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

IDEAS ON LIBERTY

"MARCH 1962

Production Unlimited . . . . . . . John C. Sporks 3
Whose Bread | Eat . . . . . . . . JL G. McDaniel, M.D. 14
Planned Chaos and the New Idolatry . . Edmund A. Opitz 16
One Man's Gain. . . . . . . . . Paull. Poirot 26
The Twilight of Morality . . . . . . Walter A, Lunden 29
Of Rights —Natural and Arbitrary . . . Clarence B. Carson 30
Pithole . . . . . . . . . . . . Robert G. Anderson 38
Painless Tax Requirements . . . . . H,P. B. Jenkins 4]
United We Fall . . . . . . . . . Dean Russell 42
. A Short History of Inflation . . . . , Cecil V. Grove 47
Education Without Taxation . . . . . Erica Carle 48
Who Fixes Milk Prices, Anyway? . . . Times Bulletin 56
Books:
Understanding Profits . . . . . . . John Chamberlain 57
Other Books . . . . . . . . . . 61

THE FOUNDATION
FOR ECONOMIC EDUCATION, INC.

frvington-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

*1961 issues at regular rate of 3 for $1.00; 25 or more, 20¢ each

HANDSOME BLUE LEATHERLEX

Freeman Binders to 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 =====

OUTSTANDING ADVANTAGES FOR SAVERS
COAST FEDERAL SAVINGS

OF LOS ANGELES

JOIN the more than 100,000 savers who hold individual, joint, trust,
or corporation savings accounts at Coast Federal and get these
important advantages:

SAFETY — Assets over half a billion dollars —third largest associa-
tion in the U.S. Strong reserves and high ratio of cash and govern-
ment bonds to assure withdrawal of savings immediately on request.

HIGHEST EARNINGS consistent with safety. Current rate 4.6%

per annum. Accounts opened by the 10th of the month earn from
the first.

SAVE-BY-MAIL CONVENIENCE — Airmail
postage paid both ways. Prompt, efficient
service on all transactions.
INSURANCE — Accounts insured up to
$10,000 by the Federal Savings and Loan
Insurance Corporation.

TT

T FEDERAL SAVINGS

2
JOE CRAIL, PRESIDENT 5

Coast Federal Savings, Department "‘H"
855 South Hill St. at 9th

Los Angeles 14, Calif. (Please check-mark as desired.)
1. [OI enclose [] check, [J money order, to open a 2. [J Please send information
savings account in the following name or names: on Coast Federal Savings

and Loan Association.

Name

Address

City. Zone State



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

THE

Tecmdn

A MONTHLY JOURNAL OF IDEAS ON LIBERTY

MARCH 1962 Vol. 12, No. 3

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, postpaid, to one address: Single copy, 50 cents;
3 for $1.00; 25 or more, 20 cents each,
Permission is hereby granted to anyone to reprint any article in whole
or in part, providing customary credit is given, except ‘Whose Bread
| Eat,” and “Who Fixes Milk Prices, Anyway?"

FYE Any current article will be supplied In reprint form if there are enough

inquiries to justify the cost of the printing.


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

i

wl © ~~ — }
nT : ge; = i : }

] | i if

Freedom is ‘the ‘Mainspring of ma ind’ 5 progress. Maximum cre-
ativeness!and self- feliance canbe achieved by man to) the degree
that he unshigchles. imagl from, Other men ‘who would make him
dependent UBGHthem — as by gdvernment ¢ or, to a lesser degree,
by restrictive authority. i ip privatelofganization, Thi does man
evolve toward his destiny. Following, is a true story’ illustrating the
kind of miracle that can happen when man ig freed) from inhibitory
influences) i H Td

FE EE i {
ol ’ : } Net =
2 — yi IE ky

Produstion Unlimited

JOHN C. SPARKS

IMAGINE YOURSELF president of a no longer spend half your time on
company employing more than a production problems, and thus can
hundred persons. You manufac- double the time you give to sales
ture and sell products in a very and promotion work.

competitive market, A business This, you say, would be an
slump and increasing costs have amazing, unattainable dream —a
all but eliminated your profit. miracle!

Then a miracle happens to your After this moment of fantasy,

company — and only your company you tell yourself these things can-
— wherein the general overhead is not happen to any company in our
cut 40 per cent, factory supervi- day of government regulation and
sion entirely eliminated, factory taxation, union interference, and
payroll taxes removed, product company paternalism toward em-
costs substantially reduced, qual- ployees. It simply could not hap-
ity raised, and capacity for cus- pen, you say, and the dream evap-
tomer service and prompt delivery orates.

vastly improved. Furthermore, you But it did happen to Claude Wil-
Mr. Sparks is an officer of a manufacturing son, Jr., President of City Tool
company in Canton, Ohio. He appears here as Corporation of Dayton, Ohio.

a ‘“friendly witness,” not an affiliate of the n ’
City Tool Corporation. “Happen” is not the right word,

3 .


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

4 THE FREEMAN March

however, for that implies chance the answer to the vexing problem
or luck. Claude Wilson made it of the moment if the right mind
happen by pursuing a wisp of an could be reached. It was further
idea — expanding it, turning it assumed that only when persons
over, reshaping it, and finally were free! would they truly com-
seeking unique professional help municate with one another — send
to bring it into being. The idea and receive ideas without obstruc-
was more than three years in em- tion. A horizontal organization
bryo before its birth in August plan was deemed most conducive
1959. After more than two years to such communication. The ob-
of “learning to walk,” the miracle jective would be to replace the
now approaches the dream des- difficult employer-employee com-
cribed above. munication, which generally flows
When the story began in 1955, in but one direction, with a two-
the T-year-old tool and die firm directional cross flow.
employed approximately 95 pro-
duction workers in the factory. How To Release the Full
Mr. Wilson was convinced that Potential of Each Man
the conventional company-organi- That the most complete release
zation line of authority released of the energies of the persons
but little of the potential energy working for City Tool could not
and creativeness of his employees. be accomplished under an em-
He saw that creative thought was ployer-employee relationship must
unlikely to reach a significant have been quite an earth-shaking
level because it could not flow revelation and a tremendous new
freely through the autocratic or- idea, even for the advanced-
ganization path. New ideas could thinking Wilson-Otteson team.
flow but one way -—top down — Eliminate the employer-em-
with very little seepage upward ployee relationship in factory pro-
to the president. Late in 1956, duction? The idea seemed ridicu-
he arranged for Ted Otteson, an lous. And yet, release of the maxi-
independent consultant on organi- mum energy of the workers
zation development, to take over seemed to lie in this unexplored
the communication job in City area — foreign to almost all busi-
Tool Corporation. The aim was to ness organizations. The arrow of
open up the flow of ideas among logic clearly pointed in this unex-
all employees. . 1 The word “free” is used in this sense
The theory was that in most to mean free from restrictive authority
any company there could be found within a nongovernment organization.


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

1962 .PRODUCTION UNLIMITED 5

City Tool's president
Claude Wilson, Jr.
(right), conferring with
general partner, Walter
Harvey (left).

pected direction, and this was involved, particularly to create
where a solution had to be hunted new organizations which would
out. not be under the jurisdiction of

After much serious creative agencies regulating employers,
thought and study? in which all but which would comply with all
management and production per- the state and federal regulations
sonnel took an active part, and for independent businessmen.
with the assistance of the legal Every effort was made to estab-
profession, a novel “plan” was lish a true arms-length relation-
evolved whereby each person pro- ship between and among the new
ducing tools and dies would be- independent companies.
come a businessman in business Tool and die producers have
for himself. Much legal work was large, expensive pieces of equip-

2 Study included examination of trans- ment, such as milling machines,
portation companies that in recent years duplicators, boring mills, grind-
had adopted variations of an idea where- apg athes shapers, and presses,
by the former driver-employee acquired th ’ t ¢ h hi i .
his own motorized unit and became an in- € cost ol each mac ne ranging
dependent owner contracting to haul the up to $50,000 and higher. How
trucking firm’s trailers to their destina- could these former employees ac-
tion. Experience indicated substantial re- . .

quire the use of such equipment

duction of general overhead and mainte-
nance expense. in their new role as independent


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

6 THE FREEMAN March

businessmen? City Tool solved How It Functions
this problem by selling to a leas- It is difficult to picture ade-
ing company which then leased quately the “unorganized system”
the equipment to Partners Tool that has developed. There are few
Company, a general partnership terms to describe the functions
of former City Tool employees of the new firms developed under
now in business for themselves. this concept. The various small
Walter Harvey is the general companies have names, such as
partner heading this company, and Partners Tool Company, Viceroy,
has been highly instrumental CAM, Galaxy, J. B. Smith and
in the success of the plan. This Company, which serve their pur-
partnership, in turn, offered each poses at least, for they know the
piece of equipment on a sub- nature of the operating functions
lease basis to the other new busi- performed by each company.
nessmen (former employees of When City Tool finds a poten-
City Tool) who also had formed tial job or customer, it seeks
partnerships of two or three per- price quotations from the Part-
sons each, ners Tool Company — the general
The problem of subleasing large partnership that leases and main-
pieces of equipment to the small tains the equipment and also
partnership firms was solved by serves as raw materials purchas-
leasing each machine by minutes ing agent. The various producing
— that is, in small increments of partnerships are then invited to
time which the partnerships could prepare sealed bids so that a quo-
afford to buy. Each piece of equip- tation can be made to City Tool.
ment in the factory building Specific information, delivery
formerly operated by City Tool is dates, and other customer require-
now coin-operated with the excep- ments are made known to each
tion of some very large machines producing partnership wanting to
which are leased on a time-meter bid. Producing partnerships are
basis. One machine may be avail- not required to bid; and the com-
able for five minutes at 5¢, an- pany on the other hand is free to
other for fifteen minutes at 10¢, deal with another toolmaker if it
a more expensive piece may re- wishes. The bids submitted are
quire 25¢ for fifteen minutes, and opened at the scheduled time and
so on, thus enabling the numerous are listed on a bulletin board with
small producing partnerships to the low bid indicated. The bid is
acquire the use of large equip- then passed on to City Tool Cor-
ment for short periods of time. poration. City Tool, after adding


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

A partner about to ac-
quire ‘personal owner-
ship’ of power and fa-
cilities via his U.S. 25¢
coin.

an amount for selling, promotion- of his time to production prob-
al expense, and profit margin, lems, There was also a vice-presi-
quotes the job to the customer. dent with approximately the same
In this way the customer obtains division of time. Others involved
from one source the result of two in the factory administration were
to eight competitive bids. If the the factory manager, factory su-
job is awarded to City Tool, the perintendent, general foreman,
producing partnership that sub- supervisory foremen, estimators,
mitted the lowest bid is assigned purchasing agent, clerks, main-
the order. That partnership is tenance men, tool crib foreman,
"completely responsible for pro- plus a complement of payroll and
ducing the product according to accounting employees.
the specifications and time-table Now there are none of these!
required. No one has to remind another
of his responsibility to give an
“honest day’s work,” because the
The extraordinary results can degree of fulfillment of his obli-
be best visualized by comparing gation and the financial reward
the “before” and “after” picture are automatically in accord. No
of this operation. Before, there one is required to tell a producing
was a president who devoted half partner that he must work from

Before and After


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

8 THE FREEMAN March

7:00 o'clock to 4:00 o'clock. His half of the original production
time is his own. He understands employees departed in the early
what this means better than ever months. On the other hand, the
before. The equipment is available new concept began to attract the
in the factory building twenty- more competent men of the area,
four hours a day, seven days a at the same time retaining those
week. Each partner has a key to willing to compete on the basis
the building and, being in business of their own ability, initiative,
for himself, he works the hours and hard work.

required to complete the jobs con- Many tool and die companies
tracted for in his successful bid have employees specialized to the
proposals. point where a machine operator,

Supervisory overhead is mon- for example, will operate only the
existent! equipment upon which he is

Furthermore, the second-floor skilled. Unless management sched-
offices of the City Tool Corporation ules work for him at capacity, he
have. been virtually abandoned, is apt to become idle for part of
and most of the personnel, for- the time, even though his wages
merly essential to keep voluminous continue. In this Dayton “unor-
records, are no longer needed. On- ganization,” there is a tendency
ly the offices on the first floor, toward less specialization and
about half the former space, re- more all-around competence. This,

main. of course, does not deny the ad-
vantages of the division of labor,
Some Afraid To Risk Freedom but merely points out that each

The biggest problem at the out- producing partnership deemed it
set of this unique experiment was important to become well-rounded
a subconscious reluctance in the in its ability to turn out complete
minds of these untried, independ- jobs regardless of the varieties of
ent businessmen to make deci- skills required. The need to attain
sions, rather than rely on others. greater “know-how” first, has at
The brand-new need for self-reli- least temporarily reduced speciali-
ance involved a process of prun- zation; but within the partner-
ing, much as trees in a forest shed ships is usually found one partner
their dead wood. Machinists and who is more able at benchwork
toolmakers who did not wish to while the other is better qualified
think and act for themselves simp- to handle machine work, thus
ly left and sought conventional em- achieving a sound, economic bal-
ployment elsewhere. More than ance.


