LETTER TO COLONEL STANLEY J. GROGAN FROM LAWRENCE

• Document Type: CREST
• Collection: General CIA Records
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• Release Decision: RIPPUB
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• Document Creation Date: December 15, 2016
• Document Release Date: October 17, 2003
• Sequence Number: 16
• Publication Date: April 30, 1962
• Content Type: LETTER

LAWRENCE SULLIVAN
COORDINATOR
STAT
Approved For Release 2003/11/04: CIA-RDP80B01676R002800250016-0
U. S. HOUSE OF REPRESENTATIVES
COORDINATOR OF INFORMATION
WASHINGTON, D. C.
April 30, 1962
Dear Stan:
Mass famine in China marks the Collapse
of world communism. Russia is not in famine, but
is vastly undernourished. Cuba is in famine.
This round-up summarizes public and
private intelligence reports over the last eighteen
months.
Communism simply can not deliver the goods!
It is tragic, I think, that the facts on communist
agriculture cannot be presented generally in America.
Cordial regards.
Colonel S rogan
Sincerely,
./14-141"--67
LAWRENCE SULLIVAN
Coordinator
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What Is Austrian Economics?
REV. I. E. HOWARD
w
SSTUDENTS of freedom are indebted to
Mr. Frederick Nymeyer for having.
made available several publications of the
Austrian school of economics, the last
one being Shorter Classics of Eugene von
Biihm-Bawerk.* Austrian economics is
particularly relevant today because it fur-
nishes a penetrating analysis and devastat-
ing answer to Marxism. Austrian econom-
ics is also noteworthy for having corrected
the errors of the English classical school
and for having rescued their deductive
method from the cheap skepticism of the
German historical school of economics.
The Austrian school was pioneered by
Karl Mengel- of Vienna (1840-1921). ex-
panded by Friedrich von Wieser and
brought to a climax by Eugene von Bohm-
Bawerk (1851-1914) who had the dis-
tinction of not only being a professor of
economics, but also Finance Minister of
Austria. At present, the leading exponent
of this school of economics is Ludwig von
Mises at New York University.
The Austrian criticism of government
intervention is much needed at this junc-
ture of history, but the heart of the Aus-
trian system is the theory of marginal
utility. For the serious student, Shorter
Classics of Eugene von Bohni-Balverk will
provide an excellent introduction to both
of these aspects of the Austrian school of
thought.
In Shorter Classics, Eugene von Bohm-
Bawerk applies the theory of marginal
utility to several practical problems, in-
cluding wage determination. Wages in a
condition of free and perfect competition,
he explains, would be determined by the
value of the product which the last, most
easily dispensable laborer of any given
type produces for his employer. His wages
cannot go higher, for if they do, the em-
ployer would gain no advantage by em-
ploying this "last" (marginal) laborer and
the employer would prefer to reduce the
number of workers by one. Neither could
the wages he substantially lower for in that
case the worker would produce a substan-
tial surplus gain and there would be a
strong incentive to add another worker,
or workers, until the margin was reached
in which the last worker barely justified his
employment. Wages are determined by
this margin.
For the modern reader, the effect of
labor unions on this analysis immediately
becomes a major question. Bohm-Bawerk
deals with this in Chapter 111 of Shorter
Classics. "Control or Economic Law?" He
does not dismiss the power of social con-
trol by dogmatically affirming economic
law. Rather, he spends pages carefully
analyzing all the various effects the power
of labor unions and other institutions
might have upon economic phenomena
and the consequences that would inevi-
tably follow. Most readers will grow
weary following this economist through
a labyrinth of causes and effects, but the
quest is worth the effort. After exploring
all possible contingencies. Bohm-Bawerk
comes to the carefully considered conclu-
sion that coercion "can never effect any-
thing in contradiction to the economic
laws of value, price and distribution; it
must always be in conformity with these:
it cannot invalidate them; it can merely
confirm and fulfill them."
Labor unions can raise wages by force.
but they never raise them permanently
without one, or a combination, of three
things happening. In the first place, other
factors will enter to increase production,
usually technological improvements, which
will make it possible for fewer workers to
produce more and thus keep the higher
wage level won by union coercion, but it
will be at the price of unemployment for
other workers. Not that workers will be
laid off immediately. They will not be re-
placed so that eventually a state of equi-
librium will be reached with fewer work-
ers producing as much as more workers
did formerly, but at the higher scale of
wages. Thus, the law of marginal utility
will triumph.
The second alternative is for the cost
of living to go up so that the higher wage
is an illusion. The worker will be working
at the same level of earning power that he
was formerly, but more money will be
passing through his hands. Inflation is a
great deceiver. This alternative is one with
which we have become all too familiar
during the cost-push inflation of post-war
America. Again, economic law triumphs
over the coercive power of social control.
The third alternative, when some form
of social control forces wages above the
level justified by economic law, is for the
entrepreneur to go out of business. This
would have happened to the New Haven
railroad had not the government come to
its rescue. Other industries have changed
their location, which is tantamount to go-
ing out of business in the place where con-
tinued operation has become economically
unsound. When government intervenes
with its monopoly on coercion, a new
complication is introduced, but economic
law is not repealed?as even Russia has
discovered. Government intervention can
conceal the operation of economic law
from the casual observer. hut never ne-
gate it.
After his careful and extended investi-
gation. Eugene von Bohm-Bawerk con-
cludes that while labor unions can have
many effects upon the social situation.
such as hastening changes which would
have come more slowly, it is impossible
for them permanently to raise real wages.
