The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-04-19
GOVERNMENT IN BUSINESS.

against trusts picking out their evils actual and al
legged, and using these in steady appeal to prejudice
and passion but without suggesting either expe-
dent or a radical remedy In this the Examiner was
true to its incubation with the theory and prac-
tice of Populism which lead to an attack upon all
existing conditions and the threat to destroy them,
but without proposing anything better take their
place The plain mind, reasoning from premises that
are within the common horizon and common expe-
rence, comes finally to reject any policy that is
merely destructive, and Populism has been taken
up, examined, occasions tried in various States
and is finally rejected Not meeting with expected
success in its programme OF mere destruction, the
Examiner has at last reached constructive propo-
ston which it exploits under the of Public
Ownership Through Public Thrift
The terms are unscentifc and misleading but this
is the chronic defect with those who argue for acute
changes from unscientifc standpoint Public
thrift in its common acceptation, mean the general
thrift arising in individual effort and industry What
is meant by the Examiner is properly expressed in
Government ownership by Government thrift
The Examiner really understands it in this way,
for in its editorial Endorsement of the plan it
only the word Government instead OF Public"
It's plan is for the Government, by taxation Of the
people to secure surplus OF $780, ooo invest it
in productive property and reinves the profits in like
property The statement OF the plan is somewhat
vague, but it is mathematically reduced to the
clusion that the primary investment is to be only
SIoOOooOoo, and the profit is to be per cent COM
pounded With this start it is automatically demon
strated that in years the Government will be in
possession OF $Io84o5,8568oo But the plan does
end with this investment by the Federal Govern
ment States, counties and cities to go into the
same business. New York and Chicago are to in
vest $Io,oooooo each, and in years to have
. -O-C
treats wealth and population equivalents the city
population OF the country, investing in proportion
to New York and Chicago, will own at the end of
100 years twice as much as the Federal Government,
or $2I69oI7I3,78o. The counties and States follow,
and by the same standard and rate of investment will
be the owners in the same period OF a equal to
that in possession of the Federal Government
Therefore the grand total OF wealth owned by the
United States at the end of century OF Government
ownership by Government thrift will be $433o83,-
AZ ,56o-four hundred and thrty-three billion nine
hundred and eghty-three million four hundred and
tweny-seven thousand FIVE hundred and sixty dollars
AS we have said, the Examiners statement of the
plan is vague for it says editorially that at the
rate OF $Iooooo,ooo year, while its mathematical
demonstration is confined to one investment OF
$Ioo,ooo,ooo.
The whole idea is a fantasy based primarily upon
nature unstable For instance the interest rate is
non-fxabe, and the rate OF profit is still
changeable and has declined evenly than in
The allacy OF these mathematical speculations
ic shown in the Thurman act, which dealt with very
similar policy and issue. 1t suspended the payment
OF interest by the Pacific railways their debt to
the Government and substituted therefor sinking
fund payable OF surplus earnings. The operation
OF this act to limited term Of years, but
before the time had hall expired Senator Thurman
himself confessed its failure because he had based
his mathematical calculations upon the rate for
freight and passenger business charged at the time
he framed the bill. Upon that basis the sinking fund
invested at fixed per cent would meet the principal
and interest OF the debt maturity But Tor causes
beyond Government control the freight and passen-
ger rates declined rapidly that the plan COM
plete failure
Now but one thing is needed to show the falacy
Of the Examiner idea and reduce it to an unnterest-
ing speculation. The total wealth OF the United
States, the entire value OF all property, IS put by
Muhall in round numbers, at $50 600 100000. II all
this wealth to steadily per cent com
pounded in 100 years it would equal $4o38 3o5 10000
-four trion thrty-eight billion three hundred
and nnety-fve million four hundred and eighty
thousand nine hundred and ninety nine dolars-a
sum of course inconceivable and impossible
Ihe additions TO wealth, IN the strict care and at
tention given it in private hands, continually
offset by shrnkages, relocatons and loss, that no
prudence can avoid that the gain in any century
is held far below 4 per cent.
But the Examiner plan includes not only Govern
ment investment but Government thrift 1t con
ceives the necessity for the Government to be rich
hold in its ownership, indeed, the entire wealth of
the country.
Thrift is not possible function OF government on
our scheme. Strong monarchica and bureaucratic
governments may seize the trade in inoxicants and
narcotics the business OF carrying freight and
passengers, and get profit out OF them the public
expense by high charges, for it is the fact that on
European railways in Government ownership the cost
Of travel and transportation is far higher than here
while the wages paid to trainmen far lower If
the countries quoted by the Examiner paid Ameri-
railroad wages and charged American rates. the
lack of Government thrift would appear in return
OF far less than per cent, and in cases deficit