THE LIBERTARIAN Christopher Weber and Bruce Bartlett on the Inflation Crisis REVIEW Ralph Raico on Leon Trotsky/David Brudnoy on Film March 1979 Sharon Presley on·'Abortion $1.25 _:I'BE _ LIBERTARIAN REVIEW: THE BREADTH AND DEPTH AND EXCITEMENT OF THE DYNAMIC LIBERTARIAN MOVEMENT IS YOURS FOR ONLY $1.00 A MONTH.

1620------.Montgomery St I San Francisco UBERTARIAN California 94111 'REVIEW O~P~~een~rmys~~riptionfu~ Name~~~~~~~~~~~~~~ o 1year ($12) 02yea~~2~ Ad~~~~~~~~~~~~~~_ o 3 Years ($30) Charge card no. o Payment enclosed City~~~~~_State ~~ Zip_~~_ o Charge me Expiration date o VISA 0 Mastercharge Signature~~~~~~~~~~~_ ------3001 THE LIBERTARIAN FEATURES REVIEW Why Gov~rnmentWill Never Stop Inflanon 29 March 1979 by BruceBartlett Volume 8, No.2 "Government now has a powerful vested interestin maintaining a highlevel of inflation. A return to price stability is not impossible, but will never occur unless Untangling certain fundamental changes are made." Japan and American Policy in the Web of the Far East 35 Inflation by Leonard P. Liggio U.S. interventionism has led to political instability, famine by Christopher Weber and mass murder throughout East Asia. But in one case it Inflation is driving prices up has led, almost by accident, to development of a faster than ever before in neo-capitalist culture to which militarism is anathema. American history. And President Carter's response has been an anti-inflation program which fleeces American wage earners DEPARTMENTS while evading the root causes of the problem. The Libertarian Editorials 4 Page ... 22 The Inflation Crisis; The Laetrile Issue; Coming Out of the Closet; Involuntary Servitude; Half past Carter

Editor: Roy A. Childs, Jr. Opening Shots 10 Senior Editor: JeffRiggenbach by Bill Birmingham Associate Editors: Walter E. Grinder Leonard P. Liggio The Public Trough 12 Joan Kennedy Taylor Businessmen and "Uncle Sugar" Contributing Editors: by Bruce Bartlett Murray N. Rothbard Bruce Bartlett Bill Birmingham Liberty's Heritage 14 Milton Mueller Voltairine de Cleyre Marshall E. Schwartz by Sharon Presley David Brudnoy Editorial Assistant: 18 Victoria Varga The MoveDlent by Milton Mueller Administrative Assistant: Pat Pope Art Director: The Pluntb Line 20 Andy Saunders The Meaning ofSan Jose Assistant Art Director: by Murray N. Rothbard Melanie Price Books and the Arts 38 The Libertarian Review is pub­ Ralph Raico on Irving Howe's Leon Trotsky lished monthly by Libertarian Jack Shafer on Jim Hougan's Spooks Review, Inc. Editorial and business offices, 1620 Montgomery Street, Shaton Presley on James C. Mohr's Abortion in America San Francisco, CA 94111. © 1979 and Linda Bird Francke's The Ambivalence of Abortion by Libertarian Review Inc. All David Brudnoy on Michael Cimino's The Deer Hunter rights reserved. Opinions ex­ pressed in bylined articles do not necessarily reflect the views of the Subscriptions: Single copy, $1.25; 12 issues (one editors or publisher. The Liberta­ year), $15; two years, $25; three years, $35. rian Review welcomes queries Address Change: Write new address, city, state and from authors but does not encour­ zip code on sheet ofplain paper, attach mailing label age submission of "unsolicited from recent issue ofLR, and send to Circulation manuscripts and assumes no re­ Department, Libertarian Review, P.O. Box 28877, sponsibility for them unless they San Diego, CA 92128. Second class postage paid at are accompanied by SASE. San Francisco and additional offices. rises in prices. Thus, as prices begin to rise at ever­ greater rates, an inflatio­ nary psychology takes hold, THE and people, expecting prices to continue escalat­ ing, spend at greater and greater rates, pushing prices up still further. Thus, the fact that there is a lag bet­ LIBERTARIAN ween newly created money entering the economy and price rises and the fact that people's expectations of future price rises count for EDITORIALS something in the economy mean that price rises may at first be less than the rate of creation ofnew money, and declines in living standards; Halting the inflation in later stages of an infla­ The inflation others will face rising un­ crisis will take vision and tionary crisis may sky­ .. employment. Anger and courage, and is therefore rocket far beyond the ac­ cnSlS frustration will begin to beyond the reach of either tual rate of monetary infla­ build. Republicans or Democrats. tion. In reaction, government It certainly cannot be ex­ Therefore, any attempt policy has become com­ pected from the likes of to slow down the rate of AFTER NEARLY A pletely unstable, first inflat­ Jimmy Carter. Inflation is monetary expansion will decade of erratic ing to combat unemploy­ ultimately caused by one not produce a slowing policies, the infla­ ment, thenslamming on the thing alone: by increasing down ofprice rises until the monetary brakes, and foist­ the money supply, by print­ inflationary psychology is tion crisis has hit us ing upon the American ing money and cheapening broken. In a time of unsta­ again. Vanquished people a hazy, "voluntary" the value of the monetary ble government policy, and since 1974, double­ program of wage and price unit. Yet if that is so, how governmental "failures of "restraints" shrouded in are we to explain the cur­ nerve," this may take a long digit inflat,ion is veiled threats. Will we have rent surge in prices? After time. Thus, even through back, and shows no mandatory wage and price all, the Carter administra­ the rate of increase in the sign of abating. All controls? "Definitely not!" tion, we are told, has over­ most significant money opines one voice. "Perhaps seen a slowing of the rate of supply figure-"M2"-has signs point to an if ..." squeaks another. growth in the money supply slowed in the last thirteen inflationary reces­ Whom are we to believe, these last few months. Why weeks (as of this writing) to sion which policy­ and what can we do about then are prices still rising? a mere 1.3 percent annual it? In this administration, As Christopher Weber rate, the percent increase makers had once the answer has become no argues at greater length for the year-to-date is a told us could never one and nothing. If Carter's elsewhere in this issue (pp. much greater 7 percent. administration has done 22-28), the answer is a sim­ And figures over the longer happen. In Janu.ary, nothing else, ithas at least ple one: when new money run are much greater than consumer prIces given the lie to the mushy enters the economy, prices that. So the increase in rose at an 11.8 per­ rationalization for govern­ do not rise in a mechanical prices which has hit us is ment planning. That fashion. People do spend notmerely a response to the cent annual rate­ rationalization has always money as they receive it, relatively low rate of up from 4.8 percent held that government plan­ according to their own pre­ growth in the money supply in 1976, 6.8 percent ning makes for stability and ferences, and it works its over the past thirteen predictability. Yet in mod­ way through the economy, weeks, but to the much in 1977, and 9 per­ ern pressure-group democ­ gradually affecting various greater rate of money sup­ cent in 1978. All racy, nothing could be relative prices. But people ply growth over the past indications are that further from the truth. One do not simply increase their decade and more. Despite a group after another is first spending in proportion as slowing ofthe growth ofthe it will continue up­ flattered and then betrayed. they receive newly created money supply, therefore, ward, wiping out Promises and commitments money. At first, before prices will· continue up­ are made one moment, prices begin to rise very ward. both savings and abandoned the next. Far quickly, they spend at their And so the question: will standards of living. from achieving stability, normal rate. Then, seeing Carter cave in? Will he ac­ Those on fixed in­ government policies have prices rising at seemingly celerate the growth of the made private planning an accelerating rates, they money supply again, or comes such as pen­ impossibility, security a bit­ spend money faster and fas­ even resort· to· mandatory 4 sions will face real ter joke. ter, to beat expected future wage and price controls?

THE LIBERTARIAN REVIEW Given Carter's spineless­ money supply-people will different economic theory. move beyond this doctrine. ness, no one can be sure. resist lowering their prices Since the Age of Keynes­ Far from leading to full Certainly his absurd prog­ (including wages) because or Inflation-began, one employment, inflation of ram of "voluntary" con­ they will quite realistically dominant theory has stood the money supply to stimu­ trols won't work, and it is fear that later mandatory in the way of political and late "aggregate demand" in pointless to ask that they be controls would lock them economic progress. That fact will only produce more "given a chance," as vari­ into those lowered wages dogma is symbolized by the unemployment in the long ous weeping pundit-clowns and prices. Faced with fal­ Phillips Curve and its doc­ run than that with which have begged. So, with that ling demand, people will trinaire rationalizations. we began. When unem­ safe assumption made, let's hold out, waiting for a re­ The Phillips Curve pretends ployment exists-whether look at what is likely to versal ofdemand which will to represent economic real­ of labor or anything else­ happen, and what ought to not take place-unless "re­ ity in terms of a simple it is because there is insuffi­ be done instead. flation" begins. "trade-off" between infla­ cient demand for it at the If inflation continues to These are the alterna­ tion and unemployment. prices which are being mount, pressure will either tives: if we resort to man­ To have less of one means asked. It is because there build for mandatory con­ datory controls, the result to have more of the other, has been a distortion of trols, or else, in the face of will be massive shortages, and vice versa. The theory "relative prices," in the rising unemployment and a followed by popular pres­ here consists, as EA. Hayek economy, because prices sharp downturn in econom- sures to drop them, and has put it, "in the assertion have failed to adjust to re­ flect economic reality. The true solution to unemploy­ ment, therefore, is to allow adjustments in supply and demand to be made: for some unemployed laborers to seek work in other areas or for some wages to drop slightly, so that more labor will be hired. So long as these adjustments are not made, unemployment re­ mains a very real problem. Inflation is no solution to the problem, because it causes the very thing it is meant to correct: the mis­ direction of labor and other resources in an economy. It draws resources-includ­ ing labor-into those areas where new money is being spent. Those resources, in turn, can only remain em­ ployed so long as the infla­ tion-the new money­ continues to be directed CLONES into those areas. And, as prices work themselves ic indicators, Carter will be rapid leaps of prices when that there exists a simple upward through the econ­ called upon to "stimulate" the controls are dropped. If positive correlation bet­ omy, this means that "full an abstract "aggregate de­ instead "aggregate de­ ween total employment and employment"can only be mand," to promote so­ mand" is "stimulated" by the size of the aggregate sustained by accelerating called "full employment" inflation ("reflation"), the demand for goods and ser­ inflation. When that spend­ by inflating. The result·of result will be a temporary vices." By now, this simplis­ ing and inflation come to a this will be a recession: gain in some economic in­ tic doctrine has been halt-as they eventually both unemployment and dicators, and, in the long­ smashed on the shoals of must-the result will be a prices will skyrocket. er-run, even faster rises in economic reality-which sharp increase in unem­ Nobody believes this prices, and an even more finds aggregate demand ployment. administration when it massive downturn in the and unemployment rising Take the aerospace in­ pledges not to go to man­ economy. There seems no at the same time-and also dustry as an illustration datory controls. So instead way out. And, given con­ in the theoretical works of here. Inflationary spending of reducing wages and ventional economic and such economists as Hayek of government money drew prices in the face of a political policies, there and Milton Friedman. resources-men and mate­ downturn in monetary isn't. Moving beyond the bind rials-into this area of demand-caused by re­ A different political of traditional politics and employment, to work on straints in the growth of the program must begin with a economics requires that we government-financed pro- 5 MARCH 1979 jects. As prices rose-an today the percentage of our on the issue of pensions. aftereffect of inflation­ labor force which is un­ Where is the money for the more and more money had ionized is falling and is now pensions of workers in... COIning out of to be spent in aerospace to slightly less than twenty vested? For the most part, the closet keep the sante level of percent. But more and more in the stock market. And employment. When the today unions realize that in what has been one of the spending stopped, the result bad economic times they most visible effects of infla- MOST LIBERTARIANS was a huge surge in un­ must allow wages to fall so tion and the business cycle are well aware of the N a­ employment in the aero­ that demand may be in- over the last decade? That tional Organization for the space industry-a veritable , creased and unemployment the stock market has in- Reform of Marijuana "recession." So itis with the reversed. There are already creased not a whit-the Laws. But it isn't at all cer­ economy as a whole. examples of this happening value ofstocks stands at the tain that most libertarians This means that the only in recent years: a few years same monetary level as a look upon NORML with way to fight inflation is to ago, the all-powerful con­ decade ago. Since other the friendliness and suppor­ halt the increase in the struction unions in New prices have doubled, this tiveness it deserves. True, money supply totally, and York State faced un­ , means that, by and large, NORML has adopted what to push for a system of flex­ employment rates in con­ pension funds invested in could only be called a ible wage rates and other struction of up to 18 per­ the stock ntarket have lost wishy-washy position on prices. And that, for con­ cent. They allowed wages halftheir value in a decade. the dope question for many ventional politics, is the of some workers to be cut If we combine this ominous years, calling for "de­ rub. by as much as 25 percent fact with the falloff in the criminalization" instead of For the dogma since the (wages are now nearly $15 birthrate, we can see the "legalization" of the devil early 1930s has held that an hour, with double-time danger ahead: unless we weed, for example-so that "we live in a world where for overtime) for certain can bring the business cycle you could grow your own wages can only rise." Thus jobs, and the result was a under control, by halting : for your personal use, but it is held that we have to dramatic surge in employ­ inflationary monetary you couldn't buy or sell the trick laborers into accept­ ment. Workers, moreover, policies and returning to a stuff" or smoke it publicly, ing lower real wage rates by made more money being system of flexible wage or even carry it with you in cheapening the value of employed at lower wage rates (and other prices), any significant quantity their money wage rates. rates than they did by going when workers reach re- when you left the house. Since wages are supposedly on unemployment. So it tirement, their pensions will And attorney-politician "rigid downward"-i.e. was in their interest to ac­ be worthless. Keith Stroup, the founder they can adjust upward in cept the lower-than-usual And that is the choice and, until recently, national good times, but not be low­ wages. It also lessened the which unions and other director of the organiza­ ered in bad economic incentive ofthose undertak­ workers face today: to un- tion, has embarrassed his times-we can supposedly ing construction projects to derstand that the pursuit of radical constituents with only promote full employ­ look for nonunion help, an illusory "full employ- depressing frequency, by ment by inflationary thus actually strengthening ment" policy by means of talking about the debilitat­ policies. the unions and further in­ inflationary monetary ing effects of pot smoking The problem is that this creasing the demand for policies, will only set and speaking ofit as a social manipulative approach has labor without inflationary further business cycles in problem comparable to al­ run out of steam. In in­ policies. motion, wreck the stock cohol drinking (which is flationary times, unions and But there is another, market, decrease the value something like thinking of other laborers vie with stronger, argument to use in of the currency and of pen- bicycles as a safety hazard monetary authorities, try­ convincing workers that sions, and lead to real, comparable to automo­ ing to second guess each they should accept a flexible widespread, human misery biles). other, trying to protect their wage-rate system, wages as today's workers reach Still, there have been wages from the ravages of that will increase during retirement age. signs all along that the inflation. times of high economic ac­ The only alternative is to problems with NORML If we are to solve this tivity and decrease in times freeze the money supply, were more strategic than critically important prob­ of low economic activity. and begin promoting flexi- philosophical. When lem, we must realize that And that is the effect of ble prices, for labor and Stroup founded the organi­ "sticky wages"-wages inflationary policies, in the other goods and services. 'zation ten years ago, he which do not adjust to long-run, on their pensions. This is the only way we can wanted to call it the Na­ economic reality-is now a Ludwig von Mises, F.A. both halt inflation and pur- tional Organization for the paper tiger. We must pro­ Hayek and others have sue a true full employment Repeal of Marijuana Laws, mote a system of flexible shown beyond a doubt that policy. Any other alterna- but was dissuaded by a prices and wages by remov­ it is inflationary policies tive will simply lead to con- more experienced politician ing government-imposed pursued to prop tip artifi­ tinuing crises, the destruc- named Ramsay Clark, who rigidities in our economy. cially high wage rates and tion of the market econ- argued that so radical a Andwe ntustntake laborers other prices, which gener­ omy, the spread of human name would put off many aware that this is in their ate business cycles, with the misery, and the rise of to- potential supporters. This interest. This task of per­ attendant effect on busi­ talitarianism. And from surely suggests that Stroup suasion will be easier than it ness, prosperity, and that there may be no road was starting out with the seems. economic growth. Well, back. proper goal in mind, and 6 We must remember that then" reflect for a moment -RAe only began working toward

THE LIBERTARIAN REVIEW are also our friends, not violent criminals." he joined Schott in calling for Involuntary immediate abolition of the servitude federal Drug Enforcement Administration. None of this means that "NATIONAL SERVICE" ~ NORML is not still work­ surfaces again, this time in ing for "decriminalization" two incarnations: the con­ of the weed. Gordon Brow­ servatives begin the chant nell, the organization's to revive the military draft; Western Regional Co­ the liberals sing the praises ordinator, describes that of non-military work for all plan as the most politically our lucky little teenies. The feasible one the organiza­ compromise proposal calls tion can work to adopt in of course for a choice, the the immediate future. He assumption being that if points out that such road­ one can choose to don a blocks to full legalization as military uniform or the cos­ the international anti­ tume ofthe do-gooder, then marijuana treaties to which all objections to conscrip­ the u.S. is a party will be tion are washed right out of entirely removed only after our hair. years of work. Why not Some alarm has been work in the short run for sounded by those who ob­ "decriminalization," which serve, accurately, that would at least reduce blacks have enlisted volun­ penalties-and in some tarily in the military in cases eliminate them numbers greater than their altogether-for the major­ proportion of the popula­ ity ofmarijuana users? Why tion at large. The implied not work diligently for premise of the objection is what Murray Rothbard that if the military is "too" calls "transition de­ black, it may somehow not mands"? It is quite "legiti- be responsive to the needs ~r?QJ1 mate and proper," of a non-black America. At ~-=-=---_.------~ Rothbard writes, "to advo­ bottom, that is, the objec­ Keith Stroup cate transition demands as tion is racist. If, in fact, a a lesser goal out of a sense sed is the rebel-without way-stations along the road military with, say, 40 per­ of political reality. him there would be no to victory, provided thatthe cent Negro enlistment is a There is also the matter progress." ultimate goal of victory is danger to the Republic, of where NORML's funds Finally, and most persua­ always kept in mind and then the whole thrust of come from,. namely the sively of all, there is the held aloft. In this way, the integration is a bust, and we Playboy Foundation of news which came out of the ultimate goal is clear and had best exclude Negroes publisher Hugh M. Hefner. seventh annual NORML not lost sight of, and the from all but kitchen work Hefner, as his celebrated conference, held early this pressure is kept on so that and have done. Or else, "Playboy Philosophy" year in Washington. Larry transitional or partial vic­ admit that the objection is makes clear, is fundamen­ Schott, the new national tories will feed on them­ hysterical and avoid using it tally (if not always consis­ director of the organiza­ selves rather than appease as an argument in favor ofa tently) libertarian in his tion, and Keith Stroup, who or weaken the ultimate restored draft. approach to thinking about is now chairman of its drive of the movement." Some of those who carry social issues. "The Playboy board of directors, an­ It appears that this is the their objections to what Philosophy," Hefner wrote nounced at that meeting path being consciously cho­ they insist on calling "wo­ nearly twenty years ago, "is that the official policy of sen at last by the major men's lib" to the farthest predicated on our belief in NORML has changed­ organization in the fight to reaches of absurdity­ the importance of the indi­ away from "decriminaliza­ eliminate our puritanical those, that is, who think vidual and his rights as a tion" and toward "legaliza­ and fascistic drug laws. that Phyllis Schlafly is the member of a free soci­ tion." NORMLdeserves our sup­ high priestess of reason­ ety.... Society benefits as "It only took us nine port in its newly defined complain that even volun­ much from the differences years to say we wanted legal campaign, for it has come tary enlistment by a large in men as from their dope," Stroup told repor­ forward-ten years too number of women would similarities, and we should ters. "Nine years of being late, perhaps, but better late be a bad thing for this coun­ create a culture that not hypocrites to ourselves and than never-as an uncom­ try. One might well share only accepts these differ­ the smugglers who bring in promising advocate of lib­ their objection to the in­ ences but respects and actu~ the dope we smoke. The erty. voluntary conscription of ally nurtures them ... Bles- people who sell marijuana -JR women, but to deny women i MARCH 1979 the right to choose military "ghetto." We have quite history before it emerged in they're almost certain to die service hardly accords with enough compulsion in this .~he early 1950s as a cancer ifthey depend on the recog­ the women's lib philosophy country as is. At the point of cure. Before that it was ad­ nized treatments. Is it any of the freedom of choice. a gun, government takes an vocated for use in the rapid wonder that they turn a What has emerged from increasingly larger share of aging of bootleg whisky, deaf ear on the medical es­ the latest statistical evalua- every worker's income; this and in the control and pre­ tablishment's claims that tion is this: the Army is is called 'the income tax" ·vention of flatulence. And Laetrile doctors are un­ today the only major arena and "FICA," but it is as far as anybody knows it scrupulous frauds who in American society where legalized theft no matter was worthless for those make millions from the black educational levels what it is called. That is bad purposes too. misery of cancer victims surpass those of whites. As enough. To take people's On the other hand, con­ and their families? After all, Professor Charles Moskos bodies as well as their sider the recent success of the physicians who dis­ ofNorthwestern University money merely compounds the medical establishment, pense the conventional said to Congress last year: the crime of government. with its surgery, its radia­ therapies charge a great "Whereas the black soldier Neither the draft nor "na- tion therapy, and itschemo­ deal more for their useless is fairly representative of tional service" is acceptable therapy. Withevery passing efforts than the Laetrile the black community, white in a free country. Both are' year, the cancer death rate doctors charge for theirs. It entrants'are coming from bad ideas that deserve firm gets worse, not better. And costs far more to die of the least educated sectors of rejection. since the 1950s, despite the cancer after enduring American society." This, -DB billions on billions of dol- surgery, radiation treat­ obviously, reflects the . lars which have been spent ments and chemotherapy alarmingly high rate of by patients and taxpayers than it does to die of cancer Negro unemployment in Th L ri1 to cure the disease, cure at a Laetrile clinic. this country. Chalk up . e aet e rates have only improved But the effectiveness of another negative mark for • .,on the average by about Laetrile and of the conven­ the minimum wage. And Issue to/a-and the cure rates tional cancer therapies isn't add a hefty dose of racism. have actually declined for really the issue here. The Then combat both, intelli- THE RECENT CASE OF some cancers, such as parents ofChad Greenhave gently, and make military three year old Chad Green cancer of the cervix. The not gone on record as be­ service more attractive: has reopened the temporar- fact is, the medical estab­ lievers in the value of Lae­ these are the free nation's ily dormant controversy lishment doesn't know trile and the worthlessness response to the current over Laetrile, which mil- much more about cancer of other cancer drugs. They situation in the military. lionsof Americans regard now than Hippocrates did have continued to treat The authoritarian response as a miracle cancer cure, 2400 years ago. their son's leukemia with is the call for reinstatement and thousands of doctors Is it any wonder then that chemotherapy, just as the of the draft. and other medical profes- millions of people are look- medical establishment of From the other end of the sionals regard as a fraud. ing for alternatives to the Massachusetts wants them political spectrum comes The medical establish- cancer therapies offered by to. But they have refused to Congressman Paul ment may well be right the medical establishment? obey a court order for­ McCloskey's plan for "na- about Laetrile. There is no· Is it any wonder that they bidding them to make use tional service," by which he hard evidence of its effec- are unconvinced by warn­ of Laetrile as a concurrent means the compulsory en- tiveness against cancer. ings that they may die if method of treatment. They listment of every American And it's true that Laetrile they depend on quack have fled the jurisdiction of youth in either the military had a long and checkered treatments? After all, the court responsible for or domestic do-gooding that order, and have refused work. Mr. McCloskey to be threatened into giving would permit the kids to up and returning to their choose. Which is very nice home state. ofhim, and no doubt erases The Greens, it would ap­ any doubt he may have pear, are concerned about about the contradiction be­ the issue around which the tween such compulsory entire Laetrile debate really service and what one pre­ centers: the issue ofwho is sumes is his philosophical to be in charge-thepatient commitment to freedom. or the doctor. No combina­ But liberty cannot be tion ofdoctors and judges is compromised with slavery, legally empowered to order even with temporary slav­ anyone to stop treating his ery, even when that slavery appendicitis with mustard is done in the name of plasters or his broken leg Goodness, even when that with cough syrup and re­ slavery is called "national port immediately to a hos­ service" and is designed to pital. Why, pray tell, should channel our energetic it be different with cancer youths into wonderfully ~ ... .. and Laetrile? 8 helpful work in the Chad Green: leukemia victim and Laetnle patient -JR

