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

IDEAS ON LIBERTY

MAY 1962

Communism Is Not the Wave of the Future . William Henry Chamberlin 3

Socialism Is Not the Answer . . . . . Dean Russell 10
Mental Gaps in Our Thinking about Russia. Lev E. Dobriansky 13
“Let It Cost What It May”. . . . . . Francis E. Mahaffy 19
Individual Liberty in the Crucible of History:

1. The Foundations of American Liberty . Clarence B. Carson 20
The Price of Food . . . . . . . . H. P. B. Jenkins 29
Why Is Paternalism Wrong? . ... . . Leonard E. Read 30
The Walk-Aways . . . . . . . . William H. Wyman 40
Statism and the Free Market « « + + +. SudhaR. Shenoy 44
Our Choice . . . . . . . . . . RobertR. Mulqueen 47
One Big Housing Project . . . . . . Jack Morano 50
ESP, the Downfall of Communism . . . Marceline Bradfield 53

Books:

Money Is as Money Does . . . . . . John Chamberlain 58
Other Books . . . . . . . . . . 61

THE FOUNDATION
FOR ECONOMIC EDUCATION, INC.

Irvington-on-Hudson, New York



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

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

Communism 1S NOT THE WAVE OF THE FutU

WILLIAM HENRY CHAMBERLIN

COMMUNISTS, like the Nazis be- present generation of Americans
fore them, like to regard their will live under communism, with
movement as an irresistible wave or without assistance from the
of the future, destined to inundate death-dealing missiles of which he
the entire world. In the days when likes to boast.
he was the Number Two man — And it is not only communists
after Stalin — among the Soviet who cherish this wave-of-the-
rulers, Vyacheslav Molotov de- future theory. Devoted anticom-
clared that “all roads lead to com- munists, discouraged by apathy
munism.” and weakness in the free world,
The present Soviet dictator, sometimes share this conviction.
Nikita Khrushchev, shouted when go the late Whittaker Chambers,
a group of Western diplomats ho almost singlehanded brought
walked out of a diplomatic recep- Alger Hiss to justice, said to his
tion in Moscow because of an in-
sult: “All the same, we shall bury
you.” In his more benevolent mo-
ments Khrushchev has predicted

that the grandchildren of the winning side for the losing side.
Mr. Chamberlin is a skilled observer and re-

porter of economic and political conditions at But it is better to die on the losing

home and abroad. He has written a number 3 i -
of books, has lectured widely, and is a con- side than to live under com

tributor to The Wall Street Journal and many munism.”’
nationally known magazines. .
Illustration: United Press International Photo It would certainly be folly to

wife when he quit the communist
underground in revulsion and
disgust:

“I know that I am leaving the

3


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

4 THE FREEMAN May

brush aside as insignificant the communism was simply imposed
threat of Soviet and Chinese ex- by the military power of the Red
pansionist communism or to un- Army.)
derrate the assets which com- Czarist Russia, despite its im-
munism possesses: a creed that posing size and powerful military
admits no doubt, for instance, an and police build-up, was a colossus
unrivaled apparatus for espion- on feet of clay. There was a sense
age and subversion, an ability to of sullen alienation between the
concentrate economic resources on poor, uneducated majority — most
what seems to its leaders to be the of the peasants and the industrial
most essential political and mili- workers —and the well-to-do edu-
tary tasks. cated aristocracy and middle class.
But excessive pessimism is also There was resentment on the part
out of place. Time is by no means of peoples who had been brought
necessarily on the side of the unwillingly under Russian power,
Reds, Assuming that the free Too few Russians had a sense of
peoples keep their heads, remain having a stake in the stability of
united in purpose and action, firm the country’s economic order. Add
and clear in resolution, there are the pressure of World War I, and
no less than seven good reasons the ingredients of violent revolu-
why communism will not be the tion are there. In this age of the
wave of the future, why it may be affluent society there is no par-
expected to recede or even to col- allel in Western Europe or Amer-
lapse, rather than to advance to ica for prerevolutionary Russian
the conquest of Europe outside the conditions.

Iron Curtain and then of America. This is perhaps even more true
wo . as regards China, where most of
The Situation Is Different the people lived on a more pre-

First, the conditions do not carious subsistence basis than the
exist in the Western world that Russians. Eight years of Japanese
made it possible for a small group invasion and occupation of all
of well-organized fanatics, exploit- China’s main cities had disorgan-
ing chaotic conditions after unsuc- ized the administration and econ-
cessful war and resorting to ruth- omy of the country. Poor and
less demagogy, to seize power first ignorant people furnish the most
in the Soviet Union, later in receptive audience for communist
Yugoslavia, finally in China. (The demagogy and false promises. As
other Soviet satellite states are they are, half-starved at back-
not considered, because in these breaking labor in communes,


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

1962 COMMUNISM IS NOT THE WAVE OF THE FUTURE b

many Chinese doubtless feel that that a communist-ruled country
they made the biggest mistake of could secede from Moscow’s lead-
their lives in siding with the com- ership. Much more potentially
munists against the nationalists. significant is the evident rift be-
But they are caught in a steel trap tween Moscow and Peiping. No
of military and police control and one can say with assurance how
universal spying from which it is far this will go. Relations between
very hard to escape. the two communist giants are like

Again, there is no duplication an iceberg, with much more sub-
in the Western world for the con- merged than showing. But the bit-
ditions which preceded the com- ter, if veiled, polemics which have
munist take-over in China. This been flying back and forth be-
is also true as regards Yugoslavia, tween the two big communist cen-
a poor, economically retarded ters for years make it clear that
Balkan state which was torn to Peiping can no longer be rated as
pieces by racial internal feuds a Moscow satellite.

during the German occupation. As has often happened with re-
ligious movements, nationalism
Schismatic Tendencies has cut across the dream of inter-

Second, international commu- national communist solidarity.
nism is now displaying clear ten- Tito’s expulsion took place after
dencies toward fission and schism. he resented Stalin's desire to butt
Much of the supposed strength of in and run Yugoslavia over Tito’s
international communism was de- head. Much of the Soviet-Chinese
rived from its unity. But the old quarrel may be traced back to dif-
impression of a little group of ferences of national development
men in Moscow able to dispose of and conflicts of national interest.
the strength not only of the Soviet This tendency of communism to
Union, but of every other com- break up into factions and schisms
munist-ruled nation no longer cor- is one of the strongest reasons for
responds with the facts. doubting that a communist world

Yugoslavia is still a communist state will ever emerge.
country, although with some modi-
fications, including the virtual
abandonment of collective farm- Third, is Soviet imperialism.
ing. But dictator Tito’s breach The rule of one country over an-
with Moscow in 1948 is likely to other is an increasing political and
rate more than a footnote in his- moral liability, And, while the his-
tory. For this was the first proof toric empires of Great Britain,

Soviet Imperialism


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

6 THE FREEMAN May

France, the Netherlands, and Bel- Failure of Collective Farming
gium have been diminishing to the Fourth, there is the dismal
vanishing point, the Soviet Union proved incompetence of commu-
has become the world’s leading im- nist direction in farming. Over the
perialist power, with approxi- long pull a nation, like an army,
mately one hundred million sub- marches on its stomach. Soviet
jects in eastern and central collective farming has been more
Europe. than a monstrous crime, commit-
If the peoples of comparatively ted by the state against millions
ignorant and backward Asian and of peasants and members of their
African countries insist on throw- families who were driven from
ing off their former European their homes, sent to forced labor,
overlords, is it likely that proud starved in a great famine in order
peoples with long traditions of in- to force the peasants to submit to
dependence, peoples like the Poles this new form of serfdom. It has
and Hungarians, can be held for- been one of the biggest productive
ever on a Moscow leash? Even failures in human history. For
more strain is involved in the three years Soviet agriculture has
maintenance of the quaintly mis- stood stock-still, despite Khrush-
named “German Democratic Re- chev’s constant dashes around the
public” (which is neither German, countryside, exhorting, denounc-
nor democratic, nor a republic) in ing, firing incompetent farm ad-
the Soviet Zone of Occupation, ministrators and officials who lied
where the monstrous Berlin wall about figures of output. The sys-
is necessary to keep a large part tem of putting the peasants to
of the population from stamped- work on big farms under the di-
ing to political and economic free- rection of managers who are
dom in the German Federal Re- chosen for commitment to the
public across the line of demarca- Communist Party rather than for
tion. Germans, Poles, and Hun- knowledge of agriculture has not
garians may be cowed for the worked.
present. But the maintenance of According to the latest figures,
Soviet imperialism will involve 88.3 million workers are employed
ever greater strains in the future on Soviet collective and state
and may end some day in a catas- farms. (The difference between
trophic blow-up. At the least, the two is that in theory collective
schismatic tendencies are likely to farms are the property of their
appear in the leadership of these members, while state farms are
satellite countries. out-and-out state enterprises, em-


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

1962 COMMUNISM IS NOT THE WAVE OF THE FUTURE 7

ploying workers on a wage basis.) matism will not permit. In China
American agriculture now has 5.7 the communes into which the
million workers. But with more peasants were dragooned have
than six times as many people em- caused perhaps even more suffer-
. ployed, Soviet agriculture turns ing than the Soviet collective
out (for a people of bread-eaters) farms. The general testimony of
only two-thirds as much grain and refugees who escape to Hong Kong
less than half as much meat as or Macao, at the risk of their lives,
comes off American farms. Com- is that near-starvation conditions
parative figures for vegetables prevail in the communes, that the
and fruits would be even more un- lowest menial jobs in Hong Kong
favorable to Soviet agriculture. or Macao pay far more in terms
Perhaps the surest giveaway as of rice and other foodstuffs than
to what is wrong with Soviet agri- the peasants in the communes
culture is the practice in Soviet ever see.
newspapers of publishing a spate The surest recipe for creating
of reports from “the agricultural acute shortage, if not famine, in
front,” urging the collective farm- a naturally rich agricultural area
ers of Kazakhstan to get busy is to introduce collective farming.
with the wheat harvest or prais- Does this look like a “wave of the
ing a collective farm in Ryazan future,” especially when con-
Province for getting in its rye trasted with the farm produce
ahead of normal time. An individ- which modern technology, com-
ual peasant who owned his own bined with private land owner-
land and had a direct personal in- ship, creates in noncommunist
terest in raising as large a crop lands?
as possible would not need any
such prodding. Both in Poland and They Vote with Their Feet
in Yugoslavia the food situation Fifth, is what may be called
eased considerably when the peas- the verdict of the feet. Lenin said
ants were given the option of stay- that the Russian army in 1917
ing in collective farms or getting voted for peace with its feet, by
out. Most of them chose to get out. running away. There is no free
Khrushchev is caught on the voting under communist rule. But
horns of a dilemma. The method people have been voting against
by which he could achieve a big it, with their feet, in impressive
upsurge in peasant output would fashion. For an individual to quit
be to restore private property in permanently a noncommunist for
land. But this his communist dog- a communist country is about as


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

8 THE FREEMAN May

rare as the proverbial man biting and sometimes decades of inten-
a dog. Movement in the opposite sive indoctrination. It was teen-
direction, away from communist- age boys and girls, products of
ruled lands, is on a massive scale. communist education, who sparked
More than three million Germans the revolt against communism in
have testified to preferring free- Hungary. Even in the Soviet
dom and capitalism to dictatorship Union, where the process of prop-
and communism by making tracks aganda and indoctrination has
for the Federal Republic. The gone on much longer, there is
erection of the notorious wall, abundant evidence in the con-
sealing off East from West Berlin trolled Soviet press and also in
is a memorial, erected by the com- reports brought back by foreign
munists themselves, to the peni- visitors that the younger Soviet
tentiary conditions under which generation is very far from being
the shrinking population of the a group of faceless robots who act
Soviet Zone lives. Does this look and talk and think in line with
like the wave of the future for official slogans.
Germany? Soviet newspapers are full of
Equally striking was the stam- angry complaints about the doings
pede for freedom from Hungary of individuals who prefer the
in 1956, after the hope of liberty quick rubles of speculation to the
had been extinguished; the tre- limited rewards of regular toil at
mendous flight from North Korea the factory bench. There are so
to South Korea; the sizable move- many shortages of supply, so
ment from North Vietnam to many loopholes in the clumsy sys-
South Vietnam; the unprece- tem of state distribution, that
dented pressure of refugees from handsome illicit profits can often
Red China. be earned by individuals who, in
If communism is really the one way or another, play the role
wave of the future, bringing bet- of surreptitious middlemen and
ter living conditions for the aver- see that the desired goods reach
age man, it seems improbable that eager and frustrated customers.

so many people would run away Soviet moralists like to repre-
from it, sent drunkenness and juvenile de-

linquency as products of “bour-
Revolt Among the Youth geois degeneracy.” But this ex-

Sixth, communism has failed to planation breaks down in the face
hold and mold the young people of the prevalence of such trends
under its rule, even after years among Soviet young people who


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

1962 COMMUNISM IS NOT THE WAVE OF THE FUTURE 9

have been brought up under com- viction that the capitalist, or in-
munism. The true explanation dividualist, economic system is
seems to be the ghastly boredom foredoomed to collapse, leaving
of Soviet life, especially in the communism the only competitor in
provinces, and a growing impa- the field. Nothing of the kind is
tience among young people, espe- in reasonable prospect and all the
cially of the educated class, with resources of Soviet propaganda
stale clichés of official propaganda. are increasingly ineffective in per-
Almost all travelers in the suading the Russian people that
Soviet Union bring back stories of it will happen.
intense interest among Soviet No doubt the individualist sys-
young people in everything West- tem would have functioned much
ern, the cut of clothes, styles in better without the injection of
automobiles, jazz records, new large doses of socialistic drugs.
forms in music and art. The model But even as it functions today,
Soviet boy and girl who seal their there is a great difference in the
vows of love with pledges to outdo enjoyment of individual liberty
all production records in turning and in the scope allowed for profits
out pig iron and milking cows and consumer choices as between
seem to exist mainly in the pages America and Western Europe, on
of Soviet hack novelists. It could one side, and the Soviet Union on
be that, far from seeing America’s the other. Especially dishearten-
grandchildren living under com- ing to communist peddlers of
munism, the next Soviet genera- gloom and doom has been the
tion will demand big modifications vigorous leap forward of the
in the present structure of com- European economy in the last de-
munism. In any case, a system cade. Some European countries,
that clearly does not win the en- notably Germany and Italy (where
thusiastic confidence of its own the long chronic unemployment
youth is not likely to be a world- has very much abated) have
conquering force, achieved annual industrial growth
rates very close to those of the
Soviet Union, and bringing far
more real goods and satisfactions
Seventh, but by no means least to their peoples. The Soviet con-
in importance, one of the big cards sumer is starved for the upkeep
of Soviet agitation has been de- of a big military machine and
cisively trumped by the course of shortchanged by poor quality of
events. This is the dogmatic con- housing and consumer goods.

