J\lA Y 4. 1953 25¢ Nullification by Treaty The Threat to Your Constitutional Rights Caret Carrett Was Bohlen ~l Blunder? James Burnham Agony of the Welfare State Ludwig von Mises Peronism at Bay Eudocio Ravines CHARGING J&L's OPEN HEARTHS. A $ymbol of J&L's capacity for progressive, scientific steel-making is this eleven-furnace open hearth shop at Pittsburgh. In the IIheat" of today your tomorrows are born ODAY a "heat" of steel is born. In with America. For nearly everything ized. Research, to develop new steels, Ta succession oftomorrows this steel that's important to our way of life and better steels, and better ways of will be formed and shaped by the and our standard of living stems making steel, goes on endlessly. genius of American industry into the from steel. And behind it all, to shape and things that everybody wants-auto­ J&L is geared to play an increas­ guide today's operations, are J&L's mobiles and appliances, toys and ingly important role in America's one hundred years of steel-making typewriters, cans and cash registers. steel-makingjob. Production facilities experience-assurance that J&L Steel-making has to move fast­ have been expanded greatly. Plants stands ready to meet the challenge and it has to be good-to keep up and equipment have been modern- of tomorrow! .JONES & LAUGHLIN STEEL CORPORATION PITTSBURGH THE A Fortnightly Our Contributors For GARET GARRETT, who has written for various New York newspapers, including the New York Individualists Sun, the New York Times, and the Wall Street reeman Journal, was chief editorial writer for the Sat­ Editor HENRY HAZLITT urday Evening Post, and more recently editor of American Affairs. He is the author of nu­ Managing Editor FWRENCE NORTON merous books, essays, and articles on finance, economics, and politics. JAMES BURNHAM is well known to our readers VOL. 3, N'O. 16 MAY 4, 1953 both for his frequent articles in the FREEMAN, Contents and his much quoted books on Communism and the strategy we should adopt in opposing it, of Editorials which the most recent is Containrnent or Lib­ eration, published in February of this year. The Fortnight 0 0 0 0 • 0 0 0 •••• 0 0 •••• 0 ••• 0 •• 0 0 • 0 0 0 •• 545 The Korea-Formosa Leak .. 0 0 0 0 0 ••••••• 0 0 0 0 •• 0 0 •• 0 0 • 0 546 LUDWIG VON MISES is a well-known contributor The Kremlin Itself Confesses .. 0' ••••••••••••• 0 •••••• 0 547 to the FREEMAN on economic and political ques­ Wonders of World Wheat. o. 0 0 0 ••• 0 0 .000. 0 ••• 0 o •• 0 000 548 tions. Articles EUDOCIO RAVINES knows well the innermost workings of the Communist movement in Latin Nullification by Treaty. 0 • 0 ••••• 0 • 0 ••• 0 • 0 GARET GARRETT 549 America, for he was long its mos,t successful Was Bohlen a Blunder? o •• 0 • 0 •• JAMES BURNHAM 551 leader. He broke with the party in 1941, and is Agony of the W'elfare State LUDWIG VON MISES 555 now living in exile in Mexico City. His auto­ Peronism at Bay 0 • 0 0 • 0 0 EUDOCIO RAVINES 558 graphical volume, The Yenan Way, was pub­ Decline of the Rule of Law, Part 2.0 ..•• 0. of. A. HAYEK 561 lished by Scribner's in 1951. Thorez Comes Home..... 0 0 • 0 0 • 0 •••• 0 EUGENE TILLINGER 564 F. A. HAYEK conlpletes in this issue his discussion Books and the Arts of the rise of the Rule of Law and its subse­ quent and recent decline. Man as a Promise 0 •••••• 0 0 0 MAX EASTMAN 567 A Problem in Psychology 0 •• 0 ••• 00000000000 R. A. PARKER 568 EUGENE TILLINGER, foreign correspondent for Young Heroes ..... '0' 0 0 •••••• o' •• 0 0 0 HELEN WOODWARD 569 the North American Newspaper Alliance, has Deep-Damasked Wing 0 ••••••••• 0 ••• 0 •• E. MERRILL ROOT 570 jus,t returned from four months in France and Romulo-Voice of Asia ..... 0 • 0 0 0 •• 0 • 0 •• SERGE FLIEGERS 571 Western Europe. Timely Reappraisal. 0 • 0 0 0 0 0 0 0 ••• 0 0 0 • 0 • 0 • 0 0 FREDA UTLEY 572 R. A. PARKER, biographer, critic, and columnist, Television .. 0 0 •• - •••••• 0 •• 0 0 • 0 0 •••••• 0 0 0 • KAPPO PHELAN 573 has condueted extensive research into contem­ porary cults and myths. Poems To My Father... 0 0 0 ••••••••••• 0 ••• 0 0 0 RUTH PICKERING 554 E. MERRILL ROOT, the distinguished poet, has Agenda 0 • 0 •• 0 0 •• 0 •••••• 0 •••• 0 •• CANDACE T. STEVENSON 563 published six volumes of verse and several Amen 0 •••• 0 • 0 ••• 0 0 0 0 •••••••••••••••••• WITTER BYNNER 566 prose works. He is Professor of English at E'arlham College, Richmond, Indiana. From ()ur }leaders 0 ••••• 000 •• 0 •• 00 •••• 0" 0 0 ••• 544 FREDA UTLEY returned in January from an ex­ tended stay in Germany, where she collected Worth Hearing Again '0 0 ••••••••• 0 ••• 0 ••••••• o. 557 material for a number of articles and a book in progress. A regular contributor to the FREE­ This Is Wbat They Said......... ................... .. 