If the truth in this closely reasoned,
heavy little book could be communicated
to a world that has been dazzled by the
errors of Marx, it would prove more rev-
olutionary than Das Kapital. The revo-
lution it would inspire, however, would he
in the spirit of 1776, a revolution of free
men against increasing bondage to organ-
ized labor and to government, but a revo-
lution of ideas not of violence.
*Shorter Classics of Eugene von Biihm-
Bawerk. Volume I. Libertarian Press, South
Holland, Illinois. 1962. 376 pp. $7.50.
A Slumbering Giant(ml,lI,Ifrimi Pat:e 2)
through one of the great propaganda.
brain-washing jobs of history, supported
by the Federal Government and many of
our universities, to convince people that a
corporation is some ugly entity rather than
a productive organism owned by living.
breathing. voting people who have in-
vested their savings in its progress.
The problem arises from the fact that
very little counter-education has been un-
dertaken in challenging the thesis that a
corporation is simply a juicy lemon to be
squeezed by labor and taxing authorities.
Behind every stockholder is the corpora-
tion that issued the stock. Within that cor-
poration there are managers who are paid
to "support, protect and defend" the in-
terests of the owners who elected them.
Collateral to their directives for making
a profit, business managers have a respon-
sibility for defending the sacredness of in-
vestment by the owners, and collateral to
that, for informing the stockholders of
those attacks-creeping socialism or other-
wise?which affect the profit potential.
Yet Internal Revenue has declared it is
a non-deductible expense for a company to
spend money in its own defense. Thus, the
stockholders-15,000,000 of them?are the
first and only group in the country which
is formally denied by a bureaucracy its
constitutional right to petition Congress
through the modern methods used by other
groups.
Legislation was before Congress in the
last session to correct this inequity, and
presumably it is to be reintroduced. Such
legislation would seem to offer an impor-
tant field for action by management to de-
fend the rights of their investors.
The stockholder is potentially one of
the most powerful forces for retaining the
American system of enterprise upon which
the greatness of our Republic and its po-
litical system stands.
He is a slumbering giant!
University Rejects
Federal Aid
((ontinued from page 1)
nation, if we go along with policies we
consider wrong? "Weil, even so, since this
money is available you are foolish if you
do not get your share of it." Such oppor-
tunistic motivation represents a dismal
surrender of ethical principles, it seems to
me. Can we stoop so low and maintain our
integrity, our self-respect?
It will cost us something to decline cheap
and easy money. so- freely given. Our
Church. our alumni, our friends who be-
lieve in private enterprise and in the inde-
pendence of our Church colleges will have
to provide the money that we need for our
survival in the years ahead. I believe that
is the better way and I have enough faith
and hope to take this calculated risk.
Excerpt from Capital University
Bulletin, December, 1961.
Approved
For Release 2003/11/04:
Letters
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on "The Moral Basis of a Free Society."
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The present trend ix dangerous, and men
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generation is arising that knows not .. .
Rev. Frederick J. Nader
Flushing, New York
IN THE past I did not always thor-
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but I do now. We must return to common
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sue of CHRISTIAN ECONOMICS. It
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TIAN ECONOMICS. Count me as a
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CHRISTIAN ECONOMICS. The timely
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Rev. Cassius E. Street, Leawood, Kansas
Rev. Eugene A. Watts, Bakersfield, Calif.
Robert E. Weatherford, Bellmawr, N. J.
Mrs. George J. Weber, Salt Lake City,
Utah
Ray Watson, Richton, Mississippi
Mr. and Mrs. R. j. Whaley, Jackson,
Montana
Warren Zimmerman, Lawrence, Kansas
--------------------------------------------------------------
VOL. XIV
APRIL 17, 1962 No. 8
CHRISTIAN ECONOMICS
HUNGER?THE HALLMARK OF
COMM UNISM Lawrence Sullivan
UNIVERSITY REJECTS FEDERAL
AID H. L. Yochum
A SLUMBERING GIANT
WHAT IS AUSTRIAN
ECONOMICS?
EDITORIALS
4
James P. Selvage
Rev.!. E. Howard
Howard E. Kershner
CHRISTIAN FREEDOM FOUNDATION
250 West 57th Street
New York 19, N. Y.
Non-Profit Organization
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CHRISTIAN ECONOMICS
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Voice of the Editor
"You Are Directed...."
rr HE HEADLINE of a newspaper on my desk an-
nounces, "Goldberg directs strikers to return to
jobs.. The article quotes from a letter by Mr. Gold-
berg, acting as Chairman of the President's Missile Site
Labor Commission. He wrote to the unions:
"You are directed to instruct members of your or-
ganization to return to work and remain at work at
the Atomic Energy Commission installation...."
We have little sympathy with striking defense workers
at Cape Canaveral, the missile bases or other critical de-
fense work; but just the same it is a new note for the
Administration to order people to work and to say to the
unions, "You are directed...."
These expressions underline the fact that freedom is
not automatic. It must be earned. The way we earn it is
to practice self-discipline?voluntarily to do right, be hon-
orable, decent and fair.
Society cannot exist without discipline and if it is not
voluntary, we bring upon ourselves the authoritarian con-
trol of government, and become slaves instead of free
men.
We can take our choice, self-control or secret police
control.
Back Road to Communism
THE LATE Bill Foster was a militant Socialist and
after the Communist Revolution in Russia an un-
tiring worker in the Communist conspiracy to destroy
capitalism and impose communism upon the world.
Stalin advised him that the American people would never
accept socialism or communism and that the only hope
of imposing a Red regime in the United States was "a
consistent but gradual increase in local and federal pub-
lic ownership projects." Publicly-owned operations, he
pointed out, paid little if any taxes and in the end "... re-
sult in a fiqal acceptance of complete government owner-
ship and operation." That, he explained, is communism.
