The Maccabaean

IN the recent discussions in the columns of THE MACCABAEAN, the principal theme appears to have been the choice of economic systems best calculated to meet present ideals of social justice. I am far from denying the value of these discussions, so ably carried on.

I merely wish to suggest that, at this juncture, the need is not only for clear thinking in regard to social and economic ideals for the future population of Palestine, but also for practical suggestions as to how to get a sizable Jewish population into that country, conditions being what they are. Palestine does not yearn for co-operative stores and Single Tax nearly as much at is does for large Jewish forces capable of taking possession of the land. It is not an industrial malady to which we must address ourselves at this time so much as to a political deficiency—a deficiency in numbers.

Our consideration of economic systems, therefore, must be tempered by the need of enabling the greatest possible number to obtain a foothold on the soil of Palestine in the briefest time upon a self-subsisting, permanent basis. Insofar as our industrial formulas bring us nearer to this result, they are timely and pertinent. It then becomes necessary to ask ourselves, Are they practicable?

Some months ago I ventured to urge that the program of Industrial Franchise be made the basis of the settlement of Palestine. I urged this program not alone as tending to realize our ideals of social justice, but also as a means of creating an instrumentality by means of which colonization upon a large scale would become possible. Let me recapitulate.

Industrial Franchise means the elimination of economic anarchy and the destructive conflict of values, by means of the franchisement of all industries.

It means the elimination of production under conditions of economic risk and the inflation of values due to that risk.

It means that capital will be at the service of industry at a minimum cost and that there will no longer be need for an employing class as such.

It means that labor, by undertaking to eliminate the risks of capital, will earn the right to all the profits of industry and to limit the cost of commodities.

All this could be done without bond issues or other form of impairment of national credit. The grant of exclusive franchise would render all this unnecessary.

For, under Industrial Franchise, there would be a natural equilibrium of interests in every industry which would serve to standardize values, secure invested capital, protect the consumer and give the worker the full return for his work, without reduction on account of the anarchic conditions under which we produce and trade. The interest of the investor, to see that interest-paying property be maintained intact through the years, will prevent wastage and deterioration of the means of production; the interest of the consumer to protect himself against exploitation will prompt him to enforce price limits; while the ability of labor to profit by more economical production and to share in the control of industry, will serve to meet the aspirations of the worker.

But the Zionist interest in all this should be exceptional. For it is obvious that if a broad method can be found to safeguard the investment of capital in Palestine and, in the act of safeguarding, earn the right to control its employment in the interest of all, the industrial upbuilding of that country would be greatly accelerated. Every industry created in Palestine, whether it be a textile plant, flour mill or a Jerusalem printing works, is a bridge across which Jewish numbers can cross to the land of their desire. Industrial enterprise—and I include agriculture in the term— is the one outstanding method we have open to us by which any large infiltration in Palestine is possible in a relatively brief time.

But industrial building can only proceed upon its own terms. It cannot be based upon charity. It must march with natural human interest. We may not be able to offer capital enormous profits in Palestine, but we can offer it the one thing for which capital is willing to forego large profits—security. Capital invested in Palestine in accordance with the principles of Industrial Franchise, will enable us to develop large industrial enterprises in that country capable of supporting an appreciable portion of our people.

The claim that Industrial Franchise makes upon the interest of Zionists, then, is not alone that it makes for economic justice and industrial democracy, but that it represents a practical method for meeting the need to make Palestine available for the largest possible number of settlers in the briefest time, by laying a stable and inviting basis for the development of many strong industries.

II.

Since the publication of the foregoing views in the article already referred to and in the program of the Industrial Franchise League, various objections have come to the surface.

One critic, a good Zionist, makes the point that the investor in a given industry ought, of right, receive not only interest on capital invested but a share in the profits of the industry as well. I confess I do not see this point at all.

The investor in America, for example, who buys preferred stock in a corporation receives his seven per cent (sometimes) but never any profits. The assumption is that the buyer of preferred stock takes little risk because such stock and interest is a first lien upon the net assets of the company. Where a corporation offers preferred stock together with a bonus of some shares of common, as sometimes happens, it is safe to assume that the investor is buying "a cat in a bag." He may realize a great deal or lose everything. But this is the very thing we want to avoid under Industrial Franchise. Only the community as a whole, workers and consumers, who assume the responsibility of the enterprise, by conferring the franchise, submitting to price regulation, and doing the work, are entitled to profits. The investor is no more entitled to share in profits than the holder of a railroad bond.

Objection to Industrial Franchise is also made on the score