THE LIBERTARIAN REVIEW Guest Editorial

Half past Carter IN TONE AND SPIRIT, the foreign policy of the Carter administration now looks even more interven­ tionist than its predeces­ sors. You can applaud this or deplore it, but one thing stands out: If that is all this administration was going to do, then what was all the shouting about in its presi­ dential campaign of two years ago, and indeed dur­ ing its eight years as critics, before that? What this administration wanted, it seems, was to find some superficial way of distinguishing its foreign policies from those of Nixon and Kissinger, which were regarded as tainted by their very association. The Carter administration wanted the policies of Nixon and Kissinger with­ out the embarrassment of Nixon and the kibitzing of Kissinger. Actually, if the Carter administration foreign policy makers had ~-~~ their "druthers," they might --a...,ec:ito-~....t2.~ , have tried to move Ameri­ • ~\ \t-l 0\SCllS61MGa HOM~ RI6+If"~, OISn-&G-riON MUS1'8E MAD6 can foreign policy back ~ Au1""~1)R\AN ~~I~ t

THE LIBERTARIAN REVIEW that wonderfully fair and "The price of rice on the unbiased question, 52% of black market is said to be the respondents wanted three times higher in Ho more civil defense, 70/0 less Chi Minh City than in and 30% thought current towns only 100 kilometers efforts "about right." One away." And Porter quotes wonders, though not very "an economic specialist" as much, what the result saying: "The main thing we would have been if the are thinking about now is question had been prefaced providing enough glucose with the fact that "only a to prevent starvation." year ago the [Civil Defense] agency director himself, Bardyl Tirana, assured Congress that an additional After all that brouhaha appropriation of $44 mil­ over N orval Morris, that lion was not needed. And vile apologist for dope before that, Defense Secre­ fiends and other consenting tary Harold Brown was say­ adults, Jimmy Carter could ing the United States should hardly be expected to not make the mistake of nominate anyone who following the Russian might be soft on drugs to example in this area." (The boss the Law Enforcement Progressive, January 1979.) Assistance Administration. Still, one could have hoped for better than Henry Do­ gin, who is now acting ad­ The usual freak weather ministrator of LEAA-and conditions are causing the who used to head the Drug usual food shortages in Enforcement Administra­ socialist Vietnam. The citi­ tion. Let's hope the Senate zens of Ho Chi Minh City accepts him; Carter might (nee Saigon) now get only just nominate Pol Pot next. one kilogram of rice per month where they got nine kilograms just two years ago. (In the traditions ofthe It is a canard that an "Is­ er?) and a ship would no to be known as a place Marxian "classless soci­ lamic republic," such as the longer be referred to as where a useless product is ety," government workers Ayatollah Khomeini desires "she," but as "it." " 'They grown," cried one) and are get three kilograms a for Iran, would do brutal might as well make us claim suing the California State month.) The weather is not, things like chopping off the the world is flat again,' Fish and Game Commis- shall we say, entirely to hands of thieves. Ayatollah moaned a Navy officer in sion for permitting it. The blame; Gareth Porter, writ­ Mehdi Rouhani, a leader Washington-a woman county board ofsupervisors ing in the January 17, 1979, among the Shiite Muslims who did not want her name, declined to contribute issue of In These Times, in Europe, informed mentioned." (Los Angeles $2000 of county money to reveals that the Hanoi re­ Newsweek: "You don't cut Times, January 19, 1979.) advance the suit but did tell gime attempted to suppress off the whole hand-just the county counsel to con­ the black market in rice the fingertips." Good old tribute 15 hours of legal until August 1978. By then Andy Young must have had work. If the suit is success- the rice shortage in Ho Chi that in mind when he In Marin County, as ful, an environmental im­ Minh City was so severe gushed "Khomeini will be every TV viewer knows, pact report may be needed, that the government de­ somewhat of a saint when they Want It All Now. Ex­ which could bar the elk cided to end the restrictions we get·over this panic." cept for Jung T. Wang's elk ranch from Wang's agricul­ on private rice trading. antler ranch, of which they turally zoned land (elk "But although the order has want None Ever. Mr. Wang ranching is not "agricul­ been carried out in some wants to import and raise a ture," it seems). Wang has areas, it is being ignored in Porcine sexism looks herd of Rocky Mountain already had his problems others," Porter writes. good, mighty good, in light elk, and cut off their antlers with the Fish and Game "Buses are still being stop­ of a new Pentagon recom­ for use in Oriental aphro­ Commission, which had ped [on the roads to Ho Chi mendation that the Navy disiacs. Although one might refused to let him import Minh City] and supplies of purge itself of"sexist" lan­ think such an enterprise the Rocky Mountain elk rice greater than· required guage. Under the new dis­ would be tailor-made for until he promised to keep for a single family's needs pensation, seamen would Marin, various Marinites them behind a double, ten for a week are being confis­ be sailors, midshipmen deem it "inhumane" and foot high fence, lest they cated." Such practices have midshippeople (as in Mr. otherwise unlovely ("I escape and miscegenate had the predictable results; Midshipperson Hornblow- don't want Marin County with the native Tule elk. 0 11

MARCH 1979 Because of the unholy Thus in the recent election it alliance that exists between, was found that while labor THE the conservatives and busi­ gave almost all its financial ness, the conservativesfind support to liberal Demo­ themselves forced to defend crats, corporations gave no business even when they similar support to conserva­ knowitis wrong. Theclassic tive Republicans. lJBlLIC case is when businessmen The businessman's atti­ proclaim the virtues of the tude, reprehensible as it is, is ,0 GH free market, thus finding at least understandable in ·~·U··, .,.. commonert~rians cause~nd conse~vatives,withbothlib- this context: Ifthey give their n,. •••.. •. money to liberals they may W while actively seekmg gov­ not buy support for the free ernment favors for them­ market in general, but they selves. When thiscontradic­ can buy support for that cor­ tion arises, the libertarians poration's or that business­ Businessnten institutions which tradi­ immediately drop support man's particular interests. tionally oppose change: the for any businessman in­ Indeed, since liberals have and landed aristocracy, the volved, but conservatives no philosophical opposition church, the military and big cannot. The result is, 0 b­ to government intervention "Uncle Sugar" business. In the United viously, an undermining of in theeconomythey are actu­ States, as Louis Hartz has the conservative position. If ally preferable to conserva­ BRUCE BARTLETT pointed out, such alliances the businessmen repaid the tives as far as businessmen are impossible, for histori­ conservatives for their sup­ are concerned, if their desire ONE OF THE cal and cultural reasons. portwith large financial con­ is to get a government con­ Because of this, American tributions then it might be a tractora newregulation that principa!differences conservaives really,have no worthwhile trade-off. But will stifle competition. And between libertarians natural ally, except for busi­ the real irony is that busi­ if by chance a Republican and conservatives ness. So they areforced tolie nessmen do notsupportcon­ should win, nothing is lost. in the same bed together servatives generally except TheRepublican hasno other has always been whether they like it or not. when it serves their interest. institutional base and will their contrary atti­ tude toward busi­ nessmen. Conserva­ tites glorify and ally themselves withbus­ iness, while libertar­ ians are essentially neutral-siding with business when it is right, but pulling no punches when it is wrong. The conser­ vatives, no matter how much they may realize thatbusiness­ men are subverting their goals, cannot attack business be­ cause, unlike the European conserva­ tives, they' have no other, institutional base. In Europe the conservatives have a natural, historical 12 alliance with those

THE LIBERTARIAN REVIEW have to ally himselfwith bus­ tothe arbitraryinterventioninto iness whether he wants to or our economic life by the state. not, in order to get reelected. Unless the conservatives If the Republican Party break their unholy alliance NowAvaIlable: were smart it would realize with business and adopt the that it gains nothing and libertarian position, the lib­ losesmuchbybeinga mouth­ erals may move into the gap piece for business. Although and adopt it for themselves. it is somewhat better off fi­ There is considerable evi­ nancially than the Demo­ dencethattheCarterAdmin­ cratic Party, it has been man­ istration will continue to ifestly unsuccessful in trans­ make an issue out ofderegu­ lating this advantage into lation,byhittingatthoseself-. electoral victories generally. serving businesses which So even ifitlost a few dollars, have benefited from regula­ this could be more than off­ tion for so long. First it was set bygaining newcredibility the airline industry and next withtheAmericanpeople. In will likely be the trucking in- . fact, the party would proba­ dustry. In each case itwasthe bly not lose any money any­ businessmen who· opposed way, because businessmen deregulation, thereby play­ would have to buy their in­ ing right into Carter's hands. fluence with Republicans And, as a consequence,many . just as they now do with conservatives were forced Democrats. into the position of defend­ I believe the day is coming ing the industry's interests. whenconservativeswill have Senator Barry Goldwater, no choice but to adopt a lib­ for example, whose Con­ ertarian attitude toward science ofa Conservative ex­ Hilaire Belloc: business. The contradic­ tolled the virtues of a free Edwardian Radical By John P. McCarthy tions are becoming too market, was a staunch foe of airline deregulation.. A perceptive, lucid, acute. Thus William Simon and carefully­ writes in his book, A Time Recently,Joan Claybrook; researched look at for Truth: a liberal ex-Naderite who is Belloc and British polit­ a member of the Carter Ad­ ical history during the Throughout the last century ministration, sounded what Edwardian period, the the attachment of businessmen may be a key Carter cam.: first years of the twentieth century. Dr. McCarthy is to free enterprise has weakened paign theme in 1980 when dramatically as they discovered Assistant Professor of His­ she asked: "Howmanytruck­ tory at Fordham University. theycould demand-andreceive ing and airline companies Hardcover $8.00, Paper­ -short-range advantages from back $3.00. the state. To a tragic degree, co­ have been ready to shoulder ercive regulation has been in­ the old-fashioned rigors of vited by businessmen who were market pricing and entry by The Servile State unwilling to face honest compe­ supporting proposals to put By Hilaire Belloc tition in the free market, and by the regulators ofthese indus­ A perceptive warning, first published in 1913, of the conse­ businessmen who have run to tries out of business? It is quences of statism and the effect of socialist doctrine on government in search ofregula­ compellingly clear that capitalist society. With an introduction by Robert Nisbet. tory favors, protective tariffs, "A landmark of political thought in this century"- Walter manycorporationswelcome Lippmann. Hardcover $8.00, Softcover $2.00. and subsidies, as well as those government when it is subsi­ monopolistic powers which dizer oflast resort, lender of only the state can grant. In the process of seeking such advan­ last resort, guarantor of last tages-such protection from resort, insurer of last resort, freedom-business itself has and cartel-defender of last helped build up the very govern­ resort?' In short, she says, Ltberty~ ment powers which are now be­ "Uncle Sam is fine when he ing used to damage and even to plays Uncle Sugar?' (Regula:.. destroy it. tion~ Nov/Dec 1978) Duringmy tenureatTreasury, If Carter follows through LIbertyDasSlCS I watched with incredulity as with such an appeal byadop­ businessmen ran to the govern­ ting a more libertarian atti- . ment in every crisis, whining for tudetowardbusinessitcould We pay postage on prepaid orders. handoutsorprotectionfrom the gain him powerful support To order these books, or for a copy very competition that has made of our catalog, write: this system so productive...And and help ensure his reelec­ LibertyPress/LibertyClassics tion. Republicans, conser­ 7440 North Shadeland, Dept. F19 always, such gentlemen pro­ Indianapolis, Indiana 46250 claimed their devotion to free vatives, and businessmen enterprise and their opposition should beware. ~ Born in a small village in Michigan in 1866, Voltair­ ine, plagued all her life by poverty, pain and ill health, ~IBERTY'S died prematurely at the age of 45 in 1912. The short span of her life, ending be­ fore the great events of the 20th century, is, in Avrich's opinion, the major reason ERITAGE why Voltairine de Cleyre has been overlooked, unlike th_c longer-lived Emma Goldman and Alexander Voltairine Berkman. de Cleyre The strength of will and independence of mind SHARON PRESLEY which so strongly charac­ terized this remarkable woman manifested them­ EMMA GOLD­ selves early in Voltairine 's man called her "the life. Forced into a Catholic convent school as a teen­ most gifted and bril­ ager, she chafed at the stifl­ liant anarchist ing, authoritarian atmos­ womanAmerica ever phere and was later to speak of"the white scars on produced."Yet today my soul" left by this painful Voltairine de Cleyre experience. Bruised but un­ broken, Voltairine emerged is virtually unknown an atheist and soon gravi­ even among libertar­ tated toward the flourishing ians. She is discussed freethinkers' movement. Influenced by Clarence only briefly in his­ Darrow, she flirted briefly tories of American with socialism but her anarchism and is not deep-running anti-authori­ tarian spirit soon rejected it even mentioned at all in favor of anarchism. in the more general As with Emma Goldman, studies ofJames Joll, the hanging of the Hay­ market martyrs made a pro­ George Woodcock found impression on Vol­ and Daniel Guerin. tairine and was the major impetus in her turn toward Though her writing American anarchist feminist Voltairine de Cleyre: a nearly anarchism. In 1888, she was both volumi­ forgotten major figure in the libertarian movement ofthe' 1890s threw herself into the nous and powerful, anarchist movement, dedi­ American Traditions"; and rich, ~~possesses the glow of cating herself passionately she appears in only ironically, neither is primar­ legend." and unceasingly to the one modern anar­ ily anarchist in content. (See In An American Anarch­ cause of liberty for the rest chist anthology. American Radical Thought, ist: the Life ofVoltairine de ofher life. edited by Henry Silverman, Cleyre (Princeton Univer­ Though seldom in the (Man! An Anthology and Law and Resistance, sity Press,1978), Avrich public limelight-unlike of Anarchist Ideas, edited by LawrenceVeysey.) makes that legend come Emma Goldman, she Essays, Poetry and Voltairine de Cleyre was, alive, revealing not only shrank from notoriety­ in the words of her biog­ Voltairine de Cleyre the Voltairine was a popular Commentary, edited rapher, Paul Avrich, "A anarchist but Voltairine de speaker and an untiring by M. Graham.) brief comet in the anarchist Cleyre the person as well. writer. In spite of financial firmament, blazing out Researched with Professor circumstances which forced Only two recent col­ quickly and soon forgotten Avrich's usual thorough­ her to work long hours,and lections ofAmerican by all but a small circle of ness and skill, but never despite a profoundly un­ radical thought in­ comrades whose love and dry, this biography paints a happy life which included devotion persisted long fascinating portrait of a several near-suicides, an clude her classic after her death." But "her woman whose story richly almost fatal assassin's bul­ 14 "Anarchism and memory," continues Av- deserves to be told. let, and a number of ill-

THE LIBERTARIAN REVIEW fated love affairs, she au­ end, the Dominant Idea came increasingly skeptical adjectives" had other adhe­ thored hundreds of poems, energized Voltairine to ever of her talents, most of her rents as well-Errico Mala­ essays, stories and sketches greater intellectual efforts, associates considered her a testa, Max Nettlau and in her all too brief life. raised her to the supreme brilliant thinker. Marcus Lum among them. These Highly praised by her col­ heights of an exalted ideal, Graham, editor of Man!, advocates of non-sectarian leagues for the elegance and and steeled her Will to con­ called her "the most anarchism tried to promote stylistic beauty of her writ­ quer every handicap in her thoughtful woman anarch­ tolerance for different ings, Voltairine possessed, tortured life." ist of this century" while economic views within the in Avrich's opinion, "a Yet the ascetic also had George Brown, the anarch­ movement, believing that greater literary talent than the soul of a poet. In her ist orator, declared her "the economic preferences any other American anar­ poetry and even in her most intellectual woman I would vary according to chist," surpassing even prose, Voltairine eloquently ever met." Joseph Kucera, individual tastes and that Berkman, Goldman and expressed a passionate love her last lover, praised her no one person or group had Benjamin R. Tucker. of music, of nature and of logical, analytic mind. Av­ the only correct solution. Goldman herself believed Beauty. "With all her devo­ rich himself, a careful histo;. "There is nothing un­ Voltairine's prose to be dis­ tion to her social ideals," rian not given to undue Anarchistic about any of tinguished by an "extreme says Emma, "she had praise, concludes that she [these systems]," declared clarity of thought and orig­ another god-the god of was a "first-rate intellect." Voltairine, "until the ele­ inality of expression." Un­ Beauty. Herlife was a cease­ Voltairine's political ment of compulsion enters fortunately, only one collec­ less struggle between the stance in the anarchist spec­ and obliges unwilling per­ tion of her writings-The two; the ascetic deter­ trum was no less compli­ sons to remain in a com­ Selected Works of Voltair­ minedly stifling her longing cated than her other views munity whose economic ine de Cleyre, edited by for beauty, but the poet in and even less well-under­ arrangements they do not Berkman and published by her determinedly yearning stood. Avrich dispels the agree to." Mother Earth in 1914­ for it, worshipping it in myth created by the errone­ Voltairine's plea for tol­ was ever put together, leav­ utter abandonment...." ous claims of Rudolph erance and cooperation ing much fine material Another manifestation of Rocker and Emma Gold­ among the anarchist buried in obscure journals. Voltairine's complex nature man that Voltairine became schools strikes a modern Both Voltairine 's life and was her ability to be both a communist anarchist. In note, making us realize how her writings reflect, in Av­ rational and compassion­ 1907, points out Avrich, little things have changed. rich's words, "an extremely ate, a combination that Voltairine replied to Em­ Factionalism rages yet, with complicated individual." Benjamin Tucker, like some ma's claim, saying, "I am fervent apostles still all too Though an atheist, Voltair­ modern day individualist not now and never have eager to read the other side ine had, according to anarchists, thought led to been at any time a Com­ (whether "anarcho-capital­ Goldman, a "religious zeal inconsistency and ambiva­ munist." Beginning as a ist" or 'anarcho-commu­ which stamped everything lence. Voltairine didn't see Tuckerite individualist, nist") out of the anarchist she did ... Her whole na­ it that way. "I think it has Voltairine turned in the fold. The notion that the ture was that of an ascetic." been the great mistake of 1890s to the mutualism of pluralistic anarchist socie­ "By living a life of our people, especially our Dyer Lum. But she eventu­ ties envisioned by people religious-like austerity," American Anarchists rep­ ally grew to the conclusion like Voltairine ,de Cleyre says Avrich, "she became a resented by Benjamin R. that neither individualism might in fact be the most secular nun in the Order of Tucker, to disclaim senti­ nor collectivism nor even realistic expectation about Anarchy." In describing ment," she declared. In her mutualism was entirely human nature seems even that persistence of will essay, "Why I am an satisfactory. "I am an Anar­ more lost on anarchists which inspired her, the Anarchist," she wrote, "Itis chist, simply, without today than in her time. anarchist poet Sadikichi to men and women of feel­ . economic labels attached," Another of V'oltairine's Hartmann declared, " ... ing that I speak ... Not to she was finally to declare. special concerns was the her whole life seemed to the shallow egotist who Unhyphenated anarch­ issue ofsexual equality. In a center upon the exaltation holds himself apart and ism or "anarchism without time when the law treated over, what she so aptly cal­ with the phariseeism of in­ led, the Dominant Idea. tellectuality, exclaims, 'I am Like an anchorite, she more just than thou'; but to COMING flayed her body to utter those whose every fiber of more and more lucid and being is vibrating with emo­ NEXT MONTH convincing arguments in tion as aspen leaves quiver favor of direct action." in the breath of Storm! To Milton Mueller, Justin Railllondo "The Dominant Idea," those whose hearts swell wrote Emma Goldman in with a great pity at the piti­ and Roy A. Childs, Jr. on the her commemorative essay ful toil ofwomen, the wear­ Voltairine de Cleyre, "was iness of young children, the Resurrection ofthe Draft the Leitmotifthrough Vol­ handcuffed helplessness of Christopher Weber on tairine de Cleyre's remark­ strong men!" able life. Though she was But Voltairine was no George Kennan's constantly harassed by ill­ emotional sentimentalist, health, which held her body wanting in serious argu­ Cloud ofDanger captive and killed her at the ments. Though Tucker be- 15 MARCH 1979 women like chattel, "Vol­ day,Voltairine's bad ex- for Voltairine, it was Dyer personal charm. Emma tairine de Cleyre's whole periences with the tradi- Lum, for Emma, Alexander claimed that "physical life," says Avrich, "was a tionalism of her lovers was Berkman. But,.sadly, both beauty and feminine attrac­ revolt against this system of a misfortune she shared women lost these men as tion were withheld from male domination which, with Emma Goldman. lovers. Lum committed sui­ her," another myth that like every other form of Though totally different in cide in 1893 and Berkman's Avrich shows to be false. In tyranny and exploitation, personality-"Voltairine 14 years in prison left truth, most of Voltairine's ran contrary to her anar­ differed from Emma as psychological scars that comrades, both men and chistic spirit." That such a poetry differed from changed the nature of his women, found her beauti­ brilliant, unusual woman prose," says Avrich-the physical relationship with ful, elegant and charming. would be a feminist is no lives of the two women had Emma, if not their emo­ The photos of Voltairine surprise. "Let every woman curious parallels. Most of tional one. included in the biography ask herself," cried Voltair­ testify to the truth of these ine, "Why am I the slave of views-pictured is a deli­ Man? Why is my brain said cate woman with a soft, not to be the equal of his mysterious beauty that was brain? Why is my work not in sharp contrastto Emma's paid equally with his?" earthy robustness. Emma, a These themes of sexual friend once pointed out, equality.and feminism pro­ was not above jealousy. vided the subjects of fre­ Yet, in spite of their per­ quent lectures and speeches sonal differences, Emma in Voltairine's years of ac­ and Voltairine respected tivity, including topics like each other intellectually. "Sex Slavery," "Love in For her part, Voltairine Freedom," "The Case of publicly defended Emma on Woman vs. Orthodoxy," several occasions, including and "Those Who Marry Do the passionate plea, "In IlL" Defense ofEmma Goldman The subject of marriage and Free Speech," which was one of Voltairine's Emma notes in her com­ favorite topics. Though she memoration of Voltairine. valued love, she totally. re­ In that essay, Voltairine de jected formal marriage, Cleyre (Oriole Press, 1932), considering it "the sanction Emma pays eloquent tri­ for all manner of bes­ bute to Voltairine. She was, tialities" and the married writes Emma, "a wonderful woman "a bonded slave." spirit ... born in some Her own unfortunate ex­ obscure town in the state of periences with most of her Michigan, and who lived in lovers, who, even without poverty all her life, but who the ties of formal marriage, by sheer force ofwill pulled treated her as sex object and herself out of a living grave, servant, convinced Voltair­ cleared her mind from the ine that even living with a darkness of superstition­ man· was to be avoided. turned her face to the sun, When she learned that Wil­ "Voltairine De Cleyre believed perceived a great ideal and liam Godwin and Mary determinedly carried·it to Wollstonecroft (her hero­ there was nothing unlibertarian every corner of her native ine).had lived in separate about any econontic system, until land ... The American soil apartments even though sometimes does bring forth they were lovers,. she was the elem.ent ofcom.pulsion exquisite plants." delighted. "Every indi­ We are indebted to Paul vidual should have a room entered the picture:' Avrich for bringing this re­ or rooms for himselfexclu­ markable woman out ofher sively!," she wrote to her obscurity and displaying mother, "never subject to their lovers turned out to be But in othermatters, Vol­ the blossoms of that "ex­ the intrusive familiarities of disappointingly conven­ tairine and Emma had little quisite plant" in all their our present 'family life' ... tional in matters of sexual in common. In fact, they inspiring beauty. 0 To me, any dependence, roles but there was in each quickly took a personal dis­ any thing which destroys woman's life at least one like to each other. Voltair­ Sharon Presley is National the complete selfhood of lover who was not of this ine thought Emma flam­ Coordinator of the Associa­ the individual, is in the line traditionalist stripe. Each boyant, self-indulgent, un­ tion of Libertarian Feminists. of slavery and destroys the loved a man who was her attractive and dumpy; This essay is the first in her pure spontaneity oflove." intellectual equal and who Emma considered Voltair­ projected series on libertarian 16 Not surprisingly for that treated her as an equal- ine ascetic and lacking in and anarchist feminists.

