The Republican. [volume] (Oakland, Md.) 1877-current, 1955-07-07

Editor Of its official publication.
PARTNERS.
If it has done nothing else. the
Hoover Commission has awakened
the American people to the fact
that this Republic has travelled a
long way down the road to Social
ism. 1t has held up to public scruti-
ny to just what a vast extent the
Federal Government has entered
into competition with private en-
terprise. The public doesn't seem
to relish what it sees.
Federal Government is now the
biggest lending outfit in the world.
Loans of its various lending agen-
cies are now almost equal to the
total loans of all the Federal Re
serve member banks.
Not only is this an unWarranted
invasion of private banking terri
tory, but the Hoover Commission
pointed out that it is a dangerous
procedure when it stated Direct
lending by the Government to per-
sons or enterprises opens up dan
gerous possibilities of waste and
favoritism to individuals or enter
prises. 1t invites political and
private pressure. or even corrup-
ton Emergencies may arise in de-
preston. war, national defense. or
disaster which must be met in this
way But direct lending should be
absolutely avoided, except for
emergencies
The Federal Government is also
in the insurance business in a big
way. 1t got its camel nose into the
insurance tent by first covering
risks not ordinarily insurable
through regular private channels.
But now, it completes directly with
private insurance companies In
fact by the end of 1853. it had
crawled all the way into the in
surance tent, was sponsor of over
5000 billion of life insurance as
compared with S3l6 billion by pri-
waite firms.
BY virtue of the fact that its land
holdings are in excess of 400 mil
lion acres more than one-fifth of
the total acreage OF the entire
country, the Federal Government
is the nations largest landlord.
However, where the Federal Gov
eminent has really gone to town in
invading the realm Of private bust
ness. is in the production. distri-
button and marketing of electrical
energy. Irrigation and flood con
troll We're the preteXts used for
muscling into this field. But those
worthy detectives are now only
secondary. Through its taX-frec
power projects, it completes unfair
ly with private utilities and is
squeezing many Of them out of
business.
To realize just how far Federal
Government has penetrated into
the electrical field, here are two
alarming statistics. Twenty years
ago, Uncle Sam was producing
only about one-half of one percent
of all the electricity generated in
the US; today, he produces around
Is percent
But there is hope that the march
of socialism has been halted, and
that America is doing an about
face Since the end of World War
II, the Federal Government has
relinquished to private interests,
alcohol, aluminium and synthetic
rubber plants as well as steel mills.
The government-oWned telegraph
network is soon to be sold to pri-
Vate investors; its huge lending and
underwriting program is being
Overhauled; the Reconstruction FL
nance Corporation is being liqui-
dated; and there is to be a gradual
closing out of the postal savings
system.
President Eisenhower has gotten
into the act At his request, the
Bureau of the Budget issued a di-
receive to all government agencies
and departments ordering them
before July of this year to submit
an inventory Of the activities they
carry on which could be handled
by private enterprise.
The Hoover Commission has
made an suspicious beginning to-
ward getting the Federal Govern
ment out of competition with pri-
Vate enterprise. But much still re-
mains to be done. However, if the
general public will insist that Con-
gress act upon the recommends
tons made by the Hoover Commits