Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-03-03

unsatisfactory. Government regula-
ton is inherently unscientific and in
efficient. frequently corrupt. Free
competition adjusts production and
price to the needs Of society. But
regulation Of monopoly has no guide
but cost Of production, and cost varies
with output. Regulation must substi-
tute for the automatic control by
competition clumsy and arbitrary
guesSWork decisions as to production,
prices and service.
The alternative to private owner
ship under regulation is government
ownership, and government owner
ship Is Socialism. Socialism Is
system in which the state owns all
land and capital, substituting for COM
petition as the regulator of produc-
ton and consumption its own per-
sonal decisions and substituting for
self-interest as an incentive to &C
tivity some other force the Socialists
have not yet discovered. There Is
nothing in history or analysis to show
how much a system would work.
Socialism Is complete government
ownership of all business, no more, no
less. It must regulate production and
therefore consumption.
Government In the United States
has never been able to run any bust
ness, however small, with efficiency
and economy. The postal system Is
an example. 1t has been socialist for
more than a hundred years, and 1t is
today a sad object lesson in misman-
agement and Venal politics.
Moves Toward Socialism.
But the postal system Is a natural
monopoly of such character that gov
eminent ownership Is preferable to
private ownership under regulation.
There are many such enterprises. We
have gone far in the direction Of
socialism already. The list is impress
Sive, especially when We include en-
terprises in which government owner
ship is as yet only beginning: Streets.
roads. bridges. waterways. docks, har-
bors. ferries. parks, beaches, irrigation
and flood control, waterworks, light
and power plants, street railways and
subways, public schools and libraries,
colleges and universities, protection Of
crops and live stock, money, banking
and credit, hospitals and medical
services.
This Is only a partial list. We are
not yet socialist state. And it does
not include the many extraordinary
manufacturing and construction ac-
tivities our Government has recently
embarked on. All the institutions
listed are run at a loss to the Gov
eminent or to the public, when the
books are accurately kept. They are
paid for out Of the marvellous produc-
tivI.J of private enterprise. As the
area Of socialism increases, the vol
ume Of private enterprise to support
1t is diminished.
And this Is the final answer on
socialism in our time. The move
ment toward industrial concentration
is resistless. Monopoly is the outcome.
Monopoly means regulation. and this
tends to lead TO government owner
ship. There Is thus a socialist tide in
the affairs Of men. Even though it
moves slowly, it comes, Of itself, faster
than we can prepare for 1t. We
should not encourage it at this time.
but should resist it while we get ready
for it. We must develop decency and
efficiency in government. We must
find economists with brains and
knowledge to direct production and
consumption We do not have them
now. conspicuously not in Government
service, but they will be developed in
time. We must find some substitute
for the profit motive. The only one so
far developed in America Is the desire
to feed at the Government trough.
The people must be educated to the
point where they will realize that they
cannot vote themselves into idleness
and luxury, even though they may
vote out the few who now are idle
and luxurious.
Correct Present System.
The sensible course is to correct the
abuses and weaknesses in our present
system as we'll as We can. We should
make what provisions we can make
against poverty and unemployment
and we should preserve the COMPETE