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The Inside Story: Tito~s Secret Alliance with Moscow Bogdan Raditsa

Disorder at the White House c. Dickerman Williams

The Future of the G. O. P. A Poll of Political Edit()rs You HAVE Fire Insurance

-because you would consider it the most rna.tory ideas, or pours cold water on them reckless kind of imprudence not to have before they have made too much headway. it. In order to get it~ and as a mere matter It sets forth an economic philosophy of common sense~ you have taken all rea­ which, if it were widely enough under­ sonable pr,eca.utions against destruction of stood, would fireproof public opinion your home or your factory by fire. You against misguided and destructive pro­ have installed proper insulation, fireproof posals. And it indirectly protects you and materials, a sprinkler system, fire ex­ your business when it defends your neigh­ tinguishers; and through taxes you con­ bor's firm or business against unjustified tribute to the mantaina.nce of a fire de­ attacks. partment. For you know that the fire Are you contributing your share to the department protects you when it puts out support of the FREEMAN? Are you willing a fire that started in your neighbor's home to pay a premium of $5..00 a year (our or plant. subscription ra.te) to protect yourself and The FREEMAN performs for private your friends from destruction by some enterprise the kind of protection, in the economic or political craze that, in the economic, political, a.nd intellectual realm~ absence of economic knowledge and a re­ that fireproofing and a fire department sistant philosophy, can suddenly sweep like perform in the physical realm. It applies a prairie fire, burning in its path wha.t it cool analysis to demagogic a.nd inflam- has taken generations to create?

INSURE NOWI

SUBSCRIBE TO THE FREEMAN - 240 MADISON AVE., NEW YORK 16, N.Y. THE A. Fortnightly Our Contributors For BOGDAN RADITSA served for many years as a Individualist. dip,lomat for the prewar government of Yugo­ rreeman slavia, before becoming Foreign Press Chief for Marshal Tito at the end of World War Editor HENRY HAZLITT Two. In that capacity he knew intimately the Managing Editor FLORENCE NORTON present leaders of the Yugoslav army and state. He quit Tito in 1946 in protest against Communist terrorism. He is now living in New York and is professor of Modern European History at Fairleigh Dickinson College.

c. DICKERMAN WILLIAMS, as General Counsel of the U.S. Department of Commerce from 1951-53, VOL. 4, NO.8 JANUARY 11, 1954; had ample opportunity to observe the function­ Contents ing of the Office of the President. His care­ ful scrutiny of it (p. ,266) delTIonstrates its un­ Editorials constitutional aspects and throws a new light on the maneuvers behind the White case. The Fortnight 257 The Nation's Economy, 1954 259 WILHELM ROEPKE is well known both as eco­ nomist and sociologist, and author, among other The Shadow of Yalta 260 books, of a monumental trilogy, of which two Beria Down, Who to Go? 261 volumes, Civita.s Humana and The Social Crisis Curious Secrecy 261 of Our Ti1ne have appeared in English.

Trader Dulles ...... 262 MAX EASTMAN, in his days as a magazine editor, became acquainted with the newspaper magnate, Articles E. W. Scripps, and was sometimes subsequently treated to whole days of the old man's vivid T'ito's Secret A1Hance with Moscow ....BOGDAN RADITSA 263 and intellectually lively conversation. On the Disorder ,at the W,hite House C. DICKERMAN WILLIAMS 266 basis of this personal memoir, he has written The Future of the G.O.P A POLL 269 a portrait of this little known great man for the FREEMAN. Free Eoonon1Y 'and Social Order WILHELM ROEPKE 271 My Friend E.W MAX EASTMAN 274 R. G. WALDECK has· sent us another of her "Letters" from foreign capitals,this one from Foreign Office My.stery R. G. WALDECK 277 Vienna, interpreting recent political develop­ ments. Books and the Arts EUGENE LYONS, editor and journalist, spent six Harold in Wonderland JAMES BURNHAM 279 years (1928-34) in Moscow as a correspondent. The Real Russi,a EUGENE LYONS 280 His studies and writings since that time have won him a high place among our foremost Atom Spells Confusion ROBERT DONLEVIN 281 :authorities on Communism and Soviet Russia. Europe's Economic Record MICHAEL T. FLORINSKY 282 His books include Assignment in Utopia, The Indian Tragedy and Splendor J. DONALD ADAMS 283 Red Decade, and a biography of Stalin. Briefer Mention 284 ROBERT DONLEVIN, in our issue of September 21, Capitalists on Broadway SERGE FLIEGERS 285 discussed the much-asked question: "Has Rus­ sia Got the A-H Bombs?" Since his return from Paris last spring, he has been a frequent con­ From Our Readers 256 tributor to the FREEMAN.

MICHAEL T. FLORINSKY, who is a professor of economics and economic history at Columbia University, has written extensive,}y on the governments and economic systems of con­

THE FREEMAN is published fortnightly. Publication Office, Orange, Conn. Editorial and temporary Europe. A review of his most recent General Offices, 240 Madison Avenue, New Yo.rk 16, N. Y. Copyri~hted in tbe United States, 1954, by the Freeman Magazine, Inc. Henry Hazlitt, President; Lawrence work, a two-volume history of Russia, appeared Fe.rtig, Vice President; Claude Robinson, Secretary; Kurt Lassen. Treasurer. . in the FREEMAN of November 16. Entered as second class matter at the Post Office at Orange, Conn. Rates: Twenty-fi ve cents the copy; five dollars a year in the United States; nine dollars for two years; J. DONALD ADAMS has, since his college years, six dollars a year elsewhere. spent all the time he could spare from his The editors cannot be responsible for unsolicited manuscripts unless return postage or, better, a stamped, se1f-addressedenvelope is enclosed. Manuscripts must be typed activities as editor and literary critic to living double-spaced. among the American Indians. He is currently Articles signed with a name, pseudonym, or initials do not necessarily represent the o}!)ifitOn of the editors, either as to substance or style. preparing a hook to include the fruits of these ~ 11 Printed in U.S.A., by Wilson H. Lee Co., Orange. Connecticut. observations and studies. Why Don't II FROM OUR READERS II Why the Dollar Shortage? You An Oscar to Milton Friedman's "Why the Dollar Shortage?" on December 14. His scalpel reaches the pus in this situation when he says: "There can not Stimulate be a shortage except at some fixed price." How to get this truth understood by more people? Everyone knows about Individual auctions of household goods. They're a lot of fun, and you learn something besides. When an auction is over, Enterprise everything has been sold. No burden­ some surplus left of idle goods or idle workers. Why? Because a free market by returning to the was permitted to do its stuff. But if the seller puts a price floor under his goods, it is likely that a lot GOLD COIN STANDARD? will remain unsold. The seller then complains bitterly of a dollar shortage and goes weeping to the politicians for a "Marshall plan" to compensate for the shortage of dollars he did not get for the goods he would not sell in a competitive free market. An auction may be painful to grand­ ma when her pet item sells perhaps for only a quarter, when she wanted a dollar. Nevertheless it did clear the INDIVIDUAL enterprise flourishes only For twenty years the recently de­ deck and maximized trade. This, in when risk can be calculated, and posed federal administration held when earned rewards can be retained. this power away from the people. the long run, benefits everyone, in­ Calculation .is impossible when the During those years, the purchasing cluding grandma. medium of measurement-money-is power of the dollar declined about Evanston, Ill. SAMUEL B. PETTENGILL unreliable. And rewards - paid in 60%. currency of shrinking value-are. as Improvements in industrial produc­ tenuous as the smokescreen created tivity during the same period helped "Gobbledegook" strikes me as the ap­ by the fire of inflation. to mitigate the effects of the dollar's posite word to characterize the article The Federal administration was shrinking value. For example, Ken­ elected on promises of sensible eco­ nametal - super-hard cemented·car­ "Why the Dollar Shortage?" by Milton nomics and sound money. The best bide introduced in 1938, has tripled Friedman (December 14). It is obvious way to fulfill these promises is by en­ the output potential of metal-work­ without two and a half pages of turgid actment of the Gold Coin Standard. ing and mining industries. But, it is argument that abolition of govern­ The best time to do it is now. a losing battle. The right to redeem currency for gold The President, important Cabinet mental controls over rates of exchange coin· is fundamental in a free econo­ members, Senators, and Congressmen is desirable as a step toward a free my. It gives the people sovereignty have recognized the inherent right­ economy, but it is also obvious that over government. When displeased ness of return to the Gold Coin Stand­ this is only a preliminary step, a with government financial practices, ard.* Why, then, should legislative they can automatically halt monetary action on it be delayed? The United palliative. inflation by cashing in their currency States owns 65% of the world's gold The article reminds me of the ad­ for gold coin. -$11 in gold for every $100 of cur­ monition I once heard from a professor rency and bank deposits. of engineering. "Don't base accuracy Returning to the Gold Coin Standard Excerpt from Republican will demonstrate to our citizens that on inaccuracy. Don't base stability on ·'Monetary Policy" Plank its government has faith in them ­ variables." will win the world's respect for our The inaccuracy, the variahle, in this monetary might-will encourage in­ dividual enterprise and stimulate situation is irredeemable currency. Un­ American industry, of which Kenna­ til there is re-established a stable unit metal Inc. is a key organization, to of value, in other words the gold contribute ever-increasing benefits to standard, rates of exchange, even in *The right to redeem all our people. currency for gold will the absence of governmental controls, help keep America We must resume without devalua­ free ••• ask your Sen­ depend on the juggling of kaleidoscopic ators an.d Congress­ tion or delay. man to work and vote factors. to restore the Gold No country has ever yet been able Coin Standard. Write to The Gold Stand­ to get away with irredeemable currency ard League, Latrobe, Pa., for further i'nfor­ and fiat money. Our country was saved mation. The League is twice from disaster; once by the re­ an association of pa­ triotic citizens joined sumption of specie payments in 1873, in the common cause WORLD'S LARGEST Independent Manufacturer Whose Facilities are of restoring a sound Devoted Exclusively to Processing and Application of CEMENTED CARBIDES and by the defeat of the Bryan free- monetary system. (Continued on p. 286) reemanTHB

M'ONDAY, JANUARY 11, 1954

stable politically in the whole world. Americans The Fortnight have been told constantly in the last twenty years that they need a "strong" executive (a very am­ We opened a door to the Soviets and, after some biguous adjective), who will supply "leadership" fumbling, they walked in. At first, after Pres­ by ruling Congress with a "firm" hand. The al­ ident Eisenhower's ill-advised offer to pool atomic leged need for more and more concentration of resources with Soviet Russia and anybody else, power in the executive is surely not supported by Moscow turned thumbs down on the proposal. If the Swiss example. the Soviets had stuck to this rejection, we could have congratulated the Administration on its un­ With a retrosp~ct of futile wrangling and propa­ deserved luck. Now, however, the Russians have ganda tirades at Panmunjom and a prospect of come through with a ponderous reply; in the wish­ more of the same ,at BerEn, it miwht be worthwhile fully phrased report of the New York Times, it for Mr. Dulles to take a look at the way Charles was. "free from vituperation, was fairly well bal­ Evans Hughes ,cut short Communist methods of anced and seemed to invite discussion." Thus the stalling and haggling. When the Soviet government four-power conference in Berlin, which the So­ in 1923 tried to draw the United States into a dis­ viets accepted but postponed to January 25, gives cussion of recognition Mr. Hughes observed that Moscow further opportunity to exercise its new there was really nothing to di,scuss. If the Soviet tactics. . government wanted to compensate American citi­ zens for s~olen property and riepudiated debts and Ever since Stalin's death the greatest danger has stop propaganda for the overthrow of the Am.erican been that the Soviets would play shrewdly and government, it could do ISO. Otherwise' there was no softly, rather ,than bluntly and ;rambunctiously. occasion for talk. It is doubtful whether any states­ Last April a cleverly-phrased Pravda editorial man during the last three decades has found a forecast a policy that would enable Moscow to better means of telling ,Moscow and ,Peiping to put play upon the gullibility of the West. Since then, up or shut up. the Soviets have seesawed between their old vio­ lent reflexes and a new line of honey rather than The butter support program is back in the news, vinegar. Their flattering words in the atom note with the Agriculture Department's latest idea of calling Eisenhower an "outstanding military lead­ selling butter as a cocoa butter substitute. No er," should warn the President that our adver­ one knows for sure just how much or how little saries are sniffing the heady scent of our appease­ of a dent any such program can make in the gov­ ment. Secretary Dulles' view that the note from ernment's huge butter stocks; by year's end, the Moscow offers "good ground for hope" is hardly Commodity Credit Corporation held 249,629,000 encoura'ging. pounds of butter-most of it purchased during the present Washington Administration at the rate of France at last succeeded in picking a President, 66% cents per pound. This represents a total but Switzerland, with none of the French atmos­ outlay of $165,379,000 of taxpayers' money in­ phere of crisis and name-calling, quietly chose a vested in a highly perishable commodity. Con­ new President while the French balloting was go­ gress has until April 1 to ·find a w·ay out of the ing on. His name, for the benefit of the curious, butter glut. The country managed to get out was Rodolphe Rubattel, but Americans are un­ from under the potato support plan after the ex­ likely to see his name in the newspapers in 1954 cesses of dumping and smuggling had been any more than they have been seeing that of.his reached. An end to butter stockpiling is long predecessor, one Philippe Etter. Yet this coun­ overdue. try with an anonymous President who serves for only a year is perhaps the most prosperous in The nation's cotton growers, who have just voted Europe, and one of the best governed and most in favor of acreage control, ought to look at what

JANUARY 11, 1954 257 happened to winter wheat. Just about the time will speedily initiateconte,mpt proceeding.s for this the cotton men cast their votes overwhelmingly flagrant defiance of our orderly and tradi1tional in favor of the Department. of Agriculture's 1954 processes of government. It would be in order to production and marketing controls, reports from remind Dr. Einstein that his advice is :base col­ the wheat states showed that the effect of acreage lusion in the commission of a crime against the controls had been nullified by favorable weather. government to which he owes his safety, his free­ Secretary of Agriculture Benson has proclaimed dom, his good fortune, -and his life. an allotment of 17,910,484 acres for cotton, cal­ culated to produce a crop of 10,000,000 bales this For some years Angus Cameron, a man with a year. That is a substantial cut. In 1953, the list of "front" :affiliations that mus,t have riv,aled cotton lands under cultivation added up to 24,­ Paul Robeson's, was editor-in-ehief of an old 600,000 acres and produced an estimated crop of ,established publishing house. In this post he pulled 16,300,000 bales. But the example in the wheat off one of the slickest jobs of eultural infiltration fields ought to teach all of us that the sun and on the record. Book after book that toed the party the rain are quite unaware of crop control line came off the presses of this reputable firm. schemes. As long as the elements manage to Now that this job has been thoroughly :exposed in avoid federal controls, the weather will cast its a documented survey by Counterattack and Mr. vote in favor of a free market. Cameron's 'connection with the publishing house has ended, he has gone into publishing partnership If there is any perceptible benefit at all of the with Albert Kahn, a wen-known specialist in pre­ U.N., it is the free-wheeling discussion that some­ senting the Communist viewpoint in the guise of times takes place in the Assembly. A recent illustra­ ",anti-fascis,m" (The Great Conspiracy, High Trea­ tion was the statement of a Soviet delegate, G. P. son, Sabotage). Announced publications of ,the new Arkadyev, that he could ten the Assemhly Economic firm are exactly what one would expeet, attacking Gommittee how many restaurants would open in Senator :McCarthy with fine fervor and purporting the Soviet Union next year. Meant as a boast, to expose "the atom spy hoax" and to tell the this declaration exposed the Achilles heel of the "truth" about the Rosenberg'S. This is a welcome planned economy. Anyone who had lived in the sailing under plain colors. It was diff,erent when Soviet Union could have told the Economic Com­ Cameron could put the imprint of an old and mittee, with still more assurance, that the quality worthy publishing house (which ibas radically re­ of food and service in these restaurants would vised its poUcy ,since his departure) on the same vary from drab, unappet-izing mediocrity to un­ kind of stuff. speakable badness. A good restaurant is a product of individual genius and free compeHtion. It will A sensitive correspondent has described to us the certainly never result by the decision of some shock of finding his favorite hat shop picketed by government com'mittee to open so-and-so many the United Hatters, Cap -and MiHinery Workers. He restaurants according to plan rather than need. pondered the fact that a retailer was being pun­ ished for a dispute that involved only the union Albert Einstein has in the past exhibited a highly and the manufacturer. "W,alkingdown Fifth selective s~ense of injustice. His denunciations of Avenue," our correspondent writes, "I had the Nazism, from the secure and profitable haven that eerie feeling of being followed. After all, I was we granted him among us, were ,many and ,eloquent. wearing one of those hats that all the fuss was H,e has been too !busy with differential equations, about; and wasn't it possible that a really eager­ world government, and front organiz,ations to issue beaver picket might have decided to fall into step any matching ,statements on 80viet slave camps, behind me?" Moscow purge trials, or ICore-an germ warfare charges. His heart bled for the Rosenbergs, but not "Izvestia, the Soviet government newspaper, an­ for the future victi,ms of their treachery. Now nounced in tomorrow's edition that Beria and his Einstein is blossoming into ,a new role as expert on co-defendants had confessed at their trial to the United States constitutional principles. Early in charges against them and that 'the highest degree 1953 he publicly .advised ,all "intellectuals" to of capital punishment-shooting-was carried refuse to testify hefore congressional committees, out.'" (From a United Press dispatch) and to base their ;refusal on the First, not the Fifth, To keep the time-schedule ,quite clear: Amendment. A few weeks ago he specifieaHy so 1. Beria was shot tomorrow. advised Albert Shadowitz, who had been subpoenaed 2. He confessed the day after. to appear before the Permanent Subcommittee on 3. The trial was held next week. Investigations. Shadowitz followed the Einstein 4. His chief crimes were committed in 1955. advice in refusing to :answer whether he had been This Soviet time sequence is perfectly logical. If a Communis't Party member while working on the p11,rpose of punishment is prevention, it is secret military projects ,at the Aberdeen Proving senseless to wait until alter a man has committed Grounds 'and elsewhere. We assume that the Senate his crime before shooting him.

