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

IDEAS ON LIBERTY

JULY 1962

Freedom’s Foundation . Carlton Williams 3

Basis of Liberty Dean Russell 9

Individual Liberty in the Crucible of History |
3. Circumstances Hostile to Liberty . . Clarence B. Carson 1

Do-It-Yourself Brainwashing D. M. Westerholm 22

The Decontamination of Profits . H. P. B. Jenkins 27

ldolizing Institutionalism
A King of Long Ago

Who Conserves Our Resources? .

William Henry Chamberlin 28
Lewis Love 34

Ruth Shallcross Maynard 36

The Moral Element in Free Enterprise . . F. A. Hayek 44

Taxpayers’ Money
Freedom, Productivity, and Progress

Books:

Hindsight on the Liberty League .
Other Books .

Howard Preston 52
Edward P. Coleson 54
John Chamberlain 59

62

THE FOUNDATION
FOR ECONOMIC EDUCATION, INC.

Irvington-on-Hudson, New York


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

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THE

Teemdn A MONTHLY JOURNAL OF IDEAS ON LIBERTY

JULY 1962 Vol. 12, No. 7

LEONARD E, READ President, Foundation for
Economic Education

PAUL L. PoIrOT Managing Editor

THE FREEMAN is published monthly by the
Foundation for Economic Education, Inc., a non-
political, nonprofit educational champion of private
property, the free market, the profit and loss system,
and limited government, founded in 1946, with offices
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Copyright, 1962, The Foundation for Economic Education, Inc. Printed
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FYE Element in Free Enterprise,” and ‘Taxpayers’ Money."

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CARLTON WILLIAMS

THERE IS a fatalistic belief that will of the ruler, as the case may
freedom depends upon the kind be.
of government under which a per- When any people believe that
son lives. If one happens to live freedom is merely a privilege
in a land where the privileges of which may be bestowed or with-
freedom are denied, his only hope drawn at will by their rulers, they
is to migrate — if he can — to an- are in the gravest danger, for the
_ other country. This belief takes for history of nations shows that once
granted that freedom is the gift of a power is gained by the state, it
the state, that freedom or the is not willingly relinquished.
lack of it is a consequence of Whether it is clear or not to the
the policy of government. The as- masses, it is really the people
sumption is that freedom is en- themselves who are finally respon-
tirely a matter of the law, or the sible for the conditions under

The Reverend Mr. Williams is Pastor Emeri- which they live.
tus of The Old Stone Church, Rockton, Iili- It is easy to demonstrate this

nois.

Illustration: A. Devaney, Inc., New York when we consider our own early



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4 THE FREEMAN July

history. No one questions that our own making? Would we Ameri-
Constitution was framed and our cans agree that the growing
federal government formed by menace of the income tax is some-
dedicated men who were motivated thing we have wished upon our-
by high ideals which had deep re- selves? Any attempt to answer
ligious foundations. They believed such questions involves a sober ex-
that men were “endowed by their amination of the basic foundation
Creator with the inalienable rights of human freedom. Present evils
of life, liberty and the pursuit of in any country cannot be separated
happiness,” and they admitted from the blunders, the crimes, the
that man’s law must be in con- shortsightedness of the past. The
formity with “the laws of nature sing of the fathers remain long
and nature’s God.” after to punish their children. It

In this discussion our purpose behooves us then to do some sober
is to emphasize that without lofty soul-searching. As never before in
idealism, such as a commanding human history we need to under-
faith in religion, it is impossible stand what freedom is and where
for a people to achieve freedom, it comes from.

or to maintain it once it is Freedom is that condition under
achieved, which people have the right of

uncoerced choice. So long as we
Freedom Is Within Us are bound by conditions which in-

Freedom is not something the validate choice ~ whatever those
government gives to the people; conditions may be— we are en-
rather, it is what “we the people” slaved by them and to that extent
give to ourselves in the kind of dehumanized. This does not mean,
government we establish or toler- however, that freedom has no
ate — “the government deriving its built-in restraints. True freedom
powers from the consent of the is obligation as well as privilege.
governed.” If “we the people” have When the yoke of bondage is taken
no commanding idealism, no con- from man’s neck, the cross of re-
victions worthy the name, nothing sponsibility is placed on his
to give, no protests to make, then shoulder.
the government is free to usurp Still there is a persistent temp-
all power and privilege to itself. tation to regard freedom as escape
Such a statement is easy to make, from bother, the privilege to live
but would the people of East Ger- at ease and in luxury without
many, for example, agree that they being interfered with. This con-
are governed by a system of their ception is one which idealism must


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1962 FREEDOM'S FOUNDATION 5

challenge. No one can guard the that the rest of the world can be
fortress of his own soul without saved?
having strong convictions with We speak of that saving force as
which to challenge the evils that “religion.” If that word is wisely
seek to destroy him. Goethe says, used in this connection we must in-
“He only earns his freedom and quire what it is. Religion is man
existence who daily conquers them living in harmony with himself,
anew.” (Faust, V, 6) And Lord with his highest self. And no one
Byron responds, “I loathe . ..the can live in harmony with himself
mortal made of such quicksilver without being in harmony with his
clay that in his breast no per- Creator. No man created himself
manent foundation can be laid.” . or fabricated his own mind. He
(Don Juan, II, 209) was created, without being con-
We have ruthless enemies who sulted; and he was created for a
scoff at our sacred ideas as foolish purpose, whether he knows it or
weaknesses and delight to throw not. Each person has two poten-
our most cherished values into tials: God grants to each of us
their withering fires of hate and the right to be ourself, at the same
deception. Once we lose our belief time being His invention and His
in the sanctity of the individual instrument. Man had no choice
and in the truth of our ideas, we about being created, but he does
become easy prey to a godless have a choice about being God's
ideology that promises to destroy agent. The purpose of creation was
us. What, then, are these ideals, to provide us an opportunity to
what is this “religion” which holds exercise free will, in the divine

the secret of our protection? hope that we would choose wisely

and by the merit of that choice

Free To Choose prove ourselves worthy of fellow-
The primary promise of religion ship with our Creator.

is salvation; and when religion is Probably the most audacious ex-

on the shelf, salvation is in the periment in creation was man’s
balance. To some, “salvation” may endowment with this freedom of
mean personal redemption or the choice. No other creature on earth
promise of life after death, But has such freedom. Everything else
what we are talking about here in the universe, animate or inani-
is world salvation, the salvation mate, follows a pattern to which it
of the human race, the salvation is bound and from which it cannot
of America. For if what America escape. Only man is free to control
stands for is lost, is it possible himself or run uncontrolled, to


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6 THE FREEMAN July

pray or to curse, to become a saint perience, and is, I firmly believe,
or to be a sinner. As we regard the supreme goal of human life.
ourselves in this light, the convic- This is true religion. It is not
tion dawns that God in us is aim- creed or dogma or churchism. It
ing at the production of superior is a mental-spiritual experience of
beings, creatures of such high the highest order.

order that we may be both worthy Irreligion, on the other hand, is
and capable of cooperation with habitual denial of God in thought
God in the unfinished work of crea- and behavior, and this is also to
tion. “For creation waits with reject man. Far too many people
eager longing for the revealing of in this distressed world live as if
the sons of God; for creation was they had no relation whatever to
subjected to futility” yet “will be their Creator, and so fail to recog-
set free from its bondage to de- nize the meaning and reason of

cay....” (Romans 8:19-21) their own existence. The tragic re-
sult of such failure is the inevita-
A Mountaintop of Importance ble loss of those ideals which are

Once we are seized by the con- the necessary foundation of a
viction that we are created for so triumphant life.
exalted a purpose that it beggars This is a lofty ideal which may
description, we are immediately appear exceedingly difficult to ap-
lifted to a mountaintop of impor- ply in a practical world. If we do
tance. Such belief gives man an believe that human freedom is
unshakable dignity and the con- God-endowed and cannot be vio-
viction that nothing, except his lated without disaster, how are we
own self, can prevent his achieving to behave in the face of a creeping
a God-given greatness. Every per- socialistic paralysis? We are con-
son in existence has such a des- fronted with a desperate conflict
tiny, whether he is aware of it or between our ideals and practical
not. But any one of us may miss conditions. We believe human
the goal of God’s intention by re- rights are God-given, yet are
fusing to go in the direction of forced to accept state regulations
that goal. And the same thing is as citizens. We do not believe in
true of entire nations, Human his- the increasingly huge federal
tory is crowded with bloody hands spending — the everlasting filling
and scarlet robes, yet God never the public hog trough with free-
compels men to obey. for-all — yet are obliged to pay our

Consciousness of God is the taxes, nevertheless. So we lose our
highest achievement in human ex- individuality, our personal free-


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1962 FREEDOM'S FOUNDATION 7

dom, by being obliged to conform tirely secular from beginning to
to state regulations. We need to end.

have it thundered home to us by The tragedy is that ideology
every means available that all cen- which has the power to save, best
tralized authorities, from the fed- expressed in the Christian reli-
eral government to the labor gion, isignored in the education of
unions, are concerned with limit- our children. Because it is ignored,
ing individual liberty, not with Christian idealism appears to

promoting it. them unnecessary. Being out of
} bounds in the system, religion be-
A Serious Problem comes out of bounds in the attitude

We have one national problem of both teachers and students. If
which illustrates this conflict and religion is the foundation of free-
one for which there seems to be dom, as repeatedly claimed, the
no solution, a problem which is practice which ignores religion is
seldom mentioned and scarcely a practice which will eventually
thought about. It is the condition destroy freedom. Witness atheistic
which has developed in our educa- Russia where a man who dared to
tional system which prohibits the speak as I am speaking would be
teaching of religion in public silenced before he could be heard.
schools. This prohibition has come We have not yet gone that far but
about for two well-known reasons. when we refuse to allow religion

In the first place the Constitu- to be taught to our youth, we are
tion forbids the government to preparing an attitude of mind op-
establish religion and recognizes posed to religion and favorable to
the right of the people to worship materialism, secularism, and out-
as they please. This is all to the right disregard for righteousness.
good, and no one in his right mind An alarming evidence of this
would advocate that it be changed. growing attitude is the epidemic

But the second reason is very of juvenile delinquency, the major
bad, and the sooner it can be crime wave among teenagers.
changed the better it will be for Many of our young people appear
the welfare of the whole world. I to have little or no regard for the
refer to the sectarianism in organ- rights of others or respect for
ized Christianity which has split truth and morals, and are plung-
God’s people into unreasonable, ing headlong down the dismal road
and I say unchristian, factions. to dissipation and lawlessness.
The result is that public education Why? Because of the failure of
has been obliged to become en- parents and schools and churches!


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8 THE FREEMAN July

Neither modern youth nor their rived anywhere. We seek enter-
parents before them were trained tainment, pleasures, comfortable-
in public schools to evaluate the ness, pursuing a fictitious pot of
loftiest ideals ever given to man. gold without ever seeing a rain-
Both teenagers and their parents bow. Our lives are surfeited with
have been schooled in secular sub- indulgences while achieving little
jects and coached in materialistic satisfaction. How many people do
values but left to themselves in you know who have the ability to
what amounts to a wilderness of “rejoice and be exceedingly glad”?
spiritual taboo. If the churches
claim to take over the spiritual Practical Application
education of our people, the public However fanciful our argument,
is unimpressed, seeing that the the fact is that every philosophy
church is divided against itself or religion must have a practical
and has not enough spirituality to application. Society is established
mend its own ugly schism, If peo- and sustained in and by economics.
ple generally, including juveniles, Property rights are fundamental
develop a commanding ideology, to freedom, just as life is impossi-
they must do it despite these con- ble without “stuff.” Materials are
flicting conditions, and they must necessary to life, but are they so
do it pretty much by their own vital that they must be guaranteed
initiative. by the state? The answer to this

This leads us to the current crit- question is the master key, which
icism that America, excelling in is the deep, the passionate appre-
science and industry, has become ciation of the importance and the
materialistic. People are so hungry sanctity of the individual.
for money that it seems to make

little or no difference how they get Religious ideals are addressed to
it. Nothing really matters if it persons. “Thou shalt . . . Thou
does not “pay off.” Science, engi- shalt not... Blessed art thou . ..
neering, production, transporta- Do this and thou shalt live . . .
tion, machinery, material, stuff — Love thy neighbor as thyself . . .

these are the measure of modern THOU!” These lofty conceptions
life, while our religion, art, music, have nothing whatever to do with
poetry have become more and more government. They are addressed to
empty, if not nonexistent. We rush you. The government is your in-
here and there in feverish hurry strument, answerable to you. But
and when we get there, we have a do not forget, you are God's in-
baffling sense of not having ar- strument, answerable to Him. &


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

DEAN RUSSELL

BASIS OF LIBERTY

Freedom Disappears When Economy Is Controlled

IN ONE of his fables Aesop said: The Roman philosopher and
“A horse and a stag, feeding to- poet, Horace, said of this fable:
gether in a rich meadow, began “This is the case of him, who,

fighting over which should have dreading poverty, parts with that
the best grass. The stag with his invaluable jewel, Liberty; like a
sharp horns got the better of the wretch as he is, he will be always
horse. So the horse asked the help subject to a tyrant of some sort
of man. And man agreed, but sug- or other, and be a slave forever;
gested that his help might be more because his avaricious spirit knew
effective if he were permitted to not how to be contented with that
ride the horse and guide him as moderate competency, which he
he thought best. So the horse per- might have possessed independent
mitted man to put a saddle on his of all the world.”

back and a bridle on his head. Ever since man learned to
Thus they drove the stag from the write, one of his favorite subjects
meadow. But when the horse asked has been freedom and liberty. And
man to remove the bridle and sad- almost always, it has been his own
dle and set him free, man an- government that he most feared
swered, ‘I never before knew what as the destroyer of his liberty.
a useful drudge you are. And now Further, various economic issues

that I have found what you are — primarily, the ownership of
good for, you may rest assured property and the control of one’s
that I will keep you to it.’ ” time and labor — have always been

listed prominently among the

Dr. Russell recently has re-joined the staff of i
the Foundation for Economic Education. This measurements of liberty.

article first appeared in the Sunday edition of Justice Sutherland of our Su-
the Rockford (Illinois) Morning Star, Janu- .
ary 7, 1962. preme Court clearly saw this con-