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

1962 PRODUCTION UNLIMITED 9

Large castings can be
machined on this ‘‘me-
tered’ planer mill,

Market Guides him. He found that the toolmakers
The miracle of the market and machinists had learned to use
place has come into play in many milling equipment to eliminate the
interesting ways. One of the less- need for a portion of the sawing
er-skilled jobs is that of a band- operation. In many cases, the saw
saw operator. In the beginning, operator could not regain his
the small partnership companies former business even by adjusting
came to the saw operator for their his prices to the original rates.
brief rough-sawing jobs. He soon He then discovered that he could
noted that he appeared to have a become more expert at sawing and
monopoly of this kind of work, and eliminate a subsequent operation
he doubled the former price. Since otherwise often required. Once
it is unprofitable for a toolmaker again, he has attracted the busi-
to send a job outside for sawing ness of the producing partnerships
because of the relatively short which pay a higher price for the
time and dollar amount involved, more proficient sawing operation.
it appeared that the saw operator It saves them money.
had, indeed, hit upon a bonanza. Another small firm seemed to
He had not reckoned with the have a monopoly on jig-boring and
open market, however, and in a jig-grinding. This work is usually
short time fewer and fewer saw- of sufficient volume. to warrant
ing jobs were being referred to competitive bids from outside


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

10 THE FREEMAN March

firms. So, when the jig-boring and was fenced in and kept under lock
grinding firm set its prices too and key. There is no longer any
high, the small partnerships took requirement to have a toolcrib
their work elsewhere! The open foreman, and the fence has been
market again had its effect, and removed. Tools are owned by the
the jig-boring and grinding part- small producing partnerships. Oc-
nership reduced its prices. Now it casionally, a partner may buy a
receives almost all of the business special tool of a kind not owned
available from the producing part- by any other partnership. Rental
nerships. In addition, it sells its arrangements for the special tool
services to other shops in the Day- are easily worked out between the
ton areca, small partnerships on a business-
There are a number of ways to like basis.
drill a hole. Anything from a
simple hand drill to an expensive The Cost of Experience
radial drill will accomplish this One producing partnership al-
end. Before these men became in- most bit off more than it could
dependent businessmen, the easiest chew when the partners ambi-
and most expensive way to drill tiously accepted an order requiring
a hole was most often used. Now complex technical knowledge be-
the method selected is that which yond their previous experience.
is most economical. A few holes on Eager to learn and willing to spend
a drill press may cost only 5¢, long hours to gain valuable new
while the same holes on a radial knowledge and “know-how,” this
drill may cost 25¢. Another cost small business firm now is probably
comparison is interesting. When the most able tool producer in the
these men were employees, they United States in this particular
did not appear conscious of time technique, even though that first
wasted as they walked back and job lost money. :
forth between machines to do this If a completed job fails to meet
job and that. As independent busi- the specifications of City Tool and
nessmen, however, they carefully its customer, the responsibility for
lay out work to obtain the fullest restitution is placed exactly where
output of the equipment during the fault lies! One member of a
the period they have it leased. partnership related that he lost
At one time a toolerib foreman several thousand dollars on a job
was required, and the expense of soon after the ‘plan” went into
supplying replacement tools was effect. Regardless of that unfor-
considerable. The toolerib itself tunate experience, he emphasized


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

fo +0 h{ wr DUE Tomessow

—}

A partner submitting a
sealed bid and return-
ing prints for compet-
itor’s consideration.

that he would not care to return partner wishing to loaf generally
to the former arrangement, for does so at home. Since he works
he enjoys being his own boss. Be- for himself, the shop represents
sides, his income has risen far the place to be busy, not a place
above his former wages. He comes to “get his hours in” in the least
and goes as he wishes, for his unpalatable manner, as formerly.
success or failure lies with no one The customers of the City Tool
other than himself. If he takes the Corporation highly approve this
day off for golf or fishing, or sev- new ‘system’ because they can
eral weeks off for vacation, there get in close touch with the men
is no boss to reverse his decision. who are working on their dies
But he is completely aware that rather than filter their inquiries
only when he is producing is he and instructions down through
rewarded for his efforts; and when the salesman, sales manager, plant
he does not produce, he earns manager, superintendent, and
nothing. foreman before reaching the man
In the factory building, the on the job.

timeclock no longer functions, and

the timecard racks are empty; but Sales Stimulant

there is no lack of production ac- Another unexpected result of
tivity. The men at work provide this ‘system’ has been the in-
an air of quiet efficiency, for a creased stimulation of the City


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

12 THE FREEMAN March

Tool sales effort. City Tool main- national average for this kind of
tains a good relationship with business. In the same time, the
Partners Tool Company by being percentage of rejection of jobs
its best customer — which means completed has fallen off to almost
that results must be shown in nothing. City Tool is able to quote
terms of profitable sales. The self- better delivery dates, and they are
reliant toolmaker-businessmen met more often than ever before.
provide sales motivation with their City Tool estimates that its total
experienced and competitive cost business this year will be more
information, enabling City Tool than twice the volume of the first
salesmen to seek out profitable year’s operation under the new
sales rather than waste time on concept.
unprofitable accounts. In addition, The earnings of the tool and die
the increasing versatility of the makers have also climbed. Al-
producing partnerships has led though the City Tool management
to a vastly expanded and more di- no longer has access to any records
versified sales program. revealing the earnings of the men
Some of the former officers of who were their former employees,
City Tool Corporation can be volunteered estimates by various
found as partners in one or an- partners indicate that the average
other of the producing partner- earnings of these men have risen
ships. One former officer said that from a former level of between
he and his partner would probably $6,000 and $10,000 annually, to a
work right through that particular new level averaging over $15,000.
weekend because of three jobs due It is reported that some individu-
on the following Monday. Dead- als in these partnerships are earn-
lines are meticulously met. This ing between $20,000 and $25,000 a
same man said, in discussing per- year.
sonal insurance, that he carries Thanks to the courageous pio-
three accident policies on himself, neering of the company president
No rule requires such fore- and his ex-employees, everyone
thought; this is his responsibil- has benefited — customers of City
ity! His wife does the record-keep- Tool, the investors in large equip-
ing for him and his partner, and ment, the partnership operating
files their tax returns. the equipment and purchasing raw
In the past two years, City materials, and last but not least,
Tool’s percentage of orders re- the producing partners who are
ceived to quotations made has in business for themselves. One or
climbed to more than twice the two of the producers report that


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

A group of partners re-
viewing the require-
ments of a new ac-
count.

they do not earn any more than and should not be. The startling
they earned as employees. Even new concept derived from this ex-
these men ardently support the perience is that whenever employ-
new arrangement because they ees can cease to be employees and
like the independence, and further- become individual entrepreneurs
more, hope to acquire greater skill instead, the maximum human en-
and knowledge so they, too, can ergy is released. True freedom of
rise to new heights. action and self-reliance are prereq-

uisite to achievement of this

While the story of City Tool and great potential.

its experience is fascinating, one Whether or not this principle,
should not overlook the key point as applied in City Tool’s job shop,
that led to its unusual success. can be successfully repeated in
Privately-owned companies, other business organizations, only
whether or not incorporated, in- time, experience, and further ex-
variably adopt the customary em- ploration will tell. If it can, we
ployer-employee organization plan, may have quite a wonderful revo-
thereby closing off much of the po- lution on our hands. Regardless,
tential flow of communication — the amazing account of what hap-
and thus precluding maximum suc- pened there, when employees
cess. This is not an argument to changed into self-responsible busi-
the effect that employees should nessmen, should be an inspiration
have equal voice in the manage- to others seeking the rich rewards
ment of the employer's assets and of maximum freedom. @®
business decisions. This cannot Reprints of this article available, 10 cents each.


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

WHOSE BREAD | EAT-
HIS SONG | SING

J. G. McDANIEL, M.D.

I REMEMBER, as a small boy in knee “dirt dobber” making a ball of
britches, going with my father to mud. The congressman snapped
hear an address given by the Hon- me back to attention, however,
orable Stephen Pace, then con- when he said, “I'm going to tell
gressman from the old Georgia you a true story about the wild
12th District. It was on the banks hogs that once lived about forty
of the Ocmulgee River. There was miles down the river.”
a barbecue, and citizens, espe- “Years ago,” the congressman
cially farmers, from all the coun- said, “in a great horseshoe bend
ties gathered. This was before the down the river, there lived a drove
first World War. of wild hogs. Where they came
It seemed that someone in the from no one knew, but they sur-
Congress had introduced a bill vived floods, fires, freezes,
that would give the farmers some droughts, and hunters. The great-
money provided they did some- est compliment a man could pay
thing. The congressman vigorous- to a dog was to say that he had
ly opposed it. I have no idea what fought the hogs in Horseshoe
it was, because I was watching a Bend and returned alive. Qccasion-
This article is reprinted by permission from the ally a pig was killed either by dogs
November 1961 Bulletin of the Fulton County Or & gun -— a conversation piece

(Georgia) Medical Society of which Dr. Mc-
Daniel is President. for years to come,

14


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

1962 WHOSE BREAD I EAT 15

“Finally a one-gallused man commenced building a pen around
came by the country store on the the corn, a little higher each day.
river road and asked the where- When I noticed that they were
abouts of these wild hogs. He all waiting for me to bring the
drove a one-horse wagon, had an corn and had stopped grubbing
ax, some quilts, a lantern, some for acorns and roots, I built the
corn, and a single barrel shotgun. trap door. Naturally,” said the
He was a slender, slow-moving, patient man, ‘they raised quite a
patient man —he chewed his to- ruckus when they seen they was
bacco deliberately and spat very trapped, but I can pen any animal
seldom. on the face of the earth if I can

“Several months later he came jist get him to depend on me for a
back to the same store and asked free handout.’”
for help to bring out the wild

hogs. He stated that he had them We have had patient men n our
all in a pen over in the swamp. central government in Washington

“Bewildered farmers, dubious or years . hey foe a think
hunters, and storekeepers all offars instead ol corn. 1 § n

gathered in the heart of Horseshoe about the trap door and the slen-
Bend to view the captive hogs. der, Stooped man who chewed his
“It was all very simple,’ said tobacco deliberately, when he spat
the one-gallused man. ‘First I put and turned to the gathered citi-
out some corn. For three weeks Z°0S manyy ears ago and said, “I
they would not eat it. Then some can pen any animal on the fase of
of the young ones grabbed an ear the earth if I can jist get him to
and ran off into the thicket. Soon depend on me for a free handout.
they were all eating it; then I Reprints of this article available, 2 cents each.

WHEN YOU CHANGE YOUR ADDRESS

We'll find out about it eventually, so why not tell
us in advance? Otherwise, there's postage on
THE FREEMAN you missed, plus more postage to
locate you, plus still more to send another copy.

And it may be your money! Write to:
THE FREEMAN, Irvington-on-Hudson, N. Y.


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

==> =

SLANNED CHAOS AND THE NEW IDOLATRY

[OS or

EDMUND A. OrPITZ

IF WE couLD take a sampling of than the register of the crimes,
American public opinion, asking follies, and misfortunes of man-
people, “Are you for communism kind.” But if we examine the pres-
or against it?” an overwhelming ent world crisis centering around
majority of our fellow citizens communism, we discover two
would be in opposition. They would things which are new.
accept the anticommunist label as There is, first of all, the magni-
readily as most of us. How could tude of this tyranny, not only in
they do otherwise, with commu- terms of the area over which it
nism’s ugly record of the past holds sway and the countless mil-
forty years spread before all eyes? lions of people it controls, but al-
What are the ingredients of this so in terms of the penetration of
record? Revolution, treason, and this control into each man’s life.
betrayal were present from the Ancient tyrannies—-no matter
beginning. As the record unfolds, how boundless their ambitions —
it becomes ever more grim; con- were limited in extent by the dif-
centration camps, torture, and ficulties of communication and
mass murder; broken treaties, supply. Genghis Khan and Tam-
conquest, and the suppression of erlane overran vast territories,
whole peoples. And the end is not killing and terrorizing, but they
in sight, were hampered by the practical
Communism did not invent the problems of logistics and policing.
crimes it practices; history, as Present-day conquerors avail
Edward Gibbon remarked in his themselves of the latest techno-
Decline and Fall of the Roman logical advances in every field;
Empire, “is indeed little more in transport, as well as in the use
of the written and spoken word.
The Reverend Mr, Opitz is a member of the And they have discovered new

ff of the Foundation for Economic Educa
tion, © c Foundation for Tconomic Eau techniques for securing ‘“‘coopera-

16


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

1962 PLANNED CHAOS AND THE NEW IDOLATRY 17

tion” by intimidation and scien- honeymoon period during World
tific terror, so that people police War II when Russia was our
each other. “noble ally.” This was a period

The second new thing about when people who should have
modern tyranny emerges from the known better joined all kinds of
first. Communism is not simply a ‘Front’ organizations and
mere revival of ancient slavery or coughed every time Joe Stalin had
serfdom; it seeks to dominate the a tickle in his throat.
minds of its subjects as well as But when the crusading fervor
their bodies. Communism uses its of World War II wore off, we took
population as drudges, and by another look at the Soviets, and
Stakhanovite methods seeks to get there was the same old dictatorial
more production out of them. But rule, the concentration camps as
it does not stop there. Commu- before, the continuing political
nism claims the hearts and souls of murders, the underhanded pene-
men, as well as their bodies. It tration of all governments includ-
seeks to create a new man, in- ing our own by communist agents
dependent of the old ties which and dupes, the conquests, the
bound men to family, country, and brutal suppression of natural hu-
God. To the extent that commu- man aspirations for more freedom
nism succeeds in severing men (as in Hungary) — and we began
from their old attachments, it again to see communism for what
fails; its “new men” become mon- it really is: ancient tyranny plus
sters. all the modern refinements,

In spite of these things, there
have been communists and fellow Communism: a Twofold Danger
travelers among us. They are with As a result, Americans are now
us yet. Some are influential and aroused against communism as
articulate. But despite a genera- never before. They see it as a two-
tion and a half of communist prop- fold danger: as a subversive ideol-
aganda, comparatively few Ameri- ogy, and as an armed revolution.
cans adopt the party line —so long Communism, in the first place, is
as it bears a “Made in Moscow” a kind of ersatz religion, a chal-
label. lenge and a threat to our whole

The 1930’s, it is true, were way of life. In the second place,
spoken of as ‘The Red Decade,” communism is an armed revolu-
but this red tinge, after all, af- tionary movement which threatens
flicted only a relatively few per- our very lives. Naturally, there-
sons, There was, of course, the fore, Americans want to defend


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

18 THE FREEMAN March

themselves at both levels; the tieth century a self-unemployed
spiritual as well as the military. lawyer and political exile was liv-
Defense at both levels is impor- ing in a foreign country in a run-
tant, but the spiritual is more im- down boarding house. He lived on
portant than the military. Com- handouts. He wrote angry tracts,
ing from a clergyman, this may made rabble rousing speeches, and
sound like a mere sentimental plotted the Revolution. As World
gesture, so let me try to explain. War I drew to a close, he seized
Power is not the same thing as control of a great country and set
brute strength, If it were, we brush fires on every continent. The
would not be here talking about man’s name was Lenin. He had
the threat of communism, for no physical power at the outset,
modern communism began a little but he lived for an idea. It was an
more than a century ago as a de- evil idea to which he devoted his
fenseless idea, or ideology, in the life, but the Marxist ideology
brain of Karl Marx. When this which consumed him forged ahead
ideology was first unleashed, it until it invested itself with today’s
had no military hardware at its Soviet military machine. But the
disposal, and it had little else! real power was in the idea; once
A number of researchers have this idea began to take hold of
shown that Marx did not have men’s minds, military weapons
original opinions in economics, gravitated toward it. Once this
politics, or intrigue; instead, he idea begins to lose its hold on
picked the brains of other men. men’s minds, the weapons will
But he dressed up these old ideas start to fall away.
so attractively and imparted such Ludwig von Mises, the eminent
a spin to them that they have ever economist and social philosopher,
since exerted an almost irresisti- puts the point as follows: “One can
ble attraction on millions of men. become a leader only if one is sup-
The times were ripe for such a ported by an ideology which
movement as Marx launched; and makes other people tractable and
nothing, as Victor Hugo has told accommodating. Might is thus not
us, is so powerful as an idea whose a physical and tangible thing, but
time has come. Long before Marx- a moral and spiritual phenomenon,
ism took root the once healthy soil A king’s might rests upon the
of Western culture had been pre- recognition of the monarchial
pared for just such a perverted ideology on the part of his sub-
growth. jects.” This insight accords with
In the early years of the twen- the advice of the French revolu-