THE LIBERTARIAN REVIEW LUDWIG von MISES DISSECTS THE INFLATION ENIGMA

ON THE MANIPULATION OF MONEY AND CREDIT translated by Bettina Bien Greaves and edited byPercyL.Greaves,Jr., as authorized by Mises. A colle.c­ tion of some of Mises' major contributions on money, credit and inflation is now available in English fo~ the first time. 352 pages $14.00

Long the giant of free market economists, Mises ALSO IN THE MISESIAN TRADITION foresa'" the threat of inflation as early as 1912. For Understanding the Dollar Crisis, by Percy L. Greaves, Jr. six decades he warned against the fallacious doc­ • Foreword by Ludwig von Mises • 326 pages •A brilliant analysis ofmoney and inflation trines that took root between the two World Wars. Hans Sennholz, He perceived the source of our troubles a half a • The theory 'he exppunds is essentially that ofMises ... century ago and over the years traced the growth his presentation 1S lucid and concise without being over­ simplified Henry Hazlitt. of our present economic plight. • Professor Greaves has an exceptional understanding of free market theory and its application to money. I hope this book has a great success and that it sells many copies. On these pages, he explains, among other things: Ludwig von Mises Mises Made Easier, A GLOSSARY for Ludwig von Mises' HUMAN ACTION • Prepared by Percy L. Greaves, J r. • How politicians produce "booms" that Inust • Foreword by Mrs. Ludwig von Mises • 175 pages "bust." • Virtually a necessity for studying von Mises' work, but it is also interesting reading on its own. • The flaws in all current attempts to stabilize the Harry Browne purchasing power of money. Free Market Economics, Two volume Set, By Bettina Bien • Why we have "stagflation." Greaves • 242 and 286 pages paperbound. The SYLLABUS begins with "basicS" (i.e., the nature of •A simple remedy for mass unemployment. the individual, the needsfor private property ifthere is to be • The weaknesses of index numbers. free exchange, and the voluntary cooperation that creates the miraculous "interconnectedness" of the free market). • The balance of payments phenomenon. Then comes a section on "principles" (pricing, savings, the role of tools, labor and wages, money and credit, competi­ • The difference between the expansion of com­ tion and monopoly, and cross border trading.) ... the root modity credit and circulation credit. ideas ofLudwig von Mises are sounded again and again. John Chamberlain • The role of gold. The BASIC READER contains 81 articles carefully selected to help develop the ideas presented in the SYLLABUS. They • How politically created money enters the include severalwritten bv L ud'Wig7ionM ises, Percy L. Greaves, economy. Jr., ffenry Hazlitt, Leonard E. Read, and Hans Sennholz. • The only way to lower interest rates. • •••••••••r •••••••••••••••••••••••••••••••• ~ • The important "unseen" consequences of FREE MARKET BOOKS IJ'V P.O. Box 298 Dobbs Ferry, N.Y. 10522 "inflation." Please send me: • How and Why "inflation" must come to an end. On the Manipulation of Money and Credit _@ $ 14.00 Understanding the Dollar Crises _@ $ 7.00 Professor Mises, now deceased, has left us his Mises Made Easier @ $ 8.00 wise words which can still light up the road to eco­ Free Market Economics: (paper) nomic sanity and.a prosperous society in which all Syllabus _@ $ 6.00 Basic Reader @ $ 6.00 who want to work can earn sound dollars with an New York residents please include ever increasing purchasing power. approprzate sales tax PLEASE ADD $1.00 postage and handling $1.00 TOTAL o Send price list of Mises' books-in-print If you are perplexed by inflation, order your Name --- copy of Mises' ON THE MANIPULATION OF Address. _ City/State Zip - MONEY AND CREDIT. DO IT NOW. •.•...... _-_._---_.. from private contacts ofhis, and says he wants to raise "a lot of money from non­ libertarians." Clark dis­ THE putes the need for a full­ time campaign when the election is still a year and a half away. He believes he should concentrate his campaign efforts into the MO MENT last six months before the election so that support will Angeles earned a fair-sized spreading the suggestion peak on election day. MILTON MUELLER article in the widely re­ that Clark should really run "Roger MacBride tried spected Los Angeles Times, for the Senate in 1980, not campaigning early at full and a joint news conference the presidential nomina­ steam during his 1976 cam­ THE FIRST BIG with Clark, Hunscher and tion. This didn't go over paign," Clark said, "but the showdownin the LP other representatives of the very well, and in the end, media couldn't have cared California LP was discussed the Hunscher forces less about his candidacy presidential race has in the San Francisco papers, pounded away at one major until the Republicans and taken place. Ed the San Jose paper, the issue: the "full time cam­ Democrats chose their Clark formally an­ Stanford Daily and several paign." Clark, it was ar­ nominees. In the meantime, radio stations. The San Jose gued, still works as a lawyer Roger wore himself out and nounced his inten­ Mercury-News went so far in Los Angeles, and the diluted his financial re- tion to run for the as to report in detail on the party needs someone to hit i sources." Clark believes LP Presidential parliamentary maneuver­ the road full time between that he successfully maxi­ ing of the pro-Clark and now and November of mized his effect in the nomination Febru­ pro-Hunscher groups on 1980. Hunscher, who is in­ California governor's race ary15, a few days the convention floor. dependently wealthy, can i by concentrating his time Clark supporters, clearly do it-Clark cannot. Hun­ and money on the last before the Califor­ an overwhelming majority, scher has also boasted ofhis .months of the campaign. nia LP's State Con­ seized opportunities to turn ability to raise several The election of delegates vention in San Jose. any mention or appearance hundred thousand dollars to the National Convention of Clark into a loud "Clark Though the an­ for President" demonstra­ nouncement had tion. The Clark hospitality been expected, the suite was jam-packed; Clark fielded questions as presence at the con­ he stood on a luggage shelf vention of both over a sea of rapt, upturned Clark and Bill Hun­ faces. The Hunscher forces attempted to duplicate this scher, the other de­ performance, but the clared candidate, crowds were thinner and the answers· not as lucid. brought even more A sort of proxy debate i~tensity to the al­ between Clark and Hun­ ready vigorous con­ scher raged in the conven­ tion's cloakrooms and vention activity. cocktail parties. Supporters It is a measure of of Clark cited his ability to the distance we have articulate the sweeping ideological vision of liber­ come that a race for tarianism, his detailed the· LP nomination grasp of the issues, and his fl uent responses to tough has brought as questions-an ability much media cover­ honed during the 1978 age in California as California gubernatorial campaign. Roger MacBride's Detractors of Clark were actual candidacy in turned off by his low-key the final months of delivery and rather monot­ onous voice. And the Hun­ 1976. Hunscher's scher camp tried to under­ 18 swing through Los mine the Clark effort by Bill Hunscher

THE LIBERTARIAN REVIEW reflected a nearly 95% the new was starkly demon­ and Ed Clark are attempt­ Clark sweep-not very strated in the selection of The fight for the ing to make Clark's 1978 surprising in Clark's home the new California state tuition tax credit campaign proposal of an state, after all. The Clark chair. June Genis, the $800 tuition tax credit a forces won a key floor vote hard-working LPC Secret­ The deterioration of the reality. This proposal, like mandating at-large, direct ary, lost what everyone had compulsory public schools the Alaska bill, would allow selection of delegates at the assumed would be a routine has created a major politi­ corporations to donate up convention. The Hunscher ratification as party chair. cal opportunity for liberta­ to 250/0 of their tax liability supporters had wanted re­ She was upset by a relative rians. Property tax savings for scholarships. But the gional selection of dele­ newcomer to the LP, James voted for by angry tax­ California group wants the gates, which would have Reichle, a Nevada County payers have generally taken proposal to include paroc­ given them more time to activist. While June Genis their biggest bites out of hial and other religious travel around and build up was universally respected in school budgets, undermin­ schools, even though such a support. However, the ef­ California for her dedicated ing a corrupt and wasteful move risks being ruled un­ fect of this "victory" was work, she was perceived as system even further. Busing constitutional. Since religi­ diluted when the Clark part of a core of entrenched has alienated white and ous schools are one of the supporters failed to offer a party stalwarts who tend to black parents alike; state most prominent alter­ slate of delegates commit­ think small and resist new equalization has "leveled natives to government ted to Clark. This option programs. She was also down" whatever good schools, the group feels any was actually avoided at hurt by her ties to the Hun­ schools are left. And the e1ectorally viable tax credit Clark's own request, as he scher campaign. At any percentage of families send­ bill must include them. To feared it would be divisive. rate, the dramatic first bal­ ing their children to private contribute to the California To many Clark suppor­ lotsaw Genis and Reichle schools keeps rising. Given effort, write to Bob Costello ters, Clark symbolized the tied exactly, making a sec­ this political context, the at 1620 Montgomery infusion of political reality ond ballot necessary. tax credit for private school Street, San Francisco, into the party, making the Genis's support then slip­ tuition is a powerful and California, 94111. Clark for President cam­ ped and Reichle was timely program. The Kansas Libertarian paign into a war on the elected. Party stalwarts In Alaska, Libertarian Party, which until recently older and stagnant sections were stunned. N everthe­ Party representative Dick was all but dormant, has of the party bureaucracy, less, we can expect to see Randolph has submitted a also found the tax credit which they saw as standing more of this wherever suc­ tax credit bill to the Alaska issue a viable one. Their in the way of progress. This cess engulfs· the Libertarian State Legislature. House proposal is being intro­ conflict between the old and Party. Joint Resolution #19, sub­ duced to the voters in the mitted by Randolph on form of a campaign for the February 15, provides for a Wichita, Kansas School $1,500 tuition tax credit. Board in which Sue Rolfson Corporations are also al­ and Karl Peterjohn are run­ lowed to donate up to 250/0 ning as Libertarians. They oftheir corporate tax liabil­ have proposed a $500 ity for the education of property tax credit for any children. Because of the child between the ages of 5 infuriating insistence of the and 18, a property tax cre­ 'Supreme Court that tax dit of up to 50% for scho­ credits-allowingpeople to larships donated to educate keep their own money, in poor children, and a state other words-constitutes a income tax credit to sup­ "state action or subsidy," plement the property tax Randolph has excluded credit. To contribute to the parochial schools from Wichita School Board cam­ qualifying for the tax credit. paign, write to the Liberta­ People interested in obtain­ rian Committee for Educa­ ing copies of House Joint tion, Box 18241, Wichita, Resolution #19 should Kansas 67218. write to Randolph's office at 1105 Cushman Street, Fairbanks, Alaska 99701. Businessmen against A group oflibertarians in favors for businessmen California is also working on a tax credit program, The free market has always r which would be put before needed defenders in the bus­ ~ the voters as an initiative. iness world who are un­ m ~ John Lindl, the proprietor tainted by the hypocrisy of z of a Montessori school, Bill political favors and subsidi­ ~ Burt, the director of the zation. If capitalists are ever ~. West Coast office of the Ed Clark National Taxpayer's Union, (continued on page 21) 19 MARCH 1979 and limited government the discussion-club, affinity people to coexist peacefully group, "circle" stage of the THE and harmoniously within libertarian movement. We the Libertarian Party ever have now shown, in count­ since. less ways, that we are The next great step for­ strong and popular enough ward in the L.P. occurred at to transcend that stage, to LUMB the New York national move rapidly toward pro­ convention of 1975, when fessionalism and real-world the second ideological con­ politics. For we must never flict within the party was forget the purpose ofwork­ INE resolved. Specifically, the ing in the Libertarian Party. platform was stripped of its The purpose is not to militarist and pro­ socialize, discuss science­ interventionist elements, fiction, contemplate our mente In the case of the and the party was firmly dreams, or perform busy­ The tneaning libertarian movement and committed to a noninter­ work. The purpose is to of San Jose the Libertarian Party, many ventionist foreign policy as win, to transform America years were spent in refining the logical implication of and eventually the entire theory, in elaborating the libertarian principle. In the world from a regime of MURRAYN. ultimate goal toward which 1977 national convention statism to a world ofliberty. ,ROTHBARD weare working. Before we at San Francisco, this vic­ The California L.P. con­ could progress to the next tory for a noninterven­ vention held in San Jose on IN MY LAST stage of growth, we had to tionist foreign policy was February 16-19 was a fas­ Plumb Line (Feb­ resolve our theoretical dis­ cemented and expanded, cinating example of the ten­ putes, either by convincing and retrogressive attempts sion between these two ruary 1979), I wrote each other or by agreeing to by a handful of pro-war broad tendencies within the of the problem that disagree and going on to interventionists were de­ party. In the opening debate something else. feated with ease by the on foreign policy between the space cadet wing In the Libertarian Party overwhelming majority of Tibor Machan and Roy of the Libertarian we have happily resolved convention delegates. Childs, Machan tried desp­ Party poses to the the various ideological is­ With the major ideologi­ erately to throw sand in the sues and begun to transcend cal issues thereby resolved, machinery by attempting to party's continued them. Most specifically, the Libertarian Party has revive the old anarchist and growth and de­ there were two major been able to leap ahead and interventionist debates. But velopment. Looking theoretical issues that to confine its qu~rrels to since he characteristically needed to be settled. One strategic and organiza­ tried to do so by repeatedly at the problem more was anarcho-capitalism vs. tional questions. These are proclaiming his total ignor­ analytically, we find limited government, a dis­ healthy growing pains, for ance of foreign affairs, the pute that was solved in a no ideological movement effect was almost ludicrous. that this syndrome is detente hammered out in can make its mark on na­ The convention ulti­ part of a broader the 1974 national conven­ tional politics until its mately centered around the phenomenon. tion at Dallas. The two fac­ ideological problems are competing candidacies for tions decided to bury their settled and the major ques­ the L.P. Presidential nomi­ All ideological differences for purposes of tions become tactical and nation of Edward Clark movements begin as political action, purging the organizational ones. and Wiliam Hunscher. localized discussion party platform of all The major organiza­ Clark, whose phenomenal explicitly pro-government tional conflict now within 377,960 votes for Gover­ groups, arguing planks, and attacking gov­ the Libertarian Party is nor of California last over problems of ernment for its numerous simply this: shall the LP, November comprised 5.5% high, abstract theo­ illegitimate interventions. without compromising one of that state's voters, is Our ultimate goals, apart whit on its principles, grow manifestly the best candi­ ry, theory seemingly from basic principles about and develop into a profes­ date the L.P. could possibly remote from the natural rights and indi­ sional real-world party, in­ field. The nearly 400,000 vidual rights, were simply fluencing and eventually votes-translating into practical' political not spelled out. This was an dominating the mainstream millions of votes across the concerns of the day. excellent resolution of the of American political life? country-which Clark This isavery impor­ political problem, since, Or shall it remain not achieved without any com­ important as the conflict merely a set of discussion promise of principle make tant and necessary may be in the theoretical clubs, but a congeries of him the best possible candi­ phase, but if any sphere, the likelihood that local, social affinity groups, date from any objective movement is to we will achieve even lais­ bound together by ties that viewpoint. if libertarians sez-faire government in the are more personal than want success, they must grow, it must even­ near future is fairly remote. ideologica~ or strateg!c? choose Clark. tually transcend that This settlement of the con­ The space-cadet aberra­ There is a key difference flict has enabled anarchists tion is simply one aspect of in the two races. Clark's 20 stage of develop-

THE LIBERTARIAN REVIEW Roy A. Childs, Jr., Williamson Evers, and Tibor R. Machan candidacy, in addition to supreme vote-getter and the a Competitive Economy iness against the assaults of being professional, is master of complex issues. styles itself as a "business­ anti-business politicians strongly issue-oriented. Clark is clearly the right men's and women's libera­ and special interests." Clark's procedure is to up­ candidate for the Presi­ tion movement." David Boaz, the Execu­ hold the pure libertarian dency in 1980. And that is CCE will be an aggressive and tive Director of CCE, be­ goal of individual liberty why those forces in the principled advocate of the free lieves that this radical new while setting forth cogent party who are for growth, market in the halls of Con­ "business strategy" can be and persuasive transition for real-world success, and gress, in the news media, and sold to business people and steps to advance toward for holding high the banner before the public. CCE will the public. William Simon's that goal. Bill Hunscher, of our glorious principles, demand an. end to the strang­ bestselling Time for Truth, while undoubtedly a consis­ will go all-out for Ed Clark ling regulations and crippling which sternly attacks tent libertarian, is appa­ for the Presidential nomina­ taxes that stifle enterprise in favor-seeking businessmen, the United States. And, unlike rently only minimally con­ tion this September. 0 other business groups, it will reflects a growing realiza­ cerned with the issues of the speak out against the tariffs, tion among businessmen day; his concern is to run as subsidies, entry restrictions, that if they want freedom an entrepreneur who was The Movement regulatory cartels, and other from government control successful in business com­ forms of intervention designed they will have to become petition and who therefore (continued from page 19) to help some businesses at the consistent advocates of can lick the Democrats and expense of other. freedom. The CCE advisory Republicans. This is not the to be taken seriously on a CCE goes to great lengths board includes free-market sort ofcampaign that Liber­ moral plane, then they must to make the crucial distinc­ economists like Simon and tarians need or require. Of quit being defensive about tion between political Milton Friedman, both ar­ course, we want a lot of a "free enterprise" system capitalists and the free dent and nlostly consistent votes; but we want them that scarcely exists, and go market variety, a distinc­ opponents of governmental not for personalities per se, on the offensive, both mor­ tion that is strategically economic power. CCE pub­ but for persons who prop­ ally and politically, by at­ powerful in that it imparts a lishes a brochure outlining ound and convince the pub­ tacking all forms of gov­ new respectability to free its strategy and goals and lic of the libertarian ap­ ernmental regulation and market ideas. As the CCE including lmembership in­ proach toward the impor­ subsidization, whether such brochure states, "This wil­ formation. Write the Coun­ tant issues of our time. On regulation is in their short­ lingness to oppose business cil for a Competitive Econ­ both counts: votes and pub­ term self interest or not. subsidies ... will make omy, 2662 Glengyle Drive, lic policies, Clark has Such an organization CCE much more effective in Vienna, V}~ 22180. Or call shown himself to be the now exists. The Council for its defense ofAmerican bus- (703) 938-0375. ~ 21