9


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10 THE FREEMAN July

nection when he said, “The in- for the people in general has
dividual has three rights, equally surged forward whenever the pro-
sacred from arbitrary interfer- duction and distribution of goods
ence [from government]: the and services have been determined
right to his life, the right to his by the automatic processes of com-
liberty, the right to his property. petition in a free market. And
These three rights are so bound prosperity has faltered (and often
together as to be essentially one failed completely) whenever gov-
right. To give a man his life, but ernmental controls over the eco-
to deny him his liberty, is to take nomic activities of the people have
from him all that makes his life grown onerous.
worth living. To give him his The particular form of govern-
liberty, but to take from him the ment under which the people lived
property which is the fruit and doesn’t appear to have made much
badge of his liberty, is to still difference, one way or the other.
leave him a slave.” Liberty and prosperity have flour-
Frederic Bastiat, the French ished under democracies — and
political economist of the last cen- have disappeared under democra-
tury, phrased the same idea an- cies.
other way: “Life, liberty, and Liberty and prosperity have
property do not exist because men flourished under kings and em-
have made laws. On the contrary, perors—and have disappeared
it was the fact that life, liberty, under kings and emperors.
and property existed beforehand Over the long haul, the extent
that caused men to make laws in of liberty and prosperity has al-
the first place.” ways hinged on the degree of
A primary lesson of history is private ownership and competition
that liberty generally flourishes in a free market, and not on how
when goods are privately owned many people voted or didn’t vote
and distributed. I can find no ex- at a particular time.
ample of real freedom for the
people over a significant period of As Aesop and Horace so clearly
time when the means of produc- pointed out in their pungent com-
tion were mostly owned by the ments on this subject, liberty is
government, or by a restricted generally surrendered by the peo-
and self-perpetuating group who ple themselves to their own gov-
controlled the powers of govern- ernment—in an effort to get more
ment. of the material things of life. It
In addition, material prosperity has never worked for long. ®


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

MEN BENT upon tyranny will ever
find means at hand for achieving

it and justifications for imposing

INDIVIDU AL it. The unimaginative, the uncrea-
tive, the lazy, and the irresponsi-

ble can ever find formidable cir-
cumstances to excuse their fail-

! ures. Whether any given set of
rr circumstances is more favorable

to liberty than another is debata-
(3 ble. It is not debatable, however,
1 that conditions change, or that
n | E changed circumstances require
aio \ different approaches to the same
goal. Deterministic explanations

of human behavior cannot be dis-
CRI LIE LF posed of by simply denying any
importance to circumstances. We

front at any given time an impos-

3 ing array of circumstances in
01 terms of which we must modify

our behavior or have it modified

for us, react or respond, adjust
STORY to or overcome them. Effective ac-
tion must proceed from an aware-

ness both of enduring and of
FEN changing circumstances.
One of the inherent weaknesses

. | | 5 of conservatism is its tendency to
CLARENCE B. CARSON IS rely upon whatever is established
N and instituted, oblivious to the

% ,

AY
\ Dr, Carson is Associate Professor of History at
JY Jacksonville State College in Alabama. This
[ is the third in a series of six articles on Indi-
t vidual Liberty in the Crucible of History. The
next article, “A Collectivist Curvature of the
Mind,” appears next month.

3. Circumstances Hostile to Liberty

11


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

12 THE FREEMAN July

manifold changes that are occur- conservative who would, they say,
ring. At his best, the conserva- return to the days of McKinley.
tive labors to preserve enduring The argument from circum-
values; at his worst, he battles to stances (and the “necessity” of
maintain all established practices. coming to terms with them) is the
Frequently, he stands for the most powerful one in the arsenal
ephemeral and enduring indis- of the “liberal.” The argument
criminately, thus laying himself cannot be countered either by ig-
open to the charge that he fears noring or denouncing it. It can
change and loves the comfort of only be met effectively by recog-
the familiar. Quite likely, too, con- nizing the changed conditions of
servatives at any time will have the twentieth century, acknowl-
among their number those who edging that changed circum-
have established themselves in stances require different ap-
some favored position, and who proaches to liberty, and boldly
wish to see it maintained as a spe- confronting these circumstances
cial privilege. with new ideas and programs. An
Those whose dominant public historical purpose can be served
concern is with liberty can make also by calling attention to the
common cause with conservatives changed physical conditions in
at one point — their desire to main- America, for it was in terms of
tain instituted protections of them that reformers advanced
liberty because it is an enduring their programs and infused
value. But the task is not now one America with their ideas.
of simply maintaining liberty; it It is not necessary to embrace a
is in great measure one of restor- deterministic environmentalism in
ing it. The posture of the indis- order to recognize that changed
criminate conservative can be a circumstances can alter the con-
positive hindrance in the latter ditions of individual liberty. When
undertaking. Liberty is a very conditions are simple, the alterna-
practical matter. To ignore or tives for choice are more apparent.
gloss over changed circumstances The fewer people involved in a de-
will not help to maintain liberty, cision the easier it is for all of
but it will play into the hands of them to participate effectively in
those whose programs have re- the decision-making process. Eco-
sulted in a gradual circumscrip- nomic independence promotes in-
tion of liberty. Twentieth century dividual liberty; dependence is a
“liberals” have had the advantage deterrent. As the situation be-
too long of taking potshots at the comes more complex, as men's


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

1962 CIRCUMSTANCES HOSTILE TO LIBERTY 13

lives become more interrelated, as the necessity to conform to estab-
institutions grow in size and com- lished ways, from many of the
plexity, as organizations extend prescriptions of class and caste,
their reach, liberty becomes ever from most, if not all, of the limi-
more difficult to maintain. Con- tations of an established order.
versely, it is much easier for
tyranny to be subtly extended. Responsible Individuals

The foundations of American But the New World not only
liberty were conceived and laid in offered much; it also required
an overwhelmingly rural, agrar- much of the settlers. It required
ian, sparsely populated, and in- strength, courage, ingenuity; it
formal America. These founda- placed great responsibility upon
tions rested upon premises in- the individual: he must establish
herited from the Old World and order, and he must provide for
practices congenial to the New himself and his own or perish.
World conditions. There is, of So, for intellectual, spiritual,
course, no conclusive proof that and circumstantial reasons, Amer-
the belief in individual liberty was icans developed an order in which
simply a product of the American there was much individual liberty
environment, and I doubt that it and a corresponding individual re-
was. New soil can become the sponsibility. Social customs arose
ground for new tyrannies if men to abate the loneliness and amelio-
are willing. My assumption is that rate the severity of individual re-
the devotion to liberty grows out sponsibility. They tended to be
of faith, hope, belief, and de- voluntary in character, and to de-
termination before which condi- pend upon cooperation rather than
tions may be nothing more than coercion for their working. I have
an adjunct. in mind such folkways and cus-

At any rate, New World condi- toms as house-raisings, house-
tions offered opportunities con- warmings, hog-killings, quilting
genial to the development of bees, cornhuskings, and sitting up
liberty if men’s minds were bent with the sick and the dead. In case
in that direction. This new land of severe need occasioned by crop
offered to the settlers unbounded failure, hail, being burned out, the
opportunity to conquer, to build, loss of an indispensable cow or
to change, to create a country, as horse, neighbors frequently made
it were, to their own liking. Early up an offering to help out. It was
settlers were largely free from the customary in the nineteenth cen-
binding fetters of custom, from tury for orphans, the aged, the


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

14 THE FREEMAN July

infirm, the crippled, and the and the unjust alike. My point is
maimed to be cared for by the that here were people who had a
closest kin among the relatives. way of life built upon inde-
When death occurred, the neigh- pendence, who had a significant
bors not only sat up during the liberty to dispose of their time
period of mourning but also laid and resources, and were pro-
out the body, built the coffin as foundly aware of their responsi-
likely as not, dug the grave, and bilities for their own well-being.
sang at the funeral. Recreation Self-respect and community re-
originated in and was participated spect depended upon maintaining
in by the community: singings, independence. There was some-
all-day to-do’s, cakewalks, square thing even shameful in having to
dances, turkey shoots, fox hunts, ask aid of anyone else. Help from
debates, fish fries, and picnics. others should be volunteered, not
Rural Americans, that is most asked for.
Americans before the Civil War,
produced most of the necessities Civil War — A Dividing Line
of life on the farm and in the The Civil War can be and often
home. They grew most of their has been taken as the dividing
food, hunted and fished for a por- line between the old and the new
tion of their meat, spun their America —as that point at which
yarn, wove and fashioned home- such diverse and multitudinous
spun clothes, churned their butter, changes began to spread across
made their soap and the lye that America that we can profitably
went into it. A family often “got speak of a qualitative change in
by” with only an occasional trip to the conditions of American life.
the store to purchase spices, salt, As one historian states it, “Our
powder and shot, and delicacies or nation of 1865 was a nation of
trinkets. The farmer was by ne- farmers, city artisans, and indus-
cessity a jack-of-all-trades, adept trious independent business men,
at everything from carpentry to and small scale manufacturers.
wood splitting. The farm wife was ... In this period before the Civil
expected to be accomplished in War comparatively small single
everything from fancy needlework owners, or frequently copartner-
to gardening. ships, controlled practically every
I describe neither utopia nor industrial field.”! After the Civil
pastoral bliss. There was much ——— ]
1 Burton J. Hendrick, The Age of Biy
hard and lonely work, much suf- Business (New Haven: Yale University
fering; the rains fell on the just Press, 1919), pp. 2-3, 6-7.


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

1962 CIRCUMSTANCES HOSTILE TO LIBERTY 15

War there emerged an increas- stitutional amendments adopted
ingly industrialized, urbanized, in consequence of the war greatly
and mechanized America. extended the scope of the central
It is neither practical nor neces- government. The Fourteenth
sary to trace out in detail the Amendment made citizenship na-
multitudinous changes that have tional, forbade states to violate the
occurred affecting the condition of privileges of any citizen (thus laid
Americans since the Civil War. It the foundation for federal courts
will be useful, however, to con- to provide rights). The Fifteenth
sider some of them in detail and Amendment extended the role of
to suggest the impact of others. I the national government into the
shall focus upon those develop- determination of who should vote.
ments which have been attended The war and reconstruction made
by increasing dependency, ramify- force a part of the character of
ing interdependency, growing the United States; no one could
complexity, and a circumscription now correctly maintain that the
of the area of choice of the indi- union was voluntary. The exten-
vidual. My purpose will be three- sion of the powers of the national
fold: to show that the conditions government created a greater
within which liberty could possi- force at a further remove from
bly be maintained have changed, the individual, made government
to indicate the bearing of changes more impersonal, and made it less
upon the individual's view of his likely that an individual could
chances for free choice, and to lay alter its course.
bare the circumstantial back-
ground which made “liberal” pro-
grams appear necessary and de- The difficulties of the freed
sirable, Negro may demonstrate to some
While the Civil War and de- extent the difficulties of achieving
velopments attendant upon it did liberty in that postwar United
not start the train of events and States. On the face of it, the free-
developments which were to cir- ing of the Negro was a gain for
cumscribe the individual, it did liberty in the United States. But
accentuate and accelerate some of most Negroes were unprepared
them. The outcome of the war for this giant step into freedom,
practically determined that the and the hard truth is that they
union was indissoluble, that states frequently traded slavery for
having once joined it were sub- peonage. Much of their new-found
ject to national decisions. The con- freedom was lost in the share-crop

Unprepared for Freedom


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

16 THE FREEMAN July

and supply system which emerged
in the South to replace the slave-
plantation system. By the end of
the nineteenth century the Negro,
more often than not, was politi-
cally disfranchised, socially segre-

.. gated, and economically encum-

“ered. He became one of the sev-
eral elements of the population
receptive to the appeal of govern-
ment provided “independence.”
If the Negro made some gains
relative to his former condition,
the white people in the South lost
in independence during and after
Reconstruction. Both as a result
of governmental attempts to make
over the South and because of the
fall in prices of farm products,
many white men were reduced to
tenant farming. The trend toward
white tenancy mounted through
the years. “In 1900 about 36 per
cent of all white farmers in Dixie
belonged to these classes. In 1930
the proportion had gone up . .. to
about 45 per cent.”? Negroes and
whites became competitors at the
same level for the available land.
The Southern white man alle-
viated, to some extent, the threat
of submergence by the Negro by
developing industries which were
usually closed to the ‘Negro. But
in so doing the Southerner fre-
quently traded the dependence of
2 Wilbur J. Cash, The Mind of the

South (Garden City: Doubleday, 1964),
p. 283.

the tenant for that of the factory
and mineworker. If anything, the
factory worker was more depend-
ent upon the mill operator than
the tenant had been upon the land-
lord. Frequently he lived in a

company house, bought necessities .:--

at the company store, was “pro-
tected” by the company police,
sent his children to the company
school, and attended a church sub-
sidized by the company.

Tenant Farming

The national agricultural situa-
tion followed a similar, though
less dramatic, pattern. The farm-
er’'s independence was being
drained away by declining prices,
heavy shipping and machinery
costs, and increasing indebtedness.
In the 1890's, 27 per cent of Amer-
ican farms were mortgaged, and
by 1910 the proportion had in-
creased to 33 per cent. Farm ten-
antry was rising nationally: in
1880, 25 per cent of American
farms were cultivated by tenants;
by 1910 the figure had risen to 37
per cent.’

The period from 1865 to 1890
had been one of unprecedented
agricultural and westward expan-
sion (a major reason for the sur-
plus in farm products which drove

8 T. Harry Williams, Richard N. Cur-
rent and Frank Friedel, A History of the
United States (New York: Alfred A.
Knopf, 1959), 11, 172-79,


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

1962 CIRCUMSTANCES HOSTILE TO LIBERTY 17

prices downward), of the occupa- 1855. When Cornelius Vanderbilt
tion of new lands, of gold and died in 1877, he left a fortune of
silver rushes, of the building of $104 million. Andrew Carnegie
cattle empires and the massacre sold his steel interests in the early
of buffalo for their hides, of the twentieth century for stocks and
expropriation of resources and the bonds valued at $492 million.4
filling out of the West. Oppor- Many rugged individualists
tunity did not end abruptly in used their wealth and manipula-
1890, but the surface resources tive skill to form monopolies and
that had drawn men westward trusts. When Standard Oil Com-
were owned and being utilized. pany, the first great trust, was
The fertile land had been claimed; formed in 1870 there were twenty-
the range land was being fenced; five independent refineries in
the buffalo had been killed. Some Cleveland. In two years Standard
Americans became aware that our absorbed all but five of these. “By
resources were not limitless, and 1874 the greatest refineries in
Congress passed the first conser- New York and Philadelphia had
vation laws. This change in con- likewise merged their identity
ditions set the stage for the be- with his [Rockefeller’s] own. When
lief that the ownership and con- Rockefeller began his acquisition,
trol of property — and its use and there were thirty independent re-
abuse — by some men was a threat fineries operating in Pittsburgh,
to others. all of which, in four or five years,
passed one by one under his con-
trol. The largest refineries of Bal-

Momentous economic changes timore surrendered in 1875."5
occurred between 1865 and 1900. Thus did smaller enterprises suc-
It was a period of rampant rugged cumb to absorption by the giants.
individualism, of the accumulation It is doubtful that individuals
of great fortunes in steel, meat, acting alone would have been able
oil, silver, and rails, of the con- to gain virtual control of whole
centration of wealth in the hands industries. Rockefeller combined
of powerful individuals, of the his wealth and acumen with that
spanning of the continent by rail- of other men to form his preda-
road and telegraph, of wild stock tory trust. Many of the great rail-
market coups, of prosperity and roads were built with funds sub-
depression. According to one re- gcribed by numerous individuals,
port, the wealthiest man in New "1 Hendrick, op. cit., pp. 10, 19, 84.
York was worth $6 million in 5 Ibid., p. 36.