Capitalism Is Not Collapsing
as Predicted


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

10 THE FREEMAN May

Now that the rigid seclusion im-
posed by Stalin on the Soviet
Union has relaxed, now that for-
eigners visit the Soviet Union and
a limited number of Soviet citi-
zens travel abroad, it becomes
harder and harder to conceal from
the Russian people the fact that
the United States and Western
Europe are far ahead of the
Soviet Union in everything from
personal freedom and variety of
choice to availability of housing
and automobiles. (The Soviet

SOCIOLOGISTS generally agree that
“aid to dependent children” (in-
cluding foster homes for them) is
a great improvement over the old
system of orphanages and other
institutions. And for the past 50
years, most sociologists have ad-
vocated more government aid for
this purpose — that is, to permit
the children of deceased or desti-
Dr. Russell is Professor of Economics at Rock-
ford College and Chairman of the Department
of Economics and Business Administration.
This article is from his weekly editorial column

in the Sunday edition of the Rockford (Illi-
nois) Morning Star, January 21, 1962,

Union has 3 cars per 1,000 citi-
zens, to Europe's 85 and America’s
339.)

Perhaps a student of history,
writing with the perspective of
the year 2,000, will identify com-
munism in retrospect as not the
wave of the future, but the back-
wash of a reactionary past, swept
away by the increasing incompati-
bility between its false and sterile
dogmas and the natural instinct
of human beings for a freer, more
varied way of life. @

tute or depraved parents to grow
up in a more normal home environ-
ment than can be found in an in-
stitution.

Unquestionably, the sentiment
behind that objective is excellent.
I am convinced, however, that so-
ciologists who advocate more gov-
ernment subsidies as the best so-
lution to this problem are over-
looking a vital point.

For example, orphanages and
similar institutions have tradi-
tionally operated on straight so-


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

1962 SOCIALISM IS NOT THE ANSWER 11

cialistic theory. The authority ex- The superintendent immediately
pects each youngster to contribute installed an arrangement that was
to the group whatever he can. And as close to a free market operation
each receives from the authority as the situation would permit. All
whatever he needs. Individuality of the children (even the six-year-
is not encouraged. olds) were put on an incentive
The effect of this equal treat- system of one kind or another.
ment has generally been dismal for Those who were age 12 and over
all concerned. Sociologists are well were assigned basic quotas for
aware of the drawbacks of insti- their regular farm and house jobs.
tutional life for children, but they They were .also given small plots
seldom if ever consider the possi- of land for themselves, and free
bility that the cause of the unde- time to use as they pleased. If they
sirable consequences is the social- produced more than their quotas,
istic arrangement itself, rather they were paid in cash or in addi-
than the absence of parents. tional free time. Each could use as
he pleased any money he earned
from his own land and from his
Perhaps this true story (merely own free time.
one of many I could select for the Not surprisingly, the first thing
purpose) will help to illustrate that this competitive system
the point I am here making. brought to light was the fact that
A new superintendent arrived no one is equal to anyone else. That
at an orphanage near Lynchburg, had always been true, but the so-
Virginia, in 1932. He discovered cialistic system had tended to con-
that the institution had always ceal it.
been run on the socialistic princi- Quite a number of the kids
ple of “to each according to his (perhaps one out of five) didn’t
need; from each according to his prosper under the new arrange-
ability.” The children were treated ment. They earned nothing. And
absolutely alike; in fact, it was for all I know, the experience may
necessary to assign each one a have given them an inferiority
number in order to distinguish complex.
their equal and identical posses- Most of the children, however,
sions. That socialistic paradise of were happy indeed with the new
equality and security, however, system. Almost all of them were
was a drab and deadening place better off in one way or another.
without challenge; kids were al- And none ran away.
ways running away from it. They used all of the customary

An Orphan’s Experience


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

12 THE FREEMAN May

ways for youngsters to earn money, were fewer orphans but because
and then invented a few of their government aid to dependent chil-
own. Frequently, they produced the dren soon abolished the need for
season’s earliest tomatoes in that the institution. It is now closed.
area, and sold them at a high price.
Sewing, baby sitting, dishwashing, Government Must Provide
cleaning, car washing, snow shovel- Today’s children of deceased and
ing, shoe shining, delivering destitute and depraved parents are
papers, selling magazines — you now all taught that it is the duty
name it, and some boy or girl tried of government to support them, as
it. well as their parents and grand-
One boy got rich — almost $100 parents and others. Since they are
in 15 months. Most of it came from impressionable and adaptable teen-
his new business of selling live agers, almost all of them accept it
minnows as bait to fishermen. He as right, and teach it to their own
finally had to hire several of his children. Thus, after 30 years of
friends to catch minnows for him such instruction, it is hardly sur-
to sell. prising that most American people
When those kids left the or- now believe that the primary func-
phanage at age 18, they knew that tion of government is to provide
people are not equal. They had been for all who are having economic
taught that their futures depended difficulties — real or merely com-
strictly on their own abilities and parative,
efforts. Thus, they were a bit sur-
prised to discover that the world Under that socialistic philoso-
they were entering was moving phy, crime, greed, and immorality
backwards toward the socialistic on all levels of our society are in-
system of compulsory equality and creasing steadily, both absolutely
security they had abandoned. But and percentagewise. Most sociolo-
since they were impressionable gists are still teaching and advo-
and adaptable teenagers, most of cating more government subsidies
them soon reverted to the old to stop it.
philosophy of their new leaders. Perhaps they will eventually give
Over the years, the number of serious consideration to the pos-
children in that orphanage de- sibility that socialism is not the
creased steadily—not because there cure but the cause of the problem.


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

MENTAL GAPS in our thinking about Russia

MYTHS the Free World thoughtlessly accepts

LEV E. DOBRIANSKY

ALTHOUGH we have dissolved much of Soviet Socialist Republics. But
of the fog in our thinking about as the ‘boss’ nation of the com-
Russia during the past ten years, munist federation it strives to
our concept of this global menace make the world believe that the
still remains distorted by a series other nations are natural members

of assiduously cultivated myths. of one big Russian family whose
In fact, I have just now momen- papa sits in the Kremlin.
tarily nourished one of these This is not just a semantic quib-

myths by saying, “our thinking ble. Moscow wants us to forget
about Russia” when I should have that its empire began with the
referred to the “Soviet Union.” gun-point capture, between 1918
This is the most common myth: and 1922, of over fourteen non-
using “Russia” and “the Soviet Russian nations that differ, often
Union” interchangeably as if they markedly, from Russia proper in
were the same territory and the language, race, history, culture,
same people. It suits the com- and religion. Simply stated, these
munists just fine when we eommit nations are no more Russian than
this error. the Irish are English, or than the

Russia is only one of the fifteen Japanese are Chinese. They were
entities that comprise the Union first subjugated by the Czars, then
UE — . more terribly resubjugated by
Grorgeioma University ss well known ssa Lenin and Stalin, and are still in

writer and lecturer on communism and Soviet - .
policy. captivity under Khrushchev.

13


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

14 THE FREEMAN May

When they are misidentified as This myth is unwittingly en-
Russian, it serves Moscow’s pur- couraged by the failure of our
poses because the term Russia by- press and news commentators con-
passes the fact of a Soviet empire, tinually to emphasize that the So-
and obscures that empire's inter- viet Union is a vast and brutally
nal problems and inherent weak- forged empire within an even more
nesses. Morever, when we call the wickedly wrought communist em-
people of the many non-Russian pire. Prominent Americans on oc-
nations Russians, we in effect ig- casion perpetuate this myth of a
nore their legitimate feelings of Soviet Union of freely federalized
national pride and loyalty, and we states when they refer to Ukraine
appear to approve of their forci- as Russia’s Texas and compare
ble absorption into the communist Byelorussia to Massachusetts!
totalitarian empire. Part of the price we pay for this

But even more important, the thoughtlessness is our failure to
acceptance of this first myth con- convince millions in Africa, Asia,
ditions people to an easy and often Central and South America that
unquestioning belief in other we are not the imperialistic and
myths that build up the false face colonial monster that the commu-
the Kremlin shows to the world. nist empire builders charge us as

being.
A Federal Union

For instance, the Kremlin com- The Nationality Problem
munists and their apologists in The Soviet Union’s myth of it
America have for years spread the being a free federal union similar
fiction that the U. S. S. R. is a to the United States of America is
federal union of states very much supported by what may be called
like the United States of America. its population myth. This is ex-
This spurious claim is obviously pressed in such terms as ‘the na-
an attempt to equate Russia’s tional minorities” and ‘the na-
armed conquest and forced incor- tionality problem” in the Soviet
poration of other nations with our Union, with the suggestion that
union of fifty states and territories it parallels the U. S. minorities
that freely willed their own feder- situation but is handled with more
alization. Ours is a single and free- justice and wisdom, and with
ly united nation; the Soviet Union much less friction.
is a multinational empire held to- Here again we see the hand of
gether by totalitarian brutality, masterful propagandists, unin-
but disguised as a federal union. hibited by obligations to the truth,


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

1962 MENTAL GAPS IN OUR THINKING ABOUT RUSSIA 15

turning gullible minds away from is, the mistake many anti-Soviet
the fact of the captive non-Russian individuals and agencies make
nations in the Soviet Union, and when they rebuke other fervent
toward the scarlet fiction that opponents of the Soviet Union who
some 214 million Russians loving- customarily assert that the free
ly stand together under the ham- world’s enemy is ‘totalitarian
mer and sickle. Russian imperialism.” The burden
The facts contradict this Soviet- of their protest against this char-
created illusion. About 54 per cent acterization is that our real enemy
of the U.S.S.R.’s population is non- is international communism, and
Russian. In fourteen of the Soviet that the term ‘totalitarian im-
republics non-Russian natives are perialism” lays the crimes of com-
a majority of their population. munism on the Russian nation and
Only a propagandist indifferent to people, rather than on the Marxist
truth would call these nations, ideology.
with their native majorities, ‘“na- Moscow has no quarrel with this
tional minorities.” They are na- argument. It permits her to con-
tions with distinctive cultures and tinue accumulating slave colonies
histories, one of which goes back behind the facade of Marxist his-
4,000 years. But by referring to torical materialism that has no
them as “national minorities” relationship to the Soviet empire.
Moscow further diverts attention When we attack Soviet com-
from the empire it rules and the munismas the sole enemy, Khrush-
colonialism it practices as a fixed chev has only to reply that the
policy. “imperialist West” is opposed to
It is grimly amusing to note the concept of soviets, which are
that Karl Marx called the Czarist no more than representative
empire ‘a prison-house of na- workers’ councils.
tions” — an even more appropriate But when we point to Russia's
epithet for the system that today history of imperialism — during
pays lip loyalty to communism’s the Czars under the banners of the

founder. Third Rome and Pan Slavism, and
since 1918 under the guise of com-
Misplacing the Blame munism — then Khrushchev can do

The free world’s acceptance of little more than rage impotently,
these Soviet myths is indicated by as he has most notably done when
another common error we make — Wwe celebrated Captive Nations
one the Kremlin totalitarians are Week.
content to leave uncorrected. That Moreover, when we speak of


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

16 THE FREEMAN May

Russian totalitarian imperialism history, but reaches far back to
and refer to its colonialism and distort and twist the chronicles of
the certainty of ultimate Moscow earlier times to fit its propaganda.
control and empire absorption, There is, of course, no special
then we are dealing with facts brotherly relationship between the
that have flesh and blood meaning Soviet Union’s non-Russian na-
in the world of today. Restless tions and Russia. Nor do they rec-
millions of have-nots are more ognize the Russians as their bene-
easily aroused against imperialism factors. In fact, they know that
and colonialism — which they think Russia would be a second-rate
they have experienced and under- power if deprived of its economi-
stand — than against communism, cally rich captive nations.

which they do not know or under- Although the big brother song

stand. is crooned primarily to those
within the Soviet Union, it is also
The Big Brother Myth yodeled in the free world to dis-

In order to solidify its empire courage us from thinking of
and lull the suspicions of newly Kremlin power as a totalitarian
acquired colonies, Moscow has for empire without precedent in his-
years circulated the Big-Brother tory, extending from the Danube
myth: the figment that the to the Pacific.

U.S.S.R. is an ever-loving brother- It is no coincidence that the
hood, with the Russians them- Soviet myths we have been dis-
selves always the benevolent big cussing complement and support
brothers. each other. They are the carefully

However, there are some false devised and skillfully circulated
notes in this sweet song: for ex- inventions of propaganda tech-
ample, that the non-Russian na- nicians who employ truth only
tions in the Soviet Union do not when it serves their purposes.
want to be independent, and that
they are grateful to the Russians [tf Began Before 1940
for whatever they have of well- Moreover, when we fall into
being. In order to make this cam- these several propaganda traps,
paign more plausible and palatable we often then unwittingly do some
the Kremlin ordered a rewriting myth-making of our own in behalf
of the early histories of Ukraine, of the Kremlin. For example, we
White Ruthenia, and Muscovy find ourselves dating the begin-
(Russia). Moscow not only com- ning of Red Russian imperialism
piles dishonest records of its own as of the 1940's when Moscow


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

1962 MENTAL GAPS IN OUR THINKING ABOUT RUSSIA 17

seized the Baltic States and then dependence of the captive nations
moved into Central Europe. We both within the Soviet Union and
point to the capture of these the more recently acquired “satel-
“satellite” nations and suggest lite” nations.

that a just and enduring peace We can best engender this
could be established if the Iron spirit of revolt against Red
Curtain were pushed back to the tyranny by continually rededicat-
Soviet Union’s prewar borders. ing ourselves to the great tradi-
Thus we imply that the Soviet tions that have made us a power-
Union is truly Russian, a freely ful nation of free men. However
organized federation of some 214 incomplete may be our achieve-
million Russians and some foreign ment of ideal freedom, neverthe-
language minorities such as are less we still stand before the world
found in our own country. The — and particularly before the cap-
Russians’ record of imperialist tive world —as an eloquent ex-
aggression between 1917 and 1940 ample of freedom and its rewards.
is consequently ignored. Russia’s When we stand on this founda-
basic empire goes unremarked, tion -—and resolve it shall not be
while its captives — greater in undermined — we can in all truth
number than the total “satellite” and consistency reaffirm our na-
population — perhaps conclude the tional tradition that all the peoples

world has forgotten them. of the world have the God-given
Co right to determine their own des-
Endorsement by Implication tiny, free of external coercion or

Finally, the myth of peaceful interference. And inherent in this
coexistence between the Soviet tradition is its logical extension
Union and the free world amounts that every individual has the basic
to little more than agreement that right freely to choose his own way
the Kremlin shall be permitted to of life, without dictation from
strengthen its empire and perfect coercive government.
its plans for the subversion and This inspiration, example, and
eventual conquest of the free goal will always remain our major
world. Peaceful coexistence is a contribution to the freedom of
form of negative support of Rus- other peoples, and whatever else
sian totalitarian imperialism. we do for them should be done

The alternative is not war, but within and as an expression of
the development of a relentless these principles.
spirit of revolution against Rus- Peaceful coexistence, a term
sian imperial rule and for the in- first used by the wily Lenin, is a


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

18 THE FREEMAN May

Kremlin cold war propaganda prop And this from a centrally con-
‘with great slogan value because trolled international conspiracy
it appeals to our yearning for that plots the subjugation of still
peace. But since the phrase prop- more nations, while the free world
erly embraces a free and liberal since the end of World War II has
exchange of cultures, ideas, and added to its rolls over 85 former
information, it is impossible of colonies, protectorates, and other
true realization. The Iron Curtain dependent areas — with a total
cannot be lifted without endanger- population of 800 million people
ing the survival of the Russian — most of them helped to national
totalitarian empire. And that is independence by the Western
all the Kremlin is interested in powers upon whom they were pre-
preserving and expanding. viously dependent.