"Evpry new local or federal public ownership proj-
ect," said Stalin, "is an added nail in the coffin that will
finally contain capitalism. The tax burden will become
greater every year for the American people, and each
government-owned operation will throw an added bur-
den opt the private taxpayers. It is obvious that the cam-
el's back of capitalism will finally break under an un-
bearable burden." Stalin told Foster "... that the average
left-wing American liberal, who would be insulted at
being called a Socialist or a Communist, would enthusi-
astically use all of his influence to bring about more and
more public ownership operations in the field of natural
resources, transportation and other commercial lines.
That is the way we must enlist the left-wing liberals in
all walks of life, not only in the United States, but in
all Latin America as well."
It is clearly evident that Stalin proposed to commu-
nize America by the extension of government ownership
of utilities, transportation and other enterprises. Where
there is opposition to outright ownership, he instructed
his followers to seek the largest possible measure of regu-
lation and control.
Another back-door road to communism advocated
b" Stalin is heavier and heavier taxation. Government
now takes more than one-third of the income of the
people in the form of taxes and the percentage goes
higher and higher. This is another way of measuring the
extent to which socialism has taken over our country.
It is bitterly ironical that so many of our leaders who
claim to be fighting communism are enthusiastically ad-
(Continued on Page 2)
APRIL 17, 1962 ? TEN CENTS
HRI STIAN
ECONOMICS
We believe in les,, government, the free market and the faithful
application of Christian principles to all economic. activities.
COPYRIGHT 1962 BY THE CHRISTIAN FREEpom FouNDATION, INC., REQUESTS To REPRINT INVITED.
Hunger?The Hallmark of Communism
LAWRENCE SULLIVAN
WORLD communism is one long breadline.
China, Russia and Cuba are the three focal
points of Communist intransigence today; and all are
hungry in various stages of malnutrition.
China is prostrated by mass famine. Russia is con-
fronted by persistent malnutrition in all her big industrial
centers. Hunger as the hallmark of communism was offi-
cially introduced in Cuba early in March this year when
Castro announced general rationing of all foods.
Food books are issued only by the neighborhood
chiefs or the Cuban security police. Those who have re-
sisted the Castro program in any degree are denied food
books.
A British tourist reported in Washington. March 3:
"Cuban officials are not honoring all ration cards. There
is no meat, no eggs, and scarcely any milk. A friend in
Havana told me this week the last egg he ate was on
January 24."
Sugar grinding mills are currently producing about
one-fifth their normal daily capacity of finished sugar
for export.
After 44 years of collective farming, the Russian
cupboard is bare.
As Khrushchev states the prob1ein heo8ceii his tits uf
missile blackmail: "We have been fighting for 40 years to
achieve the present level of production. Now we have to
do two or three times as much in two or three years."
Of course, no nation can hope to double or treble its
food production in two or. three years. Hence. the food
crisis portends the early collapse of socialist agriculture
in Russia and the European satellites. Individual farms,
under life-tenure lease, now are discussed publicly by
non-party economists throughout Russia.
Khrushchev faced the problem squarely in his his-
toric seven-hour harangue before the Central Committee
on March 5:
"If we fail to solve this task, we shall confront the
country with great difficulties, and the cause of building
communism will he seriously damaged."
Khrushchev has now recommended new Youth Bat-
talions, including women, to be shipped en masse from
the cities to bring in new crop areas in the arid grasslands
of middle Siberia. Never before have women been mobi-
lized for such work. This gesture clearly marks a race
for the panic button in Moscow.
Russia farms 500-million acres of crop land, against
329-million acres for the U.S.A. But because of shortages
in farm machinery and fertilizer, and the short growing
season, her acre yields run only about 40 per cent of the
U.S. averages. And Russia has 30-million more mouths
to feed at home, before she starts her foreign aid pro-
grams!
A current on-the-spot survey by the World Food Or-
ganization in Rome as reported through the Department
of Agriculture here, concludes: "Soviet consumption is
low for meat, milk, eggs, fruits, and vegetables. Also, the
Soviets have less edible fats and oils."
These shortages explain Khrushchev's vigorous de-
mand last September for "mare horse meat." Official
figures now available from Rome show that in 1961 Rus-
sia consumed 500-million pounds of horse meat for hu-
man food.
With the Russian people on the brink of famine and
Cuba issuing ration cards for what she may have to ra-
tion, the third party in this Communist triumvirate of
hunger is witnessing mass starvation on a scale never
before known in human history. It is sweeping Com-
munist China in a scourge which challenges gravely the
12-year dictatorship of Mao Tze-tung.
A special research task force from the U. S. Depart-
ment of Agriculture, now in Hong Kong, reports that
the Chinese famine today is entering its fifth successive
year.
Food supplies for China's 700 million population are
at "a dangerously low level" which could take "an enor-
mous toll in health and ability to work."
Masses of workers in the cities have not the daily
strength to operate their accustomed tools and machines.
Hungry mobs denude the fields of the collective farms
by night, destroying many crops before maturity.
All livestock is disappearing from the rural landscape.
Even dogs are prized as city meat.
Over vast areas. China teeters today on the brink of a
second Dark Age of nomadic cannibalism.
In 12 short years since Mao Tze-tung took over in
Peiping, communism has come to full ideological flower
in China?abysmal chaos, in a land still recording a popu-
lation growth of 14 million a year.
Since 1949, China's population has expanded by some
168 million, yet total food production in 1961 was
smaller by many thousands of tons than the total harvest
of 1949.
In the words of one Chinese observer: "It is a tragedy
for the Chinese people. .. . Can the Communist regime
last . . . ? Each village is now a miniature Communist
dictatorship presided over by zealots and fanatics often
still in their teens."
