First: Where they are profitable, and their profits are absorbed by the public treasury. In this case the interests of the shippers and passengers are being sacrificed to those of the state. This is the case in Prussia.

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The ministerial plan was adopted.

It is estimated that 63 per cent. of New Zealand families own property of £100 and above; and it is probable that 75 per cent. of the families own somekind of property. A number of small properties are exempt from taxation. Those who are without property are young people earning large salaries who, with health and a fair chance, will achieve a good position in life.

These figures drew the following criticism from the secretary:

The land laws have not only increased the number of proprietors, but, although they have had a Socialist aim, they have actually brought about anti-socialist results, since they serve to encourage the system of private ownership.

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The workmen employed in the National Printing Office complain that the shops in the Rue Vieille-du-Temple are in reality so many prisons, and that, deprived of air and light, they are working under the worst possible conditions. A reporter sent out by the gives the following description of these shops:

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“We can bear witness that the underground urban system of Paris is in a deplorable condition. It is given neither supervision nor methodical attention. Repairs are made in haste and without proper oversight. The currents passing through electrical conductors are intercepted in the passage and diverted from their cables without any plan and without technical precautions. Then the cables themselves are punctured, perforated, and crushed in the conduits without any attention being paid to the matter. Entire cables have been abandoned. Certain cables have been dug up or have disappeared under rubbish without any one having any recollection of their being there. In this particular service negligence has reached incredible proportions.”

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All attempts to give “a business organization” to government enterprises are condemned to failure in advance. Either such undertakings will languish under an abuse of control which would impede action, or,while operating in full liberty, they will fall into moral and financial disorder. And let it not be forgotten that stagnation and disorder far from nullifying frequently reinforce each other.

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The question has been asked: How can a bond issue of 300,000,000 francs have any influence upon a market of 22,000,000,000 francs? But there are not 22,000,000,000 francs in circulation. A portion of this sum is tied up in savings banks, insurance companies, benevolent associations, the property of minors, etc. There is only a limited amount left to bear the entire weight of this issue of state railway bonds. The 4 per cent. bonds, issued at 503 francs, have remained at about this figure.

. Such is the true result of the efforts of municipal Socialists in England.

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When a good business man sees his business increasing he is careful to devote a part of his profits to the improvement of his methods of production. The Tobacco department was able to show, in 1902, 421,000,000 francs in gross receipts; in 1903, 435,000,000; in 1904, 448,000,000 francs. But the general budget was short. It therefore absorbed the whole sum, instead of setting something aside to improve the equipment of this special fiscal monopoly. Just at this time, and when the consumption of tobacco was steadily increasing, the working hours of the laborers in the tobacco factories were reduced from 10 to 9. As a result, there was a 10 per cent. loss of production. The equipment was in no position to offset this labor loss; hence the deficiency.