Private Fortunes Accumulated


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

18 THE FREEMAN July

groups, towns, and states. Fur- ing industrialization and the na-
thermore, while governments tionalization of business was a
rarely interfered with business tremendous increase in nonagri-
operations in the late nineteenth cultural and industrial workers.
century, they did actively aid and In 1860 there were 4,325,116 non-
assist them in a variety of ways. agricultural workers in the United
There were tariffs, patents, fran- States; in 1900 there were
chises, and injunctions available 18,161,235, a more than fourfold
to the fortunate, and some rail- increase. Whatever else may be
roads received large grants of said for the “blue collar” and
land and huge government loans. ‘white collar” workers, who made
Combinations of capital could op- up an increasing proportion of
erate throughout the United these nonagricultural laborers,
States under the frequently un- they were usually dependent and
inhibitory charters of a single exposed when depressions and
state. The courts, instead of act- layoffs came. More often than not,
ing to limit the activities of com- they had neither land, property,
binations, extended their protec- nor insurance to fall back upon
tion over them: the Supreme in adversity. Moreover, employ-
Court ruled (Santa Clara Co. v. ment was uncertain: it fluctuated
Southern Pacific R. R. Co.) that a drastically in depressions such as
corporation was a person in the those of the 1870's and 1890's
sense implied in the Fourteenth (not to mention the 1930's), and
Amendment. It was these condi- in recessions in 1884, 1893, and
tions — government aid and pro- 1907. Financial panics and de-
tection with a minimum of re- pressions were not new to this
striction — which made possible time, but their impact was much
the great concentrations of wealth more widespread and devastating
and power.® than they had been in an earlier
Following upon and accompany- America when men were apt to
be less dependent upon one an-

6 I refrain from entering into the de- other
bate as to whether these developments :
produced more ‘‘good” or “evil.” Such
questions are usually answered within a Urbanization a Factor
framework of assumptions — pragmatic, .

materialistic, and the belief that man has Accompanying and related to
sufficient knowledge to make such judg- industrialization and the increase

ments—which I do not share. My interest of industrial workers was the rise

in these developments here is restricted . . .
to them as they became circumstances of of the city in the late nineteenth

liberty, century. Though rural still out-


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

1962 CIRCUMSTANCES HOSTILE TO LIBERTY 19

numbered urban inhabitants, one drought deepens; the frost comes
historian says: “In America in early or the hail destroys the
the eighties urbanization for the crops. The city dweller lives in
first time became a controlling contact with no such obvious con-
factor in national life. Just as straining reality. The conditions
the plantation was the typical of his existence are mostly man-
product of the antebellum South- made, hence apparently alterable
ern system and the small farm of at will. He is easy prey to the idea
the Northern agricultural order, that he alone creates wealth, or
so the city was the supreme that whatever is wrong can be
achievement of the new indus- corrected by governmental action.
trialism.”? He seeks scapegoats in adversity
So many problems which con- and worships heroes in prosperity.
cern only the individual or the If the farmer too is susceptible
family in rural areas are a com- to these attitudes, it may be in-
mon and collective concern in the dicative of the fact that he de-
city. If a farmer in a rural area rives more and more of his opin-
has a pigpen near the house, only ions from the city via the mass
he and his family are likely to media of communication.
suffer, but for a man to keep pigs
in the city may offend the nos- Other Complications
trils of all those within a city The few developments I have
block. City life provided the cir- discussed in some detail are only
cumstantial background for much a beginning and a sampling of
of the regulatory legislation of that totality of circumstances that
the twentieth century, which in- surround the individual in the
creasingly circumscribed the lib- twentieth century. The huge im-
erty of the individual. migration that poured into Amer-
Urban living has affected lib- ica in the late nineteenth and
erty, too, by obscuring the reality early twentieth century swelled
within which American liberty the population of Eastern cities
was conceived. The farmer is in with near destitute inhabitants,
daily contact with a reality of many of them illiterate even in
conditions which he did not create their own tongues, having come
and some of which he is impotent from lands without traditions of
to alter. The rains fall or the representative government, used
—_— . . to paternalistic arrangements, and
7 Arthur M. Schlesinger, The Rise of .
the City (New York: Macmillan, 1933), Whose conception of democracy
p. 79. was frequently vitiated with so-


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

20 THE FREEMAN July

cialism and anarchism. Enterpris- much validity to the view that the
ing individuals in the early twen- individual has been dwarfed by
tieth century sometimes found the nationalized, consolidated, and
sources of capital closed to them centralized businesses; swallowed
by a virtual “money trust.”® An up in giant corporations, vast bu-
international order which had reaucracies, and huge armies, bat-
generally kept the peace in the tered by total war, economic de-
nineteenth century swiftly de- pressions, governmental and busi-
teriorated in the twentieth, and ness propaganda; made apparently
we have been confronted with insignificant by his life in imper-
total war and its attendant cir- sonal cities; replaced by the ma-
cumscription of the liberty of the chine, or required to adjust to its
individual. The development of demands; baffled by the com-
the mass media of communication plexity of the operations in the
has provided means for subtle world in which he lives; manipu-
and vulgar manipulation of the lated by salesmen, advertisers,
individual — both by governments politicians, announcers, and as-
and by private concerns — unpre- sorted confidence men.
cedented in the history of man.
Standardization, rationalization, The Growth of Organizations
and mechanization are abstrac- How has he reacted or re-
tions standing for practices used sponded to these pressures and
by ever larger organizations in conditions? In the broadest terms,
the twentieth century to alter the the response can be suggested
context within which human lib- figuratively. To begin, man acts in
erty could be realized. a strange and sometimes irra-
It is to simplify, but there is tional but an almost always con-
s The “monoy trust” was a term used sistent manner when confronted
in the early twentieth century to describe by forces that are, or appear to
the dominant position of the Rockefellers Pe, beyond his control. He seeks
and Morgan of major American financial company in his fear and impo-
ported oi tg a Ee os tence, to lose himself within some
meant an established and well-defined group or in the mass of humanity,
identity and community of interest be- to submerge himself in something
tween a few leaders of finance +... your larger than himself. What man
committee... has no hesitation in assert- ’
ing fo that the condition thus described confronted by some natural phe-
cial Justice (New York: Macmillan, Self —say an oncoming storm —has
1931), pp. 46-417.) not wished for the warmth and


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

1962 CIRCUMSTANCES HOSTILE TO LIBERTY 21

companionship of the family ual liberty. Witness, for example,
circle? It is the gathering of the plight of the unorganized
friends which assuages the pangs worker as an individual pitted
of grief when some member of against the combined force of or-
the family is claimed by death. ganized men in a union. This con-
The developments we have been dition added more fuel to the fire
considering do not appear upon of demands for government media-
analysis to be natural phenomena. tion and regulation.
But they took on something of the
same sort of inevitable colora- This account is only in part
tion. It was the relative incom- valid. The story of man differs
prehensibility of the develop- from that of the story of lower
ments which made them so formi- animals. Man does not simply re-
dable to the individual. What man act to circumstances; he formu-
does not comprehend, he cannot lates theories and explanations
control, Furthermore, that which and acts upon them. He is guided
is beyond the individual's com- and directed by his interpreta-
prehension appears to be a force tions, beliefs, and assumptions. It
beyond the control of man. Giant is not my contention that the
corporations, complex mechanical course that American history took
operations, big government which was inevitable nor that it was
could be heard and felt but not simply a reaction to circum-
seen, made it appear that these stances. On the contrary, circum-
behemoths acted with a will of stances provided the favorable
their own, resisting the interfer- soil for the seeds of ideas planted
ence of a mere man. Probably by reformers of the time we have
these conditions came nearer to been considering. Conditions lent
convincing men that things were an air of plausibility to interpre-
determined outside of and beyond tations that were made of them.
their control than any subtle My point here is that there were
theory could have done. new circumstances that posed
Men reacted, then, by joining problems for traditional concepts
together in groups: labor unions, of American liberty, that these
business associations, secret so- conditions provided a backdrop
cieties, patriotic organizations, for reform efforts, and that fail-
pressure groups, farm organiza- ure to take them fully into account
tions, and cooperatives. These, in by defenders of liberty has led us
turn, became a menace to individ- into the present morass. @®


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

D. M. WESTERHOLM

Do
It
Yourself

BRAINWASHING

THE TITLE sounds a bit shocking. sionate young men of eight sum-
But the situation which inspired mers average age, an age most
it was shocking, too. No political notably prone to physical action,
rally, no public demonstration, no personal identification, and black-
wild oration was the cause. It was and-white interpretation of sup-
only a group of small boys play- posed fact- capable of compre-
ing “cowboys” in the back yard — hending the difference between
playing with all the shrieks and fact and fiction, but only in a
shouts and swaggers so tradi- broad general sense. They ask if
tional to the game. When all the this person really lived, and in
shooting was over and the gun this place; and if these answers
smoke cleared, the “good guys” are affirmative, they then accept
had won — also traditional. So, all of the legend as presented.
what's shocking? Simply this: (It had not been presented to
William “Billy the Kid” Bonnie, them that one of their heroes was
Jesse James, and Patrick Garrett a psychopathic murderer, one a
constituted the entire cadre of thief and killer, and the third a
“good guys.” These were the illus- man who trod both sides of the
trious gentlemen almost deified line, using the law to suit his own
by ten impressionable and pas- personal interests and benefits.)

Mes. Westerholm is a Registered Nurse, house- This problem was not as small
wife, ond student of liberty of Inglewood, as one might suppose on first
Illustration: Ewing Galloway glance. Here were children who

22


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

1962 DO-IT-YOURSELF BRAINWASHING 23

were forging ideas and ideals on gunfighters, with a few wartime
which they would build eventual Aces and a couple of contem-
mature philosophies and conse- porary “name singers” thrown in
quent behavior patterns. These for leavening. Television was the
were boys and girls who would primary authority quoted, and to
one day have the task of perpetu- a lesser extent motion pictures
ating our various freedoms, and and comic books. So much for the
in many instances the far harder history lessons at school and the
task of regaining lost freedom. books and stories read aloud at
Would they be apt to actively de- home. These apparently had not
fend heritages of which they had been enough, or strong enough, to
no real understanding or convic- fill the appetite for identification.
tion, and thus no real respect? We We pursued it further and dis-
doubted it seriously. covered that out of some twenty
As I handed out cookies and truly great and dramatic histori-
lemonade, I studied their eager cal names, only four were clearly
restless faces and listened — really recognized —and three of these
listened —to the words. For a were due solely to the efforts of
brief moment I had the impres- Mr. Walt Disney and his enlight-
sion that I was listening to ened and refreshing entertain-
strangers. These were not the ment! Hardly an inspiring score.
same children who came running We were not proud of ourselves as
with their skinned knees, their parents that evening.
empty stomachs, their fabulous There were no established
new ideas, and their endless ques- “study groups” for this age level
tions of “Why?” They were the to which we could turn for help
same, of course; it was only the or advice. The local elementary
listener who was different. This teachers were sympathetic and
time there were purpose and at- helpful in suggesting research ma-

tention to the listening. terials we might find useful, but
they pointed out that there was
The Essence of the Heroic only so much of the school day

That evening we guided the which could be devoted to history
after-dinner chatter to the sub- without slighting some other sub-
ject of playtime heroes and why Ject.
they were considered heroic. The We decided to deal with this
answers solidified my sense of just as we had other subjects such
shock, and shame, too. The as nature study, chemistry, ele-
“heroic” figures were almost all mentary physics: we would start


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

24 THE FREEMAN July

at home. If our youngsters could you expect-to teach anyone to re-
learn at home about atomic struc- spect and admire the basic prin-
ture, and the Dalton brothers, ciples of freedom if you deny one
why not real heroes? Why wait of the fundamentals of freedom
until the children were old enough to the one you are teaching?

to join young adult study groups, Of course, teaching the quite
for then they would have so much young child is different from
to unlearn? teaching older students. Obvi-

We had always spoken matter- ously, to give him a totally free
of-factly in our home about de- choice of acceptance at this age
mocracy, free enterprise, responsi- might well result in his learning
bility to self and nation, equality the hard way why you do not run
and initiative — but we had neg- in front of a truck, or set fire to
lected to give these concepts per- the house, or jump off the roof!
sonifications with which the chil- You have to use good plain com-
dren could identify. They had thus mon sense. Also, one must natu-
sought and found their own rally assume the responsibility of
heroes. We knew we dared not selecting material for presenta-
perpetrate any abrupt attack on tion, since Junior is not yet old
their beloved men of brawn. Chil- enough to take on his own re-
dren are fiercely loyal to their search activities, or to evaluate
chosen idols, be they contempo- the degree of truth presented. In-
rary, factual, or legendary. All we deed, this is one of the most seri-
could do was to present to them ous responsibilities of parenthood.
what we believed were even more
attractive substitutes, and let Changing Their Ideas
them choose which they would ac- What we decided on was really
cept. a quite deliberate course of

Some people have tried to tell “brainwashing.” Stop and think
us that we should simply demand for a moment of the actual mean-
that they accept what we offered ing of this hated and feared term
— “After all, they're only children, —a washing, a cleansing; not a
they should obey you.” Nonsense! removal or exchange of the ob-
First of all, you cannot demand ject ‘‘washed.” Furthermore, this
belief; it just won't work. To be- cleansing is accomplished only
lieve is to accept with your mind. with the consent of the subject —
You can command bodies to obey. a gradual cleansing away of false
You cannot command a mind to values and interpretations by the
accept. And, really now, how can regular use of the soap of truth,


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

1962 DO-IT-YOURSELF BRAINWASHING 25

and truth alone. We would give ceptive and often sharply analyti-
the Jesse Jameses a fair hearing, cal. Where many adults tend to
but no gilding of the legend; nor accept a side-point because the
would we give our candidates more main body of the topic is
than a fair hearing. This was “proved,” the child will jump glee-
our brainwashing, fully on the unsuspecting side-
For us, fortunately, the medium point; and you're off on the track
was relatively simple. We had of Indian lore, gunsmithing, early
long had story times for the chil- agriculture, animal husbandry, or
dren, so our line of communica- the gustatory attributes of squir-
tion was already established. All rel stew! If we didn’t have the an-
we had to do now was choose our swers (and blushingly often we
story material deliberately and didn’t), it was back to the books.
carefully, and be patient about re- And it was fun!
sults. The latter was as difficult as
it always is. But the former, the A Growing Study-Group
finding of the material, proved far Gradually we found our story
more difficult than we had circle growing, as other young-
imagined. Our history is richly sters in the neighborhood dropped
peopled with truly prodigious ex- in, stayed that day, and returned
amples of bravery and wisdom, the next. One day a question was
both dramatic and appealing. The asked regarding “Billy the Kid,”
problem was to find books and I took a deep breath and quietly
stories which were factual and gave as brief and factual an ac-
realistic, and still within the vo- count of his life as I could. There
cabulary and ideological limita- were no yowls of protest -— only a
tions of young children. There moment of digestive silence. The
were some, to be sure; but for the one vehement comment was,
main part we found ourselves “Man! That guy on television sure
reading several histories and oughta bone-up!” I felt like a gen-
biographies of each person, then eral who has just won a decisive
condensing the total into individ- battle. The boys accepted the truth
ual vignettes. We also tried to quite matter-of-factly, I believe,
hold as much general background because they now had new and
information in reserve as possi- steadier heroes to turn to for iden-
ble, to meet the simply amazing tification and consolation.
number of questions children fire And so it goes. We think it is
at you. showing successful results. There
Children are marvelously per- are no scientific or really reliable


