Carnegie Endowment for International Peace

DIVISION OF ECONOMICS AND HISTORY

JOHN BATES CLARK, DIRECTOR

PRELIMINARY ECONOMIC STUDIES OF THE WAR

EDITED BY

DAVID KINLEY

Professor of Political Economy, University of Illinois
Member of Committee of Research of the Endowment

No. 8

BRITISH WAR ADMINISTRATION

BY

JOHN A. FAIRLIE

Professor of Political Science, University of Illinois

NEW YORK

OXFORD UNIVERSITY PRESS

AMERICAN BRANCH: 35 WEST 32ND STREET

LONDON, TORONTO, MELBOURNE, AND BOMBAY

1919

ATIONAL PEACE

D. C.

EDITO

This study of British War
is one of a series of war
Endowment for Internation
for future more thorough
economic and social life. It
the distractions of the war a
returned to normal condition
more exactly and estimate m
the war in the administratio
the extent to which these cha
superficial view and a hasty
world has taken great strides
It is not surprising that the
extension of government activ
should be strengthened in wa
number of people who are imp
of the management by govern
tries for the purposes of the w
socialism are not to be classed
socialists, but rather belong to
people, to be found in a cons
democracy, who are overimpr
of a new political or social ex
definite conditions, with pretty
get that the economic and socia
complex and difficult to adjust
than it is in time of war, wher
and commercial activities of the
and limited in number. Such
splendid success which the Brit
of its wartime administrative e

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DITOR'S PREFACE

h War Administration by Professor Fairlie E war studies organized by the Carnegie -national Peace to lay a preliminary basis ough study of the effects of the war on ife. It is hoped at some later time, after e war are over, and the lives of men have onditions, that we shall be able to measure nate more carefully the changes induced by istration of governments, and particularly ese changes are likely to be permanent. A a hasty judgment would indicate that the strides in the direction of state socialism. hat the demand of the socialists for an ent activities in the sphere of economic life 1 in war time by the added call of a large are impressed with the apparent efficiency government departments of certain indusof the war. These new advocates of state classed with what we may call professional elong to that large class of the American

a considerable number in any intelligent verimpressed with the temporary success social experiment carried on under pretty h pretty definite ends in view. They fornd social life of the people is vastly more > adjust in normal times of peace activity ar, when many of the ordinary industrial es of the world are much reduced in scope r. Such people are impressed with the the British Government has had in many trative expedients and organizations.

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s of economic life r have been much rative devices and = also disappeared =of the war, they in the succeeding arrower economic ation.

found a scientific between private In a democracy try and trade are inherent conflict acy that does not uming, of course, when the people nit and so to lay se their manifold o achieve a single ance at any rate, y consolidate and ation and concenOcracy. But such he choice of the y temporary. In on the people and

at Britain and the e abandoned the ndividual citizenose, the failure of pursuit of these

hat as a result of

at some of these

ual citizen can be the economic ac

nmunity at large,

through government agencies, of
may conclude, as a result of our
through government agencies so
fore been wholly individualistic in
that only if we are convinced th
mental activity will conserve the
inherited from our fathers, which
while at the same time adding s
perity of individuals, or diversif
life of the individual citizen.

But such a condition will be fa
who clamor most loudly for gover
sphere seem to forget that after al
society, so far as concerns the enj
fare, is the individual. There is
perous community excepting in the
prosperous individuals; and there
prosperous community except by r
perous. This does not mean that
need to become economically bette
result as well from improved distri
duction. In short, government a
greater prosperity. If we were to
it would soon show, outside of
weaknesses far greater than any th
vidualistic system. The people of
United States need to proceed wit
nent, or in permitting to continue
the important extensions of govern
economic sphere which have been m
of the war. Especially should the
be on their guard against the cont
extension of the activities of the
many bureaus.

Professor Fairlie's study was mad
the pr
purpose of making a historical re
and he has limited his inquiry princ

EDITOR'S PREFACE

through government agencies, on the other. That is to say, we may conclude, as a result of our war administration, to operate through government agencies some industries that have heretofore been wholly individualistic in their management. We will do that only if we are convinced that such an extension of governmental activity will conserve the political freedom which we have inherited from our fathers, which is, after all, of first importance, while at the same time adding something to the economic prosperity of individuals, or diversifying more richly the economic life of the individual citizen.

But such a condition will be far from state socialism. Those who clamor most loudly for governmental action in the economic sphere seem to forget that after all the only important element in society, so far as concerns the enjoyment of prosperity and welfare, is the individual. There is no such thing as a more prosperous community excepting in the sense of a community of more prosperous individuals; and there is no way of securing a more prosperous community except by making individuals more prosperous. This does not mean that all individuals in a community need to become economically better off. The improvement may resuit as well from improved distribution as from improved production. In short, government action is not a talisman for greater prosperity. If we were to adopt it on a wholesale scale it would soon show, outside of certain very limited spheres, weaknesses far greater than any that have developed in an individualistic system. The people of Great Britain and of the United States need to proceed with caution in making permanent, or in permitting to continue for too long a time, any of the important extensions of government administration into the economic sphere which have been made because of the necessities of the war. Especially should the people of the United States be on their guard against the continuance of the far-reaching extension of the activities of the federal government and its many bureaus.

Professor Fairlie's study was made, of course, principally for the purpose of making a historical record of the facts in the case, and he has limited his inquiry principally to the agencies of the

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