Evening star., 1945-08-20

industries are TO KS; 81 81
be nationaliZed. ES'
The transporta- Frank r. Kent.
ton systems are to be owned and
operated by the government. The
Bank of England Is to be taken over.
A lot of other reforms" are
planned
If these can be inaugurated with
out trouble and operated efficiently
1t is altogether likely that we will
turn left too, and follow along. Ger
tainly, enhanced power will be given
those who wish to take us in that
direction.
But, if In practice these plans fall
far short of the theory and the re-
suit is confusion and popular dis
content, as we'll it may be, then the
Socialists will be greatly discredited
and the turn here as we'll as in
Britain will be strongly toward the
right.
No one can tell how things are
going to work out, but this thing
we know-that plans such as these
have never been tried on a large
scale in a democratic country such
as ours or England. They have
operated all right under the die
tators in the Fascist and Com
munist nations. But, heretofore
they have not seemed feasible
under the democratic system.
Divergent Views Held.
Now we are to find out about that
and there are, as always, two widely
separated views. One holds that
the leaders of the new government
are not crackpots, but level-headed
fellows who well know the Difficult
ties in the way, expect to go slowly
and have no notion that they can
perform miracles. The other con-
tends that they are essentially un-
balanced, otherwise they would not
believe in such nonsense; that the
experiments they propose are un-
sound, unwise, certain only to in
crease the cost and incompetency
OF government; that these schemes
breed demagogues, elevate the unfit
and mislead the people.
Another group of economists in
sists that the platform to which the
Labor party is committed will cost
far more money than Great Britain
can find. Also it will require goods
and services which the Empire
cannot furnish. The war has ex-
hausted the funds which the British
held in foreign countries and has
created national debt of stagger-
ing proportions.
:: Further taxation of the rich will
add little to revenues-first, because
there are no more rich, and, second,
because the well-to-do are taxed to
the limit now. Taxation of labor
to pay for labor reforms is some
thing not contemplated. The reac-
tion to that would be quick and
unfavorable to the labor leaders.
Under these conditions, it is ar
gued, there is but one place from
which the labor government can
get the vast sums needed to take
over coal and iron mines, railroads,
banks, etc.-and that is from the
United States. There just is not
any other source anywhere. If we
do not provide the money they can
not get it.
Now then, say economists, we are
not exactly in the best financial
health ourselves. But, conceding
that we are in position to make
great loans to the British govern
ment, it would, it is said, "be essen
tial to safeguard against a demor-
allied British economy, that might
result from an attempt to carry out
the labor program"
There just is not any way to do
this and in any event we should
not underwrite state socialism, u
which is something our people do
not hold desirable and not the kind
of thing for which we should use
the taxpayers money-even if we
had the money. Nor would such a
loan be approved by the people.
Thus, it is sought to prove that
the program is impossible because
we cannot-or will not-lend the
money. But this contention is en-
phatically refuted by the labor in
tellectuals. 1t is true, they say, the
program will cost great sum, but
it will not be necessary to borrow it
from the United States or any one
else. 1t can be done without bor-
rowing an outside dollar and with
out raising taxes.
Bond Plan Outlined.
And those who think the labor
leaders have not thought the flnan-
cial phase of their program through
must think them fools, indeed
which they are not. There are, they
say, several ways by which the "re-
forms" can be swung, but the one
that has the most appeal is the
bond plan"
Once, it is stated, the Govern
ment has agreed with the owners on
the mines or roads or banks upon
price, the Government can pay
these owners in bonds bearing a low
interest rate and maturing, say, in
so years. This, 1t is urged, will be
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