ABSTRACT
Prefatorial note: The first version of this essay was presented in 1955 as one in a series of addresses initiated by Professor Hayek at Claremont Men’s College. In the years since then, I have given this paper at numerous convocations in various colleges and universities and have extended it on several issues in response to questions and comments from my audiences. I have saved publication for a suitable occasion; surely none could be more suitable than this anniversary volume for Professor Hayek, with whom I have been bound in friendship for 45 years and to whom my thinking owes more than I can say.