566 MAN, her most recent article was "Germany's Dilemma," in our issue of March 9. THE FREEMAN is published fortnightly. Publication Offtce, Orange, Conn. Editorial and General Offices, 240 Madison Avenue, New York 16, N. Y. Copyrighted in the United States, 1953, by the Freeman Magazine, Inc. Henry Hazlitt, President; Lawrence Fertig, Vice President; Claude Robinson, Secretary; Kurt Lassen, Treasurer. A Note to Subscribers Entered as second class matter at the Post Office at Orange, Conn. Rates: Twenty-five cents the copy; five dollars a year in the United States; nine dollars for two years; Notification of change of address should include six dollars a year elsewhere. both the old and the new address, and should The editors can not be responsible for unsolicited manuscripts unless return postage or, be sent to: Circulation Department, the FREE­ better, a stamped, self-addressed envelope is enclosed. MAN, 240 Madison Avenue, New York 16, N.Y. Articles signed with a name, pseudonym, or initials do not necessarily represent the opinion of the editors, either as to substance or style. Please allow thirty days for the change to be­ ~ Printed in U.S.A., by Wilson H. Lee Co., Orange, Connecticut. come effective. II FROM OUR READERS II Timely Protest Why Don't You say in your issue of March 9: "What was even more ominous than the provisions of the [Yalta] agree­ ment wait the absence, at the time of You its publica,tion, of any loud or audible outcry or protest." You are wrong. The Chicago Trib­ une's protes1t was as loud as we could Stabilize make it, which is said to be tolerably loud. What you call "the normal American ability to distinguish be­ tween right and wrong, freedom and Real Wages slavery," was not "badly blurred" in Chicago. Here, for example, are the conclud­ by returning to the ing paragraphs of an editorial of February 27, 1945: The scheme concocted at Yalta is, GOLD COIN STANDARD? of course, in dIrect violation of the letter and spirit of the Atlantic Charter. It is said that those who denounced the charter as a confi­ dence game at the time it was is­ sued have no right now to cite it against the Big Three. On the con­ trary, when we and others scoffed at the charter it was not because of the principles it proclaimed, which are sound enough, but because it was evident that neither Mr. Roose­ velt nor Mr. Churchill meant to abide by them. The decision of the Yalta Con­ ference proves we were right. Chicago, Ill. LEON STOLZ THOSE of us who WO:k for a living­ During that periodl a phenomenal and who doesn't - will be restless increase in industrial productivity A Few Words of Praise and dissatisfied as long as we are partially overcame the effects of paid in dollars of uncertain and fluc­ the decline in the dollar's real value. Congratulations on your March 23 is­ tuating value. Making plans ... sav­ As an example - Kennametal, as sue. And particularly upon the "No ing to bring those plans to reality ... a tool material, helped increase Rich, No Risk-Bearing." Edward seeing dreams come true - these are metal-working productivity as muoh Hunter's "Government by the Insane" essential to human contentment and as 300%. Despite these technological also was outstanding. And much ap­ happiness. improvements real wages dropped preciated your Four Horsemen of the The foundation for security is sound far behind dollar pay. Kremlin. money_ There is only one money Friction between management and Washington, D. C. CLIF STRATTON which fills that description - a med­ workers was inevitable. The con­ ium of exchange which is freely stant cry for "more money" actually convertible to gold on demand. means "for more purchasing power" I look forward eagerly to each issue of the FREEMAN - a real American When the government seized the - to make up for the dollar's defi­ people's goldtwenty years ago, it ciency. In other words - for sound magazine. withdrew from its citizens their money ... Rochester, N. Y. INEZ ROBINSON power to control government spend­ The Presidentl some of his close ing. The·stage was set for waste and Cabinet advisors, members of the The People Pay corruption - financed by a·· flood of Senate and the House have publicly In one of your editorials [March 6, fiat currency which diluted the pur­ recognized the need for a return chasing power of the dollar. to the Gold Coin Standard:*" Why not 1953] you say: "..