MARCH 1979 LIN EB

from 3 to 4 percent (36 to 48 percent annually) and soared a whopping 13 percent in January alone! This translates CHRISTOPHER WEBER into a 156 percent annual beef price rise. The Consumer Price Index, having more than doubled A rather, extraordinary event happened on since 1967, has jumped 14 percent in the past year alone. February 9. Announced on that day was But even this figure does not do full justice to the price the fact that the Wholesale Price Index increases of certain foods. The price of lettuce has risen 170 percent in one year, bacon is up 45 percent, and % (WPI), the wholesale measure of goods oranges are up 40 • And those are items which are ready to be sold to retailers, had surged 1.3 produced in this country. We all know that the cost of anything imported has skyrocketed, as the declining value percent during the first month of this year. ofthe dollar means thatitwill take more ofthem to buy the This implies an annual climb of 17.2 same products. With the currencies of many of America's percent, a rate conceivable, until recently, trading partners registering increases· of from 20 to 40 percent during the past year, and adding on to that their only in Britain, Italy, and certain republics own domestic inflations, the wonder is that import prices of South America. in this country have not risen even faster. Undoubtedly, Needless to say, this bulge-the largest this will happen in the months to come, as older inventory is cleared out by customers and new, more expensive in four years-will soon make itself felt in products come onto the shelves in its place. the Consumer Price Index, which is already Alfred Kahn, the President's inflation advisor, recog­ rising ata double-digit rate. Disturbingly, nizes that the January figures give yet another kick in the gut to Carter's program of "voluntary" price controls. this WPI jump was widespread, encompas­ Paid to defend the program, Kahn is clearly in an unhappy s,ing. almost everyone of the myriad situation. He knows that outright price controls would be finished goods on the index-.not just the disastrous, but instead of attacking government actions as inflation's cause, he has decried the actual price raises by traditionally volatile food and livestock the industries themselves. Hence, a day before the January prices, which frequently jump or dive due figures-with their huge beef increase news-were released, Natonal Cattlemen's Association leaders held an to such non-economic factors as weather. announced meeting with Kahn. The ranchers and feedlot But even for these wide-swinging sectors, operators were justifiably concerned that Kahn or the January's rise was stupendous. Wholesale White House would encourage a consumer boycott of beef. The President's advisor has in fact already singled out beef and veal prices broke out of their certain industries and encouraged citizens to "buy 22 "normal" recent monthly price rises of prudently" in them. THE LIBERTARIAN REVIEW 23 MARCH 1979 Carter's inflation program was a two-pronged one. The Cq;nsidering the source, these arguments are astonish­ first attack, announced on October 24, was an attempt to ing. They begin, in fact, to get at the real cause of the show the American people that he was doing something to problem. For, even though the socialist tabloid In These stem domestic price rises. The second, coming only one Times charges the problem to "deep-seated dilemmas of week later, was designed to shore up the value ofthe dollar the capitalist order" (November 8-14, 1978) and describes overseas. The essential message of the first was a "sugges­ it as an instance ofcapitaI "screwing" labor, it should be tion" that wages increase by no more than 7 percent ayear, clear that most American workers are in fact capitalists as for everyone earning over $4.00 per hour. Carter pro­ well, putting money into trusts, life insurance, or pension claimed that businesses should limit their prices to an funds. (About all the socialist weekly can suggest byway of average of one-half percent below their average price cure is to clamp rigid mandatory price controls on the increases during 1976-77. This would ideally translate "major inflationary sectors," the necessities such as food, into increases of no more than 5 3/ 4 percent, but businesses clothing, and housing. Yet such controls would only cause would be able to pass on their own price rises if they were shortages in these vital areas which affect people the most.) able to show that their before-tax profit margins were no Further, for all the prattle about the merits of socialism, higher than in the best two of the past three years. In no nothing is said about the massive price rises recently case, though, were price increases to go above 9.5 percent. decreed by the government in Hungary, Poland, and other The President's program has been a failure, stridently East-bloc nations. Clearly, instituting a socialist system and justifiably attacked by both labor and business-at would not halt price rises. least as stridently as business ever attacks anything. The More reasoned leftist journals, like The New Republic, leftist intellectual press has even joined the chorus, are hinting that the main cause of inflation is the condemning Carter's program for what it is:a fleecing of government, butthey don't yet have the courage to identify American wage-earners, and furthermore one that does exactly how and why the government inflates, and what not get at the root causes of inflation. the prospects.are for stopping it. That this courage-or It is heartening to see the concern voiced by these insight-is still lacking is evident'from the unanimous quarters about the danger of inflation itself. The lead leftist chorus that to reduce inflation will mean to bring on editorial.in The New Republic ofJanuary 20, 1979 was a recession, and that this must be avoided at all costs. The entitled "Liberals and Inflation," and demanded that the sad truth is that inflation itself makes recession inevitable first get serious about the second. Brushing aside the by artificially shifting wealth from productive to non­ conventional leftist unconcern for inflation [on the productive areas of the economy, by distorting market grounds that it "only" affects capitalists and helps information, leading to malinvestment, and by encourag­ "debtors (the workers) win and creditors (capitalists) lose, ing people to spend more than they actually have. those who live off wages win, those 'who live off capital lose"], The New Republic reports that "the largest aggregations of capital in themodern economy are not the stockpiles of the rich; they are trust funds representing the The causes of inflation vested pension and life insurance rights ofworking people." Ten years ago, this sort of language would never Inflation is not caused by businessmen raising prices. And have appeared in a left-wing journal. Such journals, it neither is it caused by workers asking for higher wages. would seem, have finally discovered that inflation hurts the These are both scapegoats, chosen alternately by the left bulk of Americans. Further,says The New Republic, "by and the right. In each case these groups are simply failing to protect the value of .the monetary unit it responding to the fact that the things they must buy have sponsors, the government is unconstitutionally depriving become more expensive. They must pay more for the same 24 many people of property \Vithout due process oflaw." things. Unless the supply of goods and services has for

THE LIBERTARIAN REVIEW some strange reason decreased overall-something which method is by simply printing it ouright-those Federal almost never has happened in recent years-the cause Reserve Notes in your pocket-which are then supplied to must lie with the decrease in value of money itself. So if individual member banks. These notes meet the banks' and consumers must pay more for the same things, it must be the public's need for cash. because the money they use is not as valuable, because they A far more complex and important method is the Fed's must always use more ofit to buy the same quart of milk. creation-out of thin air-of "checkbook money" or So the spotlight must be focused upon money, or more demand deposits redeemable in cash at any time. These accurately, its supply. The more money that enters the credits are used by the Fed to buy U.s. Treasury debt economy, the less each unit ofit will buy. The more money instruments such as Treasury bills or U.S. government there is, the less valuable will be its individual units. bonds from the public, and sometimes directly from the Now, who controls our money supply? Pull out any Treasury. This outright creation of demand deposits is denomination dollar bill and look at it. At the top and in direct inflation, but not nearly so much inflation as what is the center appear the words "Federal Reserve Note." Each produced by pyramiding new creations of money upon ofour dollars first saw the light ofday as they rolled offthe these demand deposits. This indirect and most dangerous printing presses of the Federal Reserve. It is only by process is known as "fractional-reserve banking." There understanding the Federal Reserve System that we can are quite a few people, even many concerned with understand inflation. understanding inflation, who don't understand this There are still people who believe that the Federal process by which $200-million can be turned into $1.3 Reserve is a private organization. Nothing could be further billion very quickly, without even using printing presses. from the truth. All seven members of the Board of Governors are appointed by the President of the United States and subject to confirmation by the Senate. What Dishonest banking comes to America private organization has its board chosen in this way? Confusion enters the picture, however, when it's disco­ The first step in comprehending the fractional-reserve vered that the Fed, like private organizations, issues shares system lies in examining the reserves themselves. Banking to its 6,000 member banks. (There are about 14,000 began, in the sixteenth century, as simply a warehouse for commercial banks in the U.S., but the 6,000 Fed member gold. Originally, paper receipts were issued on a one-to­ banks account for 75 percent of all domestic bank one basis by the private merchants who operated the deposits.) Each of these "shareholders" receives a warehouses. This could be called a 100 percent reserve statutory 6 percent annual return on this investment. In system with paper receipts kept constant to the gold they other words, they get 6 percent of their original share represented. But banks need to make a profit too, and they investment, which was 6 percent of their capital. do this by lending money. Under this 100 percent gold Most Federal Reserve System earnings, fully 82 percent, system, however, money lent out was money deposited are paid not to its "shareholders," but to the U.S. Treasury. expressly for a long fixed term. In other words, everyone Since its inception in 1913, only 2 percent of Federal either had in his possession direct claims for gold Reserve earnings have been paid out as dividends to redeemable at any time, or he realized his gold was being member banks, the remainder going for operating lent out for, say, a two-year period, and that he was being expenses. The amount annually paid into the Treasury is paid interest for it during that time. Under this system, no not a profit from legitimate business activity. It is, rather, one's money was being used twice by the bankers. But the lion's share of two yields, interest received on loans to some bankers eventually discovered a way to defraud their member banks-loans often created out of thin air depositors. because of legal privileges-and the yields on securities As they saw that only a small percentage of gold purchased through the inflationary "open market opera­ depositors would ever present their receipts at once, these tions" explained below. bankers loaned out that gold which depositors had been Finally, should a Federal Reserve member bank be assured was earmarked for them. Thus the same money liquidated, its assets (after obligations had been met) was being used twice. This sleight-of-hand had its limits: would become the property of the United States govern­ When a bank went too far in loaning other people's gold to ment. What sort of private agency is this? the public, and greed often made them push the system to The Federal Reserve is wholly a creature of the Federal its limits, depositors became suspicious and presented their government: It is the government's central bank and hence claims en masse to the bank. By these "bank runs" the government's engine of inflation. There are two ways dishonest bankers either went bankrupt or vvere forced that the Fed can create money. The first, and most direct, back into a 100 percent reserve position (or, as more often

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25 M\RCH1979 happened, to at least a more conservative and prudent money-creating process, by buying assets on the "open one). market," i.e. by buying paper assets from banks or from In our century, dishonest banking in America was some members of the public. In practice, these assets are institutionalized and centralized with the creation of the nearly always U.S. government securities-Treasury bills, Federal Reserve System in 1913. The dishonest individual notes, and bonds-and certain debt obligations of other bankers, as bad as they were, at least didn't have endless Federal agencies. They don't have to be government paper, resources: they went bust if they continued to cheat. No but buying them is simply a greater convenience for the Fed one bailed them out. But a government central bank tied all and the government in general. the hitherto disparate individual inflations together into To see how this process works, let's first take a small one huge one. Under the new Fed System large commercial example. Assume that the Fed buys a U.S. government banks were, and are, required to keep a fraction· (a reserve) bond held by an average citizen, and pays $1,000. The Fed oftheir checking account deposits on deposit atthe nearest gets the bond and adds it to its asset column on its books. Federal Reserve Bank (there are twelve). Why and how this The Fed "gets" the $1,000 to pay the citizen by creating it fraction changes, and the effect that those changes have, is in the form ofa check on itself. The citizen can only use this essential to understanding inflation. check by depositing it in a commercial bank or cashing it. There are three ways the fraction can change, but in This, of course, adds $1,000 to his money supply. But practice only one is important. First, the Federal Reserve more important is what his bank does with it when it is Board can directly change the reserve requirement-the deposited. percent of deposits which must be kept on hand. Current The bank is required to keep sixteen and a half percent, requirements range from seven percent of net checking or one-sixth of its checking deposits, on reserve at the deposits at very small banks to sixteen and a half percent nearest Fed. But, instead of sending one-sixth,or $165, on on amounts over $400-million. When the reserve require­ to the Fed and loaning out the rest, it sends the entire ment is lowered, more money is available for lending by $1,000 and then creates new checkbook money by allowing commercial banks to pyramid a larger amount of opening new checking accounts for its borrowers. (In other money upon a smaller base. But this direct method is used words, the bank, which makes its money from borrowers, relatively rarely: the changes are just too abrupt to be will accept new loan applications-and then grant the convenient. loans by issuing to borrowers deposit slips for money it More frequently, the Fed manipulates the money supply doesn't actually have. Because of misplaced confidence in by means of its "discount rate." This is the interest rate the banking system, usually not enough people will charged to banks borrowing from the Fed to build up their simultaneously ask for their currency to cause problems.) reserves to required levels. A decrease in this rate makes it Using the entire $1,000 as the sixteen and a half percent cheaper for banks to borrow reserves to make such reserve, it can and does pyramid its money stock at a "investments" as buying U.S. Treasury debt issues multiple of 6 to 1. It creates 5,000 new dollars, so that flotations, or enables their clients to do so. As a conse­ $6,000 of new money is soon added to the economy. quence, the general interest rate tends to fall, making Now let's carry this process further, to show what money easier to borrow and the Treasury's interest costs usually happens with larger sums. Obviously, the Fed less. doesn't rely on the cooperation of numerous individual However, the principal way thatthe Federal Reserve has citizens, each with relatively small sums, to direct carried out the greatest inflation in history is through its monetary growth. "open-market operations." About once a monw, the Assume that officials at the open-market desk of the Federal Open-Market Committee, consisting of the seven New York Fed buy $200-million in Treasury bills. They members of the Board ofGovernors and representatives of would do this through a private securities dealer who five Federal Reserve banks, meets in Washington to decide specializes in just this sort of activity. The New York Fed whether a more or less inflationary policy will be pursued pays, of course, with a check drawn on itself against a during the day-to-day operations of that month. If the deposit entry created out of thin air. The securities dealer decision is "more," as it has most often been these past deposits the check in, say, a Denver bank, adding decades, the following operation ensues: $200-million to its deposits (and to the nation's money Every day, a telephone conference is held between the supply). The Denver bank deposits as a reserve, fifteen Fed's Washington headquarters and the open-market desk percent-$30 million-to the nearest Reserve bank atthe New York Federal Reserve Bank. Following this call, (which happens to be located in Denver). The bank lends a wire is sent to all Reserve Bank presidents informing out the remaining 85 percent-$170-million-to, say, a them of the impending action. The Fed now begin the California company. This company, in turn, deposits the

POLITI 'IAN~ e>Ll'1 THEN THEY iHAT MA~E~ Nor THAT! "OTE~ WITH THEI~ PRlNTMORS EAtH EX'~"'N~ t':%IVEAWA'f PAPER MONEY DOL.L.ARWORTH SLIT MY PROaRAM~. TOPA'i FOR L.E.~ ,. ~ENCE THROAT lHEM. INFL~110N! FIRST!!!

26

THE LIBERTARIAN REVIEW money into its accounts, and adds an additional $170­ That body of thought now lies in shambles, having been million to the money supply. The company's bank sends beaten to death by the series of inflationary recessions that fifteen percent ($25.5-million) to its Reserve bank in San have plagued the world economy over the past decade. For Francisco, and lends out the remaining $144.5-million. the simple truth is that even a little inflation must The receipts ofthiswill add $144.5-million to their money invariably lead to recession. (Space does not permit a supplies (and the nation's) by depositing it into their rendering of the entire Austrian theory of the business banks. Fifteen percent of this ($21.7-million) is held as cycle, a theory which has correctly predicted the economic reserve; the rest ($122.8-million) is loaned out; the process woes of the past decade. One can find it elucidated in is repeated until all of the original $200-million has been Murray Rothbard's booklet Economic Depression: funneled into reserves. By that time, over $1.3 billion has Causes and Cure, or in the first few chapters of his been added to the money supply. And this, from an original America's Great Depression.) Suffice it to say that the $200-million that was itself created out of thin air! [For illusion called "fine-tuning" seemed to work when the this example, fifteen percent is the typical requirement for inflation rate never exceeded three percent. But as inflation all banks. The reason the Denver bank sends only fifteen began to soar in the early '70s, monetary manipulators percent of the original $200 million, is that the multiple, discovered that with their accelerator and brake tactics six times the $200 million figure ($1.33 billion) would be with the money supply, the car was careening out of too big to loan out all in one shot.] control. For example, after an unprecedented 10.4 percent The entire process can also work in reverse. If the Fed annual growth in the money supply from February 1970 decides to contract the money supply, then government through July 1973, the Fed then tightened credit to their securities are sold to a dealer. The dealer's payments to the usual extent-and were startled by the magnitude of the Fed reduce his checking account deposit balance. His recession that followed. For, to continue the automobile bank's deposit reserves are therefore also reduced by the simile, an economy running at a 10 percent inflation rate is same amount. His bank then must either attract another like a car accelerating on a slippery road. When brakes are equal deposit or borrow equal reserves from the Fed, or, it slammed on at that speed, the car will skid. Further, due to must reduce its loans outstanding by six times that the large inflation during 1970-73 consumer prices began amount. to rise. It takes time for new monetary expansions to work This causes a multiple contraction of overall bank their way throughout the economy, bidding up the prices lending ability and the money supply. But in recent years of all one buys. There is no way anyone can calculate there has rarely been a concerted deflation of the money exactly this "tinle-lag" between money creations and price supply. The farthest the authorities have gone is to slow the rises-this is indeed one of the great failings of any rate of monetary expansion. government attempt to control the money supply. There are just too many factors which cannot be calculated. Prices continued to rise long after monetary expansion had Fine-tuning: an unstable system stopped, and even after contraction had begun. In fact, consumer price rises did not peak until a full year and a half "To be honest, we just don't know that much," exclaimed after cessation of monetary inflation, in December 1974, Fed governor J. Charles Partee in Newsweek magazine of when prices were more than 12 percent higher than they February 12, 1979. He was referring to his ignorance of had been in December 1973. Still worse, the ill effects of how so little an expansion of the money supply during the the slamming ofthe monetary brakes had begun to appear: last few months could have attended a period of robust unemployment figures rose and industrial activity took a economic growth. But he could easily have been referring nosedive. So the formerly sacred idea of government to the intellectual and practical bankruptcy of the entire "fine-tuning" had only served to give the American Keynesian "fine tuning" system. As recently as a decade economy the worst of both worlds, inflation (rising prices) ago, every Establishment economist firmly believed that and unemployment. government could govern and control both the price levels Fed Governor Partee had good reason for his expression and unemployment as it wished, just by applying the of humility. There are so many factors about the money correct fiscal or monetary stimulus or depressant. Briefly, supply which cannot be calculated. For instance, the they held that if economic growth was sluggish, all that expansion of reserves described above depends in large was needed was to pump in new creations of money. To measure upon the demand for borrowed funds. If that cool down the economy after the resultant inflation, they demand is unexpectedly slack, money supply growth can lowered the rate of monetary inflation. In no case did they be stymied. This is what happened in late 1975. Loan actually deflate. demands fell rapidly because, as profits rose when the

~ENATORt WE LE:A"~ FOR ~MEBODY WA6I-\lN~TON AT ~HOULOCL1T MlDNlAHTI TH~CORDTO YOUR PRINTINa PRE?~!

27

MARCH 1979 economy was starting to pull out of the recession, many have been models ofrestraint, but because these foreigners companies unexpectedly built up stores of funds. Thus, have been inflating their currencies at even higher rates outside credit needs were reduced. And, since it is than Washington. To understand this we must go back a principally checking accounts through which the manipu­ few years. Basic U.S. money supply growth was climbing at lations ofthe open market operations work, money supply an annual rate ofroughly 10 percent in late 1976. Thatwas expansion projections were thus thrown off when at the time considered quite high and certainly more than corporations and individuals unexpectedly put idle cash our trading partners were inflating. Hence, the dollar's into fixed time-deposits rather than checking accounts. value overseas began taking a nosedive. Money growth for . The Fed even has trouble keeping tabs on what is all of1978, however (including the last quarter slow­ happening with the money supply it is trying to control. down) was also about 10 percent. There had been no great The mountains of statistics shot from the various indi­ change. But compare this with the other nations. During vidual Federal Reserve banks are often subject to wide late 1976 German monetary growth was about 6 percent error. And, while member bank deposits are reported (all figures are on an annual basis). Thatlatest reading is 14 weekly, even these can be mistaken. In one case, Fed percent, much more than double. Japan's monetary experts tell of a computer error at a single bank that inflation rate was 3.6 percent in the final quarter of 1976. 'changed the money supply statistics for that week by That figure had ballooned to 11.6 percent in mid-1978, $500-million. and the latest three-month figure (annualized) was a huge 16.5 percent, almost quintupling during the last two years. Britain's rate was 11 percent then; it has jumped to 21 Rothbard's command to the Fed percent. Two years ago, France turned in a reading of 6 percent; the latest three-month increase is 16 percent. All Given these last few pages reciting dishonesty and of these figures pale, though, compared with Switzerland. incompetence over such a vital area as money and The Swiss money supply managed to hold to a tiny 0.4 economic health, it is fitting to quote the recommendations percent monetary growth rate during 1977. But last year of an economist who has been a long-time critic of the the money supply exploded. At times, during 1978, it grew Federal Reserve System. Murray Rothbard wrote in the at an unbelievable annual rate of 330/0; the money supply % July 1974 issue of the Libertarian Forum that during all the year rose about 20 • The first necessary step to stopping the inflation is ... simplicity Ironically these economies and their currencies are itself, once we penetrate to the arcane processes of how the doing greatviolence to themselves in order to stem the money supply expands: a command to the Fed to stop, decline ofthe dollar. For these governments realize thatthe forevermore, any purchase of assets; better yet would be to gain dollar is still the most important currency there is (as one credibility by forcing the Fed to sell some ofits assets and thereby wag put it, "Nothing can replace the U.S. Dollar ... and it contract the swollen supply of checkbook money. Of course, alm:ast has''';) .. A'high Germart mark, for example; would longer-run measures would also be vital: including the separation price German exports out of the huge American market. of money and banking from the State by a return to the gold More importantly, the dollar is at the center of the standard at a realistic gold "price," and the abolition of the Federal Reserve System. But the first step would be a permanent international web of statist monetary exploitation by command to the Fed to stop! its inflationary process. And the Fed which governments the world over systematically rob their will, of course, never do this unless it is compelled by mass public own citizens by cheaper money each year. All other pressure from below. And to do that we need massive public currencies are still defined in terms of the U.S. dollar. education in the cause of the inflationary disaster. Furthermore, What this recent foreign inflation means, in short, is not similar public pressure on the central banks of the world is also that the dollar is getting healthier, but rather that the rest vitally necessary. of the world, apparently even Switzerland, seems bent on From April 1975 to September 1978, the Fed expanded following the U.S. down the road to ever-greater rates of the money supply to an even greater extent than it had inflation. during 1970-73. Depending on which measure is used, Certainly the future of the world's paper currencies estimates of money growth during this period range from looks bleak. But this very fact can be taken as reason for a 10 to 15 percent annually. Thus, it was no accident thatthe certain optimism. If private alternatives to State money general price level at the end of last year was 9 percent emerge and spread during the next few years, the world higher than at the end of 1977. Further, this rise still has will be offered an alternative to the discredited set-up of some way to go. The roughly 17 percent annual wholesale unbacked paper money in a banking system which can be price rise reported for January portends the sad fact that manipulated by politicians at will. In the meantime, we the price raising aftereffects of former money growth will must trumpet forth Dr. Rothbard's commands to the Fed be with us throughout early 1979. to stop inflating. Moreover, we must demand an end to the Last year, however, the Fed decided to slam on the legal tender laws which make it a crime to transact monetary brakes and began doing so in October 1978. By business in any other medium besides Federal Reserve all measures, growth since then has either been miniscule Notes. Only in this waywill the way be cleared for market or the money supply has even declined. Even though all alternatives to State money, be they gold, or F. A. Hayek's figures are only through early February, the latest proposed system of commodity-money, or something else available, several months of sharply curtailed money again. But whatever eventually happens, we can be assured growth is bound to produce a· recession this year and that the more prices rise, the more fertile the ground will next-an even sharper one than the last. High unemploy­ become for rethinking the once sacrosanct role of ment and a stagnant economy will have double-digit government in the monetary and banking system. .D price-inflation rates along with it. The fact that the dollar will probably rise this year Christopher Weber writes on economic and financial matters for against currencies like the Swiss franc, German mark and a number of magazines and newsletters. He is a regular 28 Japanese yen is not because American money managers contributor to LR. THE LmERTARIAN REVIEW WHYGOVERNMENT WILL NEVER STOP

