i pencil essay pdf

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"I, Pencil: My Family Tree as told to Leonard E. Read"

By leonard e. read.

I am a lead pencil–the ordinary wooden pencil familiar to all boys and girls and adults who can read and write…. [From “I, Pencil”]

First Pub. Date

Irvington-on-Hudson, NY: The Foundation for Economic Education, Inc.

The text of this edition is copyright ©: 1999. Foundation for Economic Education (FEE). (Second printing, August 1999.) The Library of Economics and Liberty is grateful to FEE for permission to produce this essay in electronic form.

Table of Contents

• Introduction, by Milton Friedman
• rdPncl0.html#Introduction, by Milton Friedman
• Afterword, by Donald J. Boudreaux

by Milton Friedman

Introduction,.

Leonard Read’s delightful story, “I, Pencil,” has become a classic, and deservedly so. I know of no other piece of literature that so succinctly, persuasively, and effectively illustrates the meaning of both Adam Smith’s invisible hand—the possibility of cooperation without coercion—and Friedrich Hayek’s emphasis on the importance of dispersed knowledge and the role of the price system in communicating information that “will make the individuals do the desirable things without anyone having to tell them what to do.”

We used Leonard’s story in our television show, “Free to Choose,” and in the accompanying book of the same title to illustrate “the power of the market” (the title of both the first segment of the TV show and of chapter one of the book). We summarized the story and then went on to say:

“None of the thousands of persons involved in producing the pencil performed his task because he wanted a pencil. Some among them never saw a pencil and would not know what it is for. Each saw his work as a way to get the goods and services he wanted—goods and services we produced in order to get the pencil we wanted. Every time we go to the store and buy a pencil, we are exchanging a little bit of our services for the infinitesimal amount of services that each of the thousands contributed toward producing the pencil.

“It is even more astounding that the pencil was ever produced. No one sitting in a central office gave orders to these thousands of people. No military police enforced the orders that were not given. These people live in many lands, speak different languages, practice different religions, may even hate one another—yet none of these differences prevented them from cooperating to produce a pencil. How did it happen? Adam Smith gave us the answer two hundred years ago.”

“I, Pencil” is a typical Leonard Read product: imaginative, simple yet subtle, breathing the love of freedom that imbued everything Leonard wrote or did. As in the rest of his work, he was not trying to tell people what to do or how to conduct themselves. He was simply trying to enhance individuals’ understanding of themselves and of the system they live in.

That was his basic credo and one that he stuck to consistently during his long period of service to the public—not public service in the sense of government service. Whatever the pressure, he stuck to his guns, refusing to compromise his principles. That was why he was so effective in keeping alive, in the early days, and then spreading the basic idea that human freedom required private property, free competition, and severely limited government.

Professor Friedman, the 1976 Nobelist in Economic Science, is Senior Research Fellow at the Hoover Institution, Stanford, California.

“I, Pencil: My Family Tree” as told to Leonard E. Read, Dec. 1958

• Leonard E. Read (author)
• Milton Friedman (introduction)

A charming story which explains how something as apparently simple as a pencil is in fact the product of a very complex economic process based upon the division of labor, international trade, and comparative advantage.

• EBook PDF This text-based PDF or EBook was created from the HTML version of this book and is part of the Portable Library of Liberty.
• Kindle This is an E-book formatted for Amazon Kindle devices.

I Pencil: My Family Tree as told to Leonard E. Reed (Irvington-on-Hudson, New York: Foundation for Economic Education, Inc., 1999).

Published online with the kind permission of the copyright holders, the Foundation for Economic Education.

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Read’s essay is inspried in part by the pin factory Adam Smith describes in Book I, Chapter 1 of the Wealth of Nations.

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Originally published in the December 1958 issue of The Freeman , this essay is written in the first-person from the perspective of a pencil, explaining its complexity and defending Adam Smith 's concept of an invisible hand acting in free markets.

• 1 Complicated Machinery
• 2 No One Knows

​ I am a lead pencil—the ordinary wooden pencil familiar to all boys and girls and adults who can read and write. [1]

Writing is both my vocation and my avocation; that's all I do.

