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I,Pencil
MyFamilyTreeastoldtoLeonardE.Read
Iamaleadpencil—theordinarywoodenpencilfamiliartoallboysandgirlsandadultswhocanreadandwrite.*
Writingisbothmyvocationandmyavocation;that’sallIdo.
YoumaywonderwhyIshouldwriteagenealogy.Well,tobeginwith,mystoryisinteresting.And,next,Iamamystery—moresothanatreeorasunsetorevenaflashoflightning.But,sadly,Iamtakenforgrantedbythosewhouseme,asifIwereamereincidentandwithoutbackground.Thissuperciliousattituderelegatesmetothelevelofthecommonplace.Thisisaspeciesofthegrievouserrorinwhichmankindcannottoolongpersistwithoutperil.For,thewiseG.K.Chestertonobserved,“Weareperishingforwantofwonder,notforwantofwonders.”
I,Pencil,simplethoughIappeartobe,merityourwonderandawe,aclaimIshallattempttoprove.Infact,ifyoucanunderstandme—no,that’stoomuchtoaskofanyone—ifyoucanbecomeawareofthemiraculousnesswhichIsymbolize,youcanhelpsavethefreedommankindissounhappilylosing.Ihaveaprofoundlessontoteach.AndIcanteachthislessonbetterthancananautomobileoranairplaneoramechanicaldishwasherbecause—well,becauseIamseeminglysosimple.
Simple?Yet,notasinglepersononthefaceofthisearthknowshowtomakeme.Thissoundsfantastic,doesn’tit?Especiallywhenitisrealizedthatthereareaboutoneandone-halfbillionofmykindproducedintheU.S.A.eachyear.
Pickmeupandlookmeover.Whatdoyousee?Notmuchmeetstheeye—there’ssomewood,lacquer,theprintedlabeling,graphitelead,abitofmetal,andaneraser.
InnumerableAntecedents
Justasyoucannottraceyourfamilytreebackveryfar,soisitimpossibleformetonameandexplainallmyantecedents.ButIwouldliketosuggestenoughofthemtoimpressuponyoutherichnessandcomplexityofmybackground.
Myfamilytreebeginswithwhatinfactisatree,acedarofstraightgrainthatgrowsinNorthernCaliforniaandOregon.Nowcontemplateallthesawsandtrucksandropeandthecountlessothergearusedinharvestingandcartingthecedarlogstotherailroadsiding.Thinkofallthepersonsandthenumberlessskillsthatwentintotheirfabrication:theminingofore,themakingofsteelanditsrefinementintosaws,axes,motors;thegrowingofhempandbringingitthroughallthestagestoheavyandstrongrope;theloggingcampswiththeirbedsandmesshalls,thecookeryandtheraisingofallthefoods.Why,untoldthousandsofpersonshadahandineverycupofcoffeetheloggersdrink!
ThelogsareshippedtoamillinSanLeandro,California.Canyouimaginetheindividualswhomakeflatcarsandrailsandrailroadenginesandwhoconstructandinstallthecommunicationsystemsincidentalthereto?Theselegionsareamongmyantecedents.
ConsiderthemillworkinSanLeandro.Thecedarlogsarecutintosmall,pencil-lengthslatslessthanone-fourthofaninchinthickness.Thesearekilndriedandthentintedforthesamereasonwomenputrougeontheirfaces.PeoplepreferthatIlookpretty,notapallidwhite.Theslatsarewaxedandkilndriedagain.Howmanyskillswentintothemakingofthetintandthekilns,intosupplyingtheheat,thelightandpower,thebelts,motors,andalltheotherthingsamillrequires?Sweepersinthemillamongmyancestors?Yes,andincludedarethemenwhopouredtheconcreteforthedamofaPacificGas&ElectricCompanyhydroplantwhichsuppliesthemill’spower!
Don’toverlooktheancestorspresentanddistantwhohaveahandintransportingsixtycarloadsofslatsacrossthenation.
Onceinthepencilfactory—$4,000,000inmachineryandbuilding,allcapitalaccumulatedbythriftyandsavingparentsofmine—eachslatisgiveneightgroovesbyacomplexmachine,afterwhichanothermachinelaysleadsineveryotherslat,appliesglue,andplacesanotherslatatop—aleadsandwich,sotospeak.SevenbrothersandIaremechanicallycarvedfromthis“wood-clinched”sandwich.
My“l(fā)ead”itself—itcontainsnoleadatall—iscomplex.ThegraphiteisminedinCeylon.Considertheseminersandthosewhomaketheirmanytoolsandthemakersofthepapersacksinwhichthegraphiteisshippedandthosewhomakethestringthattiesthesacksandthosewhoputthemaboardshipsandthosewhomaketheships.Eventhelighthousekeepersalongthewayassistedinmybirth—andtheharborpilots.
