exceeded
gangs “each of whose members that of Ransom Olds: he wanted
did a specific job on each car.” to make a lot of cars that would
Both R. E. Olds of Oldsmobile be both sturdy enough to stand
and William C. Durant of the the rutted roads of the early nine-
early Buick company carried the teen hundreds and cheap enough
assembly of parts from outside to sell to every farmer and me-


===== PAGE 62 =====

60 THE FREEMAN February

chanic in the country. The com- In recounting the GM saga,
bination seemed an unlikely one, Professor Rae is fairness personi-
but Ford stayed with his dream fied. Without any trace of animus
until he managed to find a strong he discusses the strong points and
alloy (vanadium steel) which the weaknesses of William C.
would take a lot of buffeting. And Durant, who put GM together in
his incessant demand that his men pursuit of a Napoleonic dream of
find ways to knock pennies, dimes, empire. Durant had no “principle
and dollars off the cost of produc- of limitation” in acquiring com-
tion literally forced the Sorensons, panies to add to the original GM
Averys, and Flanderses to make constituent of Buick, but he did
their discoveries in the techniques have a valid feeling that there
of mass manufacture. was safety in diversification.
Thus, despite Galbraith, there Durant was thrown out of GM by
is plenty of credit for all the “bankers” only to regain control
pioneers of mass production, of the company with the help of
Henry Ford included. du Pont money. Then, after be-
stowing Chevrolet on GM, he was
thrown out all over again because
Professor Rae brings out the of his seemingly incurable habit
curious fact that there are two of ‘sending good money after
roads to success in the automobile bad” in depression times.
industry. One road is to stick to a In telling the story of Durant,
single popular idea; the other is partisans on both sides have had
to blanket the field with a full a field day making him angel or
line of models. The Ford Com- devil. For example, Lloyd Morris,
pany in the long reign of the in Not So Long Ago, has written
Model T was a ‘“‘one-idea” organi- sharply of the “harsh” bargain
zation; so, today, is George Rom- with GM driven by the invest-
ney’s American Motors Company, ment banking firms of J. and W.
evangel of the “compact.” At the Seligman of New York and Lee,
other extreme is General Motors, Higginson of Boston —a bargain
which makes a car for every in which the bankers exacted a
purse. Each road to success is be- profit of “very nearly 50 per cent”
set by many hazards: automobile on a loan which carried with it
history is strewn with the failures the condition that Durant would
of single-idea companies, and many absent himself from the GM man-
attempts to emulate the GM story agement. By implication, the
have likewise come to grief. bankers took advantage of a good

Ways To Succeed


===== PAGE 63 =====

1962 OTHER BOOKS 61

man’s extremity. But it was a broke a power which the railroads
Lee, Higginson man, James T. and electric traction lines might
Storrow, who first successfully have exerted to enforce a prohibi-
overhauled the operating struc- tive travel price. (This is not to
ture of GM. Storrow called in the say that the rail and traction com-
consulting firm of Arthur D. panies ever did go overboard in
Little, Inc., of Cambridge, Massa- charging too much save in iso-
chusetts, to advise him on cen- lated instances.) In connecting
tralizing research and testing for town with country and region
all the GM companies —- and from with region, the automobile made
the Arthur D. Little study came it possible for all manner of small
the General Motors Research De- ' industries to flourish. True, the
partment. It was Storrow also who automobile, by clogging the down-
gave Charles W. Nash and Walter town streets, has made big city
P. Chrysler their real opportunity life a most deplorable hazard. But
in the GM picture. the loss has been balanced by a

The Storrow regime lasted for compensating gain, for without
five years, or until Durant tempo- the automobile suburban and
rarily recovered control of the country life would be impossible.
company. Professor Rae obviously And who wants to stay for very
disagrees with Lloyd Morris that long in a big city, anyway? With-
the bankers’ “fee” for providing out any of the ironical implica-
GM with Storrow’s management tions of Aldous Huxley's Brave
was excessive — for what Storrow New World, for our modern free-
(with help from Nash and Chrys- dom “we thank our Ford.” @®
ler) did was to turn an ‘“‘uncer-

fain speculation nto anctioning » THE MAN IN THE MIDDLE by
usiness enterprise. y ! Nathan W. Shefferman, Double-

was , . . clearly going to survive day. 292 pp. $4.50.
as a major component of the
American automobile industry; it
was even going to survive another THE DOUBLE STANDARD is not lim-
five years of William C. Durant.” ited to male and female in Amer-

What the automobile techni- jca. It extends to unions and man-
cians and tycoons did socially was agement. Businessman A, who
to restore the United States to the welcomes unions to organize his
“little man” by giving him indi- workers, is practically a hero in
vidualized mobility at a price he the press. Businessman B, who
could afford to pay. The mobility opposes union organization of his