It is instructive to observe that Thus, as the Western nations
Moscow attempts no defense of its abandon colonialism, Russian im-
brazen colonialism, but instead perialism retains all of its captives
shifts the spotlight from itself to and hungers for more.
others by shamelessly demanding, When the world realizes — as it
as it did in December 1960, that must for its salvation — the colos-
the United Nations call for an end sal hypocrisy that shields Mos-
to colonialism. This from a power cow’s malevolent ambitions, then

that holds at least 22 nations — we may hope for an end of the
totaling over 214 million souls — terror that bestrides this little
in direct, iron-bound captivity. star on which we live. @®

POPULATION FIGURES
Major National Entities in U.S.S.R.*

Russians 98 million

Non-Russians 116 million
Estonia 1,200,000 Idel-Ural 15,000,000
Latvia 2,100,000 Georgia 4,000,000
Lithuania 2,700,000 Armenia 1,800,000
Byelorussia 10,800,000 Azerbaijan 3,700,000
Ukraine 42,000,000 Turkestan 17,600,000
Cossackia 10,000,000 Others 5,200,000

® Rounded estimates based on 1959 U.S.S.R. census.



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

ra pUSTA Lol oi CUT

“LET IT COST WHAT IT MAY”
FRANCIS E. MAHAFFY

THE BRIDGE was sturdily con- comes to putting into words their
structed and esthetically satisfy- lack of concern for the way they
ing. It spanned a deep ravine in use other people's money.
the former Italian colony in East Reflect on our space program.
Africa. I drove across it recently No expense is to be spared in the
and my eye caught some words effort to place an American on the
on one of the arches: “Ca Custa moon in this decade. A prominent
Lon Ca Custa.” I asked an Italian columnist acclaims the project,
friend to translate for me. It was even though it may have no mili-
a motto, he said, which might be tary value, for the sake of pres-
freely rendered as: “Let It Cost tige in the world-wide popularity
What It May.” I inquired about contest with Russia. It matters
the bridge and learned that it had not that in the process we may
been built in the heyday of Italian wreck the economy and thus open
expansiveness under Mussolini’s the gates to the Russification of
fascism. The motto perfectly fitted our society! ‘Let it cost what it
the imperial mood of Italy in the may,” for the money comes from
thirties, and it comes pretty close the people, and not the govern-
to capturing the mood which ment.
reigns in every country today — This cynical motto is an obvious
although few governments or in- betrayal of American ideals. The
dividuals are so frank when it sooner we renounce it, privately
and politically, the sooner we may
The Reverend Mr. Mahaffy has served since commence restoration of our erod-

1945 as a missionary of the Orthodox Presby- .
terian Church in Eritrea, East Africa. ing freedoms. ®

19


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

THERE IS a growing awareness
that we Americans, individually
INDIVIDUAL and as a people, have lost our
bearings. Some try to still the un-
easiness that this awareness
arouses by adopting public pos-

! tures of confidence. Others react
LIBERTY by denouncing those who suggest
that everything is not just as it

should be. Groups are being

. formed throughout the land that
Hil he focus on this or that ailment as
the source of our troubles. The ex-

tremes are represented by the

quietism of President Kennedy and

the near hysteria of the Minute
Men.

Our actual condition may be

likened to that of a company of

0 people which, having set out upon

a journey, has been lost in a jun-

gle, The acknowledged leaders,

fearing to divide and frighten the
people, refuse to admit they have
lost their way. As for the rest,

they are divided, and fall roughly

into three camps. The first group

would have everyone turn back,

CLARENCE B. CARSON retracing their steps to the place
from whence they had come. The

second group favors staying where

they are. The situation, they say,

Dr. Carson is Associate Professor of History at

Jacksonville State College in Alabama. This

is the first of six articles in a series on In-

dividual Liberty in the Crucible of History. The

second one, ‘“Undermining the Foundations,”
appears next moth.

INustration: Tower of Old North Church, by
A. Devaney, Inc., New York.

1. The Foundations of American Liberty


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

1962 THE FOUNDATIONS OF AMERICAN LIBERTY 21

is tolerable, and conditions are Commission on National Goals),
familiar. The third group, to only rework the tired clichés of a
which the leaders profess to be- bankrupt “liberalism.” Nor should
long, urges moving on, though we turn to the psychologizers who
none claims to know where such a will give us their pet theories
course would lead. Dangers lie be- about why we think something is
hind, for many have seen them and wrong. Already men of this ilk are
some have fallen victim to them on spreading their preconceived ex-
the way. Ahead lie even more planations of the sources of the
formidable dangers, possibly, and new conservatism. It would be
the way is not even marked out. wiser to follow medical practice
There is considerable inducement and check the physical condition of
for the company to stay where the patient first before concluding
they are, and, despite the bold that his ills are psychological.
proclamations of the leaders about Nor, if we have lost our sense of
pressing on to new frontiers, a purpose, as I think, should the
disinterested observer would be contest with the Soviet Union for
able to discern little movement, if world influence be substituted for
the milling around be discounted. real and vital purposes. It is of
This parable, however, does little little value to affirm that commu-
more than reduce our conditions nism conflicts with our way of life
to a figurative language, in terms if we do not know what that way
of which we may be able to grasp is.
it. It affirms the estimate that we Unity that forever depends upon
have lost our way. But why are external threats of destruction is
we lost? What is it that we have negative and pointless. If all ene-
lost? How is our sense of direction mies were to disappear, there

(or purpose) to be restored? would be every incentive to invent
one, as George Orwell foresaw in
Paths Already Explored 1984. We have followed too long

We have already taken some of the path of mustering national ac-
the false paths out of the wilder- tion by proclaiming national
ness. There is no need, for ex- emergencies. That Presidents
ample, to appoint commissions of should find it necessary to do this
men whose sense of reality has simply underscores the loss of di-
been dulled by years of bureau- rection, purpose, and orientation.
cratic endeavor, to name national ‘Mark well, too, that the ery for
goals. They will, predictably and leaders and ideologies, which wells
demonstrably (re: President’s up from among us, is the preface


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

22 THE FREEMAN May

to the creation of dictatorships should be made to rediscover the
and totalitarian states. Twentieth way, to return to the point where
century Europe has already fol- we went astray. In short, the prob-
lowed this broad path to destruc- lem is in part historical. That it
tion. Must we follow their ex- should be so is a tremendous ad-
ample, our eyes closed to the al- vantage. It means that we can uti-
ready demonstrated catastrophe lize memory and imagination, ap-
which awaits at its end? pealing to such records as have
There is another way whose out- been kept along the way. This part
line has begun to take shape for of the task is one for the historian,
some of us. Let me describe it which is why I venture to speak.
first by way of analogy. A man
who realizes that he may have lost Return to the Starting Point:
his way will begin to look for Ideals Marked “Liberty”
familiar landmarks. If there are Let us return first, not to the
none ahead, he does well to turn place where we went astray, but
back and to retrace his steps to to the point from which we
the point where he knows he is on started. The historical course of
the right road. In terms of na- America was plotted from that
tional purpose, this means a re- point of the compass of our ideals
turn to foundations. It means that marked Liberty. Our disorienta-
the foundations will have to be un- tion can only mean that we have
covered and explored anew, and wandered, or been led, off this
that plans for action will have course. The writings of the Found-
to be measured in terms of con- ing Fathers are replete with ref-
sistency with them. erences to liberty as the goal.
This is no easy way. There are George Washington did not ex-
no guarantees that it will work. pect to be gainsaid when he said,
No leaders can shoulder the bur- in his Farewell Address, “Inter-
den while we bask in the sunshine woven as is the love of liberty,
of their favor. Yet it accords well with every ligament of your
with the basic experience of man, hearts, no recommendation of
and this in itself should commend mine is necessary to fortify or
the course to us, confirm the attachment.” :
Indeed, our very terminology All of the major documents of
implies that retracing our steps is our Revolutionary and early Con-
the right course. That we are lost stitutional era are premised on
suggests that once we were on the this attachment to liberty. Nor
right path. The initial effort, then, would anyone have thought it pos-


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

1962 THE FOUNDATIONS OF AMERICAN LIBERTY 23

sible at that time to found a gov- the eighteenth century (that
ernment which would preserve thought which informed our insti-
liberty if a time should come when tutions and practices) was super-
Americans should cease to vener- ficial, but it rested upon a pro-
ate it. found legacy of traditions and
Our quest for foundations, then, beliefs. The Founding Fathers
will begin and end with an ex- were men of affairs, not philoso-
ploration of the foundations of phers, and they did not custom-
American liberty. arily expose the deep roots of their
The three basic foundations of beliefs. Indeed, they felt no need
our liberty are: (1) beliefs which to do so, for they supposed their
support it, (2) institutions which beliefs to be deeply rooted and
protect it, and (3) personal in- secure.
dependence without which it is
meaningless and impossible. The Need to Learn Again
Let us turn first to the beliefs We are not so happily situated
which support liberty. Liberty is in our times. For us it is necessary
not an end in and of itself. It is to learn again the deep meanings
not even an ideal in the Platonic of things which, because they lay
sense; that is, it does not rank beneath the surface of things, have
with Truth, Beauty, Goodness, and been forgotten. The reverence for
Justice. Rather, liberty is a con- liberty can only be reawakened by
dition, a means to greater ends, re-establishing its connection with
not less but more important for a reality which gives it vitality.
that very reason. Choice is possi- Liberty was once believed to be
ble among many goals and the a God-given condition. The respect
several ideals when there is for and observance of it had the
liberty, but without liberty there force of divine imperative. Think-
is no choice. Liberty is the gate- ers of the eighteenth century con-
way through which choice is made ceived the matter in this way. God
possible; it is the keystone of the created the universe and all the
arch of individual fulfillment and natural things that are in it. In
social progress. so doing, he provided natural con-
Those men who conceived and ditions of liberty, thus implicitly
founded these United States must setting his seal upon liberty as the
have known something of the deep proper condition for man.
underlying significance of liberty, There are no restraints, only
but they rarely, if ever, expounded punishments, built into the natural
upon it. Much of the thought of scheme. Thus man is at liberty to


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

24 THE FREEMAN May

jump from a high cliff; but if he must become totalitarian, It is one
does so in violation of natural law, thing to have a system of ideas
he will likely be punished with a (an ideology, if that hateful word
broken neck. Man, in nature, is must be used) ; it is quite another
free, for the simple reason that he to prescribe that system of ideas
is not restrained. This is the for everyone in the society by law.
liberty with which man is endowed There is a vast difference be-
by the “Nature and Nature’s God” tween the Declaration of Inde-
to which Jefferson refers in the pendence and the United States
Declaration of Independence. Constitution. The Declaration has
Liberty, then, is a natural right an explicit ideology while the Con-
based on a condition prior to man. stitution has none. The first is a
Restraints are tyrannical efforts revolutionary document, drawn
of man to meddle with the natural and used primarily for purposes
(divine) order. Tyranny is a vio- of propaganda. The second is a
lation of ultimate law; to acquiesce carefully drawn instrument to pro-
in it is tacitly to participate in the vide for the governance of a peo-
abrogation of divine law. ple. The Declaration is not now,
never was, and never should be-
come a part of the law of this land.
Quite properly, the Founding Everyone should be free to accept
Fathers did not spell out the spe- its basic premises, as I do, but no
cific ends for which liberty exists. one should be compelled to believe
They did set forth in the Pream- anything, The men who founded
ble to the Constitution the pur- this country believed that free men
poses for founding a government, should be entrusted with the task
but they did not presume to an- of providing for their needs, de-
nounce the purpose of life for in- fining their purposes, and devising
dividuals within it or the goals means to their ends.
of the society itself. Had they done Many, perhaps most, Americans
so, they would have been setting in the eighteenth and nineteenth
the stage for some new tyranny centuries believed that the ulti-
which could bend men toward that mate aim of life is the eternal sal-
end. Governments can act only by vation of the soul. These United
coercion, whether it be the coercion States were founded on the prem-
of the mind by propaganda or the ise that salvation is primarily an
coercion of the body by force. individual rather than a social
When government acts to realize matter. It is individual in that
an ideology —any ideology—it only individual souls survive in

Open-Ended Liberty


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

A ncuncing

2 LE ords 2 new Clichés
of Socialism

A new FEE service: LP recordings The two latest in this series of
of outstanding FEE seminar lec- suggested answers to the most
tures, for use at home and/or flagrant of socialistic fallacies:

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€ & #28. “Tell me, just what liberties

Two now available: Essence of have you lost?”
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#29. "Private businessmen should
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Each cliché printed on

Special Introductory Price: single, 814 x 11 sheet
$5.00 Sample copies on request
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before June 1, 1962. Full set of 29 Clichés, 58 cents

For the above Records and Clichés, write:
THE FOUNDATION FOR ECONOMIC EDUCATION, INC.
IRVINGTON-ON-HUDSON, NEW YORK

.OZ/».» THE FREEMAN on Microfilm

An agreement has been entered with University Microfilms to make
available to libraries and others who may be interested current as
well as back issues of The Freeman since January 1956. Inquiries
should be directed to University Microfilms, 313 N. First Street,
Ann Arbor, Michigan.


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

THE

Teendil A MONTHLY JOURNAL OF IDEAS ON LIBERTY

MAY 1962 Vol. 12, No. 5

LEONARD E. READ President, Foundation for
Economic Education

PauL L. POIROT Managing Editor

THE FREEMAN is published monthly by the
Foundation for Economic Education, Ine., 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,

FYE

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


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

1962 THE FOUNDATIONS OF AMERICAN LIBERTY 25

eternity, not groups, nor collec- tively, by most men who sat in the
tives, nor states. It is a spiritual Constitutional Convention. And it
condition, and lies beyond the is possible to conceive of action
power of the state to grant, with- for the general welfare that is in
hold, compel, or require. The most the interest of each and every in-
that the state can do is to ac- dividual. For example, it is in the
knowledge that liberty within interest of everyone that a mur-
which each man may use his derer be apprehended and re-
varied talents, make his own mo- strained. In the interest of the
mentous choices, give voice to his murderer, too? Yes, for if he can-
particular insights into truth, obey not control himself, he needs to be
those divine imperatives which controlled by others. If he can but
fall to his lot, and develop such will not control himself, he needs to
potentialities as are latent within be punished. It is the character of a
him. right action that it is good for
So far as earthly social goals those disadvantaged as well as
were concerned, our political pro- those advantaged by it. It is in the
genitors believed implicitly that nature of things, too, that if a gov-
the general welfare would be ad- ernment is to act only in the in-
vanced in conditions of greatest terest of everyone, it will be lim-
liberty for all. If it were not, each ited in those actions it can take.
individual would have himself pri- This is precisely the position of the
marily to blame. The term general Founding Fathers.
welfare has now been subverted to
the ends of welfare statists who Social Progress, a By-Product
have given it the utilitarian con- Liberty was conceived to be not
notation of the greatest good for only individually but also socially
the greatest number. Yet it would beneficent. Social progress is never
have been inconsistent with the the justification of liberty (a false
government which they actually trail which some thinkers have
created if the Founders had used taken), but it can be and is a valu-
general welfare in this sense in able by-product. Free men will rise
either the Preamble or elsewhere or fall on their own merits, prosper
in the Constitution. or fail as they exert themselves,
The greatest good for the great- and give or take as they have
est number envisions government wisely used their resources. Free
action for interest groups. Yet it men pay a price for their freedom.
is likely that general welfare was They are responsible for their own
conceived individually, not collec- well-being.


