problem in terms
of the Aristotelian classification of constitutions. The highly
abstract dialectics as to "enterprise," "initiative," "bureaucracy,"
"red tape," "democratic control," "state management," which fill the
press of countries occupied with industrial problems, really belong to
the dark ages of economic thought. The first task of the student,
whatever his personal conclusions, is, it may be suggested, to
contribute what he can to the restoration of sanity by insisting that
instead of the argument being conducted with the counters of a highly
inflated and rapidly depreciating verbal currency, the exact situation,
{117} in so far as is possible, shall be stated as it is; uncertainties
(of which there are many) shall be treated as uncertain, and the
precise meaning of alternative proposals shall be strictly defined.
Not the least of the merits of Mr. Justice Sankey's report was that, by
stating in great detail the type of organization which he recommended
for the Coal Industry, he imparted a new precision and reality into the
whole discussion. Whether his conclusions are accepted or not, it is
from the basis of clearly defined proposals such as his that the future
discussion of these problems must proceed. It may not find a solution.
It will at least do something to create the temper in which alone a
reasonable solution can be sought.

Nationalization, then, is not an end, but a means to an end, and when
the question of ownership has been settled the question of
administration remains for solution. As a means it is likely to be
indispensable in those industries in which the rights of private
proprietors cannot easily be modified without the action of the State,
just as the purchase of land by county councils is a necessary step to
the establishment of small holders, when landowners will not
voluntarily part with their property for the purpose. But the object
in purchasing land is to establish small holders, not to set up farms
administered by state officials; and the object of nationalizing mining
or railways or the manufacture of steel should not be to establish any
particular form of state management, but to release those who do
constructive work from the control of those whose sole interest is
pecuniary gain, in order that they may be free to {118} apply their
energies to the true purpose of industry, which is the provision of
service, not the provision of dividends. When the transference of
property