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

1962 PLANNED CHAOS AND THE NEW IDOLATRY 19

tionist who told his followers: his finger on this danger. “Com-
“Don’t attack the king; attack the munism is a species of blasphe-
idea of monarchy.” mous religion,” he writes, “operat-
The Marxist ideology has seeped ing under several guises, or ali-
into several countries and these ases, the Moscow variety being the
countries have armies. We must, most obtrusive.” He concludes his
therefore, keep our guard up catalog of communism’s aliases
against a possible military threat, by saying:
and this we are doing. We spend “And, finally, there is ‘domes-
a great deal of money each year ticated communism,” a species
on ships, planes, tanks, bombs, and which is far more destructive of
missiles, Furthermore, we have our social and political institu-
some able military minds and tech- tions than any of the others. Its
nicians among us. Even though followers denounce ‘communism,’
our military defense system is not in the abstract, with all the vigor
all it should be, and may be sadly at their command. But, at the
lacking in certain sectors, it is in same time, they advocate measures
far better shape than our intel- which ideologically differ little
lectual, moral, and spiritual de- from the program promoted by
fenses. Our real enemy, basically, Marx and Lenin. We Americans
is not a foreign army; it is an have repeatedly been alerted
alien philosophy. The real danger against an unanalyzed thing la-
is that we will disown our native beled ‘communism.’ But many of
heritage of religious, political, and our people have not been alerted
economic beliefs and replace them against the specific political and
with beliefs patterned after the economic measures which, taken
ideology of our opponents. Should together, are communism. They
this actually take place, they will readily accept the heart of the
have gained the victory without communist doctrine, which is the
firing a shot. enhancement of political power at
To a greater extent than we the expense of the natural rights
like to admit, this is happening. of the individual.”
It may happen even among a peo-
ple who regard themselves as anti- For the Mind and Soul of Man
communist, if they are betrayed What we are witnessing today
into the comforting belief that is a world-wide battle for the
communism is an external and mind and soul of man —in edu-
foreign threat only. cation, in religion, and in polities.
Admiral Ben Moreell has put It is a contest to determine the


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

20 THE FREEMAN March

system of values to which men Abraham Lincoln called “the last
will give their final allegiance. best hope of earth.”
Call this a battle of propaganda,
if you will; and in this area we Military Preparedness
must admit that it’s Russia by a A growing number of people are
mile, now aware that military prepared-
Our predicament, in a nutshell, ness is but a phase of the war
is illustrated by the famous state- which is total. The enemy we con-
ment of the then General Eisen- front seeks to disarm us intellectu-
hower about his conversations ally; he seeks to confuse our sys-
with Marshall Zhukov. “We tried tems of loyalties, to distort our
to explain to cach other,” said values, to capture our very souls.
Eisenhower, “just what our sys- Hence, the crucial need for a re-
tems meant, to the individual, and birth of our own philosophy. In
I was very hard put to it when he addition to this, we must under-
insisted that their system appealed stand the ideology of communism
to the idealistic, and we completely and its various techniques for ad-
to the materialistic, and I had a vancing its aims short of military
very tough time trying to defend conquest. Some of these techniques

our position. ... You run against make use of ‘“double-think” and
arguments that almost leave you ‘“double-talk.”

breathless; you don’t know how To illustrate: The Soviet Union
to meet them.” denounces imperialism and coloni-

Genuine loyalty to a code of val- alism, and becomes the greatest
ues must be freely given. This imperial and colonial power in his-
is not a matter for the intellect tory. It uses the concept of democ-
alone, but a man who cannot give racy to buttress autocracy. It per-
reasons for the faith that is in verts the judicial processes to
him and meet the arguments wring confessions from innocent
against it is in danger of losing men. This is warfare in another
that faith. It is not enough merely dimension than the military. It
to proclaim our devotion to the even goes beyond what is usually
American System; we must seek called “psychological warfare.”
to understand what it is and how The aim of war always has been
it came to us. Unless we are aware to impose your will on the enemy
of the spiritual and moral ante- or to prevent him from imposing
cedents of our way of life, as well his will on you. Propaganda has
as the political and economic im- always accompanied arms, but
plications of it, we will lose what main reliance in the past has been


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

1962 PLANNED CHAOS AND THE NEW IDOLATRY 21

on physical force. You inflict dam- Try an experiment. Ask a doz-
age on the enemy’s soldiers and en or so of your friends how many
destroy his property until his will have read The Federalist. Ask
to resist has been broken. But them to give a coherent account
modern refinements of propaganda of the philosophy and structure
techniques are so effective that in of the federal republic projected
many instances the will can be by the Founding Fathers. When
gotten at directly to soften or you have done this, wonder no
break it. Something of this sort more that there were defectors in
happened to many of our soldiers Korea! We Americans have lost
in the Korean War, in the process touch with the wellsprings of our

called “brainwashing.” national life. Is it any wonder,
then, that this confused genera-
Confused about Communism tion, ignorant of Marxism and

It is understandable, though it Americanism alike, offers so little
may be regrettable, that many of resistance to communism, except
our young soldiers in Korea had on the level of labels?
no clear comprehension of com-
munist ideology. This disability Not Clear about Liberty
they share with a majority of our If one were asked to sum up in
fellow Americans today. “Commu- a phrase the essential meaning of
nism,” for all too many Ameri- American life as projected by the
cans, is simply a label which they Founding Fathers, what words
have been conditioned to distrust, would he choose? Permit me to
hate, or fear. But if you ask them answer this question by offering
for an exposition of the ideology the phrase, “liberty and justice for
behind the label, they are at a all,” as epitomizing the American
loss. We have paid for this ig- ideal. These words have relevance
norance, and we continue to pay to our workaday world, to the
for it; but it is not the worst of realm of economic life, its mean-
our afflictions. It is bad enough ing, and its freedom, but they
that we as a people are untaught carry religious overtones as well.
as to communist ideology and Our religious heritage spells out
methods, but it is inexcusable into personal liberty in the politi-
negligence that millions of Ameri- cal and social spheres. The God
cans go through college, and mil- who gave us freedom to accept or
lions more through high school, reject Him certainly intends us to
and do not know what American- be free in our relationships with
ism is! other men.


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

22 THE FREEMAN March

This leads logically to the gen- Presently we have a great deal
eral philosophy of freedom which of latitude within the state’s area
includes liberty in the economic of permissiveness, so that we
sphere as one of its particulars. hardly feel its yoke upon our
Once, perhaps, this could be taken necks. But if we accept the princi-
for granted, but not in today’s ple that the state is our master
troubled world. Our situation has and the endower of such rights as
changed with reference to the it tolerates, then we must look for-
roles of citizen and government; ward to this mastery being ex-
the balance of power has shifted ercised over us with ever-increas-
to government, and the political ing rigor. We still dwell under the
power which was once dispersed protection of the old idea that an
in this country in municipal, individual has God and the right
county, and state units has been on his side when he challenges
largely concentrated in Washing- the immoral actions of an unjust
ton. Centralization of political state. But this idea dwindles as its
power is the pattern in all coun- religious underpinning is eroded.
tries, whether they are behind the
Iron Curtain or on this side of it. Governments Established To Secure
The liberties we once enjoyed as Men in Their God-given Rights
our birthright and exercised ac- The basic premises of the Amer-
cording to our own discretion ican system are to be found in the
have been annexed by society or Declaration of Independence,
by the state. Formerly, we en- where itis asserted that each man
joyed independence; now we are derives certain rights from God.
grateful for parole during good “We hold these truths to be self-
behavior. evident, that all men are created

Both in theory and in practice equal, that they are endowed by
we have gone from inherent and their Creator with certain unalien-
inalienable freedom to what might able rights, that among these are
be called a kind of discretionary life, liberty, and the pursuit of
serfdom. Once we were free to ini- happiness.”
tiate our own pattern of action and Governments are established —
follow our own wisdom and con- according to this philosophy — to
science — provided our actions did secure men in their God-given
not infringe the equal rights of rights. Constitutions and political
all other persons. Now, we are al- structures merely formalize the
lowed to do whatever the state or outer and social freedom which
the law permits, men’s inner and spiritual liberty


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

1962 PLANNED CHAOS AND THE NEW IDOLATRY 23

demands. If government fails in “Made in Moscow” label on it is
its primary task of defending not popular in America. It doesn’t
men’s birthright of freedom, men need to be. Its unpopularity does
are justified in altering or abolish- not matter, if only we can be in-
ing it, so the Declaration reads, duced to accept the Marxist ideol-
and may then “provide new ogy under some other label. This
Guards for their future security.” we are doing. Americans have been
The inherent rights idea which running away from their own
was so prominent in the thinking revolution — which for the first
of the Founding Fathers is but time gave political form to the
the immediate application to polit- “individual rights-Creator sover-
ical philosophy of the Christian eignty idea” — in order to embrace
idea of man as a creature of God an alien program saturated with
and accountable to God for the Marxism. They do this under the
proper ordering of the soul for delusion that there is some safe
which he alone is responsible. The middle ground between the idea
late Dean Inge spoke of Chris- of freedom, on the one side, and
tianity’s ‘“‘deep-rooted individual- communism on the other.
ism.” He asserted that “assuredly But there is no such neutral
its tendency is to claim ‘natural ground! There is only one place to
rights’ for every human being as take a stand, if we are really op-
such.” posed to Marxism, and that is to
The Marxist Idea stand uncompromisingly with the
In contrast to this statement philosophy of freedom, including
there is the declaration of the late its spiritual and moral antecedents
Sidney Webb, the godfather of together with its political and eco-
Fabian socialism: “The first step nomic implications.
must be to rid our minds of the
idea that there are any such things Rights as Demands
in social matters as abstract The key idea of freedom, as I
rights.” And Marxism, denying have emphasized, is the conviction
God, logically denies the idea of that men derive their rights from
individual rights. In so doing it the Creator. This is a religious
reduces individuals from persons idea, so I turned to a “Report on
in their own right to mere units the Changing Dimensions of Hu-
of the state. Communism, with all man Rights” recently issued by a
its ugly features, follows logically national church group. I was grat-
from this initial premise. ified to see that the Report quoted
Party line communism with a the Declaration of Independence


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

24 THE FREEMAN March

and then went on to say: “Human Capacity for Self-Government
rights belong to persons because The framers of our institutions,
of what in God’s grace they are, Madison said, rested all their ex-
not because of the political power periments upon ‘the capacity of
of the state.” mankind for self-government.” In
But my gratification vanished order that men might have an
when I saw how the authors of this area for the exercise of their nat-
report spelled out their premise, ural freedom, government was to
and in so doing changed the con- be limited to certain delegated and
cept of “rights” into “demands” specified functions. Our govern-
or “goals.” “Where formerly hu- ment was not designed to adminis-
man rights were limited mainly ter the affairs of men; it was de-
to those political rights which signed to administer justice among
governments have protected,” men who run their own affairs.
reads the Report, “they now ex- “Free government,” as Jefferson
tend their orbit to include a whole wrote, “is founded in jealousy,
galaxy of social and economic and not in confidence; it is jeal-
goals in the attainment of which ousy and not confidence which pre-
people look to their democratic, scribes limited constitutions, to
representative governments as in- bind down those whom we are
struments.” obliged to trust with power. . ..
Human “rights” were once Our Constitution has accordingly
thought of as endowed by God. fixed the limits to which, and no
“Rights” have now been debased further, our confidence may go
into demands which people may .... In questions of power, then,
make of the state for “social and let no more be heard of confidence
economic goals.” The state has no in man, but bind him down from
means of its own for meeting such mischief by the chains of the Con-
demands, so, in practice, this con- stitution.”
cept of “rights as demands” means When government is limited to
the creation of pressure groups to well-defined and well-understood
secure favors from the state for functions and duties in society,
their members at the expense of men have plenty of elbowroom to
people not so organized. This is, go about their creative and pro-
of course, a flat denial of the lat- ductive tasks. This is the meaning
ter’s rights. That a church group of freedom in human affairs, and
should sponsor such a philosophy such freedom as we have enjoyed
is a measure of our intellectual in America is the result of keeping
and spiritual decline. government within its proper


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

1962 PLANNED CHAOS AND THE NEW IDOLATRY 25

bounds. “The history of liberty,” the same line of succession, and
as Woodrow Wilson told us in thus we have at hand all the in-
1912, “is the history of the limita- gredients for a possible rebirth of
tions placed upon governmental freedom. Only the will is lacking,
power.” and only our individual initiative
can make it up. What we do or

The Founding Fathers were don’t do with our lives can mean
heirs of the spiritual faith which, victory or defeat for the things
in the fullness of time, gave rise that matter most for us and our
to political liberty. We stand in posterity. @®

The Coming Slavery

TABLE-TALK PROVES that nine out of ten people read what amuses
them rather than what instructs them; and proves, also, that the
last thing they read is something which tells them disagreeable
truths or dispels groundless hopes. That popular education re-
sults in an extensive reading of publications which foster pleas-
ant illusions rather than of those which insist on hard realities,
is beyond question...

Journalists, always chary of saying that which is distasteful
to their readers, are some of them going with the stream and
adding to its force. Legislative meddlings which they would once
have condemned they now pass in silence, if they do not advocate
them; and they speak of laissez-faire as an exploded doctrine.
“People are no longer frightened at the thought of socialism,” is
the statement which meets us one day. On another day, a town
which does not adopt the Free Libraries Act is sneered at as
being alarmed by a measure so moderately communistic. And
then, along with editorial assertions that this economic evolution
is coming and must be accepted, there is prominence given to the
contributions of its advocates. Meanwhile, those who regard the
recent course of legislation as disastrous, and see that its future
course is likely to be still more disastrous, are being reduced to
silence by the belief that it is useless to reason with people in a
state of political intoxication.

