October

THEFREEMAN IDEASON LIBERTY FEATURES 612 616 618 624 628 631 633 637 640 645 650 654 656 658 660 665 Center 622 635 652 668 610 671 Trial by Jury vs. Trial by Judge by Bertel M Sparks A defense of one of our precious heritages. Greed and Gravity by Dwight R. Lee Self-interest as a natural force. The Foundations of Political Disarray: Lessons from Professor Hayek by Richard B. McKenzie What political leaders don't know can hurt us. Fractional Reserve Banking by Murray N Rothbard The federal cartelization of U.S. banks and the flight from sound money. Reforming Politics in the Age of Leviathan: A Skeptical View by Michael DeBow Challenging conventional wisdom about campaign finance and lobbying may be misguided. Why Is It Nature versus People? by Tibor R. Machan Environmentalists forget that man is a natural creature too. No-Brainer by Russell Madden The end never justifies the means. The Internet: New Technology, Old Law by Mark Goodman and Mark Gring Will regulation and legislation limit voices on the internet?

A Report Card on Charter Schools by Candace A. Allen Why even the best public school innovations fail. Environmental Education: Turning Kids into Political Activists by Steve Jackstadt and Michael Sanera A review of textbooks and curricula. The Devastating Effect of the Annenberg Grants by Gary Lamb The negative impact of a $500 million grant to public schools.. Economic Winners Deserve to Be Respected, Not Vilified by Mark J. Perry Their talent and effort merit our admiration. Why They're Mad by Sarah J. McCarthy The root causes of the rural revolution. The Big Apple: Cigarettes and Central Planners by Ralph R. Reiland Let restaurateurs, not regulators, make the rules. William Penn-America's First Great Champion for Liberty and Peace by Jim Powell A portrait of the remarkable proponent of religious toleration. Henry Salvatori-A Man of Integrity by James L. Doti , Putting beliefs into action.

COLUMNS NOTES from FEE-Misplaced Hope by Hans F. Sennholz IDEAS and CONSEQUENCES-The Power to Tax by Lawr.ence W Reed A MATTER of PRINCIPLE-Marketing Individualism by Robert James Bidinotto POTOMAC PRINCIPLES-Paying for Other People's Politics by Doug Bandow ECONOMICS on TRIAL-Econ 101: Do We Really Need Aqother Samuelson? by Mark Skousen I DEPARTMENTS Perspective-John T. Flynn Book Reviews •Free to Try, reviewed by William H. Peterson; The 1j;rannyofNumbers by Nicholas Eberstadt, reviewed by Julian L. Simon; The Death of Common Sense by Philip K. Howard, reviewed by James L. Payne; The Careless Society: Community and Its Counterfeits by John McKnight, reviewed by Doug Bandow; Economic Thought Before Adam Smith by Murray N. Rothbard, reviewed by Gregory :P. Pavlik; Tax Free 2000 by Murray Sabrin, reviewed by Robert W. McGee; The American Revolution Resurgent by Raphael G. Kazmann, reviewed by Robert Batemarco; Government Nannies by Cathy Duffy, reviewed by Kenneth Lloyd Billingsley.

THEFREEMAN IDEASON LIBERTY Published by The Foundation for Economic Education Irvington-on-Hudson, NY 10533 Phone (914) 591-7230 FAX (914) 591-8910 President: Hans F. Sennholz Managing Editor: Beth A. Hoffman Guest Editor: Dwight R. Lee Editor Emeritus Paul L. Poirot Lewisburg, Pennsylvania Book Review Editor Robert Batemarco Marymount College, Tarrytown, New York Assistant Editor Gregory P. Pavlik Columnists Doug Bandow Cato Institute, Washington, D.C. Robert James Bidinotto Lawrence W. Reed Mackinac Center for Public Policy Midland, Michigan Mark Skousen Rollins College, Winter Park, Florida Contributing Editors Charles W. Baird California State University, Hayward E. Calvin Beisner Covenant College, Chattanooga, Tennessee Peter J. Boettke New York University Donald J. Boudreaux Clemson University Clarence B. Carson American Textbook Committee Wadley, Alabama Thomas J. DiLorenzo Loyola College, Baltimore, Maryland Joseph S. Fulda New York, New York Roger W. Garrison Auburn University Bettina Bien Greaves Resident Scholar, FEE Robert Higgs The Independent Institute, Oakland, California John Hospers University of Southern California Tibor R. Machan Auburn University Ronald Nash Reformed Theological Seminary Maitland, Florida Edmund A. Opitz Chatham, Massachusetts James L. Payne Sandpoint, Idaho William H. Peterson Adjunct Scholar, Heritage Foundation, Washington, D.C.

Jane S. Shaw PERC, Bozeman, Montana Richard H. Timberlake University of Georgia Lawrence H. White University of Georgia The Freeman is the monthly publication of The Foundation for Economic Education, Inc., Irvington-on-Hudson, NY 10533. FEE, established in 1946 by Leonard E. Read, is a non-political, educa tional champion of private property, the free market, and limited government. FEE is classified as a 26 USC 501(c)(3) tax-exempt organization. Copyright © 1995 by The Foundation for Economic Education. Permission is granted to reprint any article in this issue, except "William Penn," provided appropriate credit is given and two copies of the reprinted material are sent to The Foundation. The costs of Foundation projects and services are met through donations, which are invited in any amount. Donors of $30.00or more receive a subscription to TheFreeman. Student SUbscriptionsare $10.00 for the nine-month academic year; $5.00 per semester. Additional copies of singleissues of The Freeman are $3.00. For foreign delivery, a donation of $45.00a year is suggested to cover mailing costs.