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

26 THE FREEMAN July

methods to measure our progress, take up their individual places and
naturally. We have to judge by professions. What they do then is
such things as the buffalo hide- up to them. I rather think we shall
hunter replacing the “sod-buster” be proud of every one of them.
as villain; and the number of More than once I have been
bears shot in our back yard per asked if I think it is really wise
week, as opposed to the number or worth-while to spend so much
of six-gun duels; and the type of time on such a limited field when
questions asked in the story circle. there is so much community work
We did not attempt, nor expect, to that needs doing. It is certainly
achieve any radical changes by true that there is much for all of
this small project. All we hoped to us to do in many activity spheres;
do was help these young eagles to and I do not limit myself exclu-
become more aware of their na- sively to the children. True, I shall
tional heritage — to instill the re- probably never have enough time,
spect and awareness of what has or inclination, to be a “social suc-
been accomplished by some of our cess.” I also doubt that I shall
forefathers — to be knowingly ever write anything profound or
proud of their heritage. We be- nationally significant; nor be an
lieve they are. We further hope active member of any importantly
that as they grow older they will influential group or club. It does
carry on their own research and not even appear that I shall ever
inquiry, as they realize how much have enough time for as much
the past has to teach the present. serious libertarian study and re-
The only materials you need are search as I'd like. But, perhaps
a good library, a little gift of gab, my children will. I honestly be-
a love of the truth, and a large- lieve that eventually this may
sized cookie jar. Just a handful of prove more important to the na-
children — but this handful will tion, and more pleasing to God,
soon be adult citizens. They will than any other personally tempt-
one day be spreading their own re- ing endeavor might be. At least it
spective ideas and actions seems so for me. Iam grateful for
throughout the nation as they the opportunity. ®


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

THE /
DECONTAMINATION
OF PROFITS 4 at

When shadows faded in the dusk !
Beneath the drooping trees,
Old Kaspar threw the windows wide
To catch the evening breeze, pd
While Peterkin and Wilhelmine g
Looked at the television screen. EN

/
They saw the sheriff check the loads \ R /
And buckle on his gun,
Then charge along the business street /
As fast as he could run;
While shoppers turned in sudden fright
Then scuttled quickly out of sight.

“Are bandits shooting up the town?” /
Cried little Peterkin. fa
“It’s something worse than bandits, Pete,”
Said Kaspar with a grin.
“A profit-dollar, so they say,
Was hidden out in town today.”

“Why take a gun,” asked Peterkin,
“To find a dollar bill?”

“It comes in handy,” Kaspar said,
“To open up a till.

The owners often want to keep

The profit-dollars which they reap.”

“Some greedy folks,” said Kaspar then,
“Seem never to have learned
How wrong it is for them to keep
The profits they have earned.
They're not convinced that private wealth
Is bad for economic health.”

“What harm would keeping profits do?”
Asked little Wilhelmine.

“A profit-dollar,” Kaspar sighed,
“Is held to be unclean

Until it’s spent for workmen's beer

Or squandered in the public sphere.”

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

27


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

WILLIAM HENRY CHAMBERLIN

Jou |

THE MOST POPULAR modern idol is was a time when British warships
institutionalism, the belief that were rapidly being consigned to
the necessary answer to every the mothballs and the British Em-
problem is not reliance on indi- pire was shrinking much faster
vidual intelligence and initiative, than it had ever grown. One de-
but the creation of some new pendency after another was put-
agency or committee or depart- ting in its application for UN
ment, the inauguration of some membership as an independent
new form of bureaucratic overlay state. Logic would have seemed to
on human activity. Professor call for a drastic curtailment in
Parkinson has joked and others the personnel of Ministries which
have wept about what seems to were fulfilling increasingly modest
be an irresistible biological tend- tasks. But just the reverse oc-
ency of bureaucracy to grow, re- curred. The number of employees
gardless of whether it is fulfilling in the two Ministries grew almost
any function at all. in inverse proportion to the di-
One of Parkinson’s most telling minution in the number of war-
points was his analysis of what ships and colonies.
happened in the British Minis- One could find similar fulfill-
tries of Navy and Colonies after ments of what Parkinson humor-
the end of World War II. This ously christened his “Law” — that
Mr. Chamberlin is a skilled observer and re- every bureaucratic organization
porter of economic and political conditions at must grow by a percentage basis

home and abroad, He has written a number of

books, has lectured widely, and is a contributor ~~ €very year — in many countries
to The Wall Street Journal and many nation- . . .
ally known magazines. and in many periods of history. It

28


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

1962 IDOLIZING INSTITUTIONALISM 29

is a safe guess that as the Byzan- become too big and too heavily
tine Empire shrank during the staffed for their own good, fat un-
period of its decline after the wieldy organisms that would have
eleventh century the number of horrified the lean, hard-driving,
its officials did not decrease pro- pioneer industrialists who founded
portionately, that skeleton staffs them. In universities and colleges,
of administrators remained in what should be the subsidiary
being for provinces that had long business of administration and
been lost to the onrushing Turks. management has been gravely en-
After the withdrawal of the Bel- croaching on the proper function
gians, the primitive Congolese for of communicating learning and
a time abolished the grade of knowledge and wisdom to the stu-
private in their ragtag and bob- dents. A friend who had attended
tail “army,” unconsciously follow- one of the large eastern universi-
ing the example of more sophisti- ties in the thirties recently re-
cated peoples. The NATO set-up marked to me: “Don’t you find
in Europe is short on soldiers, top- that academic administration
heavy with high ranking officers. everywhere is vastly more com-
The example of Switzerland, plex, requiring more men and
where the highest peacetime rank more money, than a generation
in the very efficient Swiss citizen ago?”
army is that of Colonel, has not There are few, if any universi-
proved contagious. ties and colleges in America the
The instinctive reaction of some administrative staffs of which
politicians and commentators and have not swollen beyond recogni-
editorial writers to the problems tion since the end of World War
of America’s growing cities is not II. A European author of a book
to call for more initiative and on American higher education
self-help on the part of the inhabi- called one of his chapters “Deans
tants of these cities, but to de- Within Deans.” The Deans of Col-
mand a special agency in Wash- lege and Deans of Faculty and
ington, another link in the long Deans of Men and Deans of

chain of federal bureaucracy. Women and Deans of Freshmen
} and Deans of Admission and
Bureaucracy in Business Deans of Graduate Students and

Government is by no means the Deans of Law and Deans of En-
only offender in this matter of gineering and Deans of specialized
proliferating bureaucracy. Private subjects would make up a very
business organizations sometimes large unit in the academic army.


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

30 THE FREEMAN July

One wonders what Socrates and Brussels necessary to the realiza-
Plato and Aristotle, all fairly tion of this ideal?
effective teachers in their day, It is worth remembering that
and the wandering scholars of the Europe before World War 1
Middle Ages who pitched their gained many of the advantages
tents wherever students would that are promised from the opera-
come for instruction, would have tion of the Common Market, and
thought of this huge administra- without any international bureauc-
tive superstructure. Or, what of racy or elaborate treaties run-
that famous New England educa- ning into hundreds of articles.
tor, the legendary President of How? Simply by honoring, with
Williams College, whose ideal of negligible exceptions in the shape
teaching through simple personal of low tariff duties, three basic
contact was summed up in the freedoms: the ability of men,

phrase: goods, and capital to cross fron-
“Mark Hopkins at one end of tiers without let or hindrance.
a log and a student at the other.” America could not have de-

No doubt, the influx of students veloped the western part of the
into colleges and universities does continent so rapidly after the
call for enlargement of adminis- Civil War except for the strong
trative staff. But when this proc- arms of Scandinavian farmers
ess is carried too far, it may de- and Slav steel workers and Irish
stroy one of the finest values of and Italians who worked in con-
higher education, the fruitful con- struction jobs. The free inflow of
tact between men of high scholar- capital, mostly from Great Britain,
ship and character and students helped appreciably with the build-

eager to enlarge their horizons. ing of America’s railway network.
i These principles are just as valid
International Agencies and useful today as ever. Had it

This idolization of institutions not been for communism, had
as supposed carriers of salvation Russia remained open to foreign
has extended to other fields. That capital, its vast natural resources
the noncommunist peoples of would have been developed and its
Europe should achieve closer po- industries would have grown — but
litical, economic, and cultural unity without such inhuman accompani-
is a noble and desirable ideal. But ments as famine and forced labor.
is the cumbersome bureaucracy In short, if nations wish to ob-
at the headquarters of the Euro- serve the basic rules of a free
pean Economic Community in economy, there is no reason for


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

1962 IDOLIZING INSTITUTIONALISM 31

them to bind themselves in knots is clumsy, inefficient, and less able
of international bureaucracy. All to assume proper responsibility
they have to do is to restore, in because so many of its employees
their dealings with each other, the busy themselves preparing and
freedoms of movement that were editing ambiguous “policy papers”
generally observed in the nine- which furnish no effective guid-
teenth century, including the con- ance, or participating in endless
vertibility and relative stability of conferences that seem unlikely to

currencies. improve the fortunes of the Amer-
ican Republic. “Coordination” is
The Size of the State Department carried to ridiculous lengths; the

It probably comes as something most trivial message sometimes
of a shock to many Americans to requires the attention not only of
realize that there were only about half a dozen superfluous bureau-
60 employees of the State Depart- crats in the overgrown building
ment in Washington in 1900, as in Foggy Bottom but of represent-
against 9,995 at the last count. atives of other government de-
For some enlargement of staff partments and agencies as well.
there may be good reason; the Lenin, in the last year of his
world has grown much smaller in life, took a look at the chaos of a
terms of communication and much big inspection and audit depart-
more complex as regards some ment known as Workers’ and
fields that are now closely asso- Peasants’ Inspection, or Rabkrin
ciated with foreign policy. For the (its Russian abbreviation) and
proper protection of United States uttered a heartfelt cry: ‘Let's
interests, political and economic, have less quantity and more qual-
the State Department needs, at ity.” That is a good slogan for a
home and abroad, men who are reformer, if one ever arises, who
familiar with the ins and outs of can somehow cut the State De-
politics in Europe and Asia and partment down to manageable and
Africa and Latin America, experts workable size.
in such subjects as balance of Two examples in American his-
payments and the implications of tory indicate that we did pretty
the Common Market, specialists in well in foreign relations before
Soviet strategy and tactics. the present monstrous bureaucrat-

But, when one has stretched ic overgrowth set in. Benjamin
charitable allowance to the limit, Franklin was largely on his own,
the fact remains that the State De- without the staff of underlings and
partment is grossly overstaffed. It secretaries which even a minor de-


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

32 THE FREEMAN July

partment head would consider in- the belief that men may be made
dispensable today, when he good by organizational gimmicks,
brought off the neat diplomatic or by writing a certain type of
stroke of persuading France to legal code or constitution. The in-
enter a war against Great Britain, verse of this proposition is much
which was of little real concern to nearer to truth. Take a people
France but of life-and-death im- with the essential prerequisites
portance to the American colonies of self-government: patriotism,
that were struggling to become education, sense of common na-
the United States of America. tional purpose, willing to abide
In another great crisis during by the rules of the political game,
the Civil War when it sometimes able to win at the polls without
seemed touch-and-go whether the persecuting the losers and to lose
British government might recog- without succumbing to the im-
nize the Confederacy, the United pulse to upset the result by revolu-
States Minister in London, tion. Such a people can make al-
Charles Francis Adams, made do most any constitution work toler-
with such help as he obtained ably well.
from his later famous son Henry, A people without these prere-
from a career clerk, and from quisites would soon make a sham-
such accidental visitors from the bles and a mockery of the finest
United States as he could enlist. theoretical plan of government in
One man, entrusted with author- the world. Almost all Americans
ity and responsibility, able quickly are rightly proud of their Consti-
to grasp the essential facts of a tution, which the British states-
situation, is likely to be far more man, William E. Gladstone, de-
useful in conducting a vigorous scribed as “the most wonderful
and successful foreign policy than work ever struck off at a given
a host of departmental and inter- time by the brain and purpose of
departmental committees that kill man.” But the American Constitu-
original ideas by procrastination tion was no accidental triumph of
and dilution and reduce the clear pure theory. It was the work of
outline of policy to a vague blur some of the best minds of a so-

of compromise generalities. ciety that possessed a tradition
of orderly self-government, that
Good People Have Good Laws had been cemented by the recent

One of the oldest human delu- experience of a common struggle
sions, and a definite part of the for liberty.
idolization of institutionalism, is Just as the real test of institu-


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

1962 IDOLIZING INSTITUTIONALISM 33

tions, and their prospect of dura- Soviet system has gone this meth-
bility, depend upon the qualities od of thought control one better
of the people who live under them, by requiring that every editor of
so it is a vain illusion to imagine a newspaper be a card-carrying
that a people can remake its char- communist. Under the Czars and
acter by a revolutionary change under the Soviets alike Russia en-
of institutions. A good example joyed the distinction of being, of
of this point is furnished by the all European countries, the hard-
course of the Russian Bolshevik est for a foreigner to get into or
Revolution. At first sight here for a Russian to get out of.
was a fundamental upheaval that Many Russian peasants sup-
changed everything from top to ported the Soviets, not because
bottom, that reversed the posi- they were communists, but be-
tions of what had formerly been cause they believed communist
the upper and lower classes, that promises that they were to get
wiped out differences of rank and the land of the former estate
wealth with unprecedented thor- owners. But in 1929 and succeed-
oughness. ing years the imposition of collec-
And yet, as the new Soviet tive farming took away from the
order took shape, it became in- peasants any individual owner-
creasingly evident that in many ship of the land and reduced them
ways it was merely Old Russia in to the status of serfs, obliged to
New Masks. What change had work the land under taskmasters
taken place was mainly in the di- appointed by the government.
rection of making a rather ineffi- There was no effective habeas
cient old tyranny much more corpus in Czarist Russia; there is
thorough, logical, and consistent. no effective habeas corpus in the
Before the Revolution Russia had Soviet Union.
a Duma, or Parliament, in which
there was an opposition, but with
rigged election laws to make cer-
tain that the position of the gov- The original communist dreams
ernment could not be seriously of equality, of direct self-govern-
threatened. Now there is a Su- ment have long been abandoned.
preme Soviet, or Soviet Parlia- The Communist Party has re-
ment, in which there is no voice placed the Czarist bureaucracy; a
of opposition whatever. new ruling class has taken the
Under the Czarist system news- place of the old; inequalities of
papers might be censored. The pay and privilege are just as rigid

Changing Rulers Doesn't
Always Change the Rules


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

34 THE FREEMAN July

as they were under the old regime. of names. The oppressors and the
Behind the facade of proletarian oppressed are all Russians to-
rule the methods of fierce old gether; and the world is brought
Czars like Ivan the Terrible and once more face to face with the
Peter the Great are constantly truth of the saying that the tiger
peeping out. One is impressed by cannot change his stripes nor the
the prophetic wisdom of the Polish leopard his spots.”

novelist, Joseph Conrad, who The negative lesson of the Bol-
wrote in response to the Bolshevik shevik Revolution is the futility
Revolution: of expecting a change of hearts

“The ferocity and imbecility of and minds from a change of ex-
an autocratic rule rejecting all ternal institutions, no matter how
legality and in fact basing itself violent and sweeping. The positive
upon complete moral anarchism lesson (and this applies also to
provokes the no less imbecile and the current fetish of salvation
atrocious answer of a purely uto- through institutionalism) is that
pian revolutionism encompassing the only true revolution lies in an
destruction by the first means to inner change of hearts and minds.
hand, in the strange conviction This, incidentally, is the common
that a fundamental change of conviction of all the world’s great
hearts must follow the downfall religious and moral teachers,
of any given human institutions. whose target is always the indi-
These people are unable to see that vidual, never the institutions un-
all they can effect is a mere change der which the individual lives. &

THERE ONCE lived a king in a dis-
tant land —a just and wise old
king, for he had observed and
learned much about his people and
about himself and his power. His

Mr. Love is a businessman and Associate
Editor of the Fort Worth, Texas Rotary
\ . . lub’s Rotagraph, where this article first ap-
LEWIS LOVE peared, March 16, 1962.