258 THE FREEMAN The Nation sEconomy, 1954

The President's State of the Union Message must and the the CEA'S economic reports must be read. be weighed against the background of the nation's And it is against this background that congres­ economic development during 1953: will the goals sional reaction must he viewed. The Congress that were ignored last year be reached this year? cannot shirk responsibility for ,shortcomings in the Will 1954 see the ,continuation of a policy that nation's economic policies. Too much pork-barrel created hopes of new ,stability, but rapidly developed legislation remains tolerated; too many eyes are a widening inflationary trend? closed to inflationary appropri,ations ; too few When the Administration of Dwight D. Eisen­ congressmen are aware that the nation's voters, hower was installed one ye,ar ago, its supporters­ who will go to the polls once again next November, and indeed its antagonists-anticipated an era of cast their ballots in 1952 for thrift. informed economic 'Conservatism. Eisenhower was elected for virtues which he had espoused in his Will the President and his economic advisers, historic homecoming speech at Abilene, Kans,as, in 1954, yield to political pressures, as they did facing in 'a pouring rain the steadfast citizens who in 1953 ?That, in essence, is the key question at had 'Come to witness ,a return to the traditional this moment. In farm policy, the Eisenhower Ad­ virtues of frugality and thrift. ministration has been guilty of abject surrender In measuring the economic accomplishments of to outside pressure; butter piled hi,gh in govern­ the Eisenhower Administration, we are forced to ment storehouses is only one illustration of this limit our applause to purely negative actions that trend. were taken early in the year by abolishing controls New pressures are being applied from unusual over wages and prices. But the very next step quarters. At las't month's C.LO. conference in toward a sound monetary policy was nullified when Washington, President Truman's one-time eco­ the Federal Reserve Board first tightened and then nomic ,adviser, Leon Keyserling, accused some quick!ly loosened its discount rates. people of considering a "little bit of depression as White House insiders whisper that the President a good thing," and asked fore!arly action. is not entirely aware of such intricate matters as lit is such pressure that may he making the the effect of open-market operations 'and discount White House economists trigger":happy; at the r,at,es on short-term money rates, and the ,effect of slightest sign of an economic chang,e, they seem these, in turn, on inflation. If that is no mere Wash­ ready to jump the gun. The result is that at every ington gossip, grave responsibility lies upon the false alarm, some more infl,ationary hot air is President's Council of Economic Advisers. pumped into the balloon of government expend­ itures. Even in advance of the President's Eeonomic And yet neither the economic foree.a,sts nor Message and the CEA',s annual report, Washing­ present 'Conditions justify aUth-is. Business Week ton dopesters talked about so-called "anti-reces­ forecasts that the nation's eeonomy will reach "a sion plans" by the economic advisers. The grave ,sunnyplateau." Indus'try ,and busine,ss are planning danger of such talk, and of such planned leaka,ge of to spend at ;an annual rate of nearly $28,000,000,000 policy, lies in the hopes, rather than the fears, on plant improvement during the first three m'Onths which are thus aroused. of the year; that is $780,000,000 above the 1953 Apparently with the approval of the White House rate. And ,the gross national product and national economists, irresponsible notions about a supposed income in 1953 reached the highest levels on record, "anti-slump machinery" have been bandied about. while em'ployment reached the highest levels of our The impression has been cre,ated that Washington peace-time ibis,tory. would only have to throw some sort of mechanical Looking back over 1953, we can recall that anti­ or magical switch and an economic trend could be cipated clouds over the nation's economic horizon reversed. never did materialize. The end of the Korean war Outside a fiscal dream world, no such "machin­ brought no adverse reaction, either on the stock ery" can be fashioned. If there should develop a market, in consumer purchases, or in industrial lowering of 15 per cent in private spending in the expansion programs. Instead, consumer buying and near future, it would take as much as a 50 per cent industrial expansion went forward, confounding increase in government spending to make up for it. the hasty Cass,andr,as. As it would appear now that the current fiscal year A mature evaluation of economic possibilities will show a deficit of from $3,000,000,000 to $4,000,­ will, of course, make allow'ances for fluctuations. 000,000, such gigantic pump-priming is entirely But a policy that is supposedly based on thrift unrealisti,c. and prudence will not permit itself to he stampeded It is against this back,ground that the President's into premature or dangerous action.

JANUARY 11, 1954 259 unity. The sacrifice of what i,s potentially our The Shadow 01 Yalta strongest and most stable ally in weste'rn Europe, the governm'ent of Chancellor Adenauer, to Soviet Theconf:erence of the three Western powers with intrigues and to the objections of French Com­ the Soviet Union, tentative,ly set for Berlin early 'munists and neutralists and British Bevanites, in J,anuary, will meet under the shadow of Yalta. would be a eombination of crime and blunder of And this shadow is dark and long. Poland and Yalta proportions. A prophylactic for the inevitable China were offered up as sacrifices to the will-o'­ dangers of a meeting with Moscow would be the the-wisp of permanent agreement with Stalin in aS8'ertion in the clear:es!t and mosit positive terms 1945. There is a danger, to which American public of our intention to keep faith with West Germany opinion should be alert, that the German Feder.al and to do every,thing in our pow'er to see it reeeived Republic, not yet accepted as a full ally by the on equal terms into the European community of three Western powers, could be treated at the nations and allowed to t'ake its proper plaee in impending conf.erence as an expendable pawn and European defense. sacrifi,c:ed to thi,s same unr,ealistic aim of permanent agreement with the Kremlin. :That the shadow of Yalta is no unreal fantasy is More than eighteen months have passed since evident from two discordantly false notes which two treaties, providing for the end of an occupation Wins,ton Churchill struck in his speech in the that had long beeome anom,al'O'Us, and for the House of Commons, reporting the results of the integration of West Germany into western Europe, B!e'rmuda Conference. It is hard to find a con­ werre initialed. One of these treaties provided for sistent pattern in this veteran British statesman's the creaition of a six-nation European Defense aittitude toward Communism. Sometimes, as in his Communi!ty (E.D.C.) with a European Army of Fulton, Missouri, speech of 1946, he give1s a lead forty divisions, of which Germany was to supply to which the whole free world m'ight well respond. twelve. In the last volume of his massive war memoirs, Linked with the treaty estabUshing the E.D.C. Triumph and Tragedy, he makes a powerful case is a contraetual agreement hetwe,en Wes1t Germany for stopping Gommunirsm as far to the east as and the three occupation powe'rs, the Unit,ed St,ates, possible and deseribes his personal sense of Great Britain, and France. Thi,s eliminates the frustration during the disastrous interr,egnum in remnants of the occupation system and restores Wa,shington, when "one Pre,sident .could not 'act ,and virtua,l sovereignty to the government in Bonn. the other could not know." The two treaties are tied tog,ether, the contractual IOn other occ-asions, as in his advocacy of a agreement coming into for,ee only if and when the top-level meeting with Malenkov with no prelim­ E.D.C. is ratified. inary condi'tions and no a:greed agenda, he seems Any doubt as to German acceptance of this to relapse into the futile and self-defea:ting form­ arrangement, which merges German armed forces ulas of Teheran 'and Y,alita. His most r,ecent speech indissolubly with those of the five other European in the House of Gommons was not one of his partners in the E.D.G., was swept away by the happier inspirations. W'ith an almost comical mis­ ove'rwhelming victory of Chancellor Konrad Aden­ placement of emphasis he declared that Russia is auer in the election last September. Communist in need of "assurances against aggr,ession." This and neo-Nazi opposition were wiped out and the obscures the whole point of the cold war----that the Social Democrats, who had opposed E.D.C. on Sov.iet Union must renounce the fruits ofaggres­ nationalist grounds, wer,e soundly def.eated. sion that has led to the ,enslavemient of nine for­ But France has ,balked and delayed the honoring merly independent European nations before there of its own signature and the implementation of its can be ;any prospect of a ,geriuine East-West settle­ own plan. The idea of a European Army, as an m,ent. alternative to a national German army, was put SirWins'ton's references to the Far E'a8t were forward by M. Rene Pleven, French Pri'me Minister also extremely unfortunate. Hie mentioned amon.g in the winter of 1950-51. The prospect of ratification subjects of dis'cussion at Bermuda "trade with by the French Chamber of D,eputies s,eems as un­ China, the re1cognition of the Chinese Communist certain now as at any time since the treaties were governm,ent, the admission of China to the Unitled initialed. The situation is further compHca~ted be­ Nations, and even such awkward personalities as cause Italy has shown a disposition to use ratifica­ Syngman Rhee and Chiang Kai-shek." tion of E.D.C. as an instrument for extorting from There was no intim,ation that Mao Tse-tung and the West a settlement of the Trieste :issue. lYlolotov are "'awkward per!sonaHties." This s,entence, The agreement of the Soviet government to hold unless counterbalanced by a strong statement in a Foreign Ministers' conferene€', grudging as it was the opposite direction in Washington, may convey and accompanied by the usual outpouring of the impre,ssion that an Anglo-Am,erican progr,am truculent propaganda, offers the Soviet wrecking of :appeasing Red China is under way and that the crew anexcellernt opportunity to tear down the only obstacles 'are those "awkward" men who win s,till fr,agile and incomplete foundations of Western not give up the fight ag,ainst Communism.

260 THE FREEMAN If one considers these painful lapses of Churchill Praesidiurn, and anyone who t:ells us he does is and the jellyifisih eha;racter of every French Cabinet, either a deceiver or self-deceived. it looks as if Washington will have to provide the The fall and liquidation of Beria are, however, greater SHare of guts and backbone at B'erlin. The new proof of one essential fact. The post-Stalin American delegation should :enter the conference Soviet regime is not consolidated. A fierce struggle with a clear simple program calUng for German for power, which cannot be restrained within the unity on a basis of :tree all-German elections and walls of bureaucratic rooms, is raging. A dictatorial the right of the new all-Germ,an government to regime cannot be ruled long by a committee; it conclude alliances as it miaychoose. And there can consolidate only around one individual. A terror should be a quick decision to pack up bags as soon regime can pick that individual only by blood: as the Soviet government resorts to such tactics as heads must fall. There is no reason to believe answering specific proposa,ls regarding Germany that the individual is yet decided. If it is to be and Aus'tria with suggestions that Red China be Malenkov, he has still a long and hazardous course admitted to the United Nations. to run. The Soviet regime is thus forced to direct major energies inward, and is for this period handicapped in the conduct of its always aggressive foreign Rena Down, Who to GO? policy. It is incredible that at this moment the tendency toward appeasement of Moscow spreads Lavrenti Beria has followed his predecessors, Henry from India and Europe to Washington. To give the Yagoda and N. 1. Yezhov, to the final walk in the Soviet Union a breathing space now is simply to black cellars of a Soviet prison. Endless repetition help it consolidate a new regime that will be able duns our sense of the quaHty of ,absolute madness to finish up the conquest of the world with more that characterizes the Soviet regime. What con­ speed and certainty. By all the rules of politics, ceivable logic can in nine months transform the strategy, and common sense, this is the time to brightest shield of the people into the most vile pr,ess harder, not to relax. Is it really impossible of traitors and criminals? for the West to learn the vanity of appeasing a And now we are' told that his treason dated totalitarian aggressor? from 1917-this is, from the first day of the Revolution, and his own nineteenth year. For thirty-six years Beria did nothing but plot, sahotage, and :betray. Is anyone expected to believe Curious Secrecy this ? It does not seem likely. To helieve this would imply a repudiation of all that the M.V.D. A logical and necessary sequel to the aIrIng of had done for its past fifteen years under Beria­ the Harry Dexter White scandal is a thorough in­ and the M.V.D. is the core of the Soviet regime. vestigation, by an appropriate congressional com­ To believe it would imply tha't Lenin and Stalin mittee, of the Morgenthau Plan for the industrial had been accomplices, and Malenkovalso, who only destruction of Germany. For Harry Dexter White last April named Beria as his first colleague. was more than a high source of information for What we must recognize is that the terror and Soviet spy rings, before and after the beginning of the purges and the trials are part of the normal World War Two. White was more than an informer, 'procedures of Bolshevik rule. The elections are a he was an infiltrator. Not only could he tell what farce, and are not taken seriously by anyone. But poliey steps the American government was taking; the terror is serious, and is known to be serious. he could shape and guide those steps. W,e, and the Western world g:enerally, "legitimize" White's influence as Henry Morgenthau's most our rulers by the parHamentary processes of trusted lieutenant in the Treasury Department was nominations, talking campaigns, and elections. immense. Immediately after Pearl Harbor Morgen­ When the vote is counted, that settles it, so far thau put him in charge of "all matters with which as we are concerned. In the Soviet Union, the the Treasury Department has to deal having a ruleTs-or ruler-are legitimized by the terror and bearing on foreign relations." By 1943 he was in ,the purges, and only so. Whose neck lasts longest? charge of "all economic and financial matters" con­ That is wha't settles it. cerned with Army and Navy relations and also 'This is the measure of the gulf between their of "civilian affairs in the foreign areas in which world and ours. our armed forces are operating." Most of the speculation on the detailed signi­ White himself testified on one occasion that he ficance of the Beri!a purge is idle. The fashionable "participated in a major way" in the formulation idea of the moment, that Beria',s downfall marks of the Morgenthau Plan. the ascendancy of the Army, is based not on If the Morgenthau Plan had been drawn up in concret'eevidence but on purely deductive and the Kremlin it could not have been more cleverly for the most part eircular reasoning. We simply do designed to drive Germany to despair and sub­ not know the details of what goe,s on inside the servience to the Soviet empire. It proposed tha't in

JANUARY 11, 1954 261 the most thic'kly settled industrial areas of Ger­ many, including the Ruhr and the Rhineland, "all Trader Dulles industrial plants and equipment not destroyed by military action shall be eo~pletely dismantled and It is a well established law of contemporary transported to allied nations as restitution. All politics that whenever John Foster Dulles makes equipment shall be removed from the mines and a clear, firm statement of American policy and the mines closed." interest he will be condemned as a brute in the 'Besides this transfer of plant and equipment left and liberal press here and abroad. This is the Morgenthau Plan proposed as forms of repara­ the converse of the equivalent law that whenever tion "forced German labor outside of Germany" he says ,something v,ague, globalist, and appeasing, and "confiscation of all German assets of any he will be praised from ,those same· quarters. character whatsoever outside of Germany." Per­ 'Thus, when a few months ago Secretlary Dunes haps the most revealing paragraph in this sinister made a particularly confused, soft, and apologetic scheme, which would have been a death sentence speech to the United N'ations Assembly, he was for millions of human beings and would have com­ showered with the most complimentary adjectives pletely wrecked any prospect of orderly European in a thousand editori'al cupboards from Le Monde economic recovery, is the following: to the Washington Post to the Times of India. The primary responsibility for the policing of Thus also, when a few weeks ago he laid it on the Germany and for civil administration in Germany line to the N'AT,O Council in Paris, rhetorical coals should be assumed by the military forces of Ger­ many's continental neighbors. Specifically, these were at once heaped on his head. should include Russian, French, Polish, Czech, Greek, Weare meditating here on methods ra,ther Yugoslav, Norwegian, Dutch, and Belgian soldiers. than on obJectives. The particular i,ssue in Paris Under this program United States troops could be was the proposed European Def,ense Community withdrawn within a relatively short time. with its joint Europeran Army. Mr. Dulles stated: Although this is not spelled out, the clear either the Defense Com,munity will be estahlished purposes of this suggestion (eliminating American and the European Army initiated within the next and also British troops from the occupation of six months or the United State,s wHl be forced Germ'any) seem to be tom,ake Germany vanish into an ",agonizing reappr1aisal" of its policy toward behind the Iron Curtain as quickly as possible. Europe. Put more vulgarly, he told the Europeans The Morgenthau Plan was no empty paper fan­ that the United State,s expects to get something in tasy. It was officially endorsed by Roosevelt and r,eturn for its n10ney, effort, and saerifices. ,i Churchill ait the Second Quebec Conference on 'This last is the great heresy from the globalist September 15, 1944. Morgenthau had rushed to point of view. Imagine! To expect a quid for an Quebec to push it through. Roosevelt was appar­ .i\merican quo! To attach a "condition" to Amer­ ently at a very low ebb, mentally and physically, ican aid! Naturally, no one in polite circles would and later confessed to War Secretary Stimson that suggest that America should be First. But think he hardly knew what he' was doing. Churchill, con­ of the effrontery of a Secretary of State who cernedabout more American handouts, explains suggests that it at any rate should not be Last! his' role a bit shamefacedly as follows (Triumph We are not so sure about the Europe,an Army. and, Tragedy, p. 156) : "At first I violently opposed There may be something to General de Gaulle's this idea. But the President, with Mr. Morgenthau epigra,mm!atic comment: "How do you expect -from whom we had much to ask-were so in­ Frenchmen to fight for Europe if they are not sistent that in the end we agreed to consider it." willing to fight for France?" But European Army (Italics added) or no European Army, we are certain that Secre­ While the full 'indiscriminate vindiC'tiveness of t,ary Dulles' Paris method of defending our in­ the Morgenthau Plan was fortunately never ap­ terests is superior to his U. N. method. plied, enough of its spirit got into the Potsdam Moreover, it is false that this "blunt" (i.e., frank) Agreement and the early pra,ctice of American mil­ method is more likely than the soft method to lose itary government to retard by at least three years us the good will of ouraHies. Handouts, condescend­ the inauguration of the constructive policy in Ger­ ingcharity, vague do-good attitudes (always sus­ many which has paid such good political and pected of hypocrisy) make for resentm,ents in the economic dividends in recent years. long run. As a business nation we know that shrewd It is high time that the curious secrecy which trading, honestly motivated by self-interest, ,gives surrounds the origins and development of the results that are benefici'al to both parties toa trans­ Morgenthau Plan should be eliminated. It is high action. 80 long :as the European na'tions feel that time that a congressiona,l investigation should lay we reg,ard them as mere objects of cha:rity (or 'before the American public all the available facts, mere pawns in power politics) they will inevitably including the role of Harry Dexter White and resent us. It can only add to their self-respect-and othe'r factors which sugg'est a Communist back­ thus to their respect for us-if we make clear ground for this fantastic scheme of creating a that we need and expect something definite from desert and calling it peace. them in return for what we offer.

