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  • J\lA Y 4. 1953 25¢

    Nullification by Treaty The Threat to Your Constitutional Rights

    Caret Carrett

    Was Bohlen ~l Blunder? James Burnham

    Agony of the Welfare State Ludwig von Mises

    Peronism at Bay Eudocio Ravines

  • CHARGING J&L's OPEN HEARTHS. A $ymbol of J&L's capacity for progressive, scientific steel-making is this eleven-furnace open hearth shop at Pittsburgh.

    In the IIheat" of today your tomorrows are born

    TODAY a "heat" of steel is born. Ina succession of tomorrows this steel will be formed and shaped by the genius of American industry into the things that everybody wants-auto- mobiles and appliances, toys and typewriters, cans and cash registers.

    Steel-making has to move fast- and it has to be good-to keep up

    with America. For nearly everything that's important to our way of life and our standard of living stems from steel.

    J&L is geared to play an increas- ingly important role in America's steel-makingjob. Production facilities have been expanded greatly. Plants and equipment have been modern-

    ized. Research, to develop new steels, and better steels, and better ways of making steel, goes on endlessly.

    And behind it all, to shape and guide today's operations, are J&L's one hundred years of steel-making experience-assurance that J&L stands ready to meet the challenge of tomorrow!


  • THE

    reeman Editor

    Managing Editor

    A Fortnightly





    Our Contributors GARET GARRETT, who has written for various New York newspapers, including the New York Sun, the New York Times, and the Wall Street Journal, was chief editorial writer for the Sat- urday Evening Post, and more recently editor of American Affairs. He is the author of nu- merous books, essays, and articles on finance, economics, and politics.


    The Fortnight 0 0 0 0 • 0 0 0 •••• 0 0 •••• 0 ••• 0 •• 0 0 • 0 0 0 •• 545 The Korea-Formosa Leak .. 0 0 0 0 0 ••••••• 0 0 0 0 •• 0 0 •• 0 0 • 0 546 The Kremlin Itself Confesses .. 0' ••••••••••••• 0 •••••• 0 547 Wonders of World Wheat. o. 0 0 0 ••• 0 0 .000. 0 ••• 0 o •• 0 000 548

    Contents VOL. 3, N'O. 16 MAY 4, 1953 JAMES BURNHAM is well known to our readers both for his frequent articles in the FREEMAN, and his much quoted books on Communism and the strategy we should adopt in opposing it, of which the most recent is Containrnent or Lib- eration, published in February of this year.

    LUDWIG VON MISES is a well-known contributor to the FREEMAN on economic and political ques- tions.


    Nullification by Treaty. 0 • 0 ••••• 0 • 0 ••• 0 • 0 GARET GARRETT 549 Was Bohlen a Blunder? o •• 0 • 0 •• JAMES BURNHAM 551 Agony of the W'elfare State LUDWIG VON MISES 555 Peronism at Bay 0 • 0 0 • 0 0 EUDOCIO RAVINES 558 Decline of the Rule of Law, Part 2.0 ..•• 0. of. A. HAYEK 561 Thorez Comes Home ..... 0 0 • 0 0 • 0 •••• 0 EUGENE TILLINGER 564

    Books and the Arts Man as a Promise 0 •••••• 0 0 0 MAX EASTMAN 567 A Problem in Psychology 0 •• 0 ••• 0 0 0 0 0 0 0 0 0 0 0 R. A. PARKER 568 Young Heroes ..... '0' 0 0 •••••• o' •• 0 0 0 HELEN WOODWARD 569 Deep-Damasked Wing 0 ••••••••• 0 ••• 0 •• E. MERRILL ROOT 570 Romulo-Voice of Asia ..... 0 • 0 0 0 •• 0 • 0 •• SERGE FLIEGERS 571 Timely Reappraisal. 0 • 0 0 0 0 0 0 0 ••• 0 0 0 • 0 • 0 • 0 0 FREDA UTLEY 572 Television .. 0 0 •• - •••••• 0 •• 0 0 • 0 0 •••••• 0 0 0 • KAPPO PHELAN 573


    To My Father ... 0 0 0 ••••••••••• 0 ••• 0 0 0 RUTH PICKERING 554 Agenda 0 • 0 •• 0 0 •• 0 •••••• 0 •••• 0 •• CANDACE T. STEVENSON 563 Amen 0 •••• 0 • 0 ••• 0 0 0 0 •••••••••••••••••• WITTER BYNNER 566

    From ()ur }leaders 0 ••••• 000 •• 0 •• 00 •••• 0" 0 0 ••• 544

    Worth Hearing Again '0 0 ••••••••• 0 ••• 0 ••••••• o. 557

    This Is Wbat They Said......... . . . . . . . . . . . . . . . . . . . .. 566

    THE FREEMAN is published fortnightly. Publication Offtce, Orange, Conn. Editorial and General Offices, 240 Madison Avenue, New York 16, N. Y. Copyrighted in the United States, 1953, by the Freeman Magazine, Inc. Henry Hazlitt, President; Lawrence Fertig, Vice President; Claude Robinson, Secretary; Kurt Lassen, Treasurer.

