Sec. 3. General extension of Paternal Government.—The class of measures with which we have dealt recognizes that children, women, and in some cases men, are unable to look after their own interests as industrial workers, and require the aid of paternal legislation. But it must not be forgotten that the century has seen the growth of another long series of legislative Acts based also on the industrial weakness of the individual, and designed to protect society in general, adult or young, educated or uneducated, rich or poor. Among these come Adulteration Acts, Vaccination Acts, Contagious Diseases Acts, and the network of sanitary legislation, Acts for the regulation of weights and measures, and for the inspection of various commodities, licenses for doctors, chemists, hawkers, &c. Many of these are based on ancient historic precedents; we have grown so accustomed to them, and so thoroughly recognize the value of most of them, that it seems almost unnecessary to speak of them as socialistic measures. Yet such they are, and all of them are objected to upon this very ground by men of the political school of Mr. Herbert Spencer and Mr. Auberon Herbert. For it should be noted—
1. Each of these Acts interferes with the freedom of the individual. It compels him to do certain things—e.g. vaccinate his children, admit inspectors on his premises—and it forbids him to do certain other things.
2. Most of these Acts limit the utility to the individual of his capital, by forbidding him to employ it in certain ways, and hampering him with various restrictions and expenses. The State, or municipality, in certain cases—e.g. railways and cabs—even goes so far as to fix prices.
Sec. 4. State and Municipal Undertakings.—But the State does not confine itself to these restrictive or prohibitive measures, interfering with the free individual application of capital and labour, in the interests of other individuals, or of society at large. The State and the municipality is constantly engaged in undertaking new branches of productive work, thus limiting the industrial area left open to the application of private capitalist enterprise.
In some cases these public works exist side by side in competition with private enterprise; as, for example, in the carriage of parcels, life insurance, banking, and the various minor branches of post-office work, in medical attendance, and the maintenance of national education, and of places of amusement and recreation. In other cases it claims an absolute monopoly, and shuts off entirely private enterprise, as in the conveyance of letters and telegrams, and the local industries connected with the production and distribution of gas and water. The extent and complexity of that portion of our State and municipal machinery which is engaged in productive work will be understood from the following description—