262 THE FREEMAN Tito's Secret Alliance with Moscow

- The Inside Story By BOGDAN RAD'ITSA

On August 26, 1953, I arrived in Trieste, deter­ munists were not pleiased. Finally, Tito's official mined to confirm or refute a sensational series of biographer and chief propagandist, Vladimir report,s: Was M,arshral Tito rejoining the Kremlin? Dedijer, wrote a long article in the Com'munist W'as Yugoslavia's Communist dictator, in whom the organ Borba. He sraid that the German and Czech West had invested $500,000,000, !Conspiring with uprisings had been "incited" by shady Americans, Moscow to betray the free world? that.they increased the danger of war, and were I had first heard the rumors in America, and I aimed to restore feudal reactionary cl1asses to power. had now spent two months at the long frontiers of The Dedijer article was a direct playhack of the Yugoslavia, gathering facts and documents, meeting Mos'Cow line. old friends, interrogating diplom1ats and intelligence By the time this startling comment appeared, I experts. Trieste was the last stop on a long was making investigations along the Yugoslav journey. Here, as I waited for the two men from frontier. It did not surpri1se me when Tito received Yugoslavia who would bring me the keys to the the new Soviet Ambassador cordially, or when his puzzle, I 'reviewed the events which had led me to Cent~al Committee sent good wishes to the Russian this rendezvous. Communist Party on its fiftieth anniversary. Nor In 1948 Joseph Stalin and his chief aide, Andrei was I surprised when Tito told a British newsman Zhdanov, had re'ad Tito out of the world Communist that Red China belonged in the United Nations, movement. In desperation, THo had turned for help and that Yugoslavia would "never" join the Atlan­ to America and England, but called himself a tic Pract but desired "normal and even, to a certain Htrue" Communist all the while. When Stalin died, extent, friendly relations with the U.S.IS.R." I no things changed in Moscow. Georgi Malenkov­ longer doubted that Tito was strongly considering Zhdanov's old enemy---'beClame Soviet Premier. The a new 'alliance with Russia. The real question was: popular Marshal Zhukov, whom Stalin had banished How far had he gone? to a provincial garrison, became Vice-Minis,ter of Def'ense. Within a few months 8'talin's Georgian Authentic Documents Tell of Pact comriade, the dread police chief Lavrenti Beria, was purged. Malenkov also quickly rewrote the The documents that answered that question were official history of the Soviet Communist Party so brought to me from Belgr1ade by men whom I that it contained only slight references to Stalin, knew personally; I can vouch for their unim­ who had actually made that history for almost peachable integrity and sound political judgment. thirty years. The documents themselves are the det'ailed reports As these events unfolded in Moscow, it was only of two secret anti-Communists who are high in natural for me, as a former colleague of Tito's, Tito's regime. One of them is a member of the to wonder how the Yugoslav dictator would react. Central Commiittee of the Yugoslav Communist I soon found out. On June 14 Soviet Russia and Party; the other is la prominent official at the Yugoslavia announced they were resuming diplo­ Oentral Headquarters of U.'D.B.A., Tito's secret m'atic relations. A few days later, gunboats of police. Although each report was written inde­ the Soviet fleet were traveling down the Danuhe pendently of the other, the two tally on all essential through Yugoslavia for the first time in five years. points. Other sources confirmed many details in Before the summer was over, Kremlin satellites both reports. The authenticity of hoth documents Bulgaria, Hungary, Albania, and Rumaniia had also has been verified to me personally by one of the decided to resume relations with Tito. Meanwhile, most respected intelUgence services in Europe. Yugoslav newspapers began to criticize "pro-Amer­ This is the story these documents tell: Tito ican influences," and to print sharp attacks on and Malenkov, after many preliminary overtures, A'me'rican foreign policy, race relations, labor definitely agreed during the middle of July to work unions, art, movies, and wonlen. toward a resumption of the old Moscow-Belgrade When factory and mine workers in East Germany partnership. The numerous frictions which led to and Czechoslovakiia, many of them former Com­ the original break are to be eliminated by a Joint munists, revolted against the Kremlin in June, I Yugoslav-Soviet commission. The details of Yugo­ watched for Tito's reaction. For a while, Belgrade slavia's future politieal strategy remain to be issued noncommi'ttal, ambiguous statements. But worked out, but the present plan cans for .con­ careful observers could tell that the Yugoslav Com- cealing the new Tito-Malenkov aniance. Under this

JANUARY 11, 1954 263 scheme Tito will be permitted to make occasional quite likely that these announcements signaled criticisms of Moseow and thus will be able to the formal assent of both parties to the new secret continue receiving A'merican aid. lIe can serve pact, although perhaps the word was passed in­ Malenkov by disrupting the NATO alliance and by formally. In any case, a few days later, a special independently playing up to non-Communist rad­ Yugoslav delegation of twelve left for Moscow, to icals in Europe and Asia. work out with Soviet officials the many details of So far as can be determined, the initiative for the new alliance. One member of the delegation the new alHance eame from Tito, but Moscow was has been positively identified as a general who quick to res,pond. About a month after Stalin's participated in top-secret deliberations on Balkan death, a Yugoslav Foreign Office official named defense wi,th the General Staffs of Greece and ,Josipovic went to Moscow and attempted to offer Turkey. Tito's proposals for a rapprochenlent to top Soviet It is easy to understand why the Kremlin wants leaders. J osipovicnever got to see the top leaders, Tito back: Yugoslavia, whether an open or con­ but was carefully interviewed by officials of the cealed ally, repres,ents a priceless ,strategic asset Soviet Foreign Ministry. Malenkov's response soon for the Communist movement. Tito can do even followed. Early in May, the Soviet military attache more for Malenkovas a secret ally. Through in Albania came to Belgrade in 'a Yugoslav train, the Balkan Pact with Greece and Turkey, his men accompanied by two Russian civiHans. He stayed can give the Kremlin the military blueprints of the in Belgrade four days in civilian clothes, residing 'Vest. Posing as an "'independent Communist" or as at the headquarters of the Belgrade lv.I:unicipal an "ultra-radical Socialist,"Tito has exerted :an ,Communist Party. After getting in touch wilth influence on radicals throughout the world whom important Yugoslav generals, he went on to Moscow. the Kremlin could not reach. Milovan Djilas re­ Later that month, four high officers of the Soviet ported to a secret meeting of Yugoslav youth Gommunislt Party (all specialists in Soviet relations leaders late in July that Malenkov was "hi,ghly with foreign Communist parties) came to Belgrade appreciative" in particular of the way the Titoists and conferred with Tito's Minister of the Interior, had swung so many Asian Socialists toward "neu­ Alexander Rankovic. tralism" and anti-Americanism. In addition to Negotiations were stalled for several weeks as these factors, the Soviets doubtless appreciate the the workers' 'revolts in the satellite states shook psychological boost the return of Tito would pro­ the Kremlin. But late in June, after BeTia had vide for other satellite leaders, shaken by revolts fallen, Tito m1ade a new report to his Politburo on since Stalin's death. the many feelers that had been put out by him and by the Soviets since Stalin's death. The Wlty Tito Is Rejoining tlte Kremlin Politburo urged pressing the negotiations further, and Malenkov was quick to pick up the thread. Ti,to's motives in the new deal are a little harder On July 4, 1953, Tito was at his summer home to understand. Why has he decided to risk a in Bled, near Ljubljana, when a special plane seemingly profitable alliance with the West, to re­ arr,ived a't 'his headquarters from Belgrade. In the turn to the Kremlin whi'Ch treated him so shabbily plane, bearing urgent news, was Svetozar Vukmano­ five years ago? The reports of our informants vic-Tempo, a former Partisan general who now indicate three major reasons for THo's decision: bosses Yugosl'avia'seconomy. His arriv1al prompted 1. Malenkov is not Stalin. All the Yugoslavs hasty conferences in which Tito, Rankovic, Edvard who have written on the Tito-Stalin split have Kardelj, and Milovan Djilas-the top leaders of the emphasized Stalin's arrogant, overbearing per­ government-all took part. Several times in the sonality; "he treated us like children," is the theme next three days, Vukmanovic-Tempo flew back and that runs through their discussions of the break. forth between Ljubljana and Belgrade. On July But the same commentators invariably point out '6, he was in Ljubljana for the last time, dressed that Stalin treated his Russian subordinates in in the Partisan uniform which he had not worn the same way, humiliating Malenkov and Molotov for sever'al years, and accompanied by Ale'Xander on countless occasions. The strong element of per­ Knez ("Sava"), a member ofa secret branch of sonal rancor in the Moscow-Belgrade break was the D.D.B.A. who lived in Moscow before the war. removed with Stalin's death. (Zhdanov, Tito's other Vukmanovic-Tempo and Kne'z left by plane for foe, died in 1948.) Moscow. They arrived there on July 8 and spent Malenkov's policy shifts did the rest. As early three days conferring with high Soviet officials. as May of this year, members of the Yugoslav They reiturned to Ljubljana on July 11. The leaders Central Committee were informed by the Politburo of the Yugoslav Communist Party and Army Gen­ that Malenkov's policies were considered "new, eral Staff met immediately to discuss Vukmanovic­ positive, and constructive." A circular letter lay­ Tempo's report. On July 18, Belgrade announced ing down that line was issued on June 15 and the lifting of all restr,ictions on Soviet officials in read in all Communislt Party cells and army Yugoslavia; the next day, Moscow lifted the pro­ political committees. Later, Milovan Djilas told hibitions on Tito's men in Soviet Russia. It is high U.D.B.A. officials that Malenkov had praised

264 THE FREEMAN the Titoists for resisting Stalin's excesses, and Army, -and the West would hardly be inclined to for "never betraying the basic principles of Lenin­ restore Tito's dictatorship after "liberation." More ism and ren1aining consistent Communists." At likely than either of these eventualities, in Tito's about the same time, at a meeting of the Com­ eyes, is a steady growth of Communist power in munist organization of the Yugoslav General Staff, western Europe, the Middle East, and Asia, which General Otmar Kreacic hailed Malenkov's reversal might outflank a Western-oriented Tito and would of old Stalinist policies in 'the satellite !Countries. reduce his bargaining power with both sides. One of the major points on which Malenkov has reversed Stalin's policies---'the Yugoslavs believe­ The E,ager Generals is the Communist strategy toward the Socialist parties. Where Stalin concentrated on attacking 3. Tito's army prefers Soviet Russia. For Yugo­ the Socialists, Malenkov believes in converting slav military men, Communist or non-Communist, and confusing them. The Yugoslav Communists Russia has always been the tractitional ally. More­ regarded Stalin's policy as tactically stupid; after over, a large part of Tito's officer corps was trained their 'excommunication, they consciously wooed in Russia, and views Soviet strategy and tactics Socialists everywhere. Now, in his July report to as models for modern warfare. Admiration for U.D.B.A. officials, Djilas said that Malenkov recog­ men like Marshal Zhukov has 'always been high. nized Tito's superior wisdom on this question: The Montenegrin generals are an especially strong pro-Russian element. Both Vukmanovire-Tempo and It is thanks to our policies, not Stalin's, that the the head of the Yugoslav General Staff, Gener'al Socialist parties of Asia have so strongly resisted the capitalists, especially America, and have been Peko Dapchevich, are Montenegrins; both visited so friendly to the Chinese Communists.... We have the United States this year and came back to shown that an independent Communist party like Yugoslavia most impres,s.ed. Last spring Dapchevich ours can do much more for the cause of world Com­ told a meeting of the Communist organization of munism than a satellite party obviously directed by the General Staff that rabid American capitalists, a commission of Russian Communists. Russia now understands this. .despite their talk of peace, were ready to unloose a genocidal war against Russia and her satellites 2. Tito believes the West cannot win. The Yugo­ at the slightest provocation; in such a war, he said, slavs regard the stalemate in Korea, the growth he could never rally the Yugoslav Army against of Red China as a military power, the growing Russia. Dapchevich went on to criticize Ame'rican disintegration of France and Italy, the ill feeling military leaders, contemptuously comparing them between Britain and America as signs that the to Nazi generals and adding: "The only difference Western world is undergoing a severe crisis. is that Hitler's generals knew how to fight." He Yugosl'av generals believe that France can never pointed to the aid Russia w'as now giving the win in Indo-China; talks with leaders'of the British sat,ellitearmies, gnd ur,ged a new Yugoslav-Russian Labor Party, Clement Attlee and Aneurin Bevan, alliance. have convinced Tito that Britain will not follow Dapchevich was not the only military leader Eisenhower in an aggressive, anti-KremUn policy. offering such counsel. Once M'alenkov had made it After the Korean ar'mistice was signed, a Politburo clear that he was allying himself with Soviet -gen­ member told a group of high Army officers: erals like Zhukov, the pro-Russian sentiments of "The war in Korea has proved that American Yugoslav military men- were given full rein. Even political leaders and generals are in utter dis­ after J osipovic's mission to Moscow in April seemed a,greement. . .that America did not dare to use to have failed, the generals continued to press Chiang Kai-shek against the Chinese Communists Tito for an accord with the Kremlin. When, 'a ... that Ameriica was forced to spend fifteen little later, the Politburo formally polled the' gen­ dollars for every dollar China spent. The war has erals on over-all Yugoslav poUcy, 65 per cent con­ shown that nothing can be done in Asia without demned Tito's collaboration with the West, and the Soviet Union and China, which are the two urged a return to Moscow's fold. main pow-ers in Asia and have the respect of the As a matter of fact, the eagerness of the generals Asi'an peoples. From the Communist point of vie'w, was felt to be a handicap by the Yugoslav Com­ the war was harmful because it tended ito unify munists in the early stages of negotiations with the capitalist powers; for that reason, it was neces­ Moscow. Some party leaders ev,en suggested throw­ sary to stop it. The Soviet Union showed great ing the army off the scent. If Malenkov knew wisdom in the ,termination of the war." how eager the army was, the party leaders rea­ Even disregarding Tito's dedication to Com­ soned, he would demand all sorts of internal con­ munist ideals, he has little to gain-in the long cessions from Tito's regime and this might even­ run-from his alliance with the West. Should the tually lead to outright Soviet control of Yugoslavia. West come to terms with Malenkov, neither side And if Tito refused these concessions and somehow would be too interested in propping up his regime, word of the negotiations got out to the We'St, either politically or economically. Should there be he and his party leaders might find themselves war, Yugoslavia could not long resist the Soviet completely isolated.

JANUARY 11, 1954 265 No such deception of the Yugoslav generals was Item: Tito stubbornly refuses to 'enter N'ATO necessary. With Beria's defeat both Malenkov and and to permit the United States to establish hases Tito were ready for the final agreement, consum­ in Yugoslavia. mated by Vukmanovic-Tempo in Moscow. By the time Andrei Vishinsky dIned with mem­ These were the three main reasons for Tito's bers of the Yugoslav U.N. delegation in October, return to the Kremlin camp. But the signs of the the Yugoslav people were convineed that Tito had new Moscow-Belgrade alliance were evident in achieved his goal of rapprochement with Moscow. scores of lesser actions reported by our informants. They felt this despite elaboraJte precautions taken Among thes,e developments are: by Tito's security apparatus to conceal the new link. Item: Scores of former me'mbers of the Yugo­ The change in the atmosphere of Yugoslavia was slav Communist Party, who sided with Stalin apparent to all the discerning Yugoslavs to whom against Tito in 1948, have been released from I spoke in the course of my two months' investiga­ prison and restored to good jobs. tion. Everyone of the Yugoslavs who crossed the Item: Former pro~Stalin Yugoslav leaders, who Austrian, Greek, or Italian borders to speak with fled for their lives to the Cominform countrieis in me had the saime comment, for example, on Tito's 1948, have now returned to Yugoslavia. agitation on Trieste: "It is Moscow's work." Even Item: The anti...;Tito school which the Kremlin the small group who doubted that Tito has already ran in Budapest for five years was disbanded at signed a pact with Moscow have no doubt that he the end of June. has tried to do so, and say it is only a matter of Item: The flow of anti...:Tito propaganda which time before a finalagreement is rleached. had been pouring into Yugoslavia from Rumania, Many iIi the West were skeptical in April 1939, Bulgaria, and Hungary has ceased. when Soviet General Walter G. Krivitsky described Item: The Yugoslav Communist Party has de­ the long history of negotiations bet'ween Stalin and cided to purge some 50,000 members, whom it Hitler, who had seemed mortal foes for many years. des'cribed in a circular letter at the end of the This skepticism was dashed on August 23, 1939, sum,mer as "vacillating 'elements who have suc­ when Molotov and Ribbentrop publicly signed the cumbed to the influences of the West and nourish Nazi~Soviet Pact. And, in the present case, Tito and illusions tow'ard the capitalist countries." Malenkov are both Communists.

Disorder at the White House

Lf1;,ck of l,egal control over the Office of the By C. DICKERMAN WILLIAMS President has crea.ted a "palace" clique whose influence ·menaces ,constitutional ,governm,ent.