HERBERT SPENCER, The Man Versus The State, 1884


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

ne Man’s Gain

PAuL L. POIROT

THE LAW OF THE JUNGLE decrees There is no doubt about the se-
that might makes right, that one verity of the competitive struggle
man’s gain is another’s loss, that in Nature. And awareness of this
to the victor belong the spoils. fact leads some persons to conclude
This is the law that governs when that competition always works the
disputes or differences flare to the same way — that for every winner
point of all-out war, or in any there must be a loser, Yet, even in
contest where the outcome depends Nature are to be found various
upon physical force: for every forms of “mutual aid” and many
winner there is a loser, rules of behavior which modify the
There is a certain merit to this competitive struggle, as when
law which governs the processes members of a herd cooperate with
of evolution, natural selectivity, one another in defense against a
survival of the fittest, and the common enemy.
emergence of human beings among Man, especially, has adopted hu-
competing forms of life. But the mane rules of competition. Com-
very idea of being human gives petitive sports, as we know them,
rise to revulsion at the seeming are tests of skill and stamina to
cruelty of “Nature, red in tooth pick a winner but not the bloody
and claw.” Man, because he is and deadly games of yore; even the
human, seeks to improve his own losers in modern sports are ex-
well-being and to resolve disputes pected to survive.
by means other than brute force, Nevertheless, in a world of some
sheer strength of numbers, or three billion human beings — with
struggle to the death of at least limited supplies of land, tools, and
one of the combatants. Justice other resources needed or wanted
tempered with mercy is the es- for survival and human better-
sence of humanity. ment — the competitive struggle

26


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

1962 ONE MAN’S GAIN 27

persists. And men are far from scarce resources to use such prop-
agreeing on what rules should erty according to his own choice.
govern it. Consistent with the foregoing

In some parts of the world, the rules respecting life, liberty, and
rule may still be “every man for property are the practices of spe-
himself” — the old law of the jun- cialization (division of labor, ac-
gle. But in most of the so-called cording to each person’s peculiar
civilized world, there are various talents) and voluntary exchange
man-made attempts to modify that (a willing buyer and a willing

law. seller trading to mutual advan-
In many countries, the rule is tage). °
“from each according to ability, It is important to note and re-

to each according to need,” the member that a free-market ex-
compulsory socialist formula based change economy — where each per-
on the view that the individual son chooses how to utilize his time
human being is and ought to be and talents and property, and
subordinate to the will of the trades if he pleases with anyone

ruling majority. else who is willing — rests squarely
and essentially on the private
Respect for Person and Property ownership and control of one’s own

Elsewhere, and to the extent person (no slavery) and one’s
that some societies are not wholly own property (no robbery or con-
committed to socialism, a private fiscation). Except as a person
enterprise type of competition is owns and controls a service or
practiced. One of the important commodity (private property) he
rules of competitive private enter- could not possibly offer it in ex-
prise is that each peaceful individ- change and make good the de-
ual is entitled to choose how he will livery.
use his time and talents; his right Despite the fact that voluntary
to life is respected. A corollary rule exchange is the only manner in
concerns the private ownership which production and distribution
and control of property, as dis- of scarce goods and resources can
tinguished from the socialistic be accomplished without coercion
idea of “ownership in common” — of any participant, there are none-
which works out in practice, con- theless those who miss that vital
trol by the governing class. Pri- point and who insist that compet-
vate ownership respects the right itive private enterprise is inhu-
of the finder, creator, buyer, or mane, that it is without sympathy
otherwise lawful possessor of for the weak, that some are poor


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

28 THE FREEMAN March

only because others are rich, that fied customers are most likely to
one man’s gain necessarily meas- be the ones who could not or would
ures another’s loss. They fail to not serve the poor. It takes no so-
see that when an exchange is vol- cialistic government to reprimand
untary, then both parties must and punish such ineptitude; open
gain from the transaction — or at competition attends to that.

least think they have — else they The socialist critics of compet-
would not willingly make the trade. itive private enterprise, on
The gain of one is possible only grounds that it allows some to gain
because the others with whom at the expense of others, obviously
he trades also see gains for them- do not understand. For if they

selves. could understand, they would real-
ize that socialism — despite its hu-
The Worthy Are Rewarded manitarian, share-the-wealth ap-

With minor exceptions, no peal — does precisely what they de-
doubt, those who reap the greatest plore: it insists that some must
gains or profits from competitive lose what others are to gain. That
private enterprise and free-market is why socialism has to be com-
exchange are those with the best pulsory. Every variation of the
showing of satisfied customers. ‘welfare state” in the world to-
The more efficiently one produces day is but a crude reversion to
and offers goods or services —the the ruthless law of the jungle:
better able he is to hold quality might makes right, one man’s
up and costs down —the more gain is another’s loss, to the victor
likely are his customers to shower belong the spoils.
him with profits. Since the great The better alternative is com-
majority of the potential custom- petitive private enterprise and
ers in any society are the com- voluntary exchange — the only eco-
paratively poor, it follows that nomic “game” that allows every
many of the largest fortunes from player to win, the only social sys-
business enterprise fall to those tem that affords the maximum of
who have cut costs sufficiently to true voluntary charity, and the
make their wares attractive to the only political concept consistent
masses of the comparatively poor. with the belief that individuals
And the ones who lose out or fail are “endowed by their Creator
in the competitive drive for satis- with certain unalienable rights.”

®


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

ro

Ld |

IT 1S COMMON KNOWLEDGE that when a government attempts
to coerce the people by an expansion of the police power,
there is an inherent weakness in the moral and ethical fiber
of that nation. When the internal cohesive obligations of a
people no longer sustain a society, the state by coercion at-
tempts to contain the population. In this sense the expansion
of the police power is the overt evidence of the breakdown
of social solidarity in that nation.

A government or a society is sustained by one of two
kinds of control: ethical compulsion, or by force of the club
and the gun. If morality weakens within a nation, the gov-
ernment expands into a police state. When a nation is held
together by the club and the gun, morality is already dead.
Dictatorships feed upon decadent morality. The tyrant’s
club cannot create political or social morality.

When a government becomes a police state and rules by
the club and the gun, it thereby signs its own death warrant.
There is a recoil in the use of the club as there is in the
powder exploded in the breech of a rifle. Morality once shat-
tered destroys the people and the ruler. Outside of prison
and this side of hell men are not bound together by the
club but by the consciousness of moral obligations. The bond
which holds men together is morality and not brutality.
When a nation builds walls to contain the people, morality
fades and in time that nation dies behind its own barricades.

WALTER A. LUNDEN
Professor of Sociology,
Towa State University

29


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

4 NATURAL and

= ARBITRARY

CLARENCE B. CARSON

THE NUMBER of rights to which The right to a useful and remuner-
Americans are entitled appears to ative job in, the industries or shops
: : . or farms or mines of the nation;

be increasing rapidly. Almost any 1
: . The right to earn enough to pro-

current magazine or newspaper 18 Jide adequate food and clothing and
apt to carry mention — sometimes recreation;
casually — of some new right. They The right of every farmer to raise
run the gamut from the right of and sell his products at a return
workers to “toilet time” to the Which will give him and his family a
right of all adult citizens to vote. decent vine > busi

: : e right of every business man,
The establishment of these rights large and small, to trade in an at-
does not seem to require a constitu- ,cphere of freedom from unfair
tional convention or even a court competition and domination by mo-
order. Some of them may, for nopolies at home or abroad;
ought I know, be promulgated by The right of every family to a de-
cub reporters. They derive in cent home;
spirit, for the most part, from an The right to adequate medical care
“Economic Bill of Rights” set and the opportunity to achieve and

. ; enjoy good health;

forth by President Franklin D. . .

ev. The right to adequate protection
Roosevelt mn his Annual Message t0 from the economic fears of old age,
Congress in 1944. He said, in part: sickness, accident and unemployment;

In our day these economic truths The right to a good education.
have become accepted as self-evident.
We have accepted, so to speak, a sec- At the risk of being labeled an

ond Bill of Rights under which a . .
new basis of security and prosperity Ingrate for looking a gift horse
can be established for all —regard- in the mouth, I have some ques-

less of station, race or creed. .
A th . 1 Franklin D. Roosevelt, Nothing To
mong these are: Fear, edited by Ben D. Zevin (New
Dr. Carson is Associate Professor of History at York: Popular Library, 1961, copyright
Jacksonville State College in Alabama. 1946), p. 406.

30


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

1962 OF RIGHTS — NATURAL AND ARBITRARY 31

tions about this accretion of of Englishmen were recognized in
rights. Does the apparent “gift colonial charters of the seven-
horse” carry a concealed price teenth century. Thus, there has
tag? Can rights be established at never been a time in the history
will? Are there any limitations of English America when the in-
upon what may be claimed as a habitants did not believe that they
right? What are the foundations were entitled to some rights.
and sources of these rights? To Further, from colonial times to
answer these questions we must the mid-twentieth century the in-
delve into the nature and history sistence upon certain rights has
of rights. been a central theme in our his-
A right, according to the Amer- tory. Our attention, however,
ican College Dictionary, is “a just must be focused upon what rights
claim or title, whether legal, pre- were claimed, what they were
scriptive, or moral.” More, it is based upon, and what changes
“that which is due to any one by have occurred.
just claim.” As an adjective, The earliest grants of rights to
right is correctly used when it is Americans stemmed from the King
“in conformity with fact, reason, of England. His authority derived
or some standard or principle.” A from his claim to rule by Divine
right, then, is something to which Right. But in the course of the
one is entitled, and it must be seventeenth century a momentous
founded upon reality, reason, or change occurred in men’s beliefs
principles. This definition can about the source of their rights.
only serve as an abstract guide; Thinkers began to reason that
the abstractions must be given rights derived directly from Na-
content before they will serve to ture whence they had been im-
distinguish between true and false planted by God, rather than indi-
claims to rights. This can be done rectly through Divinely appointed
by referring to the history of authority. This view was used by

American claims to rights. John Locke to justify the Glori-
ous Revolution in England, and
Traditional Rights by the time of the American

To lay claim to certain rights Revolution it had been accepted
is in keeping with American tradi- by most thinking Americans. The
tion. To hold that some rights rights which Americans claimed
should be inviolable has prece- and instituted protections of in
dents antedating the Declaration our revolutionary era were re-
of Independence, for the Rights ferred to as Natural Rights.


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

32 THE FREEMAN March

The Law of Nature their rights when they set up the

The Natural Rights Doctrine institutions of civil society in the
can be succinctly summarized. It Republic. They were founded up-
held that God had created the on the reality of a created uni-
universe and that in so doing, as verse whose Creator had invested
Alexander Hamilton put it, “the with natural laws. The Founders
Deity, from the relations we stand believed that they had used rea-
into Himself and to each other, son to discover these laws, and
has constituted an eternal and that they were reasonable. The
immutable law, which is indispen- principles of natural rights, how-
sably obligatory upon all man- ever, need to be more specifically
kind, prior to any human insti- stated. Natural rights were those
tution whatever. This is what is rights which man would have if
called the law of nature...” After there were no governments or
quoting briefly from Blackstone, other human institutions. They
Hamilton continues his explana- would be rights because no man
tion: would have a right to take them

Upon this law depend the natural 2WaY¥, though he might wrongly
rights of mankind: the Supreme do So by the use of force. Thus,
Being gave existence to man, to- no man can claim a right to the
gether with the means of preserving [ife of another. No one has a right

and beautifying that existence. He {, ty liberties of another. In like
endowed him with rational faculties, ’

by the help of which to discern and Manner, no man has a right to
pursue such things as were consist- the fruits of the labor of another.
ent with his duty and interest; and In short, by nature a man would

invested him with an inviolable right have the right to the exercise of
to personal liberty and personal . CL , .
safety. his faculties in’ pursuit of his own

Hence, in a state of nature, no well-being, so long as he did not

man had any moral power to deprive trespass upon the equal rights of
another of his life, limbs, property, others,

or liberty; nor the least authority to
command or exact obedience from In a state of nature, however,

him, except that which arose from natural rights would be endan-
the ties of consanguinity.2 gered by the strong, the preda-
These, then. were the founda- tory, and evil combinations of

tions upon which Americans based Men: Thus civil societies and gov-
_— ernments were necessary to pre-
2 Richard B. Morris, ed., Alexander

vent the tr m

Hamilton and the Founding of the Na- € trespass of one man or a
tion (New York: The Dial Press, 1957), £TOup upon the rights of another,
p. 9. In society, according to eighteenth


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

1962 OF RIGHTS — NATURAL AND ARBITRARY 33

century thinkers, natural rights content with the original United
gave way to civil rights. But this States Constitution because it did
change did not alter the content not specifically prohibit the gov-
of liberties; it merely gave social ernment from trespassing upon
support to them. As Hamilton the rights of the individual. It
said, “Civil liberty is only natural was to answer this objection that
liberty, modified and secured by the first Ten Amendments were
the sanctions of civil society. It added to the Constitution. These
is not a thing, in its own nature, amendments were carefully word-
precarious and dependent on hu- ed. They do not imply a grant of
man will and caprice, but it is rights by the government; the
conformable to the constitution of belief that they do is one of the
man, as well as necessary to the distortions that has crept into our
well-being of society.” It should national thought. They are, in-
be clear from this that govern- stead, limitations upon the gov-
ments might institute protections ernment itself. Their phraseology
of civil rights but that the rights makes this clear: “Congress shall
would not stem from governments. make no law respecting an estab-
lishment of religion’ (Article I);
Usurpation by Government “the right of the people to keep
Many Americans feared that the and bear Arms shall not be in-
government created to protect the fringed” (Article II); “The right
individual in his rights would of the people to be secure in their
usurp them itself. As Thomas persons . . . shall not be violated”
Jefferson said, “There are rights (Article III). The Bill of Rights
which it is useless to surrender should be correctly construed as
to the government and which gov- prohibiting the government from
ernments have yet always been trespassing upon natural rights
found to invade. These are the as civil rights.
rights of thinking and publishing
our thoughts by speaking or writ- Recent Claims
ing; the right of free commerce; The above are the facts, rea-
the right of personal freedom.”* sons, and principles upon which
Jefferson was expressing his dis- the rights claimed by our ances-
—_— tors were based. Now let us ex-
3 Morris, Alexander Hamilton, p. 13. amine some of the recently claimed
4 Edward Dumbauld, ed., The Political rights to see if we can determine
Writings of Thomas Jefferson (New . .
York: The Liberal Arts Press, 1955), their character. Does every child
p. 57. have a right to an education? If


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

34 THE FREEMAN March

so, it must mean that he has a a decent living; the right of every
claim upon someone to educate family to a decent home; the right
him; for a right to be viable it to adequate medical care,” and so
must be realizable. Education re- forth. The establishment of such
quires a teacher. A teacher must rights would be the instituting of
come forth willingly or one must perpetual coercion and injustice.
be procured by inducements or co- Even if enough people would will-
ercion. In practice, the problem is ingly give from the fruits of their
one of employing teachers and labor to provide these benefits,
paying them for their services. that would not establish them as
The money for payment must be rights, for no claim to a gift can
willingly given, or it must be ex- be established without changing
tracted from those who have it by it from a gift to a tax.
force or threat of force, In either
case, however, for a child to have Human Rights
a right to education means that he Those who favor instituting
has a right to the fruits of the ‘economic rights” have invented
labor of others. In short, the right a supposed distinction between
to an education can only be estab- “human rights” and “property
lished at the expense of another rights.” These human rights are
and prior right. said to be prior to and superior
Does everyone have a right to to property rights. Thinkers who
an adequate wage? If so, it must make this distinction are accus-
mean that he has a claim upon tomed to refer to all concern with
someone to pay it to him. Suppose money, finances, and property as
that the workman does shoddy selfish and motivated by the desire
work, that he does not produce for “pecuniary” gain, the latter
goods in sufficient amount to re- being ignoble and inhuman in its
ward his employer for a decent consequences. But property (or
wage, that he is incompetent, or monetary) rights are reducible to
that his skills are no longer sal- the rights of human beings to the
able. Does he still have a right to fruits of their labor and the enjoy-
a decent wage? ment of their life. The expropria-
If he does, it will have to be tion of property or money is an
taken from the fruits of the labor expropriation of that part of the
of others. The same thing can be life of a man which he has spent in
said of the right of the farmer to acquiring or improving his prop-
“sell his products at a return erty and earning his money. More,
which will give him and his family it is an ex post facto incursion