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

26 THE FREEMAN May

This is true because freedom would have to be constrained from
and responsibility are opposite committing their acts, which
sides of the same coin. Diminish would mean in effect that there
one by a whit and you reduce the could be no liberty. Moreover, if
other in the same measure. Thus, men are not primarily responsible
when men are free, there are pow- for their conditions, then inequali-
erful incentives to build, create, ties cannot be squared with our
and invent things that they can fundamental sense of justice.
sell to or exchange with other men. Our forefathers had yet another
Progress, then, is an almost inevit- belief which mightily buttressed
able result of leaving men to their individual liberty. They believed
own devices in attracting con- that man is distinctly a rational
sumers for their products and thus being, that he is capable of sub-

providing for their own needs. ordinating his passions to logic
and submitting to it as arbiter.
Underlying Premises Reason was believed to be both the

Liberty is intellectually unsup- means by which man came to an
portable without certain other be- understanding of his world and
liefs. It is premised on freedom of the primary protection individuals
the mind and will. Freedom of the have against the aggression of
mind means that the mind can rea- others upon their rights. The in-
son out conclusions, can uncompul- dividual is powerless against com-
sively examine evidence, can choose binations of men if might rules in
among ideas the one that is truest the world.
or best supported by evidence.

Freedom of the will means the pos- The Rule of Reason

sibility of making uncompelled But our ancestors believed that
choices and translating these into reason, not might, should hold
corresponding actions. sway in the common affairs of

If man is not free in these men. As Jefferson put it in his
senses, he is not responsible for First Inaugural Address, “All, too,
his actions. If he is not responsible will bear in mind this sacred prin-
for his actions, liberty is an uncon- ciple, that though the will of the
scionable burden to impose upon majority is in all cases to prevail,
man and an unworkable arrange- that will to be rightful must be
ment for society. Liberty is prac- reasonable. ...” Reason, if men
ticable only if men can be held will submit to it, is a lever by
accountable for the harm that they which the individual can move
do to others. Otherwise, they groups and states to observe his


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

1962 THE FOUNDATIONS OF AMERICAN LIBERTY 27

rights and yield to something be- actions by the representative prin-
yond either one or many. For note ciple and by the differing terms of
that reason is higher authority, office of those elected. The popu-
man-possessed but not man-made. lace was further limited by mak-
Our Republic was contrived in this ing the judiciary — the final pro-
world, but its foundations lay in tectors of individual liberty — ap-
one beyond. pointive rather than elective. The
The above, then, are the intel- federal system of government — a
lectual foundations of American system in which powers are di-
liberty: natural law, freedom of vided between the central and local
the mind and will, individual re- governments — was conceived as a
sponsibility, and rationalism. further protection of liberty.
These in turn were given evoca- Many of the protections of indi-
tive power by the belief that there vidual liberty were not new to the
is a God who imbedded his im- United States; they were pre-
mutable laws in the visible uni- served and continued. Such were
verse, that the individual has a the right to a writ of habeas cor-
worth not measurable in human pus, the requirement that a man
terms, that each individual’s good be deprived of his life or liberty
is inseparable from the general only by due process of law, and the
welfare, and that liberty is price- right to own and use property.
less for the individual and socially New protections were set forth as

beneficial. well, however: the constitutional
prohibitions against bills of attain-
Institutional Protections der and ex post facto laws, the

The institutional protections of state disestablishment of churches,
our liberties were laid down in the the abolition of primogeniture and
early years of the Republic. The entail.
individual was protected from his
government by enumerations of Personal independence was for-
powers granted and prohibitions warded by American conditions
aimed at preventing governments and practices. Those virtues by
from exercising certain forbidden which a man might become inde-
powers. The agents of the govern- pendent were much admired, i. e.,
ment were limited in their exer- thrift, prudence, hard work, fru-
cise of power by the separation of gality, and careful husbandry. It
powers, was once considered better to do

The populace at large was in- without than to go into debt, and
hibited from taking precipitate it is ever so that indebtedness in-


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

28 THE FREEMAN May

creases dependence. The phrase pendence by maintaining author-
that a male is “a man of his own” ity over those who forsook inde-
may now only evoke memories pendence for its shelter, You could
among older Americans, but it have independence or security, but
once meant that he had reached not both. The community at large
the age of twenty-one, was at lib- venerated self-reliance, individual
erty to seek his own well-being, initiative, personal independence,
and was responsible for providing and individual achievement.

for his needs. The family, at its These were the primary founda-
best, encouraged personal inde- tions of American liberty. @

IDEAS ®N-LIBEETY Individualism

THE FIRST QUESTION asked is, “What! his creditors as to allow such doings
Would you allow a thoughtless col- if they can possibly be prevented?
lier to light his pipe in the work- The plain fact is, apart from theory,
ings?” or, “Would you let the rail- that before the passing of any Acts
way companies charge what they relating to mines, the most stringent
like?” or, “Would you have all the regulations were in force concerning
land thrown out of cultivation?” or, the use of lights and lamps in the
“Would you have all the crops de- workings rules not so much imposed
voured by vermin?” or something by the masters, as agreed to alike by

equally irrelevant. owners, managers, and men, for the
Now the answer to all these and common safety.
similar questions is, that it is not the It is the ability to make such rules,

expediency or appropriateness of this to obey them, and to enforce them,
or that regulation with which indi- which makes the Anglo-Saxon race
vidualism concerns itself. It may be what it is —a colonizing people, a
an excellent provision that passenger people fit for self-government. And
trains should not run at more than it is the weakening and supplanting
sixty miles an hour, or it may not; of these contractual rules by rules
if it is, let the companies make such emanating from a central legislature
a rule, or let the public refrain from which will some day, if persisted in,
traveling by lines which have no reduce the Englishman to the level
such rule; but let not Parliament in- of his continental neighbors.
terfere in the matter. It is not from any horror of law
Again, as to the naked lights in a and order, of method and regulation
coalpit, 1s it really believed that col- in all things, that individualism is
liers are so absurdly reckless of their opposed to state interference; on the
own lives as to imperil them for the contrary, it is rather the reverse;
sake of a whiff of tobacco? And even it is because it attaches so high a
granting that there are a few such value to these things, and because it
dangerous lunatics in the pits, as fears to see the habits of self-rule
out of them, is the mineowner so crushed out by the enervating effects
anxious himself for a meeting with of grandmotherly government.

WADSWORTH DONISTHORPE, Individualism, A System of Politica (1889)


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

or—THE MAGIC TOUCH OF GOVERNMENT SPENDING

Old Kaspar pulled the window shades
Against the sunset glare

And pondered on the many times
He'd found his cupboard bare,

While Peterkin and Wilhelmine

Looked at the propaganda screen.

They saw the speaker standing there
Behind the microphones

And heard his voice come rolling out
In hortatory tones,

All studded with affirmatives

And garnished with superlatives.

“What lovely words,” cried Wilhelmine,
“I wonder what they say!”
“He is explaining,” Kaspar sighed,
“Why food is cheap today,
While all the other things we buy
Have prices reaching for the sky.”

“The basic cause, the speaker says,
For prices growing high

Is private dollars chasing Soods
That people want to buy;

While public dollars in the chase

Make prices wilt like watered lace.”

“Are public dollars chasing food?”
Asked little Peterkin.

“He says they're chasing crops of wheat
And all its kith and kin.

That’s how we get the huge supply

That cheapens all the food we buy.”

“Then tell us where does Uncle Sam
Get dollars for the chase?”
“He catches food consumers, Pete,
At home or market place .
And helps himself to dollar bills H. P. B. JENKINS
He finds in private pokes or tills.” Economist, Fayetteville, Arkansas

29


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

Why Is
Paternalism

WRONG?

PATERNALISM: “A relation between the governed
and the government . . . involving care and control
suggestive of those followed by a father.”

LEONARD E. READ

FEW QUESTIONS are as simple to an act is wrong, these codes have
ask or as difficult to answer as the merely decreed: “Thou shalt not
query, “Why is anything wrong?” kill,” “Thou shalt not steal,” and
Such a question — even though it so on. As long as we believed in

may not reach the verbal level — the infallibility of the source or
is being asked by more and more author of the code, there was
people. little occasion to challenge it. If

Why is it difficult to find an- we took the decrees at face value,
swers in the realm of ethics? Per- we never had to reason why.
haps it is because of a general lack Now, however, many people no
of really searching reflection and longer take the Commandments
thought in this area. Mostly, for granted. Increasingly, they
throughout recorded history, there ask, “Why is it wrong to steal?”
has been little call upon reason to “Why it is wrong to lie?” This is
figure out answers to questions not necessarily a bad omen. It may
about right or wrong; responses be simply a new requirement of
have been handed down to us the Cosmic Scheme: another step
“tailor-made.” The great moral in the bringing up or maturing of
codes of history have been in sub- rational human beings. One may
stantial agreement as to what is find in this novel ethical situation
commanded and what proscribed. the suggestion that we either find
Without much explanation of why these answers for ourselves or be-

30


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

1962 WHY IS PATERNALISM WRONG? 31

come castoffs in the evolution of legality is not the same as moral-
humanity. When evil forces are ity. Legalization of theft simply
on the rampage, as they now are, nullifies the legalized penalties
we need to know why they are against theft.

evil in order to avert them, lest This popular penchant for tak-
they continue to engulf and de- ing property without consent is
stroy us. reason enough for asking, “Why is
it wrong to steal?’ Numerous

“Thou Shalt Not Steal" clergymen even — supposedly the
A comment or two on theft custodians of the Commandments
may be a useful introduction to —are demanding that the fruits

the much more difficult question of the labor of some be forcibly
of our title, “Why is paternalism taken for the benefit of others. No
wrong?” wonder the Bible’s admonition is
“Thou shalt not steal” presup- now in question!
poses the institution of private
property. There would be no con- Why Killing Is Wrong
ception of theft unless there were, If stealing is too popular, too
first, ideas about what is mine much the current practice to stim-
and what is thine. Stealing is the ulate deep thought, too high in
taking of the property of another emotional content to allow sober
without his consent, reflection, let us examine the re-
Theft has been described as the lated question, “Why is it wrong
first labor-saving device. And, if to kill?” Nearly everyone will
we are not careful, it may be the agree that it is wrong for one per-
last; for theft is becoming uni- son to kill another person, but
versal. Not person-from-person there are fewer who will question
thievery — that is only minor — the morality of many persons kill-
but politically organized thievery ing many persons, as in war. So,
on the grand scale: Socialism is even the answer to this question
founded on the taking of the isnot cut and dried. Not knowing
property of some without their why it is wrong to kill, many per-
consent for the alleged benefit of sons think that killing is right if
others, and Americans are in- done legally on a large enough
creasingly condoning or even sup- scale. Why is killing an evil act?
porting socialism in one or more At the outset, let us explore one
of its numerous forms. True, most blind alley. Make the assumption
governmental taking of property that the rightness or wrongness of
without consent is legalized, but killing rests exclusively on subjec-


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

32 THE FREEMAN May

tive judgments because nothing agree that killing is not a work-
relevant to ethical acts exists be- able maxim, nonetheless, workabil-
yond the mind of man. Assume ity is no more in the moral realm
that questions of morality are not than are opinion polls. Utilitarian
matters for objective determina- economists concede this, claiming
tion, that each person is a law un- that it is not within the scope of
to himself. If this is the case, any their discipline to investigate the
serious ethical inquiry would be so morality of any given act. Does it
much idle nonsense. No reasoning or does it not work? This is all
would be involved, nothing more they presume to investigate, Thus,
than asking people how they hap- killing and other acts of depreda-
pen to feel about stealing, say, or tion are only amoral matters to
killing. With the poll concluded, these people in their role as econo-
there would be X number of af- mists. While workability is not to
firmatives and Y number of nega- be taken lightly, it lacks the sig-
tives. nificance of deeply built-in moral
Working from the assumption convictions.
that there is no creative power
beyond the mind of man, no moral A Judgment Higher than Man's
question is posed; indeed, nothing Very well. If morality is not de-
more than, “What, please, is your terminable by subjective judg-
personal opinion?” Thus, killing ments, if an objective point of ref-
would be regarded favorably or erence is a prime requirement for
unfavorably as any individual finding out why an action is right
might personally decide; and, or wrong, where shall we look for
should he change his mind on the our supreme norm, our fundamen-
matter, killing would be an ap- tal objective? It is perfectly ob-
proved act one day and a disap- vious, once subjective judgments
proved act the next. This type of are regarded as inadequate, that
consideration is below the level of our standard must be an objective
moral determination, just as is over and beyond the human cor-
any action based on an opinion tex. If the morality of killing or
poll. stealing or paternalism is to be
Parenthetically, some utilitar- examined, the search must be con-
ian theorists reject murder, theft, ducted at this high level.
paternalism, and the like on the Anthropomorphism — the belief
ground that these behaviors do not in a man-like deity of some other-
pay. While any person, graced with worldly form —is less and less
a degree of rationality, would subscribed to, and there are sharp


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

1962 WHY IS PATERNALISM WRONG? 33

and often bitter disagreements is not rationally demonstrable to
among the adherents of doctrin- any human being who has not had
aire religious faiths. Nonetheless, an immediate experience of it, any
there: have been throughout the more than the color red is logi-
ages, as well as now, millions of cally demonstrable to a color-blind
individuals who are, from their person or the sound of middle C
own observations and distinctly to a deaf mute. Try to suggest
personal experiences, aware of an anything in earthly life or in the
Intelligence, an Architect, a Cre- process of emergence or evolution
ator, an Infinite Consciousness — higher than an aspiration directed
call this what you will. Man did toward the expansion of conscious-
not create himself. This is self- ness, awareness, perceptivity, in-
evident, for man knows next to sight, inspiration, cognition, cere-
nothing about himself. There is a bral hatching. Isn’t this the high-
Supreme Reality — God — that man est goal we can conceive for our
can never comprehend but can, lives?

nonetheless, become aware of. Man

can no more comprehend God than The Hope of Creation

he can comprehend infinite space We may then rationally con-
or time, for example. Yet, man can clude from these observations that
become aware of infinite space or man’s highest earthly purpose is
time by observing that he cannot to expand his own individual con-

comprehend finite space or time — sciousness into as near a harmony
a point in space or time beyond with Infinite Consciousness as pos-
which there is no space or time. sible. It is to this Supreme Reality