Reviewed by William H. Peterson


===== PAGE 64 =====

62 THE FREEMAN February

workers, is considered a moss- Then one morning into Sheffer-
back, a reactionary. man’s office came young Robert

Businessman B may explain Kennedy, counsel for an investi-
that once he signs a union shop gating committee. Shefferman’s
agreement — an agreement almost testimony before the McClellan
never freely arrived at, but rather Committee followed. He heard him-
arrived at under some form of self described as a “union-buster,”
coercion — he accepts the principle a charge he vigorously denies. The
of compulsory unionism for his charge was enough; Shefferman’s
workers. They must join — or else business collapsed. His clients also
they lose their jobs —the First found themselves under attack.
Amendment guaranteeing free- The Wall Street Journal of August
dom of assembly (the right to 17, 1960, for example, carried this
join or not to join) and the Fifth headline: AFL-CIO CALLS FOR
Amendment guaranteeing life, NATIONWIDE BOYCOTT OF
liberty, and property notwith- SEARS, CHARGES FIRM
standing. “WARS” ON UNIONS. The big

So, is countering a plant or of- labor body said Sears was engag-
fice organizing drive shameful? ing in “a calculated and concerted
Nathan W. Shefferman doesn’t effort to deprive its employees of
think so and tells why in his re- their rights to union protection.”
markably candid The Man in the But Shefferman holds counter-
Middle. He also tells how, and organizational work simply cannot
boasts that his Chicago-based be equated with union-busting. He
firm, Labor Relations Associates, believes in free unionism and not
successfully countered 90 per cent in compulsory unionism. Under
of the drives it opposed. Nothing Taft-Hartley and the First Amend-
succeeds like success: Sheffer- ment guaranteeing free speech,
man’s clients rose past the 500- management is free to give its side
mark; offices were opened in New — likely either an open shop or no
York and Detroit; fees were com- shop — to its employees. (And for
ing in at the rate of $1 million a the record, the author says that
year; among the firm's customers but a small part of his consult-
were such household names as ing business was in such work;
Sears, Whirlpool, Mennen’s, the most of it consisted of other labor
Kresge and Lerner chains, Macy's relations matters like job evalua-
of New York, Nieman-Marcus of tion, supervisory training, wage
Dallas, Hecht’s of Washington, and salary administration, and so
J. L. Hudson of Detroit. And then... on.)


===== PAGE 65 =====

1962 OTHER BOOKS 63

The Shefferman technique of period, Labor Relations Services
contesting an organizing drive can were paid by Whirlpool close to
be seen in his account of the efforts $75,000. Mr. Shefferman thinks
. of the International Association of the I.A.M. spent a whole lot more
Machinists to crack the Whirlpool in Clyde.
plant at Clyde, Ohio, in 1956. Two He complains that there is a
Labor Relations Associates men, curious ambivalence in America, a
Messrs. Patterson and Nevitt, were double standard on the matter of
assigned to the job, as against 18 countering a union drive. Many
union organizers brought in by the people think it is all right for an
I.A.M. The organizers canvassed employer not to want a union, But
virtually every employee’s home the employer is frequently ‘“re-
day and night. Employees were garded as a bit sneaky, and prob-
showered with leaflets, handouts, ably a heel, if he took steps not to
letters, pamphlets, and newspaper have it. If he did take the counter-
ads. The issues were hot; the steps, he surely ought to do it in
NLRB election not too far off. person or with regular personnel.

Patterson and Nevitt immedi- Never, heaven forbid, must he em-
ately counseled management on ploy specialists part time, as he
how to meet shifting day-to-day would a lawyer or a management
union tactics. They reviewed daily consultant, or a psychologist run-
the union’s bombardment of litera- ning tests, or a heating engineer.”
ture and advised how to answer it. Not that Nathan Shefferman is
They evaluated employee com- a bitter man. Life on the whole has
plaints and recommended correc- been good. The McClellan hearings
tive action in some cases. They held are behind him. He has spent 50
meetings with the Whirlpool super- years in labor relations. He has
visors and counseled them on what known the great and the near-
could and could not be said under great in the American labor move-
Taft-Hartley. As an offset to the ment — Gompers, Lewis, Hillman,
union membership-card-signing Dubinsky, Beck, Hoffa, Meany,
activity — a measurement of the Reuther, Carey, and so on. He
strength of the organizing drive —~ fought some of them, won, and
they conducted employee opinion then lost. And in this semi-autobio-
polls. When the election came, the graphical work at this stage of life,
I.A.M. lost by a margin of three to best let bygones be bygones. Oth-
one. For this and other profes- ers can fight the wars, which, be-
sional services not related to the cause of bigger unions and bigger
drive over better than a three-year businesses, he thinks will be big-


