NATIONALISATION

Evening Post, Volume CV, Issue 142, 16 June 1923, Page 13

NATIONALISATION

DISTINGUISHED SOCIALIST RECANTS

WASTEFUL AND INEFFICIENT

In a striking and magnificent article in a recent number of the .American "Outlook," Mr. John Spargo, the wellknown Socialist writer, whoso works have been read and quoted the whole world over, deliberately renounces his former faith in the doctrine of nationalisation. "As a Socialist," Mr. Spargo reminds his readers, "during many years I advocated nationalisation of all mines and their control and administration by the Government, with some sort of arrangement for actual management by a body vepresentative of workers, consumers, and Government. I have opposed syndicalism and its variants, including euild Socialism, because, in the, last analysis, they all -placed a dangerous power, the control of a great basic industry, in the hands of a sroup or class, and thereby enabled that group or class, through that control, to dominate the life of the nation. It has been my belief, an important part of my faith, that a machinery could bo developed which would make it possible t* obviate this evil, and to attain essential industrial democracy." This good Socialist, in short, had dreamed of a great epiritual advance in which, a collective consciousness and iv collective conscientiousness would bo developed. DISILLUSIONMENT. Having made this open confession, Mr. Spargo proceeds to explain how his eyes were opened to the realities of industrial life. "I have to admit," he continues, "that my belief in all forms of nationalisation has been so strained that it. has become a tenuous thing at best. The collectivism of the war and post-war periods has forced mo to admit great disillusionment, to say the least. Whereever one turns for examples, the extensive experiments with nationalisation, the substitution of governmental for private or quasi-private capitalist enterprise, show no results which can be regarded as encourairins or assuring. Everywhere one sees inefficiency, waste, retrogression. Our own experiences with the railways were not entirely typical; it wa6 an episode of brief duration, and throughout there remained in force limitations which would not have endured as part of a permanent policy and thelike of which are not found in the more extended experiments of European countries. The limitations referred to operated as protective devices, they limited the amount of harm to our transportation system and to our economic lifo which the experiment could produce. .Making every possible allowance for the circumstance in which that experiment took place, I am bound to believe that the sum of the results attained can only bo regarded as a warning against further adventures in the same direction. Government operation of the railways was characterised by incredible ineptitude, by failure to make the most elementary provision for the continuous development of tlio transportation system, nud by the most wanton disregard of the larger social interests when immediate political expediency called for the sacrifice of these." These observations, it should bo remembered are applied to somo of the results following from a less rigid application of the principles of nationalisation.

AT ITS WORST.

Mr. Sparsro looks farther afield for still more impressive examples of the evils wrought by Government control. "We saw nationalisation at its worst in Europe," he declares. "Long before ihe war there was serious questioning o£ the claims made for nationalisation by its advocates. Government ownership and operation seemed to retard developmental progress. It seemed also to be Inseparable from a formidable mass of red tiipo. Somehow the institution of a frank and candid comparison of Governmental enterprise- with the most advanced capitalistic enterprise in the same country invariably showed that in the latter introduction of new methods the elimination of the old abuses, and. in general, the constant realignment of the industry or business to correspond with human necessity was much easier than in the former." These remarks apply to the war poriod._ In his desire to be absolutely fair in his examination of the problem, Mr. Spareo turns to the post-war period.

APPALLING BUREAUCRACY.

Here he finds the .abuses that have crept into the administration of industries and services, in time of peace even more flagrant than those that prevailed during- the time of war. "In Russia" he states, "as in every other country where nationalisation has been tried upon a large scale, an appalling amount of bureaucracy has resulted. The same phenomenon i s perhaps the most striking of all the phenomena, encountered by the traveller in Germany.- We saw in this country during the war how rapidly Governmental agencies grow, increasing- their staffs, and their pay-rolls, of course—and how difficult it is to cease them once they have been permitted to develop. I do not doubt for a moment that to per cent, of the employees of our Government at Washington could be -dropped with a proportionate gain in efficiency, could be, that is, wore it not for the fact that politieans fear nothing so much as the bureaucracy, which at onco serves and masters them." I 1 l-oin this the writer passes on to tho discussion of particular cases.

CONSIDERED CONCLUSIONS.

Returning to basic principles, Mr. Spargo^ makes an eloquent appeal for economic rehabilitation by tried and proved methods. "In my judgment," ha says, "any plan of nationalisation, meaning the substitution of Governmental for private enterprise, runs directly counter to the sum of-available experience. Unless I misread the signs ot the times, the great need of the world, the fundamental requisite for economic rehabilitation, i s a, vast strengthening of the capitalist system of the several countries. This requires a great strengthening of faith in the security of investments and the opening-up of all possible channels for investment in productive enterprise. It requires the development of a vast army of investors in .every country." On these points there remains to-day little difference of opinion among the accepted authorities.

A LAST 'WORD. In conclusion, Mr. Spargo sums up the whole position. "For the present, at least, I am free to say," he avers! Mat l can see no hope of anything good or useful to be attained by any such extension of tho power of the Government, and its preponderance over the economic life of tho nation as has been suggested. On tho contrary, the. sooner we can lessen tlioso powers.' reduce tlie 6izo_ oi our Governmental machine and mi jnl.crforo.nee with the economic life of Uifi nation, tho better will it 1,, v for all fl us.' Here is the moral of the whole story, a moral New Zealand well may apply to its own.affairs in these strenuous days when the known highway is the road to safety.