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

1962 OF RIGHTS — NATURAL AND ARBITRARY 35

upon the liberties of the individ- of my labor. No one can have a
ual, for it is the taking from a right to my services without in-
man the product of his use of his fringing my liberty of serving
liberty. If the right to the dis- whom I will.

posal of his property is not a hu- An arbitrary “right,” then, is
man right, there are no human based upon appearances rather
rights. than reality, upon expediency

rather than reason, upon confu-
Who Is To Provide? sion rather than principles. It is

Enough has been said to enable founded upon the false premise
us to characterize the nature of (the appearance) that govern-
most of these latter day claims to ments can create rights, that ne-
rights. They must be provided by cessity or desirability can give rise
someone or some agency. They to a just claim, and that a man’s
are not founded in the nature of life and liberty can be separated
the universe, the nature of ex- from the fruits of them. An arbi-
istence, or natural law. Thus, they trary “right” is one which would
are arbitrary creations, the prod- entail a limitation on other rights
uct of the undisciplined imagina- in its normal exercise. A natural
tions of men. Can rights be arbi- right is one which can be exercised
trarily created? If they can, what without trespassing upon the
would be the effect of doing so? rights of others. It is founded in
Undoubtedly, language can be the nature of human existence. An
used, or abused, to announce an arbitrary “right” has to be pro-
almost limitless number of rights. vided; a natural right has only to
Legislatures can embody such be acknowledged and protected. Ar-
claims in acts, and politicians can bitrary “rights” require positive
run for office on the basis of them. enactment by governments; nat-
But what cannot be done is to ural rights require only negative
make a grant of something sub- prohibitions.
stantial without removing it from
someone who is in possession of The Defamation of Natural Rights
it. No one can be given the right The natural rights doctrine has
to associate with me without tak- been ‘“discredited” in fashionable
ing from me my right to choose intellectual circles. This was ac-
with whom I will associate. No complished by imputing to natu-
one can be given the right to goods ral rights philosophers a false
which I produce without taking conception of the history of man.
from me my right to the fruits The defamers of natural rights


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

36 THE FREEMAN March

profess to believe that our ances- them show that they can bestow
tors believed that man existed at goods without taking them from
one time in a state of nature, and their actual producers. Let them
that the validity of their concepts create rights which will not im-
depends upon the historical exist- pinge upon earlier rights and do
ence of such a state. This is not not affront man’s sense of justice.
now and never was a valid issue; Let them submit their Economic
whether man ever actually existed Bill of Rights phrased in the
in a state of nature is wholly ir- legal language which would per-
relevant, Natural rights philoso- mit their embodiment into law as
phers based their doctrines upon Constitutional Amendments, and
the nature of reality, not upon the let us judge whether or not they
course of historical development. would result in an abrogation of
They reasoned that governments the original Bill of Rights.

were human creations, and that

human creations were artificial. Mutually Exclusive Concepts

By a state of nature they meant ©f Rights

the natural condition of man with- Natural rights and arbitrary
out such human artifices. They rights cannot exist side by side
were peering beneath the surface in the same society; they are mu-
of appearances to the underlying tually exclusive. Every effort to
reality. They were holding that create new rights in the twen-
there is a limiting and lawful tieth century has already resulted
reality prior to man-made laws in a diminution of natural rights
and institutions. This conception as understood in the eighteenth
of reality has no more been dis- century. There is an inverse ratio
credited than has the law of between the right of Americans
gravity. Nor does the possibility to the fruit of their labor and
that these laws may differ some- the right of all Americans to a
what upon the moon make any decent home. The truth of this
difference to our present existence statement is spelled out on the de-
upon earth. In order actually to duction side of Everyman’s pay
discredit the natural rights doc- check.

trine, it will be necessary for Most serious of all is the fact
thinkers to demonstrate that we that if government can create
do not live within a confining rights, it can withhold and de-
reality. Let them undertake flight stroy rights. The practical conse-
on our planet without attention to quence of this fact is that if
the laws of aerodynamics. Let rights are derived from govern-


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

1962 OF RIGHTS — NATURAL AND ARBITRARY 37

ments, there are no rights. Gov- be reduced to abject poverty in
ernmental favors may masquer- order not to incite the envy of the
ade as rights. They may even as- rest of the world. In short, when
sume a semblance of constitution- rights are arbitrarily created,
ality. But such favors are instru- there are no rights. The extent to
ments of power; they are arbi- which we have accepted the belief
trary “rights” granted under the that children have a right to edu-
exigencies of the circumstances, cation, that farmers have a right
subject to recall and change when to a parity of income, that all
circumstances change. If it is ex- have a right to the latest medi-
pedient for every American to cine, and so on, is the measure of
have a decent home today in view the extent to which we have yielded
of the threat of international com- up our natural rights. It is the de-
munism, it may be necessary to- gree to which we have sold our
niorrow for many Americans to heritage for a mess of pottage. @

Supporters of Schemes

THE HARD-WORKED and over-burdened who form the great major-
ity, and still more the incapables perpetually helped who are ever
led to look for more help, are ready supporters of schemes which
promise them this or the other benefit by State-agency, and ready
believers of those who tell them that such benefits can be given,
and ought to be given. They listen with eager faith to all builders
of political air-castles, from Oxford graduates down to Irish ir-
reconcilables; and every additional tax-supported appliance for
their welfare raises hopes of further ones. Indeed the more numer-
ous public instrumentalities become, the more is there generated
in citizens the notion that everything is to be done for them, and
nothing by them. Each generation is made less familiar with the
attainment of desired ends by individual actions or private com-
binations, and more familiar with the attainment of them by
governmental agencies; until, eventually, governmental agencies
come to be thought of as the only available agencies.

HERBERT SPENCER, The Man Versus The State, 1884


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

ROBERT G. ANDERSON

ALONG THE BANKS of Pithole the Civil War that area grew rap-
Creek in Western Pennsylvania idly.
lies a deserted field overgrown Then, in 1864 a venturesome
with weeds. One hundred years driller, I. G. Frazier, leased a farm
ago it was the same. A casual seven miles up Pithole Creek,
glance might suggest that the quite distant from the Oil Creek
“place had not changed in the inter- producing area. Early the follow-
vening years, but closer inspection ing January, at a depth of 600
reveals forgotten remnants of the feet, he brought in a well produc-
once thriving city of Pithole. ing 650 barrels of oil a day. The
Pithole’s life span was but a report of the new discovery
few years. Yet, in its heyday, the brought wild speculation, but the
city was as well-known as Pitts- winter was too severe for immedi-
burgh, Detroit, or any other indus- ate new drilling.
trial center. The town was created the fol-
It all began in 1859 when Edwin lowing spring. Thousands of peo-
L. Drake drilled the first success- ple — drillers, speculators, team-
ful oil well near the small town of sters, merchants, and Civil War
Titusville in Western Pennsyl- veterans — came to Pithole to seek
vania. That was the beginning of their fortunes.
a new industry — petroleum. The The town literally “sprang up.”
success of “Colonel” Drake at Two days after lots in the town
Titusville led to further oil drill- were offered for lease, the first
ing along Oil Creek, and during building was under construction.
—_— } Six days later, the Oil City Regis-
Mr. Anderson is a member of the teaching
staff, Department of Economics, Grove City ter reported that ‘nearly two en-

College, Pennsylvania. . | :
Illustration: Pithole, 1865, by Mather. tire streets are built up, and a

38


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

1962 PITHOLE 39

large number of buildings are in coming in. At the same time, new
the course of construction.” Pit- fields were being discovered in
hole’s first hotel, the Astor House, such places as Pleasantville, Tidi-
was built in a single day. oute, and Shamburg. A mass exo-
This feverish pace continued dus took place. The drillers and
through the summer. Streets were speculators were followed by the
laid out, a water works system in- teamsters and merchants. Build-
stalled, a fire department organ- ings were torn down to be moved
ized; and there were two each of and rebuilt in other towns. Some
banks, telegraph offices, and were sold for kindling. Fires
churches. A daily newspaper was claimed much of the town.
published. There were over fifty By June of 1868, oil production
hotels, one of which — the four- had come to a standstill, with only
story Chase Hotel — was built at a a handful of “hangers-on” in the
cost of $100,000. dying town. Today, Pithole is
No census was ever taken of Pit- gone, and many people living in
hole’s population. But by July of the locality have never heard of it.
1865 its post office was handling In 1866 Pithole became, in mod-
5,000 letters daily, a volume ex- ern terminology, a depressed area.
ceeded in Pennsylvania at that Not only were the wells drying up,
time in only Philadelphia and but crude oil that had been selling
Pittsburgh. One-third of the pro- in 1864 for $12.00 a barrel de-
duction of petroleum in the United clined to a low of $1.35 in 1866.
States that year came from Pit- Such low prices forced many oil
hole. Today, by comparison, it producing companies out of busi-
takes practically all of Texas to ness. Thousands of laborers were
produce a third of the nation’s an- unemployed. Pithole undoubtedly

nual output. was the most depressed area of
, that period of general depression.
Pithole’s Decline Much is heard nowadays about

Pithole was an important city depressed areas in the United
in 1865. Scores of new businesses States. Newspapers picture shabby
had been created. Some actually homes and families and tell of job-
produced oil, while the others less workers and their hungry
thrived off the wealth that the children, But they go on to re-
wells created. port federal aid to the rescue, and

Then the inevitable happened. herald the President's “coupon
In 1866, Pithole wells started go- plan” as having struck at the “real
ing dry, and fewer new wells were root” of the problem.


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

40 THE FREEMAN March

There was no large government elsewhere at less cost; (2) the
to come forth with aid and assist- goods or services it offers may no
ance at Pithole’s time of need. longer be wanted; (3) the area
But suppose there had been; con- may have lost its capacity to pro-
sider what might have happened! duce. Pithole qualified in all three

One possibility would have been ways — its oil wells were drying
government purchase of crude oil up, oil was being produced more
— price support via an “oil bank” economically elsewhere, and —
— with barrels of surplus crude without its oil wells — there was
oil as wheat is stored today. Or, no longer any use for the hotels
the government could have subsi- and other services in the town.
dized the Oil City and Pithole Tt would have been possible, no
Railroad — just in case it might be doubt, to pump tax-collected funds
needed for national defense. Had into Pithole, to drill more wells or
there been sufficient unemployment deeper ones, to subsidize various
compensation and gifts of food, service industries, and otherwise
Pithole might still be populated nurse and coddle that dying com-
today. munity. But would it have been

No one knows for sure what worth while to thus defy the mar-
might have happened to Pithole ket demand for change and prog-
and the petroleum business if gov- ress?
ernment had intervened, but we do A depressed area is a sign of in-
know what happened otherwise. A efficiency and of failure to satisfy
city disappeared because it no the most urgent and always
longer had economic value or rea- changing demands of consumers.
son to exist. And an infant petro- It is a sign that capital and man-
leum industry expanded its annual agerial talent have turned to new
output from 2.5 million barrels in and better opportunities to satis-
1865 to 2.5 billion barrels in 1959. fy consumers and earn profits.
If government had intervened to And it is both an invitation and a
“protect” them, it might have challenge to workmen to follow
saved the dying Pithole; but who suit.
knows what “help” of this kind When government tries to defy
could have done to the emerging such change, it penalizes efficiency
oil industry? and rewards failure, pours good

There are at least three ways money after bad, and changes the
in which a so-called depressed name and character of the subsi-
area develops: (1) the goods or dized community from Pithole to
services it offers may be available ‘“rathole’! @®


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

PAINLESS TAX
REQUIREMENTS

or — FREEDOM FROM DISTURBING KNOWLEDGE

When window lights were blinking out
In every shop and store,

Old Kaspar stacked the supper plates
And barred the kitchen door,

While Peterkin and Wilhelmine

Looked at the allegoric screen.

They saw a room where lines of men
With blindfolds on their eyes
Were filing past a row of desks
And whispering replies
To clerks who juggled endless swarms
Of numbers on the printed forms.

“Is that some kind of numbers game?”
The little children cried.
“It is the Federal Income Tax,”
Old Kaspar soon replied.
“A man just tells how much he earns
And signs the finished tax returns.”

“But why are all the blindfolds worn?”
Demanded Peterkin.
“They act as tranquilizers, Pete,”
Said Kaspar with a grin.
“We don’t want folks to be disturbed
By things they’d see with sight uncurbed.”

“An income tax,” said Kaspar then,
“With steep progressive rates

Is what the communists prescribe
For these United States.

It wouldn’t do for folks to see

A tax that fills the Reds with glee.”

“Does no one ever dare to peek?”
Asked little Wilhelmine.
“A few have peeked,” Old Kaspar sighed,
“And broadcast what they’ve seen.
But such Extremists of the Right
Are known for their defective sight.”