as it was in 1800. By 1967 the index had roughly doubled. BRUCE BARTLETT Since 1967 the index has almost doubled again. Atthis rate of increase prices will double again by the early 1980s. As we can see from this brief review of u.s. economic For those ofus born since World War II itis history, throughout most of our nation's existence there was a regular pattern of price behavior: Prices tended to sometimes difficult to realize that inflation remain stable except during wartime when they increased has not been a way of life in the United rapidly. After each war prices tended to decline gradually States throughout its history. Indeed, the to their prewar level. Throughout the vast bulk of American history-roughly 150 years-prices tended to very idea that prices may have declined for remain somewhere between 40 and SOon the price index. long periods oftime is totally foreign to us. The reason for this pattern is relatively simple: Throughout most ofour history the quantity ofmoney was Yet the facts speak for themselves: tied to a relatively fixed standard-gold. Since the quantity In the year 1800 the Consumer Price ofgold can only vary with the rate at which it is discovered Index stood at 51 (1967 = 100). It went up a and mined, the rate of increase in the quantity of money was held to this rate. But during wartime, when govern­ bit during the War of1812, reaching 63 in ment's need for revenue greatly exceeded its ability to 1814. Thereafter there was a steady and borrow and tax, the checks on the money supply were cast continuous decline in the cost ofliving until aside. When peace was reestablished, a high level of economic growth restored, and the gold standard put back the Civil War. Yet even at the height of the in place, then the supply of goods and services tended to war in 1864 the price index stood at "catch-up" with the larger quantity of money, and price 47-still a good bit lower than it had been reduction ensued. The real question, therefore, is what has happened since in 1814. Once again there followed a long, World War II that has broken the pattern which held steady decline in prices until the eve of throughout all ofprevious American history. The answer is two-fold: On the one hand the previous checks on World War I. government's ability to increase thequantity ofmoney­ The price index doubled between 1915 primarily the gold standard-are gone. On the other hand and 1920, from 30.4 to 60. But as in government now has a powerful vested interest in maintaining a high level of inflation which never existed previous cases, once the war was over previously. Under these circumstances a return to price prices began to decline again and did so stability is not impossible but will never occur unless steadily until the mid-1930s. Since 1939, certain fundamental changes are made in those institutions prices have increased every single year, with which cause and encourage inflation in government. the only variation being in the rate of Bretton Woods and its aftermath increase. The Consumer Price Index now stands atapproximately 200 and is rising at Following World War II the world's financial leaders met to devise a new international monetary system to replace the. rate of about ten percent,annually. the gold standard, which was universally abhorred The truly alarming thing is that the rate because it tied the politicians' hands and prevented them of increase in prices has gone up so from being able to print money at will and promise their people something for nothing. But support for the gold significantly in recent years. The price standard remained strong and they were forced to devise a index in 1943 was approximately the same system which seemed to have gold at its base. 29 MARCH 1979 The resulting Bretton Woods system was nothing short worthless currency. Moreover, should they attempt to stop ofbrilliant. It was decided to make the dollar the standard the. i~flation they ~ill immediately come under heavy ofvalue for all other currencies and to tie the dollar to gold. polItIcal pressure to Inflate again, as the United States has In theory the gold would act as a check on the dollar and done persistently to Germany and Japan. the dollar would be a check on all other currencies.· The Thus we have an internationalmerry-go-round which problem was that the dollar link to gold was illusory since not only encourages inflation but forces countries to go only foreign central banks could actually demand gold for along. Until it is replaced with some kind offixed standard, dollars. But with the dollar being the medium of interna­ such as gold, .to which all currencies can relate the tional exchange there was always a heavy demand for international incentive for the United States to inflat~ will dollars, meaning that,in effect, the u.s. was free to print an continue. unlimited quantity of dollars and have most of them held outside the United States, where they were not a threat to i domestic prices. Inflation and the national debt The effect on the international monetary system was roughly the same as if, under the classic, pre-1913 gold Perhaps the classic reason of all time for government to standard, the United States had somehow discovered how inflate its currency is to payoff its debts. As AdamSmith to secretly manufacture gold inunlimited quantities, while wrote in. The Wealth ofNations: "When national debts no other country had such ability. The United States was have once been accumulated to a certain degree, there is able to spend dollars manufactured out ofthin air without scarce, I believe, a single instance oftheir having been fairly ~n.d ever having to suffer any undesirable consequences. completely paid. The liberation of the publicrevenue, . Under a gold standardthis could nothave happened, for If It has ever been brought about at all, has always been If a government became profligate and failed to control the brought about by a bankruptcy; sometimes by an avowed issuance ofits currency the value ofits currency would fall. one, but always by a real one, though frequently by a pretended payment." The re~ult w~uld be an increase in the price of gold as den~mInated In that currency and a demaad by foreigners The "pretended payment" of which Smith spoke is holdIng that currency for gold. At some point that nation's inflation. It works like this: Say you have bought a supply of gold and foreign currency would run out and it government bondwith the principal due sometime inthe would discover that no other country would accept its future. If there is unanticipated inflation then inflation simply acts as a tax on the principal.In otherwords, at a six currency in payment for goods. Itwould therefore be faced with the prospect ofputting its financial house in order or percent inflation rate six percent ofthe value of that bond having ~o forei?n ~rade. And of course domestic prices vanishes each year. In this way the government systemati­ would rIse, makIng Its goods progressively less desirable to cally pays off its debts and that is why the federal foreign buyers. This is the system which kept U.S. and government's debt as a percentage of Gross National Product has dropped from 90 percent in 1950 to 57 world prices stable for more than a century. . . , By the later 1960s, however,·despite the Bretton Woods percent In 1960 to a current level of about 37 percent. system, the flood of dollars throughout the world and the There are two problems with this practice. The first is decli~e ofthe United States as an exporter, caused even the that if inflation becomes anticipated then the government nomInallink between gold and the dollar to be broken. We cannot sell new bonds except by paying an interest rate entered an era of floating exchange rates, in which the equal to the "real" rate ofinterest plus the anticipated rate va~ue ofany currency was set onan open market. In theory of inflation. But this isn't really that much of a problem thIS would help reestablish control over the issuance of because the government can always sell its bonds to the dollars, or else t~e value of the dollar would fall against Federal Reserve. In 1950 the FederalReserve owned only stronger currenCIes. five percent of the outstanding public debt. This rose to Unfortunately what has happened under floating is that nine percent in 1960 and is now up to about 15 percent. all other nations have been given the same freedom to It should be kept in mind that to say the Federal Reserve inflate that the United States has had since Bretton Woods. buys the government's bonds is somewhat of a misnomer. The Fe~ does not pay f?r such bonds out ofreal savings of Instead of strong currencies acting as a check on weak k~nd currencies, all nations have inflated simultaneously, which some but by creatIng money out of thin air, which of means that exchange rates do not reflect the existence of course IS the fundamental cause of inflation. This process the massive worldwide inflation that is taking place. And was once described by· Secretary of the Treasury Robert ofcourse, there are very few politicians who really want to Anderson in the following terms: stop the system because it allows them to buy votes with Now suppose I wanted to write checks for $100 million

30 THE LIBERTARIAN REVIEW starting tomorrow morning, but the Treasury was out of money. IfI called up a bank and said, "Will you loan me $100 million at 3112 percent for six months if I send you over a note to that effect?" the banker would probably say, "Yes I will." Where would he get the $100 million with which to credit the account of the U.S. Treasury? Would he take it from the account of someone else? No, certainly not. He would merely create that much money, subject to reserve requirements, by crediting our account in that sum and accepting the government's note as an asset. When I had finished writing checks for $100 million the operation would have added that sum to the money supply. Now certainly that approaches the same degree ofmonetiza­ tion (creating money) as if I had called down to the Bureau of Engraving and Printing and said, "Please print me up $100­ million worth of greenbacks which I can payout tomorrow." Thus that fifteen percent ofthe public debt owned by the Federal Reserve, which presently amounts to about $100-billion, was created through this process and resulted in a 5 to 6-fold increase in the quantity of n ..lney. As this "high-powered" money went into the system it created a base upon which private banks could increase the quantity of money still further via fractional reserves. Thus if there is a 20 percent reserve requirement for private banks, a $100 increase in the quantity of money by the Federal Reserve would lead to approximately a $500 increase by the private banking system. In spite of the government's ability to write offits debt with worthless money, thereby causing inflation, the government still has a major problem with its total debt. This is due to the fact that the government's broadly defined debt, which would be its total liability including all future commitments presently made, is increasing at an astronomical rate, largely because of commitments made to pay social security and annuity benefits. The Federal Government does not like to publicize its total liabilities, but is required to do so by law each year. An examination of its most recent statement (Figure A) shows the Federal Government's total liabilities stand today at more than $15-trillion (a trillion is $1,000­ billion). As one can see, the public debt is a rather small proportion of the total debt, The $12-trillion listed for annuities is by far the largest portion of total liabilities, which represents the total commitment to pay if everyone presently entitled to benefits lives a normal life span and no additional taxes are paid. Needless to say, the prospect of the Federal Goverment paying off such an enormous debt, which is growing each year, is highly unlikely. As one who would not be eligible for social security benefits until after the year 2000, I can only say that I, for one, do not believe I will ever see a dime ofthose benefits and no one else I know bankruptcy occurs-perhaps through a hyperinflation from my generation believes he will either. How this which would wipe out the real value of this debt-no one fundamental crisis will be resolved when the inevitable can say. But it will be resolved soon.

"~'/~ ~OMEONE tUT THE CORD QOOD TH'N~ WE @T OOZeN~ TO lll'~ MONE'f PRE5~! OF OTHER5 JIJ~T LIKE IT q<)IN' ALL THE TIME!

fl <;;J y...... LJ~~,_. __

31 MARCH 1979 The government does not publicize this secret tax Inflation and the tax bite increase, but it certainly knows about it and depends upon it. A simple rule of thumb used by the Congressional The last major reason why the government likes Budget Office,for example, says that individual income tax inflation is that it leads to an automatic increase in taxes on revenues to the government will increase 1.5 percent for both individuals and businesses, without the necessity of every one percent rise in the Consumer Price Index (CPI). passing any new laws. This is a phenomenon related The table in FigureE, compiled by the Joint Committee on primarily to the graduated income tax. As an individual's Taxation of the United States Congress, shows the nominal (money) income goes up he finds himself in aggregate dollar increase in income taxes by adjusted gross progressively higher tax brackets. Thus if one's income income class for three recent years. As one can see, taxes rises simultaneously with inflation one is progressively will increase $7.5 billion this year alone, assuming 61f2 worse off because of the increase in taxes. The table in percent inflation. figure B shows what has happened to a family offour with This massive rip-off of the taxpayers is not only the national median income, in terms of federal taxes and indefensible ethically but is doing enormous damage to the real disposable income, despite the passage of four federal economy. It raises marginal tax rates on all workers, tax reductions by Congress: driving a vast wedge between their work effort and their

As it turns out, the median family was lucky. Its real income went up faster than inflation so that it ended up with an increasein real disposable income of five percent over the decade. If that same family were to be projected into the future and we assume that there were to be six percent inflation and that the family income would rise by the same amount with no changes in present tax law, it would, unfortu­ nately, suffer a real loss of income (see Figures C and D).

~ I KNE.W THAT ALL ,,(OUWON,~NATOR ..SULL­ ALON{:( AND 1 FEEL BLEER WE COULON, ~OP 4UlI...T't FOR NOT THE t(OVERN~ENT MONE:1 TEL-L-lN4· YOU. = PRE~E? ~...,~~~

32

THE LIBERTARIAN REVIEW after tax reward; it reduces their real standard ofliving and when there is five percent inflation, the tax you pay on that prevents them from improving themselves; and it takes interest income will result in a negative return on your place insidiously without their knowledge. Is it any investment. According to a study by the National Bureau wonder, therefore, that taxpayers are increasingly fighting of Economic Research, in 1973 alone individuals paid back with whatever weapons they are given? Such things capital gains tax on more than $4.5-billion in nominal as the Jarvis-Gann initiative in California, which has gains. But when corrected for inflation, this nominal gain drastically cut property taxes in that state, will hecome became a $l-billion capital loss. Thus the $500-million in more frequent and more successful:. tax paid constituted an additional capital loss. Business too is suffering. Because inflation increased One could go on to cite additional reasons why the both their nominal profits and their real costs, businesses government likes inflation, such as the automatic increase ended up paying something like seven billion more federal in spending it allows for government programs, but the tax dollars in 1976 than they would have in the absence of foregoing are the major ones. the inflation distortion. Thus, although nominal profits are Controlling these institutions which give impetus to the rising to record levels, real profits after tax, adjusted for government to inflate will not be easy. To eliminate the inflation, are considerably lower. This has led Securities international pressure to inflate there must be and Exchange Commission chairman Harold Williams to reestablishment of a gold standard or some kind of system

which will put outside pressure on monetary authorities to hold down the rate at which it increases the quantity of money. The debt problem can only be solved through fundamental reform of the government's annuity programs; the Congress's recent attempt to deal with this by raising social security taxes by' $227-billion over the next decade is only a drop in the bucket. The tax problem clearly requires indexing of both tax rates and capital gains, so that taxes will only be paid on the real increase in income or profit. Such proposals have been made in Congress and should be acted upon. In the final analysis, government is the only cause of inflation, because only government controls the printing presses. The temptation to use the printing press when the people make demands on government which it cannot recently remark in a speech: "In my judgment, American otherwise fulfill is powerful. But it is worse when this corporations, as a whole, are-rather than generating pressure is multiplied by a tax system which raises revenue shockingly high profits-earning at dangerously low faster than prices go up, an international monetary system levels, ifthey are to discharge the responsibilities we expect which creates inflation on a world-wide scale, and a them to shoulder." burden of debt which exceeds any human effort at Many individuals and businesses that derive income repayment without bankruptcy. D from bonds and capital gains are actually getting negative rates of return. It happens like this: Say you buy an asset Bruce Bartlett is a veteran congressional aide and widely published writer on political and economic issues, whose articles for $100, sell it a year later for $105 and inflation has gone have appeared in Washington Monthly, National Review, and up 5 percent in the meantime. Your real return is zero, The New York Times, among other periodicals. His book, since inflation cancels out your gain. But since you will pay Cover-up: The Politics of Pearl Harbor, 1941-1946, was tax on the $5 profit anyway your return becomes negative. published in December by,Arlington House. He is a contributing Similarly, if you are getting five percent interest on a bond editor of LR. 33 MARCH 1979 There are half a million men and women in prisons around the world for the simple crime of 'INspoweduI"!8BPOII disagreeing with their governments. IieIp&ee From South Africa to the Soviet Union, can pdsoaen from Brazil to Korea, authoritarian regimes persist in the barbarian practice of jailing, often torturing, of aceaDov.- their citizens not for anything they've done, but I• for what they believe. ..-Id. These prisoners of conscience have only one hope -that someone outside will care about what is happening to them. Amnesty International has helped free over 14,000 political prisoners by marshaling world public opinion through international letter-writing campaigns. Your pen can become a {lowerful weapon against repression, injustice and Inhumanity. Join with us today in this important effort. Because if we do not help today's victims, who will help us if we become tomorrow's?

Amnesty International 3618 Sacramento San Francisco, 94118 (415) 563-3733 2112 Broadway New Yo'rk, N. Y. 10023 (212) 787-8906 o I would like to join A mnesty International in helping to free prisoners ofconscience. Enclosed are my dues offifteen dollars. o Please send me more information. o Enclosed is my contribution of $ _ to help you in your efforts.

name Prepared by Public Media Center, San FranCIsco. address city state zip (Dues and donations are tax-deductible) a and American Policy in the Far East

on ChinC\ resulted in American entry into World War II, and the ultimate victory ofthe Chinese Communists which LEONARD P. LIGGIO was the most significant consequence of that war. Although defeated by the American armed forces in that war, in many ways japan emerged from the conflict with In the midst oftoday's burgeoning conflicts the greatest potential of any Asian nation, both militarily between the various powers of Asia, some and economically. In an essay written in 1950 for the Foreign Policy Association, Harvard professor and former policy-makers in the United States are u.s. Ambassador to japan Edwin Reischauer noted that urging America to take a larger role "Although far weaker industrially than Western Europe, the United States or the Soviet Union, japan is still the only through its foreign policy. Such suggestions other centre capable of producing significant military usually. stem from a profound historical power today, and it is militarily all the more important ignorance of the nature of Asian conflicts, because of its isolation from the other great industrial nations. japan, therefore, is an area of major military and specifically from a steady blindness significance, an area which, if it were to shift sides, could toward the role that Japan can and must appreciably alter the balance of power in the world." play in that area of the world. America's However, because of American imposition of a non­ military constitution on japan after World War II, japan's Cold War economy today is the direct rriilitary potential has not b.een developed. As a result, in its historical result of the United States' foreign policy, japan does not side militarily with one power against another, but instead pursues its self-interest interference in the Great Power rivalries in by trading with all countries while tending to cooperate the Far East. It was this continual interfer­ with the United States and Western Europe diplomatically. ence that led theJapanese to respond by the Reischauer has predicted that this situation will in the near future take on a different coloration. At the second attack on the U.S. Pacific fleet at Pearl japanese-American assembly in September, 1969, he Harbor in 1941, launching American predicted that a consequence of japan's emergence as a involvement in the most devastating war of leading world power would be that the "United States will co-operate in japan's foreign policy instead of japan this century. In the contest in the Far East co-operating in American foreign policy." between China, the Soviet Union and The Nixon administration came into office intent on Japan, the United States had taken the side having japan shoulder the military responsibilities of the "free world" in East Asia. But Nixon's economic policies of China, then ruled and dominated by the toward the japanese were so negative that there was not a Nationalist regime of Chaing Kai-shek. In basis on which to move in that direction. In january, 1969, during a japanese-American confer­ the face of that de facto alliance, the ence atthe Center for the Study ofDemocratic Institutions, Japanese and the Soviet Union signed a Suji Kurauchi, Director of japan's House Committee on nonaggression pact in April 1941, which Foreign Affairs, noted widespread fears "that the United States is grooming japan for a military role in Asia similar freed the Russians to meet the potential to the one it expects West Germany to play in Europe... German invasion of June and freed the Many japanese fear that as the United States moves to Japanese to undertake serious negotiations make japan its successor as the policeman of the Pacific, re-armament will naturally follow." Then, in September to seek a compromise settlement of the 1969, japan's Defence Agency issued a white paper China problem. The American hard-line indicating a sharp increase in military spending due to 35 MARCH 1979 expectation of strong tensions between communist and development. But Japan will find at least an equally good non-communist governments in Asia. This was prepara­ partner in Communist China. At present, japan is the tory to the November 1969 visit with Nixon by Japan's major customer for the natural resources of Alaskan and prime minister, Eisaku Sato. Sato sought to create popular British Columbian minerals, timber, pulp, coal and crude support for Japan's complete conventional re-armament. oil. Similarly, Japan ha~ heavily invested in the natural Yet, as policy-makers well knew, increases oftaxation to resources of other major Pacific sources-Australia, New pay for rearmament would drive up the cost ofproduction Zealand and Indqnesia. japanis hopeful that China will be of japanese goods, and the resulting increases in prices of an important future source of oil since most ofjapan's oil exports would have greatly reduced the margin ofjapan's comes from the troubled and unstable Persian Gulfand the advantages in international trade. As a result, japan's U.s. has been reluctant to sell Ala~kan oil to japan. economic decision-makers have resisted the politicians' As the Far Eastern Economic Review (November 3, attempts to move to rearmament. 1978) noted, the japanese exporters of plants and Article 9 of the japanese Constitution, imposed on technology are more enthusiastic about buying China's oil defeated japan after World War II, provides that "the in exchange than are the oil refineries and power com­ japanese people forever renounce war as a sovereign right panies,who are facing environmental controls on nitrogen of the nation and the threat or use of force as a means of oxides. China's oil is high in nitrogen compounds and wax settling international disputes. In order to accomplish the content and has a heavy oil content although it is low in aim of the preceding paragraph, land, sea, and air forces, sulphur. China's oil would require high investment in new as well as other war potential, will never be maintained. The right of belligerency of the state will not be recog­ nized." The U.S.-japan Peace Treaty ofSeptember 8, 1951, signed by john Foster Dulles and Prime Minister Shigeru Yoshida, declared that j apanwould rearm only under the provisions of the constitution. Yoshida was pressured by the U.S. to sign a peace treaty ending World War II only with Taiwan rather than with both Taiwan and the People's Republic of China as Yoshida preferred. Follow­ ing the November 1955 merger of the Democratic and Liberal parties, japanese prime minister Ichiro Hatoyama sought to broaden japanese diplomatic possibilities by signing a peace treaty with the Soviet Union. Relations with Communist China, however, had to take a more roundabout route. Given U.S. opposition to any japanese diplomatic relations with China, the japanese emperor approved the request of one of the imperial princes, who was a leading scholar of Chinese culture, to take up residence in Peking in an imposing palace. As a private imperial cultural liaison with China, the U.S. could not object if numerous japanese trade delegations shared his hospitality at receptions which the prince gave for high Chinese officials. Somehow these cultural evenings produced morning-after agreements for massive trade through Communist China's huge banking operations in Hong Kong. When China's vice-premier, Teng Hsiao­ ping, visited Japan last fall he visited Nippon Steel chairman Yoshihio Inayama, who had taken the lead twenty years ago in pressing for trade with China. For years Inayama led the industrial community in freeing japan from America's dominance. In 1972 foreign minister Masayoshi Ohira-now Prime Minister­ negotiated the foundations for the normalization of japanese-Chinese relations, which led to the meeting between then-Prime Minister Kakuei Tanaka and China's Chou En-Iai. The continued improvement in japanese­ Chinese relations over the past few years occurs in the context of strained diplomatic relatins between Japan and the Soviet Union. The Soviet Union has sought to exclude Japan from fishing in waters offits north Pacific territories. At the same time, the Soviet Union has"been anxious to have Japan invest heavily in the development of Siberian resources: coal, minerals, timber, naturalgas, and the necessary railroad and pipeline facilities. The Soviet resources are attractive because of their nearness to japan and the fact that they can be shipped the short-distance across the ice-free Sea of Japan. The Soviets have taken 36 their time to follow through on this investment in their

