The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-04-18
Liberal Viewpoint
by DIR. HARRY ELMER BARNES

by DIR. HARRY ELMER BARNES
THOSE who wish to combat the contention of
Il Messrs. Rand, Writ and others that a con-
trolled capitalism inevitably must lead to disas-
ter and misery would do well to circulate the
admirable John Day pamphlet by Marquis w.
Childs entitled "Sweden-Where Capitalism Is
Controlled"
DR.. Writ contends that America must lose'
if it attempts to control our economic life. But
the Scandinavian countries certainly have not
lost by such policy.
If we want to know what uncontrolled capt.
talism produces, let us turn our eyes back to
March 3, 1888. Compare this with the situa-
ton which is described by Mr. Childs in the
Scandinavian countries that stand midway be-
tween rugged individualism and the communism
of Russia.
BY concentrating attention upon the welfare
OF the masses and the interests OF the consumer,
the governments have made the standard of
living in Denmark and Sweden the highest
which exists anywhere in Europe. This is so, in
spite of the fact that both countries have
relatively small population, and nothing like the
rich natural resources of many other countries
in which famine now stalks
Mr.. Childs assigns three main reasons for
such a remarkable achievement: Cd the state
has participated in industry in active and
intelligent fashion; % the cooperative move
ment is highly developed, and consumers have
acted to protect their interests; and Cd
enlightened social education has been consist
emily carried on over long period-in other
words, Sweden has exploited that public propa-
ganda which so alarms Dr. Writ.
Let us look at the policies and achievements
of Sweden in the industrial field
In the first place, there is a rational and
deliberate control Of the foreign market in the
effort to make the greatest profit here and to
spare the Swedish consumer SO far as possible.
TN 1923, the public investments in Swedish
4 industry amounted to S613 ASP 900 and the
state realized a net profit of more than per
cent on this investment, a most remarkable
achievement for a country with only six million
inhabitants scattered over a mountainous and
forest covered area.
Among the industrial and commercial ac-
Invites of the Swedish state are the operation of
one-third of the mines of the country; the man
agement of telegraph and telephone lines; the
generation of "a per cent of the power used in
the country and extensive profits through the
| control Of the liquor and tobacco trade.
The activities Of Sweden in the power and
liquor industries should be especially illumnat-
ing to progressive Americans Sweden made
little effort to regulate the power industry but
went directly into competition with private COM
panies. The result was the speedy elimination
of the weak and inefficient companies and the
their unjustly high rates
IN 1882, Sweden made profit of 1888, 900 out
Il OF its power industry, in spite of construct
ing many lines in backward areas where loss
was inevitable. 1t could afford to be guided by
the desire to serve its people.
In the liquor industry, Sweden operates
under the famous Bratt system according to
which the state controls the manufacture and
sale of liquor but passes on the responsibilities
corporation. Under this scheme Sweden re-
ceives over half of the total amount spent for
liquor by Swedish citizens yet the private cor
poraton makes good profit.
The monetary policy of Sweden also is very
| interesting and relevant For more than two
years Sweden successfully has operated her
monetary system on the basis of real man
| aged and commodity dollar.
Supplementing this highly enlightened and
efficient intervention of the government in bust
ness and trade is a strong development of the
cooperative movement. Co-operativeS own and
| operate at least 10 per cent Of Swedish industry
Consumers co-operatives are also very well de-
veloped. There are $40 consumers stores in
! Stockholm alone.
The co-operatives have broken the power of
three of the greatest trusts in Sweden when
they believed they were gouging the public
| the margarine, flour milling and electric light
bulb trusts.
Not only has Sweden raised the living
standards of its people far above that of indi-
vidualistic countries but it has also withstood
the shock of the depression far better than any
other European state.
! Apparently intelligent control of economic
| life is not so ruinous after ALL