The expression, Infinite Con- that his first allegiance is owed.
sciousness, brings the idea of the All else must be relegated to the
Supreme Reality into focus as realm of means or series of ap-
nearly as any term I have come proximations to this supreme end.
upon. True, this is incomprehen- Man is at once the offspring and
sible. Yet, an awareness of Infinite the hope of Creation. To the ex-
Consciousness can be gained by tent that man succeeds in a real-
merely trying to imagine a point ization of those creative potentiali-
in consciousness beyond which ties peculiar to his own person-
there could be no more conscious- ality, to that extent does he share

ness. in Creation —infinitessimal though
The individual human conscious- any individual share may be.
ness is expansible. This fact must Here is an Object that caps all

stand on its own manifestation; it subjective judgments. Anything


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

34 THE FREEMAN May

less than a transcendent Object in cumvent the harmonization of his
this spiritual dimension makes own consciousness with that of
nonsense of attempts to explain Infinite Consciousness? Any act
why any particular human action or deed or thought which injures
is right or wrong. But once we or impairs or darkens or breaks
have discovered our object in this this sacred circuit is, by these def-
highest hierarchy of spiritual val- initions, evil or wrong!
ues, the analysis of why comes For one person to take the life
clear and easy. of another is to sever the sacred
That which is ultimately right circuit. Thus, murder must be
and true for man is that which is wrong.1
in harmony with Infinite Con- What about theft? Why is the
sciousness. Any action or thought Commandment correct in decree-
of man conducive to the perfec- ing, “Thou shalt not steal?” Liveli-
tion or completion of the Creator- hood is but the extension of life.
individual order must be construed Without the former the latter is
as right, and such construction is impossible. The taking of liveli-
a moral or ethical judgment, It is hood in the absence of consent en-
necessary, however, to emphasize croaches upon a man’s life; and
that man’s tie-in with Infinite complete deprivation takes his
Consciousness or the Creator is a life. To legalize the act does not
strictly personal, individual rela- alter its immorality one whit, any
tionship; human consciousness is more than the legalization of mur-
exclusively an individualistic phe- der would make it moral!
nomenon; sects, races, families, Now, why is paternalism
committees, nations, collectives of wrong? Paternalism, by definition,
any sort cannot qualify as con- presumes a transfer of responsi-
scious entities. There is no social bility. Instead of each individual

mind. being responsible for himself, it
posits the proposition that the gov-
When Man Interferes ernment is responsible for him —

d ——
What, then, must be construe 1 Tt is not murder, administered by Na-
as wrong? Can it be other than (ure, if one jumps off the Empire State
man-concocted interferences or ob- Building or if one drinks a cup of hem-

. . : lock. This is suicide. Nor is it murder if
fuscations or deterrents which im- the initiator of violence loses his life by

pair an individual's freedom to another's defensive action. He initiates
realize, as he chooses and as his the action which causes his death. The

eyeye . . . aggressor is the author of the action that
abilities permit, his own creative destroys him. Thus, in effect, he commits

potentialities; actions which cir- suicide.


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

1962 WHY IS PATERNALISM WRONG? 35

responsible for his wage, his hours charge the responsibilities that
or labor, the quantity of his pro- are solely his own. Acting on this
duction, the prices he may receive, false premise, the individual flicks
what and with whom he may ex- his own switch to “off”’; he, in his
change, his health, his old age, on ignorance, breaks the sacred cir-
and on; responsible, in short, for cuit himself; he, alone in charge
his security, welfare, and pros- of his own emergence, drops at-
perity. tention to self, thereby leaving
We are not here concerned with his destiny unattended and com-
the workability or the utility of mitting himself to no higher aim
paternalism. Economists can dem- and purpose than mere animal ex-
onstrate that it hasn't a leg to istence. Recalling our life object
stand on; there is no aspect of as being the harmonization of the
paternalism that has not been in- individual consciousness with In-
tellectually demolished. No, we finite Consciousness, paternalism,
are not concerned with the ques- as a concept, can be seen to be as
tion, “Does paternalism work?” destructive of the purpose of life
We are searching only for an ans- as killing, Paternalism must, there-
wer to the question, “Is it right fore, qualify as evil — wrong!
or is it wrong?” We must assume that life is a
gift of the Creator, for man can-
Responsibility May Not Be Delegated | create life. Man, it is believed,
In the first place, paternalism is the highest form of earthly life
is a misrepresentation of fact. Ac- because he is endowed with facul-
cording to the way things are, re- ties that are not common to other
sponsibility for self is as non- forms of life: the potential power
transferable as is breathing or be- to think, to choose, to will, to re-
lieving or willing or intuiting or member, to intuit, to believe, to
worshiping. And no collective, be gain in consciousness. These mar-
it a government, a union, or a pri- velous faculties are always per-
vate welfare agency, can any more sonal endowments; they are in-
assume the responsibility for a dividualistically dispensed, and in
person than can a committee of no other manner. They cannot be
baboons. given to another for management
What can, and too often does, or development or growth. Each
happen is this: A person, if naive man is individually responsible to
enough, can be sold the notion the Endower of his faculties for
that some person or collective or the realization of their potential-
government can accept and dis- ities. In the nature of the case no


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

36 THE FREEMAN May

other human being can do this for their physical desires along the
him, lines of least possible resistance,
There is evidence aplenty that regardless of how unethical the
conscious effort and continued ex- lines may be, because they have
ercise of these faculties will re- failed to cultivate any moral and
sult in their growth and that spiritual aspirations.
disuse will bring about a decline
or atrophy. For an individual to A Feeling of Virtue
accept the false notion of pater- How account for the aggressive
nalism is for him to accept the do-gooder? This is such a com-
fatal — yes, fatal — error of dis- mon trait that there must be
use. “Use or lose,” is a basic law many influences some of which,
of life. If we embrace Infinite Con- no doubt, lie too deep to be ob-
sciousness as our prime object or served. One obvious influence,
premise, we cannot help but con- however, is the vicarious sense of
clude that paternalism breaks the virtue many folks experience when
life circuit. they “aid” their brother, even
The evil of paternalism is two- though the aid be premature. An-
sided. On the one hand is the pas- other, observed among many poli-
sion to play pater to people, this ticians, is the personal power such
having motivations that range a role confers on them. But
from imposing one’s own brand of neither of these influences rises
good on others, to an overeager- above a low form of selfishness;
ness to be charitable, to the gain- they do not even qualify as intel-
ing of prestige and power — as is ligent self-interest.
often the case with political wel- More important than the above
farists. On the other hand is the influences, at least among individ-
ignorance which permits one to be uals of high moral and ethical
“patered” to. Here the motiva- aspirations, are two Biblical in-
tions range from the desire for junctions. The first has to do with
ease to the dread of overcoming the response to Cain’s question,
obstacles — few persons realizing “Am I my brother's keeper?” The
that the art of becoming is com- question is not answered in Gene-
posed of acts of overcoming.’ sig, nor is it answered directly
Many people will try to satisfy anywhere else in the Bible. The
2“. the slaves of antiquity did not Bible does deal with this ques-
belong to themselves, But they knew that tion however, and the Mosaic
freedom which consists in not feeling re- . . .
sponsible.” (Albert Camus, The Myth of answer is affirmative. But it does
Sisyphus, p. 69.) not mean “keeping” a brother in


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

1962 WHY IS PATERNALISM WRONG? 37

the custodial sense! The real an- enough. It is the development of
swer to Cain’s question is to be these faculties —they are spiritual
found in Exodus 20:6, where the — that transcends in importance
Lord says: “. . . keep my com- all other aspects of life, for is this
mandments.” There is no hint not the supreme reason for man’s
here of being an aggressive do- earthly existence? True, the per-
gooder. Rather, the idea is that son in distress may prefer succor
all men fare best if each of us re- to the awful pain of getting his
frains from killing, stealing, cov- creaky apparatus in motion, and
eting, in short, if each of us keeps the temptation to extend prema-
off the backs of others. Give our ture succor is nigh on to irresist-
brothers their freedom to act as ible. It may take more strength of
self-responsible, self-controlling character not to give prematurely
individuals —and do not interfere! — particularly of someone else's
They, then, may do as well as we. substance as in socialism —than it
Alcoholics Anonymous has a takes not to accept until one’s
profound rule which is, in effect, last resource is exhausted.
to attempt no rescue until the vic- Knowing when to go to the res-
tim calls for help. Premature ef- cue — being charitable — may well
forts only postpone the moment of be a higher calling than most well-
salvation. The temptation of well- intentioned people conceive it to
intentioned people to jump the be. If one should not go to an-
gun on this is enormous. Doing other's rescue until he is at the
good is no easier than creating end of his rope, how is one to tell
beauty. “Good is a product of the when that condition exists? Well,
ethical and spiritual artistry of not many of us can tell, but here
individuals,” wrote Aldous Huxley. is where proficiency comes in:

“It cannot be mass-produced.” When a distressed individual is at
i } the end of his rope, when he has
Growth Requires Exercise exhausted his last resource, he

And thus it is with other types will — be he atheistic, agnostic, or
of distress. Very often it takes a whatever —ecry out for help, per-
lot of agony before the marvelous haps silently or in a symbolic way.
self-preservative faculties of a per- This cry is a prayer. We don’t
son will begin to operate. Human know how it works, but let us say
faculties, when unexercised, are it bounces off The Infinite and is
weak and flaccid, but sooner or relayed to some nearby, sensitive
later, in most cases, they will ac- and spiritually attuned individual
tivate if the stimulus be great who then comes to the rescue.


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

38 THE FREEMAN May

This spiritual attunement is the seminar team arrived at a YMCA
real effort on the part of any per- camp of a Midwestern city. At
son who would achieve the distinc- dinner one of the hosts remarked,
tion of being truly charitable. To “Since knowing you, I have a
“help” before the call is only to whole new set of friends.” Inquiry
destroy the possible development revealed what he meant: Before
or emergence or growth of a hu- he became interested in the study
man soul. Regardless of how well- of freedom, his friends were “the
intentioned such proffered assist- smart set”; now he associated
ance may be, it is evil, not virtue. with those sharing his new inter-
] est. He had taken up with an en-
“Love Thy Neighbor” tirely different type of person.

A Biblical injunction which, As moderator of the seminar, I
when misread, may be the source designated the topic for the eve-
of paternalistic mischief is, “Love ning’s discussion and, because of
thy neighbor as thyself.” What is its nature, the term, “the philoso-
meant by love? The Greeks had phy of love” was used repeatedly
at least three words for it? We by the participants. The session
have a dozen meanings for love, recessed at midnight.
not one of which may be what was On retiring, two thoughts were
intended by Biblical writers. At much in mind, (1) “I have a whole
least, there is a line of reasoning new set of friends,” and (2) “the
which suggests that the popular philosophy of love.” These two are
interpretation might be improved. related, thought I, as I fell asleep.

About the highest definition of On awakening the next morn-
love in common use is that which ing, the first question that came
makes it synonymous with deep to mind was, “For whom, among
affection. Defined in this manner, all of the people I know, have I the
the Biblical injunction would read, greatest affection?” A hasty re-
“Have as deep an affection for view disclosed that they were
your neighbor as you have for those who were giving me light or,
yourself.” Could not some mean- conversely, those few who found
ing more profound than this have it advantageous to draw on me for
been meant? The recital of a per- light. They were my teachers and
sonal experience may convey what my students, those individuals as-
I believe to be the deeper meaning sociated with me in a small but,
of love. nonetheless our own, emerging

Some years ago, five of us as a circuit — the enlightenment cir-
"3 Eros, Agape, and Philia, cuit, so to speak.


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

1962 WHY IS PATERNALISM WRONG? 39

Thus the conclusion: Love, in its 1. Those from whom livelihood
highest form, is a process, synony- is coercively taken. Taking prop-
mous with the giving of light or, erty without consent is theft. The
put another way, Love is Light. victims are done a wrong.
Affection, esteem, friendship of 2. Those to whom the fruit of
the finest type is a consequence, a the labor of others is given. Ill-
reward. Daily experiences confirm gotten fruits never benefit anyone.
that affection or adoration grows Further, premature giving is de-
between those who assist each structive of life’s purpose, and is
other in enlightenment or in ex- wrong. A political apparatus is in-
panding each other’s conscious- capable of rendering charity, for

ness. a collective has no means of at-
With the above as background, tunement to a spiritual order.
the Biblical injunction, “Love thy 3. Those authoritarians who do

neighbor as thyself,” reads, “Give the taking and the giving. Playing
enlightenment to those within God is the original sin.
your orbit as you would be en- Paternalism is not only unwork-
lightened.” Love and affection are able in a strictly utilitarian sense,
not synonymous but, instead, are as any skilled economist can easily
cause and effect. prove, but it is wrong in a moral
To sum up: the paternalistic and spiritual sense. Why, then,
pattern is distinguished by three should any rational person ever
archetypes, these being its entire have anything to do with the wel-
composition: fare state? @®

The Issues of Politics

My AFFECTIONS center round the little, near things; bacon, eggs,
pipes and pubs and gardens and kisses and the morning paper —
and trees and flowers in a bowl and going for walks in the rain.
So, I think, do most men’s and nearly all women’s.

I believe that out of the little things the big things come. I
have never understood why the issues of politics turn so rarely
upon the little things that touch men's hearts.

C. E. M. Joap, Opinions (London: Westhouse,
1945). Author’s Preface.


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

One of the nmot-so-long-run consequences of inflation. . .

WILLIAM H. WYMAN

OUR VANISHING GoLD, and the ly the FHA or VA mortgagor who,
toughening of competition in with the advent of a reasonably
world markets long treated as stable dollar, discovers that the
their private preserve by Ameri- mortgage he owes on the home he
can exporters, are among the inter- “owns” is larger than its present
national consequences of inflation- market value; so, he abandons it
ary policies here at home. Thus — just walks away!
does the world economy censure Let's trace a hypothetical Joe
and eventually apply brakes to the Citizen into this increasingly com-
profligate spending and loose fis- mon situation. Two years ago Joe
cal and monetary policies of any and his wife bought a “project”
“welfare state.” home. It probably was in Florida,
The real estate business in the California, or Texas, where both
United States illustrates the dan- the building boom and the financ-
gers of reliance on continuing ing liberalities have been most ac-
doses of inflation. Now we begin centuated. Joe paid nothing down
to see the foolishness of govern- and his monthly payments were
mental policy as reflected in Fed- proposed to amortize the mort-
eral Housing Administration and gage in 30 years. The price? That
Veterans’ Administration financ- didn’t really concern Joe, so it
ing regulations based on “nothing needn’t concern us. He and his
down and 35 years to pay.” The wife liked the place better than
result is showing up across the any other they’d seen. The sales-
land in the person of the “walk- man had checked the regulations
away.” The walk-away is common- and said Joe's earnings justified
Mr. Wyman is a member of the bar, but is the monthly payment. Joe and his
occupied primarily as President of Wyman wife agreed that it was ridicu-

Associates, Inc., realtors and insurors, of

Painesville, Ohio. lous to pay rent, even though his

40


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

1962 THE WALK-AWAYS 41

job was uncertain and he might rate. That the reduction hasn't oc-
wish to move before long. Besides, curred may be for the best, since
the rent asked for anything com- those reserves seem destined for
parable was as much or more large caliber tapping in the near
than the monthly payment would future! The reason, of course, is
be. walk-away Joe Citizen.

