g monopoly. Sec. 6. Economies of large
production favoring monopoly, Sec. 7. Uniformity of products favoring
monopoly. Sec. 8. Franchises favoring monopoly. Sec. 9. Various policies
toward local public service industries. Sec. 10. State ownership of various
kinds. Sec. 11. National ownership. Sec. 12. Economic basis of public
ownership.

Sec. 1. #Waves of opinion as to public ownership.# Opinion and practice
in the matter of the public ownership of wealth and the direct
management of enterprises has moved in waves. In feudal times, when
government was practically identical with the personal ruler, and
the private "domains" of the lord or king were the sole source of
his public revenues,[1] holdings of this kind were very large. Their
public nature came to be more fully recognized, but they did not yield
large revenues, and gradually were in large part sold or given away to
private owners. This was particularly true in England, and in a less
degree on the continent of Europe. The conviction grew that the state,
or government, was an inefficient enterpriser, and that the sound
public policy was to foster private industry and obtain public
revenues by taxation. The ideal was embodied in the _laissez-faire_
philosophy that government should confine itself exclusively to the
most essential political functions, leaving the economic functions
absolutely alone. It should keep the peace, prevent men from beating
and robbing each other, and preserve the personal liberty of the
citizen.[2] Thus, it was believed, all of the economic needs would be
provided for by competition, in the best way humanly possible, in the
quantities and at the rate needed. This policy attained its maximum
influence in the first half of the nineteenth century in England, and
in America probably just before the Civil War, in the decade of the
fifties.

Sec. 2. #Primary functions of government favoring public ownership#. Some
public ownership, however, is necessary for the exercise even of
the primary political functions of the state. Civilized government
requires the use of numerous material agents. Buildings for
legislative and executive offices, custom-houses, post-offices,
lighthouses, can be rented of private citizens, as post-offices
usually are in small places; but it is obviously economical and
convenient in large cities for the government to own the public
buildings. Government can reduce to a minimum its direct employment
of officia