36 



SCIENCE 



[N. S. Vol. XLVII. No. 1202 



the United States. Also it has been dem- 

 onstrated that in manj' directions, under 

 the system of cooperation, efficiency and 

 economy have been very greatly increased 

 and unnecessary wastes reduced. With 

 the mighty burden of the war debts upon 

 us it will be absolutely necessary to con- 

 tinue this efficiency and economy. There- 

 fore in advocating the continuance of the 

 use of the principle of regulation for those 

 fundamental commodities essential to the 

 very life of the people or in the legal phrase 

 vested with a public interest, I believe I am 

 advocating the policy by which we may es- 

 cape government ownership and operation. 

 For my part I am very reluctant to see 

 the management of the industries of the 

 country fall into the hands of a govern- 

 mental bureaucracy. The emergency situa- 

 tion, due to our unpreparedness, when we 

 entered the war, was met in large measure 

 by the voluntary service to the government 

 of thousands of our ablest men from busi- 

 ness and many other walks of life. Under 

 the extraordinary stress of the nation, in- 

 cited by highly patriotic motives, they have 

 left their private affairs and have taken 

 positions wherever the country called. 

 Their service is unbought. They are ex- 

 erting their utmost energy for our country, 

 and this will continue during the period of 

 the war. But when the war ends, they 

 will rightly return to their own affairs. 

 They will not become a permanent part of 

 government bureaus. 



Heretofore agriculture, industry and 

 commerce have been under the leadership 

 of able men who have reached their posi- 

 tions as a result of the competition of abil- 

 ity. The citadel of defense of private 

 property is that the system develops initia- 

 tive and energy. These qualities give large 

 rewards to the men possessing them. The 



central point at which private property is 

 attacked is that strong men use their pow- 

 ers for their own ends. The captains of in- 

 dustry have too often exercised their con- 

 trol without sufficient regard to the public 

 interest. 



What I am proposing is that property 

 remain in private hands and that excep- 

 tional initiative and energy have excep- 

 tional reward, but that so far as business 

 and industry are vested with a public in- 

 terest they be subjected to regulation. 

 Under this plan, those who controlled vast 

 properties would necessarily exercise that 

 control with due consideration for the 

 masses of the people. 



We should then have both the advantages 

 of private property and the protection of 

 the public. Should not this plan, both for 

 the utilities and the essential commodities 

 vested with a public interest be thoroughly 

 tried out before we place the control of pro- 

 ductive industry and commerce in the 

 hands of governmental bureaucracies? 



The Extent to which Regulation should he 

 continued 

 In advocating the continuance of regula- 

 tion after the war, I do not mean to imply 

 that all the existing measures shall be re- 

 tained in their present forms. It is yet too 

 early to suggest a program in regard to the 

 extent which this should be done. What I 

 am advocating is that we maintain the 

 principle that the essential commodities 

 are subject to control in the public interest 

 precisely as are the utilities. That prin- 

 ciple recognized, regulatory measures 

 should be continued only as far as neces- 

 sary to meet the existing world conditions. 

 In the further development of the policy of 

 regulation we should proceed cautiously as 

 occasion arises precisely as we did in the 

 control of the public utilities. 