THE LIBERTARIAN REVIEW cracking facilities by japan's refineries. japan's refineries To finance the new China-japan trade, japan's 16 major hardly need the added expense, especially as there is plenty private banks are seeking to provide credit to the Chinese. of light oil already available, and more is being discovered China may issue yen bonds inthe Tokyo market, butChina and developed in Mexico, another important future may not be willing to accept the very strict disclosure partner of japan. With the Arabs attempting to pressure requirements ofthe Tokyo market. In lieu ofthese sources, the japanese to buy more heavy oil (which is high in doubtless, like Russia and Zaire, China may have a friend sulphur and requires thermal cracking), China's nearby at Chase Manhattan Bank. low sulphur heavy oil (requiring other cracking technol­ Far Eastern Economic Review editor Derek Davies has ogy) can look politically advantageous. noted that there is a strong possibility that japan's ruling Estimates ofChina's oil reserve vary from the CIA's June Liberal Democratic party will fully cut itself free from the 1977 study "China: Oil Production Prospects" which right-wing Seirankai faction which seeks rearmament and predicted China's onshore reserves as comparable to a belligerent response to outside pressures. The Liberal America's 39-billion barrels with an equal amount off Democratic party (cf. Nathaniel B. Thayer, How the shore, to Teng's claim of 400-billion barrels. Given the Conservatives Rule Japan, Princeton University Press, poor state of China's oil technology, however, any 1969) is tending toward a no rearmament posture and is prediction is likely to be mainly guesswork. (On China's seeking purely diplomatic means to solve international oil industry, see Christopher Howe, China's Economy, issues. There is a simple reason for this: after following the New York, Basic Books, 1978.) American model for thirty years, the japanese have found that the huge American expenditures on military budgets and consequent malinvestment in armaments industries has led to a lessening of economic growth and a loss of economic leadership. America's inflation, resulting in part from those policies, has become a warning to the Japanese to abandon the American model of "capitalism" and keep as much distance from that supposed "capitalism" as from socialism. As a result, the japanese have begun to develop their own unique sense of themselves. They are rejecting the inflationary West and the technologically backward East, and declaring themselves a new cultural-economic force in the world. The election in December of a new prime minister, Masayoshi Ohira, will only increase the tendency to japanese to seek a new independence. Ohira, one of the few Christians in japanese politics, is a strong fiscal conservative who cherishes japan's economic advantage in U.S. trade-which is based on lower military spending and taxation. He is likely to lead the Liberal Democratic party more firmly inthe direction of rejection of rearmament and toward a multi-directional foreign policy seeking peace and trade with all nations. james Reston, in the New York Times, December 1, 1978, noted the great paradox that while western nations are questioning the goals of materialism and even the values of Western culture, the socialist countries "are yearning for the benefits of the capitalist materialism they condemn." Reston quotes the English historian Herbert Butterfield (1960): "We have reached a moment at which the peoples of Asia cannot understand either their Marxism or their dreams of autonomy, either their secular ideals or their government machinery without digging into the history of Western Europe.... It is possible for us in the West to lose faith in ourselves and forget the way in which the Asiatic continent has surrendered to the West, taking over our science, our technology, our political ideals, our diplomatic traditions, our governmental practices, and many ofour ideas about life." To take that a little further, while America has lost much ofits faith in the cultural norms"upon which capitalism flourished, it is possible that Japanese cultural norms will provide a new garden in which the flowering of capitalism, without militarism and the resulting inflation, will be possible. D

Leonard P. Liggio is the editor ofLiterature of Liberty. His articles on historical and political subjects have appeared in a number of journals, books, and magazines. He is an associate editor of LR. 37

MARCH 1979 that Stalin spun as a pretext A new social stratum-it had for eliminating his old com­ sprung up the very morning of rades. In 1940, an agent of the revolution-began to con­ the Soviet secret police, solidate itself: the party-state Ramon Mercador, sought bureaucracy which found its Trotsky out at his home in support in the technical intel­ BOOKS Mexico City and killed him ligentsia, the factory mana­ with an ice ax to the head. gers, the military officials, and, Irving Howe, the distin­ above all, the party function­ AND THE guished literary critic and aries ... To speak of a party­ editor of Dissent, tells the state bureaucracy in a country story of this interesting life where industry has been na­ with great lucidity, econ­ tionalized means to speak of a omy, and grace. The em­ new ruling elite, perhaps a new phasis is on·Trotsky's ruling class, which para­ ARTS thought, with which How~ sitically fastened itself upon has concerned himself for every institution of Russian almost the past 40 years. As life. [emphasis in original] Trotsky: n't be too harsh on writers a young man, he states: "I Howe goes on to say that with such ideas-not came for a brief time under it was not to be expected the ignorance exactly a Nat Hentoff posi­ Trotsky's influence, and that the Bolsheviks them­ tion on freedom of expres­ since then, even though or selves would realize what and the evil sion, but about as good as perhaps because I have re­ they had done and what one can expect among mained a socialist, I have class they had actually RALPHRAICO Communists. found myself moving raised to power: "It was a Above all, Trotsky was farther and farther away historical novelty for which Leon Trotsky, by himself an intellectual, and from his ideas." little provision had been one who played a great part Howe is in fact consider­ made in the Marxist scheme Irving Howe. Vik­ in what many of that breed ably more critical of Trot­ ofthings, except perhaps in ing Press, 214 pp., have considered to be the sky than I had expected. He some occasional passages $10.00. real world-the world of identifies many ofTrotsky's to be found in Marx's writ­ revolutionary bloodshed crucial errors, and uses ings about the distinctive LEON TROTSKY and terror. He was second them to cast light on the social character of Oriental only to Lenin in 1917; in flaws in Marxism, Lenin­ despotism." has always had a the Civil War he was the ism, and the Soviet regime This is not entirely cor­ certain appeal for leader ofthe Red Army and that Trotsky contributed so rect. Howe himself shows intellectuals that the Organizer of Victory. much to creating.. And yet how Trotsky, in his book As Howe says: "For intel­ there is a curious ambiva­ 1905 (a history of the Rus­ . the other Bolshevik lectuals throughout the lence in the book. Somehow sian revolution of that leaders lacked. The world there was something the ignorance and evil in year), had had a glimpse of reasons for this are fascinating about the spec­ Trotsky's life are never al­ this form of society, one in tacle of a man of words lowed their full weight in which the state bureaucracy clear enough. He transforming himself the balance, and, in the end, was itself the ruling class. In was a writer, an oc­ through sheer will into a he turns out to be, in analyzing the Tsarist re­ casional literary man of deeds." Howe's view, a hero and gime, Trotsky had picked Trotsky lost out to Stalin "titan" of the twentieth up on the strand ofMarxist critic-according in the power struggle of the century. It's as ifHowe had thought which saw the state to Irving Howe, a 1920s, and in exile became chosen not to think out as an independent parasitic a severe and knowledgeable fully the moral implications body, feeding on all the very good one­ critic of his great antag­ of what it means to have social classes engaged in the and an historian (of onist; thus, for intellectuals said and done the things process of production. This the revolutions of with no access to other cri­ that Trotsky said and did. was a view that Marx ex­ tics of Stalinism-classical We can take as our first pressed, for instance, in his 1905 and 1917). liberal, anarchist, or example Howe's discussion Eighteenth Brumaire of He had an interest conservative-Trotsky's of the final-outcome of Louis Bonaparte. in psychoanalysis writings in the 1930s Trotsky's political labors: More importantly, the opened their eyes to some the Bolshevik revolution class character of Marxism and modern devel­ aspects at least of the and the Soviet regime. itself-as well as the prob­ opments in physics, charnel-house that was Sta­ Throughout this book able consequences of the and, even when in lin's Russia. During the Howe makes cogent points coming to'power ofa Marx­ period of the Great Purge regarding. the real class ist Party-had been -iden­ power, suggested and the Moscow show­ character of this regime­ tified well before Trotsky's that the new Com­ trials, Trotsky was. placed at and other Communist time. The great nineteenth the center of the myth of governments~which,he century anarchist Michael munist thought­ treason and collaboration notes, manifested itself very Bakunin-whose name 38 controllers should- with Germany and Japan early on: does not even appear in

THE LIBERTARIAN REVIEW Howe's book, just as not a Thus, that Marxism in It remained for some of vised." Indeed. single other anarchist is power would mean the rule Trotsky's more critical dis­ To his credit, Howe rec­ even mentioned anywhere of state functionaries was ciples, especially Max ognizes that a key period for in it-had already sub­ not merely intrinsically Shachtman in the United understanding Bolshevism, jected Marxism to critical probable-given the mas­ States, to point out to their including the thought of scrutiny in the 1870s. In the sive increment of state master what had actually Trotsky, is the period of course of this, Bakunin had power envisaged by Marx­ happened in Russia: that war communism, from uncovered the dirty little ists what else could it the Revolution had not 1918 to 1921. As he de­ secret of the future Marxist be?-but it had also been produced a "workers' scribes it: "Industry was state: predicted by writers well state", nor was there any almost completely national­ known to a revolutionary danger that "capitalism" The State has always been the ized. Private trade was ban­ like Trotsky. Trotsky, how­ would be restored, as Trot­ patrimony of some privileged ned. Party squads were sent ever, had not permitted sky continued to fret it into the countryside to re­ class or other; a priestly class, himself to take this analysis would. Instead, there had quisition food from the an aristocratic class, a bour­ seriously before commit- come into an existence in peasants." The results were geois class, and finally a tragic on a vast scale. The bureaucratic class ... But in the People's State of Marx, economic system simply broke down, with all the there will be, we are told, no ~~. immense suffering and all privileged class at all ... but the countless deaths from there will be a government, starvation that such a small which will not content itself statement implies. As Trot­ with governing and adminis­ sky himself later put it: tering the masses politically, as "The collapse of the pro­ all governments do today, but ductive forces surpassed which will also administer anything of the kind that them economically, concen­ history had ever seen. The trating in its own hands the country, and the govern­ production and the just divi­ ment with it, were at the sion of wealth, the cultivation very edge of the abyss." of land, the establishment and How had this come ab­ development of factories, the out? Here Howe follows organization and direction of . the orthodox interpreta­ commerce, finally the applica­ tion: war communism was tion ofcapital to production by merely the product of the only banker, the State. All emergency conditions, cre­ that will demand an immense ated by the Revolution and knowledge and many "heads the Civil War. It was a sys­ overflowing with brains" in tem of "extreme measures this government. It will be the [which the Bolsheviks] had reign of scientific intelligence, never dreamt of in their the most aristocratic, despotic, earlier programs." arrogant, and contemptuous Now, this last may be, of all regimes. There will be a strictly speaking, correct. It new class, a new hierarchy of may well be, that is, that the real and pretended scientists Bolsheviks had never had and scholars .... [emphasis the slightest idea of what added] their aims would mean This perspective was taken noJ1 concretely for the economic up somewhat later by the ting himself to the Marxist Russia a "bureaucratic col­ life of Russia, how those Polish-Russian revolution-, revolutionary enterprise. lectivism" even more reac­ aims would of necessity ist, Waclaw Machajski, More than that: "To the tionary and oppressive than have to be implemented, or who held, in the words of end of his days," as Howe what had gone before. what the consequences Max Nomad, that -"nine­ writes, he "held that Trotsky rej ected this in­ would be. But war com­ teenth century socialism Stalinist Russia should still terpretation. In fact he had munism was no mere "im­ was not the expression of be designated as a 'degener-! no choice. For, as Howe provisation," whose hor- the interests of the manual ated workers' state' because states, the dissidents"called rors are to be chalked up to workers but the ideology of it preserved the national­ into question the entire re­ the chaos in Russia at the the impecunious, malcon­ ized property forms that volutionary perspective time. The system was willed tent, lower middle-class in­ were a 'conquest' of the upon which [Trotsky] con­ and itself helped produce tellectual workers ... be­ Russian Revolution"-as if tinuedto base his politics. that chaos. As Paul Craig hind the socialist 'ideal' was nationalized property and ... There: was the further Roberts has argued in his a new form of exploitation the planned economy were possibility, if Trotsky's cri­ brilliant book Alienation for the benefit ofthe office­ not the very instruments of tics were' right, that the and the Soviet Economy, holders and managers of rule of the new class in whole perspective of social­ war communism was an the socialized state." Soviet Russia! ism·might have to be re- attempt to translate into 39 MARCH 1979 Reality the Marxist ideal: One slight obstacle was monkish exegesis of the eral prejudice," learnedly the abolition of"commod­ encountered, however, on holy books of Marxism. pointing out that "chattel slav­ ity production," ofthe price the road to the abolition of The nitty-gritty of how an ery, too, was productive"­ system and the market. the price system and the economic system func­ and that compulsory serf labor This, as Roberts de­ market: "Reality," as Trot­ tions-how, in our world, was in its times "a progressive monstrates, was what sky noted, "came into in­ men and women work, phenomenon." He told the Marxism was all about. creasing conflict" with the produce, exchange, and unions [at the Third Congress This is what the end of economic "system" that the survive-was something of Trade Unions] that "coer­ "alienation" and the final Bolshevik rulers had fas­ from which they prudishly cion, regimentation, and liberation of mankind con­ tened on Russia. After a few averted their eyes, as per­ militarization oflabor were no sistedin. Why should it be years of misery and famine taining to the nether reg­ mere emergency measures and surprising that when self­ for the Russian masses­ ions. These "materialists" that the workers' State nor­ confident and determined there is no record of any and "scientific socialists" mally had the right to coerce Marxists like Lenin and Bolshevik leader having lived in a mental world any citizen to perform any Trotsky seized power in a died of starvation in this where understanding work at any place ofits choos­ great nation, they tried to period-the rulers thought Hegel, Feuerbach, and the ing." put into effect the very pol­ again, and a New Economic hideousness of Eugen And why not? Hadn'tMarx icy that was their whole Policy (NEP)-including Duehring's philosophical and Engels, in their ten reason for being? elements of private owner­ errors was infinitely more point program for revolu­ As evidence for this ship and allowing for mar­ importantthan understand­ tionary government in The interpretation, Roberts ket transactions-was de­ ing what might be the Communist Manifesto, quotes Trotsky himself creed. meaning of a price. Of.the demanded, as point eight: (ironically, from a book of The significance of all actual operations of social "Equal liability for all to Trotsky's writings edited by this cannot be exaggerated. production and exchange labor. Establishment of in­ Irving Howe): What we have with Trotsky they had about the same dustrial armies, especially and his comrades in the appreciation as John Henry for agriculture"? Neither ... the period of so-called Great October Revolution Newman or, indeed, St. Marx nor Engels ever dis­ "war communism" [was a is the spectacle of a few Bernard of Clairvaux. This avowed their claim that period when] economic life literary-philosophical intel­ is a common enough those in charge of "the was wholly subjected to the lectuals seizing power in a circumstance among intel­ workers' state" had the needs of the front ... it is great country with the aim lectuals; the tragedy here is right to enslave the workers necessary to acknowledge, of overturning the whole that the Bolsheviks came to and peasants whenever the however, that in its original economic' system-but rule over millions of real need might arise. Now, hav­ conception it pursued broader without the slightest idea of workers, real peasants, and ing annihilated the hated aims. The Soviet· government how an economic system real businessmen. market, the Bolsheviks hoped and strove to develop works. In State and Revolu­ Howe puts the matter found that the need for en­ these methods of regimenta­ tion, written. just before he rather too sweetly: once in slavement had, indeed, ari­ tion directly into a system of took power, Lenin wrote: power, he says, Trotsky sen. And of all the Bol­ planned economy in distribu­ "The accounting and con­ "was trying to' think his shevik leaders, the most tion as well as production. In trol necessary [for the oper­ way through difficulties no ardent and aggressive ad­ other words, from "war com­ ation of a national econo­ Russian Marxist had quite vocate of forced labor was munism" it hoped gradually, my] have been simplified by foreseen." And what did the Leon Trotsky. but without destroying the capitalism to the utmost, till brilliant intellectual pro­ There are other areas in system, to arrive at genuine they have become the ex­ pose as a solution to the which Howe's critique of communism ... reality, how­ traordinarily simple opera­ problems Russia now Trotsky is not penetrating ever, came into increasing con­ tions of watching, record­ faced? "In December 1919 enough, in which it turns flict with the program of "war ing and issuing receipts, Trotsky put forward a out to be altogether too communism." Production con­ within the reach ofanybody series of 'theses' [sic] before soft-focused and oblique. tinually declined, and not only who can read and write and the party's Central Com­ For instance, he taxes Trot­ because of the destructive ac­ knows the first four rules of mittee in which he argued sky with certain philo­ tion of the war. arithmetic.', for compulsory work and sophical contradictions Roberts goes on to quote With this piece of cre­ laborarmies ruled through stemming from the latter's Victor Serge: "The social tinism Trotsky doubtless military discipline...." belief in "historical system of those years was agreed. And why wouldn't So-forced labor, and materialism." All through later called 'War Commu­ he? Lenin, Trotsky, and the not just for political oppo­ his life, Howe asserts, Trot­ nism.' At the time it was rest had all their lives been nents, but for the Russian sky employed "moral called simply 'Commu­ professional revolu­ working class. Let Daniel criteria by no means simply nism' ... Trotsky had just tionaries, with no connec­ and Gabriel Cohn-Bendit, derived from or reducible to written that this system tion at all to the process of the left-anarchists from the class interest. He would would last over decades if production and, except for May days of 1968 in Paris, speak of honor, courage, the transition to a genuine, Bukharin, little interest in take up the argument: and truth as if these were unfettered Socialism was to the real workings of an "Was it so true," Trotsky known constants, for be assured. Bukharin ... economic system. Their asked, "that compulsory labor somewhere in the orthodox considered the present concerns had been the was always unproductive?" Marxist there survived a mode of production to be strategy and tactics of re­ He denounced this view as streak of nineteenth­ 40 fina1." volution and the perpetual, "wretched and miserable lib- century Russian ethicism, THE LIBERTARIAN REVIEW earnest and romantic." condition that Lenin was distinguished Old Bol­ ing.... [It will be] possible to Let us leave aside the silly present and in command." sheviks, were subjected by reconstruct fundamentally the implication that there is Howe asks, "Whathappens hooligans in the employ of traditional family life.... The something "romantic" to historical materialism?" the party apparatus, the human race will not have about belief in ethical val­ The point Howe is making, severe threats made against ceased to crawl on all fours ues, as against the "scien­ of course, is that in the all within the before God, kings and capital, tific" character oforthodox Marxist view, individuals party. .. -is in order later to submit humbly Marxism: in this passage, are not allowed to play any it political before the laws ofheredity and Howe seems to be saying critical role in shaping re­ against Leon sexual selection! ... that adherence to certain ally important historical his "distinguished" make it his purpose commonly-accepted values events, let alone in deter­ ers that is supposed to a higher social is, among Marxists, a rare mining whether or not they our blood run cold? No: if or, if you kind of atavism on Trot­ occur. there was ever a satisfying an. sky's part. Not at all. Of But the answer to case of poetic justice, the own plan course historical mate­ question is that, whell "harassment" and "perse- ... his rialism dismisses ethical sky commits a bl . of Trotsky-down ownh rules as nothing more than this, nothing b (1nroI1·,rt,no- the ice ax promote the "expression," or reflec­ thing ha it. worker-s tion," or whatever, of "un­ "histor' best example of dustry, he derlying class relation­ was strange gentleness own will ships" and, ultimately, of fr toward Trotsky I have Proletarian "the material productive lca for the last. What, to guess wh forces." But no Marxist has phil all is said and done, stand in for ever taken this seriously, Oce picture of the munist Man except as pretext for break­ in some~(. e light llmunlst society of the came to direc ing ethical rules (as when that are intended to Howe does quote experiment Lenin and Trotsky argued up for the dark ones in Literature physiologica in justification of their ter­ Trotsky's life, Howe comes the famous, plicated me ror). Even Marx and En­ perilously close to slipping last lines: cial selecti gels, in their Inaugural Ad­ into a fantasy world. he •. .I..I.L.. .I..I..I...... I..1. type physiologi dress of the First Interna­ says that in the struggle rise to reconstr ~ tional, wrote that the Inter­ with Stalin, Trotsky was at u ...... '-' ...L .... a tional f national's foreign policy a disadvantage, because he And tiono would be to "vindicate the "fought on the terrain of eaks blin simple laws of morals and the enemy, accepting the justice [sic] which ought to damaging assumption of a govern the relations of pri­ Bolshevik monopoly of vate individuals, as the laws power." :§..llt why is this paramontofthe intercourse assum d on the where of nations." That Trotsky e in the admired honor, courage, s arxism under- and truth is not something term-where all that cries out for explall life, starting from tion by referellc:e to n ic, but going on Russian tra . ideas than a yerything, even cism" (", inquisitor believed in a Uarters and th ate and inti- be). witch's right to her own streets, brick by brick, from mat uman exist- tho personal lifestyle. And as generation to generation, will ence sciously for the rights even of other give way to the titanic con­ planne ~ciety," s a socialists-Trotsky in 1921 struction of city-villages, with which is.dito have a needs had led the attack on the map and compass in hand.... single will. it is this­ ake "his­ Kronstadt rebels, who Communist life will not be this disgusting positivist ism" much merely demanded freedom formed blindly, like coral is­ nightmare-that, for him, too serlto begin with. for socialists other than the lands, but will be built up made all the enslavement Similarly with other con­ Bolsheviks. At the time, consciously, will be erected and and killings acceptable! tradictions Howe thinks he Trotsky boasted that the corrected. . .. Even purely Surely, this was another has discovered between rebels would be shot "like physiologic life will become dirty little secret that Howe Trotsky's Marxist philos­ partridges"-as, pursuant subject to collective experi­ had an obligation to let us ophy and certain state­ to his orders, they were. ments. The human species, the in on. ments Trotsky made in Howe even stoops to try­ coagulated homo sapiens, will Howe ends by saying of commenting on real politi­ ing a touch of pathos. In once more enter into a state of Trotsky that "the example cal events. Of the Bolshevik sketching the tactics Stalin radical transformation, and, in of his energy and heroism is Revolution itself, Trotsky used in the struggle with his own hands, will become an likely to grip the imagina­ says that it would have Trotsky, he speaks of "the object of the most complicated tion of generations to taken place even if he had organized harassment to methods of artificial selection come," adding that, "even not been in Petrograd, "on which Trotskyist leaders, and psycho-physical train- those of us who cannot 41 MARCH 1979 heed his word may recog­ 1960 election. After two ing women for the likes of nize that Leon Trotsky, in Spies and years' tenure at the General Hussein and Sukarno, and his power and his fall, is one counterspies Mills Corporation he spent along with Howard Hughes, ofthe titans ofourcentury." three years in the Philippines covered for the CIA's Glomar This is the kind of writing spooking for their govern­ Explorer project, which that covers the great issues JACK SHAFER ment and ours. 1965 re­ scooped a Russiansubmarine of right and wrong in turned him to private service off the ocean floor. human affairs with a blan­ Spooks: The Haunting of at Lockheed's Washington Much of Spooks docu­ ket of historicist snow. The America-the Private Use headquarters as "Interna­ ments the use of private fact is that Trotsky used his of Secret Agents by Jim tional Representative': In agencies by the multination­ talents to take power in Haugan. William Morrow 1968 Golden returned to the als to evade state power. order to impose his willful and Company~ 478 pp.~ Nixonpayroll as staffsecuri­ $12.~5 agencies by the multination­ dream-the abolition of ty chief for the campaign. als to evade state power. the market, private prop­ THAT THERE ARE TWO After the inauguration he Howard Hughes, dissatis­ erty, and the bourgeoisie. histories in this country, one hired on to Resorts Interna­ fied with the extent of his His actions brought untold sanitized and official, and tional, the gambling firm, as hold over the fawning Gov­ misery and death to his the other tainted and secret, deputy director of security, ernor, Senators, and Con­ country. Yet, to the end of comes as no surprise to stu­ and then was placed as vice­ gressmen of Nevada, com­ his life, he tried in every way dents of revisionism. Jim president of Resorts's newly missionedMaheutoseekout he could to bring the Marx­ Hougan, Harper's maga­ founded spookcompany, In­ the Bahamas as an offshore ist revolution to other zine's Washington editor, ternational Intelligence, Inc. headquarters. Hughes di­ peoples-to the French, the has immersed himselfin four (Intertel). In 1972 Golden rected Maheu to "wrap that Germans, the Italians-with years of the modern intelli­ joined Howard Hughes's government up down there what probable conse­ gence milieu and come up Summa Corporation and ar­ toapointwhereitcouldbe­ quences, he, better than with the secret history of rangedfor Hughes'sentryin­ well, a captive entity in every anyone else, had reason to post-WWII spooks, the tens to dictator Somoza's Nicar­ way." Spooks abounds with .know. He was a champion ofthousands ofex federal in­ agua. NowGolden is backat examples of such purchased of thought-control, prison telligence agents from the the government's disposal, political power. Hampered camps, and the firing squad CIA, FBI, IRS, DEA, NSA, working in intelligence atthe by anti-trust, taxation, secu­ for his opponents, and of ACC, Army, Navy, Air Law Enforcement Assistance rities laws, other state regu­ forced labor for ordinary, Force, and Treasury Depart­ Administration (LEAA). lations, and "morality laws" non-brilliant working peo­ ments, who have fallen into It is clear that spooks like (gambling, drugs, etc.) the ple. He openly defended the employ of the multina­ Golden traverse the same re­ offshore motif attracted chattel slavery-which, tional corporations and the volving door as· the George Robert Vesco to Costa Rica, even in our century, must wealthy. Balls, Clark Cliffords, and Bernie Cornfeld to Switzer­ surely put him into.a quite Hougan finds spooks Cyrus Vances of the diplo­ land, andmultinationalfirms select company. working for McDonald's matic levels of government. such as ITT, Resorts Inter­ He was an intellectual hamburgers as well as ITT, Thespeed ofthe spinthrough national, Gulf, Lockheed, who never asked himself working as independent con­ the door blurs the line be­ andorganizedcrime toother such a simple question as: tractors and salaried corpor­ tween business and the state, ports outside the control of "What reason do I have to ation men. Spooks wiretap, creating anintelligence estab­ the U.S. Government. What believe that the economic perform black-bag jobs, au­ lishment that is both public the spooks provided was the condition of workers under thenticate documents, con­ and private. Acting in official expertise and connections socialism will be better than struct security systems to capacity one day, they pack needed to reach these re­ under capitalism?" To the wardoffenemy missions, do their bags and sell their skills, treats. Doubtless, not much last, he never permitted background checks, infil­ knowledge, and government salesmanship was required. himself to glimpse the pos­ trate competitors, ferret out contacts on the .market the ThoughHughesnever suc­ sibility that the bloody, intelligence, and commit next. And sometimes the pur­ ceeded in wrapping up the bureaucratic tyranny over acts ofsabotage. And, ifyou chaser ofthe skills is the gov­ Bahamas, the idea of "own­ which Stalin presided might pay the price they will even ernment itself. Thus, former ing" a state dawned on oth­ never have come into exis­ overthrow a foreign govern­ government spookslike Rob­ ers. In recounting Michael tence but for his own ef­ ment or perform a "wet job" ert Maheu set.up private Oliver's Republic of Miner­ forts. (murder) for you. spookcompanies and handle va fiasco, Hougan will win A hero? Well, no thank To understand better the "impossible missions" for the no love among libertarians you-I'll find my own spook concept we should CIA, missions which both by referring to Ludwig Von heroes somewhere else. A study the career of proto­ violate the CIA charter and Mises as a "crank econo­ titan of the twentieth cen­ typical spook,]ames O. Gol­ provide the. Company with mist'; or by mistakenly cal­ tury? In a sense, yes. At least den. Ex-Marine interroga­ deniability in casethe mission ling Ayn Rand's philosophy Leon Trotsky shares with tor and degreed criminolo­ fouls up. One such mission "positivism'; but the remain­ the other "titans" of our gist, Golden joined the found Maheu as theproducer der of his reportage is fair. century this characteristic: Secret Service in 1958,draw­ of a porno film starring a Oliver, you remember, it would have been better if ing duty on the Vice-Presi­ Marshal Tito double and a claimed a coral rock almost he had never been born. dent Nixon detail. Golden female KGB agent look-alike three hundred miles east of Ralph Raico teaches history at struck up a personal rela~ romping in the nude. Other the Tonga group in an at­ the State University of New tionship with Nixon and left times Maheu's organization temptto create a "libertarian 42 York at Buffalo. the S.S. shortly after the pimped for the CIA, provid- state': King Taufa'ahau of