(Continued on Page 3)
University Rejects Federal Aid H. L. YOCHUM, President. Capital tiniverAdv. Columbm, obio
AFEW months ago when we were about
to start construction of a new resi-
dence hall for men students, estimated to
cost over $400,000, we decided that we
should arrange a loan of $300,000 from
a local savings and loan association rather
than from the federal government. Instead
of a 40-year loan, this is a 20-year loan.
Instead of around three per cent interest,
we are paying 51/2 per cent interest. Was
this right or wrong, wise or foolish? You
be the judge; let us tell you why our Board
of Regents took this action.
At the very outset we may as well admit
that most of our colleges and universities
are gladly applying for federal loans on
construction of buildings. Some of my col-
leagues tell me that we are foolish to hold
out on this issue and some rea-
Approved For Release 2003/11/04: CIA-RDP80601676R002800250016-0
sons are given in educational journals why
we should quit debating and gratefully ac-
cept all the federal aid we can get. Frankly,
most of the argument in support of accept-
ing federal aid seems to be rationalization
(which! would define as giving impressive
reasons for what you have already decided
to do for less impressive reasons!). I can-
not help thinking of the alleged reply of a
politician when he was asked where he
stood on a certain issue "as a matter of
principle:" Said he, "Wait until I have fig-
ured out where the advantages are, and
then tell you where I stand as a matter
of principle."
During November the college presidents
and some of their colleagues have been
visiting business and industrial firms
throughout the State- to present the needs
and merits of the independent college and
invite support through the Ohio Founda-
tion of Independent Colleges. For 10 years
we have told these business and industrial
leaders that we feel there is a place for the
independent colleges and universities
alongside the tax-supported institutions of
our state and several of our cities. We have
declared that we think independent col-
leges and independent business firms have
a common stake in preserving private ini-
tiative and enterprise, that we should help
one another and not run to the govern-
ment to get the help we need. Now, can we
have it both ways? Can we talk out of both
sides of our mouths? Can we solicit gifts
as voluntary support and then turn around
and ask for aid from tax-derived funds?
During ;the 10 years we have worked to-
gether in the Ohio Foundation of Inde-
pendent Colleges. we have received signifi-
cant amounts; the total for Capital is
nearly $300,000. We have said this was
the alternative to losing our independence
by taking federal aid. I want to be honest
when I present our case to the public!
Two rebuttals are frequently offered to
our stated position. "You cannot resist the
historic process?you cannot fight the cur-
rent trend." Why not? If we feel that the
current trend is wrong we can and we
should fight it! If we are convinced the
historic process is in the wrong direction,
we are morally obligated to resist it! Where
are our principles, where is our concern
for values, where is our fidelity to the best
interests of our institution or Church or
(Continued on Page 4)
VOL. XIV
APR. 17, 1962 No. 8
CHRISTIAN
ECOI\OMICS
Howard E. Kershner, Editor
George H. Cless. Jr., Managing Editor
I. E. Howard, Assistant Editor
John A. Huffman, Assistant Editor
P flbliAlied fortnightly foun September through June by
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A Non-Profit Organization
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Articles are selected on a basis of general interest,
and may not alIvays be wholly in accord with the
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NaPlieS are added to the mailing list of
CHRIST/AN ECONOMICS upon request
and without charge, butt voluntary
contributions are solicited.
Voice of the Editor ,Continited)
vocating all of these things which Stalin told Foster would
eventually completely communize our country.
We do not need to fall into this trap. Now that it has
been exposed, let the American people put an end to fur-
ther socialization via taxation and government ownership
and control of our industrial operations. The sad fact is
that government now owns and operates 700 large busi-
ness corporations in our country and thousands of smaller
ones. Nearly all of them operate at heavy loss. Govern-
ment also owns 33.8 per cent of the land surface of our
country. We need a retro-rocket to brake our descent into
socialism and a new booster charge to put us back in the
freedom orbit.
Destructive Foreign Aid
UOR YEARS we have said that lavish, ill-considered
foreign aid often does more harm than good. The
tragic experience in Iran affords ample proof of this view.
During the past 11 years, the United States has poured
more than $1,100,000,000 into Iran. During this period,
I eheran has grown from b00,000 people to almost 2,000,-
--TTO0. The enormous flocid of dollars Was created a wild
boom which has now collapsed. Of course, we are called
upon to pick up the pieces and we are now sending about
$15.000.000 a month in an effort to hold the regime
together.
It is said that there is about $60,000,000 worth of
road-building equipment in Iran and no more roads to
build. About 40,000 television sets and 100,000 electric
refrigerators are in warehouse, awaiting sale. Super-
markets have sprung up in which refrigerators, coolers,
television sets, radios, recorders and other modern equip-
ment are sold on long term credit. Many expensive houses
have been built by millionaires who have grown rich in
land speculation based on the golden flood from the
United States.
Easy money, squeezed out of long-suffering and over-
burdened American taxpayers is not the answer to the
problems presented by the underdeveloped countries. The
real answer is a little slower but far more permanent and
beneficial. It consists in limited government, free enter-
prise, sound money, and laws assuring fair play to do-
mestic and foreign savers who are willing to invest their
money in industrial development. That is how America
and other Western countries won their higher standards
of living and it is the only way that other countries can
progress toward the same goal. The alternative is the
slavery of communism which may offer a certain type
of industrial development at the price of the loss of in-
dividuality, self-reliance and freedom. The price is too
high and the results too meager for communism or so-
cialism to be considered an alternative to free enterprise
based on the moral law.