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

1962 A KING OF LONG AGO 35

people were free to go their way, gar who was lame: “Your power
and were fearful of the king and is very great, our king, and you
his soldiers, for his rule granted can make the people see the folly
no privilege to one that was not of their ways and aid us in our
a privilege to all equally. And they troubles.”

were free to petition their king “Perhaps,” said the king, ‘“per-
and seek his wisdom in their haps my power is great, but I
affairs. must use it wisely or it shall be

Thus there came one day to the lost.” And he called to the captain
royal court an artisan, a mason, of his guard.
and a beggar who was lame. “Bring forth three swords,” he
“O great and wise king,” they commanded, “one for each of these
cried, “we are sorely troubled with men, and instruct them in their
our plight.” “I,” said the artisan, use. These three shall go forth in
“make many useful goods. I use the land and compel those who will
great skill and labor long, and yet not voluntarily deal with them to
when I am finished, the people will obey their command.”
not pay my price.” “No! no!” the three men called
“And 1,” said the mason, “am a out, “this we did not ask. We are
layer of stone for houses and fine men of honor and could not set
walls, yet I am idle, for no one upon our fellow man to compel
gives me work.” him to our will. This we cannot
“I am a poor lame beggar,” said do. It is you, O king, who must
the third man, “who seeks alms use the power.”
from those who pass, as they find “You ask me to do that which
it in their hearts to do so, but you would not do because of
alms are so few as to be of great honor?” questioned the king. “Is
concern lest I perish.” honor one thing to a beggar and
“I can see that your trouble is another to a king? I, too, am an
great,” consoled the king, ‘“and honorable man, and that which is
what would you ask of me?” dishonorable for you will never
Then, they spoke as a group, the be less dishonorable for your
artisan, the mason, and the beg- king.” @®


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

RUTH SHALLCROSS MAYNARD

“WHO SHOULD conserve our re- properly serve the public interest;

sources?” If a poll were taken, a (3) that government has access
large majority probably would to more funds;
answer: “Our federal and state (4) that government has the

governments.” And if one were to power and facilities to obtain all
ask why this view is so widely the necessary data and to do the
held, he would find among other research needed for the best “sci-

“reasons” the following: entific’ decisions on resource con-
(1) that the free market is servation;
chaotic, gives profits to the few, (5) that the price system does

and is unmindful of the great not operate in the interests of
“waste” of our diminishing conservation because of the “unre-
limited resources; strained pursuit of self-interest”;

(2) that ‘“people’s rights” are (6) that the concentration of
above “private or special inter- power in some corporations fur-
ests” and only the government can ther threatens our dwindling re-
Dr. Maynard is Assistant Professor of Eco- Sources and must be regulated by

nomics, Lake Erie College, Painesville, Ohio. .
Illustration: A. Devaney, Inc., New York gover nment.

36


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

1962 WHO CONSERVES OUR RESOURCES? 37

Refuting the ‘’Reasons’’ (8a) The government has no
These “reasons,” of course, do funds that have not been taken
not indicate how a government from the people by force, whereas
agency would go about attempt- many a large private undertaking
ing a solution to the conservation has come forth from voluntarily
problem — this is always just as- contributed funds. In fact, the en-
sumed — but consider them briefly: tire industrial development in this
country has been a continuous ex-
(1a) The free market is any- ample of this voluntary way of
thing but chaotic. Competing nat- creating the facilities for produc-
ural market forces reflect in tion by giving the consumer what
prices the wishes of both buyers he wants at the price he is willing
and sellers — millions of individu- to pay in competition.
als, separately accountable and re-
sponsible for their own actions in (4a) Offhand it would seem
their own field of economic ac- that a government might have ac-
tivity. All persons seek their own cess to more data about scarce re-
advantage when allowed a choice, sources than would a private en-
but in the free market a producer terpriser. But government can-
cannot profit unless he pleases not bring forth the detailed in-
consumers better than his com- formation so vital to sound deci-
petitor does. Since he must think sion. The kind of detailed knowl-
of efficiency and lowered costs in edge needed simply isn’t “given to
order to survive, it is false to as- anyone in its totality,” as Hayek
sume that he alone profits from has pointed out.! “Knowledge of
the use of natural resources from the circumstances of which we
which are made. the products must make use never exists in
wanted by consumers. All gain concentrated or integrated form,”
who use the resulting products. he states, “but solely as dispersed
bits of incomplete and frequently
(2a) Can there be “people’s contradictory knowledge which all
rights” superior to the rights of the separate individuals possess.”
individuals? All individuals have Yet, producers need such informa-
special and private interests and tion before they can decide how
rights. Therefore, the “people” to act. The chief communicator of
cannot have rights except individ- —m——
ually; and the right to life car- _ ! F. A. Hayek, “The Use of Knowledge
ries with it the right to maintain in Society,” The American Economic Re-

: ; . view, Vol. XXXV, No. 4, September
it by private and special means. 1945.


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

38 THE FREEMAN July

this knowledge is free price move- interests of conservation by seek-
ments. If the price of a given re- ing a substitute for the high-
source continues upward, this tells priced scarce material. Competi-
producers all they need to know tive prices allocate scarce re-
about its increasing scarcity and sources to those who will pay more
signals them to conserve it, to use (not those who have more, as is al-
it sparingly and for the most val- leged) for the right to try to serve
uable products. Advocates of gov- consumersefficiently and profitably.
ernment planning never seem to
grasp how this works, for they (6a) If concentration of power
are constantly tampering with in corporations is too great to be
market forces, distorting the deli- permitted, what about the ulti-
cate price signals that could mate concentration of power in a
otherwise guide them. Thus, gov- government institution beyond the
ernment planners must rely on regulation of market forces? Gov-
using general data obtained by ernment is unaccountable in the
crude polling methods which are sense that it is not obliged to
unreliable for action in specific please consumers in order to stay
economic areas and are out of in business. If it does not show a
date before they can be collected, profit, its losses can be covered by
analyzed, and summarized. More- tax money. Big corporations can
over, such studies cannot tell the behave in monopolistic fashion
government controller as much as only if they enjoy government
free price movements tell indi- privileges of some kind. Potential
viduals acting in a particular competition, substitution, and
market as buyers or sellers. elasticity of demand force them to
keep prices close to the competi-
(ba) The role that prices play tive level.2
in the free economy is so little
understood that many people be- When Government Controls
lieve government must set prices The foregoing arguments, how-
lest they reflect only the “selfish ever, do not touch upon the basic
interests” of the producers. The problem involved in the conserva-
price system not only tells pro- tion of resources. Let us assume
ducers and consumers when scar- that Congress passes a conserva-
city of a product exists (prices tion law setting up “The Federal
rise) or when it has become more Bureau of Conservation.” Tax
plentiful (prices drop); it also: gang Sennholz, “The Phantom Called
supplies the incentive to act in the Monopoly,” THE FREEMAN, March 1960.


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

1962 WHO CONSERVES OUR RESOURCES? 39

money must then be appropriated Difficult Decisions
for this Bureau. The director, But for whom would the di-
a political appointee, must find a rector be stockpiling? Would he
building and hire a staff large sacrifice the present generation to
enough to justify his salary. To future ones? And, if so, which
investigate and collect data on ones? The next generation, the
what is being done is a time- and one after that, those living a hun-
tax-consuming job. dred years from now, or whom?
Turning the conservation prob- And how could he possibly know
lems over to an agency with po- what those generations would
lice power does not mean solution, want or need? Moreover, he would
however. It only means that the have the problem of what quan-
director has been given the au- tities to stockpile and what
thority to find a solution and to grades (best or worst) to save.
force it on those individuals who Would some items have alterna-
are in the market for natural re- tive uses? Would he plan for pos-
sources. This does not assure the sible added or new uses in the
public that the director has any future? These questions never
special grant of wisdom concern- seem to be asked by the authors
ing the problems involved, or that of books and articles on conserva-
he will even know what they are. tion, whose specialty is to con-
This appointment would lead him demn private enterprise.
to assume that individual enter- Stockpiling only aggravates the
prisers were not doing their jobs very scarcity given as the reason
well. He would undoubtedly define for stockpiling. The more scarce
his task as one of finding what a stockpiled item, the higher the
individual enterprisers are doing price, and the more complaints to
wrong and stopping it. Such in- be heard from the users. Where-
terference could only prevent pri- upon, the director probably would
vate individuals from utilizing seek power to fix prices lower
their creativity and energy in than market levels. This, of
seeking a solution to both imme- course, could only lead to in-
diate and long-run conservation creased demand and pressure on °
problems. Having stopped this prices, leading to black markets
flow of creative endeavor, he or government rationing, or both.
would need to find a “positive” so- Allocation by rationing would pre-
lution — such as stockpiling by sent the problem of whom to fa-
force certain quantities of those vor and whom to slight. His au-
materials deemed most scarce. thority to discriminate would sub-


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

40 THE FREEMAN July

ject the director to strong politi- sonably priced alternatives in
cal pressures. If not by political times of scarcity. When prices are
favoritism, the director could se- fixed below market levels by the
lect by personal preference, or government director, this discour-
first come, first favored. Any sys- ages conservation and gives a false
tem is discriminatory. The system signal as to the degree of scarcity
of government planning implies all the way from the natural re-
arbitrary discrimination by one source level to the final consumer.
man with police power who de-
cides who shall get what. With- Private Enterprisers Conserve
out personal favoritism, the free What Is Worth Saving
market “discriminates” against Until someone discovers that a
those who would waste scarce ma- resource has a specific use, it has
terials — it lets their businesses no value for which it should be
fail — and “discriminates” for conserved. Alexander the Great
those who would most efficiently had no use for the reservoir of oil
use the resource to serve con- beneath his domain. The under-
sumers — their profit depends on developed countries do not lack
their capacity to conserve the resources. But they have not yet
scarce resource. found the key (personal saving
The government system is and competitive private enter-
based on arbitrary decisions of prise) by which to utilize the re-
man over man, with strong prob- sources to meet the people's
ability of political influence; the needs. Private enterprisers are
free market system is influenced constantly trying to find new ma-
by nonpolitical and nonpersonal terials and new uses for known
forces. There is no other alterna- resources, always looking ahead
tive. The first system leads to to see which ones will be available
static conditions which cannot and how efficiently they can be
meet the changing needs and de- utilized. Pick up any trade journal
sires of consumers, the “people” and note the articles on how to
most involved and presumably cut costs, utilize waste materials,
those whom a conservation agency be more efficient. Because the
ought to protect. The business government told them to? No. The
way encourages search for substi- hope of profits acts as a powerful
tutes when price rises indicate compulsion to be efficient, to im-
growing scarcity. This not only prove, to conserve. The following
aids conservation but also affords examples show how private enter-
the consuming public more rea- prisers eliminate waste and uti-


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

1962 WHO CONSERVES OUR RESOURCES? 41

lize natural resources to meet the industries, uses have been found
needs of the consuming public. for virtually all of a tree, in-

Until natural gas was known to cluding the bark, branches, and
be useful as a fuel, petroleum pro- sawdust which were formerly
ducers burned it to get rid of it. ‘“wasted.” The “waste” lignin,
Until ways were found of storing after removal of the carbohy-
and transporting gas with safety, drates, has been the concern of
it had only local use. Competition many a pulp company as well as
forced the search for further uses scientists at The Institute of
and wider markets, and profits re- Paper Chemistry, who have yet to
warded those who best served con- find a use that will meet ade-
sumers. As ways were found to quately the competitive market
handle -gas beyond local markets, test of consumer choice.

consumers elsewhere gained a With the increasing scarcity of
wider choice of fuel, and other pure water, the pulp and paper in-
fuels were thereby conserved. dustry has used less and less of

it per ton of product. When wood
Reliance on Hindsight became scarce in Wisconsin, the

Accusations of waste in private ‘“Trees-for-Tomorrow’ program
industry are always based on hind- was instigated, encouraging farm-
sight. Any statistics of inadequate ers to grow trees as an added cash
use of natural resources are his- crop. As salt cake from Saskatche-
tory. When a new method or new wan grew scarce, the Southern
use is discovered, it is easy to kraft-pulp mills learned how to re-
point out past waste and misuse. claim it and cut the amount
The assumption is that industrial- needed per ton of pulp by two-
ists are wasteful if they haven’t thirds or more. Could such a con-
seen in advance all possible uses servation measure have been
for all materials. forced by government decree? It

The meat-packing industry over is most doubtful.
the last century has used all but In the agricultural field are
the squeal of the pig. But this did many illustrations of continuous
not come all at once. Nor did or improvement: of tools (the his-
could it have come from govern- tory of the plow alone would
ment decrees. It came slowly make an impressive volume); of
through individual efforts to cut methods of utilizing land, fer-
costs and increase profits in com- tilizers, insecticides, and seeds; of
petition with others. knowledge of genetics, hydropon-

In the lumber and pulp-paper ics, and radioactive materials.


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

42 THE FREEMAN July

All of these have played a vital who, if free, are each highly moti-
part in getting better farm prod- vated to release it in trying to im-
ucts to the people with fewer man- prove their status. Thus, force
hours and at less cost, These all only inhibits the real sources of
conserve time. improvement.

Time also is a resource. Con- Because individuals have been
serving time can save lives from free to find the best use of land
starvation, give relief from back- resources, the American farmer
breaking jobs, enable individuals today feeds himself and at least
to further achieve their respective 25 others. In our early history
purposes. Improved tools have won food production was the principal
time for more leisure, for increas- occupation, and in some countries
ing recreational, cultural, educa- today as high as 90 per cent of

tional, and religious activities. the population still spends long
» hours of backbreaking work farm-
Individual Improvement ing for a bare subsistence.