You may wonder why I should write a genealogy. Well, to begin with, my story is interesting. And, next, I am a mystery—more so than a tree or a sunset or even a flash of lightning. But, sadly, I am taken for granted by those who use me, as if I were a mere incident and without background. This supercilious attitude relegates me to the level of the commonplace. This is a species of the grievous error in which mankind cannot too long persist without peril. For, as a wise man observed, "We are perishing for want of wonder, not for want of wonders." [2]

I, Pencil, simple though I appear to be, merit your wonder and awe, a claim I shall attempt to prove. In fact, if you can understand me—no, that's too much to ask of anyone—if you can become aware of the miraculousness ​ which I symbolize, you can help save the freedom mankind is so unhappily losing. I have a profound lesson to teach. And I can teach this lesson better than can an automobile or an airplane or a mechanical dishwasher because—well, because I am seemingly so simple.

Simple? Yet, not a single person on the face of this earth knows how to make me . This sounds fantastic, doesn't it? Especially when it is realized that there are about one and one-half billion of my kind produced in the U. S. A. each year.

Pick me up and look me over. What do you see? Not much meets the eye—there’s some wood, lacquer, the printed labeling, graphite lead, a bit of metal, and an eraser.

Just as you cannot trace your family tree back very far, so is it impossible for me to name and explain all my antecedents. But I would like to suggest enough of them to impress upon you the richness and complexity of my background.

My family tree begins with what in fact is a tree, a cedar of straight grain that grows in Northern California and Oregon . Now contemplate all the saws and trucks and rope and the countless other gear used in harvesting and carting the cedar logs to the railroad siding. Think of all the persons and the numberless skills that went into their fabrication: the mining of ore, the making of steel and its refinement into saws, axes, motors; the growing of hemp and bringing it through all the stages to heavy and strong rope; the logging camps with their beds and mess halls, the cookery and the raising of all the ​ foods. Why, untold thousands of persons had a hand in every cup of coffee the loggers drink!

The logs are shipped to a mill in San Leandro , California. Can you imagine the individuals who make flat cars and rails and railroad engines and who construct and install the communication systems incidental thereto? These legions are among my antecedents.

Consider the millwork in San Leandro. The cedar logs are cut into small, pencil-length slats less than one-fourth of an inch in thickness. These are kiln dried and then tinted for the same reason women put rouge on their faces. People prefer that I look pretty, not a pallid white. The slats are waxed and kiln dried again. How many skills went into the making of the tint and the kilns, into supplying the heat, the light and power, the belts, motors, and all the other things a mill requires? Sweepers in the mill among my ancestors? Yes, and included are the men who poured the concrete for the dam of a Pacific Gas & Electric Company hydroplant which supplies the mill's power!

Don’t overlook the ancestors present and distant who have a hand in transporting sixty carloads of slats across the nation from California to Wilkes-Barre!

Complicated Machinery

​ Once in the pencil factory—$4,000,000 in machinery and building, all capital accumulated by thrifty and saving parents of mine—each slat is given eight grooves by a complex machine, after which another machine lays leads ​ in every other slat, applies glue, and places another slat atop—a lead sandwich, so to speak. Seven brothers and I are mechanically carved from this "wood-clinched" sandwich.

My "lead" itself—it contains no lead at all—is complex. The graphite is mined in Ceylon . Consider these miners and those who make their many tools and the makers of the paper sacks in which the graphite is shipped and those who make the string that ties the sacks and those who put them aboard ships and those who make the ships. Even the lighthouse keepers along the way assisted in my birth—and the harbor pilots.

The graphite is mixed with clay from Mississippi in which ammonium hydroxide is used in the refining process. Then wetting agents are added such as sulfonated tallow —animal fats chemically reacted with sulfuric acid . After passing through numerous machines, the mixture finally appears as endless extrusions—as from a sausage grinder—cut to size, dried, and baked for several hours at 1,850 degrees Fahrenheit. To increase their strength and smoothness the leads are then treated with a hot mixture which includes candelilla wax from Mexico , paraffin wax , and hydrogenated natural fats.

