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18 reduce the acreage devoted to cotton, and that the bankers should refuse to lend to merchants who do not impose such restrictions on the farmers.

At first sight it may appear that control of an industry by the banks has absolutely nothing to do with government control. And this is, of course, true in so far as the banks exert control solely with a view to their own private interest. What is proposed by Secretary Houston is that the bakers should go beyond their own interest, and assume control for the good of the cotton growers themselves and of the general community. This would clearly be to assume a governmental function. It is worth noting that it is precisely by this process of assumption of public functions by private interests that new governmental organs are created.

The banker's interest is closely bound up with the general interest of the community, and there is probably no class better fitted than the bankers to undertake the control of industry. Yet the irresponsible exercise of governmental functions by any class, however enlightened and public-spirited, can not be tolerated by the modern state. Are the bankers, however, in such a position that they may take action without the support of the regularly constituted authorities?

The history of every modern state shows that the higher the degree of banking development, the closer the relation with government. The banks of England, France and Germany are frequently forced by the government ot subordinate their private interests to the public welfare. Our own banking system is less highly developed, yet instances of public control are occurring with increasing frequency. We may recall the measures recently employed by the Secretary of the Treasury to check the "hoarding" of money by the banks, and to secure the flotation of the Tennessee loan If the banks should undertake to regulate the production of such a staple as cotton, we may be sure that the Treasury would proceed to increase correspondingly its control over the banks.

At present the chief source of the influence that the Treasury can exert upon the banks is the discretionary power of deposit of surplus public funds Such funds fluctuate constantly in volume, and at best are a relatively small item in the accounts of our banking system. but if the government should undertake in earnest to sustain the price of cotton, it would be forced to raise funds to the extent of several hundred millions wherewith to advance credit upon warehoused cotton. The operations thus begun could hardly be closed out without loss, short of several years' time; the sales of cotton from warehouses in the winter and spring would set free public funds that would not be required for sustaining the market until the following season. Such funds in the meantime would be deposited in banks, and by their manipulation the Treasury would be able to dictate to the banks a loan policy in the general interest.

But if the Treasury should thus come to the relief of the cotton growers, and impose regulations upon the industry, may it not at some later time be called upon to "valorize" wheat or fruit or tobacco? Why indeed should it not do this? The alternation of underproduction and overproduction is generally admitted to be an unmitigated evil. In the industrial field it has largely been done away with through consolidation. In the field of staple production, efforts to stabilize the market though mutual agreement between producers have been numerous but unavailing. If stability is desired in this field, there is no simpler method of attaining it than through the control of credit funds by the government, acting though the banks.

Such control would not be confined to repression alone. It would refuse credit for the expansion of an overdeveloped branch of the production, but it would also extend credit for the introduction of new branches and for the expansion fo those unduly neglected. Its influence would indeed be confined to those producers who depend upon borrowed capital; but these, as the weakest producers, are the ones most likely to follow slavishly the branch of production to which they are accustomed. They are also the ones who suffer most severely from the consequences of overproduction, and would therefore most properly be subjected to control.

The Duty of Harsh Criticism O-DAY in England we think as little of art as though we had been caught up from earth and set in some windy side street of the universe among the stars. Disgust at the daily deathbed which is Europe has made us hunger and think for the kindly ways of righteousness, and we want to save our souls. And the immediate result of this desire will probably be a devastating reaction towards conservatism of thought and intellectual stagnation. Not unnaturally we shall scuttle for safety towards militarism and orthodoxy. Life will be lived as it might be in some white village among English elms; while the boys are drilling on the green we shall look up at the church spire and take it as proven that it is pointing to God with final accuracy

And so we might be go on very placidly, just as we were doing three months ago, until the undrained marshes of human thought stirred again and emitted some other monstrous beast, ugly with primal slime and belligerent with obscene greeds. Decidedly we shall not be safe if we forget the things of the mind. Indeed, if we want to save our souls, the mind must lead a more athletic life than it has ever done before, and must more passionately than ever practice and rejoice in art. For only through art can we cultivate annoyance with inessentials, powerful and exasperated reactions against ugliness, a ravenous appetite for beauty; and these are the true guardians of the soul.