The religion of the State as outlined

by Dr. Pearson-it promises great

good, but demands proportional sacrifices;

it is omnipotent, it is never inex-

orable; it bestows benefits freely;

its use of statistics as an advertise-

ment and a liturgy

108-114

The turn of the tide-imaginary

surpluses detected. Statistical

statement of the course of collapse

114, 115

Judged by the test of finance, State

Socialism in Australia a failure 116

The time has now come to 'demand

proportional sacrifices'

117

Will the 'demand' be answered. The

earlier example of New Zealand 118

The exodus of the taxpayer; the

absentee debtor. The prayer of the

State religion has two clauses-

'Give us our daily bread, and forgive

us our debts'

119

The case of those who must remain

considered: the salaried official,

the first victims of retrenchments;

the public service discouraged 120

The people on the land, being un-
organized, their share of pillage

has been less than that of the town
dwellers, and their burden from
protective tariffs more oppressive-
on them the bill for 'proportional
sacrifices' now falls
121, 122

An awkward and disagreeable

awakening for the agricultural

class, the true workers of the

colony; their natural resentment

at garbled accounts, delusive as-

sertions as to reproductive public

works; labourers diverted from

agricultural industry by artificial

work in the towns by means of

borrowed money

123, 124

The State in its perplexity has re-

course to various doubtful financial

expedients

124

Conclusion that, financially, State

Socialism has failed, benefits have

been squandered, and the obliga-

tions of the taxpayer strained to

the verge of repudiation, new

oppressive and arbitrary taxation

has been imposed on the

dustrious, gambling has been en-

couraged, and a low tone of com-

mercial morality has grown up

in-

166

In England there are left two pos-

sible methods-State ownership

and private ownership under State

control

166

Wide ramifications of the subject 167

Objections alleged against our present

system considered and answered-

waste of competition, bloated divi-

dends a tax on trade, unwilling-
ness to make concessions, granting
of undue preference, occasional
effete or incompetent management

168-171

Arguments in favour of State owner-

ship considered and appreciated;

State should own monopolies; eco-

nomy in rate of interest on capital

due to superior credit of State, also

due to unification of management;

State would work railways for the

benefit of community 171-173

Would-be reformers unable to agree

179

as to principle on which rates are

to be based

173

The matter not to be decided by a
priori arguments but by observation
of practical experiment. Some of
the State-managed railways of the
continent the worst in the world.
Railways of Baden, Belgium, Prus-
sia, Australia
174-179
The result summed up: (1) State
management does not reduce the
price of services; (2) Management
more costly; (3) and danger of politi-
cal corruption great.
State management of Post Office
criticized.
180-185

Admitting that State railways are

undesirable, the limits and occa-

sions of State control have next to

be considered, under two heads--

(1) as affecting public safety, (2) as

regulating tariffs

186

The first of these turns on the inter-

pretation, in each case, of the old

maxim, Sic utere tuo ut alienum non

laedas. Construction of new lines,

compulsory dispossession of owners,

promoters to show that they have

sufficient prospect of financial sup-

port, publicity of accounts. Level

crossings, signalling, interlocking,

&c. .

186-190

The crucial point, however, is tariff

regulation, necessary within certain

limits. .

191

Justification of State control con-

sidered, on the ground that a rail-

way is a monopoly; that it has

acquired property by compulsory

powers; that the authorizing Act

of Parliament secured, by way of

bargain, certain advantages to the

public.

192-195

Hence maximum rates, their futility

as a means of securing free contract

and equality of charges. Difficulty

of applying the principle. . 195

The controversy as to what consti-

tutes undue preference considered

196

'Personal discriminations' unknown

in England. Discriminations

favouring special classes of goods

and special localities frequent 197

213

The property of a man in his own

person the origin and foundation

of all other property.

As necessary corollary from this

follows the right of the free ex-

change of labour and of the wages

of labour.

213

No need to discuss questions of pre-

historic title. Modern title to

property rests on legal acts of

exchange.

The influence of Free Exchange in the

economic organization of society

limited, but still operative; civili-

zation means the extension of that

influence.

215

The purpose of the paper to consider

the influence of Free Exchange as

it affects the property which the

labourer has (1) in his own labour,

(2) in his own savings

214

217

Question of savings banks; comparison

instituted between Government

savings banks, commercial banks

on the Scotch system, and co-

operative banks in Germany and

elsewhere

236

A sound system of credit developed

by banks compared to the fertilizing

waters of the Nile

237

Argument that these advantages can

be secured to the labourer by

co-operative banking. . 238, 239

Improvement in working class in-

surance under free competition 241

Controversy in the co-operative

movement between advocates of

dividend-on-purchase and divi-

dend-on-wages.

243

245

A neglected element in the co-opera-

tive theory. The most satisfactory

co-operation is the subdivision and

distribution of capital and labour

in a free market

M. Rostand's comparison of the

sterile antagonism of Lassalle to

the constructive beneficence of the

life-work of one of our English

co-operative worthies

1248