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

41


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

DEAN RUSSELL

ONE HUNDRED YEARS AGO, the most They had a “Charter” that was
perfect “United Nations” the generally recognized as ideal for
world has ever known erupted in- the purpose of uniting independent
to war. That organization had ev- nations. And still they fought each
erything (and then some) that any- other in one of the most destruc-
one could possibly desire to insure tive wars in history.

the success of a central govern- For years, the member states
ment for a group of independent openly debated the issues that di-
states. vided them. But as always hap-

The members of that particular pens when truly vital issues are
United Nations all spoke the same discussed by large groups of poli-
language. And they still used ev- ticians in public, the resulting in-
ery weapon known to man to ex- flammatory speeches for “history

terminate each other. and home consumption” made the
They had the advantage of a situation worse instead of better.
common religious, racial, and cul- Those United Nations had the

tural background. And for four most favorable opportunity yet
years, they slaughtered each other known to man to prove the thesis
at every opportunity. that a formal organization can
There were no restrictions unite nations and preserve the
against travel or trade among the peace when there is a major dif-
member states. And still they did ference in the philosophies and
a superior job of killing each aims of the member states. And as
other. any objective student of history
Dr. Russell is Professor of Economics at Rock- and government could have pre-
ford College and Chairman of the Depart- dicted, events proved once again
ment of Economics and Business Administra. '
tion. This article is from his columns of Octo- that it never works.

ber 22 and 29, 1961, in the Rockford (Illinois)
Morning Star. You know, of course, that I am

42


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

1962 UNITED WE FALL 43

referring to the United States and day on one issue, and on one issue
our Civil War, But the same story only: Can Russia and the United
(in essence) has happened hun- States co-exist on the same earth.
dreds and thousands of times I do not know the answer; I
throughout history —in Greece, know only that our childish faith
in China, in France, in Russia, in a sterile organization has pre-
everywhere and in all ages. vented us from facing the issue
But in spite of that sad history, realistically. Worse yet, it may al-
millions of my fellow citizens con- ready have deprived us of any
tinue to put their entire faith in chance for victory if the final an-
the United Nations as an instru- swer proves to be no.
ment for world peace. “The United
Nations is our last hope to avoid Fundamental Differences
war,” they sincerely plead. “Thus in Philosophies and Goals
we just must support it, whatever The time for wishful thinking
the cost.” is long past. The Russian and
As an all-too-human effort to es- American camps are separated by
cape from the reality of the fright- fundamental philosophies and
ful situation in which we find our- goals, not by the absence of a
selves, and from the fearful de- place to meet and to record any
cisions that must be made, that agreement the leaders may accept.
attitude is easily understandable. The Russians are aware of this.
Naturally, I hope and pray that it That’s why they have always real-
will work out; instinctively, I also istically tolerated and used the
always hope that the desperate United Nations when it advanced
gambler will win at the races or their cause, and denounced it to-
at poker in his last frantic and un- tally when any decision went con-
realistic effort to avoid bankrupt- trary to their wishes, Let us also
cy and the suffering that it would begin to view that organization
bring to his innocent children. objectively.
That humane feeling, however, United Nations Day is Oct. 24.
doesn’t induce me to turn to the During the week, the event will be
horses as a sound method to pro- commemorated by the prayers and
vide for my family, nor to a fabri- sermons of millions of sincere
cated and unnatural organization Christians throughout our coun-
to preserve peace. try. Ironically, each will be asking
The reality of our situation is the blessings of Jesus Christ on
this. The peace of the world and an institution that has specifically
the future of mankind rests to- outlawed his authority and philos-


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

44 THE FREEMAN March

ophy from all its formal proceed- The Source of Rights
ings. In our world, there are two
The primary reason for this is fundamental concepts of govern-
that the leaders of Russia cannot ment and human rights: (1) the
associate themselves with any source of rights is government it-
group or statement that acknowl- self; (2) rights come from a
edges the existence of moral law source other than government.
or any concept of man beyond the These two concepts are best il-
material and animal level. That's lustrated by the constitutions and
why there is no mention of God in practices of the Soviet Union and
the United Nations Charter, the the United States. Here is a typi-
U. N. Covenant of Human Rights, cal example from the Soviet Con-
or any other similar United Na- stitution:
tions document. Our leaders who “Article 125. In conformity with
committed us to this “new idea” the interests of the working peo-
in world government readily ple and in order to strengthen the
agreed that God should be re- socialist system, the citizens of
placed by a meditation room “in the U.S.S.R. are guaranteed by
the interests of world peace.” law: (a) freedom of speech; (b)
And true enough, the “myths of freedom of the press; (¢) freedom
religion” have now been abolished of assembly, including the holding
and man reigns supreme in our of mass meetings; (d) freedom of
new government of the world. It street processions and demonstra-
so happens, however, that since tions.
1945 and the founding of the “These civil rights are ensured
United Nations for freedom and by placing at the disposal of the
peace, there has been a steady de- working people and their organiza-
cline in freedom for individuals tions printing presses, stocks of
throughout the world. And all paper, public buildings, the streets,
mankind is momentarily and con- communications facilities, and
stantly threatened with the most other material requisites for the
destructive war that the world has exercise of these rights.”
ever faced. Any educated man — Under the Soviet concept, all
that is, any person who honestly rights come from .government.
searches for fundamental relation- And thus it is the responsibility
ships between causes and effects = of government to specify what
will automatically ask himself if they are and to provide the peo-
there is a connection. Let us start ple with the means to exercise
at the beginning. them.


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

1962 UNITED WE FALL 45

The other concept is found in most clearly observed in the docu-
our own Constitution: “Congress ments and proceedings of the op-
shall make no law . . . abridging erating units of the organization
the freedom of speech, or of the — UNESCO, the Commission on
press; or the right of the people Human Rights, and so on. Here is
peaceably to assemble, and to peti- a random sample from the Cove-
tion the Government for a redress nant of Human Rights, sometimes
of grievances.” And “the right of referred to as “the bill of rights”
the people to be secure in their of the U. N.:
persons, houses, papers, and ef- “Article 21. The states parties
fects . . . shall not be violated.” to the covenant recognize the
And no person shall “be deprived right of everyone to just and fa-
of life, liberty, or property, with- vorable conditions of work, includ-
out due process of law; nor shall ing: (a) safe and healthy work-
private property be taken for pub- ing conditions; (b) minimum re-
lic use, without just compensa- muneration which provides all
tion.” workers: (1) with fair wages and

Under the traditional American equal pay for equal work, and (2)
concept, all rights come from a a decent living for themselves and
source outside of government; the their families; and (¢) reasonable
government is specifically forbid- limitation of working hours and
den to violate these pre-existing periodic holidays with pay.”
rights that belong to each individ- Other sections of that covenant
ual. And since the rights do not specify the right of everyone to
come from government, obviously ‘social security,” “adequate hous-
the state is not responsible for ing,” “medical service,” and so on.
providing the people with the ma- And all of them are paraphrased
terial means for exercising them. from the Soviet Constitution. Un-

der the United Nations concept,
U.N. Follows Soviet Model all rights clearly come from gov-

The United Nations is unmis- ernment, and the government must
takably modeled on the Soviet con- thus provide all the people with
cept of rights, To a startling de- the material means to enjoy them,
gree, its official documents use the As the chairman of the Human
same phrasing found in the Rus- Rights Commission, Dr. Charles
sian Constitution. That fact is dis- Malik, said, “I think a study of
cernible in the U. N. Charter it- our proceedings will reveal that
self, but the true philosophy of the amendments we adopted to the
the United Nations is, of course, old texts under examination re-


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

46 THE FREEMAN March

sponded for the most part more to that induces blind worship instead
Soviet than to Western prompt- of objective reasoning.

ings.” The issue that today threatens

to plunge the world back into bar-
A Mistake To Have Joined; barism is whether the dictatorial
Worse Yet To Stay With It and closed society led by Russia

We American people sponsored shall prevail over the democratic
and endorsed a completely alien and open society led by the United
concept of government when we States. And surely no one will
joined the United Nations. But claim that the United Nations is
such a dramatic change seldom, if going our way; over the years, the
ever, happens overnight. John margin of our so-called “victories”
Adams was referring to that idea has decreased to the vanishing
when he pointed out that the point in that organization. And the
American Revolution was not the soon-to-be-expected admission of
war itself — “that was only the ef- Communist China will complete
fect and consequence of it.” The the process beyond recall.
revolution occurred in the minds Worse still, our hasty and ques-
and hearts of the people, “and this tionable United Nations policy of
was effected from 1760 to 1775, be- supporting any and all revolutions
fore a drop of blood was shed at in a futile attempt “to win the
Lexington.” friendship of the new and uncom-

Likewise, I am convinced that mitted nations” has cost us the tra-
we American people really “joined ditional friendship of Britain,
the U.N.” from 1930 to 1945, as France, The Netherlands, Portu-
we increasingly rejected the tra- gal, and perhaps others. (The fact
ditional American concept of gov- that they may still support us in
ernment as a protector of pre-ex- case of war with Russia will be be-
isting rights and decided instead cause they don’t really have any
that the government should be- other choice.) In return, we have
come the source of rights. gotten mostly abuse and demands

If that is what we really want, for more money from the new na-
we can have it, I am convinced, tions. It is high time we gave some
however, that only a frantic search consideration to the interests of
for world peace keeps us from the United States instead of the
seeing the United Nations for United Nations. Let us get out be-
what it really is—a golden calf fore we are dragged under. ®


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

A_SHORT HISTORY _OF

INGE AVINEE)N

CECIL V. GROVE

GOVERNMENT OFFICIALS of post-World War I Germany deliberately em-
barked upon a policy of monetary inflation as a means (they thought)
of solving the country’s economic difficulties. They assumed that
inflation could be controlled and that ‘““a little inflation” would stimulate
business and make for a healthy economy.

The inevitable results of such criminal tinkering with a nation’s
economy are starkly revealed in these figures from a German history
book (Um Volksstaat und Volkergemeinschaft published by Ernst
Klett, Stuttgart, 1961, page 149):

PRICES IN GERMANY (in Marks)

1928
1914 1918 1922 Summer November
Potatoes (pound) .04 12 80 2,000 50,000,000,000
Egg (one) .08 25 180 5,000 80,000,000,000
Beer (glass) 13 17 60 3,000 150,000,000,000
Meat (pound) 90 2.00 1,200 90,000 3,200,000,000,000
Butter (pound) 1.40 3.00 2,400 150,000 6,000,000,000,000

Out of the economic chaos thus created came Hitler, World War II,
and the omnipotent governments threatening our world today. The
current crisis in Berlin is but another manifestation of the continuing
conflict between insatiable government and freedom-oriented individual
man. The nature of that conflict has not changed over the past six
thousand years, @®

Mr. Grove is a Chief Warrant Officer with the Adjutant General Division, United States Army
Headquarters in Europe. The views expressed here are his own.

47


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

ERICA CARLE

Education Without Taxation

THOUGH MANY have pointed to taught hundreds of other teachers
shortcomings in our system of from all over the world to do the
compulsory education in the Unit- same,
ed States, most persons believe In 1798, at the age of twenty,
that tax-financing is essential if this educational genius opened
education is to be made available his first school in London. At a
to all children. But suppose that time when education for the poor
one teacher could assure the ele- was almost unheard of, Joseph
mentary education of from 500 to Lancaster invited factory workers,
1,000 children at a time! And if miners, peasants, even paupers to
this could be done in one large send their children. And the little
classroom, thus eliminating ex- ones came, often barefooted, rag-
pensive school construction, the ged, and hungry — some eager,
taxpayer might be relieved of a many skeptical at first. With re-
considerable burden. markable speed, the youngsters
Unbelievable as it may seem began to read, spell, write, and
today, there was a teacher who figure, Those thought to be the
not only managed the education least promising children of Lon-
of up to 1,000 children at once, by don blossomed into scholars. Well-
his own efforts, but who also disciplined and responsible, they
E— Co i applied themselves with enthusi-
Erica Carlo is a Wisconsin housewife and free- . . .
lance writer. asm and orderliness, outdistancing

48


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

1962 EDUCATION WITHOUT TAXATION 49

students in the very best schools monitor with the responsibility of
of that day. devoting part of his time to teach-
Lancaster’s school outgrew one ing a class of ten younger child-
accommodation after another, and ren. There were monitors for read-
by the time he was 21, he had de- ing, writing, arithmetic, spelling.
signed and erected his own build- In addition monitors took attend-
ing. The sign outside the new es- ance, ruled paper, gave exams,
tablishment read: “All that will and promoted pupils. Assistant
may send their children and have monitors stood by to take over
them educated freely; and those teaching chores when the senior
who do not wish to have education monitor received his own instruc-
for nothing, may pay for it, if tion.
they please.” Pupils were promoted immedi-
Word spread throughout Eng- ately and individually upon
land, Europe, even North and achievement of the required work.
South America, that on Borough They advanced, subject by subject,
Road in London, one Quaker so that a bright speller moved
schoolmaster was teaching a thou- forward as fast as he learned his
sand pupils of all ages to read, words; in arithmetic one advanced

write, and figure. as quickly as his skill and enthusi-
} asm impelled him. Small classes
A Sight To Behold provided a constant challenge,

How could it be done? Visitors for, if a student missed a ques-
crossed mountains, oceans, and tion, another who discovered the
continents to learn the secrets. error assumed the former's place
Those who came: described what at the head of the class.
they had seen, “An orderly and Lancaster developed an alphabet
beautiful spectacle.... The children wheel, pioneered the use of indi-
were full of joyful animation in vidual slates, used reading sheets
performing duties agreeably var- as a substitute for then-scarce
ied from hour to hour. . . . The books. Lesson books in arithmetic
master had complete control. In were his own creation. There
an instant the whole hubbub could were sand tables on which tiny

be stopped by the word, “Halt!” fingers traced the letters of the
Lancaster began by teaching alphabet.
fundamentals to a few of the most All the senses were stimulated

promising older boys. As soon as at once. The children saw words
a lad achieved the required de- written by the monitor, and read
gree of proficiency, he became a them aloud as they, themselves,


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

50 THE FREEMAN March

wrote; then all held up individual with George III resulted in yearly

slates for correction. contributions from members of
About the room were posted the royal family.
brief mottoes and slogans to in- The system was also being ex-

spire the pupils. Lancaster origi- ported with remarkable success.
nated a few of his own: “Let New York City was the center of
every child at every moment have greatest activity in the United
something to do, and a motive for States. In 1805 a private group,
doing it.” “A place for everything, called the New York Free School
and everything in its place.” Society, was formed under the
On holidays the schoolmaster leadership of DeWitt Clinton, later
took his children on long hikes Governor of New York. Clintons
through the woods, teaching remarks in an address some years
about, and enjoying, the wonders later add credence to stories of
of nature. On Sunday evenings he the effectiveness of Lancaster's
frequently invited large groups of system:
students to tea for informal dis- “When I perceive that many
cussion and brief lessons from the boys in our school have been
Bible. To Joseph Lancaster, liv- taught to read and write in two
ing meant to teach, and he re- months who did not before know
joiced in his achievements. Noth- the alphabet, and that even one
ing pleased him more than the has accomplished it in three weeks
thrill of awakening a young re- — when I view all the bearings and
ceptive mind to a love of learning. tendencies of the system — when
I contemplate the habits of order
The System Spreads which it forms, the spirit of emu-
It wasn’t long before others pat- lation which it excites — the rapid
terned schools after his, and movement which it produces —
former pupils became masters of the purity of morals which it in-
their own monitorial schools. Lan- culcates — when 1 behold the ex-
caster was much in demand for traordinary union of celerity in
lectures, discussions, and consul- instruction, and economy of ex-
tation on his system. pense — and when I perceive one
Donations increased, and among great assembly of a thousand
the growing number of supporters children under the eye of a single
were many famous and influential teacher, marching with unex-
Britons: the Duke of Bedford, the ampled rapidity, and with perfect
Duke of Kent, Lord Somerville, discipline to the goal of knowl-
Robert Owen. In 1805, an audience edge, I confess that I recognize


