Evening star., 1905-11-07
LEANING ON GOVERNMENT.
Growth of the Doctrine of Federal In
tervention in Industry.

From the New York Journal of Commerce.
The action of the American Bankers As
ISOLATION with reference to ship subsidies Is
noteworthy from a good many standpoint
Perhaps the most remarkau.e thing about
1t, however. is the sway in which a body of
representative business men from all parts
Of the country have readily given their aid
and support to a plan which tends still
further to entangle the government with
commercial affairs. and to Increase the de-
pendence of business upon administrative
action.
our theory Of government has never been
consciously paternalistic. but within the past
Few years we have been rapidly drifting
into a national attitude which. II continued.
would commit us to the doctrine of state
interference In industry in the most un-
quahhed way. How far we have gone in
TINS direction is probably not understood
by most of those who advocate a fprtber
extension OF state functions, bat II Is well
70 pause occasionally and take account of
What has actually been done in promising
.ne interference of government in indus-
trial concerns.
1t is undoubtedly true that our tariff mol
Icy has contributed more than any other
one thing to the growth of business de-
pehoence upon governmental aid. yet It is
very far from standing alone as an exam-
PIE OF H. "A Few years ago we emba rked
upon an irrigation project which is wear
py year. increasing in complexity and in
voIvins the outlay of more and more MIL
mons OF dollars. Dissatisfaction has grown
up IN some places with what Is termed the
partlaiity OF the government in it's selec-
tion OF irrigation projects, and In some
states business seems to have become in
very large degree dependent upon the car
rying out of such works. The influence OF
the present treasury policy upon business is
also very notable. Secretary Shaw's recent
exposition Of the rela ton OF the govern
ment to the banks leaves no doubt that it
Is MS theory tnat wise Secretary will SO
manage affairs to relieve stringency In
the market or stiffen up the interest rate
when money seems to be too plentiful by
calling for government deposits in national
banks. The effect of this attitude is per-
fectly manifest. 1t has tended to reduce
interest in currency improvement, to lead
bankers to look hopefully to the govern
ment whenever they get into difficulty, and
in general to make them dependent upon
administrative support. Similar tendencies
may be -diseerned in the work or our De-
partment or Agriculture. which has strong
ly professed its mission of protecting the
farmer against the speculator.' So far has
this attitude been effective in developing
public opinion that strong organizations are
now looking to the government with the ap-
parent idea that it is it's duty to do what
Is possible to maintain the prices Of spec
ulative crops.
We are just upon the verge of a great
struggle having numerous rami1cations, but
whose central problem is extension of gov
ernment relations to inoustry. 1t is pro-
posed to enlarge the protective system by
adding ship subsidy feature, and indeed
this plan is defended largely on the ground
that the protective scheme should be round
ed out by some addition OF this sort 1t Is
proposed to increase the extent of gov
ernment control over railroads by enlarging
the powers of the interstate commerce COM
mission and by bestowing the authority to
fix rates. 1t is suggested that the gov
ernment take over new line of work by
assuming charge of insurance examina-
tions and legislation. There are other ways,
too, IN which the extension of administrative
activity is being urged and with apparent
prospects OF success.