My cedar receives six coats of lacquer. Do you know all of the ingredients of lacquer? Who would think that the growers of castor beans and the refiners of castor oil are a part of it? They are. Why, even the processes by which the lacquer is made a beautiful yellow involves the skills of more persons than one can enumerate!

Observe the labeling. That's a film formed by applying ​ heat to carbon black mixed with resins. How do you make resins and what, pray, is carbon black?

My bit of metal—the ferrule —is brass . Think of all the persons who mine zinc and copper and those who have the skills to make shiny sheet brass from these products of nature. Those black rings on my ferrule are black nickel . What is black nickel and how is it applied? The complete story of why the center of my ferrule has no black nickel on it would take pages to explain.

Then there's my crowning glory, inelegantly referred to in the trade as "the plug," the part man uses to erase the errors he makes with me. An ingredient called "factice" is what does the erasing. It is a rubber-like product made by reacting rape seed oil from the Dutch East Indies with sulfur chloride . Rubber, contrary to the common notion, is only for binding purposes. Then, too, there are numerous vulcanizing and accelerating agents. The pumice comes from Italy ; and the pigment which gives "the plug" its color is cadium sulfide .

Does anyone wish to challenge my earlier assertion that no single person on the face of this earth knows how to make me?

No One Knows

​ Actually, millions of human beings have had a hand in my creation, no one of whom even knows more than a very few of the others. Now, you may say that I go too far in relating the picker of a coffee berry in far off Brazil and food growers elsewhere to my creation; that this is ​ an extreme position. I shall stand by my claim. There isn't a single person in all these millions, including the president of the pencil company, who contributes more than a tiny, infinitesimal bit of know-how. From the standpoint of know-how the only difference between the miner of graphite in Ceylon and the logger in Oregon is in the type of know-how. Neither the miner nor the logger can be dispensed with, any more than can the chemist at the factory or the worker in the oil field—paraffin being a by-product of petroleum.

Here is an astounding fact: Neither the worker in the oil field nor the chemist nor the digger of graphite or clay nor any who mans or makes the ships or trains or trucks nor the one who runs the machine that does the knurling on my bit of metal nor the president of the company performs his singular task because he wants me. Each one wants me less, perhaps, than does a child in the first grade. Indeed, there are some among this vast multitude who never saw a pencil nor would they know how to use one. Their motivation is other than me. Perhaps it is something like this: Each of these millions sees that he can thus exchange his tiny know-how for the goods and services he needs or wants. I may or may not be among these items.

There is a fact still more astounding: The absence of a master mind, of anyone dictating or forcibly directing these countless actions which bring me into being. No trace of such a person can be found. Instead, we find the Invisible Hand at work. This is the mystery to which I earlier referred.

It has been said that "only God can make a tree." Why do we agree with this? Isn't it because we realize that we ourselves could not make one? Indeed, can we even describe a tree? We cannot, except in superficial terms. We can say, for instance, that a certain molecular configuration manifests itself as a tree. But what mind is there among men that could even record, let alone direct, the constant changes in molecules that transpire in the life span of a tree? Such a feat is utterly unthinkable!

I, Pencil, am a complex combination of miracles: a tree, zinc, copper, graphite, and so on. But to these miracles which manifest themselves in Nature an even more extraordinary miracle has been added: the configuration of creative human energies—millions of tiny know-hows configurating naturally and spontaneously in response to human necessity and desire and in the absence of any human master-minding! Since only God can make a tree, I insist that only God could make me. Man can no more direct these millions of know-hows to bring me into being than he can put molecules together to create a tree.

The above is what I meant when writing, "If you can become aware of the miraculousness which I symbolize, ​ you can help save the freedom mankind is so unhappily losing." For, if one is aware that these know-hows will naturally, yes, automatically, arrange themselves into creative and productive patterns in response to human necessity and demand—that is, in the absence of governmental or any other coercive master-minding—then one will possess an absolutely essential ingredient for freedom: a faith in free men . Freedom is impossible without this faith.