Another Defeat
THREE and one-half years ago the United States was
I well ahead of Soviet Russia in its knowledge of nu-
clear science. The Kremlin devised a strategy to overcome
this lead. It agreed to a moratorium on testing and en-
tered into a long discussion with the Western powers on
the subject of nuclear disarmament. Meanwhile. Russian
scientists were perfecting their plans for making an elabo-
rate and extensive series of nuclear explosions designed
vastly to increase their knowledge of the subject.
When all was in readiness, the Soviet Government re-
nounced the moratorium and quickly completed a .series
of about 50 atmospheric tests. It is believed that Russian
scientists gained very important information as a result
of this great variety of tests including bombs of hereto-
fore unheard of strength.
It now appears that the long moratorium was arranged
by the Soviet Union to stop the free world from perfect-
ing its knowledge of nuclear science while the Commu-
nists endeavored to catch up with and to surpass the West.
The talks provided the time necessary for the extensive
preparation and it stopped Western progress in nuclear
science.
Western civilization depends upon keeping ahead of
the Communist countries in this desperate race. To stop
is to allow them to overtake us. When and if they do, we
shall be faced with an ultimatum to surrender or eke!
Nuclear warfare is horrible to contemplate, but sur-
render with the blotting out of the values developed by
Western-Christian civilization is even a greater catastro-
phe.
This false moratorium has been of great advantage to
the Kremlin. Our government was duped by it just as it
was duped into accepting stalemate rather than victory
in Korea. We cannot stand any more such defeats. Our
leaders must sharpen their wits and steel their determi-
nation to defend the right of the West to survive at what-
ever cost may be necessary. Moreover, we cannot con-
tinue to live under a strategy of mere defense. We must
move over to aggressive prosecution of the cold war until
communism is destroyed. The alternative is our own de-
struction. Believing as we do that Western civilization
is incomparably better than communism, we must imple-
ment our faith and press forward with inflexible deter-
mination riot only to prevent Communist expansion but to
discredit it in the minds of men throughout the world and
to defeat and dethrone its gangsters who have enslaved
so large a portion of the world's people.
No! No! Mr. Ribicoff
ED BY Secretary Ribicoff, the Administration is push-
ing hard to provide medical care for elderly people
under Social Security. He told a cheering audience re-
cently:
"One-hundred-eighty-thousand members of the
American Medical Association are not going to
frustrate the will of 180 million Americans."
Secretary Ribicoff is wrong in claiming that 180 mil-
lion Americans support his plan for socialized medicine.
Large numbers of them, in my opinion an overwhelming
majority, oppose it. To name two, the editor and his wife,
although in the age group that would benefit, do not want
any part of it. No, Secretary Ribicoff, you are not speak-
ing for us nor are you speaking for tens of millions of
Americans who oppose the socialism you are trying to
clamp upon us.
Your proposal would provide free medical care for
elderly people at the expense of younger people who must
bear the added tax burden. What you propose is no less
Approved For Release 2003/11
than coveting and stealing sonic of the wealth of younger
people for the benefit of older people.
It should he the duty and privilege of older people to
leave something for their children and grandchildren to
make life more pleasant for them rather than to impose
heavy financial burdens upon them. Where necessary, it
should he the duty and the privilege of younger people to
care for their parents. Your scheme would destroy these
two fundamental foundation principles of civilized so-
ciety. It would encourage dependence, and the shifting
of the burden everyone should try to carry for himself,
upon the shoulders of others.
Your proposal is a further step toward the destruc-
tion of self-reliance and thrift. It encourages the "give
me" attitude which destroys character and tends to reduce
men and women to the subservient status of beggars.
I have seen enough of this system in foreign countries
to know that I do not want it and I resent your attempt
to represent me as wanting something which I oppose.
Dismemberment
BY UNANIMOUS vote the National Assembly of
Panama is demanding the scrapping of treaties with
the United States establishing the Panama Canal and the
Canal Zone. When former President Eisenhower, near the
end of his second term, acceded to Panama's request that
the Panama flag he flown in the Canal Zone, I predicted
that in a little while Panama would demand the Canal.
In this case, as always, appeasement leads to further de-
mands and finally to surrender.
It won't be long till Cuba will demand that we sur-
render the Guantanamo Naval Base. If the Connally
Reservation is repealed, we may expect to be hauled be-
fore the World Court by Russia's demand for the return
of Alaska and perhaps the southwest part of our own
country to Mexico.
When it is remembered that no Communist nation
adheres to the World Court, yet a national from each one
of them is eligible to sit as '1 judge upon this Court, mak-
ing it possible for a majority of the judges at any given
time to be Communists, it becomes apparent that the
Connally Reservation is our only safeguard against,forci-
hle dismemberment by our enemy. It would deprive LIS
of the right to decide these matters for ourselves and put
our fate in the hands of UN and its World Court with
the strong probability that Communists from Communist
nations may at any time be in control and exercising the
power of life and death over our country.
It the American people want voluntarily to surrender
any oftheir contiactual rightS, their privileges or their
possessions, they are free to do so, but surely they do not
want to place themselves at the mercy of their enemies
by putting these vital questions into the hands of hostile
Communist judges sitting on the World Court., That is
exactly what they will do if they permit our government,
urged on by many leaders in educational, lite.rary, politi-
cal and religious circles to repeal the Connally Reserva-
tion to the resolution providing for the adherence of our
country to the World Court.
Dizzy Spending
BOUT the turn of the century when I was a small
boy, I remember the sensation created by the first
billion dollar Congress. For the years 1898 and 1899 the
Federal government expended about one billion dollars.