THE LIBERTARIAN REVIEW Tonga quickly expelled him. ments. WerBell saw this as a code arises by design, that in , and domestic clients, mainly Undaunted, Oliver set his Catch-22 situation; the gov­ order to screw one's enemies those in Fortune's 1,000 sights on Abaco, a 300,000 ernment, awed by the effi­ effectively the state must group, and scrupulously acre Bahaman island, and ciency ofthe Ingrams, feared constantly change the rules avoids political work. In­ enlisted the skills of spook they might fall into the of the game. In this context tertel participated in the Mitch WerBell, the self­ wronghands. Chafingunder the war between Kennedy Thanksgiving coup of 1970 styled "world's greatest se­ the state'swatchful eye, Wer­ and Hoffa escalated as Hof­ at the Hughes-run casinos in cret agent;' ass veteran, Bell tookthe manufacture of fa's only hope for justice was Las Vegas, worked under­ mercenary, gun-runner, mu­ the Ingrams offshore. to counter government cover for GM during the nitions industrialist, and in­ The Kennedy-Hoffa bat­ spooks with his own. Lordstown wildcat strike, ventor. The revolution in tles of the '50s and '60s are Elsewhere in Spooks, we and attempted to discredit Abaco went askew for var­ also viewed in the spook learn of the DEA proposed Jack Anderson for ITT dur­ ious reasons, but the Man paradigm. Hougan presents "final solution" for interna­ ing the Dita Beard scandal. Who Would Be King desire Teamster President James tional drug market kingpins Intertel counts among its cli­ still burnshotin the hearts of Hoffa as an employer of and howthe CIA, whocoun­ ents Henry Ford, The New spooks and their clients. minor hoods and unethical ted among these same king­ York Times, Detroit (for WerBell also figures prom­ user ofpensionfunds for per­ pins some of their best whom it designed airport se­ inently in the story ofthe In­ sonal gain. It took "the Ken­ agents, neutralized the plan. curity), Rhode Island, and gram submachine pistol, a nedy vendetta" to provoke The National Intelligence IBM. If Hougan is contem­ weapon most will recognize him to commitbribery, wire­ Academy, a sort of spook plating a sequel to Spooks, an from movies like Three Days tapping, and perjury as a de­ grad school, is profiled; and entire bookontheIntertelor­ ofthe CondorandMcQ. The fensive move against Kenne­ the Nixon-Burger plot ganization would be superb. Ingram M-l1 , coupled with dy's spook army led by NSA against Onassis at the behest Fromthe introduction on, a silencer of WerBell's in­ and FBI alumnus Walter of the Seven Oil Sisters, and Hougan shades his story vention, is capable of firing Sheridan. As Houganputsit, the possibility of the ex­ with the fear of the "haunt­ 850 near-silent rounds per There is adegree ofscrutiny that istence of Marilyn Monroe­ ing of America" by those minute of .380-caliber sub­ no one can survive, no matter Robert Kennedy tapes com­ paladin agents. He worries sonic ammo, making it the how ethical and honest he might missioned by Hoffa, are ex­ that the neutrality ofgovern­ perfect clandestine weapon. be. (Hoffa, of course, was nei­ plored. Other evidence is ment will be compromised WerBell and his business ther.) The slightest deviation in presented to support the by commercial intelligence partners figured the U. S. one's testimony before a never­ theories that Bernie Corn­ activities and foresees the Government as the ideal ending succession of grand jur­ feld's international network emergence of an industrial ies becomes, in the absence of customer for the Ingram, ex­ of lOS salesmen provided totalitarianism as a result of governmental good faith, per­ cover for CIA agents and their dirty work. A more as­ pectingittoreplace the .45 in jury. The slightest error in com­ support of the M-16. SWAT puting one's income tax be­ that the mob was contract­ tute observer of American teams, Third Worlders, and comes tax evasion. An offhand­ ing the CIA to kill Castro, history would recognize that revolutionaries such as ed remark to a friend is inter­ not the other way around as government has never been Michael Oliver would buy preted as a conspiracy to bribe. is commonly believed. neutral, precisely because them by the hundreds, rea­ The purchase of tape recorders Some of Spooks's best the powerthe statewields in­ soned WerBell and his asso­ preted as a conspiracy to bribe. writing revolves around the vites takeover. The corpo­ ciates, making the market The purchase of tape recorders intelligence-company-for­ rate state and Banana Re­ very bullish. Surprisingly, for the purpose of recording un­ hire,Intertel. Staffed by vet­ publics have been with us for the Government passed on ion meetings is evidence of wire­ erans of Kennedy's Justice over a century, and spymas­ the offer, and no LEAA tapping. Departmentdays andowned ters abound in history. That money procured the deadly Hougan apparently doesn't by Nixon Republicans, In­ state power breeds greater pistols for police depart- appreciate that this legal tertel does work for foreign criminality, a la theHoffaex-

IF r COL/i./} FINO A NEW I HATe Ol./R PERMIG51VE WHEN W/~~ .THEY l.ET ME THeY/VE RoaaeD #Ie ~OC/~TY, .jUNIOR. fJE A ilEAL "ETECTIVE OF MY.5et..r-eXPRESSION. ARENA WHERe THE I ABHOf( THE CODOLING ASA/N --BHOOTIN6 I'ttl IIHPOTENr. COURTS CAN'T INTERPERE WITH JUSTICE, I'O OF CRIMINAI..515EEING EVIL .. DOERS I PUTTING c/YJASCUL.A7eO 8Y THE THE IIJALEVOI..EN11r1INOR/7Y THOSE 81e, CIRCUlAR. OO .. GOODERS AN/) LEAVE THE FORCe. PREY ON THE GOD-FEARING BULLET HO/..cS IN THeIR L.IBERTARIANS! BIJT WHERE COUlO I GOI POPUL.ACE! FOReHeADS? / JUNIOR? WHERE? )'o'~/ .-...- __~~ / THeRE'S ALWAYS ,.... THe CIA I; / (~ (. \~"~ 7: -.. r;II'I~ ~f,::,' Ji'y;-} v

43

MARCH 1979 ample, and any effort to anti-trust laws came about early fifth month of preg­ Mohr as reasons for the force the private intelligence as a public reaction to the nancy. There is no dispute persistent crusade by physi­ establishmentfurther under­ "excesses" of monopoly that abortion was not con­ CIans. ground only makes matters capitalism is historically sidered a crime until 1850, Physicians in the 19th worse should cause Hougan false. As Gabriel Kolko has but Mohr has overlooked century, it seems, were not to· reconsider his "Domestic shown in The Triumph of recent scholarship which so different from business­ Agents Registration Act" Conservatism, many anti­ indicates that the common men-because one of the proposal. Indeed, in a Sep­ trust laws an government law actually did not major reasons for their tember 8, 1978 interview in regulations were instigated penalize abortion at any crusade was fear ofcompet­ the Los Angeles Herald Ex­ by certain business interests stage ofpregnancy. Mohr is ition! In the early part ofthe aminer, he seems e;tlready to who, unable to get their not alone in this mistake. century,medical prac­ have recanted this position: monopolies in an open Like most other writers on titioners called "irregulars" "Congress will never· do it market, sought government the subject, even including (because they had not at­ [pass a Domestic Agents protection for their anti­ the U.S. Supreme Court, he tended medical school) Registration Act] because market practices. has based his conclusions were free to sell theirser­ the people who hire spooks, Many peoplelikewise na­ on a 1968 article by Cyril C. vices. The "regular" and the spooks themselves, ively assume that anti­ Means, Jr. which cites the physicians-those who are too influential. But the abortion legislation came quickening criterion. For had graduated from medi­ press will get on their case about because of public unclear reasons, Mohr and cal school-resented the because there are a lot of demand, because the cul­ most others appear not to competition from the ir­ good stories out there?' tural and religious climate have read Means's later arti­ regulars. Because many of Spooks is an exhaustively of the day was opposed to cle of 1971, a more careful the irregulars were abor­ researched, literate map of abortion. In Abortion in investigation which pro­ tionists and the physicians the intelligence universe. An America, a new and impor­ vides evidence that the were openly jealous of the excellent companion to Carl tant work of revisionist his­ common law was totally handsome fees they col­ Oglesby's The Yankee and tory, James C. Mohr de­ laissez faire in its attitude lected, the issue of abortion Cowboy Wat; Spooks is as stroys this myth. In a toward abortion. [The arti­ provided a particularly factual as Yankee is specula­ meticulously documented cles by Cyril Means good method ofattack. "By rive. Thisis revisionisthistory study of abortion legisla­ are:"TheLaws of New raising the abortion ques­ at its best in a field not even tion in the 19th century, York Concerning Abortion tion and by highlighting the the court historian dares Mohr demonstrates that and the Status of the Fetus, abuses and dangers as­ treadbecause ofsecrecy. Itis anti-abortion laws were, in 1664-1968" in 14 New sociated with abortion," the best spy book, fiction in­ fact, primarily the result of York Law Forum 411 says Mohr, "regular physi­ cluded, I have ever read. manipulation by physicians (2968), and "The Phoenix cians could encourage the and the fledgling American of Abortion·Freedom," in state to deploy its sanctions Jack Shafer is a struggling Medical Association for 17 New York Law Forum against competitors." screen writer in Los Angeles. their own special purposes. 335 (1871)]. However, the alleged Carefully searching both Butthis regrettable error danger was, according to the secular and religious aside, there is very little else Mohr, merely an excuse, Abortion: the literature, Mohr finds no Mohr misses. He goes onto since the evidence suggests evidence to indicate any examine in exhaustive de­ that abortion was not as regulars, the substantial outcry for anti­ tail the several waves of dangerous· as the regulars abortion activity in the anti-abortion activity and claimed. irregulars, and early 19th century. Ads with legislation which occurred The irregulars were also the ambivalent thinly veiled references to throughout the.19th cen­ an offense to the regulars' abortificients were, in fact, tury and how they came growing sense of profes­ SHARON PRESLEY extremely common in the about. "The first wave of sionalism~ Since anyone newspapers, journals, and abortion legislation in could practice medicine, even religious magazines of American history," he expulsion from a medical Abortion in America: The the time. writes, "emerged from the society was no threat. "An Origins and Evolution of In 1800, furthermore, struggles of both legislators anti-abortion law," the National Policy, 1800­ there were no statutes and physicians to control regulars reasoned, "would 1900 by James C. Mohr. whatsoever in the U.S. on medical practice rather lend public sanction to the Press~ Oxford University· the subject ofabortion. The than from public pressures professional efforts at dis­ 328 pp., $12.50. legal status of abortion was to deal with abortion per ciplining their own organi­ The Ambivalence of Abor­ entirely governed by com­ se." Later, as the medical zation." The greatest tion by Linda Bird Francke. mon law. Mohr makes a profession became more champions of the anti­ Random House, 257 pp., serious error in historical organized, and the AMA, abortion crusade, Mohr $10. fact at this point, however, founded in 1847, became points out, were also in the THE OSTENTIVE RA­ when he claims that under stronger, the pressure from forefront of the drive for tionale for a law, as liberta­ common law abortion be­ physicians would·· become professionalization of rians well know, is not al­ came a crime after "quick­ even greater and more ef­ medicine. ways the real reason for its ening", that is,after the fective. Also playinga part in the existence. We know, for woman first detected fetal Two major sets of fac­ physicians' anti-abortion example, that the com- movement, which usually tors--- professional and stance was the desire for 44 monly accepted notion that occurs in the late fourth or personal-are cited by status. The wish to recap-

THE LIBERTARIAN REVIEW ture what they considered was what Mohr calls "blat­ cians," writes Mohr, "were in the later 1850s brought a to be their ancient and ant nativism." Most physi­ among the most defensive disappointingly small re­ rightful place among social cians were white, native­ groups in the country on the sponse from religious quar­ policy makers and savants, born Protestants and so subject of changing tradi­ ters. "The origins and evo­ suggests Mohr, was an im­ were most of the women tional sex roles." Many lution of anti-abortion at­ portant motivating factor obtaining abortions. Fear­ physicians, including those titudes in the United during this era when physi­ ing that "the ignorant, the most active in the anti­ States," concludes Mohr, cians had fallen into low low-lived and the alien," as abortion crusade, were ex­ "owed relatively little to the repute. one regular put it, would tremely conservative in influence or the activities of There was, however, a take over the native popula­ their views of the social role organized religion." sincere belief on the part of tion, the physicians writing of women, believing that The major outside sup­ most physicians that abor­ about abortion in the medi­ woman's place was in the port for the physicians' tion was morally wrong. cal journals laid heavy home producing children. campaign came instead But because of public indif­ stress on the problem of Abortion interfered with from the anti-obscenity ference, says Mohr, "it was declining birthrates among this grand design. Not sur- crusaders. In 1873, the in­ famous Comstock law, "An Act for the Suppression of Trade in or Circulation of Obscene Literature and Ar­ ticles of Immoral Use," was passed. As a result of this law, it became a federal offense to sell "any article of medicine ... causing abortion, except on a pre­ scription of a physician in good standing." (my italics) A cozy law indeed for the regulars. The Comstock law, it should also be noted, marked a major turning point in anti-contraception legislation, thus creating a nice Catch-22. The pressure for anti­ abortion legislation was kept up until the 1880s and 1890s, when, according to Mohr, "cooperative licens­ ing laws finally brought an end to the era oflaissez faire medicine in America." With the decreasing numbers of irregulars and the increas­ a:: ::::> ing strength of the regulars, "The origins and evolution of anti-abortion attitudes in the United States," writes James C. Mohr it was no longer necessary in Abortion in America, "owed relatively little to the influence oractivities oforganized religion." to harass the irregulars through anti-abortion ac­ apparent to physicians that the native-born. "There can prisingly, most physicians tivities. The regulars could the only way to deal with be little doubt," concludes also fought the entry of turn instead to working for this question of basic mor­ Mohr,"thatProtestants'fear women into the regular outright licensing laws. The ality was to see that their about not keeping up with ranks of medicine. result ofthese trends was to position was embodied in the reproductive rates of Organized support for freeze abortion policy at the explicit statutes of their Catholic immigrants played the anti-abortion campaign point it had reached in own design." Lobbying be­ a greater role in the drive outside the ranks of regular 1880. Since the regular came a "holy war" for for anti-abortion laws in physicians was limited. physicians were well on many physicians; and,as 19th century America than Contrary to what might be their way to almost com­ Mohr puts it, "the theme of Catholic opposition to expected, the clergy were plete control of medicine, saving America from itself abortion did." not strong supporters ofthe there would be no relaxa­ was a common leitmotif A third and equally un­ drive. During the first half tion ofthe abortion laws for throughout the medical flattering personal reason of the 19th century, Protes­ many years. campaign against abortion for the physicians' opposi­ tant and Catholic clergy Ironically, as Mohr after 1860." tion to abortion was what alike, were largely silent on points out, the picture A second personal reason Mohr calls the "fear of the issue of abortion; even among physicians today is why physicians fought so being betrayed by their own the propaganda campaign reversed. "By 196~ accord- hard for anti-abortion laws women." Regular physi- launched by the physicians ing to a survey conducted 45 MARCH 1979 by Modern Medicine maga­ Francke opens by de­ ported express some kind of with reality, a maturing ex­ zine," he writes "some 87 scribing the ·decision to ambivalence, those few perience culminating in feel­ ings of relief, without the per cent ofAmerican physi­ terminate her own preg­ who express little or no cians favored a liberaliza­ nancy and her attempts to psychological scarring that reservations tend to be un­ makes for dramatic reporting. tion of the country's anti­ cope with the subsequent pleasant sorts-cavalier, abortion policies." ambivalent feelings engen­ frivolous, or not too bright. [See "Abortion: A continu­ Current attitudes that dered by the abortion. Her The hidden implication is ing Debate," in Family favor liberalization of laws ambivalence led her in 1976 that serious, sensitive Planning Perspectives, and even call for complete to write an essay which was people will, of course, feel September-October 1978.] abolition of abortion laws published pseudonymously ambivalent about abortion. The question ofrepresen­ are, in light of Mohr's on the Op Ed page of the Like Magda Denes in her tativeness aside, a close study, neither radical nor New York Times. "Though 1976 book, In Necessity look at the interviews re­ new, as many anti-abortion I would march myself into and Sorrow: Life in an veals that a great deal more activists would have us be­ blisters for a woman's right Abortion Hospital, Francke than ambivalence about lieve. Such views are instead to exercise the option of seems to be saying: Yes, abortion per se is being a return to a traditional motherhood," she wrote in abortion is OK-as long as expressed here. What laissez faire attitude that the Times article, "I disco­ you feel guilty about it. Francke fails to draw atten­ had existed for many years vered there in the waiting But, one could reasona­ tion to is the complexity of of America's history. Ironi­ room that I was not the bly object at this point, the ambivalent feelings cally again, it is the anti­ modern woman I thought I maybe most women do feel reported-as much about abortion activists who are was." ambivalent. How do we sex, sexuality and sex roles breaking step with tradi­ ~hen Francke learned know thatFrancke's report­ asaboutabortion.Thed~ tion. Many of the views of that she was unexpectedly ing is lopsided? Though vastating effect that the current anti-abortionists pregnant, she and her hus­ Francke doesn't claim that irrational, puritan and have little or no legal prece­ band decided that the tim­ she conducted a scientific sexist ideas pervading our dent. The view, for example ing was all wrong. He was survey, she doesn't even not really so civilized soci.. thatthe fetus is aperson has about to switch careers; she present any evidence that ety have on many individu­ never been part of even the had just taken on a desira­ her reporting is objective, als is illustrated in these most stringent law. Nor is ble full time job; they had much less representative. interviews with depressing the view of the woman as three children already. We are not told how she clarity. killer one that has ever There was no room for collected her sample, how Many of the women (in­ gained much favor. Indeed, another child. "And it cer­ many people were inter­ cluding Francke), for the woman has rarely been tainly made sense not hav­ viewed, how she decided example, were not using subject to legal sanctions at ing a baby right now-we which interviews to report, any kind of contraceptive all. The morality of a par­ say that to each other all the or what the social and de­ method at the time ofinter­ ticular position cannot, of time," she concluded her mographic characteristics course. In some cases, espe­ course, be decided by refer­ essay. of her sample were. cially with the teenagers, ence to history, but judicial There is, however, reli­ this lack was due to ignor­ rulings have always been But I have this ghost now. A able evidence which ance and misinformation. influenced by legal prece­ very little ghost that only ap­ suggests that Francke's "They think the IUD will dent. For those who believe pears when I'm seeing some­ cause infection or cramps, thing beautiful, like the full views are not shared by that the choice of abortion most women who obtain or even get out of their moon on the ocean last week­ uteruses and wander should be a matter of indi­ end. And the baby waves at abortions. Henry P. David, vidual conscience and do me. And I wave at the baby. Director of the Transac­ around their bodies," re­ not believe that the State "Of course we have room," I tional Family Research In­ ports a nurse who works for should intervene, it is im­ cry to the ghost. "Ofcourse we stitute, clinical professor of Planned Parenthood. portant to note that the do." psychiatry, and a person But in a fair number of weight of legal precedent highly respected in the field, cases reported, the reasons and social conviction is on The maudlin, guilt­ has pointed out that for notusing contraception the side ofsuch laissez faire . ridden tone of this conclu­ were even more irresponsi­ sion is the first clue to the research findings and clinical ble and irrational. "I didn't experience confirm that some Mohr's dry, careful, scho­ real message of the book. feelings of loss, sadness, guilt see any need for birth con­ larly tone is in sharp con­ Though Francke claims and regret are frequently ob­ trol because it was some­ trast to the anecdoctal, that she wants to comfort served in women who undergo thing I didn't do very of­ highly. emotional style of both those who feel guilty abortions, but these feelings ten," said one teenager. Linda Bird Francke's The about having an abortion tend to be shortlived, seldom Some --of the women were Ambivalence of Abortion. and those who don't, by lasting more than a few hours intentionally, if not con­ Consisting primarily of in­ showing that others have or days. Only a small number sciously, irresponsible. terviews, the book reports their feelings, it soon be­ of women report the six "This time," reports one the reactions and feelings of comes apparent thatshe has months of grief and sadness, single woman, "I was to­ the haunting by "little ghosts," tally irresponsible about a wide variety of individu­ tailored her choice of anec­ or the communication with als involved in abortions: dotes to convey the idea imaginary babies experienced birth control. It was like I women and men, married that most people are like by Francke ... Most com­ was just waiting to be and unmarried, teenagers, her-with mixed feelings. monly, the decision to termi­ punished." Some used their young adults and older Not only do the great nate an unwanted pregnancy pregnancies as ways to 46 women. majority of the people re- represents a healthy coping manipulate their husbands

