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 points out that these difficulties vanish when it is remembered that the railways have been nationalized in many other countries without confiscation, and that "in this country we have transferred from private to public ownership such great concerns as the telephone system, the London Docks, the Metropolitan Water Companies and tens of millions of property in tramways and gas and electricity works."

It is quite true that the transfer of property from private to public hands can be carried through quite equitably without raising any money for the actual process of transfer. The State takes over the capital and debts of the enterprise, and creates national securities with which to buy out the holders. The State debt is enormously increased, but it is only increased by the cancellation of the capital and debts of the enterprise acquired. The charge upon the country's wealth and productive power is not necessarily increased at all, and is only increased if the State or municipality pays extravagant prices. But there is a danger which past experience shows to be a very real one, that State administration, being at present inefficient and extravagant, will not provide a better service to the community, will not be able to treat its