SOCIALISM.

Lyttelton Times, Volume CXXIII, Issue 15862, 27 February 1912, Page 8

SOCIALISM.

TO THE EIUTOH

Sir, —T notice that “ Interested ” wants information on certain points. “ The millions that Socialists rave about are the savings of generations.” AVell, I would just like to refer “ Interested ” to a Pross Association telegram that appeared in the "Lyttelton Times” a few weeks ago, to the effect that “the United States Steel Trust of America during their last financial quarter (three months) had made a net profit of 25,000,000 dollars ” ; flvo million pounds profit in threo months. As regards capital making capital, there is no mystery about it, but to some people it is a fetish. I wonder if “Interested” ever heard of Adam Smith, author of tlio “ AA’ealth of Nations,” one of the earliest writers on economio science and one of the greatest. Referring to capital, he says: “To say that money makes money fs just as foolish as to say that nails make nails.” Money of itself cannot create more money. AVell then, how does it come about that tho man or woman who can invest, say, £SOOO, can draw at the end of every year the sum of perhaps £250? The investor has done nothing but “invest” his capital, and seeing that -wo must agree that money itself cannot make money, how is the magic brought about? What is the mystery r

AA r e have to fall back on our friends once more, Labour and Nature, the source of all wealth. To take his illustration, A and B. Suppose B had accumulated £2OOO, It would be of no use to him unless he could “invest” it-. Suppose “Interested.” happened to be shipwrecked, and finally found himself landed on an island with nothing but tho clothes he stood in and his pockets bursting full of gold sovereigns, and then found out he must die of thirst as there was no drinking water procurable; but finally he discovered there was another man on tho island besides himself. This man previously had been shipwrecked, but all he had when ho was cast on the island was a spade. AA r ith this he had dug a well. Now who would be the richer man in this case, the man with his pockets full of gold or the man with the spade who had dug the well? I hope “Interested” can see the moral.—l am, etc., TOUCHSTONE.