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ownership by the American states has been much less marked than that
by the municipalities. The commonwealths have retired from some fields
where once they were engaged in industry. Students of American history
know that between the years 1830 and 1840 some states engaged largely,
even wildly, in canal building, railroad construction, banking and in
other enterprises. The undertaking of these industries was determined
often by political and by selfish local interests, and their operation
often was wasteful. A few enterprises succeeded, the most notable of
these being the Erie Canal in New York. The unsuccessful ones remained
worthless property in the hands of the state or were sold to private
companies, as in the case of the Pennsylvania Railroad. This reckless
state enterprise was a bitter lesson in public ownership, and
continued for three quarters of a century to have such an effect on
public opinion, that few proposals for public ownership could have a
fair hearing in America, But railroads and canals are publicly owned,
and more or less successfully operated, by many foreign states, as in
Prussia and other German states, in Switzerland, and in the new states
of Australia, and this policy is rapidly extending to other countries
and to varied industries.

There has been recently a greatly increased interest in forestry
shown by the American states. This is especially likely to be a state
enterprise wherever the forest tracts are entirely within the limits
of the state, as is the case in New York and Pennsylvania which
have been foremost in this work. At present at least 32 states have
forestry departments. Most of the forests in Germany are either
communal or state-owned. The schools, a great industry for turning
out a product of public utility, are largely conducted by the American
states and by local units rather than by the nation or by private
enterprise. The state encourages researches in the arts and sciences,
and gives technical training. A variety of minor enterprises have been
undertaken by states to supply salt, phosphate, banking facilities,
even some manufactures. One after another the states are adopting the
"state use" system of labor in the prisons and public institutions,
engaging in agriculture and manufacturing on a large scale, and
using the products, amounting to millions of dollars annually, almost
entirely for public purposes.

Sec. 11. #National ownership#. The national governments everywhe