    Entered as second class matter at the Post Office at Orange, Conn. Rates: Twenty-five cents the copy; five dollars a year in the United States; nine dollars for two years; six dollars a year elsewhere.

    The editors can not be responsible for unsolicited manuscripts unless return postage or, better, a stamped, self-addressed envelope is enclosed.

    Articles signed with a name, pseudonym, or initials do not necessarily represent the opinion of the editors, either as to substance or style.

    ~ Printed in U.S.A., by Wilson H. Lee Co., Orange, Connecticut.

    EUDOCIO RAVINES knows well the innermost workings of the Communist movement in Latin America, for he was long its mos,t successful leader. He broke with the party in 1941, and is now living in exile in Mexico City. His auto- graphical volume, The Yenan Way, was pub- lished by Scribner's in 1951.

    F. A. HAYEK conlpletes in this issue his discussion of the rise of the Rule of Law and its subse- quent and recent decline.

    EUGENE TILLINGER, foreign correspondent for the North American Newspaper Alliance, has jus,t returned from four months in France and Western Europe.

    R. A. PARKER, biographer, critic, and columnist, has condueted extensive research into contem- porary cults and myths.

    E. MERRILL ROOT, the distinguished poet, has published six volumes of verse and several prose works. He is Professor of English at E'arlham College, Richmond, Indiana.

    FREDA UTLEY returned in January from an ex- tended stay in Germany, where she collected material for a number of articles and a book in progress. A regular contributor to the FREE- MAN, her most recent article was "Germany's Dilemma," in our issue of March 9.

    A Note to Subscribers Notification of change of address should include both the old and the new address, and should be sent to: Circulation Department, the FREE- MAN, 240 Madison Avenue, New York 16, N.Y. Please allow thirty days for the change to be- come effective.

  • I look forward eagerly to each issue of the FREEMAN - a real American magazine. Rochester, N. Y. INEZ ROBINSON

    A Few Words of Praise Congratulations on your March 23 is- sue. And particularly upon the "No Rich, No Risk-Bearing." Edward Hunter's "Government by the Insane" also was outstanding. And much ap- preciated your Four Horsemen of the Kremlin. Washington, D. C. CLIF STRATTON

    The People Pay In one of your editorials [March 6, 1953] you say: "... The Secretary of Agriculture's decision to continue the support of dairy produc;ts at 90 per cent of parity may cost the govern- ment about 100 million dollars in the year starting April 1."

    Did someone slip in your office? ... The point is that nothing costs the government anything;' The cost, what- ever it may be, is paid by individual citizens and by rio one else. Whether it be the government, a corporation, a trade union, or any other form of co- operative effort, the cost is always borne by individuals. It is by forget- ting this for a moment, or ten minutes, or an hour, now and again, that men aoting in the name of government or in the name of some other organiza- tion toss heavy burdens on the people. New York, N. Y. MURRAY T. QUIGG

    Timely Protest You say in your issue of March 9: "What was even more ominous than the provisions of the [Yalta] agree- ment wait the absence, at the time of its publica,tion, of any loud or audible outcry or protest."

    You are wrong. The Chicago Trib- une's protes1t was as loud as we could make it, which is said to be tolerably loud. What you call "the normal American ability to distinguish be- tween right and wrong, freedom and slavery," was not "badly blurred" in Chicago.

    Here, for example, are the conclud- ing paragraphs of an editorial of February 27, 1945:

    The scheme concocted at Yalta is, of course, in dIrect violation of the letter and spirit of the Atlantic Charter. It is said that those who denounced the charter as a confi- dence game at the time it was is- sued have no right now to cite it against the Big Three. On the con- trary, when we and others scoffed at the charter it was not because of the principles it proclaimed, which are sound enough, but because it was evident that neither Mr. Roose- velt nor Mr. Churchill meant to abide by them.

    The decision of the Yalta Con- ference proves we were right.

    Chicago, Ill. LEON STOLZ


    During that period l a phenomenal increase in industrial productivity partially overcame the effects of the decline in the dollar's real value. As an example - Kennametal, as a tool material, helped increase metal-working productivity as muoh as 300%. Despite these technological improvements real wages dropped far behind dollar pay.

    Friction between management and workers was inevitable. The con- stant cry for "more money" actually means "for more purchasing power" - to make up for the dollar's defi- ciency. In other words - for sound money