New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-28
Dean Small of University OF
Chicago Blames Over
head Charges.
ON NATIONAL
DEBT DOUBLE AMOUNT
Americans Paying for Dinners OF
Long Ago and for Others
Generations Hence.

MINNEAPOLIS. Dec 1.-THE oVerheau
cl.rges of the capitalistic system are the
cause of the increased cost of living ac-
cording 10 the address to-day oil Lean.
Albion w. Small Of the University OIL
Chicago, to the twenty-sixth annual meet
iry of the American Economic Associa-
tion. Dean Small is president OF the
American Sociological Society, mee'ihs
with the Economic Association.
our inquiry into the central problems
OF our time will amount 10 nothins'
said Dean Small, until the leaders Oh
our thought and action consent 10
policy of candid and thorough inquiry as
| 70 whether there is something radically
mistaken in the cspitalistic system Itself
Nov. when we are paying for to-days
dinner we arc paying also for dinners
served and paid for long ago, and we are
also paying instruments on other dinners
! that will be served generations hence
Yet We marvel at the growing size or
the bill
we are still paying interest on ah'-
| 900 of national debt incurred before
| 1866 Interest payments already nave
| edualled the original loans twice over.
Through continuance OF the annual In
| torest payments, which do not reduce the
principal. we are now discharging these
| loans a third time. Americans for the
next fifty years will be paying interest
! for portions Of the Panama Canal, ana
! at that time will have repaid the original
| borrowings but the principal and interest
still will be just as much due az II no
payments had been made.
improvements Of railroad terminals
completed or projected I'm various cities
are bonded for 100000. The interest
will be permanent charge upon the
earnings. 1t will press down upon wages
and lft demands for higher rates. our
industries will repay these loans over and
over again to the children and tho chill
dren's children OF the original lenders
Dean Small pointed out what he de-
scribed as functional fallacies that radi-
caly ignore social efficiency"
The falacy OF treating capital as II II
were an active agent and Of crediting in
| come 10 the personal representative OF
capital. irrespective OF their actual SER
vices.
The fallacy OF incorporating the fall
| lacious capitaistic principle, thus pro-
noting the legal person TO Immortality.
The fallacy Of system OF inheritance,
which assigns the powers and privileges
/ OF incorporated capital to sentimentally
/ designated individuals. This creates
/ hereditary economic sovereignty. which
must eventually become more intolerable
THAN the hereditary political sovereignties
overthrown by revolution
David Kinley, president OF the Ameri-
! can Economic Association. at a joint ses-
sion with the American Sociological AS
sociaton tonight said.
! we need to look very closely at the
! tendency toward the extension OF the au-
| thority OF the government into the details
| OF our economic life. The principle OF
competition. the system OF economic lib
! eralism. has been too valuable TO the
progress OF mankind 10 be given up alto
gether. For competition has been de.
veloping force, even If il has failed some
what as a controlling one The motive
power OF action is OF more importance
4, In the long run than the regulation OF
| action