Sixty-two years later we are spending approximately 200
times that amount and there seems to be little concern
on the part of the public. Our dollar is more than half
gone now. A few years more at the present rate of deterio-
ration and most of its value will have disappeared. Econ-
omy and reduced spending are imperative if we would
avoid the miseries of inflation, the loss of our prosperity
and of our industrial leadership.
A Slumbering Giant JAMES P. SELVAGE
THERE IS a question whether the stock-
holder, as a collective entity, is a corpo-
rate hero or villain?or just a victim with an
eventually marking the spot unless
he learns to use the mentality which statis-
tics say he has.
The capitalistic system has been likened
to a stool with three legs, called capital,
labor and management. If that analogy is
correct despite the efforts of Walter Reu-
ther and socialist-minded politicians, it is
the stockholder who puts the CAP in cap-
italism.
There are some 15 million stockholders.
Yet, as these have grown to an extent
where they should be a potent political
force, they are instead a principal victim
for socialistic experiments.
2
Taken individually, the stockholder is
probably better educated, more articulate,
more well-to-do, and more ambitious for
the welfare and security of his family than
the average of any large group in our
society. If he ever started kicking up his
heels he would be power unlimited.
He winds up, however, as a complex,
bedeviled character who is told repeatedly
that the fruits of his contribution to the
three-legged stool belong to others.
His is the only income in our society
that is double-taxed; once when the corpo-
ration reports what his investment of
money has earned, and again when he
shares in the dividends.
Labor bosses say: "Take it away from
the investor and give it to our members."
Socialistic Americans for Democratic Ac-
tion who occupy key spots in government
have defined him as a "loophole" to be
closed along with their other -liberal"
steps toward leaving him for dead.
It is a phenomenon to see 15 million
persons, most of them women who are not
known for being pushed around without
scratching back, being plowed under as
a collective group.
Politicians of the left, socialistically-
inclined professors, administrators of gov-
ernment and labor leaders join in a con-
stant hubbub about taxing corporations
more, and giving a greater share of the
earnings to employees.
Hijacking of corporations has become
a national game. Whenever more money
is needed, Congress says, "Let's soak the
corporations again." Somehow we in
America have been taught that it is a few
thousand corporate managers who will
pay the bill.
Stockholders don't seem to realize that
when President Kennedy demands that
the steel industry not raise prices to offset
wage increases and to maintain profits, it -
is the investor whose heart should be bleed-
ing. When Reuther blandly asks, and gets
in one important instance, the right to
share in profits?but not losses?the inves-
tor never lifts an eyebrow or demands
protection of his rights.
These and similar acts have been done
(Continued on Page 4)
CHRISTIAN ECONOMICS
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Pastors, please note that free imprints of Sermonettes are available upon request in sufficient qua,
iii' for insertion in your Sunday morning Church Calendar or Bulletin. Standing orders invited.
THE SERMONETTE?Armed with the Power of the Lord
NEASTON, N. Y., in the year 1777, a
little band of Friends, gathered to-
gether in their new meetinghouse of rough-
hewn logs, were surrounded by a band of
Indians. Allies of Burgoyne, they had
come to slay all, but changed their minds
and stayed to meeting.
"It would show little faith," the Quak-
ers said, "to leave our homes and go with
the other settlers to Albany Fort. Armed
with the power of the Lord, we fear no
man." They exercised their own judgment
without blame to the authorities, who had
urged evacuation.
Robert Nesbit, a visiting Friend, had
walked two days through the untamed wil-
derness from East Hoosac, now Adams,
Mass., to bring them comfort. He had
come because he knew of the dangers that
threatened the little clearing.
"The beloved of the Lord shall dwell in
safety," he told them. "He shall cover thee
with His feathers. Under His wings shall
thou trust." He lingered over the words.
The Indians, 13 of them, in war paint
and feathers, with tomahawks and gory
scalps dangling from their belts, came
noiselessly through the dooriess entrance.
Twelve poisoned arrows were ready to fly
at the signal from their chief, whose pierc-
ing eyes searched every corner and nook
for weapons. Finding the Friends un-
armed, he signaled his warriors, and the
12 arrows were placed back in their quiv-
ers, the bows stacked against the wall.
The braves seated themselves on a
bench and bowed their heads, but not be-
fore a silent, terrible struggle had taken
place between the forces of love and hate.
The fierce, dark eyes of hate looked into
the calm, blue eyes of love belonging to
Zebulon Hoxie, patriarch of the Meeting.
Finding only steady friendship in Zebu-
Ion's unwavering gaze, the dark eyes fi-
nally felt, and himself unarmed, the Indian
chief sat down, his dusky braves ranged
around him. The silent meeting continued,
increasing in solemnity. The whole room
was filled with the presence of a living,
unseen Power.
The slow moments passed. At last the
hour of silent worship ended. Old Zebulon
shook hands with the Eider on the facing
bench beside him and then advanced and
shook hands with the Indian chief.
"Indians come to kill white people," the
chief explained in broken English and sign
language. "Find no guns, no arrows, no
knives! White man worship Great Spirit.
Great Spirit inside Indian, too. Great Spirit
say, 'No kill 'em!'" Selecting a white
feather from his arrows, he placed it over
the doorway as a sign of peace between
the Indians and the Quakers. It was one
of the strangest Friends meetings ever
held. A New York State historical marker
near the road commemorates the incident:
It has been many years since that brave
little band of Quakers in Easton, N. Y. was
surrounded by Burgoyne's Indian allies,
but the spirit of those first staunch Friends
who refused to leave their homes in the
wilderness because it showed "little faith
to be afraid" is still there, and their de-
scendants keep the story of their faith and
courage alive.