Bound volumes of The Freeman are available from The Foundation for calendar years 1972to date. The Freeman is available in microform from University Microfilms, 300 N. Zeeb Rd., Ann Arbor, MI 48106. PERSPECTIVE The Road Ahead Editor's Note: This piece is extracted from Forgotten Lessons: Selected Essays ofJohn T. Flynn, edited by Gregory P. Pavlik and published by The Foundation for Economic Education this month. The road we are traveling is sufficiently clear. We cannot delude ourselves with the expectation that we may go a little way further and then stop in the belief that we can combine socialism and capitalism and preserve the best features of each. The very first hard and cold fact we must face is that these two systems cannot live together in the same society. If we keep on the way we are going, nothing can save the capitalist sector of our economy from extinction, because it will inevitably be called upon to pay the cost of operating its own sector and the greater portion, if not all, of the cost of operating the socialist sector. In the United States the few Government-operated industries we have are operated at a loss. Private industry must produce the income out of which the losses of these Government in dustries are paid, and the attendant costs of Government as well.

We must arrest the course of the social disease that is destroying us and set our hands to the hard task of lifting up and revivifying our shattered system of free enterprise. If we do not, we shall go on stumbling down the path along which Eu rope has slipped. It is not possible to lay down a program in detail for checking and reversing our direction. And it is not necessary. What is necessary is to see clearly the general prin ciples which must govern our effort. These I shall now attempt to enumerate as briefly as possible. We must put human freedom as the first ofour demands. There can be no security in a nation without freedom. Let us work to make our country a more bountiful home for all to live in, but the first and indispensable test of every plan must be whether it will 610 impair our freedom. A better life for all, yes-but not at the expense of our liberties. We must stop apologizing for our capi talist society. It has made us strong, and has provided us the highest standard of living in world history.

Not one more step into socialism. There is, of course, much to be done to repair all the damage already done to our system by the advocates of socialistic measures, but the first militant maneuver must be to hold the line for the American way. Get rid of compromising leaders. Let us put a mark upon every man in public life who is willing to surrender further. We must recognize that we are in a social war, and that we must fight it as such. Our enemies have managed to capture many of the instrumentalities of the classroom, the platform, the pulpit, the movies and the radio upon an amazing scale, and to use them not for their traditional purposes but to carryon an attack upon the minds of the American people. We must put an end to the orgy of spending that is rapidly bankrupting the nation. Among the most critical conditions that menace us are the fantastic commit ments for spending countless billions and the crushing weight of our national debt upon our economic system .... We must not permit one more cent for any purpose beyond our present commitments.

We must stop "planning" for socialism and begin planning to make our free system of private enterprise operate at its fullest capacity. Since 1933 the Government has waged relentless war upon the capitalist systemat first ignorantly, but recently with a definite design to cripple and destroy PERSPECTIVE it. The man who runs a business has been pilloried as a criminal, and the Government has taken measures to prevent him from accumulating those savings which make expansion possible. It has held him up to public scorn and hatred. It has taxed away his savings, and it has so choked the streams through which savings flow into investment that our system is wilting away. Our system is in an appalling mess now, what with the public debt, the confiscatory taxes which draw the blood from its very veins, Government intrusions, and the threats of ultimate extinction that are taking ever more terrifying shape. The task calls for patriotism and courage; it must not be delayed another day.

We must set about rebuilding in its integ rity our republican system of government. We cannot depend on any political party to save us. We must build a mass organi zation outside the parties so powerful that all parties will be compelled to yield to its demands. Our forefathers gave to the world the sublime example of statesmen who cast off the tyrant State and built up the sover eign people, unleashing the energies of free men. It was this historic experiment which set off the astonishing surge of human en ergy that created here such abundance and freedom as the world has never known. The task before us is clear. For our principles of action we must go back to our Constitution, to our Declaration of Indepen dence, to our history and to the example set by our national fathers. We must begin now to dismantle the tyrant State in America and to build up once again the energies of a free people.

-JOHN T. FLYNN (1949) 611 THEFREEMAN IDEASON LIBERTY Trial by Jury vs. Trial by Judge by Bertel M. Sparks I n discussing "Trial by Jury vs. Trial by Judge" I do not purport to be discussing any new thing. The desirability or undesir ability of trial by jury has been discussed in one way or another for generations. On such a subject we could talk about the law relating to the respective functions of the jury and the judge. We could go into a technical discussion of when, under existing law, a jury trial is proper and when some other form of proceeding is proper. We could attempt to discriminate between the function of the judge and the function of the jury under existing law. For our purposes here it is sufficientto say that it is the function of the jury to find the facts in a given case and the function of the judge to interpret the law relative to those facts. If we turn to our legal history as it extends back into the Mother Country we find that at the time America was being discovered there was no clear concept of trial by jury.