June

How Walter Turnbull Inspires Self-Help at the Boys Choir of Harlem by Marisa Manley Teaching boys to rise above bad circumstances and become good men. Why Our Company Needs Immigrants by Michael C. Maibach Key contributions to American high technology. A Speculator Talks About Free Markets by Victor NiederhofJer The vital role of the speculator in balancing supply and demand. The Punitive Welfare State by Anna Sokolin A roundup of fines and penalties imposed by the heavy-handed State. Most Outrageous Government Waste by Thomas A. Schatz A billion here and a billion there-real money. Today's Fight for Property Rights by Nancie G. Marzulla A front-line report. I Was a Victim of Union Violence by Bill Hinote One man bravely defies compulsory unionism. How Government Destroys Jobs for Poor Women by Dorothea M Eiler Well-intended laws cause human misery. Lord Acton-Political Power Corrupts by Jim Powell Hold rulers to the same moral standards as ordinary people.

COLUMNS NOTES from FEE~Inscrutable Freedom by Hans F. Sennholz IDEAS and CONSEQUENCES-Lessons for Welfare Reformers by Lawrence W Reed POTOMAC PRINCIPLES~Sports Welfare by Doug Bandow ECONOMICS on TRIAL-Who Is Henry Spearman? by Mark Skousen DEPARTMENTS Perspective-Henry George How Much Do You Know About Liberty? (a quiz) Book Reviews -Do the Right Thing by Walter E. Williams, reviewed by John Robbins; War on the West: GovernmentTyrannyon America~ GreatFrontierby William Perry Pendley, reviewed by Jane S. Shaw; The New Color Line: How Quotas and Privilege Destroy Democracy by Paul Craig Roberts and Lawrence M. Stratton, reviewed by William H. Peterson; ContendingWith Hayek: On Liberalism, Spontaneous Order and the Post-Communist Societies in Transition edited by Christoph Frei and Robert Nef, reviewed by John Attarian; SpeakingFreely:The PublicInterestin Unfettered Speech, with an introduction by Edward Crane, reviewed by Matthew Carolan.

470 Answers to the Liberty Quiz THEFREEMAN IDEASON UBERTY Published by The Foundation for Economic Education Irvington-on-Hudson, NY 10533 Phone (914) 591-7230 FAX (914) 591-8910 E-mail: freeman@westnet.com President: Hans F. Sennholz Managing Editor: Beth A. Hoffman Guest Editor: Jim Powell EdiJor Emeritus Paul L. Poirot Lewisburg, Pennsylvania Book Review Editor Robert Batemarco Marymount College, Tarrytown, New York Associate Editor Gregory P. Pavlik Assistant Editor William J. Watkins, Jr. Editorial Assistant Mary Ann Murphy Columnists Doug Bandow Cato Institute, Washington, D.C. 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 Doug Bandow Cato Institute, Washington, D.C. Peter J. Boettke New York University Clarence B. Carson American Textbook Committee Wadley, Alabama Thomas J. DiLorenzo Loyola College, Baltimore, Maryland Joseph S. Fulda New York, New York 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 Edmund A. Opitz Chatham, Massachusetts James L. Payne Sandpoint, Idaho William H. Peterson AlQunctScholar, 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 10S33. FEE, established in 1946 by Leonard E. Read, is a nonpolitical, educa tional champion of private property, the free market, and limited government. FEE is classified as a 26 USC SOl(c)(3) tax-exempt organization. Copyright © 1996 by The Foundation for Economic Education. Permission is granted to reprint any article in this issue, except "Lord Acton-Political Power Corrupts," provided credit is given and two copies of the reprinted material are sent to FEE. The costs of Foundation projects and selVices are met through donations, which are invited in any amount. Donors of$30.00 or more receive a subscriptionto TheFreeman. Student subscriptions are $10.00 for the nine-month academic year; $S.OO per semester. Additional copies of this issue of The Freeman are $7.00. For foreign delivery, a donation of $4S.00a year is suggested to cover mailingcosts.