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

1962 EDUCATION WITHOUT TAXATION 51

in Lancaster, the benefactor of the coming to school hungry, he raised
human race.”’! subscriptions to enable him to give
It is difficult to understand how them a hearty meal every day.
a system of education which was Many of the monitors were from
once so popular and successful other areas and lived with Lan-
could be almost completely forgot- caster as part of his “family” un-
ten. If, as history seems to indi- til they were ready to leave and
cate, Lancaster's system was ef- establish their own schools. Bright
fective, why isn’t it used today? scholars were rewarded with hand-
some gifts: books, medals, and
With Occasional Setbacks toys. Much of the equipment used,
The answer lies partly in factors such as slates and slatepens, had
beyond his control, partly in suc- to be made in small factories he
cess that was too great, and partly was compelled to establish.
in his own personality: for, while He opened a printing office for
Lancaster was a genius at educa- textbooks and pamphlets. The ex-
tional organization, he was a great pected profit from his many en-
deal less gifted in his talent for terprises did not materialize. The
balancing financial accounts. He financial picture was so bad in
tried to do too much! When he 1808 that Lancaster went to deb-
saw that some of his boys were tor’s prison.
"1 This and subsequent references are Friends later obtained his re-
listed at the end of the article. lease, and soon thereafter the

! Gf ine nmi ge pat] Be
= nl i Ju Hii oy a ie



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

52 THE FREEMAN March

schoolmaster, with some misgiv- The missionary schoolteacher had
ings, allowed his friends to take no quarrel with Lancaster, who
over the financial arrangements had freely acknowledged his debt
for his enterprise. to Bell for some features of his
At first, little real change took own system. Mrs. Trimmer, how-
place. Between 1807 and 1810 Lan- ever, stirred sufficient fear and
caster traveled over 7,000 miles, jealousy that in 1811 a rival
spoke 140 times and established education group called “The Na-
nearly 100 new schools for 25,500 tional Society for Promoting the
pupils.? Education of the Poor in the Prin-
Financial difficulties continued, ciples of the Established Church”
however. In addition, new com- was formed under the direction
plications arose. Despite the fact of Dr. Bell.
that all his reading lessons were
taken from the Bible, Lancaster Controversy Arises
steadfastly refused to allow his With the turmoil, Lancaster’s
schools to be used for the promo- schools lost some supporters, but
tion of any particular religious many Church of England members
denomination, For this stand, he remained loyal to his cause. Lan-
aroused the fury of a vocal fac- caster and Bell themselves re-
tion of the Church of England. mained aloof from the contro-
Particularly incensed after Lan- versy, but bitter public arguments
caster received the King's pa- charged with emotion developed
tronage, Mrs. Trimmer — an edu- between the advocates of the rival
cationist and writer — attacked systems.
the schoolmaster with venomous For Lancaster, personally, the
intensity. He was damned and de- unexpected animosity was upset-
graded in print, on the platform, ting. Yet, the long-range result
and from the pulpit. He was called of the heated, bitter competition
a destroyer of religion, a goliath was a race to create more schools
of schismatics, an infidel and athe- and better schools and to serve
ist. Fear was expressed that edu- greater areas.

cation would slip from the hands Andrew Bell's original philos-
of the Church into those of this ophy had been that the poor should
Quaker imposter, not be over-educated, since it

Mrs. Trimmer consulted Dr. would tend to make them unhappy
Andrew Bell, a former missionary, with their station in life. Yet,
who had used a similar system there was the competition of the
with remarkable success in India. Lancasterian system feeding little


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

1962 EDUCATION WITHOUT TAXATION 53

ones knowledge just as fast as however, Parliament voted finan-
they could digest it. cial aid to the British and For-
Sometimes, the very rate of eign Society, as it was now called,
learning in Lancaster’s system and the competing National So-
caused alarm. In one case an anx- ciety. The contributions were
ious father consulted the clergy- eagerly accepted. Thereafter,
man of his parish with the com- schools were compelled to comply
plaint that his children were learn- with the inspection edict. Next
ing so much, so fast, only witch- to go was the monitorial system;
craft could produce such results.” the end of Lancaster's idea in
England came in 1847 when the
Taken Over by Friends Society accepted government as-
In 1810, Lancaster spent six sistance for the training of teach-
months in Ireland and returned ers.
jubilant with the success of his
trip. In his absence, however, and In New York City
without his knowledge or permis- Meanwhile, New York City’s
sion, the committee which man- educational history had followed a
aged his financial affairs had been similar pattern. As the Free
greatly enlarged. The work was no School Society’s first school began
longer his own venture. His status to grow out of its original quar-
had been reduced to that of paid ters, a new location was needed.
employee. Many difficultiesanddis- The City of New York donated a
putes followed, until in 1814 Jo- larger building on the condition
seph Lancaster and the friends that children at the almshouse be
who had “helped” him went their educated.”
separate ways.* On February 27, 1807, New York
By this time Lancaster had a- State joined hands in the educa-
wakened many to the fact that it tional effort. A law was passed ap-
was possible to do a creditable propriating $4,000 to the society’s
job of education at very little ex- building fund, plus $1,000 per year
pense; and education was becom- for general expenses.’
ing a lively political issue. The In 1812, as education was mov-
government began to conduct sur- ing along nicely, the legislature
veys, promote its own ideas, and appointed a representative to look
even tried to appoint school in- after the state’s money. In Janu-
spectors. The first reaction to in- ary 1813 Gideon Hawley took office
terference was so violent that in- as the nation’s first State Superin-
spections were seldom made, Later, tendent of Schools. In the same


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

54 THE FREEMAN March

legislative year, the principles Four years later the Board of
were established of permissive Education of the City of New
taxation by local communities for York was created, established its
school buildings, and that a teach- own schools, and took over respon-
er must have certain moral and sibility for education. Fearing the
scholastic qualifications to be de- effect of total political domination
termined by local authority.® of education, the Free School So-
In 1818 Joseph Lancaster de- ciety, which had earlier been re-
termined to begin life anew by named Public School Society, con-
viewing the development of his tinued to operate. But laws permit-
system in the New World. He ting taxation for schools had al-
received a hero's welcome, spent ready given the city a seemingly
many happy days viewing the unlimited source of revenue. Econ-
schools and expressing approval or omy no longer seemed necessary,
disapproval. He was elated by the or even desirable. In 1846 the Edu-
warm enthusiastic reception from cation Department banned the
the students themselves. monitorial system in favor of pu-
Lancaster spent much time in pil-teachers, and in 1853 the Pub-
New York, as well as Philadelphia, lic School Society merged with the
Boston, Montreal, even Caracas, city system.
Venezuela, at the invitation of
Simén Bolivar, He made as many
enemies as he did friends. Among Today, many view the political
Lancaster's most outspoken foes system of education in the United
were many teachers. While some States with dissatisfied, but re-
viewed the system as a personal signed, acceptance. It is inade-
challenge, an exciting adventure quate and expensive and hasn’t
in education, others believed they lived up to its most modest prom-
were suffering a humiliating in- ises. There is no evidence that we
dignity in being reduced to the are better citizens, that we are
supervision of “transient, ignor- troubled by fewer criminals, or
ant, and unskilled monitors.” De- even that we have a more peace-
spite such opposition, Lancaster ful world through knowledge. In
retained his enthusiasm and con- many cases the very basics of
fidence in his system and was plan- reading, writing, and arithmetic
ning a return to England to re- have been imparted with a good
vitalize it there, when a wagon deal less than phenomenal success.
struck and killed him in New York While the politician may have
City in 1838. been a well-meaning, though

Today


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

1962 EDUCATION WITHOUT TAXATION 55

crafty, suitor in the cause of uni- secular education is one of the
versal education, premarital great social reforms. Yet, had uni-
promises have been forgotten or versal education not been pushed
overlooked. into a hasty marriage with the pol-

That no one would haveeducated itician, methods developed by Jo-
the poor if “society’’ had not as- seph Lancaster might have sur-
sumed the responsibility, has been vived. His system succeeded once
accepted as a proven truth. In the in turning out eager, well-disci-
United States we have been told plined, helpful, moral, and brilliant
for more than 100 years that tax- scholars. Perhaps one day it will
supported, political, compulsory, be needed and allowed again.

FOOTNOTES

1 The Life and Writings of DeWitt 8 Albert Ulmann, A Landmark History
Clinton (Baker & Scribner, 1849), p. 318. of New York (N. Y.: D. Appleton Cen-

2 Henry Bryan Binns, 4 Century of tury Co. 1939), p. 184,

Education, 1808-1908 (London: J. M. T The Life and Writings of DeWitt
Dent & Co., 1908), p. 45. Clinton, p. 320. oy
3 Ibid., p. 19 8 Edgar W. Knight, Education in the

Jy United States (Ginn & Co.), p. 287.
Ibid. p. 65. 9 Encyclopaedia of the Social Sciences
5 Ibid., p. 162. (Macmillan & Co., 1933).
OTHER REFERENCES

Curtis, S. J. History of Education in Lincoln Library of Essential Informa-

Great Britain. London: University Tu- tion, 1944.
torial Press, Ltd,, 1948. MacMillan’s Dictionary of National Bi-
Encyclopedia Americana, 1953. ography, 1892,

Encyclopaedia Britannica, 11th Edition. MacMillan’s Everyman's Encyclopedia.
Higham, C. 8. S. Pioneers of Progress. National Encyclopedia of American Bi-

Longman’s Green & Co., 1929. ography.

Leitch, James. Practical Educationists Slosson, Edwin E. The American Spirit
and Their Systems of Teaching. Glas- in Education. Yale University Press,
gow: James Maclehose, 1876. 1921.

For a complete list of FEE's available publications,
write for catalogue — A LITERATURE OF FREEDOM.

THE FOUNDATION FOR ECONOMIC EDUCATION, INC,,
IRVINGTON-ON-HUDSON, NEW YORK


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

WHO

Fives Milk Prices==
Anyway¥

ANTITRUST OFFICIALS of the Jus- Whole milk and labor are the
tice Department are in Chicago, chief costs in the price of dairy
seeking to learn whether there is products. There seems to be little
price-fixing in the milk supply of the dairy owners can do about
the city. There certainly is, as prices with their principal costs
they could have found out before price-fixed by others with federal
leaving Washington. sanction,

Whether Chicago's dairies are If they are fixing prices within
fixing retail prices will not be such discretionary limits as are
learned for some time. But the still open to them, they are as-
federal government, through the sured of convictions and fines and
Department of Agriculture, ad- perhaps will receive sentences.
ministers farmers’ price-fixing ar- But the farmers’ and the dairy
rangements covering Chicago and workers’ larger activities in price-
79 other areas all over the coun- fixing will continue.
try. Indeed, the individual farmer

The government’s labor laws al- or dairy worker is forced to enter
so have made it possible for two price-fixing arrangements, or be
dairy unions to fix the price of la- penalized.
bor that all Chicago dairies must The effect on the public of
pay. Currently, these unions are price-fixing is the same, no matter
negotiating for more wages and who does the fixing. @®
benefits, seem certain to get them,
and will contribute to the rising

. . Editorial from the Times Bulletin, Van Wert,
price of dairy products. Ohio, August 8, 1961.

66


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

A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN

UNDERSTANDING

PROFITS

WHEN Claude Robinson died last ing the public, including the labor
summer, he left a host of friends. leaders, in order to define the pop-
He also left two thriving busi- ular “image” of profit and the
nesses, the Opinion Research Cor- profit-seeker. The result of Dr.
poration and a second research Robinson’s public opinion survey
company, the renowned polling offers a weird commentary on the
firm of Gallup and Robinson. The average American's ability to cor-
friends will, in due course, die in rect his semantics by the applica-
their own turn, and the business tion of simple arithmetic.
firms will move to the touch of On the one hand, the public's
other directing hands. But when- “guess” is that profits on sales
ever a student of economics is are some four times what they
seeking light on that most contro- actually are. On the other hand,
versial of economic concepts, the this same public responds in craz-
concept of profit, he will, inevitably, ily inconsistent terms to different
find himself compelled to reckon arithmetical ways of posing an
with the book, Understanding identical question about profits. A
Profits (Van Nostrand, $13.75), given company earned $18 million
which Claude Robinson completed profit, net after taxes. Another
just before his untimely end. This company earned 6 per cent after
is worldly immortality enough for taxes on $300 million sales. Ob-
any man. viously, 6 per cent of $300 million
Understanding Profits is a first- is $18 million. Yet 38 per cent of
rate job for many reasons, not the the people in a given public opin-
least of which is that it deliber- ion sample told Dr. Robinson’s in-
ately avoids the polemic note. The terviewers that $18 million repre-
mark of Dr. Robinson’s researcher sented “too much” profit, whereas
calling is on the opening chapters, only 19 per cent regarded “6 per
for the book begins by interrogat- cent on $300 million sales as ‘too

57


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

58 THE FREEMAN March

much.” Fourteen per cent that some 45 per cent of the cor-
thought $18 million profit a “rea- porations reporting to the U. S.
sonable” amount —but when the Treasuryduring the “roaring” dec-
question was posed in terms of ade of the twenties lost money in
“6 per cent on $300 million sales,” the big boom years. After World
69 per cent were willing to grant War II, in the middle of another

the reasonableness of the figure. boom, the number of companies
} reporting losses hit 40 per cent.
Patient Explanations For every dollar gained in the

An H. L. Mencken, at this point, 1920-40 period, forty-five cents
would have murmured something were lost. So we have, not a profit
about boobs and dropped the whole system, but a profit-and-loss sys-
struggle to correct popular misap- tem.
prehensions. But Claude Robinson Dr. Robinson shows in patient
was not a despairing man. Pa- detail what companies have to
tiently addressing himself to overcome in order to make a profit.
arithmetical delinquents, he He also demonstrates the futility
offered charts and clear expository of trying to “redivide” a pie which
language to break through the already yields 84 per cent of its
mathematical fog. Any reasonably substance to the worker. The com-
attentive reader of his book can panies that make the best profit
hardly fail to go away from it usually pay the best wages, charge
with the idea that capitalistic the lowest prices, and offer the
profits, over the years, have been most superlative quality to the
reasonable enough. The average consumer. If workers were ra-
factory worker, as Dr. Robinson < tional, then, they would cheer big-
says, gets 84 per cent of the ger profits for their employers.
money paid out either to em-
ployees or credited to stockholders The Social Functions
as profits. Manufacturing com- P erformed by Profits
panies “crossed the finish” line on Far from being selfish, profits
December 31 of 1958 with an ag- have social functions. One social
gregate profit of 3.9 cents per function of profits, as Dr. Robin-
dollar of sales and 8.6 cents per son explains, is to direct capital
dollar of investment for the decade investment to where it is most
that ended on that date. needed or most effective. Another

Dr. Robinson suggests that is to provide incentive to risk-
these are hardly “lush” figures. takers. Still another is to give the
An even more sobering statistic is workman the most efficient tools.