ThegraphiteismixedwithclayfromMississippiinwhichammoniumhydroxideisusedintherefiningprocess.Thenwettingagentsareaddedsuchassulfonatedtallow—animalfatschemicallyreactedwithsulfuricacid.Afterpassingthroughnumerousmachines,themixturefinallyappearsasendlessextrusions—asfromasausagegrinder-cuttosize,dried,andbakedforseveralhoursat1,850degreesFahrenheit.ToincreasetheirstrengthandsmoothnesstheleadsarethentreatedwithahotmixturewhichincludescandelillawaxfromMexico,paraffinwax,andhydrogenatednaturalfats.
Mycedarreceivessixcoatsoflacquer.Doyouknowalltheingredientsoflacquer?Whowouldthinkthatthegrowersofcastorbeansandtherefinersofcastoroilareapartofit?Theyare.Why,eventheprocessesbywhichthelacquerismadeabeautifulyellowinvolvetheskillsofmorepersonsthanonecanenumerate!
Observethelabeling.That’safilmformedbyapplyingheattocarbonblackmixedwithresins.Howdoyoumakeresinsandwhat,pray,iscarbonblack?
Mybitofmetal—theferrule—isbrass.Thinkofallthepersonswhominezincandcopperandthosewhohavetheskillstomakeshinysheetbrassfromtheseproductsofnature.Thoseblackringsonmyferruleareblacknickel.Whatisblacknickelandhowisitapplied?Thecompletestoryofwhythecenterofmyferrulehasnoblacknickelonitwouldtakepagestoexplain.
Thenthere’smycrowningglory,inelegantlyreferredtointhetradeas“theplug,”thepartmanusestoerasetheerrorshemakeswithme.Aningredientcalled“factice”iswhatdoestheerasing.Itisarubber-likeproductmadebyreactingrape-seedoilfromtheDutchEastIndieswithsulfurchloride.Rubber,contrarytothecommonnotion,isonlyforbindingpurposes.Then,too,therearenumerousvulcanizingandacceleratingagents.ThepumicecomesfromItaly;andthepigmentwhichgives“theplug”itscoloriscadmiumsulfide.
NoOneKnows
Doesanyonewishtochallengemyearlierassertionthatnosinglepersononthefaceofthisearthknowshowtomakeme?
Actually,millionsofhumanbeingshavehadahandinmycreation,nooneofwhomevenknowsmorethanaveryfewoftheothers.Now,youmaysaythatIgotoofarinrelatingthepickerofacoffeeberryinfaroffBrazilandfoodgrowerselsewheretomycreation;thatthisisanextremeposition.Ishallstandbymyclaim.Thereisn’tasinglepersoninallthesemillions,includingthepresidentofthepencilcompany,whocontributesmorethanatiny,infinitesimalbitofknow-how.Fromthestandpointofknow-howtheonlydifferencebetweentheminerofgraphiteinCeylonandtheloggerinOregonisinthetypeofknow-how.Neithertheminernortheloggercanbedispensedwith,anymorethancanthechemistatthefactoryortheworkerintheoilfield—paraffinbeingaby-productofpetroleum.
Hereisanastoundingfact:Neithertheworkerintheoilfieldnorthechemistnorthediggerofgraphiteorclaynoranywhomansormakestheshipsortrainsortrucksnortheonewhorunsthemachinethatdoestheknurlingonmybitofmetalnorthepresidentofthecompanyperformshissingulartaskbecausehewantsme.Eachonewantsmeless,perhaps,thandoesachildinthefirstgrade.Indeed,therearesomeamongthisvastmultitudewhoneversawapencilnorwouldtheyknowhowtouseone.Theirmotivationisotherthanme.Perhapsitissomethinglikethis:Eachofthesemillionsseesthathecanthusexchangehistinyknow-howforthegoodsandservicesheneedsorwants.Imayormaynotbeamongtheseitems.
NoMasterMind
Thereisafactstillmoreastounding:theabsenceofamastermind,ofanyonedictatingorforciblydirectingthesecountlessactionswhichbringmeintobeing.Notraceofsuchapersoncanbefound.Instead,wefindtheInvisibleHandatwork.ThisisthemysterytowhichIearlierreferred.
Ithasbeensaidthat“onlyGodcanmakeatree.”Whydoweagreewiththis?Isn’titbecausewerealizethatweourselvescouldnotmakeone?Indeed,canweevendescribeatree?Wecannot,exceptinsuperficialterms.Wecansay,forinstance,thatacertainmolecularconfigurationmanifestsitselfasatree.Butwhatmindisthereamongmenthatcouldevenrecord,letalonedirect,theconstantchangesinmoleculesthattranspireinthelifespanofatree?Suchafeatisutterlyunthinkable!