Those who have served in the executive branch of that completely negates the doctrine of ,a "govern­ the government in recent years are only too ment of 'laws and not of men." familiar with a phenomenon which may be the It would be comforting to conservatives to be explanation of the Harry Dexter White case. That able to think that this state of affairs had dis­ phenomenon is the enormous growth in the per­ appeared with the advent of the Republicans, but sonnel and influenc'e of the Office of the President. the av'ailable evidence is that with minor excep­ The government has become so complex and the tions the situation persists and may indeed have demands upon the President so numerous and so grown wor,se, due to Pr'esident Eisenhower's un­ varied that he has built up a large personal organ­ familiarity with domestic politics. To illustrate ization 'which, because of its constant and ready the problem, let us recall some of the features access to him, has a'cquired great power. Apparently of the White case. through their advice the President has been led Aecording to former President Truman the com­ to adopt positions or courses of action without mission to White was issued in order Ito avoid en­ notice to or approval by the departments lawfully dangering investigation of the Silvermaster spy concerned. Undoubtedly this development is to . ring. But who told Mr. Truman that such a course some extent unavoidable, but its inherent evils of 'action was necessary or desirable? It is hardly have be'en sh'arply accentuated by the almost com­ conceivable that he reached such a conclusion un­ plete laek of legal control over the Office. In other less so advised by one or more of his 'associate's. words, this siwarm of officials ope~ates largely on the Yet the ev.idence so faravailaJble does not identify loose, without regula'tion or responsibility, in a w,ay any adviser who took this view. J. Edgar Hoover,

266 THE FREEMAN who was in charg'e of the investigation, has ex­ sistant to the President from 1939 until he was pressly denied giving such advice. Secretary Byrnes dismissed on June 30, 1945, has appeared repeat­ s'ays that after his interview with the President edly in te'Stimony concerning the Silvermaster he was left with the impression that the President espionage ring. White testified that Currie was would forestall the appointment. Attorney-General his good friend. They had taken graduate economics Clark, we learn from both Messrs. Hoover and at Harvard at the same time; both had entered the Caudle, wanted to prevent White's assumption of Treasury Department as economists in the year office. Secretary Vinson, too, Mr. Hoover says, was 1934 and "had had brilli'ant careers in government against the appointment, although he feared that thereafter. May not Currie during his six years the Senate's confirmation had given White a legal at the White House have sponsored the employ­ right to the commission, a very different consid­ ment there of Communists or fellow-travelers in eration from the possibility of danger to the suc­ positions that would be' minor apart from their cess of the investigation. (Incidentally, there are close association with matters of transcendent two formal and most persuasive opinions by At­ importance? Also, Mrs. Roosevelt and Harry Hop­ torney General Stanbery that the President may kins were at times friendly with Communists. May reconsider an executive appointment after Senate not the same question apply to them? And if Com­ confirmation. And there are no court decisions to munists ,got in, when were they put out? If they the contrary. Secretary Vinson',s fear would not w,ere ,still there they may have had an opportunity hav,e survived legal research.) to effectuate the White appointment. Now it is also clear that Mr. Truman lacks a If one of President Truman's im,mediate entour­ keen recollection of the incident. His first comment age advised him on the White affair in the press of was that he had never read an FBI report on White House iactivity, it ,might well have slipped his White; his second, that White had been dismissed mind. President Truman did not at first even re'col­ as soon as it became known that he was disloyal. lect his :meeting with Secreta'ry Byrnes. His telecast explanation was obviously a recon­ Further, it has been reported that the President structionmade after 'a study of the records. With must sign six hundred documents a day. He can the best will in the world it is extremely difficult hardly read 'each one carefully. Conceivably some to be accurate under such circumstances. The diffi­ employee, without the President's knowledge, may culty would be acute for anyone who at the time have designedly or carelessly put the White com­ had ,been living the crowded life of the President mission in the pile of documents for his signature. of the United States and would be doubly so if Also, it wa,s rumored in Washington during the Tru­ the' reconstruction were attempted under the pres­ man Administration that the President had author­ sure that existed in this case. ized a clerk to sign his name to relatively unim­ The theory that President Truman would wilfully portant personal correspondence in a script re­ disregard such a report is also untenable. What­ sembling the President's own. The possibilities of ever Mr. Truman's shortcomings, the Communist abuse of this practice, if it existed, ,are obvious infiltration of the government took place under and w'arrant conjectur,e that the Isignature to the the Roosevelt Administration, not the Truman Ad­ White commission was forged. ministration. Undoubtedly during the Truman Administration a number of 'agencies were not Why Regulation Is Required sufficiently prompt and vigorous in removing Communists, but so far as this writer is aware all How valid these speculations are in relation to government employees who had been identified as the White case is unknown, but whether they are spies were dismissed sooner or later and before valid or not, they should serve to direct attention the end of the Administration. to the dangers flowing from the growth, power, and In short, the departments with responsihility were unTegulated character of the Office of the President. unanimously in flavor of one oourse of action, 'and At the inauguration of President Hoover in 1929, yet 'another, and extraordinary, course of action the President had a staff of forty-two; in the was adopted. last days of the Roosevelt Administration the The following explanation seems possible: that "Offiee of the President" had a personnel of 597; some employee of the Office of the President, at the end of 1952 the number had increasled to secretly 'a Communist sympathizer and not yet 1,181. identified, may have secured the President's signa­ The Constitution requires the "Advice and Con­ ture by unscrupulous advice or by s,tealth. sent of the Senate" to the appointment of all Communist penetration of the Office of the Pres­ ",Officers of the United States," except that Con­ ident during the Roosevelt Adminis,tration, not gress m1ay in its ,discretion dispense with this re­ rooted out by 1946, is a possibility that cannot quirement in the case of "inferior Officers." The be lightly dismissed. The Communists sought to influence derived from access to the President penetrate every organization of importance: would of the United States makes the members of the they have ignored the Office of the President? White House staff anything but "inferior Officers." The name of Lauchlin Currie, administrative as- It is indeed anomalous that Senate confiTmation is

JANUARY 11. 1954 267 not required for such a powerful office as Director jurisdiction of which the Whiitle· case is apparently of the Budget, who reviews the proposals of an example. The most notorious during the Truman members of the Oabinet, but is necessary for the Administ~ation was Presidential ;a,ssistant Steel­ appointment of a second lieutenant in the regular man's usurpations in the field of labor, through army, the postmaster of a village, or a sanitary which the Department of Labor was 'eliminated engineer in the Health Service. It is similarly from formulation of lahor poHcy; the most continu­ anomalous that Senate confirmation should be re­ ally irksome to the departments generally was the quired for the assistant secretaries of the ex'ecu­ meddling of the Bureau of the Budget (cf. tive departments and not for the assistants to the Forrestal Diaries, pp. 237, 429 et seq.) There were President. How are the latter "inferior" to assis­ many others, and in addition, much internal fric­ tants to members of the Cabinet? Congress should tion and intrigue. require Senate confirmlation of all the principal It may Ibe ,asked,Wihy should the·President not employ,ees of the Office of the President and limit consult anyone he wants? There is, of course, no ,their tenure, albeit with eligibility for reappoint­ reason why the President should not consult any 'mente member of the general public whose opinion he Again, Congress has ,strictly specified the com­ respects. The need for control over his advisers pensation, or the standards of compensation, of all relates to government officials. History has re­ government officers and employees from the highest peatedly demons'trated that when a chief of state to the low'est-all, tha,t is, with one exeeption: the is surrounded by irresponsible officials working employees of the White Housel. For them Congress behind the scenes and without known responsibil­ customarily appropriates large lump sums to be ities, the effect is sinister. Again and again the paid "at such per diem rates for individuals as the influence of the "palace," or the "court," on the President may specify, and [for] other personal chief of state brought about catlastrophe in the services without regard to the provisions of law histories of Great Britain, France, Russia, Rome, re,gulating the employm'ent and compensation of the Ottoman Empire, and other countries. Inordi­ persons in the governm,ent service." Although it nately ambitious men 'and women, whose personal cannot be said that any Pre,sident has abused this fortunes were entirely dependent on the chief of power, this provision, by eff.eetinga delegat'ion of state, urged that he should assert himS!elf by the legislative power of appropriation without limit­ extreme or imprudent ac'tions despite the contrary ing standards, seems unconstitutional. Certainly i,t views of responsible ministers or legislative or is an abdication of. the "power of the pursle," long popular leaders. The result was rash policy leading considered the most vital safeguard against to disaster. arbttrary government. In Great Britain it was determined at the cost Perhaps the most important area in which the of two revolutions that the chief of state must Office of the President requires regulation-and accept the advice of the legislature. Recognizing this bears directly on the White case-is the the difference between an hereditary monarch and specification of duties. The jurisdiction, duties, and an elective President, the fra,mers of the Consti­ powers of the departments, bureaus, and other tuition adopted a much les'S stringent control over ~gencies are in general carefully defined by Act of our chief of state. For almost a hundred and fifty Congress. But the Office of the President has never years the President got along without a large been so defined, although some of its units have personal establishment, and acted on the advice of been, such as the Bureau of the Budget. Indeed, officers confirmed by the Senate, with duties and strictly speaking, although the Office, often called compensation prescribed by law, and of such priv1ate the Executive Office, is constantly referred to in citizens as enjoyed his confidence. legal documents, Congress has never created it In late years, however" the President has come as a permanent organization like other govern­ to rely very considerably on personal henchmen. mentagencies. It exist,s as a legal entity only by The available evidence is that they have urged virtue of annual appropriations and a fiat of Pres­ upon him the aggrandizement of his personal power ident Roosevelt. by extreme poIici'es to which many of our present Moreover, there is no public document specifying troubles may be traced. in any detail the duties of the various members of If constitutional government is to be preserved, the White House staff. Anyone who has business to Congress must assert the control over the Office do with, say, the Under Secretary of Commerce for of the President which the Constitution contem­ Transportation can go to the Federal Register and plates. The Commission on Organization of the read a formal departmental order defining that Executive Branch, created by Congress last July, officer's responsibilities at length. President Roose­ should put this subject high on its agenda. velt's order creating the Office of the President Reform should proceed on the basis of friend­ merely provides that the staff shall "assist" him and liness with, and not hostility to President Eisen­ maintain liaison with government agencies, the hower, who, like his predecessor, inherited and press, and the public. did not create this unfortunate apparatus-a fact, The consequence has been repeated excesses of howe¥er, that does not make it less menacin~.

268 THE FREEMAN The Future of the G. O. P.: A Poll

In view of the much-discussed possibility of a to McCarthy, G.'O.P. top brass is sticking to I}(je split in the Republican Party, the FREEMAN sent at present. the foHowing telegr:a,m ito the political editors of Buffalo (N.Y.) Evening News, Jack Meddoff: leading newspapers in all the !states: Internal Republican unhappiness stems from dis­ Do your conversations with state Republican satisfaction with Eisenhower Administration leaders indicate any defection of Republicans [to tardiness in distributing patronage. Also con­ Southern papers we added "and Eisenhower Dem­ siderable G.O.P. uneasiness over Dewey's in-again­ ocrats"] from President Eisenhower as a result of his differences with Senator McCarthy? out-again attitude regarding fourth term can­ didacy for governor. The editors were also asked to mention other issues that in their opinion endangered Repub­ Burlington (Vt.) Free Press, David W. Howe: lican chances in the 1954 and 1956 elections. As party leader Eisenhower should have answered Their replies provide an over-all picture of Truman on Harry Dexter White mess. McCarthy the political climate of the nation which we have recognized as opportunist but not as an issue. found significant beyond the immediate issue. If Ike interested in re-election believe he will In general, other subjects ,seem to 'be ,as pressing, exercise more authority soon and delegate less. and even more important than the Wisconsin Charleston (S.C.) News and Courier, Frank B. Senator, notably farm prices, failure to remove Gilbreth: Truman holdovers, failure to lower taxes and President's dispute with IVlcCarthy has little balance the budget. The South expresses some­ practical effect on rank and file of voters. Many what less concern over the Eisenhower-McCarthy independents who voted for Eisenhower are dis­ differences than over Attorney General Brown­ appointed that Brownell entered school separa­ ell's entry into the school nonsegregation case tion cases. They thought Eisenhower stood for before the Supreme Court. states' rights. Because of space limitations we are unable to print all the replies. In selecting representative Cheyenne (Wyo.) State Tribune, Keith Osborn: excerpts we have endeavored to cover fully the Most Wyoming Republicans believe McCarthy is opinions expressed. doing a necessary job in uncovering Communist influence in government. Unless an all-out battle develops over the foreign policy aspect of the Albuquerque, (N. Mex.) Journal, Wayne S. Scott: matter, Wyoming Republicans do not feel there Eisenhower-McCarthy almost unnoticed in New is a question of being forced to choose between Mexico. Some dissatisfaction with Eisenhower in Eisenhower and McCarthy. No indications of any handling of emergency drought program... (But) defections so far. Most Wyoming farmers and farmers and ranchers still oppose 3 to 1 price ranchers are Republicans and are presently sup­ supports for livestock. porting Secretary Benson. But unless the situation improves in 1954, it could weaken the G.O.P. Birmingham (Ala.) Age-Herald, John Temple Graves (column syndicated to 35 other Southern Chicago (Ill.) Daily News, John M. Johnston: dailies) : Most Republicans·are somewhat schizophrenic on Dissatisfaction with Eisenhower among conser­ the subject of McCarthy, loving him much less vatives here results more from Brownell's inter­ for himself than for the damage he does to the ference in segregation cases than McCarthy other side. The organization Republicans always quarrel although latter a factor as reflecting took Ike mainly because of his box-office appeal Eisenhower line-up with much disliked Dewey ... rather than his Republicanism if any. Dearth of If Alabama conservatives have to choose between good G.O.P. candidates for U.S. Senate is a more Dewey and Stevenson they will choose Stevenson. serious matter.... Boise (Idaho) Statesman, John Corlett: Dallas (Tex.) News, Allen Duckworth: See no additional defection among Idaho Repub­ President Eisenhower may have slipped a bit in licans result of McCarthy-Eisenhower feud. Great Texas, but probably would carry state if elec­ majority of Idaho G.O.P. leaders were for Bob tion held tomorrow. McCarthy matter has had no Taft before 1952 convention. They will stand by effect. Republican farm policy is big ammunition Eisenhower although they do not agree entirely f or attack on Administration. with his policies. Denver (Colo.) News, Morton L. Margolin: Boston (Mass.) Post, Charles D. Roche: No split apparent now or in making in Colorado Although state Catholic vote strongly sympathetic among Republicans as a result Eisenhower feud

JANV•.<\RY 11, 1954 269 with McCarthy. Many ardently express appre­ under Truman-Acheson; that the budget will still ciation for McCarthy's bringing Communism into be out of balance next year, and that Eisen­ open. .. Split if any will be along old Taft-Ike hower's advisers are trying to soft-pedal the lines.... issue of Reds in government.

Des Moines (Iowa) Register, George Mills: l\'lanehester (N.H.) Union Leader, Frank O'Neil: Can't see the McCarthy issue making much differ­ Many Republican leaders, including Governor encevotewise, at this time anyway. One leader Gregg, feel strongly that Eisenhower not giving says: "I'm enjoying the scrap because it gives enough support to McCarthy. .. Don't believe us something else to talk about besides farm existing split in ranks will have effect on election prices." next year.

Hartford (Conn.) Courant, Jack Zaiman: Miami (Fla.) Herald, John B. McDermott: I'd be amazed to find anyone leaving Eisenhower If election held today, political observers believe if a real split developed with McCarthy. Florida again vote Eisenhower. However, were any, other Republican to run, state probably Indianapolis (Ind.) Times, Irving Leibowitz: go Democrat. McCarthy is viewed by Florida Long'before President Eisenhower aimed his fire "Eisencrats" as necessary evil. They accept facts at Senator McCarthy, the Taft Republicans were he exposed Communists in government and thereby feuding with the Ike supporters. The Taft wing did party great service. They regret and deplore regards Senator McCarthy as one of their very his publicity-seeking' methods. own.. They respect him and call on him at com­ paign time.... All G.O.P. leaders agree the Ike­ Milwaukee (Wise.) Sentinel, Cyrus F. Rick: . McCarthy controversy has hurt the party. The Feud is mostly blown up byWedhslers, 'Restons, and) Indiana G.O.P. controls ten of eleven congres­ other anti-McCarthyites, anti-Eisenhowerites, and sional seats. Republican leaders fear they'll anti-Republicans who want to see Ike-Joe at each lose five.... other's, throats.

Indianapolis (Ind.) Star and News, Eugene Minneapolis (Minn.) Star, Wallace Mitchell: Pulliam: Republican state central committee voted, 50 to No dissension in Indiana on account of McCarthy. 18, approval of Eisenhower-Dulles foreign policy. Leaders here recognize Eisenhower is stronger Objections came from Taft-minded committee than party and that candidates for congressional members. .. Eisenhower Republicans are firmly seats must campaign on support of Eisenhower. in control of party here... It would take a start­ Of even more importance is how Administration ling change in public opinion to threaten any of handles farm problem. As of now Indiana Farm the five RepubHcan congressmen up for re-elec­ Bureau supporting Benson's program. tion in 1954. Jackson (Miss.) Clarion-Ledger, Charles M. Mills: Oklahoma City (Okla.) Daily Oklahoman, Otis Most of the conservatives who went to Eisenhower Sullivant: in 1952 did so as a move against Truman. Now Ardent adherents of McCarthy were for Taft in these selfsame conservatives are taken aback by 1952, went along with Eisenhower for President the Eisenhower-Brownell stand on segregation. in preference to a Democrat, and still will. Eisen­ There are still, of course, some Eisenhower fol­ "hower has lost some ground because of drought, lowers who say Ike inherited a mess and is mak­ economic conditions, and blow to cattlemen and ing the best of it. But even they are melting in farmers. However, more of the fire is turned on the face of the segregation issue. Benson than Eisenhower. Lo'uisviIIe (Ky.) Courier-Journal, Thornton Con- nell: Portland (Ore.) Oregonian, Mervin Shoemaker: If there is any Republican defection it is expected There is some evidence that McCarthy has re­ to come largely from the farm element because cently been alienating erstwhile followers with of the drop in farm prices under Republican such tactics as his call for telegrams. They now Administration. more clearly see McCarthy and Eisenhower dif-, " ferences. Madison (Wise.) State Journal, Sanford Goltz: Wisconsin G.O.P. leaders, largely Taft supporters Providence (R.I.) Journal and Bulletin, David M. hi 1952-and strong for McCarthy then and now­ Cameron: snort at the out-size proportions to which the McCarthy's Rhode Island friends appear to be Ike-Joe scrap has been blown by Washington willing to stick with Eisenhower for now, although newsmen ·and commentators... But they are they feel that the President could be more aggres­ disturbed at grass-roots comment that foreign sive in routing whom they consider subversives policy looks the same· under Ike and Dulles as out of federal government.

