The midland journal. (Rising Sun, Md.) 1885-1947, 1946-05-31
News "a
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LOAN TO BRITAIN WOULD
PROMOTE SOCIALISM
By Paul MALLON ;.

Released by Western Newspaper Union.
LOAN TO BRITAIN WOULD
PROMOTE SOCIALISM
WASHINGTON.-The senate de-
bate on the proposed loan to Britain
has conspicuously ducked the fact
that the British government is law
ishly buying its way into socialism.
Some of the senate newsmen, who
are the senator's severest critics,
attribute the void to the broad lack
of knowledge among politicos of
financial matters. They should
charge it, instead, to the masking OPP
erations of the Attlee government.
Not even the most learned financial
authorities of the empire can ascer-
tain how the Attlee treasury has
taken over the Bank of England
and the mines, or how it is proceed
ing now to take the cable and wire
less companies, railroads, steel and
whatnot. The operations have been
covered with secrecy and confusion
worthy of an Eisenhower invasion
of Europe, in which false moves
and rumors were used to conceal
the real intent from the enemy.
Yet sufficient general evidence is
available in the government bills
proposed in parliament to piece to-
gether a general outline of the
scheme. Each industry is being
seized in slightly different way.
The government has steadfastly re-
fused to announce a general policy.
But the actions taken so far war;
rant these following conclusions:
The government is buying it's ma
ton with debt. 1t is purchasing in
dustries by offering government
stock or securities to private own
ers for their private stock and Sc
curities. The price paid is rarely
divulged, but seems generally to be
the current market value, or better.
GOOD PRICES OFFERED
The London Times analysed the
processes so far in an effort to Of
fer some worthwhile advice to hold
ers of railroad securities who may
be next, and reached this conclu-
sion: Whatever method of nation
alization is adopted, railroad stocks
should be retained" In short, the
Times concludes the government
will offer at least the current mar
ket value or better for the railroads.
Only in the taking of the Bank
of England did the government
tell what it was really offering.
Then it gave a 3 per cent gov
eminent bond for stock, but
guaranteed dividends until 1866
equal to what the Bank had paid
IN the past 20 years. In the seiz-
ure of the coal industry alone
did the treasury permit free
sale of its substitute stock
(there is big debt in coal and
operations have not been profit
able). So the general c0nclu-
sion is unacceptable that the So
cialism of Britain represents
the government issuing stock to
the same people who held the
private stock, at market prices,
often promising them the same
dividends, and in effect guaran-
teeing them against losses,
while depriving them of infiu-
ence in operations or the right
to sell their stock.
This is an expensive operation.
In effect, it transfers the debts Of
industry from private ownership to
the people as whole, making the
treasury liable for success of the
enterprises, atop all the war debts.
How will it work out? Not a man
alive can guess. Offhand you might
reasonably conclude that if the in
dustrial operations continue profit
able, the government may pay off
in 20 to Is years as contemplated.
If business becomes improbable,
the people in their taxes, will have
to foot the bill-as well as the
American taxpayers who are fur
nishing this proposed loan. Fur
thermore, it may be difficult for
labor government to promote, profit
able operations because such a gov
eminent must be amenable e lit
ically to wage increases and in
creased operating costs for public
service.
MANIPULATION POSSIBLE
But these simplest truths may not
stand the test of time, because gov
eminent can do anything. AS it
has let money rot, it can allow it's
special securities for each CT these
industries in years ahead to find lev
els less burdensome upon the treas
ury. Only imaginations unlimit-
ed can possibly conjure the limit
less possibilities. Mr.. Attlee's ar
rangers are keeping things that
way. In the cables and wireless
bill, there is no clear indication of
prices to be paid for the involved
holding company stocks. Appar-
emily price is to be established by
private bargaining between the