I,Pencil,amacomplexcombinationofmiracles:atree,zinc,copper,graphite,andsoon.ButtothesemiracleswhichmanifestthemselvesinNatureanevenmoreextraordinarymiraclehasbeenadded:theconfigurationofcreativehumanenergies—millionsoftinyknow-howsconfiguratingnaturallyandspontaneouslyinresponsetohumannecessityanddesireandintheabsenceofanyhumanmaster-minding!SinceonlyGodcanmakeatree,IinsistthatonlyGodcouldmakeme.Mancannomoredirectthesemillionsofknow-howstobringmeintobeingthanhecanputmoleculestogethertocreateatree.
TheaboveiswhatImeantwhenwriting,“IfyoucanbecomeawareofthemiraculousnesswhichIsymbolize,youcanhelpsavethefreedommankindissounhappilylosing.”For,ifoneisawarethattheseknow-howswillnaturally,yes,automatically,arrangethemselvesintocreativeandproductivepatternsinresponsetohumannecessityanddemand—thatis,intheabsenceofgovernmentaloranyothercoercivemasterminding—thenonewillpossessanabsolutelyessentialingredientforfreedom:afaithinfreepeople.Freedomisimpossiblewithoutthisfaith.
Oncegovernmenthashadamonopolyofacreativeactivitysuch,forinstance,asthedeliveryofthemails,mostindividualswillbelievethatthemailscouldnotbeefficientlydeliveredbymenactingfreely.Andhereisthereason:Eachoneacknowledgesthathehimselfdoesn’tknowhowtodoallthethingsincidenttomaildelivery.Healsorecognizesthatnootherindividualcoulddoit.Theseassumptionsarecorrect.Noindividualpossessesenoughknow-howtoperformanation’smaildeliveryanymorethananyindividualpossessesenoughknow-howtomakeapencil.Now,intheabsenceoffaithinfreepeople—intheunawarenessthatmillionsoftinyknow-howswouldnaturallyandmiraculouslyformandcooperatetosatisfythisnecessity—theindividualcannothelpbutreachtheerroneousconclusionthatmailcanbedeliveredonlybygovernmental“master-minding.”
TestimonyGalore
IfI,Pencil,weretheonlyitemthatcouldoffertestimonyonwhatmenandwomencanaccomplishwhenfreetotry,thenthosewithlittlefaithwouldhaveafaircase.However,thereistestimonygalore;it’sallaboutusandoneveryhand.Maildeliveryisexceedinglysimplewhencompared,forinstance,tothemakingofanautomobileoracalculatingmachineoragraincombineoramillingmachineortotensofthousandsofotherthings.Delivery?Why,inthisareawheremenhavebeenleftfreetotry,theydeliverthehumanvoicearoundtheworldinlessthanonesecond;theydeliveraneventvisuallyandinmotiontoanyperson’shomewhenitishappening;theydeliver150passengersfromSeattletoBaltimoreinlessthanfourhours;theydelivergasfromTexastoone’srangeorfurnaceinNewYorkatunbelievablylowratesandwithoutsubsidy;theydelivereachfourpoundsofoilfromthePersianGulftoourEasternSeaboard—halfwayaroundtheworld—forlessmoneythanthegovernmentchargesfordeliveringaone-ounceletteracrossthestreet!
ThelessonIhavetoteachisthis:Leaveallcreativeenergiesuninhibited.Merelyorganizesocietytoactinharmonywiththislesson.Letsociety’slegalapparatusremoveallobstaclesthebestitcan.Permitthesecreativeknow-howsfreelytoflow.HavefaiththatfreemenandwomenwillrespondtotheInvisibleHand.Thisfaithwillbeconfirmed.I,Pencil,seeminglysimplethoughIam,offerthemiracleofmycreationastestimonythatthisisapracticalfaith,aspracticalasthesun,therain,acedartree,thegoodearth.
*Myofficialnameis“Mongol482.”Mymanyingredientsareassembled,fabricated,andfinishedbyEberhardFaberPencilCompany.
LeonardE.Read(1898-1983)foundedFEEin1946andservedasitspresidentuntilhisdeath.
“I,Pencil,”hismostfamousessay,wasfirstpublishedintheDecember1958issueofTheFreeman.Althoughafewofthemanufacturingdetailsandplacenameshavechangedoverthepastfortyyears,theprinciplesareunchanged.