210 THE FREEMAN 'Raleigh (N.C.) Associated Afternoon Dailies of near and other G.,O.P. leaders are worried that North 'Carolina, Lynn Nisbet: unless the McCarthy dispute is brought under North Carolinians who voted for Eisenhower are control serious damage will be done. disappointed at slowness of desired clean-up in national government. There is considerable re­ Sioux Falls (S.D.) Daily Argus-Leader, Anson sentment here against Benson farm program and Yeager: ar~ the Brownell segregation stand. These incidents ... South Dakotans more concerned about are more influential on North Carolina sentiment the price support program for agriculture than than McCarthyism or Communism. they are about McCarthy. Richmond (Va.) News Leader, Jack Kilpatrick: Topeka (Kans.) Daily Capitol, elif Stratton: Eisenhower is losing ground in the South-but Dulles-Eisenhower vs. McCarthy foreign policy not because of McCarthy. We are all het up down feud looks like final blow to Republican chances. here about the school segregation cases, in which Party leaders in bitter split. •. Falling farm Brownell has intervened.... The President also prices also are a worry. ... is losing some support by reason of his continued unbalanced budgets... Eisenhower hasn't exactly Tucson (Ariz.) Arizona Daily Star, William R. out-Trumaned Truman in foreign policy; it's Matthews: rather that he hasn't done much of anything to ... Eisenhower has lost strength, not on account get away from Truman policies. ... McCarthy, but because of his own disinclination to lead, his on-a'gain-off~again opinions, and ob­ Seattle (Wash.) Times, Ed Guthman: vious conflict where the White House Secretariat State Republican Chairman George Kinnear says one thing and various Cabinet members make snatched Washington from the Taft column and conflicting statements.... Much of McCarthy's put it behind Ike. Some bitterness still remains. support comes from growing distrust of the In Spokane, Taft's strongest area, the Republican eastern leadership of both parties and the in­ county chairman has been forced to resign. The clination of American people to follow a leader, two factions are engaged in a hard fight for con­ even when they dis,approve of many things that trol. There are no McCarthy overtones yet. Kin- he does.

Free Economy and Social Order

A 110 efut(t!tion of 'the popularly held theory that the By WILHELM ROEPKE m,a1'"keit economy ia;s a rrneretechnic,al device can thrive inn society which is in all other respect$ socialist

Most of us, and all of us most of the time, deal market economy as a technical device capable of with the ,market economy as a definite type of being built into a society which, in all other re­ economic order, a sort of "economic technique" as spects, is socialist. The market economy then ap­ opposed to the socialist "technique." For this view, pears as part of a comprehensive social and political it is significallt that we call its constructional prin­ system which, in its conception, is a highly central­ ciple the "price mechanism." Here we move in the ized colossal machinery. In that sense, there has world of prices, of markets, of supply and demand, always been a sector of market economy also in of ;competition, of wa'ge rates, of interest rates, of the Soviet system, hut we all realize that this sector exchange rates, and what not. is a mere gadget, a technical device, not a That·· is, of course, right and proper-as far as living thing. Why? Because the market economy it goes. But there is a great danger of overlooking as a field of Uberty, spontaneity, .and free coor­ an important fact: the market ,economy as an dination cannot thrive in a social system which is economic order must be correlated to a certain the very oppos:ite. structure of society, and to a definite mental That leads to my first main proposition: the mar­ climate which is appropriate to it. ket economy rests on two essential pillars, not on rhe success of the market economy wherever it one alone. It assumes not only the freedom of prices has peen restored.in our time-most conspicuously and competition (whose vir,tues the new social­ in western Germany-has resulted, even in some ist adepts of the market economy now reluctantly socia;list circles, in a tendency to appropriate the acknowledge), but rests equally on the institution

JANUARY 11, 1954 271 of private property. This property must be genuine. where certain elementary things are respected and I t must comprise all the rights of free disposal are coloring the whole life of the community: in­ without which-as formerly in Nationalist Social­ dividual responsibility; respect of certain indis­ ist Germany and today in Norway-it becomes an puta:ble norms; the individual's honest and serious empty legal shell. To these rights must be added struggle to get ahead and develop his faculties; the right to bequeath property. independence anchored in proper:ty; responsible Property in a free society has a double function. planning of one's own life and that of one's family; It means not only that the individual sphere of thriftiness; enterprise; assuming weB-calculated decision and responsibility is, as we have learned risks; the sense of workmanship; the right relation as lawyers, demarcated against other individuals, to nature and the community; the sense of con­ but it al,so means that property protects the in­ tinuilty and tradition; the courage to brave the un­ dividual ~phere against the government and its certainties of life on one's own account; the sense ever-present tendency toward omnipotence. It is of the natural order of things. both a horizontal and a vertical boundary. And it is Those who find aU this contemptible and reeking in this double function that property must be of narrow-mindedness and "reaction" must be understood as the indispensable condition of liberty. seriously asked to reveal their own scale of values It is curious and saddening,to see how blind the and to tell us what kind of values they want to ,av1erage type of ISocialist is vis-a.-vis the economic, defend against Communism without borrowing moral, and sociological functions of property, and ideas from it. even more that particular social philosophy in That is only another way of saying that the which property must be rooted. In this tendency market economy supposes a society which is the to ignore the meaning of property, socialism has opposite of a "proletarianized" one, the opposite made enormous progress in our time. Traces of of a mass society-with its lack of a solid and this may be discovered even in modern discussion necessarily hierarchical sltructure, and its corre­ on the problems. of enterprise and management, sponding sense of being uprooted. Independence, which sometimes give the i,mpression that the property, individual reserves, natur,al anchors of property owner is the "forgotten man" of our age. life, saving, thrift, responsibility, reasonable planning of life, all these ar,e alien to such a The Role of Private Property society. They are destroyed by it, at least to that eXltent that they cease to give the tone to society. The intellectual constructions of "market social­ But we must realize that these are precisely the ism" are a good example of how the most serious conditions of a durable free society. fallacies ensue if we overlook the functions of The moment has come to see 'clearly that this is private proper1ty. These fallacies can already be the real w'ater,ghed of social philosophies. Here the demonstrated on the level of ordinary economic ul1timate parting of ways takes place,and there analysis. But I wish to suggest that it is the whole is no getting around the fact that the concepts and social climate, the form of life, and the habits of patterns of life which clash against each other in planning for life, which matter. this field are decisive for the fate of society, and There is a definite "leftist" ideology, inspired that they are irreconcilable. by excessive social rationalism, as opposed to a 'Once we admit this, we must be prepared to see "rightist," conservative one, respecting certain its signi'ficance in every field and to draw the cor­ things we cannot touch, we'igh, or measure but responding conclusions. It is indeed remarkable to which are of sovereign importance. The real role of see how far we all are already drawn into the habits property cannot be understood unless we see it as of thinking of an es'Sentilally unbuergerliche world. one of the most important e~amples of something That is a fact which the economist'S also ought to of much wider signifieance. It illustrates the fact take to heart, for they are among the worst sinners. that the market economy is a form of economic Enchanted by the elegance of a certain type of order that is correlruted to a concept of life and a analysis, how often we discuss the problems of socio-·mor1al pattern which, for want of an appro­ aggregate savings and invest,ments, the hydraulics priate English or French term, we may call of income flows, the attractions of vast schemes of "buergerliche" in the wide sense of this German economic stabilization and of social security, the word, which is largely free of the dispara,ging beauties of advertising or installment credits, the associations of the adjective "bourgeois." advantages of "functional" public finance, the 'This buergerliche foundation of the market 'progress of giant enterprise and ~hat not, without economy mUSlt be frankly acknowledged. All the realizing that, in doing so, we ta~e for granted a more so because a century of M1arxist propaganda society which is already largely deprived of those and intellectualist romanticism has been astonish­ buergerliche conditions and habits which I de­ ingly and alarmingly successful in spreading a scribed. It is shocking to think: how far our minds parody,of this concept. In faict, the market economy are already moving in terms of a proletarianized, can thrive only as part of and surrounded by a mechanized, centralized mass society. It has become buergerlichesocial order. Its place is in a society almost impossible for us to reason other than,' in

272 THE FREEMAN terms of income and expenditure, of input and out­ Another example of this gradual dissolution of put, having forgotten to think in terms of property. the meaning of property, and of the corresponding That is, by the way, the deepest reason for my own norms, which can be obS'erved in many countries, fundamental and unsurmountable distrust in Key­ is the softening of the responsibility of the debtor. nesian and post-Keynesian economics. IBy lax legal procedure with regard to execution and It i,s, indeed, highly isignificant that Keynes at­ bankruptcy, this, more often than not, amounts­ tained fame mostly for his trite and eynical remark in the name of social justice-to the expropriation that "in the :long run, we are all dead." And it is of the credi:tor. It is hardly necessary to recall, in even more significant that so many contemporary ,this connection, the expropriation of the hapless -economists have found this dictum particularly class of house owners by rent control, and the spiritual and progressive. But let us remember that effects of progressive taxation. it only echoes the.slogan of Ithe Ancien Regime in Let us apply our reflections to another most im­ the eighteenth century: Apres nous le deluge. And portant field: 1noney. Let us recognize that respect let us ask why this is so significant. Because it for ·money as something intangible is, like property, reveals the decidedly unbuergerliche, the Bohemian an essential part of the social order and of the spirit of this modern trend in economics and in 'mentality which are the prerequisites of the market economic policy. lit betrays the new hardboiled economy. happy-go-luckiness, the tendency to live from hand To illustrate my case, I want to tell two stories to mouth, and to make the style of the Bohemian which I ita~e from the financial history of France. the new watchword for a more enlightened genera­ At the end of 1870, Gambetta, the leader of the tion. To incur debts becomes a positive virltue; to French Resistance after the defeat of the 8econd save, a capital sin. To live 'beyond one's means, as Empire, left the besieged capital in a balloon for individuals and as nations, is the' logical conse­ Tours to create Ithe nevv republican arTIlY. In his quence. But what else is this than Entbuergerli­ desperate need for money, he remembered that his chung, deracination, proletarianizaHon, nomadiza­ admired predecessors of the Revolution had financed tion? And is nOit this the very opposite of our their war,s by printing and assignats. He asked the concept of civilization which is derived from civis, r'epresent'ative of the Banque de France to print the Buerger? for him a few hundred million notes. But hemet Muddling through from day to day and from one with a flat and indignant refusal. At that time, expedient to another, to boast that "money does such a demand was considered so monstrous that not matter"-that is, indeed, the opposite of an :Gambetta did not insist. The Jacobin firebrand and honest, diseiplined, and orderly concept and plan -all-powerful dictator yielded to the determined No of Hfe. The income of people living on these lines of the representative of the Central Bank who may have become buergerlich, but their style of would not accept even a supreme national emer­ life is still proletarian. gency as an excuse for the crime of inflation. A few months later, the socialist revolt known as A Growing Concept the Commune occurred in Paris. The gold reserves and the plates of the notes of the B'anque de It is clearly impossible in the space of a short France were at the mercy of the revolutionaries. article to study the impact of all this in all the But, badly in need of money and politically un­ important fields. I have discussed it in regard to scrupulous as they were, they strongly resisted the private property. It is further very disquieting to temptation to lay their hands on them. In ,the very see how this concept has perme·a:ted more and more midst of the flames of civil war, the Central Bank the economic and social policies of our time. One and its money were sacrosanct to them. major example is the Mitbestimmungsrecht (eo­ The significance of these two stories ,vill not determination-the right of workers and trade­ escape anyone. It would, indeed, be harsh to ask union representatives to participate in the admin­ 'what has become of this r,espect for money in our istration of industrial enterprises and thus to take time, not least of all in France. To restore this over some functions of proper ownership) in West respect and the corresponding discipline in money Germany. To ,give an illus:tration: the director of a and credit policy is one of the most important con­ large power plant in Germany teHsme how silly he ditions for the durable success oiall our efforts felt the other day when, in wage negotiations with to restore and maintain a free economy and, there­ trade-union officials, he had to deal with the same with, a free society. men who, at the same ti'me, sit beside him at meetings of trustees of the power plants them­ selves. He adds that the structure of enterprises in Wiest Germany approaches more and more that We just wonder if the Communists, should they suc­ which Tito seems to have in mind. And that is ceed in o,verthrowing our government and establish­ happening in the very country which is considered ing their ou'n system, will abolish the U.S. Con­ today the model of a .successful res!toration of the stitution in its entirety, or retain the Fifth Amend­ free market economy! ment as a precious memento. ARGUS

JANUARY 11, 1954 273 Men to Remember My Friend E. W.

A personal memoir of the "k.indly-outr,ageous" ma,gnate who By MAX EASTMAN founded the Scripps-Howard p1apers' an:d the Uni,ted Press

He was tall, lanky, blotchy, eopper-headed, had quizzically through the smoke, laying down the a cast in one eye, and looked like a pirate when law as though he knew everything on all subjects, he got mad. He made powerful enemies in Cleve­ and yet as strongly intimating-whether with the land with his penny Press, which opened an era in intellectual mirth in his eyes, the deprecating American journalism by publishing the' truth reck­ gestures, the occasional wistful question-that, like lessly, cheaply, briefly, and from the workingman's the rest of us, he probably knew nothing at all. viewpoint. Every once in awhile, he would get up and walk iOne day during a law suit, in an antechamber of over into an 'alcove and come baek with a man­ a Cleveland courtroom, a mob incited by his rich uscript. It would be a "Disquisition" by himself enemies ha,cked him into a corner. Somebody on the subject we were discussing. He would read screamed : "He's goin' to shoot!" (which was true), it to me with an expression of delighted surprise and he found himself alone. Looking in a mirror at the wisdom he found in it-a surprise which I afterward, he wondered whether it was the gun fully shared. Scripps had a mind like Montaigne's or his ferocious appearance that saved his life. -fertile, discursive, full of extremely rational I think: it was his appearance. He pulled that gun doubts and 'speculations about everything under a good many times, but never had to shoot. He the sun. And though he laeked the sublime gift was a mental and moral athlete, but physically of language, his Disquisitions had the s'ame qual­ soft, with slim weak hands like a woman's-a ities of personal -candor, intellectual daring, and frightening 'Combination, especially when a gun ultimate unanswerable doubt that Montaigne's is in the hands. Essays have. But instead of publishing them, he E. W. Scripps was nearing sixty when I met him locked them up in an old black steel box to lie -a multimillionaire and the owner of a chain of there until his grandchildren were grown Up.l thirty newspapers with a eirculation running into minions. I was editing the Masses, a socialist Montaigne may seem far afield, but there is magazine selling 12,000 copies and losing $12,000 certainly no American, least of all among those who a year. Lincoln Steffens told me: "IOld man Scripps attained wealth and power, with whom tooompare might give you some money for your magazine­ him. He was an avowed atheist; he never went to he likes it." It seemed highly improbable to me, church or the theater or a political r;ally or a ball but I was curious to look into his eyes. game; he felt that "whatever is, is wrong"; he had In middle age he had bought a 2,000-acre ranch so low an opinion of mankind, including himself, upland from the sea near San Diego, California, that he cared nothing for their respeet and little built a sixty-room ranch house, and retired there for· their affection; fame he regarded as 'a bauble; to think his thoughts, boss his family, and let his he never even made an effort to win or keep his newspaper empire-except for an occasional pre­ self-respect (so he said); for twenty-five years emptory order over the long distance telephone­ he "consumed enough whiskey to keep three or expand and blossom of its own sweet will. I was four men drunk all the time," and then stopped at the end of a lecture tour, and trekked out from absolutely; he was a far traveler, an omnivorous San Diego in an old Ford car to call on him. I reader, a lover of poetry-much of which he found spent a week, as it turned out-and other weeks in the Bible in spite of what he called "the thereafter. imbecility of Sunday Schools and so-called Sunday 'They were weeks devoted almost entirely to School teachers"; he knew aU the maxims in Poor abstract thoughts. We never took a walk; we never Richard's Almanack and didn't accept ,a one of took a drink; we never went driving. We sat in them; he made it a point to sleep all he could, his study smoking an endless chain of mild, made­ and never got up until he felt like it; he never to-order Key West cigars and talking from three to ten hours at a stretch. 1. Selections from these Disquisitions were published not long ago in a book called Damned Old Crank, and I learned from the editor's I can still se'e the kindly-outrageous old tyrant introduction that I was one of the two or three "respected cronies" sitting there slanting back from his desk, squinting to whom he ever showed them.