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

1962 UNDERSTANDING PROFITS 59

If there were no such thing as ‘Administered Prices”
profit, the economic system would Some of the best pages in Dr.
be at sea without a rudder. As for Robinson’s book are devoted to
the “social control” of profits, that the cloudy subject of the “admin-
is provided by competition. Dr. istered” price. When a given mar-
Robinson offers a qualified judg- ket is dominated by a few “oligop-
ment on “legislation” as a “social olists,” which is the fancy word
control.” He tends to look with used to describe a Big Three or a
favor on antitrust legislation pro- Big Four, writers like John K.
vided that it is in “harmony” with Galbraith blithely assume that the
economic realities — i.e., set up to “big fellows” can choose “profita-
curb departures from “workable ble and comfortable stagnation.”
competition.” Well, they might hope to be left in
As for social control as applied peace to make routine profits. But
by “fair trade” laws, government those who put their trust in sheer
price fixing, the imposition of market dominance are generally
quotas, and the attempt to tax marked for a fall. The growing
away “super-profits,” Dr. Robin- popularity of the compact car is
son looks on all these with a com- proof enough that “oligopoly”
pletely skeptical eye. Even in war- cannot afford to think the con-
time they do not work as they are sumer has been nailed down for-
supposed to work. In the case of ever to one standard of product.
“natural monopolies” — electric As a matter of fact, our “oligop-
power, the telephone system — Dr. olists” have been far less slothful
Robinson presents the case for than many businessmen who oper-
government regulation of rates. ate in the sphere of what has been
But he notes to what absurdities called “perfect” competition. Take
“regulation” can go when a sup- aluminum, for an extreme ex-
posed “natural monopoly,” such as ample. Even when there was only
the railroads, suddenly becomes a one big aluminum company, Alcoa,
competitive business. When trucks the volume rose, the uses of the
started thundering over the high- product proliferated, and the price
ways and airplanes began moving dropped and dropped again. In
through the air, the Interstate 1900 five million pounds of alumi-
Commerce Commission should num were produced; by 1959 pro-
have shut up shop, for it was no duction had risen to thirty-nine
longer the warden of anything hundred million pounds.
that could properly be described Aluminum had to strive com-
as a “monopoly.” petitively every step of the way.


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

60 THE FREEMAN March

It fought copper for the empire development capital into other
of electrical transmission. When promising ventures, such as orlon
aluminum was used primarily for and delrin. By keeping its eggs
kitchen utensils, there was brass, distributed in several baskets, Du
iron, and glass to contend with. Pont thus insured itself against
Now that it is going into door and decline in any single line. Does
window frames and roofs and this sound like “profitable and
sidings — and even into an all-alu- comfortable stagnation’?

minum house — aluminum has to

battle it out with wood, plastics, “Profit-Sharing’ Plans

stainless steel, cement blocks, and Dr. Robinson offers a chapter on
a whole host of traditional build- profit-sharing schemes, which he
ing materials. Never any rest — thinks work best for small,

and now that there are three big closely-held companies which have
aluminum companies, Alcoa, Rey- reason to prefer the contingent
nolds, and Kaiser, all busy fight- costs of deferred profit sharing to
ing each other for the market, the the fixed costs of orthodox pension
temptation to sloth would be ab- plans. He has another first-rate
solutely fatal. chapter on the ethics of profit
Dr. Robinson offers the Du Pont making. The morality of profits
Company as another example of should be apparent to anyone who
the “oligopolist” that has had thinks it important to give more
ceaselessly to innovate in order to rather than fewer souls a chance
remain a profit-maker. The Du to live above the poverty line.
Pont Company might have sought Where there are no profits, there
“profitable and comfortable stag- is no growth —and every child in
nation” when it developed nylon excess of two-per-family must, by
and cellophane. But it realized definition, be “surplus” life.
that if it trusted to its patents in There are pages of appendix
these two products, other com- material — charts, detailed reports
panies might come up with better on the sales and profit perform-
fabrics and wrapping materials ances of 600 leading companies —
deriving from entirely different in the back of Dr. Robinson's
patented processes. So it chose to book. It is unfortunate that the
forego expansion of its nylon and cost of including all this material
cellophane manufacturing facili- has run the retail price of the
ties. Licensing Chemstrand to pro- volume up to $13.75. Perhaps some
duce nylon and Olin Mathieson to foundation which believes in the
make cellophane, Du Pont put its profit system will subsidize its dis-


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

1962 OTHER BOOKS 61

tribution at a lesser price. Our self a biologist but who finds in all
economic “heathen” need it. Even life qualities usually conceded only
good Christians will be helped by to the mind of man.
its salutary demonstration that “The creative process,” says
profits have their place in any Carl R. Rogers of the University
“social gospel” thinking that pre- of Wisconsin, “is the emergence in
tends to be interested in the action of a novel relational product
Christian desire to make room on growing out of the uniqueness of
this earth for more human the individual on the one hand and
souls. © the materials, events, people, or
circumstances of his life on the
p CREATIVITY AND ITS CULTI- other.” He further says: “Many,
VATION edited by Harold H. perhaps most, of the creations and
Anderson. Harper and Brothers. djscoveries which have proved to
293 pp. $5.00. have great social value have been
Reviewed by Stephen B. Miles, Jr. motivated by purposes having more
ONE of the future's most fruitful to do with personal interests than
fields for the freedom philosophy with social value, while on the other
may well be psychology. Long dom- hand history records a somewhat
inated by the stimulus-response sorry outcome for many of the cre-
jargon of the behaviorists, offshoot ations [various utopias, Prohibi-
of the same materialism that pro- tion, etc.] which had as their
duced communism and the welfare avowed purpose the achievement
state, and by the contorted obses- of the social good. No, we must face
sion with sex of the Freudians, the fact that the individual creates
psychologists are now pointing to primarily because it is satisfying
“The Miracle of Individual Re- to him, because this behavior is
sponsibility” —as Carlton Williams felt to be self-actualizing. ...”
put it in a recent FREEMAN — even Elsewhere in his essay, Dr. Rog-
when still far from facing its im- ers speaks of the necessity of “psy-
plications in economics and gov- chological freedom” for creativity,
ernment, and describes it as “permission to
This freshening of psychological be free [italics his], which also
thought is seen to good advantage means that one is responsible. The
in Creativity and Its Cultivation, individual is as free to be afraid
edited by Harold H. Anderson. Of of a new venture as to be eager for
the 14 essayists, eight are psychol- it; free to bear the consequences
ogists — nine if we include Edmund of his mistakes as well as of his
W. Sinnott of Yale, who calls him- achievements. It is this type of


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

62 THE FREEMAN March

freedom responsibly to be oneself development,” Anderson says, re-
which fosters the development of lates “to the mutual discovery of
a secure locus of evaluation within common purposes” without “coer-
oneself, and hence tends to bring cion, threat, or guilt,” while so-
about the inner conditions of con- cialization “can be achieved with-
structive creativity.” out regard for the individual and
“Now,” this reviewer thought, without regard for the dignity of
“the professor will certainly have the person,” and he points out that
to say a few words about how a “in the socializing process the
coercive government suppresses child’s differentiation or creativ-
freedom, and how the welfare ity” is confined within narrow lim-
state destroys individual responsi- its.
bility” — especially since he was While the psychologists (and
addressing himself to the problem, lone biologist) tend to emphasize
“How can we establish the external the close relationship between cre-
conditions which will foster and ativity and the freedom of the in-
nourish the internal conditions de- dividual, other contributors to this
scribed above?” But does he? No. volume seem mainly bent on sharp-
To be sure, Dr. Rogers’ field is psy- ening the clichés of socialism, or
chology, not political science or eco- other axes, on the grindstone of
nomics. But he does feel free to es- creativity, Dean Stoddard of the
say a brief criticism of business: School of Education at New York
“In industry, creation is reserved University endorses progressive
for the few — the manager, the de- education and expresses his pref-
signer, the head of the research de- erence for world government. Har-
partment — whereas for the many old D. Lasswell, professor of law
life is devoid of original or crea- and political science at Yale, sets
tive endeavor.” up a division of creativity, “recog-
Repeatedly throughout this and nition of innovation,” which could
other articles, the psychologists serve as a potent weapon of social
tended to approach the libertarian reform. For instance, he applies
point of view. When they came up the adjective “creative” to “cul-
to it, they didn’t exactly back off, tural expansion,” and then asks:
but neither did they follow through. ‘‘Towhat extent has business failed
However, such comments as these to recognize creative cultural ex-
and Dr. Anderson’s contrast be- pansion?” Rollo May, a psycholo-
tween - “social development” and gist in private practice, criticizes
“socialization” augur well for a the older depth-psychological and
carry-over in the future. “Social psychoanalytic theories of creativ-


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

1962 OTHER BOOKS 63

ity which use that magic term to als in the Anderson book and by
substantiate a preconceived doc- New Deal-Fair Deal-New Frontier
trine, attempt to reduce creativity “liberals” who want to brush up on
to some other process, or discredit their creativity:
it by calling it neurotic. “There is but one remedy by
In another recent book, Profes- which order can be restored to the
stonal Creativity (Prentice Hall, faculty of thinking; this is, to for-
260 pp.), the author, Eugene Von get all that we have learned, to
Fange, an engineer at General trace back our ideas to the source,
Electric, somehow leaves the im- to follow the train in which they
pression that creativity in busi- rise and... frame the human un-
ness is the monopoly of the engi- derstanding anew.
neer and the scientist, and that “This remedy becomes the more
managers are ‘“‘uncreative.” difficult in proportion as we think
While the bulk of the Von Fange ourselves the more learned.” @®
book consists of helpful hints to
technical people on human rela- p LETTERS OF H. 7. MENCKEN,

tions, planning and scheduling, selected and annc.ated by Guy J.
specification writing (“In writing Forgue. New * ork: Alfred A.
specifications we should avoid Knopf. 506 pp. « +.95.

wording that is misleading, ambig- Reviewed by I' bert M. Thornton

uous, or subject to any misunder- READING OLD LETTERS to and about
standing”), trouble-shooting, the authors long since dead might
art of talking to a manager, and sound like a chore, but any such
other vicissitudes of an engineer, notion is quickly banished from the
the early chapters contain a num- mind once the reader succumbs to
ber of val...0le insights, notably in the irresistible charm of their au-
connection with his definition: “All thor. For 506 pages this reviewer
thinking is mentally directed cre- reveled in the magnificent prose
~.”” Much more meaning style of one Henry Louis Mencken.
sould attach itself to the concept This is the first collection of
of “thinking” if Von Fange's ob- Mencken’s letters to be published,
servation that “we think only when and one hopes most fervently that
we wish to achieve a conclusion it will not be the last.
that, by implication, did not exist Faced with the task of selecting
before” were widely accepted. He from many thousands of letters,
presents a quotation from the Mr. Guy J. Forgue, editor of this
Abbé de Condillac that could wellbe volume, has “chosen to restrict
studied by some of the intellectu- this selection to the best of Menck-


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

64 THE FREEMAN March

en’s literary letters, along with fields became enamored of social-
a number of others that best ex- ism, communism, and the like in
press his personality and give the the nineteen twenties and thirties,
most vivid and lifelike picture of it is a distinct pleasure to note
the man and his literary activi- that Mencken was never taken in.
ties.” This is but one of H. L. M.'s He recognized the enemies of
facets. Maybe next Mr. Forgue liberty, no matter what their
might put together a collection of guise. In a letter dated May 2,
letters that best express H. L. 1936, to Upton Sinclair he writes:
M.s ideas on politics and politi- I am against the violation of civil
cians, rights by Hitler and Mussolini as

Henry Mencken would be called much as you are, and well you know

an extreme libertarian today — to it. But I am also against the Whole-
sale murders, confiscations, and other
the right of Goldwater! “I be- ; ’

outrages that have gone on in Russia.
lieve,” he said (to Hamilton TI think it is fair to say that you
Owens), “in only one thing and pseudo-communists are far from con-
that thing is human liberty. If sistent here. You protest, and with

i . : : justice, every time Hitler jails an op-
ever a man 1s 10 achive anything ponent, but you forget that Stalin and
like dignity, it can happen only if

: ¢ Company have jailed and murdered
superior men are given absolute a thousand times as many.

freedom to think what they want All in all, these letters — over
to think and say what they want four hundred of them — reveal to
to say. I am against any man and the reader the Mencken whom

any organization which seeks to Albert Jay Nock knew and ad-
limit or deny that freedom.” When mjpeq:
Owens asked if he would limit There is no better companion in the
freedom to superior men, Mencken world than Henry; I admire him, and
replied that ‘the superior man have the warmest affection for him.
can be sure of freedom only if it Las impressed afresh by ps supexh
: : »” ‘acter — 1m a , unseitl-
is given to all men.” Thus Menck- conscious, sincere. orudite, simple-
en was strongly opposed to Com- po; ted, kindly, generous, really a
stockery, to all government censor- noble fellow if ever there was one in
ship of literary works, and he the world.
fought long and hard for the right To give proper credit one must
of authors to write as they pleased add that part of the enjoyment
and about what they pleased. derived from this book came from
When one recalls how many the fact that it is one fine job of
literary figures and artists in all bookmaking. ®


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

SHORTER CLASSICS

of Eugen von Bohm-Bawerk

E SHORTER
CLASSICS

BoHMm-BAWERK January, 1962 $92 pages ~~ $7.50

INVALUABLE TO ALL STUDENTS INTER-
ESTED IN NEOCLASSICAL ECONOMICS,
WHICH IS THE ONLY ECONOMICS THAT
COMPLETELY REFUTES SOCIALIST-COM-
MUNIST ECONOMICS.

CONTENTS Page

I The Austrian Economists 1
Reprinted from January, 1891 Annals of American
Academy of Political and Social Science

I. Whether Legal Rights and Relationships Are Economic Goods 25
George D. Huncke translation ; not previously available

Il Control or Economic Law? 139
John Richard Mez translation; previously
available only in mimeographed form

IV Unresolved Contradiction in the Marxian Economic System 201
Reprinted from Alice Macdonald translation in 1890
with title, Karl Marx and the Close of His System

V The Ultimate Standard of Value 303
Reprinted from September, 1894 Annals

Eugen von Bohm-Bawerk, CAPITAL AND INTEREST

Three-volume set, boxed, 1959 .. ........... $25.00
Three volumes in one, special, 1960 .... $15.00

Paperback Extracts from Volumes | and Il:

The Exploitation Theory, 97p., 1960 . § 1.50 C o
Value and Price, 160p., 1960 ..... ......... $ 2.00 a w

&

Ludwig von Mises, PLANNING FOR FREEDOM fo Q

Essays and addresses, 192p., 1962 $ 2.00 TS

LIBERTARIAN PRESS — 366 East 166th Street —South Holland, Illinois, U.S.A.


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

Ln}