THE LIBERTARIAN REVIEW or lovers. Others, victims of insisted on an abortion full range of responses to dIed thinking in the libertar­ social sex role stereotyping, anyway, I would have been abortion. She wants to con­ ian camp already-on both wanted to prove their very upset and fought to centrate on the agony and sides of this issue-without "femininity" by showing have the child." thus loses sight of the adding more. Articles like that they could become By failing to acknowl­ "healthy coping" and Walter Block's "Toward a pregnant. edge the significance of "maturing experience" Libertarian Theory of Many of the men inter­ these other attitudes sur­ cited by David. "It is time," Abortion" (which claims to viewed had similarly irra­ rounding abortion, Francke David concluded in that be pro-abortion but is, in tional ideas and cultural does a disservice to a sub­ review, "to move the focus fact, anti-abortion) and hangups. Some, needing to ject which is far more com­ ofdebate from adversity to inappropriate pro-abortion prove their masculinity," plex than she is willing to successful coping, from arguments like the one were relieved to discover admit. It is not just guilt dysfunction to healthy using the "trespassing" that they could father a that causes emotional prob­ functioning in the face of analogy have only helped to child. Others, Francke's lems but irrational attitudes stress, and to recognize un­ create an unfortunate fog of husband inc1uded,agonized about sex and sex roles. If intended pregnancy as a confusion. There needs to over the possibilitiy that the they were to change, there dilemma that each couple, be a more intelligent and aborted fetus might have might be considerably less or woman, must be free to thoughtful discussion of been a boy. (No one re­ ambivalence about abor­ resolve." this important issue in the ported the fear that they tion or, better yet, far fewer Abortion in America is, I libertarian community. might have lost a girl.) "Ifit abortions necessary in the think, of far more value to Abortion in America adds a could have been a boy, I first place. libertarians than the shal­ useful historical perspective would have said Ivery much So eager is Francke to low treatment In The to that discussion. The Am­ wanted the child," revealed grind her own ax that she Ambivalence ofAbortion. bivalence ofAbortion adds one husband. "If she had also fails to do justice to the There is quite enough mud- little of substance.

endure them first-hand. On View World War II came home to America in literally hun­ dreds of films, and even the Hell in a Korean War (for all that it familiar place ended in a draw and had nowhere near the crusading fervor of the war against DAVID BRUDNOY fascism, or the war to end all wars that preceded the THE DEER HUNTER war against fascism) re­ invites those who stay with ceived its cinematic homage it for its full three hours to in several dozen films. witness not only the most But the Vietnam War excruciatingly realistic came into our homes every scenes of wartime atrocity night on TV. The "ad­ in recent cinema but also visors" dispatched by John the most devastating ap­ F. Kennedy quickly turned praisal of the American into an endless stream of character, and America's GIs, always with that light mores, of any but a handful at the end of the tunnel just of films made during this up ahead, always with the decade. It is a movie ofsuch promises from the leaders brilliance, such power, such that a few tens ofthousands frightening acuity, and, of troops added to those we shimmering just below its had, a few billion dollars surface, of such savage per­ more to chase after the last ceptiveness about the few billion dollars, a few weakness in our national more months, would do the experience, that ~ should trick. It worked out rather prove unbearable to any­ differently, of course. body who still delights in America withdrew in some­ the fantasy that the Ameri­ thing dubbed a "peace with can government and the changed both about what its hymns of praise, its de­ honor" by the con artist American people are one we expect a movie to be and bunkings, its trite and then in the White House, and the same. It is a film do, and about what we trashy as well as its sensitive this neat phrase masking that, once seen, cannot be think our country is or and memorable treatments. what was actually an forgotten; but if seen by the ought to be. Before television, wars ignominious retreat fol­ masses who should see it Almost every important, "lived," in a sense, only on lowed by a catastrophic but may fear to, it will leave long American war has re­ the movie screens-that is, rout and the capitulation of the viewer significantly ceived its just cinema due, lived for those who didn't the whole of the country to 47

MARCH 1979 the Northerners. "Our" I promised this for nearly nam; and the third takes us a girl who is beautiful and, Saigon became "their" Ho two years, Francis Ford back and forth to both as it happens, pregnant, but Chi Minh City. And in its Coppola'sApocalypse Now, worlds, somewhat awk­ not (and he knows this) by wake the Vietnam debacle that lumbering giant, will wardly tying together the him. Cimino has managed left a fanaticized regime in make its appearance. In the strands of the two earlier to avoid anything that Cambodia, the horrors of meantime, and unless Cop­ sections. If there is any ob­ smacks of the forced or the which have finally been pola's film can live up to the trusive artifice in the film it contrived in these opening acknowledged by even the expectations many hold for is in this final section, where scenes. He has, for that most blinkered idealists, it, Michael Cimino's Deer some of the improbabilities matter, shot the entire film such that some of those Hunter is the Vietnam era that Hollywood likes to on location, never using a who most despised the film. And so much more foist upon us as plausible studio for any scene communist Vietnamese even than that. coincidences muscle their throughout the movie. And found themselves, just re­ Cimino, who wrote the way into what has until he has peopled his wedding cently, secretly or not so story with Deric Washburn then been a flawless weave ceremony and his exuber­ secretly cheering them on as and Louis Garfinkle, has of circumstance, of cause ant post-nuptial party with they made their own "in­ directed only one previous and natural effect. But even locals, who gaily whip cursions" into Cambodia. movie, a pleasant Clint when we are asked to be­ themselves into a frenzy of But the movies have Eastwood "road" picture lieve that in the very last joyful dancing and singing made little of Vietnam. called Thunderbolt and hours of the American pre­ and who simply break away John Wayne tried the glory Lightfoot. He is thirty­ sence in Vietnam, as the from the director's direc­ route in his Green Berets, seven years old,he has helicopters were lifting off tion at some points and do almost the sole cinema ver­ studied the best work ofour the embassy roof and the what comes quite naturally sion of the conflict .. to pic­ times and in some ways soldiers were pushing away to them. After the wedding, ture it in that neat black and copied the best workers in those of our "friends' for Mike (De Niro) saunters white version our World his profession, and he has which, suddenly, we had no and then runs drunkenly War II films made so famil­ succeeded in a monumental reserve of friendship left, down the streets, stripping iar. More recently we have battle with EMI, the one ofthe protagonists off his clothing until he is seen The Boys in Company Eng1ish~based company could easily find one of the quite naked. Then the men C, notable mainly for its that put all the expectable others, tucked away ina are offfor one lasthunt, one remarkable depiction of obstacles in. the way of a back street gambling final encounter the next boot camp training, after man determined to tell his palace, it is a suspension of morning with their guns which the movie dribbled story his way, and which, to incredulity that we permit, and that favorite American away its initial power in a its credit, finally gave the owing to the breathtaking pastime of the urban pro­ fairly stock treatment ofthe young director an almost fineness of what has come letariat, killing for sport. boys once they hit 'Nam. free hand to do it his way. before. And then it is off to Viet­ Jane Fonda and Jon Voight They got him the bankable What has come before is nam for Mike, Steve, and turned in splendid perfor­ star such an expensive ven­ the guts of the American Nick. mances in Coming Home, ture demanded, Robert De way of lifelaid before us in All along, in this perfect remarkable also, this time Niro, just the man Cimino celebration and affection hour on home territory, for its sympathetic, com­ wanted, and then began the and not a little satiric ob­ Cimino has set symbols in passionate examiuation of comedy of horrors that was servation, and then an ex­ our way, symbols we do not the casualties of war, the story of this film's mak­ crutiating hour of horror in necessarily perceive as such though marred by a ham­ ing, told, by the way, in a the jungles and prisons and when we first encounter· fisted anti-war mentality splendid article in .Esquire battlefields ofVietnam. The them, some as heady as the that made seeing the picture (January 2). first hour is ·lovely, fun, ethic of the hunt itself, all too easy for "doves" and What emerged, after two cozy, and it is also dour, others as seemingly tangen­ almost impossible for years and two close brushes cold, methodicaL We meet tial as the somber, morose whatever remains of the with death by Cimino and Mike (DeNiro), Nick visit to the wedding cere­ "hawk" mentality. his lead actors, is nothing (Christopher Walken), mony of a Vietnam Green There have been a few less than a grand combina­ Steve (John Savage), and Beret veteran, and others other films, including', re­ tion of war film cum bud­ Stan (John Cazale, in his even less apparently mean­ cently, Who'll Stop the dyhood flick cum in-depth last role), and we meet their ingful at the time we first Rain, which touched the probing of the contempor­ other friends, andsdme encounter them. War only to set up the ary American system .. of women who seem inciden­ And then, instantly, a dramatic silliness once the values. Itis a film almost tal and prove to be inciden­ shift to Indochina, to the movie returned its charac­ too neatly divided into tal; we meet the men atthe central portion of the film, ters to the States; and Here three parts: the first intro- mill, at their localtaproom, shot in Thailand. The gun Come the Spartans, with .duces us to our characters and at Steve's wedding ina so "honorably" employed Burt Lancaster, a throw­ in a steel mill town sup­ Russian Orthodox church in the deer hunt becomes away item too quickly into posed to be located in west­ whose onion-shaped domes here a·pistol for Russian most towns, and too soon ern Pennsylvania (shot, ac­ and byzantine interior and roulette. Our threesome out: cheaply made but de­ tually, in several Ohio and booming choir give expres­ endure capture by the Viet­ serving more attention than Pennsylvania towns); the sion to the "simple" faith of cong, who amuse them­ it got or will likely ever get. second takes three of the the backbone of America. selves by obliging their And one day soon, we're characters to hell in that Steve, who is beautiful in­ prisoners to play the game 48 promised, as we've been now familiar place, Viet- nocence incarnate, marries with one bullet in the pistol

THE LIBERTARIAN REVIEW Nick, Michael, Axel, Steven and Stan in Michael Cimino's The Deer Hunter: "the guts of the American way of life laid before us in celebration and affection and not a little satiric observation." or be dunked in a cage set in controlled, as expertly de­ beauty, and the very that will long commend his a river, there, in most cases, vised, and as totally believ­ peripheral quality of her career to devotees of fine to drown. The experience able as the first two, no relationship to the central film. unhinges Steve and Nick, word would be too ex­ characters is a statement, Savage, the youngest of but Mike retains his poise travagant to use in lauding however muted, of the es­ the actors and thus far the and engineers his and his this film. But even where the sential maleness ofthis tale. least well known, is re­ pals' escape. The agonizing magnificence of Cimino's Cimino and his co-writers quired to undergo a trans­ killings that occupy so venture falters, still the best are telling here several formation from the naif to many minutes ofthis part of touches are outstanding. stories about America, all the mutilated, and if at the movie are so explicit We are, for instance, wit­ part of one perhaps sublim­ times his performance veers that some viewers will find ness to an impromptu ver­ inal story: our society is a just a shade too obviously them sickening. They are to sion of "God Bless sometimes 'pathetic moc­ into the histrionic, he is at be experienced only by America" that at once kery of true masculinity, most points in the movie those who are able continu­ affirms the singers' love of machismo variations we exactly right. Of Walken it ally to remind themselves their country and shouts might call it were it a ballet, can be said that he has acted that this is only a movie, or their awareness of the fail­ and woman is for use, for brilliantly on stage for years not experienced at all. ings of their government. abuse, for ritual, but she is and competently in medio­ What happens to the three Government alone commits not truly of that world so cre movies for years, and friends becomes fully appa­ ,the major atrocities of much as she is from time to never until The Deer rent to us only in the final "civilized" man's history, time allowed to be in it. Hunter has he shown on third of the movie. Michael and throughout the voyage Streep is flawless. screen what layers of talent returns in one piece, a hero; ofawakening that is the real Cazale, who knew he was pulsate beneath that Steve returns an amputee; -liunt of The DeerHunter, dying even as he made the smooth, almost ethereally and Nick returns in a box, we are led, with the charac­ movie, plays the friend who handsome, exterior. De and only after he has so ters we accompany, to see does not go to Vietnam. He Niro is, simply, smashing. If internalized the horror he wherein lie this America's is the good buddy whom today anyone has a better lived through in the prison virtues _and vices. the others tease, who candidate for the title Best that now, a deserter, he has A word or two about the doesn't quite fit in partly Movie Actor of the Ameri­ become the daring Russian performances. Meryl Streep because he can't go over­ can Cinema Now Working, roulette player at a gambl­ plays the woman who loves seas with his pals. His is a please pass it along to me. ing den tucked away some­ both Nick and Mike, and pathetic, rather than a sym­ Vilmos Zsigmond di­ where in the Saigon from she is the only female pre­ pathetic, role, and Cazale rected the photography, which the Americans are sence in the film that mat- gives it the grace and edgy which carries even this vete­ now; for the last time, re­ ,ters in the least. Though her charm it requires, and ran genius to new heights. treating. role is small, she brings to it leaves through it a testa­ The Zsigmond touch sews Were its third section as a rare force and an unusual ment to his acting talent the three parts of the movie 49 MARCH 1979 search, Box 27571, Phoenix, '8"1} AZ85061. T• • ),;. . FLATULENT? (Frequently?) LIBERTARIAN~fI~i:~~~~l:i~§~~

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featuring music. $3.50. > CLASSIFIED ADVERTISEMENTS are accepted at the discretion TEACHER-ADMINISTRA­ Onesime Piette, 320 Green­ ofthe publisher ofLibertarian Review. Ba.sic rate: 10 cents per word TOR: There are good teach­ wood Place, Syracuse, NY (minimum $3); six or more insertions: 10 percent discount; 12 or ing, administrative jobs avail­ 13210. more insertions: 20 percent discount. Payment must accompany able. Current school, college order. Address: Classified Ad Department, Libertarian Review, openings list USA, $5.95; 1620 Montgomery Street, San Francisco CA94111. abroad $4.95.EISR,Box662, UNTIL NOW, NO AUTHOR Newton, Massachusetts HAS DARED TO CHAL­ 02162. LENGE THIS ASPECT OF LIBERTARIAN PERIODICALS YOUR SELF-DESTRUCTIVE ANNOUNCEMENTS EDUCATIO~ BELIEFS. Dr. Walter Block LIVE AND LET LIVE is our demonstrates how you pay a BRAZIL: I wish to corres­ religious doctrine and the HOME STUDY COURSE IN burdensome economic and pond, in English or Por­ name of our newsletter. Free ECONOMICS. A 10-lesson emotional price by not defend­ tuguese, with any libertarian in sample issues available. Write study that will throw light on Brazil. Are you there? Write: ing such victims as the pimp, Church of Eternal Life & Lib­ today's baffling problems. Tui­ prostitute, drug pusher, slan­ Paul Miniato, 199 Stibbard erty, Box 622, Southfield, MI tion free: small charge for derer, slumlord, profiteer, loan Avenue, Toronto, Ontario, 48037. materials. Write to Henry Canada M4P 2C4. shark and scab. Now his book, George Institute, 55 W. 42nd "Defending the Undefenda­ ARE YOU FROM DIXIE? BOOKS St., New York, NY 10036. ble," has itself become a vic­ Read the Southern Libertarian tim. Although this unintellec­ SURVIVAL / COMBAT / Messenger, Box 1245, Flor­ FREE MARKET tual adventure has received ence, SC 29503. $3/yr. Self-Defense / Wilderness Liv­ LEGALIZE FREEDOM bump­ rave reviews from Hayek, ing / Guerrilla Warfare ... erstickers. Also: LEGALIZE Szasz, Hazlitt, Rothbard, Books / Manuals ... Catalog BUSINESS Hospers, Nozick, and Mac­ OPPORTUNITIES FREEDOM, VOTE LIBERT­ $1.00 ... Ken Hale (LR-100), ARIAN bumperstickers. Bride, it has been virtually McDonald, Ohio 44437. GETTHE EDUCATIONJOB White on blue. $1.25 each. banned by the nation's bookstores as too controver­ LITERARy SERVICES you want! Teachers, adminis­ Three for $3. Six for $5. Ten trators write for school, college for $7.50. Mike Grossberg, sial. So order your hardcover copy directly from the pub­ BOOK SEARCHING. First openings USA and abroad. 6400A Vioitha, Austin, Texas lisher. $9.95. 3 week money­ Editions; Scholarly Books; "Instant Alert" notifies you of 78723. back guarantee. Or send for Large, Stock: lists on request. openings in your field. Instant MILLIONS WON IN free brochure. Fleet Press, P.O. Regent House, 108 N Alert-R,15 Orchard Street FEDERAL OIL. Drawings Box 21, Brooklyn, NY 11235. Roselake Avenue, Los Angeles, Wellesley Hills, Massachusetts supervised by U.S. Govern­ CA 90026. 02181. ment. Free Brochure: Re-

together; I can think of few thing about Myers's music, can read between some very to believe that it is one with others who could come though after what he has heavy lines to arrive at a the people it ruins, de- anywhere close to matching ,been through I doubt that faintly but nevertheless praves, and murders. ~ the man's feel for the right he'll want to touch any- clearly drawn lesson: we light, the right angle, the apt thing but his much deserved are shown a nation whose LR's film critic hosts "The tracking necessary to sus­ share of the take as the box values are at variance with David Brudnoy Show" on tain a scene's mood, indeed office returns come in. its customs, also whose val- WHDH-FM (ABC) and hosts to create the mood. The The Deer Hunter is a ues are sometimes inescap­ "Nightscene" and is critic.,.at­ music, by Stanley Myers, is movie to be experienced ably perverted by and trap­ large on WNAC-TV (CBS), generally mediocre, and at both in Boston. He writes a with a mind open to troubl- ped by those customs, but nationally syndicated news­ worst irritatingly bold: if ing thoughts, with an eye whose homely values are at paper column, reviews books these things can be tinkered for incredibly vivid images, all times more worthy than for several journals, and cur­ with some dayin the future, with an awareness of the the orchestrated fanati­ rently is directing a study maybe Cimino will rethink breakthrough this film is, , cisms of the government group on the New Right at so' the scoring and do some- and with an attitude that : that would so dearly like us Harvard's-Institute of Politics.

THE'LIBERTARIAN REVIEW SII~ll~l{

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