274 THE FREEMAN kept books, and regarded the usual set of books work in a day, when there was any occasion for kept by businessmen as "an unbearable nuisance." it, but I was always seeing to it that such occasions And yet he was one of the most successful business­ "vere very rare ... I have spent pretty nearly half men in the entire history of our country. Starting of my waking hours with my eyes on some printed as a farm boy .coming to Detroit with eighty dollars page ... I am sure that from the time I was sewn into the lining of his vest, he died at sea twenty-four, more than half my days have been in a palatial private ya,cht, leaving an estate of .spent with no conscious thought or attention to over fifty million dollars. business of any sort. The practice of journalism He 'worked as a drug clerk, a three-dollar-a-week seems to me, even now, to have been an unimportant office boy, printer',s helper, bill collector, sign­ incident in my life." painter, seller of window shades, solicitor of sub­ In a Disquisition called "Some Outlandish Rules scriptions, newsboy, errand boy, newspaper re­ for Making Money." he wrote: "I doubt if I have porter and rewrite man befor,e he arrived at the directly given a total of five hundred orders to city editor's desk in the Detroit News. The paper all the men employed on my papers. My work has belonged to his half-brother James, but James consisted in selecting a few score men, studying disliked him and disbelieved in him, and he had a each, offering them opportunities, and inspiring harder time getting an editorial job there than them by my talks and letters each to develop what if he had been ,a total stranger. It was only by was best in him to the highest extent." buying a desk, moving into the newsroom, and announcing himself errand boy without salary A few of his aphorisms will suggest the undi­ that he finally achieved it. luted practicality of those "talks and letters": A reason for E. W.'s success was that by the 1. It is possible for a hypocrite, by exercising age of twenty-four he had decided very exactly constant restraint, to appear as good as the most what he was going to do. He made this decision sincere moralist, but it is awfully hard work. in Rome while on a jaunt through Europe paid 2. N'ever do anything yourself that you can get for by anothe-r brother, George, who did like him. someone else to do for you. The more things some­ He shook George one day, and spent the whole one else does for you, the more time and energy afternoon stretched out ona fallen pillar in the you have for the things no one else can do for you. Coliseum. He had dreamed, up to then, of becoming 3. Society owes nothing to any individual. Only a great writer. He decided that afternoon to becom,e that human being who can support himself or her­ a great power instead. He would build a news­ self is entitled to a place in the world. paper kingdom. Others could do the writing and 4. Never hate anybody. Hatred is a useless ex­ have the glory; he would stay in the background, penditure of mental and nervous energy. unknown, unacclaimed, 'but with rubsolute control. 5. Be diplomatic, but don't be too damned dip­ He would never sell bonds or controlling shares lomatic. It is rare indeed when circumstances are in his newspapers. He would never invest in any­ such that a conscientious man can lose anything thing but more newspapers. He would keep his aim by fearless, frank speech and writing. clear and his kingdom independent. E. W. was especially fearless and frank about his Another reason for his success is that he clearly illicit love life, and always insisted on such frank­ understood what the essence of his own genius ness in anyone who wrote about him. He had the was-namely, practical judgment. By concentrating bad-boy habit of dividing girls into "nice" and on it and letting others shoulder the work and "not nice," and until marriage was both assiduous the worry, he made an economy at the beginning and promiscuous in his devotion to the "not nice" that few ambitious men make until the end of their girls. One of them who had been his mistress ,careers. in Detroit came to his office in Cincinnati where Nothing is more un-American in this brilliantly he was just getting a good start with the Post and self-made captain of industry than the way he tried to blackmail him. He summoned the city piled up a fortune without working. He founded editor and directed him to call up the' two rival his first paper, the Cleveland Press, in 1878 with papers and tell them to send over reporters. When an investment of only $10,000, which he borrowed the reporters arrived, he introduced his visitor. from his brother G,e'orge. Sixteen months later, "Miss Brown," he said, "used to live with me as E. W. went to St. Louis to found the Evening my mistress. She was paid for what she did and Chronicle. Subsequently he returned to Cleveland, we parted on good terms. She has come' here today stayed six months, then left for Europe with his threatening to revive that story and asking for adored sister Ellen. From then until his death in money. You are at liberty to print the story. 1926 he was in complete control of the Cleveland So far as I ,am concerned, the incident is closed." Press, yet during an those years-to quote his own The story was run with big headlines, and to the words-"I have not spent as much as thirty days surprise of everybody, it did no harm either to tn Cleveland." By the turn of the century the the circulation of the paper or the standing of Press wa,s worth millions. its editor. Gincinnati'sapproval of fearless, frank "I was always ready." he adds, "to do four men's s'peech evidently outweighed its dis,approval of

JANUARY 11, 1954 275 illicit sex relations. When he married at the age the United Press. E. W. regarded this blow of thirty-one, Scripps foreswore such relations against monopoly in the gathering of news as his and stuck by it. greatest service to American journalism. IS cripps began his retirement at the ,age of thirty­ To his serene recollection of the few orders he six, calling in his business manager, Milton McRae, gave, his employees would add that when he did one morning and offering him ;a limited partnership give an order, it "vas obeyed instantly or the ex­ with a one-third share in salary and profits. To plosion would rock the building. At home E. W. this he attached one condition: that McRae should behaved like an oriental despot. His ranch-house run the Scripps-McRae papers on 85 per cent of castle was all on one floor, and as you passed their gross income. lVlcRae accepted, ,and Scripps from room to room, you would see tacked up moved out to his ranch in California. For another beside each doorway in his handwriting: ten years he continued to watch over the properties SHUT THE DOOR. E. W. Scripps. like a ha\vk, receiving daily and weekly reports After breakfast, just before rising from the from each paper, and traveling ten thousand rniles table, he would issue an order-of-the-day: "Bob, annually to keep tabs on them. He traveled in I want to confer with you immediately, and I'll see a private car with two secretaries, working all you again at two P.M. Nackie, I will drive with the time. But when he got home he would give you at four. Max, ,we will talk in my office at ten." his whole heart again to pl'anting eucalyptus Those talks would last from ten to one usually forests and citrus groves, building reservoirs, and he subject to renewal afternoon and evening. laying miles of pipe to reclaim his private wilder­ Upon dismissal, as I staggered from the room ness, .growing up with his sons, reading books, groggy with nicotine and sheer exhaustion of the and writing Disquisitions that had nothing to do brain cells, he would say "thank you for the con­ with journalism. versation," as though I had had sOIPe choice in the Wh1at made this freedom possible was his uncanny m'atter. ' gift for knowing men. On those annual trips he would usually see only the editor and the business Scripps estimates, in a frankly boastful Dis­ manager of each paper, but often he seemed to know quisition, that he was one of the thousand ,richest more than they did about their principal employees. men in the United States and, with an apology Once he sent la telegram to an obscure reporter for the "conceit," asserts that he waH "2 per cent named Alfred 0 Anderson, working for a small responsible for all that .is good or ill in the wage on a St. Louis Ipaper, directing him to go to management of this great nation." He once showed Dallas, Texas, and start an evening paper at the me a letter from Burleson, Woodrow Wilson's earHest possible moment. He would find, money to Postmaster GeneTal, acknowledging that the Admin­ his credit in a Dallas bank. Anderson, knowing istration owed its victory in the 1916 elections what orders from E. W. meant, had a first edition to the Scripps papers. So this "conceit" was not of the four-page newspaper printed in St. Louis, unfounded. Yet it was never present in his con­ took these copies in a trunk to Dallas, and got versation. He had, with all his imperiousness, a them on the street the next :afternoon. vein of simple humility. I asked him once why E. W.'s haste in this matter was due to an agree­ he never tackled New York with a Scripps paper. ment with McRae that in expanding their business "I'm not a big enough man," he said. "That takes each should have as his special territory the region a Hearst or a Pulitzer." in which he happened to start a paper first. Scripps He was too big a man-too thinking a man­ ,delighted to outwit people that way-just with would be more exact. He was too fond of reason­ superior energy and brains. Especially he enjoyed ing and reading books. H,e cared more about the outwitting his semi-partner McRae, whose lack of thoughts he locked up in that iron box than humor he found as distressing as his enormous those he e'xpressed in his newspapers. His purest energy and concentration were admirable. passion was for scientific truth. Scripps took a similar delight in outwitting the As a man of the world, E. W.'s motives were, plans of the Associated Press to form a news-' in fact, perilously mixed. One was a passionate gathering monopoly in the United States. They determination to get rich-to rise into the employ­ offered to take him in, and when he' declined the ing class securely and forever. It is more blessed offer, set a zero hour; he could either come in then to give than to receive-wages. Of that maxim he or remain forever out in the cold. He waited until beca,me convinced in early youth, and his purpose the zero hour w,as past, m'aking meanwhile all his to stay on the upper side of this transaction was preparations to establish a news agency of his as hard as steel. But at the same time he was own. Then he sent an emissary to the'ir meeting, instinctively hostile to men of wealth, and despised demanding that his papers be admitted on an militantly the journalism which consists of "rich equality with all others. When they responded with m,en talking to the other rich." derisive' laughter, he sent out his already prepared In 1ROO his brother James, who was losing money telegrams announcing the formation of the Scripps­ on a newspaper in Chicago, begged him to come in MeRae Press Association-subsequently renamed and take over the management. They met to discuss

276 THE FREEMAN it in a hotel room that looked down on Dearborn report from which the inference was unescapable Street. While they were talking, a noise of shouts that Scripps ought to double his contribution. I and scuffling caIne up from below. It was a riotous explained this to him while· he looked over the incident in the teamster's strike the'll in progress. document. As they looked down, James muttered: "I wish "M'ax, you make a good speech," he siaid, "but I I were mayor of this city; 1'd teach those m,en knew that already. I heard you over in San Diego. a le'Sson." The figures on this paper, on the other hand, con­ E. W. said: "You want those teamsters clubbed, vince me your magazine is ,a 'failur,e. It's a delight shot down, or arrested. I want them to win. That to me personally, but it isn't good business. You'll shows we can't work together. You'll have to go have to find a philanthropist. I'm ,abusinessm.an." it alone." He was a businessman in matters of journalism, Politically E. W.'s papers were independent, and but in promoting scientific research and the pop­ they have been credited with having "freed the ularization of science, he was a notable philan­ American press from its slavery to party title' and thropist. A press release bureau called Science obligation." But they were bound by a passionate Service, established by him, was the pioneer in loyalty to the workers and the common people-95 making technical knowledge available to the public. per cent of the population, according to E. W.'s The Scripps Institut,e for Biological Research and evaluations. ("CP" and "95 per cent" were inter­ the Scripps Institut'ion of Oceanography at La office abbreviations employed on the Scripps papers Jolla, Californi1a,are among our most valued to designate this object of their loyalty.) They scientific institutions. And according to my recol­ championed every measure designed to improve the lection of him, these implements of inquiry, as status of labor: the eight-hour day, closed shop, eminently as the United Press or the great Scripps­ collective bargaining, workers' compensation, em­ Howard chain of· newspapers, are the children of ployees' insurance, ,anti-injunction laws. They also his mind and spirit. fought for the income tax, although Scripps re­ gretted that in later years as bad economics. It was instinctive with hiJ:.l1 to champion every Letter from Vienna measure directed against what he called the "wealthy and intellectual classes." He always linked those two adjectives in describing the chief enemy; Foreign Office Mystery and both .adjeClvives, by no mere coincidence, exactly fitted him. A war like that againsit him­ self would defeat, if not destroy, mo'St men. In most times and places it would defeat any man. The appointment of ex--Ghancellor Leopold Figl But in A'merican newspaperdom from 1878 to as successor to Foreign Minister Karl Gruber 1916-and in E. W. Scripps-it produced anenorm­ ought to write "finis" under what the Viennese ous personal fortune and one of the most powerful call "the affair of the Foreign Office"- but pre­ weapons ever wielded in behalf of the underdog. sumably doesn't. Too many obscurities and puzzles There was a developing class struggle in America surround the case. in thos·e years, and the Scripps papers, without After eight years as foreign minister, Dr. getting tangled in the doctrinal formulation of Gruber resigned at the request of his Catholic it, took the Slide of the rising class of wage labor. People's Party, just a few days after a chapter E. W. stoutly and constantly championed the caus'e of his memoirs had be'en published in Die Presse. of the tr1ade unions in his papers. But he had the This chapter describes negotiations which took good sense to leave socialism alone, or dismiss place in 1947, when heads of the Catholic People's it with the remark: "Class warfare must be per­ Party, including both Leopold Figl and the present petual." Indeed, he saw through socialism more Chancellor Julius Raab, discussed the possibility clearly than any other critic I met in those' days. of a coalition government with Austrian Com­ He surprised me by saying: "Your propaganda munists. will probably in the long run succeed." And then What was so sensationally indiscreet about Dr. he added: "'The thing you'll get will be as different Gruber's describing these negotiations which were from what you are talking ahout as modern publicly debated in Parliament at the time? Why organized Chriistianity is from the visions of such excitement about am,ere rehash of what every­ Jesus." one knew anyway? On the other hand, why did Scripps did give money to my magazine, although Dr. Gruber choose just this moment to air a half­ he refused to call it a gift. H'e called it an ex­ forgotten episode which does no credit to his party periment. "You come out here next year and show and its leadership? me your financial report," he said, "and I'll know The interpretations of the Gruber affa,ir that whether I acted from sentimentalism or good one hears from so-C'alled "informed sources" here sense." throw light on the intricacies and ambiguities of 'The next year my busines'S n1anager made a present-day Austrian politics. According to one

JANUARY 11, 1954 277 version Gruber, being the exponent of pro-Amer­ But Dr. Gruber has overrated his secret weapon icanism in the Cabinet, took a dim view of Chan­ -at least for the moment. "The betrayal of' Eu­ cellor Raab's new course of dealing directly with rope," Talleyrand once said in this very Vienna, the Soviets without prior consultation with the "is a matter of dates." Few Western statesmen Western allies and without their participation. could cast the first stone at the Austrian politicos His idea in raking up those old negotiations was who tried to "play footsie" with the Communists to jolt public opinion and thus force' a full-dress in 1947 without being reminded of their own debate on foreign policy. mistakes at Yalta and Potsdam. Then there is a school of thought which views The first round went to Dr. Ra1ab. Not only did it all in terms of the struggle for power within he stay in power, but by forcing Dr. Gruber's the Catholic People's Party between the Bauern­ resignation he prevented a debate on his C'on­ bund, represented in the Cabinet by Gruber, and the troversial foreign policy. On the other hand, the Wirtschaftsbund, represented by Raab. The Bauern­ nomination as Gruber's successor of Dr. FigI, the Qund fears increased trade with the East, because Austrian statesman whom Washington loves to it would involve large agricultural imports bound to trust, shows Ra,ab's pro-W,estern leanings. bring down prices. The Wirtschaftsbund, on the Ever since last summer Austrian conservatives contrary, is all for intensifying such trade, because have complained about the severity with which Austrian industry is in sore need of markets. Thus Chancellor Raab is being decried in the Unlted Gruber, these sources have it, tried to stab Raab States as a neutralist or even ,a f.ellow-traveler. in the back in behalf of the Bauernbund. They say he is neither; it was just his bad' luck A third version blames it on the A'mericans, who, that the Russians began to shower concessions on they say, wanted to get rid of the "neutralist" Raab Austria justwhen he became Chancellor last and get the "staunchly pro-Western" Gruber ap­ spring---'abolishing the frontier c'ontrols between pointed in his place-and hence suggested to Gruber the zones, lifting the censorship on mail, radio, and that he remind the public of Raab's earlier fall telephone, returning Austrian railway cars, and from grace. even renouncing payment of Soviet occupation costs. What could R'aab do but aceept this rain of No Velvet Gloves blessings with the best possible grace? The fact is that the Russians might have made Actually, none of these explanations quite fits in such concessions to any Austrian chancellor, since with the character of the principals as shown by they fitted in with the appeiasement policies of their past actions. It is difficult to see how Gruber's the early post-Stalin era. And yet it would seem supposed opposition to Raab's supposed neutralism that Raab is the kind of Westerner who appeals to taUie,s with his pilgrimage to Switz'erland last June the Soviets, who have always gone out of their way to see India's Nehru. According to the Vienna to do business with arch-conserV1atives who did newspaper N eues Oesterreich, Gruber asked Nehru not even try to work, up any ideological sympathy to intervene in Moscow with regard to the Austrian with them. state treaty, and Nehru assured him of his "good High officials of the Ballhausplatz insist that all offices." When a few days later Nehru told an Raab is out for is to obtain as many political and E'gyptian correspondent that there was absolutely economic concessions for Austria as possible. These nothing to this report, Chancellor Raab's mouth­ evidently include, American displeasure notwith­ piece Neue Wiener Tageszeitung featured Nehru's standing, the attempt to revive Austria's trade with denial. Which was, so it was ,said around the the East. BaUhaus-platz, Raab's way of indicating his dis­ It is one of the piquancies of the politic'al situa­ pleasure with his foreign minister's excursion into tion here that the most vociferous opponents of neutralism. the foreign policy of the Catholic People's Party Altogether, it would seem, Raab never bothered are the Social Democrats. Although they form a to put on velvet gloves before shipping down his government coalition with the People's Party, they foreign minister. He didn't think much of Gruber violently attack Raab's "fellow-traveling," and it and never hesitated to let him see that, even when looks on the surface as though they might cause others were pre,sent. Nor did he discourage his hi.s downfall in Parliament by ganging up with the high officials from spreading the word that Raab independents. But connoisseurs of the Austrian ought to be his own foreign minister, just as poEtical scene say that the two paTties see pretty Adenauer is. So it is quite possible that what much eye-to-eye, and that it's all a well-directed really prompted Gruber to dig up the negotiations show, designed to keep the doors open to both with the Communists was the desire to get even camps of our divided world. with the Chancellor. Another motive might have All in all, there is little doubt that the Austrians been the realization that the Americans were un­ will always choose the side of the West. But they happy about Raa'b's foreign policy and that it are a little truncated nation between two worlds, would bea feather in Gruber's cap if he succeeded and they must do some political haggling in order in getting rid of him. to survive.

