found Economict -. Prerequirite to Succegr in Managed Conservation

By Kcnnah Smith

Assistcnt to President, The Pccilic'Lumber Co. Belore the onnual conference of \flestern Fore$ry and Conservation Associotion at Scn Frcncisco on December 8, 1950 i', We hlve no alternative. We either assume we ar€ -goin-g to r. coniinue-to have freedom of choice-we either keep on planning, we either continue cross-checking our experience and torward ; itrinklng at these annual conferences-or we-abandon hop-e. ---Vii f,o"' valid is that assumption today? How much chance is theii thlt we will remain free to manage-free to do what we it""-t" do about conservation? What hope have we that our plans ioi -an"gea conservation can succeed unless there is a return to leonomii-t"nity-unless we somehow arres-t our headlong plunge I into socialism?- What good the most practical managed conservation planning if our timber industry is nationalized?

Thie Conferencc has been dedicated to a discussion of "Managed Coniliviiion;'- on tt C assumption that we arc going to be free to manace-frce to do what we plan to do about conservatlon. --Ir'i-ir..- ^L.ii* anwiqionad- bv the able leaders who have ad. fii;._iil-itre planning envisioned-bv-the abte who have t,".dr;;scd thii Confe-rence rvas basLd on that assumption' . tt had to bc.

Coirosi.'e ioubt as to the end pattern of the economic and Polit- ' ical system which is evolving in America, consciously .and unt consci,ously,. afiectsthe thinking of everv.executr-v_e i1 9lI_ i1g-t:lll --i cannof imacine an audiencJ more acutely aware of this problem than the United- States members of this Association. Through most i Th. ionc continued and unabated campaign for power to regulate our indrisirv is just one facet of the "planned economy" program ' of supplanting government by taw with government by m-en, but :' it is one *. Fave seen work at closerange and understand.

', of- ihe 4l years you have been holding these Conferences our f industry hai been-resisting attempts at Federal regimentation..

,,. - Certainly, those of you. from Oregon who.have been battling in free Ameiica the coercive tactics of the bureaucrats trying to deprive you of your investment in roads do not need a blueprint of what regimentation can mean. t Or they might refer us to Sir Ernest Benn, who has said to I us: road,starting when government had- almost nothing to do with tradi, and ciding w-here all tradc is under the dead hand ot iti-St.ti. l-etica, as I understand, is about half-way rlong this road to disester. - i,tna *ttite you fortunate Americans will last-a little..longer tt an tfie tiji 6f us, your doom is also assured. if you, likc us' relv uDon politics and collective action to- relieve y-ou ot th.e ;;;m;i ind natural reiponsibilities of healthv men. For sociali;;-l;ili"iiit"-; it isa disease, The 'something for nothing' mentality is, -in fact, an economic cancer.

If any oT us had not understood before the need to stand up and fight for liberty, certainly we could have wanted no more warninc than the look we have had at the proposed super-state in the gui-se of a Columbia Valley Authority.

While our friends in Canada, who are members of this Association, can at the moment plan ahead with more assurance than we and are too gracious to point out that from theway-\ile act an objective observer could conclude we are deliberately trying to destroy ourselves, they nevertheless must understand as clearly as any of us that the one great issue which transcends in importanceevery other issue in the-world t.oday is whether coercion shall everywhere supplant freedom, whether the creeping paralysis of paganism shall psajn 9.1gulf civilization, whether here in.Americl y!9re.the seem' ii-gly illimitable light of freedom has burned brightest and d.e- i velobed the greatest nation yet on earth we shall fail to meet the ' challenge of history.

If we pressed them they might giveus a preview of what could happen to our timber industry by quoting Cecil Palmer, of London, or the methods employed by the British government, which he describes as "evil, despotic, totalitarian power," in nationalizing the British railways: '.

"First the socialist government threatened nationalization until they beat down the market priceofrailway shares. Then, having ' beaten down the price to a fraction of the railways' true value, the socialist government took the railways without paying a penny. They compelled the shareholders to accept government IOU's'bearing 3 per cent interest and payable in 30 or 40 years. Now they are moving to takeover our prosperous steel ' industry by similar shady tactics."

;'You are'in a beiter position to revers€ this mad -rush to turn perions into robots- !y meals of.the 'planned-economy' ,, and the 'welfare state.' May God Suide you in your.ucclslon"' lnilead I am going to talk to you about the most important olanninc for successful managed conservation you can posslbly dolmore-important than all the other things discussed here, because'the iuccisi or failure of alt of them hinges upon it-planning to stay free.

So, genttemen, I am sure i need lake no. time making out .a case' tEat a soirnd economy is a "prerequisite" to success in manaced conservation.