Improvement of the well-being

of individuals, rather than con- Who Is Responsible for Waste?

servation, is the chief goal in the The real waste in resources
utilization of resources. Absolute comes from government policies.
conservation could lead to the ab- It is seen especially in wartime,
surdity of not utilizing our re- but more and more in peacetime
sources at all, and thus conserving programs. The government farm
to no purpose —no freedom and program has encouraged waste of
no improvement of our lives. J. S. land, seeds, fertilizers, labor, and
Mill has expressed it thus: “The capital by subsidizing the produc-
only unfailing and permanent tion of surpluses to be stored in
source of improvement is liberty, bins that dot the countryside. The
since by it there are as many pos- foreign aid program has wasted
sible independent centers of im- various resources, sending them
provement as there are individ- to countries where little if any
uals.” The energy of the police use has been or could be made of
force of a government agency them. Waste occurs in such proj-
must by its very nature be nega- ects as the TVA that floods per-
tive. Enterprisers are positive, manently many fertile acres which
constantly trying to solve spe- formerly provided millions of dol-
cific problems. It is impossible to lars worth of food products and
force the release of the creative which the Army Engineers have
energy of millions of individuals estimated would not be flooded by


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

1962 WHO CONSERVES OUR RESOURCES? 43

the natural forces of the Tennes- arbitrarily, nor is he motivated

see River in 500 years, to correct his mistakes even when
Rising taxes also promote waste. recognized.
The corporate income tax of 52 Natural resources are best util-

per cent of earnings, for example, ized and conserved where they
encourages industrialists to en- meet specific economic require-
gage in questionable and wasteful ments in the most efficient way as
projects which appear justified determined by competition in the
only when purchased with a 48- free market. Government control
cent dollar. This is not in the in- of natural resources reduces the
terests of conservation. freedom of choice of producers in

However, the errors individuals using these materials and this
make and their waste of resources affects adversely the freedom of
are small and inconsequential choice of consumers who buy the
compared with those made by gov- final products made from them.
ernment agents in controlling a There is no effective method of
major supply of a scarce resource. determining the economic require-
Those in civil service positions ments of the people when the free
are rarely dismissed or otherwise market is not allowed to reflect
held accountable for their errors. them, nor can force solve the
A private individual stands to problem of conservation. It is a
lose personally if he wastes re- false panacea that is centuries
sources in his field of economic old, advocated by those who de-
activity, and has a built-in moti- sire power over others whom they
vation for attempting to correct neither trust nor respect. Con-
his mistakes as soon as they are servation will take place in the
reflected in rising costs or de- best sense where individuals are
creasing demand. A government allowed to seek solutions to their
agent, however, risks no personal own personal problems as they
loss when he misuses resources, he arise. Necessity is the mother not
cannot recognize mistakes by ris- only of invention but of conserva-
ing costs when prices are fixed tion as well. @®

IDEAS ON LIBERTY Ben Moreell

WE CONSERVE NATURAL RESOURCES by using them in the most

efficient and economic manner. ... If a given project cannot pass
the test of economics, that is a sure sign that it is not conservation
but waste.

Our Nation's Water Resources—Policies and Politics


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

THE MORAL ELEMENT

: free Enterprise

F. A. HAYEK

ECONOMIC ACTIVITY provides the general relations between freedom
material means for all our ends. and morals.
At the same time, most of our in- By freedom in this connection I
dividual efforts are directed to mean, in the great Anglo-Saxon
providing means for the ends of tradition, independence of the ar-
others in order that they, in turn, bitrary will of another. This is
may provide us with the means for the classical conception of free-
our ends. It is only because we are dom under the law, a state of
free in the choice of our means affairs in which a man may be
that we are also free in the choice coerced only where coercion is re-
of our ends. quired by the general rules of law,
Economic freedom is thus an in- equally applicable to all, and never
dispensable condition of all other by the discretionary decision of
freedom, and free enterprise both administrative authority.
a necessary condition and a con- The relationship between this
sequence of personal freedom. In freedom and moral values is mu-
discussing The Moral Element in tual and complex. I shall therefore
Free Enterprise I shall therefore have to confine myself to bringing
not confine myself to the problems out the salient points in some-
of economic life but consider the thing like telegraphic style.
Dr. Hayek is Professor of Social and Moral It is, on the one hand, an old
Science at the University of Chicago and discovery that morals and moral
author of many books, including the 1944 values will grow only in an en-

classic, The Road to Serfdom, and The Con-

stitution of Liberty (1960). This article is re- vironment of freedom and that

printed by permission from a symposium on . 4 ’
he Spiritual and Moral Significance of Free in general, moral standards of

Enterprise sponsored by the National Associa- .

tion of Manufacturers, December 6, 1961. people and classes are high only

44


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

1962 THE MORAL ELEMENT IN FREE ENTERPRISE 45

where they have long enjoyed it is a matter of choice and not of
freedom—and proportional to the coercion. It is in the order in
amount of freedom they have pos- which we rank our different ends
sessed. It is also an old insight that our moral sense manifests it-
that a free society will work well self; and in applying the general
only where free action is guided rules of morals to particular situ-
by strong moral beliefs, and, ations each individual is con-
therefore, that we shall enjoy all stantly called upon to interpret
the benefits of freedom only where and apply the general principles
freedom is already well estab- and in doing so to create particu-
lished. To this I want to add that lar values.

freedom, if it is to work well, re- I have no time here for showing
quires not only strong moral how this has in fact brought it
standards but moral standards of about that free societies not only
a particular kind, and that it is have generally been law-abiding
possible in a free society for societies, but also in modern times
moral standards to grow up which, have been the source of all the
if they become general, will de- great humanitarian movements
stroy freedom and with it the aiming at active help to the weak,

basis of all moral values. the ill, and the oppressed. Unfree
societies, on the other hand, have
Forgotten Truths as regularly developed a disre-

Before 1 turn to this point, spect for the law, a callous atti-
which is not generally understood, tude to suffering, and even sym-
I must briefly elaborate upon the pathy for the malefactor.
two old truths which ought to be I must turn to the other side of
familiar but which are often for- the medal. It should also be ob-
gotten. That freedom is the matrix vious that the results of freedom
required for the growth of moral must depend on the values which
values—indeed not merely one free individuals pursue. It would
value among many but the source be impossible to assert that a free
of all values—is almost self-evi- society will always and necessarily
dent. It is only where the individ- develop values of which we would
ual has choice, and its inherent re- approve, or even, as we shall see,
sponsibility, that he has occasion that it will maintain values which
to affirm existing values, to con- are compatible with the preserva-
tribute to their further growth, tion of freedom. All that we can
and to earn moral merit. Obedi- say is that the values we hold are
ence has moral value only where the product of freedom, that in


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

46 THE FREEMAN July

particular the Christian values or persuasion, “there is nothing
had to assert themselves through for them but implicit obedience
men who successfully resisted to an Akbar or Charlemagne, if
coercion by government, and that they are so fortunate as to find
it is to the desire to be able to one.” Here I believe T. B. Ma-
follow one’s own moral convictions caulay expressed the much greater
that we owe the modern safe- wisdom of an older tradition when
guards of individual freedom. Per- he wrote that “many politicians of
haps we can add to this that only our time are in the habit of laying
societies which hold moral values it down as a self-evident proposi-
essentially similar to our own have tion that no people are to be free
survived as free societies, while till they are fit to use their free-
in others freedom has perished. dom. The maxim is worthy of the
All this provides strong argu- fool in the old story, who resolved
ment why it is most important not to go into the water till he had
that a free society be based on learned to swim. If men are to
strong moral convictions and why wait for liberty till they become
if we want to preserve freedom wise and good, they may indeed
and morals, we should do all in our wait forever.”
power to spread the appropriate
moral convictions. But what I am Moral Considerations
mainly concerned with is the error But I must now turn from what
that men must first be good be- is merely the reaffirmation of old
fore they can be granted freedom. wisdom to more critical issues. I
It is true that a free society have said that liberty, to work
lacking a moral foundation would well, requires not merely the ex-
be a very unpleasant society in istence of strong moral convictions
which to live. But it would even but also the acceptance of particu-
80 be better than a society which lar moral views. By this I do not
is unfree and immoral; and it at mean that within limits utilitarian
least offers the hope of a gradual considerations will contribute to
emergence of moral convictions alter moral views on particular is-
which an unfree society prevents. sues. Nor do I mean that, as Edwin
On this point I am afraid I Cannan expressed it, “of the two
strongly disagree with John principles, Equity and Economy,
Stuart Mill, who maintained that Equity is ultimately the weaker...
until men have attained the ca- the judgment of mankind about
pacity of being guided to their what is equitable is liable to
own improvement by conviction change, and... one of the forces


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

1962 THE MORAL ELEMENT IN FREE ENTERPRISE 47

that causes it to change is man- dividual responsibility has been
kind’s discovery from time to time strong. They have allowed indi-
that what was supposed to be viduals to act on their knowledge
quite just and equitable in some and beliefs and have treated the
particular matter has become, or results achieved as due to them.
perhapsalways was, uneconomical.” The aim was to make it worth-
This is also true and important, while for people to act rationally
though it may not be a commenda- and reasonably and to persuade
tion to all people. I am concerned them that what they would achieve
rather with some more general depended chiefly on them. This last
conceptions which seem to me an belief is undoubtedly not entirely
essential condition of a free soci- correct, but it certainly had a
ety and without which it cannot wonderful effect in developing both
survive. The two crucial ones seem initiative and circumspection.
to me the belief in individual re- By a curious confusion it has
sponsibility and the approval as come to be thought that this be-
just of an arrangement by which lief in individual responsibility
material rewards are made to cor- has been refuted by growing in-
respond to the value which a per- sight into the manner in which
son’s particular services have to events generally, and human ac-
his fellows; not to the esteem in tions in particular, are determined
which he is held as a whole person by certain classes of causes. It is

for his moral merit. probably true that we have gained
increasing understanding of the
Responsible Individuals kinds of circumstances which af-

I must be brief on the first point fect human action — but no more.
— which I find very difficult. Mod- We can certainly not say that a
ern developments here are part of particular conscious act of any
the story of the destruction of man is the necessary result of par-
moral value by scientific error ticular circumstances that we can
which has recently been my chief specify — leaving out his peculiar
concern — and what a scholar hap- individuality built up by the whole
pens to be working on at the mo- of his history. Of our generic
ment tends to appear to him as knowledge as to how human action
the most important subject in the can be influenced we make use in
world. But I shall try to say what assessing praise and blame — which
belongs here in a very few words. we do for the purpose of making

Free societies have always been people behave in a desirable fash-
societies in which the belief in in- ion. It is on this limited determin-


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

48 THE FREEMAN July

ism — as much as our knowledge in society that the esteem in which a
fact justifies — that the belief in person is held by his fellows de-
responsibility is based, while only pends on how far he lives up to
a belief in some metaphysical self the demand for moral law, it is
which stands outside the chain of also essential that material re-
cause and effect could justify the ward should not be determined by
contention that it is useless to hold the opinion of his fellows of his
the individual responsible for his moral merits but by the value

actions. which they attach to the particu-
lar services he renders them. This
The Pressure of Opinion brings me to my second chief

Yet, crude as is the fallacy un- point: the conception of social jus-
derlying the opposite and sup- tice which must prevail if a free
posedly scientific view, it has had society is to be preserved. This is
the most profound effect in de- the point on which the defenders
stroying the chief device which of a free society and the advo-
society has developed to assure de- cates of a collectivist system are
cent conduct — the pressure of chiefly divided. And on this point,
opinion making people observe the while the advocates of the socialist
rules of the game. And it has conception of distributive justice
ended in that Myth of Mental Ill- are usually very outspoken, the
ness which a distinguished psychi- upholders of freedom are unneces-
atrist, Dr. T. S. Szasz, has recently sarily shy about stating bluntly
justly castigated in a book so ti- the implications of their ideal.
tled. We have probably not yet dis-
covered the best way of teaching Why Liberty?
people to live according to rules The simple facts are these: We
which make life in society for want the individual to have liber-
them and their fellows not too un- ty because only if he can decide
pleasant. But in our present state what to do can he also use all his
of knowledge I am sure that we unique combination of informa-
shall never build up a successful tion, skills, and capacities which
free society without that pressure nobody else can fully appreciate.
of praise and blame which treats To enable the individual to fulfill
the individual as responsible for his potential we must also allow
his conduct and also makes him him to act on his own estimates of
bear the consequences of even in- the various chances and probabili-
nocent error. ties. Since we do not know what

But if it is essential for a free he knows, we cannot decide


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

1962 THE MORAL ELEMENT IN FREE ENTERPRISE 49

whether his decisions were justi- terial reward is not dependent on
fied; nor can we know whether whether the majority of our fel-
his success or failure was due to lows like or esteem us personally.
his efforts and foresight, or to This means that, so long as we
good luck. In other words, we keep within the accepted rules,
must look at results, not inten- moral pressure can be brought on
tions or motives, and can allow us only through the esteem of
him to act on his own knowledge those whom we ourselves respect
only if we also allow him to keep and not through the allocation of
what his fellows are willing to material reward by a social au-
pay him for his services, irres- thority. It is of the essence of a
pective of whether we think this free society that we should be ma-
reward appropriate to the moral terially rewarded not for doing
merit he has earned or the esteem what others order us to do, but
in which we hold him as a person. for giving them what they want.
Such remuneration, in accord- Our conduct ought certainly to be
ance with the value of a man’s guided by our desire for their
services, inevitably is often very esteem. But we are free because
different from what we think of the success of our daily efforts
his moral merit. This, I believe, is does not depend on whether par-
the chief source of the dissatis- ticular people like us, or our prin-
faction with a free enterprise sys- ciples, or our religion, or our
tem and of the clamor for ‘dis- * manners, and because we can de-
tributive justice.” It is neither cide whether the material reward
honest nor effective to deny that others are prepared to pay for our
there is such a discrepancy be- services makes it worth while for
tween the moral merit and esteem us to render them. :
which a person may earn by his We seldom know whether a bril-
actions and, on the other hand, liant idea which a man suddenly
the value of the services for which conceives, and which may greatly
we pay him. We place ourselves in benefit his fellows, is the result of
an entirely false position if we years of effort and preparatory in-
try to gloss over this fact or to vestment, or whether it is a sud-
disguise it. Nor have we any need den inspiration induced by an ac-

to do so. cidental combination of knowledge
and circumstance. But we do know
Material Rewards that, where in a given instance it

It seems to me one of the great has been the former, it would not
merits of a free society that ma- have been worth while to take the


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

50 THE FREEMAN July

risk if the discoverer were not al- the value which a man’s services
lowed to reap the benefit. And have to his fellows and the esteem
since we do not know how to dis- he deserves for his moral merit —
tinguish one case from the other, may well make a free enterprise
we must also allow a man to get society materialistic. But the way
the gain when his good fortune is to prevent this is certainly not to

a matter of luck. place the control of all material
means under a single direction, to
The Moral Merit of a Person make the distribution of material

I do not wish to deny, I rather goods the chief concern of all com-
wish to emphasize, that in our so- mon effort, and thus to get poli-
ciety personal esteem and mate- tics and economics inextricably
rial success are much too closely mixed.
bound together, We ought to be
much more aware that if we re- Many Bases for Judging
gard a man as entitled to a high It is at least possible for a free
material reward that in itself enterprise society to be in this re-
does not necessarily entitle him spect a pluralistic society which
to high esteem. And, though we knows no single order of rank but
are often confused on this point, has many different principles on
it does not mean that this con- which esteem is based; where
fusion is a necessary result of the worldly success is neither the
free enterprise system — or that in only evidence nor regarded as cer-
general the free enterprise sys- tain proof of individual merit. It
tem is more materialistic than may well be true that periods of a
other social orders. Indeed, and very rapid increase of wealth, in
this brings me to the last point I which many enjoy the benefits of
want to make, it seems to me in wealth for the first time, tend to
many respects considerably less produce for a time a predominant
80. concern with material improve-

In fact free enterprise has de- ment. Until the recent European
veloped the only kind of society upsurge many members of the
which, while it provides us with more comfortable classes there
ample material means, if that is used to decry as materialistic the
what we mainly want, still leaves economically more active periods
the individual free to choose be- to which they owed the material
tween material and nonmaterial comfort which had made it easy
reward. The confusion of which for them to devote themselves to
I have been speaking — between other things.