278 THE FREEMAN Harold in Wonderland By JAMES BURNHAM I

It is tiresome that publishers think they have salmon with mayonnaise dressing, as well as cucum­ to call things "secret" in order to get people bers and tomatoes, bread and butter, then squab with peas and potatoes. Then followed a green interested in them. (The Secret Diary of Harold salad with a choice of cream, Swiss, or Roquefort L. Ickes: The First Thousand Days, 1933-36, cheese. For dessert there was my own special ice 738 pp., Simon and Schuster, $6.00.) Like most cream, black raspberry, with cookies and coffee to other diaries, that of Harold Ickes is a personal finish with. For wines, I served Chateau Yquem document, and was kept private during the period [sic-even so accomplished a gourmet refuses to write it "d'Yquem"], a good claret, and a good that it records. Like nearly all diaries of public vintage cha,mpagne. We had liqueurs afterward... figures, this one was obviously des'igned to become, I kept them all supplied with their favorite highballs. later on, part of public history, :as it now does. It The President certainly carries his liquor well. He is neither more nor less secret than other works of must have had five highballs after dinner. its kind, and it is much too interesting to need the And what a good time they did have with all support of any fakery in the title. The "Thousand the power and all the money! Reading this diary Days," incidentally, are in fact 1,330. I could appreciate more fully the stunned gloom For sheer words alone, it is sufficiently astound­ that I saw in the Democratic faces of Washington ing. Iekes began his diary when he took office in November 1952. It was as if Ithe smiling Pres­ as Secretary of the Interior at the beginning of ident had taken his motto from the phrase that Franklin Roosevelt's first Administration. This Leo X used when he finally maneuvered him,gelf initial volume, running only through the 1936 onto the throne of St. Peter: "Since God has election, .contains 300,000 words. These are only given us the Papacy, now ,Jet us enjoy it." a quarter of what Ickes wrote during that time. The atmosphere that Ickes describes is, indeed, B,eforehis death in 1952 he had passed the 6,000,­ very much that of a Court. Everything revolves 000 mark. That would have been a respectable around the figure of the monarch. All is personal output for a full-time pulp writer. intrigue, favoritism, whispers, backbiting, promises It took Ickes a couple of years to find his verbal made and forgotten, fiefs given and taken away, pace. The early entries, although their content indirection. What counts is not so much official often fascinates, are utterly without style. Grad­ rank and title as nearness to the person of the ually his syntax and his personality loosen up. king. Richelieu-Frankfurter, with no post in the There is a kind of turn along about the end of government, moves in and out of the White House October 1935, when he narrates the fishing trip corridors. Don Richberg is one day "assistant that he took with Ithe President from San Diego President" and the next, cast into outer darkness. around through the Canal and up to Charle,ston. Cabinet members congratulate themselve,s when Harry Hopkins, Dr. Ross McIntire, Lieutenant they are granted fifteen minutes with Missy Le Colonel Watson (military aide), and Captain Wilson Hand or Grace Tully, quarrel bitterly over who Brown (naval aide) were along, and they had the will get two or three private minutes after the' cruiser Houston for their yacht. It was "a -congenial general Cabinet meeting, and swoon with delight crowd and everything went off smoothly. .. My if the ruler grants them an audience in his bed­ quarters really were luxurious. The food was chamber. On Friday, August 23, 1935, for ex­ excellent and varied." The fishing, poker, and ample: Colonel Watson's jokes were·fine. I had a ten-thirty appointment with the Pres­ By July 1936, when the President came with ident... When I got up to his study, his valet the White House intimates to dinner at his home, ushered me into his bedroom, telling me that the Ickes was able :to enjoy himself in prose as in President was shaving. He waved toward the bath­ room and the President called out to me to come life: in:- There he was, sitting before a mirror in front The President got out about a quarter to seven. of the washstand, shaving. He invited me to sit The dining table was set on the lawn, since it was on the toilet seat while we talked. .. I was struck a war,m, clear day with no wind. . .From the car all over again with the unaffected simplicity and he was carried to my own favorite chair which personal charm of the man. I had had taken out on the lawn for him. After Queen Eleanor and Court favorite Hopkins were cocktails and cocktail sandwiches, we llloved him over to the table where the eight of us sat down. a great trial to the Old Curmudgeon. The Queen We started with honeydew melon, then had cold insisted on putting her finger into every pie;

JANUARY 11, 1954 279 and though they were big pies there were a lot The fundamental issue that must be decided in of eager fingers. ("And then Mrs. Roosevelt took this country sooner or later ... is whether we are to have real freedom for the mass of people, not the Reedsville project under her protecting wing only political but economic, or whether we are to with the result that we' have been spending money be governed by a small group of economic overlords. down there like drunken sailors.") Then the Princes dropped by for their pr.incely handouts: When the main national job was the physical opening of the f,rontiier, the lack of serious ideas Jim Farley told· me that a few days ago Elliott Roosevelt ... had come to him to ask him to use may not have mattered much. In this complex his influence to get a certain wave length for in­ century we shall have to do somewhat better. terests that either were Hearst interests or closely If you don't know what you're doing, then you allied therewith. Elliott told him that there would are vulnerable to someone who does. Ickes had be a commission of $40,000 in it for himself... no ideas, -and was wide open to Roosevelt and The papers carried a sensational story about a contract ... between Fokker and Elliott Roosevelt, Hopkins, who had at least a few. We are now by which the latter was made Fokker's agent for learning in documented detail how the N'ew Deal a consideration of $500,000 ... Elliott Roosevelt leadership as a whole was, in turn, open to the had been paid a retainer of $5,000... Communists, whose ideas were strong,er, clearer, They say that James Roosevelt does the same and more farsighted. thing in Massachusetts in his insurance business. Harold Ickes was never a real insider, although he was there in the Cabinet for all of Roosevelt's thirteen years. He was used by Roosevelt, as that The Real Russia brHliant manipulator of men used so many others. Russian Assignment, by Leslie C. Stevens. 568 pp. Ickes had 'a good if eccentric public reputation. Boston: Little, Brown and Company. $5.75 He had bee'll a "progressive," Bull Moose Repub­ lican all his life, with roots in Pennsylvania by There isa simple and basic test for books by birth, and in Illinois by choice of residence. He foreigners who have sojourned in the Soviet Union: was a tireless worker, and made himself into a if the author can go back, the book isn't worth convincing ,speakerandwrHer. reading. Had this test been ,applied by the Amer­ At the same time, Ickes was politically naive, ican people in the years of the great tide of personally vain, and a lover of both power and the volunteer Kremlin press-agentry, they would not limelight. The President, and such of his aides have been so tragically befuddled by the Hinduses, as Hopkins, could play him like a harmonic-a. One the Durantys, the Anna Louise .strongs. of the most fascinating narrative threads that Admiral Leslie C. Stevens assuredly will be runsaH ;through these pages is the account of unable to return to Russia, whi0h he learned to how Hopkins cut Ickes to pieces on the issue of 10ve for all its faults, until the country has emerged who was to control the m,ajor part of the "relief" from its Bolshevik nig"1htmare. Any margin for money, and for what. Ickes retained a few old­ doubt on this score has been erased by a bilious fashioned prejudices about using the money for attack on his book, Russian Assignment, by Radio solid, lasting projects, more or less responsibly Moseow. Comrade 'Timofeyev, the Red commentator, audited, wUh some chance of eventual repayment :has formally identified the Admiral as a prevaricat­ of government contributions. Hopkins quickly real­ ing "U~S. chief of espionage" who "was eagerly ized the more up-to-date notion that the most looking for people dissatisfied with the Soviet important thing billions of dollars can buy is order" but of course "did not succeed in ,finding votes, 'and he planned his WPA progra,m and such people." projects accordingly. Ickes was licked from the In truth the Admiral did 'find them, and without start, although for nearly two years he fought looking. Moved ,by a robust curiosity, he wandered a dogged battle. To the end he never really knew off the beaten tourist and diplomatist route's and, what had hit him. having -come to the assignment with a knowledge Harold Ickes had admirable and usefu1 qualities, of Russian,managed to meet ordinary Soviet many of them very much in the American tradition. citizens in considerable variety. They sought him As a political leader, he also had conspicuously a out as often as he sought them out, and occa­ typical American lack: the ,lack of any serious sionally they talked from the heart with the or systematic ideas. The literal result was that he courage of their desperation. Before he fully never, politically speaking, knew what he was realized the risks involved for Soviet citizens, doing or where he was going. He was for any­ he tried naively to chait with them in public, only 'thing "progressive," and he was against "the to discover that they "seemed uneasy and turned interests." In the'se 300,000 words written about away." He learned the lesson learned by every out­ the government of the most powerful country of sider with a conscience-never to speak to a sub~ the world in one of the most crucial periods of j eC't of the Kremlin unless spoken to. In time, its his'tory, there ,are only four Hnes of discussion indeed, he schooled himself to ,cut short burgeon­ of political principles: ing friendships just to protect his friends.

280 THE FREEMAN The e'lement of danger made the bursts of candor living in a strange land can be for a perceptive that did come his way more dramatic and more and hones: visitor. I know of no book that comes significant. Once, for instance, 'he went into a so close to conveying the accent and flavor of life shabby out-of-the-way beer hall. A man in his in Russia under the Soviet dispensation, that ex­ thirties-an agricul~ural expert f'rom a distant poses Inore of the human facts within the propa­ collective' f,arm, as it developed-sat down at his ganda wrappings. table. After studying the foreigner for a while, On the train taking him to his assignment, the Russian seemed to come to a daring decision. Admiral Stevens was ~old by a woman doctor re­ He plunged into talk: turning to her native' Russi

JANUARY 11, 1954 281 of developing atomic ,weapons, prospects and real­ izations in the peaceful us·e of ,the atom, etc. Europe's Economic Record Mr. Dean grants that the Soviets have made Economic History of Modern Europe, by Heinrich rather alarming progress. He points out that developments made in some of the free world E. Friedlaender and Jacob Oser. 611 pp. New atomic labs such as those in Frlance are probably York: Prentice-Hall, Inc. $8.00 made availa'ble in .full detail and at top speed to In the quarrelsome f1amily of social sciences, eco­ the Soviets through agents and sympathizers on nomic history occupies a pos'ition akin to that of the project. But he 'ends by putting it lall up to the a stepchild. The prevalent tendency in American citizen, who must try to understand atomics and (but not in British) universities is to emphasize guide our policy-makers, 'although one is at a economic theory in the 'effort to uncover the elusive loss to know where the citizens are to look for "laws" which govern our complex civilization. guidance. Contrary to what the layman would expect, the Dr. Evans' view is a good deal lless comforting practitioners of businesis forecasting and allied even though he is much less willing tocredit the disciplines, concerned as they are with statistical Soviets with as much atomic progress as does series, tend to look askance at economic history in Mr. Dean. It is our atomic policy weakness that the broader meaning of the term. It may well be worries Dr. Evans, and he knows whereof he that this attitude is but self-defense: the more speaks. For eight ye'ars he served as an official one learns about the past, the grea'ter the reluctance of the Atomic Energy Commision and resigned to generalize about the future. his well-paid job as Chief of Training fa year ago This heing the case, a new volume on economic because none of his recommendations in the' prob­ history deserves warm welcome. The general plan lem of security education was being followed. of the study by Friedlaender and Os,er is engagingly Dr. Evans loosens one shocker after another in simple. The book is divided into four· parts: the this field. He neatly blasts those who espouse rise of capitalism (to 1870); mature capitalism the slogan "security by achievement rather than (1870-1914) ; the interwar period; and World War by concealment" to make free with our atomic Two and after. Within each of these subdivisions, secrets. Mr. Dean falls into this category. After the authors present a matter-oi-fact account of all, security must keep pace with achievement, agriculture, industry, commerce, colonies, trans­ Evans points out. If our 'achievements are easily portation, banking and finance', and social move­ made available to the Soviets, then we are running ments and labor. Succinct introductory sections on a treadmill. provide the political background, while some ·hun­ Evans goes further than that. He sugge'Sts the dred and thirty "biographical vignettes" serve as possibility that the Soviet atomic explosions c'ame a useful reminder that history is the handiwork from materials improperly diverted from our own of men, a seemingly uncontroversial fact which, atomic energy program, 'and every assertion he however, the devotees of the preeminence of im­ makes is heavily documented. He spotlights some personal economic forces are apt to overlook. amazing naiv,ete on the part of scientists who want to be stat'esmen. And he raps quite a few Unfortunately, the execution of this admirable top state,smen whose naivete wa,s les,sexcusable, plan is not wholly satisfactory. The scope of the such as former Secretary of W,ar Stimson, who, volume is less comprehensive than is suggested by in 1945, beca,me "convinced that 'any dem'and by its title. Friedlaender andOser deal systema'tically us for an internal change in Russia as a con­ only with England, France,and Germany. Other dition for sharing the latomic weapon would be European countries, including Rus's,ia, are discussed so resented that it would make the objective we but incidentally and sporadically. It is refreshing, have in view less probable." Another absurdity but not necessarily enlightening, to read an account in our atomic program Dr. Evans points out, was of recent years in which the Soviet Union pl!ays the fact that after we 'adopted for our Air Force hardly any part. a military doctrine based on the perspective of What is far more important, the information strategic bombing with nuclear weapons, we made presented in the body of the volume is not uni­ Thomas Finletter-who did not believe in strategic formly the' best available ; the authors, indeed, nuclear bombing~he'adof that Air Force. lean too heavily on sources such :as the Encyclopae­ All of this adds up to the lesson which James dia Britannica and textbooks, especially in sections Burnham succinctly sums up in his introduction; dealing with international economic relations. The "We can handle the Communists if we handle presentation of the mat,erial is at times faulty. ourselves. It is not so much that they are so The account of the French experimentation with intelligent and shrewd as that we have been weak the most-favored-nation clause after 1892----'an ex­ and foolish. Moscow has made its mistakes, many citing chapter in the history of European com­ of them and big. We have failed to profit by those mercial poIicy--,is singularly confused and unin­ mistakes, or to make good use of our own assets." formative. It is surprising to read that after the ROBERT DONLEVIN United 8'tates entered World War One, the financial

282 THE FREEMAN relations bet'ween the' Allies' and the United States sued by troops in steadily mounting numbers, until "remained unaltered." On the contrary, the Liberty finally the little band was being hunted down by Loan Acts, from which stemmed the Inter-Allied m'Ore than 10,000 men. That any of them came Dehts, were the direct consequence of American through is astonishing; the resolution and skill belligerency and basically changed the financial of their chiefs, Little Wolf and Dull Knife, were situation. The statement that the Vers,ailles Treaty prime factors; the courage of the women and put the Saar for fifteen years under a French children, matching that of the men, was another. (inste'ad of an international) administra'tion should They were inadequately armed, they had not enough be, presumably, regarded as a misprint. In their horses, they encountered bitter weather, they were discussions of German industry under Hitler, the frequently weak to the point of exhaustion from authors inexplicably do not even mention the com­ exposure, fatigue, and insufficient food. Yet they prehensive system of industrial controls headed pushed on. by the Chamber of Economics. The ques,tionable Already, before this march, the Cheyennes had theory that ",the British-German trade rivalry" suffered much at the hands of the white invaders. was "one of the major causes of World War One" Their women and children had been massacred by (p. 120) is not easily re'concilable with the asser- the infamous Colonel Chivington at Sand Creek, tion that business leaders in both countries exerted Colorado, in 1864, and they were to see them shot themselves Ito prevent the war (p. 347). down again on this flight fourteen years later. Hence, in the end, this Economic History of Mod­ One of the proudest of the Plains tribes, the ern Europe does not live up to the expectati:ons Cheyennes have good reason for bitterne'Ss, even raised by its basically sound and reasonable ap­ today. This reviewer has made several visits to the proach. MICHAEL T. FLORINSKY reservation on which the northern branch of the tribe was finally settled, on the Tongue River in Montana. There the descendants of those who made the incredible march up from Oklahoma live now Indian Tragedy and Splendor in deplorable condition, in spite of the unremitting efforts of the resident superintendent, Carl Pear­ Cheyenne Autumn, by Mari Sandoz. 282 pp. New son, one of the superior men in the Indian service. York: McGraw-Hill Book Company, $4.50 The land on which we expect the Cheyennes to make The World's Rim, by Hartley Burr Alexander. a living is not adequate either for profitable farm­ 269 pp. Lincoln: University of Nebraska Press. ing or for cattle-raising. $4.75 The sources of that spiritual str'ength displayed Here are two books dealing with the North Amer­ by the Cheyennes during their ordeal are set forth ican Indian which, however keen our awareness in The World's Rim. This book, although ready for of the tragic nature of his history, must serve to publication in 1935, was still unpublished at the heighten it. They are of totally different character. time of Mr. Alexander's death in 1939; the Uni­ Cheyenne Autumn is a sensitive and dramatic versity of Nebraska Press is to be congratulated account of one of the most shameful episodes in the for having made its appearance possible. In hi'S long chain of wrongs inflieted upon him; The dual role of philosopher and anthropologist, Hart­ World's Rim is a sympathetic and scholarly study ley Burr Alexander was admirably equipped to of the Indian attitude toward life, pointing up interpret the Indian conception of life. The read­ through an examination of his ceremonials the ing of his book should disabuse any reader who deeply spiritual base upon which that attitude conceives of the Indian as a simple savage. The rested. symbolism of his ceremonials wa'S rich in poetry, The story told in Cheyenne Autumn belongs his view of life prof'oundly ethical. His wise men among the heroic epics; it is one of the great tales were capable of philosophical subtlety, and their of human endurance, of unconquerable spirit. It thought was motivated by a deep idealism. concerns the removal in 1878 of a band of 278 As Dr. Alexander remarks, "The accumulation of northern Cheyennes from. their home territory in property as an end in itself, which bulks so huge Montana to a reservation in what is now Oklahoma, in the white man's economy, hardly finds a place and their indomit'able march back from the reserva­ in the Indian's consciousness." There was such a tion to the country where they were determined thing as Indian wealth----horses, accoutrements, to .end their days. It was not only 'that they wished ornaments-but its meaning, Dr. Alexander points to return to Montana; they were also ashamed to out, was native'ly not in itself, so much a'S in uses be placing an extra burden upon the southern and meanings. relatives with whom they were to be quartered, Both these books should he helpful in correcting and whom they found with insufficient provision the distorted view of the Indian's nature which for themselves. has so long been propagated by our schoolbooks; Of the 278 who set forth on that terrible journey, only during recent years has the effort heen m'ade nearly two-thirds of them women and children, less to place him in a fair perspective. than half reached the Yellowstone.They were pur- .t. DONALD ADAMS

