POLITICAL CORRUPTION AS AN OBJECTION TO NATIONALIZING INDUSTRY.
"The next objection--there are only two or three more worth mentioning--is directed not so much against economic equality in itself as against the fitness of the machinery by which the new industrial system was to be carried on. The extension of popular government over industry and commerce involved of course the substitution of public and political administration on a large scale for the previous irresponsible control of private capitalists. Now, as I need not tell you, the Government of the United States--municipal, State, and national--in the last third of the nineteenth century had become very corrupt. It was argued that to intrust any additional functions to governments so corrupt would be nothing short of madness."
"Ah!" I exclaimed, "that is perhaps the rational objection we have been waiting for. I am sure it is one that would have weighed heavily with me, for the corruption of our governmental system smelled to heaven."
"There is no doubt," said the doctor, "that there was a great deal of political corruption and that it was a very bad thing, but we must look a little deeper than these objectors did to see the true bearing of this fact on the propriety of nationalizing industry.
"An instance of political corruption was one where the public servant abused his trust by using the administration under his control for purposes of private gain instead of solely for the public interest--that is to say, he managed his public trust just as if it were his private business and tried to make a profit out of it. A great outcry was made, and very properly, when any such conduct was suspected; and therefore the corrupt officers operated under great difficulties, and were in constant danger of detection and punishment. Consequently, even in the worst governments of your period the mass of business was honestly conducted, as it professed to be, in the public interest, comparatively few and occasional transactions being affected by corrupt influences.
"On the other hand, what were the theory and practice pursued by the capitalists in carrying on the economic machinery which were under their control? They did not profess to act in the public interest or to have any regard for it. The avowed object of their whole policy was so to use the machinery of their position as to make the greatest personal gains possible for themselves out of the community. That is to say, the use of his control of the public machinery for his personal gain--which on the part of the public official was denounced and punished as a crime, and for the greater part prevented by public vigilance--was the avowed policy of the capitalist. It was the pride of the public official that he left office as poor as when he entered it, but it was the boast of the capitalist that he made a fortune out of the opportunities of his position. In the case of the capitalist these gains were not called corrupt, as they were when made by public officials in the discharge of public business. They were called profits, and regarded as legitimate; but the practical point to consider as to the results of the two systems was that these profits cost the people they came out of just as much as if they had been called political plunder.
"And yet these wise men in Kenloe's collection taught the people, and somebody must have listened to them, that because in some instances public officials succeeded in spite of all precautions in using the public administration for their own gain, it would not be safe to put any more public interests under public administration, but would be safer to leave them to private capitalists, who frankly proposed as their regular policy just what the public officials were punished whenever caught doing--namely, taking advantage of the opportunities of their position to enrich themselves at public expense. It was precisely as if the owner of an estate, finding it difficult to secure stewards who were perfectly faithful, should be counseled to protect himself by putting his affairs in the hands of professional thieves."
"You mean," I said, "that political corruption merely meant the occasional application to the public administration of the profit-seeking principle on which all private business was conducted."
"Certainly. A case of corruption in office was simply a case where the public official forgot his oath and for the occasion took a businesslike view of the opportunities of his position--that is to say, when the public official fell from grace he only fell to the normal level on which all private business was admittedly conducted. It is simply astonishing, Julian, how completely your contemporaries overlooked this obvious fact. Of course, it was highly proper that they should be extremely critical of the conduct of their public officials; but it is unaccountable that they should fail to see that the profits of private capitalists came out of the community's pockets just as certainly as did the stealings of dishonest officials, and that even in the most corrupt public departments the stealings represented a far less percentage than would have been taken as profits if the same business were done for the public by capitalists.
"So much for the precious argument that, because some officials sometimes took profits of the people, it would be more economical to leave their business in the hands of those who would systematically do so! But, of course, although the public conduct of business, even if it were marked with a certain amount of corruption, would still be more economical for the community than leaving it under the profit system, yet no self-respecting community would wish to tolerate any public corruption at all, and need not, if only the people would exercise vigilance. Now, what will compel the people to exercise vigilance as to the public administration? The closeness with which we follow the course of an agent depends on the importance of the interests put in his hands. Corruption has always thrived in political departments in which the mass of the people have felt little direct concern. Place under public administration vital concerns of the community touching their welfare daily at many points, and there will be no further lack of vigilance. Had they been wiser, the people who objected to the governmental assumption of new economic functions on account of existing political corruption would have advocated precisely that policy as the specific cure for the evil.