===== PAGE 66 =====

64 THE FREEMAN February

ger than they were in his day. ism, despite the smothering at-
Others can contest the principle of mosphere of dogmatic liberalism,
compulsory unionism and rail was pioneered by Yale undergrad-
against the double standard. Na- uates.
than Shefferman has said his piece. After discussing the constitu-
ents of contemporary liberalism,
its aimlessness and its lack of
» REVOLT ON THE CAMPUS by standards, the author describes
M. Stanton Evans. Chicago: Henry three premature and unsuccessful
Regnery Company. 248 pp. $4.50. pehellions against this orthodoxy.
Reviewed by John W. Tietz They failed, but a new wind was
rising, as witness the presidential
M. STANTON EVANS is the coun- polls of late 1960. By Inaugura-
try’s youngest metropolitan edi- tion Day, 1961, an unbelievable
tor, and he writes a stirring ac- conservative revolution was at
count of the struggle of an in- hand. The surprise of the aca-
creasing segment of college youth demic and political world is well
for emancipation from the oppres- described.
sive, gray, leveling, socialistic, Now, aiding the ‘old guard,”
campus conformity. In an auto- such as von Mises and Hayek,
biographical introduction he there is a host of younger
traces his own undergraduate scholars, journalists, and writers.
rebellion against the typical cam- There are new organizations —
pus ideology of the 1950’s: a mix- philosophical and political. The
ture of Keynesian economics, col- stories of the Intercollegiate So-
lectivism, ethical relativism, ciety of Individualists, Young
downgraded religion, and slanted Americans for Freedom, Young
college journalism. He found an Republicans, the struggle in the
accurate diagnosis of the campus National Students Association —
malady in William F. Buckley's which is not the voice of all stu-
God and Man at Yale and began dents — are recounted attractively.
his own emergence. He chanced The impact of these upon the
upon a copy of The Freeman, world of liberalism and a look into
drank in the philosophy of ISI and the conservative future closes this
FEE, helped to establish the In- fascinating story of the struggle
dependent Library on campus, to of youth for “Independence from
revive the Calliopean Society, and Dependence” — from a dependence
establish a periodical, The Inde- leading down the “Road to Serf-
pendent. The revival of individual- dom.” @


===== PAGE 67 =====

Cliches of Socialism

WHEN a devotee of private property, free market, limited government
principles states his position, he inevitably meets a barrage of clichés
such as the following, suggested answers to which are now available:

1. “The more complex the society, the more government control we need.”
2. “If we had no social security, many people would go hungry.”

3. “The government should do for the people what the people are unable to do
for themselves.”

4 “The right to strike is conceded, but. . .”
5. “Too much government? Just what would you cut out?”

6. The size of the national debt doesn’t matter because we owe it to our-
selves.

7. “Why, you'd take us back to the horse and buggy.”
8. “The free market ignores the poor.”
9. “Man is born for cooperation, not for competition.”

10. “Americans squander their incomes on themselves while public needs are
neglected.”

11. “Labor unions are too powerful today, but were useful in the past.”
12. “We have learned to counteract and thus avoid any serious depression.”
13. “Human rights are more important than property rights.”

14. “Employees often lack reserves and are subject to ‘exploitation’ by capitalist
employers.”

15. “Competition is fine, but not at the expense of human beings.”
16. “We're paying for it, so we might as well get our share.”

17. “I'm a middle-of-the-roader.”

18. “Customers ought to be protected by price controls.”

19. “The welfare state is the best security against communism.”

20. “Don’t you want to do anything?”

21. “If we need big business, why don’t we need big government?”
22. “We believe in presenting both sides.”

23. “If free enterprise really works, why the Great Depression?”
24. “Federal aid is all right if it doesn’t bring federal control.”

25. “The United States Constitution was designed for an agrarian society.”
26. “I prefer security to freedom.”

ee

Each one is on a separate sheet, 8%” x 11”. Single copies for the ask-
ing. Quantities at 1¢ a sheet. For sample copies (no charge) write to:

THE FOUNDATION FOR ECONOMIC EDUCATION, IRVINGTON-ON-HUDSON, NEW YORK


===== PAGE 68 =====

o
=< a
5 z
I)
°
8
=
3 ©
>
o
> 2
3 =<
© a
l=
—ry
ye)
FS
© 3
2
—
~<
=
= ~~
3
Qa 5
-. 8
~—r
= 2
S oo
= of
g g
ww 0
—t
5 =
QO 3
~ om
Q-
oO
o0
©
Sa

=v 8 |
55
pen |
Ea
og 2
on =
oo Oo ©
3 ao =
mo r=
—
=3 5
[q] wn
J
js V) =
= 3 a
Lr
® o =
eo 8
E>E
9 =
=8 °
—- 0
~~ ao Oo
=~ ©
8 a
3 2 8
< =
3 2
[= —
ce 2 3
— 3
3 28 o
MD =n
[od —
© 3 ZF
a 5 ©
> =
—t <Q
—
DO I a