"The beloved of the Lord shall dwell in
safety" is just as true and comforting in
this atomic age, with its dreadful threat of
nuclear weapons, as it was in 1777, with
its threat of poisoned arrows and toma-
hawks. Ruth G. Campbell
Reprinted Iron,
"Friends Journal," Oct. I, 1955
[lunger The Hallmark of Communism Wm:tinned from Page 1)
Our Department of Agriculture task force will sub-
mit its formal documentary report through routine chan-
nels. probably within three months.
Meanwhile, all U. S. intelligence agencies are sifting
their daily pouches for material bearing directly upon
the spreading Chinese famine and its demoralizing im-
pact upon the whole fabric of civilization on the Asiatic
Main land.
These reports come every day from Tibet, Japan,
Burma, Formosa, Thailand, Malaya, Hong Kong, India,
Nepal, Australia, Canada, and Indonesia. Even in remote
Mongolia, 1961 already is fixed in the primitive folklore
as "the hunger year."
One report from Shanghai, the most important indus-
trial center of all China, outlines the food crisis in these
words:' "The current ration in Shanghai consists of two
ounces of rice per week; two ounces of pork every ten
days; four ounces of biscuit per month; four ounces of
fish each week; four ounces -of sugar per month; four
cookies per month; one yard of cotton cloth per year."
This official ration measures out to little more than
two ounces of food per day. The Western standard is
about three pounds a day.
Nutritional scientists in Washington have been poring
over tons of these chance intelligence fragments for some
ten _months. Their conclusion is that daily food intake
for the masses of China has been at the malnutrition
level so persistently for the last two years that the entire
population now has fallen into a state of physical lassi-
tude which avoids all self-sustaining effort in whatever di-
rection?in the fields, shops, streets, factories, or mines.
Before the Communist take-over, the average village
farm was 2.5 acres, and carried 5.3 persons. After the
Red land reform of 1950 the average distribution was
1.3 acres for each 5.3 people.
State collections from the communes are roughly 60
per cent of the harvest.
Translating these figures to a per capita return, we
get a harvest of approximately 20 per cent of the pre-
revolutionary average for each villager?after taxes.
The rural communes uprooted traditional family life
in every aspect, setting at naught the cultural patterns of
a thousand years. The 60 per cent crop taxes, payable in
kind, destroyed all local incentives to production.
"As a result, many farmers burned their crops,
flooded their farms, permitted grass and weeds. to grow,
let more than the usual acreage lie fallow."
Next, they killed their livestock, lest it be seized by
the commune directors in retaliation for short grain de-
liveries.
Science has recognized for more than 20 years that
mass starvation first is manifest in human passivity. Per-
sistently undernourished populations have sufficient food
to sustain life, but not enough to sustain normal mental
and motivational activity. From day to day starving peo-
ple become more and more unresponsive to their physical
stage is total inactivity: the victim of slow
surroundings. h e las
starvation lies down quietly in the street, or in the field,
to die.
From Malaya comes the report of a farmer refugee
from a decaying Chinese commune. When he left China,
there were 55 men in his work force. Fifteen of them
suffered from festering beriberi, an unfailing symptom of
d the arrival of 69 refugees from
advaHnocnegd KmoanIngurteriptoiornte.
a model Chinese commune in Chungshan province.
"The leader said they fled because of an acute shortage
of food."
The Mainland commune this group had abandoned
CHRISTIAN ECONOMICS
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long had been a showplace for China's great leap forward.
All overseas visitors had been guided there to see for
themselves the rich abundance of the Cheungkapin Vil-
lage commune.
The intrepid band of 69 who risked their lives to
escape this model village made up the largest group of
refugees ever to reach Macao, the Portugese clearing cen-
ter to freedom. This group included 34 starving children.
"Starvation and forced labor are the new way of life
in Lhasa under the Chinese Communists," runs a report
from Tibet. "Barley and wheat grown around Lhasa were
being shipped elsewhere, leaving the natives only dried
beans, 'which they formerly used as fodder for animals."
Red China has purchased 1,350,000 tons of grain and
flour from Canada and Australia during the last year, but
now has exhausted her credit. All future purchases in
those areas must be for international cash, which Peiping
has not.
"The regime is extremely hard pressed, and the situa-
tion will get worse before getting any better,- says a rep-
utable private report from Hong Kong.
. Hong Kong officials have been recording the testi-
mony of hungry refugees for five years. One recent state-
ment, in literal translation, runs:
"Since the happening of the food scarcity the rural
economy has become persistently depressing, and people's
pauperism has constituted a vicious circle which provides
an essential factor in bringing about general bankruptcy
under the Communist regime.-
A concurrent report from Hopei Province relates that
for many people the famine has been alleviated "as a
result of using weeds for food."
"In consequence of the concentration policy in food
production," says another literal translation, -many of
the Communist cadres have sunk in the depth of vices ...
which in turn have spoiled the Communist organization,
and have driven the Communists themselves into self-
destruction."
Yet another literal translation runs:
"As a consequence of the land reform, the life of the
people was engulfed in a most wretched plight, which
influenced greatly their working spirit, and the greater
reduction of food production."
Another refugee recently reported in Hong Kong:
"During the last five years there has been a famine
on the Mainland every year."
All of these tragic details of the China famine have
been suppressed by the fact that only pro-Communist
reporters have been allowed beyond Hong Kong. Uni-
formly, they have glossed over the mounting food crisis
with such euphemisms as "drought," "flood," and "nat-
ural disasters."
The UN WFO, in Rome, has been trying for a year to
get a study commission into China, to be selected by the
International Red Cross. Peiping will have none of it.
Our own Agricultural Task Force could get no further
than Hong Kong. It is still there.
A recent Japanese trade mission to Peiping was told
frankly that the commune system had proved a total fail-
ure. But, at best, one more crop will he lost in the transi-
tion to the new system, whatever it is to be.