JANUARY 11, 1954 283 goes on, as darling little beer cans dance across Briefer Mention a few million television screens every day. But 1 America F aces World COIDIUUl1isIU, bJT Anthony even this point Mr. Turner does not press very Trawick Bouscaren. 196 pp. New York: Vantage hard. And among the most rewarding parts of Press. $3.00 this quietly factual book are the illuminating side­ lights it sheds on the more'S and morals of Anybody who wants to acquaint himself with eighteenth and nineteenth century society, .in the fundamental facts about the Soviet threat Britain particularly, as revealed in the classified to America would do well to read this book. IVIr. advertisments of the day. Bouscaren, professor of social science at the University of San Francisco, has undertaken a The Age of the Moguls, by Stewart H. Holbrook. triple task. He has made a convincing and urgent 373 pp. New York: Doubleday and Company. plea for a determined and dynamic American $5.00 foreign policy, based on the assumption that we are already engaged in the life and death struggle The great tycoons of Amerioan industry are a sub­ of World War Three. He has written a brief ject of ever-fascinating interest, and Mr. Holbrook report on the major battlefronts, here and abroad, has made the most of it. With infinite skill, he of this global "var which, he says, we have has woven the incidents of their lives together in been losing so far because we have refused to a grand panorama that is both richly informative face up to the brutal facts of this struggle. And, and continually exciting. His portrayal of his in an appendix, he has asked and answered characters as rogues and rascals forever engaged sixty-three basic questions about the nature, in dishonest dealings is perhaps somewhat overdone. strategy, and tactics of Communism. He has done It is historically unbalanced to judge the money­ all this in the limited space of some 200 pages. making practices of an age when business was And, for the most part, he has done it well. In almost wholly free of rules and regulations by the an excellent chapter on the political history and standards of today, when it is ruled and regulated strategic importance of Spain,Mr. Bouscaren from top to bottom. In spite of this ,excessive disperses the sentimental fog of "liberal" agita­ tone of moral r,eproach, Mr. Holbrook seems to have tion which has clouded much of our thinking a kind of underlying admiration for his moguls and about this country. And in his concluding recom­ their exploits. At any rate, he gives the impression mendations, stressing the importance of the Asian ,that piling up fortunes was rollicking good fun. front, he states that since a "peaceful co-exist­ The Age of the Moguls is the first in The Main­ ence" between the Soviet :empire and the free stream of Am'erica Series being brought out under world is impossible, according to COlumunist the editorship of Lewis Gannett. doctrine, our only alternative is not a fatal "Maginot Line" strategy of defense, but to build Tomorrow's Air Age, by Holmes Alexander. 248 up the free world for an offensive-psychological, pp. New York: Rinehart and Company. $3.00 political, .andmilitary-"leading to the ultimate What new technological developments, especially cutting of the Soviet cancer from the world in aviation, can we expect in the foreseeable body politic." future? Can the human body and psy,che, as well as our manpower resources, cope with the ever­ The Shocking History of Advertising, by E. S. increasing technical demands of the Air Age? Turner. 351 pp. New York: E. P. Dutton and These are two of the basic questions Mr. Alex­ Company. $4.50 ander, a skillful reporter and science enthusiast, The title of this worthwhile book is misleading, tries to answer in this persuasive as well as perhaps ironically. For Mr. Turner's amusing alarming book. According to the many reputable and often startlingly informative discourse on sources Mr. Alexander has canvassed, nothing is advertising in Britain and America during the impossible for our scientists. There is no place last three hundred years is anything but a moral­ "among the stars or beyond the stars" where izing expose of the horrors perpetrated in the man will never travel. The only straggler in this name of salesmanship, a'S the word "shocking" race of progress is man himself-the human body tends to imply. Indeed, Mr. Turner tackles his which was not designed for an airborne existence. f'ascinating subJect with a rare mixture of mundane But eve'll here, Mr. Alexander points out, aviation wit, detachment, 'and sincerity. And the only medicine, a new science, will overcome most ob­ "shocking" fact for him, perhaps, is the process stacles. With diets, drugs, psychological treat­ by which people have been conditioned to accept ment, with improved gadgetsexploi,ting the sense,s almost anything suggested to them long and often of touch, taste, and smell and with, perhaps, some enough. This, he shows, began with the first ad special breeding, our scientists win lick this pro'b­ for that "approved China drink, called by the lem.Even if one might 'revolt 'at the prospects of ChineansTcha, by other nations Tay, alias Tee" ,this boundless belief in "progre,ss," Mr. Alexander's in Britain's Mercury Politicus of 1658, and still book makes interesting reading.

284 THE FREEMAN little old lady (played with her usual aplomb by Capitalists Josephine Hull) who parlays her ten shares of.the mammO'th General Products Corporation into a riot­ ously funny and successful career as a tycoon. on Broadway Let us not mislead anyone by claiming that The Solid Gold Cadillac is a signific1ant or serious play By SERGE FLIEGERS that evens the balance about the American busi­ nessman. On the contrary, Cadillac takes some Hobe Morrison, the drama sage of Variety, cites sha,rp cracks at the "corporation type." the old adage that on Broadway two plays about the If The Solid Gold Cadillac, so to speak, gives same subject at the same time are a coincidence, the poor American capitalist a few slaps on the three plays about the same subject constitute a hand, Sabrina Fair, by Samuel Taylor, deals an un­ trend. If this is true, we are perhaps in the expected rabbit-punch. Pitched at the carriage midst of a trend, since three of the latest successful trade, the play's locale is the north ,shore of Long Broadway productions concern capitalists. The Island-notorious as a habitat of the capitalistus fact that thes'e three plays-The Sol'id Gold Cadillac, americanus. Its cast of characters sports a re­ Sabrina Fair, land Madam, Will You Walk-ap­ tired millionaire, whose mainenjoymentand oc­ proach capitalists and capitalism from three en­ cupation is attending funerals; and his ,son (Joseph tirely different points of view makes this ap­ Cotten), a young man as ruthless in affairs of the parent trend only more interesting. heart as he is in his business dealings. Fron1 C,apitalists, it is true, have not been exaetly Paris arrives Sabrina, the chauffeur's daughter, absent from the American Sitage in the years that played to the hilt (and even somewhat beyond) by preeeded the current season. Androboros, the very Margaret Sullavan. The ensuing complications take first play to be written, printed, ,and produced up two long and rather dreary acts. But Miss on American soil, was a satirical indictlnent of !Sullavan's numerous and devoted followers are the well-to-do burghers of New York's Trinity obviously happy. And perhaps it makes no difference parish. In subsequent tear-jerkers the capitalist to them whether she is reading Mr. Taylor's in­ villain type, demanding his rent and ruthlessly consequential prose or the telephone book. Sabrina foreclosing delinquent mortgages, persis1ted through­ Fair, indeed, may be a fine vehicle for Miss Sul­ out the era of our Victorian melodrama, and lavan. But as far as the concept of the American would probably still be ,around today, despoiling capitalist goes, it presents him once more in the the. honor of fair maidens, had not Alnerican play­ superficial and tast'eless way that is neither neces­ wrights found a more ,sophisticated version of this sary nor amusing. s,tock ~haraiCt,er. Having drunk deeply at the fount of Shavian In contrast to this, the late Sidney Howard's Socialism, our young dra'matists during the first handling of Mary Doyle, the poor little rich girl decades of this century established what might be in Madam, Will You Walk, is masterful. Mary Doyle called the "Greenwich Village" school of play­ is a capitalist by virtue of the fortune she in­ writing, and presented plays whose villain was no herited from her father, a graduate of Tammany longer the capitalist but the "system"-i. e., of Hall. With the arrival of a snobbish ,fiance and course, the capitalist system. an honest taxi driver, the audience is about to But the frontal assault on the ",system" came in settle down to the old cliche of the heiress for­ the thirties, and was led by such determined saking her burdensome fortune to seek "true" literary guerrillas as Clifford Odets, Elmer Rice, happiness with the poor-but-honest suitor. At that 'and Lillian H'eHman. Commenting on the dramatists point, Mr. Howard introduces Dr. Brightle, an of that era, John Gassner remarks: "The emphasis enigmatic gentleman of undefined financial status. they placed on economic motivation and upon dia­ And under the guiding hand of this mysterious lectical materialism tended to become literal, doctor, Mary Doyle takes time out to prove, among stereotyped, and even naive. They w'ere prone to other things, that people with money might be blame every intestinal disturbance on the big bad human, too. But since the American theater has wolf 'Capitalism,' rand on the ',system'." been so steeped in the anti-capitalist cliche, it takes the conlbined efforts of co-stars Hume Cronyn and One of the ·men who pulled the~American theater Jessica Tandy, the wit of Mr. Howard, and the out of this dreary pursuit was George S. Kaufman, energy of Messrs. Hambleton and Houghton, who the father of America's comedie humaine. Thus it produced the play, to put over even this not very is no coincidence that we find Mr. Kaufman at the star,tling point. head of the present trend. He is the author, in Whether this present crop of plays dealing with collaJboration with Howard Teichman, of The Solid capitalists actually presents a tr'end or not, one Gold Cadillac. Even Mr. Kaufman, however, does thing is c,ertain: though the present season on not manage to add anything to the sta,ge prestige Broadway leaves the stage capitalists somewhat less of the wicked "capitalist." His story concerns a 'stereotyped, the cliche has not yet been broken.

JANUARY 11, 1954 285 formed statement. Does Mr. Streibert Court ruled against the use of wire­ really believe that "Russian imperial­ taps in courts. But such evidence is II FROM OUR READERS II ism" and "not Communism as such" allowed' in courts of more than thirty should be the target of our efforts? of our forty-eight states. (Continued fro'l1t p. 256) If he does, then he should be classi­ We feel that if the use of such fied with those officials who saw the evidence were permitted in our federal coinage-of-silver scheme. But when Chinese Communists as "agrarian re­ courts, persons who are betraying our Franklin Roosevelt, on the advice of formers" and sat back while they country could and would be convicted. Gornell poultry professor George E. swallowed up China. But in this case A number of Congressmen favor Warren, took us off the gold standard, he should not be in the State Depart­ the passage of a law to permit the he opened a Pandora's box of troubles. Inent, in a policy-making capacity. use of information secured by wire­ Our farm problem, our labor troubles, New York City HUGH F. GOODWIN tapping as evidence in cases of treason our high cost of living stem from this and espionage. Those who wish to help stupid, not to say criminal, interference can do so in a very simple way. Send with economic law. Who Owns Niagara? a personal letter or post card to your San Francisco, Cal. JEROME LANDFIELD I was most interested in the article representatives in Washington urging "Why Socialize Niagara?", which ap­ them to support such legislation. Ask Missouri Wildcat? peared in your November 16 issue. your friends--'both in and out of town Why flatter Harry Truman by calling Governor Dewey's argument that the -to write their representatives, and to him "the touchy Missouri wildcat"? state should develop the water power suggest similar action to their friends. ("McCarthyis,m, Communism's New because it belongs to "the people" is Copies of a mimeographed letter out­ Weapon," December 14) He's so much based on a false premise. The Niagara lining the plan for your friends may more like an irascible old alley tonl River does not belong to the State of be obtained from the undersigned. cat whose claws are blunted and teeth New York or the people therein. It 35-55 73 St. MRS. FRANK LO PRESTO disappearing, who thinks he can fool belongs to the Seneca Nation of Indians Jackson Heights 72, N.Y. opponents by yowling and glaring more who never surrendered one riparian fiercely. To give him credit for more right in any treaty but sold their lands The Lesson in Guiana is to encourage him in his fallacy. "to the high water mark" of all water Nathaniel Weyl's informative article ways. The power companies in New MRS. P. M. RULEAU on Communist strategy in British York State and all state officials are Mountain View, Ark. Guiana ("Red Bridgehead in the well aware of this fact. So Governor Guianas," November 30) is another Dewey ... would b,e doing more for The Voters and Television example of the FREEMAN'S thorough the people of the state if he would I enjoyed Herbert Corey's article ("TV kind of reporting. I have read a lot settle this issue of title to the Niagara. and a Revolution") in your issue of of stories about the events in that Wonder what would happen if the December 14. I think Mr. Corey has a British colony which led to the sus­ Senecas decided to assert their rights very good point when he says that pension of the constitution and, armed and took over the power plants? local television stations can promote intervention. But I think Mr. Weyl a new interest in the affairs of the Herndon, Va. A. L. TANDY JEMISON has contributed the best ,analysis when community. For if people can take a he says: " The great advantage that look at the way many of their chosen Use of Wiretap Evidence may be obtained from this somewhat representatives behave in the state or bungled situation is establishment of This letter was originated by a non­ municipal legislature, they will get a the principle that any Communist gov­ partisan group of women in the hope much better idea of what is really ernment set up by any means what­ thatit will reflect the attitudes of going on. They will start to ask ques­ soever within the free-world area many other American women. tions. And they will, perhaps turn in will be surpressed and ousted, its Our scientists perfected the atom their verdict the next time an election capacity for, and commitment to, evil bomb at a cost of millions of dollars. comes around. This should provide having no relationship to the tech­ Now we are spending billions to pro­ many of our representatives with a niques by which it gained and fortified tect ourselves against those to whom new incentive. its power." I hope we, as well as our the secrets of the bomb were given by For this very reason I also think it allies, will take that to heart. Communist espionage agents. The same would be a good idea if Congress would Chicago, Ill. WILLIAM S. SHEPPARD story may be told about radar, the be televised. I have spent a lot of time proximity fuse, and other defense sitting in the visitors' gallery of the secrets. A Practical Professor House in Washington and was appalled The FBI has incriminating evidence by some of the things that were going I cannot refrain from telling you how against subversives but may not use much I enjoy the FREEMAN. An article on on the floor. I think if our Con­ this evidence in federal courts as it especially enjoyed was the one in the gressmen kne'w that a whole nation was obtained through wiretaps. November 16, 1953, issue. "If Manage­ was keeping an eye on them through In 1929 the Supreme Court of the ment Walked Out." I am surprised that television, it would certainly spur their United States ruled that wiretapping a professor of economics has such a efforts. by law enforcement officers did not sound, practical view of the facts about Washington, D. C. ALFRED J. BARKER violate any of the provisions. of the organized labor. Most professors seem Constitution or the Bill of Rights. In to regard 'unions as benevolent or Whose "Voice"? 1934 the Federal Communications Act humanitarian institutions, rightly. ex­ Reading your issue of November 30, was passed, which provides that: "No empt from operation. of the laws,. civil I came across your disturbing editorial person not authorized by the sender and criminal, which apply to the rest "Whose 'Voice' It It Now?" It seems shall intercept any communication and of us. incredible that any responsible official divulge or publish its ex,istence, con­ Picket lines are not an exercise' ill of the U.S. State Department, espe­ tents, or the substance of such inter­ freedom of speech. They are an in­ cially the new chief of our p,ropaganda cepted communication to any person." strumentality of intimidation. activities, could make such an unin- Based on this legislation, the Supreme Seattle, Wash. JAY MORRISON 286 THE FREEMAN The RIGHT side of the question •• •

How often in arguments and discussions with friends have you exclaimed: "You ought to have seen the article in the FREEMAN on that." And how many times have you;been unable to produce a copy of that particular article to back up your point. Now you can have these articles on hand to give to your friends, to send them to con­ gressmen, local officials, editors, clergymen, educators, and other people who ought to get the right side of the question. The FREEMAN has made available a number· of reprints o·f significant articles which you can order in quantity and at minimum cost. So order them now. And next time you get into a discussion, let a FREEMAN re­ print clinch your argument.

THE ESSENCE OF FREEDOM by Robert Montgomery LET'S DEFEND CAPITALISM by Henry Ha'ZHtt Robert Montgomery is, of course, the distinguished and much-loved What is the only answer to Communism? Henry Hazlitt, distinguished stage, screen, radio, and television star who has recently won economist and Newsweek magazine columnist, provides the answer acclaim and new fame as a radio commentator and narrator of the in one of the most perfect expositions of its type ever written. If popular television show, "Robert Montgomery Presents." His eloquent you missed it in the FREEMAN, be sure to read the attractive words should be read by every American. 12-page, two-color booklet. Single copy .10; 25 copies $1.00; 100 copies $3.00; 1,000 copies Single copy .10; 50 copies $4.00; 100 copies $7.00; 1,000 copies $25.00. Reprint # 33 $60.00. Reprint #10

THE RIGHTS AND WRONGS OF LABOR by Donald R. Richberg HOW SICK IS SOCIALIZED MEDICINE? by Melchior Palyi A noted authority tackles the proposition: industrial peace in this W'hat happened to the fight for socialized state medicine? It went country is impossible so long as· the leaders of organized labor underground where even today tremendous pressures are being are unchecked in the power they wield over their fellow-men and applied to put over this basic form of socialism on Americans. This in their war on 'private enterprise. A provocative and important reprint shows the actual results of Britain's national-health scheme article. •.• should be examined by every doctor, legislator, community leader. Single copy .10; 12 copies $1.00; 100 copies $6.00; 1,000 copies $45.00. Reprint # 24 Single copy .10; 100 copies $7.00; 1,000 copies $60.00 Reprint #6

GAG RULE IN P.T.A. by Jo Hindman DENATIONALIZE ELECTRIC IPOWER by O. Glenn Saxon

The inside story of how nearly 8,000,000 parents and teachers are America's most decided advance toward collectivism to date has muzzled and indoctrinated by a small, powerful national group. been the phenomenal rise, in the past twenty years, of socialized This iIIumina·ting article should be brought to the attention of every electric power. Here are the facts of the slow but sure growth of parent and educator. nationalized industry in the United States. Single copy .10; 12 copies $1.00; 100 copies $6.00. Reprint #31 Single copy .10; 100 copies $5.00; 1,000 copies $40.00 Reprint #16

EMPLOYEES BECOME INVESTORS by Merrill Griswold WHY SOCIALIZE NIAGARA? by Robert S. Byfield A noted investment leader describes several payroll savings plans Why does New York's Governor Dewey plan to have a State that benefit no·t only the workers but also management and the Authority develop "people's kHowatts" at Niagara Falls? Read federal government. Some suggestions for making investors out of the facts about how indefensible the plan is and how Governor salaried employees and the benefit therefr·om. A 12-page, two-color Dewey belies his own professed faith in free enterprise. booklet. Sing1le copy .10; 12 copies $1.00; 100 copies $6.00; 1,000 copies Single copy .10; 100 .copies $1.00; 1,000 copies $60.00. Reprint # 25 $45.00. Reprint #28

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