Freedom is not free. There is a price tag on liberty. That.price is indiviauat willingness to carry the responsibilities of being a free man-to act as a free man.

Wh.n -ore citizens are wilting to be wards of astate for fancied ...uiitv than are wilting to stand up and slug it out for themselves ift.n tieeao- is gone. ft will besliattered on the reefs of political expediency. - bur ltiitO faith that freedom is automatically gu-aranteed b-y the rieht to vote hasalready been so exploited by political.charlatans thit we have been rapidly voting ourselves into.slavery' tnto ab;ect dependence upon Sovernmental control of our lives' --ii-ir;; ti*?-.b.i" more important than in this confused,. almost hviieiical. oost-Korea era thaa weget it fixed in our minds for once' "ia itt tti"i it is not the right to vote 'but what becomes law that leaves us free or chains us to the juggernaut state' '-l';;";;i do tltt"t than quote here -what Admiral Ben Moreel, p.eri-ae"f.f lones & Laugtrlin Steel Company, said recently on this point: '--'--iAg"in.t the background of my-many years of service in the ' N"uu-i -ike this dlclaration: I-do not fear the Russian army .iiil"-"i6* to-t ot the hydrogen bomb nearlv.so.much,as. I fear this concept of using the law to,relieve lndlvlduals ot tne iii'o..iititltv .?ittiit .*-" welfare and to deprive them of their freedom of choice. -':'W;-;;

"ir-t"i the'danger of the militarv threat to our freedom. If we are attdcked ie will fight and we will win! But few of-us app"at to undirstand thiiinsidious process whereby *" "i. using bur own laws and our own government to destroy "o"-"*" lib"erties just as surely as if some foreign conqueror had powerover us.

"When our liberty is gone-whether because som.e- aggressor takes it from us byiorcJor because we ourselves willi-ngly vote ii "*au-.i"ilized-man will die. Men will .become robots, ma--' .lit*r"*it-ft.ti--i"0, .onttolled and driven y godless masters'"

*

Evervone in this room is familiar with the tremen'dous awakening ' .f "b;;il; -l.ia.tt in recent vears to this^ .challen-ge- and witlt ;h";;i;;;"i-bv ru"t1 organizatibns as-the NAM, the^U'S' Chamber ;"i;;;;;;",-it'i st"tJand local Chambers of Commerce,-'th6 C.E.D., many great national advertisers, .America's. Future,- Inc', ;;;dt r'"iiira"-ti." foi Economic Education' You have .undoubt' iliv'.o"i.irutid to some of that work and you should support

[4i'l:nlfiq{Ltidj;ii,tif**]:i;""}i-:;}:'firuiit9ili.;:iq':\iH::;-#',ff itr.,?r*.ff'; ic,i--ii8 ;dh-ihilt;J mess rctlini, Mcn and womcn have rold one at e time. ,Onc pcrgon can only wait on.onc 9erton * lfi'.: X-*;.rrieti-iiiit otity-lui oni vecudm cleanci And m.cn If we look at Humboldt County, the larscst lumber erg-ducltg. tgolncn_-rrc only going to be resold on.the,lT!l-i.1n-^I1l,DV county in Cahfornia, b.ut relatively. poor as..cor.n-D_]r-cd_rYltl#E rlii"-r'jfiil:iiiin-iJ'--in:ina uf secing it dcmonrtratid.- iY'lnli'*. h;;'ill-il piiiuiJ.-ii..iiiring o".' thc hcids of itr.648{ tc realon l-iec in rimDle and obvious fundamenta-ls that cvcry citizcns ia $115.341,000 of Fedcral debt, yet- thc asscascd vlluc or ,.naniier liver by. ile.knows.that.thc world-doe.s look flat Ji itr-{p1^"nirty in'thc County is only a littlc over helf '3r mu-chlllj.ii'it":Hoolti: t:"!'#"311'ilr"iJ"lll*,.llft"kifiiJii: *ti,Y'Sl;t bonded inrrebtedless or.the..county is.gr,833,0n), vet s 'r't Er!" i'ini-on-3iiit,i;i !a ia iireeetl" the faith.' t"ii,i'lliir inrlebtedness of the- -countv is.$1,833,0fi), ! rcrron Church belle [,.-HJ tnows that wc "qry,1-nt" end "buy" what- hts been."aold" its-ciiize;s- r"uii pay $2,307,000 ($l million more) Per year tor itrs. rnd thrt thc job has to be :donc ovcr and over again' tle tlcir share of the interest ort the federal debt' 5il'.iiil'"t.i?'t;;d;,iii-.til'"iJ;i'td"i.-io down a tree 39 "'you can easity catcutat."ii'til,Ji;";i-oiyoq' own communitv trif a-o ii. aiti v"" ti,iti nrii no*ini you can sly will provoke as much sefious thouight. , . , i:,- '--Wft; we begin to. tike that kind of. look at what 4 $260^bitli?tl' 'Thc great crying nced is for the tens of thousands.of men like O.fri'iii.itr *i1i"-.t*iiv iii ttt"t we ha-ve to stop going into.debt 'ou anii me to hammer out for ourselves our- own-.philosophy .ot ind start retting out of debt,and to understand that the waste ol you hainmer for. own..philosophy .ot .ia.t getting to .unders.tand inai"ia*tii;, to decide preciselv ryh.at rye do. believe a,nd.ryfv *"-r iatr b-e ieplaced only by the-patient- toit.of our citizens' iii.ii-ttri pti,biemi of governmeit debt,. atodt infation, about the "Tf *" *it.-itrinling ttraiight about what this $260 billion deb,t ifttrt-tir-*5rt, a-Uout riik capital, aboutjobs, about social secur.ity, n,".ur'it *outA be aToi har?er for demagogues to get- away with afiout price control,--about wage levels, about. confisc.atory-tal"Jlgll n.1t only paying nothing o.n this- debt but increasing.,it-f-o_r unes-

