.
'Numbers' -- Its Nature, Cause, Cure |
| [Reprinted from The
Freeman, March, 1939] |
"The law," said Mr. Bumble in "Oliver Twist," "is
a ass, a idiot."
Nowhere is this more amply demonstrated than in the trials of James J.
Hines in New York City. I do not refer to the legal technicality upon
which Justice Pecora ruled a mistrial at a most inauspicious time for
the gubernatorial ambitions of District Attorney Thomas E. Dewey, or to
the other judicial comedy with which the fracas abounded. I go back to
the laws against gambling which Hines is accused of having conspired to
violate.
Laws passed against human acts which are not innately criminal invite
violation. Attempts to circumvent these laws make "protection"
a purveyable privilege. Violators who do not pay politicians for "protection"
are prosecuted and stopped. Those who do pay enjoy a monopoly of the
illegal practises. Thus, supposed vices legislated against are
themselves not checked and a new and worse social vice is born --
political corruption and the crippling of all law enforcement. Laws
against vice breed racketeers.
The "numbers" racket is an excellent demonstration. According
to Dewey's opening statement to the jury during the first trial, policy
(on "numbers") was but a small game in the 1920's. It was
played largely among the poorer classes of the city, being made up of
penny, two-cent, nickel and dime bets.
"In the summer of 1931," Dewey related, "Dutch Schultz
decided to make policy a racket."
Now, Dutch Schultz was the product of another attempt by law to
regulate the morals of the people. He had been a bootlegger. To make
these small gambling games into a racket, he used his proven strong-arm
methods -- gunmen, guerrillas, beatings and murder. But these methods
were only incidental to the power of the law which he invoked.
A raid upon one of the "banks" was an expensive business. By
Dutch Schultz's collusion with public officials, "banks"
raided would have their cases dismissed. Those not in with the gang, not
paying for protection, would not have their cases dismissed.
Consequently the only safe places with which to bet were those afforded
political protection. This was a tremendous monopoly advantage to the
racketeer.
Hines was the man who made this great lottery racket possible, by his
political protection, Dewey charged. But what Dewey did not reveal was
that by putting anti-gambling laws on the statute books the people had
given Hines an extra-legal privilege to sell. "Protection" is
a vendable value created by law. Schultz and his mobsters would, except
for these laws, be nothing but thugs and murderers and subject to
punishment. Without privileged protection they would, as professional
gamblers, have to meet the competition of other professional gamblers
seeking to serve the gambling public.
Laws against practises not popularly recognized as wrongs are at best
fraught with danger. "The wise know," said Emerson, "that
the state must follow and not lead the character and progress of the
citizen." That the petty gambling of "numbers" is not
regarded as morally wrong is evidenced by the thousands of people in all
walks of life who play. Dewey himself referred to "the hundreds of
thousands or millions of players." Millions engaged in a wrongful
practise do not make it right. But can the question of individuals'
gambling their earnings among themselves be a legitimate concern of
government? Are not laws against gambling violations of the right of men
to dispose of their products as they see fit, provided they do not
infringe upon the equal rights of others? The right to err is as
essential to progress as it is to freedom.
To end 'the evils of political corruption that grow out of the "numbers"
racket there is one universally applicable method: Repeal the laws
against gambling. Such repeal would not stop gambling but it would stop
the exploitation, by law-created leaches, of the innocent folks who
desire to wager their earnings. So long as poverty persists the poor
will doubtless risk their little on the chance they may win, even if the
odds are prohibitely against them. A few pennies dropped into the
jack-pot will never be missed, and "I can dream, can't I?"
Without laws against gambling, any person could gamble to his heart's
content without interference of law enforcement agencies. People who do
not wish to are under no compulsion to gamble. Professionals who provide
the mechanisms for others to gamble would be free to do so. They would
be paid for their services in this uneconomic field by those who desired
their services. Some individuals would lose their bets; others would
gain. But corruption of government would not be invited. With no law
against gambling, the would-be racketeer would have to resort to illegal
strong-arm methods. And he could be dealt with according to his acts. He
could not use the law as a lever to advance his own ends. He could not
buy legal immunity while the law was being enforced against
non-protected individuals.
Not all forms of gambling, of course, are of the non-economic,
non-social character of "numbers" betting. This kind of
betting is but one expression, and a minor one, of that larger spirit of
speculation which animates all people "whose desires are never
satisfied" and "who seek to gratify their desires with the
least effort."
Essentially there are three modes of gambling or speculation:
- Games of pure chance or skill as between individuals. Playing
marbles "for keeps," poker, horse racing, and other forms
of gambling for the pleasure of the gamblers and profit of some of
them, merely reasserts existing wealth among the participants. It
neither increases nor decreases the amount of wealth in existence
except as there may be some expense attached to carrying on the
games -- the "cut of the ... house"
- Speculation in the products of labor -- buying or selling with
expectation of profiting by a rise or fall in price. Gambling, or
speculation, in a product of labor can have no ill economic effects
over a period of time, since any orgy of speculation that would make
prices soar, or create a corner, is checked by the increased
production of that product, or the lessening of its use. The
tendency of speculation in labor products is always to stimulate
production, and to bring producers together in the readier exchange
of their products.
- Speculation in land sites and natural resources. This is gambling
of a different stripe. There is no check to the speculative advance
of rent except as labor and capital lessen production, thus
lessening the demand for land. This means depression, unemployment,
poverty. When a land speculator loses, the winner is another land
speculator -- as, for instance, the bank which forecloses on the
mortgage. When the land speculator wins, the public loses, for his
winnings represents the higher rent-tribute we must pay him for the
privilege of working.
In fact, it is the result of this last form of gambling - poverty --
which is at bottom the primary cause of the chances taken by poor people
with their meagre earnings. The despair of ever getting above their
condition of economic slavery prompts them to risk their much-needed
pennies on what they know to be a fraudulent game. The hope that they
may win the golden pot -- as somebody in their midst did last week --
blinds them to every reasonable argument. Maybe --
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