June 13, 1919] 



SCIENCE 



553 



relation to both of these, and grains coal, 

 metals etc., upon the market, are a combina- 

 tion of natural resources and human labor. Of 

 course ultimately the medium of exchange 

 should be determined and regulated interna- 

 tionally, not nationally. 



In merely taking our most valuable abun- 

 dant metal as a medium of exchange, as now, 

 we are following without effort an old custom 

 and are making no attempt to have our me- 

 dium of exchange conform to the needs of 

 society. Instead of attempting to solve the 

 problem, we are accepting failure, and almost 

 all men, because accustomed to this unsatis- 

 factory medium, accept it without question. 

 Conservatism versus reason. The blunder in- 

 volved is one of the serious financial mistakes 

 in our socio-economic system. We can all 

 realize in these days the difficulties that come 

 when the value of the dollar and the value of 

 other things part company, and the purchas- 

 ing power of our incomes is decreased by a 

 third or more. 



Another, more serious, economic error is 

 the permitting of private ownership of laxd 

 ANT) OF NATURAL RESOURCES. There are two 

 sources of wealth, natural resources and hu- 

 man labor, and the labor is wholly dependent 

 upon the natural resources and can not exist 

 without them. The foundation of life is 

 therefore the Earth and its products. The ab- 

 surdity of our present system is seen in the 

 fact that it allows a Super-Rockefeller to own 

 the whole Earth and in consequence to own its 

 inhabitants, involving thus a super-form of 

 slavery. There could be no greater economic 

 blunder than this, for it involves the very 

 foundation of human society. Fortunately 

 the facts are recognized by some of our keener 

 economists and somewhat hopeful attempts 

 are being made to withdraw from this absurd 

 plan of economic organization and get upon 

 a basis that will recognize that the earth 

 belongs to all men and must be preserved to 

 them and for them. The fact that withdrawal 

 from a false system involves the greatest diffi- 

 culties is no sufficient reason for giving up 

 the problem. 



Our economic life has become so complex 



that INDIVIDUALISM in large scale industry is no 

 longer reasonable. Over 90 per cent, of all men 

 who engage in business fail at some time in 

 their lives. The great percentage of failures 

 shows the enormous risks in industry. There- 

 fore the rewards to successful capital must be 

 made proportionally great. Society pays dearly 

 in the first place for the failures, and then she 

 has to pay unreasonably for the successes. Cap- 

 ital can not be led to take the great risks 

 without inducements adequate to the risks. 

 The present industrial system is clearly un- 

 satisfactorj-. Society must find some way to 

 relieve industry from these great risks and 

 must then organize the rewards ujxin a more 

 reasonable basis. There are two most funda- 

 mental changes imperatively demanded in 

 our economic system : the first is public con- 

 trol of land and natural resources for the 

 benefit of all mankind; the second is such 

 organization of essential industry as will allow 

 society itself to carry at least the major part 

 of the risks of failure. In this way the risk 

 of failure would be greatly decreased, also the 

 cost of industry, in the form of the returns to 

 the successful, would be greatly reduced, and 

 (probably most valuable of all) there would 

 result a better balanced human community 

 with less economic contrast between the ex- 

 tremes. It is futile to attempt to dodge solv- 

 ing this difficult problem. We must come to 

 it eventually. Why not approach it now? 



The real problem here is to introduce into 

 all social effort the same spirit of putting the 

 job through for the sake of the country and 

 tlie world, which we have seen so finely ex- 

 emplified in the war effort of our soldiers and 

 of our people at home. Xot only we, but all 

 of our allies, have thrilled with this spirit of 

 devotion to country and to the service of all 

 the world. The perpetuation and strength- 

 ening of this same spirit and its introduction 

 into all the life of the people is the real goal 

 in the social reorganization which we seek. 

 I'nder the present system of industry labor is 

 lirone to feel it is working not for the gen- 

 eral good, but for the profits of capital. A 

 spirit of selfishness and unwholesome rivalry 

 is thus encouraged. Society can never ap- 



