CHAPTER XI
OTHER FUNDAMENTAL PRINCIPLES
I have always found Mr. Cox very sound on economic problems. His ideas on taxation are not popular with the politicians; but are sound from the economist point of view. He is opposed to the present form of taxation which increases prices and retards development. He believes that present Federal taxes should be repealed and instead constructive laws should be enacted. He believes in taxation which will tend to develop improvements rather than retard them; taxation which will tend to retard consumption rather than increase it; taxation which will result in reducing waste rather than in encouraging it. On the other hand he believes that the Government should do all it can to suppress profiteering, and concerning this he states as follows:
Opposed to Profiteering by Capital or Labor
“If I am called to service as President, means will be found, if they do not already exist, for compelling these exceptions to the great mass of square-dealing American business men to use the same yardstick of honesty that governs most of us or else suffer the penalty of criminal law. To avoid such action on my part these profiteers are today working for my defeat.”
Concerning industrial disputes, the Governor says:
“Many captains of industry, guided by a most dangerous industrial philosophy, believe that in controversies between employer and employee their will should be enforced, even at the point of the bayonet. I speak knowingly. I have passed thru many serious industrial troubles. I know something of their psychology, the stages thru which they pass, and the dangerous attempts that are sometimes made to end them. Disputes between labor and capital are inevitable. The disposition to gain the best bargain possible characterizes the whole field of exchange, whether it be product for product or labor for money. If strikes are prolonged public opinion always settles them. Public opinion should determine results in America. Public opinion is the most interesting characteristic of a democracy, but it is the real safety valve to the institutions of a free government. It at times is necessary for the Government to inquire into the facts of a tieup, but facts, and not conclusions, should be submitted. The determining form of unprejudiced thought will do the rest. During this process, governmental agencies must give a vigilant eye to the protection of life and property, and maintain firmness but absolute impartiality. This is always the real test, but if official conduct combines courage and fairness our governmental institutions come out of these affairs untarnished by distrust.
“Morals cannot easily be produced by statute. The writ of injunction should not be abused. Intended as a safeguard to person and property, it could easily by abuse cease to be the protective device it was intended to be. Capital develops into large units without violence to public sentiment or injury to public interest—the same principle should not be denied to labor. Collective bargaining thru the means of representatives selected by the employer and the employee respectively will be helpful rather than harmful to the general interest. Besides, there is no ethical objection that can be raised to it. We should not, by law, abridge a man’s right either to labor or to quit his employment. However, neither labor nor capital should at any time or in any circumstance take action that would put in jeopardy the public welfare.”
“We need a definite and precise statement of policy as to what business men and workingmen may do and may not do by way of combination and collective action. The law is now so nebulous that it almost turns upon the economic predilections of judge or jury. This does not make for confidence in the courts nor respect for the laws, nor for a healthy activity in production and distribution. There surely will be found ways by which coöperation may be encouraged without the destruction of enterprise. The rules of business should be made more certain so that on a stable basis men may move with confidence.”