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

1962 THE MORAL ELEMENT IN FREE ENTERPRISE 51

Cultural Progress Follows self choose to make a material
Periods of great cultural and sacrifice for a nonmaterial end
artistic creativity have generally that he deserves credit. The de-
followed, rather than coincided sire to be relieved of the choice,
with, the periods of the most and of any need for personal sac-
rapid increase in wealth. To my rifice, certainly does not seem to
mind this shows mot that a free me particularly idealistic.
society must be dominated by ma- I must say that I find the at-
terial concerns but rather that mosphere of the advanced Welfare
with freedom it is the moral at- State in every sense more ma-
mosphere in the widest sense, the terialistic than that of a free en-
values which people hold, which terprise society. If the latter gives
will determine the chief direction individuals much more scope to
of their activities. Individuals as serve their fellows by the pursuit
well as communities, when they of purely materialistic aims, it
feel that other things have be- also gives them the opportunity
come more important than ma- to pursue any other aim they re-
terial advance, can turn to them. gard as more important. One
It is certainly not by the en- must remember, however, that the
deavor to make material reward pure idealism of an aim is ques-
correspond to all merit, but only tionable whenever the material
by frankly recognizing that there means necessary for its fulfill
are other and often more impor- ment have been created by others.
tant goals than material success,
that we can guard ourselves Means and Ends
against becoming too material- In conclusion I want for a mo-
istic. ment to return to the point from
Surely it is unjust to blame a which I started. When we defend
system as more materialistic be- the free enterprise system we
cause it leaves it to the individual must always remember that it
to decide whether he prefers ma- deals only with means. What we
terial gain to other kinds of ex- make of our freedom is up to us.
cellence, instead of having this de- We must not confuse efficiency in
cided for him. There is indeed providing means with the pur-
little merit in being idealistic if poses which they serve. A society
the provision of the material which has no other standard than
means required for these ideal- efficiency will indeed waste that
istic aims is left to somebody else. efficiency. If men are to be free to
It is only where a person can him- use their talents to provide us


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

52 THE FREEMAN July

with the means we want, we must portance of the ends which men
remunerate them in accordance ultimately serve, It is the glory of
with the value these means have the free enterprise system that it
to us. Nevertheless, we ought to makes it at least possible that
esteem them only in accordance each individual, while serving his
with the use they make of the fellows, can do so for his own
means at their disposal. ends. But the system is itself only

Let us encourage usefulness to a means, and its infinite possibili-
one’s fellows by all means, but let ties must be used in the service
us not confuse it with the im- of ends which exist apart. @®

HOWARD PRESTON

OF ALL THE LOST CAUSES I think tician will explain gleefully to his
none is recalled more often than constituents how he has saved
the unsuccessful attempt to do them money. The new bridge or
away with the expression “at gov- highway or municipal building or
ernment expense” or “paid for by what have you will not, says the
federal funds’ and similar politician, cost his beloved tax-
phrases. payers anything but a simple fee.
Scarcely a day passes but what “The big expense,” he tells the
the newspapers report on some audience, “will be taken care of
project which the ‘government by federal funds.”
will pay for.” Quite often a poli- Now, except for their own con-
————r tribution through personal tax,
Mr. Preston is an editorial writer for The Plain politicians don’t spend their own

Dealer (Cleveland) in the April 11, 1961 edi- .
tion of which this column first appeared. money. When the President or the


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

1962 TAXPAYERS’ MONEY 53

Congress approved a gift or a to “taxpayers’ money.” Instead
loan of millions or billions of dol- of accepting a statement that the
lars, inside the country or outside, United States government is
the money being spent doesn’t be- spending $500,000,000 for devel-
long to them. It isn’t President opment of a river in South Amer-
Kennedy's money that’s being ica, I think the American Society
spent, any more than it was of Newspaper Editors ought to
President Eisenhower’s money or agree to print such an item as
President Truman's money or follows: “The taxpayers of the
George Marshall's money under United States today sent, etc. ...”
the Marshall Plan, Instead of telling how the fed-
The money is taxpayers’ money; eral government is paying for
it is your money and mine, and some new building in Catchall,
for a long time I have scorched Kansas, through generous loans at
with a slow burn when the loot is low rates, the item ought to read,
referred to as government money. “The taxpaying citizens of 50
The implication is when there is states today chipped in $43,000,000
a joint financing of some project, so that the people in Catchall
any part contributed by the fed- could have a new downtown devel-
eral government is ‘found’ opment.”
money. As long as “federal funds” In the first place, I think the
are used, nobody has to pay. people who come up with the
It seems to me it is about time scratch, not the gents who spend
somebody put to use the known it, should get proper credit. In the
facts of financial life, the most second place, drumming home the
prominent being that there are no point, day after day, that there
such things as federal funds in are no “federal” funds but only
the sense the government owns taxpaying citizens’ contributions
money. The government doesn’t might cause more people to zipper
earn a dime unless you include up the national purse strings. At
some of the unintentional profits least, it might get recognition
it makes from its intrusion into abroad for the hard-working folks
business. who make it possible for our
Because of this, I have sug- agents to play Santa Claus.
gested more than once that the Federal funds? Nuts. That's
phrase “federal funds” be changed our dough. @®


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

EMERSON once remarked that if a
man made a better mousetrap the
world would beat a path to his
door, but he neglected to mention
what some of the folks would do
when they got there. It is to be
expected that the Amalgamated
FRE ED OM Mice of America would mouse-cott
’ the new arrangement, nor can one
help sympathiz-
ing with those
who may be hurt
PRODUCTIVITY, inthe short ru
by the march of
and progress. But
more than likely,
PROGRESS fe Emerson
Better Mousetrap Company would
come in for a lot of opposition
from others with less obvious rea-
sons for objecting to the innova-
tion. Unfortunately, it seems that
ever since our stone age grand-
parents thought of moving out
EDWARD P. COLESON of the cave, anyone who upset
the status quo by trying to do
things a bit more efficiently has
been suspect. Doubtless that is
why human history is largely the
story of poverty and stagnation.
We often fail to realize how
hard it was to get the machine
age in motion and how hostile
forces threatened to swallow the
fresh new ideas which sparked
this revolution before it got
started. Progress is not inevitable
—_—— or automatic, Picture James Watt
A a Nisan conomics at Spring a4) roling to build a steam en-

A

54


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

1962 FREEDOM, PRODUCTIVITY, AND PROGRESS 55

gine without the tools and equip- We may imagine that the “‘sur-
ment we take for granted. The plus” problem is modern, a tragic
modern industrialist, used to deal- consequence of the phenomenal
ing in thousandths of an inch, productivity of the machine, now
may begin to appreciate the prob- being automated to further com-
lems of these pioneers when he pound the difficulty. But man-
notes the satisfaction expressed kind’s neurotic fear of abundance
by Watt's partner when they suc- (pleniphobia, if one may coin a
ceeded in boring a fifty-inch cyl- term) is deep-seated and was old
inder that “does not err the thick- when Englishmen first discovered
ness of an old shilling in any that a mechanical device could
part.” Try using a thin dime as a spin several threads in place of
precision gauge, or imagine a one. It is hard for us to see how
“fit” that sloppy. they could have imagined that
But that was not the greatest their little was too much; but they
hurdle. Years before, when Watt so believed, and responded by rig-
wanted to set up his workshop in ging the market just as we do.
Glasgow, he was not permitted to The result was to render the
do so because the local tradesmen ‘times” —or as we would say, the
thought there were already more economy — “out of joint.” Eventu-
than enough such establishments. ally, we may see that our malad-
Watt got his chance only because justments grow out of the same
the University took him as their regulations and controls which
instrument maker. Later, when they belatedly realized were caus-
factories were developing in Eng- ing rather than curing their dif-
land to make use of the new power ficulties.
and equipment, mobs of workers The sudden burst of produc-
swept down upon the mills and tivity, coming nearly two centur-
destroyed them. The new tech- ies ago to a world with a chronic
nique, incredibly crude by our and psychopathic fear of abun-
standards, might produce too dance, generated a bitterness
much and drive the price of cloth against the machine which per-
below the starvation level for the sists even today. Generations of
weavers who still plied their trade soft-hearted people, refusing to
by hand. Their fears were justi- look beyond the obvious for the
fied: they couldn’t compete with true significance of the industrial
the Frankenstein monster which revolution, are perpetuating a
spewed abundance and threatened misunderstanding that need not
their jobs. have developed in the first place.


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

56 THE FREEMAN July

For the simple truth is that plenty they were in 1800 — cutting and
is desirable. Everyone wants more threshing grain by hand.
for himself and only seeks to limit
output for others because he be- Pre-Industrial Society
lieves he will get more if they It might help our thinking if
have less —an immoral, selfish, we could back up a few centuries
and short-sighted policy which is to compare the “before-and-after”
self-defeating and only leads to of industrialization. Practically,
economic and political chaos. we can do almost as well by going
We try to dress our ancient to a primitive village in some
practices in modern garb and im- backward.area of the world where
agine they are necessitated by the people still farm with a hoc and
stupendous productivity of the craftsmen still ply their ancient
machine. A recent textbook tells trades by hand. Having had this
the student that two men with a experience a few years ago, I as-
combine can cut and thresh as sure you that the glamour of “go-
much wheat in a day as 125 labor- ing native,” the simple and un-
ers could do by hand, or a ratio of spoiled life, fades as quickly as
62% to 1 in our favor. This over- the morning haze under the rays
looks the fact that combines are of the tropical sun. Our neighbor
produced, not by rubbing magic was a weaver who spent day after
lamps, but by a long line of men day on his veranda weaving a
and machines, which reduces the narrow web of crude cloth on his
net ratio considerably. Dr. Wil- primitive loom supported by three
liam H. Peterson of New York sticks. “How quaint,” you say, but
University thinks we were per- that is only part of the story. The
haps six times as productive in poor native was a man of years,
1960 as in 1800, rather than 62'2 malnourished and unkempt, and
times as implied in that other fig- his craft had fallen on evil days.
ure. If people today want a dozen Competition from cheap, imported
times as much as their ancestors textiles — made with high-priced
did in 1800, there should be no labor — was driving the old man
problem; and we know that hu- out of business and he was too
man wants are insatiable — we feel old to change. Women in America
we must have a multitude of may think that dry goods are too
things they never dreamed of hav- expensive; everything we ever
ing. But, if we devise all sorts of buy always costs too much and,
fantastic schemes to reduce out- for some perverse reason, every-
put we'll be right back where thing we have to sell brings too


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

1962 FREEDOM, PRODUCTIVITY, AND PROGRESS 57

little. Although our weaver Everyone Is Poor
earned only a pittance, his cloth The real problem is that every-
was relatively expensive by our one is poor. And a strong con-
standards and fantastically so for tributing factor must be that no
his neighbors. Nor was the rea- one really owns anything; it be-
son obscure: he simply produced longs to the group, the extended
so little. family. If one urges a native
A further tragedy in such lands farmer to grow more to tide his
is that staple foods are not cheap family over the “hungry season,”
either, although some items may he will point out the futility of it.
be. A balanced and sufficient diet If he had a modest surplus when
is a luxury few can afford. the relatives ran out of food, they
Throughout the backward areas would all visit him until it was
of the world obesity is associated exhausted. So, why not loaf with
in the native mind with wealth, the neighbors now and go hungry
since no one else can afford to with them later? Togetherness,
eat that much. For weeks or even with a vengeance!
months of the year, after the seed Another factor may further ex-
is planted and before the new plain the general backwardness
crop 1s harvested, the chronic and stagnation. The natives suffer
shortage becomes acute—the from the familiar socialist de-
“Hungry Season” in native par- lusion that one cannot prosper ex-
lance. It is impossible to produce cept at the expense of others. So,
an abundance of food on sterile, if anyone in the village seems to
eroded hillsides with a short- be getting ahead, the word is
handled hoe. whispered around that he pos-
Their poverty cannot be attrib- sesses a charm, “boa medicine,”
uted entirely to crude tools and which promotes his interest but
primitive techniques. Nor is this harms his neighbors. Assorted
one of those horrible examples of tragedies and misfortunes in the
exploitation with an absentee village will build resentment until
landlord behind the scenes taking the charmed one is finally hauled
all the profits. It is scarcely worth before the local chief. He will then
considering whether things were be prosecuted and persecuted un-
divided properly in the village til he is reduced to the lowest
where I lived, since redistributing common denominator of native
would not make much difference; existence, to the same level of
a man’s fair share of the little want and misery with .everyone
wouldn’t be very much. else in the village.