Introduction,byMiltonFriedman
LeonardRead’sdelightfulstory,“I,Pencil,”hasbecomeaclassic,anddeservedlyso.Iknowofnootherpieceofliteraturethatsosuccinctly,persuasively,andeffectivelyillustratesthemeaningofbothAdamSmith’sinvisiblehand—thepossibilityofcooperationwithoutcoercion—andFriedrichHayek’semphasisontheimportanceofdispersedknowledgeandtheroleofthepricesystemincommunicatinginformationthat“willmaketheindividualsdothedesirablethingswithoutanyonehavingtotellthemwhattodo.”
WeusedLeonard’sstoryinourtelevisionshow,“FreetoChoose,”andintheaccompanyingbookofthesametitletoillustrate“thepowerofthemarket”(thetitleofboththefirstsegmentoftheTVshowandofchapteroneofthebook).Wesummarizedthestoryandthenwentontosay:
“Noneofthethousandsofpersonsinvolvedinproducingthepencilperformedhistaskbecausehewantedapencil.Someamongthemneversawapencilandwouldnotknowwhatitisfor.Eachsawhisworkasawaytogetthegoodsandserviceshewanted—goodsandservicesweproducedinordertogetthepencilwewanted.Everytimewegotothestoreandbuyapencil,weareexchangingalittlebitofourservicesfortheinfinitesimalamountofservicesthateachofthethousandscontributedtowardproducingthepencil.
“Itisevenmoreastoundingthatthepencilwaseverproduced.Noonesittinginacentralofficegaveorderstothesethousandsofpeople.Nomilitarypoliceenforcedtheordersthatwerenotgiven.Thesepeopleliveinmanylands,speakdifferentlanguages,practicedifferentreligions,mayevenhateoneanother—yetnoneofthesedifferencespreventedthemfromcooperatingtoproduceapencil.Howdidithappen?AdamSmithgaveustheanswertwohundredyearsago.”
“I,Pencil”isatypicalLeonardReadproduct:imaginative,simpleyetsubtle,breathingtheloveoffreedomthatimbuedeverythingLeonardwroteordid.Asintherestofhiswork,hewasnottryingtotellpeoplewhattodoorhowtoconductthemselves.Hewassimplytryingtoenhanceindividuals’understandingofthemselvesandofthesystemtheylivein.
Thatwashisbasiccredoandonethathestucktoconsistentlyduringhislongperiodofservicetothepublic—notpublicserviceinthesenseofgovernmentservice.Whateverthepressure,hestucktohisguns,refusingtocompromisehisprinciples.Thatwaswhyhewassoeffectiveinkeepingalive,intheearlydays,andthenspreadingthebasicideathathumanfreedomrequiredprivateproperty,freecompetition,andseverelylimitedgovernment.
ProfessorFriedman,the1976NobelistinEconomicScience,isSeniorResearchFellowattheHooverInstitution,Stanford,California.
Afterword,byDonaldJ.Boudreaux
Therearetwokindsofthinking:simplisticandsubtle.Simplisticthinkerscannotunderstandhowcomplexandusefulsocialordersarisefromanysourceotherthanconsciousplanningbyapurposefulmind.Subtlethinkers,incontrast,understandthatindividualactionsoftenoccurwithinsettingsthatencourageindividualstocoordinatetheiractionswithoneanotherindependentofanyoverarchingplan.F.A.Hayekcalledsuchunplannedbutharmoniouscoordination“spontaneousorder.”
Themarkofthesubtlemindisnotonlyitsabilitytograsptheideaofspontaneousordersbutalsotounderstandthatconsciousattemptstoimproveortomimictheseordersaredoomedtofail.“Whyso?”asksthesimplisticthinker.“Howcanhappenstancegeneratecomplexordersuperiortowhataconsciousmindcanconceiveandimplement?”Inrespondingtothisquestion,asubtlethinkerpointsoutthatspontaneousordersdonotarisefromhappenstance:thecontinualadjustmentsbyeachindividualwithinspontaneousordersfollowaverystrictlogic—thelogicofmutualaccommodation.Becausenocentralplannercanpossiblyknowallofthedetailsofeachindividual’suniquesituation,nocentralplannercanknowhowbesttoarrangeeachandeveryactionofeachandeveryindividualwiththatofthemultitudesofotherindividuals.
Intheeighteenthcentury,ahandfulofscholars—mostnotablyDavidHumeandAdamSmith—developedasubtleunderstandingofhowprivatepropertyrightsencourageself-regardingproducersandconsumerstoactinmutuallybeneficialways.Spontaneousorderingforceswerethusdiscovered,andwiththisdiscoverymoderneconomicsbegantotakeshape.
Overthenexttwocenturieseconomicsachievedenormoussuccessinfurtheringourund
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