The Chinese food disaster bears directly on the whole
structure of world communism, for China had pledged
300 million bushels of grains to Russia in 1961, and de-
faulted on every ton of it.
Our own food experts are not permitted to announce
their conclusions because China has published no food
production goals since 1959: therefore, there are no
official statistics to be refuted.
The pro-Communist press of the entire world is happy
to ignore the China famine, because it is the total undoing
of world Marxism.
During February 1962, both Tokyo and Taipei of-
fered Peiping 100,000 tons each of emergency rice con-
tributions, but Mao did not respond to these offers.
Tokyo then announced she would seek direct com-
mercial agreements inside China for her gift tonnage.
Formosa announced she would try to assist China with
gift packages of rice to be delivered by air-drop.
"Refugees reaching Hong Kong have reported wide,
spread discontent on the Mainland as a result of hunger,
spreading even to the Communist militia," this February
report concluded.
Late in November 1961, a Shanghai refugee dis-
closed that "if you want to buy a pair of socks in Com-
munist China, you must turn in an old pair in exchange
with your money and your ration card."
If there are no new socks in stock, the buyer is given
a commodity receipt for his old socks, to be redeemed in
a month or two, when the next shipment of socks arrives.
The same applies "to light bulbs, cooking utensils,
underwear, and -mosquito netting."
"Most consumer goods factories have suspended or
curtailed production due to raw material shortages."
The most pressing raw material shortage, of course,
is in foodstuffs. The factory workers simply have not suf-
ficient energy to get to work.
Taken all together, these reports outline the total col-
lapse of civilization on Mainland China.
As famine produces human passivity, the machinery
of civilization stops--production, transport, communica-
tion, distribution.
Mao Tze-tung now is king of all he surveys?a tragic
anthill of 700 million starving Chinese, to whom commu-
nism has proved itself, in 12 short years, to be what honest
history has always described it?Author of Chaos.
The Twilight of Morality
IT IS common knowledge that when a government at-
tempts to coerce the people by an expansion of the
police power, there is an inherent weakness in the moral
and ethical fiber of that nation. When the internal co-
hesive obligations of a people no longer sustain a society,
the state by coercion attempts to contain the population.
In this sense the expansion of the police power is the overt
evidence of the breakdown of social solidarity in that
nation.
A government or a society is sustained by one of two
kinds of control: ethical compulsion, or by force of the
club and the gun. If morality weakens within a nation,
the government expands into a police state. When a na-
tion is held together by the club and the gun, morality
is already dead. Dictatorships feed upon decadent moral-
ity. The tyrant's club cannot create political or social
morality.
When a government becomes a police state and rules
by the club and the gun, it thereby signs its own death
warrant. There is a recoil in the use of the club as there
is in the powder exploded in the breech of a rifle. Morality
once shattered destroys the people and the ruler. Outside
of prison and this side of hell men are not bound together
by the club but by the consciousness of moral obliga-
tions. The bond which holds men together is morality
and not brutality. When a nation builds walls to contain
the people, morality fades and in time that nation dies
behind its own barricades.
Walter A. Lundell, Professor of Sociology,
Iowa State University
Reprinted from The Freeman, March, 1962
3
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TRANSMITTAL SLIP
DATE
TO:. ?
11)
\
BUILDING
ROOM NO:
REMARKS:
FROM:
ROOM NO.
BUILDING
EXTENSION
FOR*N? .24 1 REPLACES FORM 36-8
I FEB 55 WHICH MAY BE USED.
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MEMORANDUM FOR: Da
F.Y.I.
Larry Sullivan has a very interesting
"famine" story that may interest you.
S' It(11\ 'IBTANLEY J. GROAN
h), i )1 (0^
6/S. i6V *Assistant to the Director
c?
9 May 1962
(DATE)
FORM NO.
10 I REPLACES FORM 10-101
1 AUG 54 WHICH MAY BE USED.
(47)
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?
APR 1967
Honorable Richard B..2421.f.li
United States Senate
Washington 25. D. C.
Ds henater Russell:
r-a--7.174.17_
believe that the briefing on 12 April by Agency
reprosestatives of the CIA St' sbcommakems. of /be benats
rased Services Caseating' and the %oats Appropriations
Committee served a most useful purpose. As you know,
it is msy desire to keep Lb. CIA Subcommittees of the
Centress informed of Agency activities as well as to
provide them with the smacooliury intelligence backgrosad
to assist them in the diecharge el their legislative
responsibilities. My hops is tamest with these Sub-
committees at least moothly and snore often if yeti or
ether members find it desirable.
Particularly I want to express my appreciation
for the nocassary arraarknutats made by you an short
notice to call the Subcommittee meeting. Tour interest
Ira the work of the Agency and year support and guidance
are most gratifying to me personally.
Aocerely.
.(Signed), JOHN Ay McCONE
Distribution:
0 & 1
- Addressee John A. McCain.
1
- DCI Director
1
- DDC1
- 0/ DC!
ER
1 - Leg. Counsel
OGG/LC:tyska (13 Apr)
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: CIA-RDP80
0028002500163p
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MEMORANDUM FOR: THE britECTOR
Attached is a proposed letter to Senator
Russell referring to the briefing on 12 April.
Basically I am suggesting this letter to thank
Senator Russell for setting up the meeting on
short notice particularly since he actually
cancelled another scheduled Committee
meeting to make room for the Agency's
appearance.
Recommend signature.
?
lative Counsel
16 Apr 62
(DATE)
FORM NO. 101 REPLACES FORM 10-101
1 AUG 54 WHICH MAY BE USED.
( 47)
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