Let us recall that the Federal Will Joe actually disregard his
Housing Administration was in- solemn contract to pay? Will he be
troduced in the depression-deep that unconcerned about his moral
1930’s as a pump-priming device obligation, to say nothing of the
to encourage building and heavy legal one? What do you think?
industry and jobs. FHA was a In my own office not long ago
guarantee to banks and other we discovered we'd sold a house
mortgage lenders, enabling them to a salaried man who had been
— if they followed prescribed rules twice through bankruptcy. The
— to make longer and more liberal second time was only recently, but
loans on residential reality. They as promptly after the first (7 years,
were to collect a prescribed inter- I believe) as the law allows. The
est rate, one-half of one per cent lending institution discovered this
of which would create a sinking fact from a credit report; never-
fund from which reimbursement theless, it approved the loan ap-
would be made if a borrower’s de- plication. This was not the case of
fault resulted in a loss to the lend- a business bankruptcy. This was
er. The scheme appeared to work, an improvident person who either
though other methods involving couldn't figure or didn’t care that
less federal intervention might his income was unequal to the in-
have been equally effective. At stallment payments incautious
least, most persons in the real merchants permitted him to as-
" estate business thought it to be sume, It is quite true that he
wise legislation. It wasn’t an ob- couldn’t have gotten in this pre-
vious subsidy, and it more than dicament without the cooperation
paid its own way. It up-graded of a multitude of shortsighted
architectural and construction credit-extenders. And for these
standards by demanding certain we need have little sympathy.
minimums for loan approval. The point here is that in the

The FHA administered reserve home market Congress has pro-
created by the .5 per cent has ac- gressively created from an origi-
cumulated through the years and nally single-purpose act of legis-
even brought talk of reducing the lation a multi-faceted, cross-pur-


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

42 THE FREEMAN May

poseful, contradictory catchall of ming pools, bomb shelters, and so
muddled, meddlesome regulations on. In addition, the Department of
which President Kennedy would Agriculture has a separate and
like to further dignify with de- equally generous program for
partmental and cabinet status. worthy and unhoused would-be
Where did we go wrong? Within farmers.

five years of FHA’S creation we The congressional acts creating
were tooling for war; instead of both FHA and VA established the
wanting to stimulate the housing interest rates which might be
industry, top policy was to dis- levied by lenders under guar-
courage the use of either man- anteed loans. The provisions for
power or material for such pur- change are so cumbersome that
pose. But Congress topped FHA these rates have lagged behind the
with the so-called GI Bill which prevailing rates in the money
granted extraordinary financing market for years. Time and again,
privileges to veterans. The FHA lenders have been unwilling to di-
and VA combined to stimulate vert funds from more productive
feverish activity in the residential use; to the chagrin of FHA and
housing field. With an artificially VA functionaries, “too few” such
created demand greatly exceeding loans have been made. The remedy
the available supply, home prices has been to permit lenders to
raced ahead of the expectations charge certain fees or work out

of both veterans and civilians. kick-back arrangements with
builders which help to bring the
Blooming Bureaucracy lender’s net return in line with

Meanwhile, the originally be- ‘free market” rates of interest.
nign bureaucracy of FHA had The governmental assumption is
multiplied and complicated itself that this latter simply reduces the
in the traditional way of all gov- builder's profit and thus consti-
ernment agencies. Successive tutes a deflationary influence! The
Presidents demanded of Congress fact is, however, that builders do
extensions to the original under- not continue to build if they are
taking so that FHA’s burden now denied a profit. No matter how
includes giant apartment projects they may be concealed, the costs of
and retirement housing develop- sale are inevitably absorbed by the
ments (which builders have fig- buyer. The price Joe Citizen
ured how to produce with 100 per agreed to pay for his house in-
cent finance and no immediate cluded all those costs.
risk), mobile home parks, swim- What was originally a simple


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

1962 THE WALK-AWAYS 43

guarantee to expedite the pur- tions continue to demand that the
chase of a home has become an injured lender pursue all legal
intricate, exasperating, conniving remedies against the defaulter,
“deal” which often must seem to such as deficiency judgments, the
the typical citizen a shoddy racket. garnisheeing of wages, and so
Having suspected from the first forth? This will be mighty un-
that he was a pawn in a fancy popular!

bunko game between builders, Will our government dare per-
brokers, bankers, and bureaucrats, mit the repossessed homes to be
is it any wonder if Joe Citizen sold to the highest bidder in the
simply vacates his bad deal with a time-honored and legally pre-
“serves ’em right” attitude and scribed manner? This will also be
moves on to greener fields, his unpopular, especially as it begins
trust in his fellow man tarnished to throw a spotlight on the dif-
by his own failure to understand ference between the sale of real

what happened to him or why? estate and the sale of ‘easy
} terms.” And in that event, there
Depreciation Is a Fact may be demands from building

Here are the basic facts, so long organizations that the homes be
concealed by years of inflation: withheld from the market — stock-
(1) a commodity is not used with- piled!
out wear nor sold without depre-
ciation, (2) equity of ownership The fact is that excess stimula-
is accumulated only if the out- tion and other government inter-
standing debt is paid off more vention has caused a surplus of
rapidly than the commodity de- housing in many areas. A free
teriorates, and (3) thousands of market would absorb this over a
homes across the nation carry period of time in its ruthless but
mortgages greater than the pres- healthy fashion. Unless govern-
ent liquidation value of the prop- ment is restrained by responsible

erty. citizens — hauled back to its proper
Many questions remain unans- and limited function of keeping
wered : the peace so that a free market

Have our political leaders the may function to regulate building,
will or the ability to maintain a finance, and other business affairs
stable currency? If so, more walk- — then ours may become just an-
aways may be expected. other lost civilization comprised

Will the FHA and VA regula- of irresponsible walk-aways. @&


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

H-

SUDHA R. SHENOY

ECONOMIC PROBLEMS loom large in what these people consider to be
the minds of many people today. the natural corollaries of the free
Scholar and man in the street market are not integral parts of
alike feel themselves deeply in- it at all. They are distortions pro-
volved in questions having to do duced in its working by misguided
with the production and distribu- interventionism — the attempts of
tion of worldly goods. But despite the state to do the duty of other
the intense interest in the sub- parts of society, while neglecting
ject, much of today’s economic dis- its own duties. This causes imbal-
cussion is vitiated by a lack of ances and distortions in the mar-
regard for the fundamental cri- ket, and these are usually taken
teria of the free market economy. by the statists to be its normal
Statism is the antithesis of the and essential features.
free market, but the blind spot For optimum functioning, the
afflicting many people is such that market needs a suitable, politico-
the effects of statism, historical legal framework. It presupposes
and contemporary, are often deb- the performance of a number of
ited to capitalism. This would be essential functions by the state
like blaming the evil consequences aimed at establishing and main-
of slavery on freedom! taining the Rule of Law. Unfor-
Thus, when American and tunately, it is impossible to take
other “liberals” (statists) criti- for granted that the state (i.e., the
cize something labeled “free enter- politicians and bureaucrats) will
prise,” they imagine they are adequately perform its essential
criticizing the free market. But functions. More than likely, the
TE E— state will neglect the duties which
Miss Shenoy is a student of St. Xavier's Col- . .
lege (Gujarat University), Ahmedabad, India. it alone can perform — or else give

44


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

1962 STATISM AND THE FREE MARKET 45

them stepmotherly treatment — the USA is called “American free
while attempting to do things be- enterprise.”
yond its scope.

The resulting distortions in the The Failure of Planning
market will be pounced upon by Statism, wherever tried, defeats
the statists and held up to view as its announced ends —as we may
the normal phenomena of the mar- see from the example of India.
ket. The politicians will then pro- While the aims of India’s Five-
ceed further with the identical Year Plans are laudable — to raise
policies that caused the imbalance the standard of living of the peo-
in the first place —or with worse ple, develop the economy, reduce
policies — all to the accompaniment unemployment, and obtain social
of humanitarian slogans, and with justice — the plans have, in fact,
the encouragement of these so- achieved the opposite.
called “liberals.” This is a vicious Since “planning” was intensi-
circle, and the essential duties of fied, per capita daily food grains
the state will probably be for- consumption has stagnated around
gotten or neglected. 15.4 ounces (the nutritional norm

Most people regard the USA as is 18 ounces). Annual cloth con-
the examplar of the free market. sumption has declined from 14.63
This is a mistake; the USA is a to 14.36 meters per person. Ninety
prime example of the “muddled” per cent of the houses in the coun-
variety of the statist economy. try are one-roomed hovels, with
The communist countries repre- no facilities whatsoever.
sent one end of the spectrum — the This is because under “plan-
totalitarian economy. Some West ning,” the bulk of the country’s
European countries — although resources are forcibly drawn into
still riddled with welfarism —ap- the sector with the lowest returns,
pear to be moving toward the the public sector. This would be
other end — the free market econ- true of any country where “plan-
omy. Countries like the USA and ning” is tried. About 4 per cent
India lie somewhere between the of India’s national income is pro-
two — they are the muddled econ- vided by employment in the pub-
omies, combining perhaps the lic (government) sector. But gov-
worst features of both systems. ernment absorbed 60 per cent of
The statism of East Europe is total resources in the Second Plan;
called communism, the statism of and the Third Plan proposes to
India is called “the socialistic pat- raise this figure to about 70 per
tern of society,” and the statism of cent. Practically the entire public


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

46 THE FREEMAN May

sector expenditure is on uneco- dustries, and 4,000 jobs in agri-
nomic, low-return, heavy indus- culture.
tries and on giant river-valley proj- The gap between the poor and
ects — imitation TVA’s. The high the rich has widened in the last
return agricultural and light in- decade. Incomes have been trans-
dustries sector provides more than ferred from the lower classes and
80 per cent of the national income, fixed income groups, to business-
but under “planning,” it is men, industrialists, and corrupt
starved of essential capital. functionaries of the state. This has
The natural and inevitable re- ensued partly through inflationary
sult of this statist misallocation of plan finance, but mainly as a re-
resources is retarded economic de- sult of statist “controls” (permits,
velopment. An additional invest- licenses, quotas, concessions, and
ment of $100 in iron and steel in- so on) which centralize economic
creases output by an estimated power in the hands of officials,
$14; and in textiles, by $26. The and create numerous monopolies
same investment in agriculture, or semimonopolies in the private
on the other hand, would increase sector. Public contracts also play
output by $50 to $70! In other a very significant role. This anti-
words, statism holds down India’s social income-shift is estimated to
economic growth, to the present be of the order of $1.6 billion a
meager (per capita) rate of 1.6 year. In short, the real benefi-
per cent annually — in place of a ciaries of statism in India are un-
much higher potential growth. scrupulous bureaucrats, and the
Statist planning is also respon- state-established, state-protected
sible for India’s growing unem- monopolists in the private sector.
ployment. Two million dollars of
investment provides jobs for only India is thus a classic case of
500 persons in heavy industries; statist muddle, but statism is
whereas the same amount would guaranteed to produce the same re-
provide 1,150 jobs in consumer in- sults wherever tried. ®

Scope for the Unusual

ANY HEALTHY SOCIETY must provide scope for the unusual idea,
for the uncommon individual, for the man who is in some way
“different.” It would be a dull world in which everyone conformed
to a common pattern of behavior and no one ever got out of step

with his neighbors. From Facts, October-November 1861, Institute
of Public Affairs, Victoria, Australia


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

A cop's-eye view of New York City

JACK MORANO

AS ONE POLICEMAN to another, a tuted by Police Commissioner
New York City Housing Authority Kennedy, its purpose was to send
officer once told me of a standing into the “rougher” areas a group
joke in his circle. “Soon,” said of six-foot judo-trained cops to
he, “all New York will be one big suppress crime. Today, as a mem-
housing project, and the regular ber of ‘“Kennedy’s Commandos,”
police department will become just I can attest that there are few
another branch of the Housing neighborhoods that haven’t re-
Authority.” quired our services. In other
A joke, then, but tour New York words, there are few “decent” res-
City with me if you wish to see idential areas left in New York.
the inevitable results of compul- Neighborhoods that up to five or
sory collectivism in the United "ten years ago were beautiful,
States. Here may be found, as in peaceful — yes, even exclusive —
East Germany, proof that collec- have been transformed into a
tivism does not work. jungle in which people fear to
Two years ago when the Tacti- walk the streets. I refer to such
cal Patrol Force was first insti- areas as Morningside Heights
Mr. Morano is a member of the Tactical Pa- around Columbia University, the
ol once of the New York City Police De- West End and Riverside Drive,
Illustration: A. Devaney, Inc., New York. and right up to the doorstep of

50


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

1962 OUR CHOICE 49

has the right to “play God” over derstanding, the will, and the cour-
his fellows. age to stand — alone if need be-

As young people about to as- with honesty and justice, behav-
sume our respective roles in soci- ing toward others as one would
ety, we in our nation’s colleges want them to behave in turn. If
must decide whether it is better to one’s freedom of choice is the sort
support some sort of “planned so- of security he desires, he will not
cial team,” or to be a moderate in- find it by compelling his neighbors
dividualist —a libertarian. We to attend Civil Defense meetings.
must decide whether our lives The state has no moral right to
would be better “planned by ex- do what the individual cannot do.
perts” or based on our own de- The individual has no moral right

cisions. to use aggressive force against his
neighbors. The state is not God; it
Reliance on "Big Brother derives its powers from the peo-

As we analyze the views of those ple who make up its citizenry. The
who support big government and people can’t give what they haven't
“social planning,” we find these got. Any government action is
basic assumptions: The average necessarily unjust if it deviates
man is really unable to take proper from what is justifiable action by
care of himself; team spirit is individuals.
necessary in order that experts, Our choice, then, concerns emo-
the elite of totalitarianism, might tional maturity. Either we want
have more effective control of ev- the kind of security that means
ery teammate. The failure and per- dependence on “Big Brother,” or
sonal disaster they allegedly fear we want the opportunity that en-
for others is basically their self- courages individual creativity. The
reluctance to face life on their own latter affords relative success for
two feet. They would much rather most, excellence for some, and fail-
trust in George Orwell's “Big ure for a few. We simply cannot
Brother.” They still want a “dad- have both opportunity and state
dy” or a “mommy” to fall back on planned security.
in the face of adversity. Each grant of ‘security’ by the

The basic psychology of author- government necessarily diminishes
itarianism is immaturity, a lack the opportunities available to our-
of self-reliance and self-responsi- selves and our children. This is
bility. Freedom requires the un- our choice. Let’s face it. @