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

58 THE FREEMAN July

The Source of Abundance last century — that the English

It is hard for us to imagine laborer had anything like an ade-
how little their little can be. A quate diet. Famines used to be as
traveler in a primitive region common in Western Europe as
came upon a family bowed down they still are in underdeveloped

with grief because they had lost = areas today.
not a child or mother — just a
lowly needle! In colonial America But, why continue? We can tell

they are said to have burned the story of modern progress in
houses to recover the nails. Nails terms of more adequate food,
were even used as money until shelter, clothing, and even luxur-
Jacob Perkins invented a machine ies for the average man and his
in 1795 that would make 60,000 family. Or, we can continue to
of them a week. (Imagine the “in- grieve over the industrially “dis-
flation”’!) After that, they sold placed persons” — the nailmakers,
nails by the keg, not by the dozen. pinmakers, shoemakers, and hoe
Ordinary pins once cost twenty and sickle farmers that the new
cents each (when twenty cents machines released for more pro-
was a fair start on a day’s wage) ductive opportunities. I recall see-
and were given as gifts —until a ing an old livery stable operator
man broke the pin market with a sitting by his door waiting for the
machine that would turn out two customers that no longer came.
million a week. Wearing fitted Perhaps the automobile should
shoes was once the exclusive privi- have been abolished! His competi-
lege of monarchs and the very tor down the street spent his
wealthy. Ordinary folks wore spare time tinkering with a “tin
clodhoppers which fit very slop- lizzie,” and as the horse and
pily; fitting a pair of tailor-made buggy faded out, he converted his
shoes was like having a portrait stable to a garage. Perhaps a
painted. A bushel of wheat cost dirge for old dobbin is appropri-
an English laborer the equivalent ate, but why not look at the posi-
of five days’ pay in 1770. It was tive side for a while? Progress
not until John Deere’s plow broke means growing pains, but growth
the prairies, and McCormick’s betokens life, health, and new
reaper speeded the harvest — plus conveniences and comforts for
a lot of other inventions in the millions. Let progress reign! @


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

A REVIEWER'S NOTEBOOK JOHN CHAMBERLAIN

HINDSIGHT ON THE
LIBERTY LEAGUE

FOR PEOPLE who are concerned the Liberty League high com-
with the difficulties of operating mand, rich men for the most part,
—or even formally maintaining — were ‘the wrong people . . . es-
a republic in a time when practi- pousing the wrong philosophy at
cally everybody has ceased to be- the wrong time.” What he should
lieve in the concepts of natural have said is that it is fatal to be
law and inalienable rights, George both rich and right at a time when
Wolfskill’s The Revolt of the Con- a popular majority has been
servatives: A History of the weaned away from the basic con-
American Liberty League 1934- stitutive idea of a republic, which
1940 (Houghton Mifflin, 303 is that all men, whether rich or
pages, $5.00) provides an amaz- poor, are entitled to equal protec-
ing, instructive casebook. But its tion in inalienable rights deriving
meaning goes deeper than any- not from the state but from their
thing that is provided by the Creator.
author’s rather shallow moraliz- To operate a republic on the op-
ing. posite theory, that rights are the
Dr. Wolfskill, a first-rate re- transient and entirely relativistic
searcher who writes a clean, crisp dispensations agreed upon by 51
prose, knows that he is telling the per cent of the voters, is a long-
story of a great practical failure. run impossibility, for the major-
The Liberty League spent thou- ity, cut loose from moral anchors,
sands of dollars and thousands of Will progressively eat up the
hours in the effort to defeat spiritual and material capital on
Franklin D. Roosevelt in 1936, yet Which society and the state itself
succeeded nowhere save in Maine depend for their continuity. But
and Vermont, which might have 1936 was not a propitious year for
gone for Roosevelt’s opponent, long-term considerations.
Alfred M. Landon, anyway. From Having entered the basic objec-
this Dr. Wolfskill concludes that tion to Dr. Wolfskill’s approach,

59


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

60 THE FREEMAN July

we may concede that the Liberty that the New Deal would do little
League completed the ruin of its more than institutionalize the de-
chances for good works by making pression. (It was World War II
a long succession of tactical that solved Roosevelt's unemploy-
blunders. The Liberty Leaguers ment problem, not such gadgetry
were not the “wrong” people; they as the PWA and the NRA.) But
had as much right to protection they did not reckon with the emo-
in their lives, liberties, and prop- tional forces that had been un-
erty as anybody else. But they loosed between 1929 and 1933.
were wrong in their approach to They thought that an elementary
politics, for what they did not see appeal to logic could be “sold,”
is that tides cannot be changed by provided the logic were backed
blowing upon the surface of the with sufficient cash to disseminate
waters. Dr. Wolfskill is quite cor- it in carload lots to the literate in
rect in saying that the “League every corner of the land.

failed because it represented eco- In their feeling that they could
nomic and political conservatism “save the Constitution” by spend-
at a time when both were out of ing money for the broadcasting of
style.” In such a time one cannot principles, the Liberty Leaguers
hope to win by narrow concen- drew sustenance from their pre-
tration on an election; the only vious success with the Association
practical thing to do is to dig in Against the Prohibition Amend-
for a long campaign to change the ment. Jouett Shouse, the able at-
mind-set of the majority, which torney who led the AAPA in its
involves something deeper than final campaign for repeal of the

getting out the vote. Volstead law, argued that the
Eighteenth Amendment was “mis-
Emotional Forces Overlooked placed in the federal Constitu-

The Liberty League did not tion.” It was, essentially, a “police
reckon with the interaction be- statute” which usurped a right of
tween breadlines (even the sophis- surveillance of sumptuary habits
ticated breadlines of the WPA) that belonged to the local com-
and the very human attribute of munities and states. In its battle
envy. The rich men who set up for a particular constitutional
the Liberty League, a group which principle the AAPA had succeeded
included several Du Ponts as well by broadcasting —and John J.
as important industrialists, like Raskob, the Du Ponts, and others
Alfred P. Sloan and E. T. Weir, who had paid most of the bills for
were quite sensible in their fears the AAPA, did not see why the


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

1962 HINDSIGHT ON THE LIBERTY LEAGUE 61

appeal to logic shouldn’t work in terly befogged by 1933, and if any
fighting such “unconstitutional” real regeneration were to be
things as the AAA, the TVA, the effected, it would have to begin
Potato Control Act, and the Guf- far back of politics. There were,
fey-Snyder Bituminous Coal Con- for example, the schools. Franklin

servation legislation, D. Roosevelt had been taught to
disbelieve in Say’s Law of Mar-
"Rights" Had Become Suspect kets at Harvard University in the

It was one thing, however, to early nineteen hundreds — and
lead the workingman to a glass from a disbelief in the efficacy of
of good beer and quite another to the market it was easy to jump
restore a belief in such things as to the conclusion that economic
States’ Rights and the sanctity of contract was in itself an anachro-
economic contract in a day when nism. The attempt to preach the
the very idea of “rights” had be- sanctity of market principles to
come suspect. The trouble went the New Dealers, or to the voters
much deeper than anything of an whom they represented, in the
immediately specific nature that heat of the political campaign of
had been thought up by the New 1936 was equivalent to poulticing
Deal to combat the depression. a cancer.

What the Liberty Leaguers did Moreover, the Liberty Leaguers
not seem to know was that the had no conception of the role
battle for constitutional principle played by symbolic fitness in polit-
had been lost far earlier in the ical combat. They let Al Smith,
century. For one thing, the amend- the man of the brown derby and
ment which had legalized the the sidewalks of New York, lead
“progressive” income tax in 1913 off their 1936 campaign by mak-
had effectively “nationalized” in- ing a speech to a crowd of million-
comes: what a man could keep of aires at an expensive dinner in
his paycheck was a matter of fed- Washington. Al Smith should have
eral permissiveness, not of indi- ‘taken a walk” out of the Roose-
vidual right. By 1933 few people velt Party in an entirely different
really believed that a man had setting, say by crying out to a
clear title to what he produced, group of working men in Madison
and the depression merely pro- Square Garden that it was John
vided a practical reason to redis- Doe’s dollar that was being de-
tribute the wealth more arbitrar- valuated as well as John D. Rocke-
ily. The whole idea of constitu- feller’s, and that John D. Rocke-
tional “principle” had become ut- feller could still afford to buy beer


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

62 THE FREEMAN July

after the devaluation where John deal about the nature of the crisis
Doe couldn’t. But Al Smith, out that confronts the republic. They
of anger toward Roosevelt, forgot have learned that the New Deal
his old political adroitness, and was an effect, not a cause; that
let himself be maneuvered into the task of saving the individual
seeming a spokesman for the rich. from chronic manipulation by
As William Allen White put it, statists is a matter of re-creating
the Du Ponts had become “black a philosophical fabric even more
beasts in the popular imagina- than it is a matter of electing
tion” merely because they had ‘‘good” men to office. They have
money. Al Smith should have learned that politicians are
steered clear of sceming to speak agents, not prime movers, and
for the “black beasts” when he that if the mind-set of the coun-
was really speaking for anybody try is first taken care of, the poli-
and everybody who still had a ticians will do as they are told.
nickel to preserve. Because they have been willing

The relevance of symbolism to to undertake the task of patient
politics dawned on the Liberty education, conservatives and liber-
Leaguers after the Roosevelt tarians have been winning at least
1936 landslide. Thus, when Roose- a few political victories in recent
velt proposed his Court Packing years. They will win even more
plan in early 1937, Jouett Shouse when the generation that is now
bestirred himself to keep the Lib- in its twenties has had time to
erty League out of the forefront mature. @®
of the fight against it. The politi-

“ » . IOCHEMICAL INDIVIDUAL-
cal “pros” am the R | »B
D among epublicans ITY by Roger J. Williams (New

chuckled to themselves when Bur- York: John Wiley & Sons, Inc.,
ton Wheeler, a Democrat, helped $6.50)
lead the onslaught on the Court Reviewed by James L. Doenges
Pack plan in the Senate. When the MD. ’ gos
plan had been defeated, the Lib-
erty Leaguers could claim a vic- KEGALITARIANS have for decades
tory for their constitutional espoused an impossible cause. The
“teachings.” But they had, finally, more erudite of their number
to admit that you don’t sell “teach- knew, and occasionally admitted,
ings” the way you sell “motor oil that some men are “more equal”
and razor blades.” than others! The facts of individ-
Since 1936 conservatives and ual variation are fully demon-
libertarians have learned a great strated in this book by the Pro-


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

1962 OTHER BOOKS 63

fessor of Chemistry and Director mass medication, and mass every-
of the Biochemical Institute of thing else, swamp the individual

the University of Texas. person who, after all, is our main
Modern egalitarians have two concern.
choices. They may ignore Dr. This book is easy to read, self-

Williams’ Biochemical Individual- evident in its analysis, but an es-
ity (which most of them will have sential for a more complete under-
to do), or challenge and attack standing of the entire picture by
some “windmills” of their own those who are not, and do not care
construction in an attempt to con- to be, “equal.” @®
fuse the issue and draw attention
from the obvious, yet well-demon- py ppepr 1 117LE CHILDREN
strated facts which Dr. Williams . .
. (Reflections on American Educa-

presents. These are facts which 4; yy Max Rafferty (The Devin-
every biologist, scientist, anthro- Adair Company, New York, 1962.
pologist, geneticist, doctor of 166 pp. $3)
medicine, and every observant
citizen knows almost as “second
nature.” People are not equal —
except in their human-ness. Each THIS INCISIVE, hard-hitting vol-
person is an individual, different ume might well be subtitled: “A
from every other person. School Administrator Speaks His

Every human being is a deviate Mind.” Max Rafferty, a school su-
in some respects, and this fact is perintendent in California, is a
of immense significance for the master of the King’s English, and
life sciences: medicine, dentistry, has produced a unique book. It
nutrition, and others. Individuals goes to the very heart of the edu-
exhibit important anatomical dif- cational problem and propounds
ferences; they vary in body chem- sane, workable solutions.
istry; their nutritional patterns Among other things, Rafferty
are not the same; they differ in discusses the decline of educa-
their tolerance to various drugs, tional standards, the stress on
in endocrine activity, in excretion “methods” rather than “subject
pattern. matter” in teachers’ colleges, the

The point driven home by Wil- cultural mediocrity of many teach-
liams’ book is that men cannot be ers, the lack of discipline in the
dealt with en masse, and we schools, the concentration on
should give up trying to do so. “projects” and “field trips” in-
Mass legislation, mass education, stead of solid instruction, and the

Reviewed by Rev. August W. Bru-
stat


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

64 THE FREEMAN July

generalized report cards which Newsletter. Several years ago he
tell little, if anything, about a founded Nathaniel Branden Insti-
child’s academic competence and tute, Inc., which offers lecture
accomplishments. courses on Objectivism (the name
The author criticizes the uni- Miss Rand has given to her phil-
versities for spawning a philoso- osophy) in New York and in other
phy which “denies eternal veri- cities across the country. The un-
ties, glorifies the immediately use- dertaking has been highly suc-
ful, and decries learning for the cessful, and there can be no ques-
sake of learning... . The mating tion but that Ayn Rand, both as
of permissive progressivism and philosopher and novelist, has
soulless Behaviorism,” he writes, stirred up considerable enthusi-
“has produced a monster.” asm among young intellectuals,
This is a volume that ought to Who Is Ayn Rand? is an analy-
stir up a lot of discussion among sis of the novels of Objectivism’s
teachers, school officials and founder from the standpoint of
boards, and parents. If this hap- philosophy, psychology, and liter-
pens, education may yet revive! ary method. The title essay of the
book, contributed by Barbara
(Mrs. Nathaniel) Branden, deals
primarily with Miss Rand’s artis-
tic and intellectual development.
Ayn Rand’s chief target is the
morality of altruism. The cardinal
AYN RAND’S uncompromising ad- principles of her ethics are: the
vocacy of reason, self-interest, and supremacy of reason; man’s right
individualism has won her an to exist for his own sake, neither
enormous following. Her novels, sacrificing himself to others nor
The Fountainhead and Atlas others to himself; and the princi-
Shrugged, have sold over two and ble that no man or group of men
a half million copies. It would be has the right to seek values from
hard to name a modern writer Others by the use of physical
who has stimulated such violent force.
controversy — such intense ad- Conservatives owe it to them-
miration or such intense hostility. selves—and to their cause—to
Nathaniel Branden is a psychol- consider what it is that Ayn Rand
ogist and close associate of Ayn is offering people, and what is the
Rand; he is co-editor with her of nature of her appeal. They will
the newly founded Objectivist find answers in this book. @®

p WHO IS AYN RAND? by Na-
thaniel Branden. (New York:
Random House, 239 pp. $3.95)

Reviewed by Francesca Knight


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

A MANUAL FOR BELIEVERS IN FREEDOM —

eLEMENTS OF
LUBERTARIAN
LEADERSHIP

By LEONARD E. READ

CONTENTS
1. Faith and Freedom 8. The Methods of Leadership
2. Consistency Requires a 9. The Manners of Leadership

Premise |
3. Booby Traps 10. Aids to Leadership

4. Why Do We Lose Liberty? 11. Three Levels of Leadership

5. Emergence of a Leadership 12. Can Busy People Become
6. Humility and Leadership Libertarian Leaders?

I. Integrity and Leadership 13. Liberated

— — ——— — — — — A SE We——— — — — — — — — ——

PUBLISHED MARCH 1962 BY: | THE FOUNDATION FOR ECONOMIC EDUCATION, INC.
THE FOUNDATION FOR | IRVINGTON-ON-KUDSON, NEW YORK
PI d ELEMENTS OF LIBERTARIAN LEADERSHIP.
ECONOMIC EDUCATION, INC. | oc send me ELEMENTS OF
copies paper @ $2.00
IRVINGTON-ON-HUDSON, N. Y. copies cloth@ $3.00
| {J Check enclosed [J Please bill me

183 pages | name

$2.00 paper; $3.00 cloth | srreer
Quantity Discounts

CITY AND ZONE

| STATE



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

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