Itil;-;F;-;;;biimi governmeirt debt,.atodt-infation, Sbout "Tr wite-itinting ttt"ilt,t ]frtrt-tir-*5rt, secur.ity, get 'iUJ"i itii-ii.t.tr.dttia money-and-above all-about governmental t.titi"i'-i*rl.iJi;ut;; in'a time of boom business conditions. lin-tciicntioiiism, and then ma[<e a per-sonal con-tribution of our own --ln-"aaiii." to that, such an approach to.clarifying debt auto- jintCrvCntionism,and make personal conrrlDutlon er uul uwrr ln addition approacn to-clarlrylng _rrcul auruiiiti ""a enetgy to the saving of the freedom of opportunity system' "riii.Jiv ieads to developmerrt ol ,equally clear and effective ex.'il-;;;ili"; 5i,r oo,n empl6yees and our. own neighbors on our ;;i;;;ti;;t ;i-whv printing and stuffing the ,banks with bonds that tpirr p*.."]"1 faith and beiief in the Anrerican way' --, --1!- - :- Ii" ".i .*.tt"ngid-fot nr6ney. already-save.d h.as exactly l!9,-1"T: fThJ,-e"i-s';;';ii;r-;t-io-saieguird _our -freedoms. Salvation is "k'".i"ir-it-ifir'g irr.'riii"iv"ln ouibo"t.rc, in savingi banks,. in Oeiriii"l.--W; Mt; to live up_ttour beliefs and we have to sell i;;;.-,;"d il-ti% insurance worth less as the printing 1nd qagsinq iltiem pirsonally. We cannot buy eco4omic literacy' of counterfeit nroney. (Which is one quick way to start explaining * inflqtion.)

That l6ads to dispelling illusions alout the tickets called mor€Y, r: Too many of us, far too many,don't know precisely what we do "b;;-f-p;fits, "t oui .the'difference between voluntary investment believe, or why. w. *Jit'ii;'i;J';'A' ;ril'['iiJ-iitti;:-- . - ;;,0-t^",-'.:g'l;,"^ltll-'ll::9,.11.,^:l1ti:" lj-:1i'::'"1l3rtJo"';"J;.,r"u. o'{lf:';,""'"iinl;" Y;":",t f:f,.}3',1i,'l;ll'i', ',"""-.'i'Jl3u,. "na ,o ""fl.',T",:fl.':"r::i';i'il"t'ir'ili"'i1"il_;i.;ii;:;;;hi-b-e ia'inea. ct."r't6- "t -ttrouta Ue understood by everyone' We may be even * resentful that we have to defend the right' L '-iluJ';h";'Ir jrit'llvir-"t-*. tt"ti to do"if we are to win the fight Libcrty is not divisible. Lose economic liberty-become a slave t --We must sornehow prove to them that-the marvelous acconl- Now the right 6f a pe.son to the product of his own labor.is ofiiirit"iilr li A-..i." -we so blithely take for granted are, in fact, tr"iii-'irl.--i"r"-a"iiu" '""a ttr" keystoni o-f economic lib-ertv. The ili;l;r;il;a; ioi* oigo".rnment thit left men free to do their own ii.t"iiirt.'ti. State takes on" p.nny more -of the -product of his labor ;i;";ir;; "nd tttat a 'iplanned economy" .must of necessitybe ruu i;;; hi- by forcc or the thriat of force than is necessary to ' [u "-*.i,i.it-ent thit keepr tn.n from doing what the-y plan to do. ."rir "" rtt"'esserrtial functions of government, then to- that -extent -tt i3 not enough just to say "I think" or "I believe"' ttie Statehas made him its slave, by depriving him of the liberty ', ii vlu-"ti goi-ngi" do vorir share,of this job of competing with ,i-trt.taittg 1tis own earnings as he-might please' those"*'ir" urE tuEt er baii wrapped in a pink cloud to sell collec- ''pii"r-i.-tSi7 ili gou.rn;ent took leis than 10d of the income ;i;i;; ;;; musi wort o"i iot vburself eisily understood, conrm-on doll;r.- tn tt,. t*"ntiis ii *is l2%Q and we were reducing the dpbt t"tii.-.ipt"ritions of what you ihink and why about these complex iir-.w;;d in World War I. Now it is 3ld out of the greatest total ' qriiiiorr. rtmishtbe herprur to explore (to the extent.time petmits) some Hi:;*J*tJ* n::-.':.H',3i,i ?io,;:'u?:i'Jt*Xi:Iil::?'it"l!"; of the -possible ways of achieving a clear -understanding ot these irrf i'. lower the incometheharder it is hit by hidde-n ^taxes.^ 'fhe qit.'ribti marks. Suppose we take a whirl at two of the major iiiaAi,"- ii*.. ,"n t".t'v.ii-to the amazing iotal of .$781.82.per questions-taxes and debt. ,-, 4zt L:t,t^_ ianrily. They are hidden awal'_i-n the price of everything w-e Duy. ' --itt"-lia"ril debt will probablv be between 263 and' 264 billion ril" t"* F6unrlation ti"..a iSO taxes'levied on the manufacture dollars by this time next year. ;;;i.;G of a wonran's hat, ll5 on a suit of clothes,,502, on a pair --iii.