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

48 THE FREEMAN May

are volition, or domination of the respect for either the liberty or
individual; and we need to under- the property rights of their under-
stand just what it means to choose lings, they hold in contempt the
one or the other. idea of government limited to a
Many people in the United States defensive role. To maintain their
assume that every subject under a. power, they have to preach against
king or a dictator is necessarily freedom, and convince their sub-
unhappy with his lot. We hear of jects that the only safety in life
the terrible purges of all dissent- lies in unthinking obedience to the
ers whenever such a system is im- ruler. The law, once intended to
posed. Yet, the irony is that once protect man, becomes the special
people “get the hang” of living privilege of an anarch — the dicta-
under a dictatorship, they may tor’s tool of tyranny.
prefer it to a free system that
leaves the individual responsible An Instrument of Justice
for his own actions and choices. I The problem then, if we would
once met a young man who lived retain our individuality and free-
under the Nazi system in Ger- dom, is to use the law only as an
many, and another who lived un- instrument of justice among men,
der Italian fascism. Both believed to confine government's coercive
that the totalitarian state was the powers to a defensive role, leaving
only “sensible” solution to govern- individuals full opportunity to de-
mental and economic problems. velop their respective potentiali-
They looked upon free societies as ties, as each may choose, under
uncontrolled mobs of people too the law. This means that the law
ignorant to manage their own af- may not be used to stack the cards
fairs, suffering injustices sup- against one man or group in favor
posedly avoided under govern- of another. No person should have
ment planning. They recalled their the power to suspend ‘‘temporar-
dictators with great affection, as ily’ the rights of his neighbors,
the “expert captains of the team.” even if he thinks such domination
Authoritarians of all kinds are might be in their best interest.
anarchists in the name of “law and Those who would grab control in
order.” Usually soured by person- time of emergency to ‘protect our
al failure, these selfish despots try freedoms” have bought the Marx-
to give their “sheep” a false sense ian myth that the dictatorship of
of security by exhibiting unusual the proletariat would wither away
energy and giving the appearance into a perfect, classless society. It
of getting things done. Having no is not so, for among men, none


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

OUR ( HOICE

ROBERT R. MULQUEEN

RECENTLY in our neighborhood the bate in all societies down through
local office of Civil Defense called the ages: whether to rely upon in-
a meeting and offered a film and dividual volition, or to insist on
lecture, followed by discussion, to domination “for the general good.”
better prepare us in case of na-
tional emergency. Ours is a large A Crossroads
community, but only twenty-five America, and the world in gen-
persons attended the meeting. The eral, is at a crossroads. Every ma-
CD representative noted this lack jor issue today seems rooted in
of interest in home preparedness this question of whether the in-
and said that citizens in Russja dividual should be dominated by
and various European countries experts who would plan his actions
are better informed because they “for his own good,” or should
are required by law to take an ac- there be reserved to each individ-
tive role in Civil Defense. ual his dual right (1) to develop
A woman in the audience thought his creative powers according to
that “in a time of emergency such his own choice, and (2) to freely
as this, our government ought to exchange the fruits of his labors
force every adult in the community — limited only by the extension of
to take CD instructions for the those same rights to his neigh-
general good.” (Emphasis hers.) bors. Under the truly free system,
Others supported her view. I dis- governmental coercive power can
agreed, though I couldn’t resist a only be used in defense of the
certain compulsion to understand rights of all human beings. It
what prompted her suggestion. Of ought never to be used for the im-
course, this has been the great de- moral plunder of one citizen (his
Mr. Mulqueen, in his Junior year at a West liberty or his property) for the

Coast college, looks from present problems :
rtd the Eon ure. favor of another. The alternatives

47


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

1962 ONE BIG HOUSING PROJECT 51

the once swank Central Park West in New York City living in public
apartments. Indeed, I challenge housing than the entire population
anyone to name for me the “nice” of New Haven, Connecticut.”
neighborhoods in Manhattan — or What a thing to boast about when
in any of the other boroughs of it can be demonstrated that pub-
New York. In the Prospect Avenue lic housing — apart from being
section of the Bronx, drunks, ad- morally wrong —is economically
dicts, and prostitutes now slouch unsound! Stated simply, it just
in entrances where uniformed doesn’t work. ’

doormen once stood. The beauti-

ful Fordham Road area is starting Environmental Determinism

down the same path, and its main To begin with, the advocates of
drag has been dubbed “Terror public housing are what psychol-
Street” by the New York Journal ogists call environmental deter-

American. minists: they believe that in tak-
} ing ‘“‘the boy off the farm,” they
Contradictory Actions can successfully “take the farm

’

Ironically, most of this condi- out of the boy,” or that building
tion results indirectly from pro- castles for beggars will. emit
motion by the city planners and princes. They cannot or will not
politicians of the very things they see that the buildings in areas
claim to be fighting. They clamor they call “slums” are for the most
for “more and better trained part structurally solid and archi-
police” to patrol a jungle of their tecturally handsome. The staid
own making. They promise to brownstone buildings containing
fight with their right hand what huge studio apartments would be
their left is doing. considered swank by more appre-

The transformation of attrac- ciative tenants. The wrong is not
tive neighborhoods into crime- in the buildings — but in the peo-
ridden jungles is largely the result ple who occupy them. This may be
of political actions along socialis- observed firsthand by visiting any
tic lines. Nor can it be said that of the areas mentioned above.

this leaning toward socialism As if to further guarantee that
comes unconsciously or from for- destruction by the tenants will go
giveable mistakes. unrepaired, politicians raise tax

For example, during the recent assessments to punish landlords
New York mayorality campaign who improve or repair their prop-
a spokesman for Robert Wagner erties. Pretending surprise at
boasted, “There are more people what they have produced, the


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

52 THE FREEMAN May

“planners” set about condemning blindness is the wunbought milk
whole neighborhoods, tearing and children’s shoes and clothing
down buildings to be displaced and better apartments that could
with morbid housing projects. otherwise have been afforded by
A few years ago, a leading New the people from whom the taxes
York paper told how the newest were taken. For every dollar's
apartment houses in New York worth of “good” political planners
had disintegrated into New York’s do, there is at least a dollar's
newest slums. Crime that was sup- worth of harm.
posed to be “born of the slums” The only way in which politi-
was occurring withalarming rapid- cians can raise the level of living
ity in the new projects. The dark, of those who occupy these projects
empty grounds of the housing is to lower the level of living of
projects invite gang-fights and the families who are struggling to
muggings, women are raped in Stay out of them. Any new tax
the elevators, obscenities are burdens on such families reduce
scribbled on walls, and the corri- their chances of staying inde-
dors reek of urine, The political pendent, and may thus force them
planners have an answer, of into a project.
course: “More and better trained Is that what the planners want?
Housing Police” to keep the ten- Well, bear in mind the political
ants from destroying that which power that is inherent in building
was given to them. projects, and remember that the
The old adage, “Easy come— numbers of people thus “aided”
easy go,” applies not only to a are now the source of arrogant
lazy playboy inheriting his boasts by politicians. Who would
father’s fortune, but also to a dare vote himself out of his own
tramp showered with taxpayers’ home or apartment? There are so

money. many New Yorkers living in pub-

lic housing that no New York poli-

The Unseen Consequences tician dares oppose it —and hope
The humanitarian planners can to get elected.

see the housing projects they have If there is a salvage value in

built with taxpayers’ money, and the New York situation, perhaps
imagine how noble they are to it is for others to observe and
have provided apartments for peo- learn that political “gifts” are a
ple who could not afford them. But club with which voters may be
what they do not see in their beaten into line. @®


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

E
Q

2 — THE DOWNFALL OF COMMUNISM

MARCELINE BRADFIELD

EDUCATION is frequently cited as world, particularly among the ed-
both a preventative for and a ucated classes.

weapon against communism. Most Contrary to popular opinion, the
people in the Free World concur poverty-stricken, hungry two-
in this belief, nor should we dis- thirds of the world are not the
sent. Nevertheless, while the vari- rabid proselytes of communism.
ous educative media, that is, the They could not care less. Their
schools, the press, other communi- main concern in life is survival:
cations, and the clergy, pound from where —and whether — the
away desultorily at the political, next meal is coming. Immersed in
economic, and military challenges their own abject misery, they are
we face in combating the interna- swayed only by the lure of a full
tional communist movement, belly for their children and them-
scarcely a voice is heard to de- selves —then by the hope of a
nounce the ideology at its grass better life. Promises of political
roots where it is weakest. Start- freedom strike empty chords for
ling discoveries by Western scien- men who know not freedom even
tists in the field of parapsychology from malnutrition and death by
have in recent years completely starvation. Democracy and com-
shattered the basis of communist munism are equally meaningless
materialism. Too long have these words to men like these.
revelations passed almost un- Men who are enlightened and
noticed and unheralded in the able, however, find appeal in
_— Marxist ideology. Throughout the
Moroni. mouher of ree iaren landidy, World dialectical materialism
and small investor, also has found time to offers to increasing numbers of in-

ursue graduate studies in Cultural Geography .
at Los Angeles State College. tellectuals an explanation of the

53


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

b4 THE FREEMAN May

nature of man which superficially entirely or to live as split person-
rings true. Even in the West, alities with dual philosophies.
where communism is rejected, men A further cause of the disen-
of learning and letters are badly chantment of the intelligentsia
divided within themselves over the with religious philosophy is the
basic issue with which communism inescapable fact of mankind's
began —an attempt to assess plight of hunger and poverty.
man’s nature and his relation to Despite thousands of years of
society and the universe. This high-sounding ideals and noble
schizophrenia arises from the dif- wishful thinking, religion has thus
ficulty, if not the impossibility, far netted very little in practical
of correlating religious dogma application to the alleviation of
with the mechanistic interpreta- the suffering of most of its fol-
tion of life expounded in institu- lowers. The hollowness, the lack
tions of learning. of foundation and the ritualized
No necessity and no intention to doctrine of religious philosophy
attack the rights of free men to have proved inadequate to provide
choose and practice a religion are even a satisfactory life, much less
here implied. What is explicit here a richer, better one for the ma-
is the fact that millions of intel- jority of human beings. Intellec-
lectuals the world over have be- tuals, themselves often having
come disenchanted with backward- arisen by sheer will or by fortui-
looking religious institutions. Ra- tous circumstance from squalor,
tional people demand rational ex- are deeply concerned with the fail-
planations for man and his rela- ures of ecclesiastical institutions.
tion to the universe — not fairy- For many of them the alternative
tale revelations from the past. One has seemed to be the pseudo-scien-
does not have to be an atheist to tific materialism of Karl Marx.
realize that most religious dogma
founds itself upon a combination About Facel
of fantasy and faith. Men of The only implication for religion
higher learning have been taught here is not that the clergy should
to demand facts and proof as the immediately give up and drop
basis for their convictions. They dead, but that, in order to recap-
have been taught by prevailing ture the great thinking minds of
scientific principles that physical the world, the clergy must turn
laws are the only natural laws. their heads 180° from past to fu-
Thus, they have been compelled ture. With feet planted squarely
either to reject formal religion in the present and eyes directed to


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

1962 ESP, THE DOWNFALL OF COMMUNISM bb

the future, religious leaders can to the challenge of communism?
find factual bases in science for If it is the intellectuals who are re-
viable, solid, dynamic doctrines. sponsible for accepting commu-
For science and rationality are nism, should we not encourage less
enemies not of religion —only of education rather than more?
dogmatism. Religion’s prime ad-
versary is the philosophy of ma- The Idea of Materialism
terialism. Communism has suc- The key to these questions
ceeded best where it has been able abides in the idea of materialism.
to supplant long-entrenched spirit- Marxian materialist philosophy
ual institutions dedicated to the maintains that people are merely
salvation of humanity. And com- a conglomeration of living ma-
munism’s foundation, materialism, terial elements: everything in the
has seemed to offer a fresher look universe can be explained in terms
and a brighter hope to intellectuals of matter in motion. Marx’s athe-
for the solution of humankind’s ism further asserts that human
dilemma than religion has offered values, therefore, should center
in all of the past. Thus it happens around material considerations,
that some American scientists, pleasures, and satisfactions; hu-
African men of letters, and Vene- man history must be interpreted
zuelan students are taken in by in terms of material elements,
Marxian materialism. Dialectical materialism was a
What does it matter, anyway, product of the turbulent times in
if a few eggheads turn to ma- which Marx lived and wrote. The
terialism and thence to commu- growth of communism was and is
nism? The intelligentsia comprise a direct result of the disturbing
a bare minority in any nation’s fact that the great urgent prob-

population. lems affecting human life have
The importance of this small been grossly neglected.
percentage is that they form the Materialism, however, is merely

elite. Where they lead, the rest of an arrested phase of scientific de-
the people follow. A handful of velopment and thought. Even in
Bolshevik intellectuals pirated the Marx’s time it was not an ad-
Russian Revolution, a minority of vanced idea, but only a rehash of
Chinese scholars overthrew the mechanistic thought of past
Chiang, and a small band of Cuban ages. The Russian communists
students ousted Batista. captured the idea, dogmatized it,

Why, therefore, should we feel and swallowed it entire. There has
that in education lies the answer been and will be no progress in


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

56 THE FREEMAN May

scientific thought regarding the the universe itself do not conform
nature of man in the U.S.S.R. since to the tenets of materialism.

Lenin. Instead, the Soviets try to In the United States the Para-
fit human beings and human con- psychology Laboratory of Duke
duct into their political gospel of University, under the direction of
materialism. There is even at Dr. Joseph B. Rhine, has helped
present a concerted Machiavellian lead the way to this amazing dis-
attempt through Sino-Soviet re- covery. There the phenomena of
search in cybernetics to find ways extrasensory perception (mental
and means of controlling human telepathy, clairvoyance, and pre-
thought, the better to mold “good” cognition) and psychokinesis
communists in keeping with the (mind's influence over matter)
production-line precepts of ‘‘com- have been extensively tested by
munist man.” All this because painstaking laboratory and sta-
communists, for all their claims of tistical methods. While recogniz-
being scientific, have failed to ing that the study itself is merely
explore beyond the mechanistic in an embryonic stage similar to

concept of materialism. that of physical science in general
Co . a century or two ago, Dr. Rhine
Scientific Refutation and his colleagues throughout the

In many places in the Free Western World have already
World, on the other hand, scien- proved that ESP and PK take
tists have carried inquiry into the place normally in human beings.
nature of man beyond the stagna- Telepathy, clairvoyance, precogni-
tion of a physicalistic interpreta- tion, and psychokinesis exist. This
tion. The time has long since ar- means that mental processes occur
rived to impugn communist ma- in man which are unexplainable
terialism on the basis of the find- by physical law. The unavoidable
ings of these researchers. For defi- conclusion is that, quite contrary
nite scientific evidence, obtained to the belief that all natural law
through carefully controlled experi- is physical law, some process oper-
ment, has completely shattered the ates in man which transcends the
entire basis of communism’s con- laws of matter, making manifest
cept of man as merely dust with- a nonphysical or spiritual law.’?
out soul or spirit! Experiments This is a major break-through
carried out by scientists of every TT For a more extensive discussion of
continent over the past thirty to ESP and communism, the reader is re-
forty years have uncovered incon- or in Re Yorke Wea a orld
trovertible proof that man and Agsociates, 1953), ch. 9.