Bound volumes of The Freeman are availablefrom 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 A Powerful Case for Free Trade While Adam Smith presented the best known practical case for free trade, the most powerful rhetorical case came from Henry George in his book Protection or Free Trade (1886). Here are some of the most memorable passages: Protective tariffsare as much applications of force as are blockading squadrons, and their object is the same-to prevent trade. The difference between the two is that blockading squadrons are a means whereby nations seek to prevent their enemies from trading; protective tariffs are a means whereby nations attempt to prevent their own people from trading. What protection teaches us, is to do to ourselves in time of peace what enemies seek to do to us in time of war.

Can there be any greater misuse of lan guage than to apply to commerce terms suggesting strife, and to talk of one nation inyading, deluging, overwhelming or inun dating another with goods? Goods! What are they but good things-things we are all glad to get? It may be to the interest of a shopkeeper that the people of his neighborhood should be prohibited from buying from anyone but him, so that they must take such goods as he chooses to keep, at such prices as he chooses to charge, but who would contend this was to the general advantage? Broken limbs bring fees to surgeons, but would it profit a municipality to prohibit the removal of ice from sidewalks in order to encourage surgery? Yet it is in such ways that protec tive tariffs act. Economically, what is the difference between restricting the importa tion of iron to benefit iron-producers and restricting sanitary improvements to benefit undertakers?

Every tax that raises prices for the en couragementof one industry must operate 418 to discourage all other industries into which the products of that industry enter. Thus a duty that raises the price of lumber neces sarily discourages the industries which make use of lumber, from those connected with the building of houses and ships to those engaged in the making of matches and wooden toothpicks; a duty that raises the price of iron discourages the innumerable industries into which iron enters; a duty that raises the price of salt discourages the dairyman and the fisherman; a duty that raises the price of sugar discourages the fruit-preserver, the maker of syrups and cordials, and so on. Thus it is evident that every additional industry protected lessens the encouragement of those already pro tected. It is sometimes said that protection does not increase prices. It is sufficientanswer to ask, how then can it encourage? To say that a protective duty encourages the home pro ducer without raising prices, is to say that it encourages him without doing anything for him.

Men of different nations trade with each other for the same reason that men of the same nation d<r-because they find it prof itable; because they thus obtain what they want with less labor than they otherwise could. Trade is not invasion. It does not involve aggression on one side and resistance on the other, but mutual consent and gratifica tion. There cannot be trade unless the par ties to it agree, any more than there can be a quarrel unless the parties to it differ. Trade, by permitting us to obtain each of PERSPECTIVE the things we need from the locality best fitted to its production, enables us to utilize the highest powers of nature in the produc tion of them all. If to prevent trade were to stimulate industry and promote prosperity, then the localities where he was most isolated would show the first advances of man. The natural protection to home industry afforded by rugged mountain-chains, by burning deserts, or by seas too wide and tempestu ous for the frail bark of the early mariner, would have given us the first glimmerings of civilization and shown its most rapid growth. But, in fact, it is where trade could be best carried on that we find wealth first accumulating and civilization beginning. It is on accessible harbors, by navigable rivers and much traveled highways that we find cities arising and the arts and sciences developing.

Trade has ever been the extinguisher of war, the eradicator of prejudice, the diffuser of knowledge. It is by trade that useful seeds and animals, useful arts and inventions, have been carried over the world, and that men in one place have been enabled not only to obtain the products, but to profit by the observations, discoveries and inventions of men in other places. Wits are sharpened, languages enriched, habits and customs brought to the test of comparison and new ideas enkindled. The most progressive peoples . . . have always been the peoples who came most in contact with and learned most from others. -HENRY GEORGE Protection or Free Trade 419 THEFREEMAN IDEASON LIBERTY An ExclusiveFreemanInterview: Historian Paul Johnson on American Liberty F or friends of freedom, Paul Johnson is perhaps today's most beloved histo rian. He tells a dramatic story with moral passion. He gives readers tremendous plea sure as he celebrates liberty and denounces tyranny. "Paul Johnson," declared Wall Street Journal editor Robert Bartley, "is one of the premier wordsmiths of the English language." The New Yorker called him' 'a good writer and clear thinker." Even Foreign Affairs, pillar of the establishment, acknowledged his achievements: "A latter day Mencken, Johnson is witty, gritty and compulsively readable."