I foi men's minis. to the Siate-and you ultimately lose all liberty.- .

"'."* so incomprehensiblv large that it is alnrost impossible ;i;h;; ;;d .i iea.t 100 oit " dot.n eggs. We-,14v 7ltl6 ^tax.when tfl.'r:"t"&yolr11i:"ff3ff '.t.to mention the man on the street, I"'oo"ti,?$giiu";t".+5366t1T;. $2'06 on a.$3'7s bottre oi whrskev 1i underitand that in ".t*iitv t-ftit-.o"iiiiut.t "n invisible first mort- When it is all added up we are on the average w-orking 3Y' '+8; g"gi "p"t-"ii of the- real-possessions in this count-ry equal in amount ,-r.ror,i6.r'for ioc"i, state and federal government ind 8% months ,ii io"appio*imately 65% of-every dollar--of realand personal.property for ouiselves. that^hasbeeniccumu1atedinthe450yearssincethewhiteman_Dowewanttoworkyetmore-daystrext.year?Andmorethe arrived. -, L--r :^ :- :+^ "."t, "r ihey already do in Englan'd. Or would it be more-intelligent I Debt, whether evidenced bv.39 IOIJ,, no_te, or bond, is in its i"-.i].*f-i"i"" ol thor" a"v. frifrri"g to reverse that trend? 'fundamental essence just one thing-it is a pr-omise to pay out of the proceeds of woik to be performed in the future' * a

If I^touch you for 20 bucks until payday we both understand ,-:--- rL-^..-L that I am undertaking to pay it back out of what I expect to g_et The Federal Government is goin-g-thlo^ush,.$42/$44 -!i-[io.1 ler' paid for work that r .#s[]is"t."??ii"ir'I'future. But, when the y"t;-!g;.,_?ldne;1 v.u' it'*itti.-$:55/$60 6ittion. In 1930 it was' ' government-that far-off creature that we forget is just all of us- 'q1iy $+ tiirii.*. rh.re-^r. z,ioopoo'te*b"t..t'o"*'itt""p"viori no*' '""borrows g260 billion, we do not seem to una'.."ii"'a lt it tt.re is iir;;t'! 1;V" yiirio" .-o'e Jl,rt ii, 1?39: Tlf. t?f:t-y-? t.1t t.:jil .l trr""-Ezo0'blttion clollars, vet the 32 Presidents, from Wash- i'

UUtIUWS .P4UV urllrUrrr w no way on God,s."rtn inJiii-;il;;;. b. t;i;-;E ";."* ty t"9rr. arc highli by a. billion dollars than in 1945, the peak war Jrear' ,', -except by each "nA e""ry worker in the nation f-i-"ii-tg 6n less And 10 timei what thev were in 1930' thanheearnsandputtiigu,pi;-i;;';";;gh--top"ybot!rinterest-sl"ceih"-'',in1ess-th-an5years,this1'dministrationhasspent on the debt and running expenses of the goverment plus some "roi.