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

1962 ESP, THE DOWNFALL OF COMMUNISM 57

for science, as well as for religion. totalitarianism. Let the communi-
For science it provides a spring- cations industry hammer home the
board not only into new concepts economic fallacies of socialism, Let
in mental therapy and psychologi- the church preach again and again
cal research, but into new infor- the idiocy inherent in the belief in
mation of the universe, It is a dis- the inevitable triumph of athe-
covery as basic as the use of fire istic communism.
or the wheel, as the mastery of But first, let educators, scien-
electricity and steam, as atomic tists, the press, and the clergy
radiation and the theory of rela- bring education up-to-date. Let
tivity. them expose to light, for all the
For religion it establishes a world to see, the fact that man is
firm foothold at least for further more than a mobilized chemical
factual revelations regarding the equation. Let the common man of
true nature of man in his universe. the world know that science has
It promises religious pioneers a proved he has a spiritual exist-
fund of new, firmly-based knowl- ence. Above all, let the intellec-
edge upon which to formulate tuals of the planet in particular be
fresh, flexible doctrines. informed that scientific research
And, in the present crises be- has shown man to be a hgtero-
tween Kast and West, it is a geneous system composed of a
break-through which renders physical body plus an extraphysi-
thoroughly obsolete the founda- cal order of processes within him-
tions of the entire Marxist-Lenin- self.

ist ideology. Then the foundations of com-
) munism will be eroded into the
The Challenge to Education: mere dust which they claim man

Bring It Up-to-Date to be. For how can dialectical ma-

Here, then, is the challenge to terialism’s appeal to the intellec-
education: Let the institutions of tual withstand the onslaught of
learning continue to teach the man with a spiritual nature veri-
perils to freedom of communist fiable in science? @®

Institutions

AS A SNOWDRIFT is formed where there is a
lull in the wind, so, one would say, where there
is a lull of truth, an institution springs up.
HENRY DAVID THOREAU, Life Without Principle


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

A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN

MONEY IS
AS MONEY DOES

THERE USED to be landed proprie- their inheritance taxes if they are
tors. Now there are funded pro- to satisfy the modern view. But,
prietors. And, just as the landed having done that, they should so
proprietor was regarded with am- arrange their wills that the family
bivalent feelings (he served a seat of power —a great bank, a
function by providing a free mar- railroad, an automobile manufac-
ket in real estate, he was envied turing company — will continue to
by the landless), so the funded freshen the fortunes of the tribe.
proprietor excites people to quite If the inheritance tax laws make
mixed-up responses. it difficult for any particular fam-
There are fashionable modes in ily group to retain control of a
these responses, too. Three recent corporation over the generations,
books about funded families — there are ways around the diffi-
John Tebbel’s The Inheritors culty. After all, one can establish
(Putnam’s, $5), Edwin P, Hoyt’'s a foundation which will remain
The Vanderbilts and Their For- suitably neutral in company mat-
tunes (Doubleday, $4.95), and ters even though it holds a good
Frederic Morton’s The Roth- percentage of the stock.
schilds: A Family Portrait (Athe- Far be it from this reviewer to
neum, $5.95) — differ a bit from object to dynastic families. The
each other in their attitude toward Rothschilds, as followed through
the duties of monied people, But several generations by Mr. Mor-
the latest fashion in thinking ton, have used their power and
about rich families is evidently to money both wisely and well. Ditto
insist that they cultivate clan for the Mellon, Rockefeller, Ford,
sentiments. and du Pont families, as chroni-
According to these books, rich cled by Mr. Tebbel. But if a fam-
people should have a dynastic ily loses its dynastic sense, which
sense. They should, of course, be is what happened in the case of
prepared quite cheerfully to pay the Vanderbilts, just why is it a

58


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

1962 } MONEY IS AS MONEY DOES 59

cause for social moralizing? Mr. poleon. The du Ponts have always
Hoyt evidently thinks it a shame bred sons and cousins who have
that old Commodore Vanderbilt, retained an active interest in
who put the New York Central chemical engineering and in indus-
Railroad together, could not have trial management. But when the
found some device to entail the heirs of the Dodge brothers, both
property to Vanderbilts in perpe- male and female, developed a pas-
tuity. Well, it might have been sion for spending their inherit-
better for the Vanderbilt name if ances far from the automobile
one Vanderbilt in each generation production lines of Detroit, it did
had been drilled in the idea that not mean that anything of impor-
it was his duty to regard the New tance was lost. The true Dodge
York Central as a sort of indus- “inheritor” happened to be a man
trial family dukedom. But insofar named Walter Chrysler, who
as the public is concerned, it would bought control of the Dodge Motor
seem to be a matter of supreme Company and used its manufac-
indifference what name is attached turing facilities just as efficiently
to a property provided that the as if he had been John or Horace

property is efficiently run. Dodge's true son,
} Reading about Rothschilds,
Constructive Use Rockefellers, Vanderbilts, du

From the economic standpoint, Ponts, Dodges, Huttons, Dukes,
the truly interesting thing about and other assorted rich families,
these three books is the proof they it is forcibly brought home to one
offer that money can be trusted to that “society,” as represented by
gravitate willy-nilly into the hands the state, is hardly called upon to
of people who are able to use it have any official attitude toward
constructively. Sometimes the con- inherited wealth. Is it a good thing
structive personage will be a de- that Rockefellers, Fords, and
scendant of the original fortune Mellons, for example, have been
maker; sometimes he will be a virtually forced by inheritance tax
total stranger. The Rothschilds, law to put their money into foun-
who have never let their inherit- dations instead of handing it on
ance be dispersed by handing over outright to various scions?
huge chunks of income-producing
property to female offspring, have A Complicated Question
done constructive investment To answer such a question, one
banking in London and Paris ever would have to balance the char-
since the time of the first Na- acters of separate Rockefeller,


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

60 THE FREEMAN May

Ford, and Mellon children against tail disappear from the local scene.
the acumen of the administrators Well, if entailing of control is
chosen to run the separate foun- bad as applied to the land, wouldn’t
dations. Naturally, no hard and it be just as liable to abuse if ap-
fast judgment suggests itself. plied to other forms of productive
Rockefeller foundations have done wealth?

good work in educational and What if a single stupid Vander-
medical fields. On the other hand, bilt had received the bulk of the
nobody can cavil at David Rocke- Commodore’s money in the third
feller’s record in banking, or at generation, say? Vanderbilt funds
Nelson Rockefeller’s use of his happened to be diluted for the
money in promoting industry in simple reason that fecundity was
Venezuela. So what if David, a natural characteristic of Van-
Nelson, and their brothers had in- derbilts as they produced new
herited all of their grandfather's generations, This was quite in ac-
oil money outright? Inasmuch as cordance with democratic precepts.
the Rockefeller boys know how to The “diluted” money of the Van-
employ their dollars in job-creat- derbilts went to pay for many
ing activity, the end result to so- things, some wise, some indiffer-
ciety would have been good. And ent, and some foolish. Vanderbilts
medicine and education would were sportsmen: they bred horses,
hardly have suffered by the multi- raced automobiles, and went in
plication of wages and dividends for defending cups against com-
which, in turn, would have been peting British yachtsmen. All of
available to pay for schooling and this gave color and savor to the

hospitalization. American scene, Willy K. Vander-
] } bilt the Second helped Ransom
Primogeniture and Entail Olds and Henry Ford out as pio-

On the other hand, why are neer automobile manufacturers by
spenders so terrible, and what dif- making motoring popular among
ference does it make if “dilution” those who could afford to buy the
cuts family fortunes into little first cars. Later Vanderbilts pro-
pieces? About a hundred years vided Juan Terry Trippe of Pan
ago the world decided that primo- American Airways with some of
geniture and entail in landed the capital needed to establish the
estates worked a monopolistic in- airline business. This was con-
justice on younger sons. Wisely, structive work. Less constructive
the founders of the American re- were the Vanderbilt wives who
public let primogeniture and en- gratified themselves by society do-


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

1962 MONEY IS AS MONEY DOES 61

ings which, to our generation, in any case. Perhaps it would have
seem incredibly frivolous as we been better, on balance, if Harold
look back on them. But the money Vanderbilt had taken his money
“wasted” went to support archi- out of the Central years before.

tects, dressmakers, cooks, and art The moral of books about
dealers. So was it really “wasted,” monied families, then, is that
after all? there is no single moral. Monied

dynasties are interesting. But if
A Railroad that Couldn't what a monied man creates passes
Support a Dynasty : into the hands of others, it can
The New York Central passed be interesting, too. In either case,
out of Vanderbilt hands when money is as money does: the name
Robert R. Young, backed by that is attached to it is quite, quite
Richardson and Murchison money immaterial. Whether a Dodge is
from Texas, took control of the made by a Dodge or by a Chrysler,
railroad. Was this a good or a the thing that counts is what is
bad thing? Inasmuch as Harold under the hood. @®
Vanderbilt, as a director of the
railroad, had helped to pick a good » THE COMMITTEE AND ITS
to run the Central, there was Jr. (G.P. Putnam’s Sons, New
little justice to Mr. Young's con- York, 1962, 352 pp. $4.95)
tention that the Vanderbilts had
lost their railroading touch. But
when Mr. Young’s own particular
choice for the railroad presidency, THE HOUSE COMMITTEE on Un-
Alfred E. Perlman of Denver and American Activities (HUAC for
Rio Grande fame, took over Mr. short) has been the target for an
White's job after the big Young unprecedented campaign of abuse,
proxy victory, one good man re- slander, and denigration, spear-
placed another. So the stockholders headed by the American Com-
came out just about even on the munist Party and its proliferating
change. As for Harold Vanderbilt, fronts, but extending to well-
he lost his base in the company meaning though poorly informed
that had been created by the old “liberals.” As a result an image
Commodore. But railroading as has been built up of a monstrous
a whole had fallen on evil days, inquisition, invading the privacy
and the Central was no longer in and personal lives of blameless
a position to support a dynasty citizens, who are supposedly de-

Reviewed by William Henry
Chamberlin


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

62 THE FREEMAN May

nied elementary rights, such as evoked loud cheers when applied
representation by counsel. The against suspected criminals and
thoroughly false allegation is ‘“malefactors of great wealth” are
sometimes made that HUAC has denounced as outrageous when ap-
never sponsored legislation. plied to individuals suspected of
It is high time that the sober taking part in a conspiracy with
factual truth about the Commit- implications of espionage and even
tee, its functions, purposes, and treason.
accomplishments should be told. One of the most colorful chap-
William F. Buckley, Jr. in col- ters in the book is Ralph de Tole-
laboration with the editors and dano’s staccato, rapid-fire recon-
contributors of National Review struction of thc case of Alger
has done this very effectively in Hiss, which was touched off by
an over-all survey of the history hearings of the HUAC. The con-
of this controversial body. What frontation of the repentant former
emerges is an image of a Congres- communist agent, Whittaker
sional Committee, operating under Chambers and the unrepentant
legal procedures and restraints, Hiss, who at first denied ever
properly authorized by Congress knowing Chambers, is one of the
to keep a watchdog eye on a per- biggest dramas of the postwar
manent conspiracy against the se- period, Drawing on an intimate
curity of the American Republic, knowledge of all the details, ac-
making its normal share of mis- quired by journalistic coverage of
takes, but casting a badly needed the case, de Toledano shows how
spotlight on some activities of Hiss’s first attitude of contemptu-
Soviet spy rings and on the opera- ous superiority was broken down
tions and methods of the numer- bit by bit, until the revelations in
ous “fronts” by which the Com- the spectacular “pumpkin papers”
munist Party tries to infiltrate led to the indictment and convic-
into American public life and en- tion of Hiss for perjury, the stat-
list the cooperation of duped in- ute of limitations excluding the

nocents for its purposes. possibility of a more serious
Investigation is one of the old- charge.
est established rights of Con- Student groups, egged on by

gress and has never been success- local communists, carried out riot-
fully contested in the courts. One ous demonstrations against HUAC
of the curious inconsistencies in hearings in San Francisco in May
leftist attacks on HUAC is that 1960. A film, “Operation Aboli-
methods of searching probe which tion,” showing these demonstra-


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

1962 OTHER BOOKS 63

tions, has been attacked with re- for peace and justice were at their
markable venom. The book con- height. An amendment offered by
tains M. Stanton Evans’ exhaus- Representative John Rankin of
tive examination of what really Mississippi, making the commit-
happened in San Francisco, and tee permanent, squeezed through
the role of well-known local com- by the close margin of 208 to 186.
munists in the affair. But since that time, despite the

The Committee has probably drumfire of hostile criticism,
suffered from its name. ‘“Un-- HUAC has gained steadily in pop-
American” does lend itself to sa- ular esteem and congressional
tire and suggests an unduly wide support. When Representative
free-wheeling range of activities. James Roosevelt of California
Perhaps “Anti-American” would went on the warpath against
be a more specific definition of HUAC and started his own “Oper-
what HUAC is really about. Mr. ation Abolition,” he received com-
Buckley thinks “Committee on mendatory pats on the back from
Communist Activities” would de- The Washington Post and also
fine the proper scope of the Com- from The New York Times.

mittee’s functions more satisfac- But when the votes were
torily and elaborates his sugges- counted, Mr. Roosevelt mustered
tion as follows: exactly five supporters, as against

“It is not despicable movements 412 who favored the continuation
. . . that we want to see watched of the Committee. Here, as on
over by a committee of Congress. such issues as the recognition of
It is any despicable idea (whether Red China and its admission to
historically un-American or not) the United Nations, the popular
which (a) is being sustained by instinct, as reflected in near
foreign and powerful enemies of unanimous votes of Congress, has
the republic, or (b) threatens ex- clearly not been much affected by

plosive internal crises.” the fulminations of leftist intel-
As Mr. William F. Rickenbacker lectuals.
shows in his excellent chapter, a A chapter on the procedures

short history of the Committee, employed by the Committee shows
HUAC had a narrow escape from that there were some mistakes and
extinction in 1945, when illusions inconsistencies in the first post-
about the harmlessness of com- war years. However, in 1953
munism, the supposed ‘“democ- elaborate rules of procedure were
racy” of the Soviet Union, and adopted, with careful considera-
Stalin’s willingness to cooperate tion of the rights of witnesses to


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

64 THE FREEMAN May

be represented by counsel and of In looking through this story
persons placed in an adverse light of HUAC one is constantly im-
by testimony before the Commit- pressed by the extravagant vehe-
tee to appear before the Commit- mence and persistence of the at-
tee and state their side of the case. tacks which have been delivered

Most of what has been written against this particular exercise of
about the Committee, apart from the established investigative pow-
its own publications, has been in er of Congress. This seems to re-
a hostile polemical spirit. Anyone flect not spontaneous outbursts of
who is interested in getting a fair indignation, but a carefully laid
factual picture should read this design to discredit and, if possible,

book, which, although prepared by dosproy be body armen has cast
individuals friendly to the aims much light on the dark and devious

much useful documentary and fac- > ghly

. obnoxious to subversives and con-
tual material. Indeed, no one can

. ) ] scious or unconscious Soviet
discuss the lively controversial a

} . : gents.
subject of the Committee with au- Of these enemies HUAC may
thority without making himself yell be proud, as Grover Cleveland
familiar with the contents of this was loved for the enemies he

first over-all survey of its work. made. ®

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A LITERATURE OF FREEDOM

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IRVINGTON-ON-HUDSON, NEW YORK


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

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ECONOMICS
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===== PAGE 68 =====

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