The Historical Framework for Local Government in the United States A Presentation of David Miller

Life a Thousand Years Ago Cities and rural fiefdoms not Nation-States City is sanctuary from lawlessness of countryside –A freedom “from” not a freedom “to” Cities are becoming the nodes of a proto- mercantile economy How do you safely get your goods from A to B?

Citi-States or Nation-States? Because cities existed before the nation-state, how would the emerging nation-state deal with cities? Can both share power? Must one be superior over the other? The nation-state - master or agent?

Association v. Corporation Cities lose Round One As association: free from the state or the sense that individual was part of the state As corporation: would be created by law under revocable, amendable charters Cities were primarily merchants, agreeing to charter status in exchange for protection of goods was easy tradeoff Verdict: Corporation

Nation-State Consolidates Power Charters create legal corporation status Subject(s) to /of the state At first - little interference Slowly expand the conditions of the charter Cities are not democracies - oligarchies Not instrumental in popular, democratic government institution building

Political Theory I The “real” elements of society - the sovereign and the individual The state of nature - Locke, Hobbes, Bodin Society is a contract between those real aspects of society Other societal institutions are <church, guilds, cities> are intermediary bodies All are extensions of one or the other

Extension of Sovereign or Individual? Cities lose Round Two Europe’s answer is an extension of the Sovereign America’s answer is confusion

Life on the Frontier America - self-constituted religious or mercantile associations Little sense of central authority From legal standpoint - adopt the European tradition of corporation A is a corporation is a corporation

Public v. Private Corporation Cities Lose Round Three Whaddaya mean? Different types of corporations Early towns owned railroads, minted money, fought a revolution, had armies And anyway, how you gonna distinguish types of corporations?

Political Theory II The State of Nature - Individual enters society to: –Hobbes: escape the cruelness of nature –Locke: preserve property America adopts John Locke The contract and society are means by which the individual preserves his property

Putting Theory I and II Together Theory I: Individual and Sovereignn are real Theory II: Society is a contract involving property Individual is free to accumulate property, state is to help protect individuals property Role of intermediary institutions - the church, the cities, the guilds?

There are Two Types of Corporation One is an extension of the individual Artificial Contributes property Pursues property Preserves property Protected from State Private One is an extension of the sovereign Artificial No individual property Threat to property Function to aid Controlled by State Public

Local Government: Public or Private? Well, er, ah they are both With property owned by the body politic, they are private corporations When performing “state” functions, they are public corporations Expand the public Contract the private

Local Government in the Early 19th Century A public side –Police/militia –Roads and bridges –Communicable disease –Poor –Strangers –Church relations Governmental Issues A private side –Ownership of property –Taverns –Railroads –Shipping Proprietary Issues

Exit the Private Corporation Cities Lose Round Four Add Dillions rule here

The Context of Dillion’s Rule Image of objective, rational government staffed by the nation’s elite Comingling of public and private interests could not yield good government Concern that private interests would dominate public interests Perceived need to protect private economy from government intervention

The Real Reason A National Rail System or Local Self-Government? Practical Economics Beats Political Theory Nine Times out of Ten!

The Rules of the Game I Local Government is a subdivision of the State The relationship between the state and local government is hierarchial with the ultimate responsibility for the delivery of public goods and services resting with the State Local government is a territorial abstraction, temporarily constructed to serve a well defined purpose

The Rules of the Game II What local government does and is and how well it performs its task is empirically testable based on standards of efficiency and any element may be manipulated to improve efficiency Functional interests are more important in organizing and conducting public affairs than territorial interests

Transition to Alternative View

Government: How Viewed? Moralistic - A commomwealth, means to achieve “good” community through positive action Individualistic - A marketplace, means to respond efficiently to demands Traditionalistc - A means to maintain the existing order

Government: Appropriate Sphere of Activity? Moralistic - Any area that enhances the community Individualistic - Largely economic or related to supporting capital enterprise Traditionalistc - Those that maintain traditional patterns of relationships

Government: New Programs?