Once government has had a monopoly of a creative activity such, for instance, as the delivery of the mails, most individuals will believe that the mails could not be efficiently delivered by men acting freely. And here is the reason: Each one acknowledges that he himself doesn't know how to do all the things incident to mail delivery. He also recognizes that no other individual could do it. These assumptions are correct. No individual possesses enough know-how to perform a nation's mail delivery any more than any individual possesses enough know-how to make a pencil. Now, in the absence of a faith in free men—in the unawareness that millions of tiny know-hows would naturally and miraculously form and cooperate to satisfy this necessity—the individual cannot help but reach the erroneous conclusion that mail can be delivered only by governmental "master-minding."

If I, Pencil, were the only item that could offer testimony on what men can accomplish when free to try, then those with little faith would have a fair case. However, there is testimony galore; it's all about us and on every hand. Mail delivery is exceedingly simple when ​ compared, for instance, to the making of an automobile or a calculating machine or a grain combine or a milling machine or to tens of thousands of other things. Delivery? Why, in this area where men have been left free to try, they deliver the human voice around the world in less than one second; they deliver an event visually and in motion to any person's home when it is happening; they deliver 150 passengers from Seattle to Baltimore in less than four hours; they deliver gas from Texas to one's range or furnace in New York at unbelievably low rates and without subsidy; they deliver each four pounds of oil from the Persian Gulf to our Eastern Seaboard —half-way around the world—for less money than the government charges for delivering a one-ounce letter across the street!

The lesson I have to teach is this: Leave all creative energies uninhibited . Merely organize society to act in harmony with this lesson. Let society's legal apparatus remove all obstacles the best it can. Permit these creative know-hows freely to flow. Have faith that free men will respond to the Invisible Hand. This faith will be confirmed. I, Pencil, seemingly simple though I am, offer the miracle of my creation as testimony that this is a practical faith, as practical as the sun, the rain, a cedar tree, the good earth.

• ↑ My official name is "Mongol 482." My many ingredients are assembled, fabricated, and finished by Eberhard Faber Pencil Company, Wilkes-Barre , Pennsylvania .
• ↑ G. K. Chesterton .

This work is in the public domain in the United States because it was legally published within the United States (or the United Nations Headquarters in New York subject to Section 7 of the United States Headquarters Agreement ) before 1964, and copyright was not renewed.

• For Class A renewals records ( books only) published between 1923 and 1963, check the Stanford University Copyright Renewal Database .
• For other renewal records of publications between 1922–1950 see the University of Pennsylvania copyright records scans .
• For all records since 1978, search the U.S. Copyright Office records.
• See also the Rutgers copyright renewal records for further information.

Works published in 1958 would have had to renew their copyright in either 1985 or 1986, i.e. at least 27 years after they were first published/registered but not later than 31 December in the 28th year. As this work's copyright was not renewed, it entered the public domain on 1 January 1987.

The longest-living author of this work died in 1983, so this work is in the public domain in countries and areas where the copyright term is the author's life plus 40 years or less . This work may be in the public domain in countries and areas with longer native copyright terms that apply the rule of the shorter term to foreign works .

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27 pages • 54 minutes read

I, Pencil: My Family Tree as Told to Leonard E. Read

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Summary: “i, pencil”.

The essay “I, Pencil,” also known as “I, Pencil: My Family Tree as Told to Leonard E. Read,” was first published by the American businessman and libertarian advocate Leonard E. Read in 1958. The essay first appeared in The Freeman, a publication of the Foundation for Economic Freedom (FEE), a think-tank he co-founded in 1946. Read was a staunch critic of US President Franklin D. Roosevelt’s “New Deal,” an ambitious series of government policies and public-works programs aimed at re-inflating the US economy during the Great Depression of the 1930s. The essay is considered a classic critique of economic central planning and defense of free-market capitalism.

This guide uses the PDF ebook published by FEE in March 2019.

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Writing in the first person from the perspective of a pencil, Read opens with the counterintuitive claim that this seemingly simple object should elicit “wonder and awe,” because “not a single person on the face of this earth knows how to make me” (4). He illustrates the point with a “genealogy” identifying the complex, globe-spanning chain of events required to produce even so simple an object as a pencil, let alone something as complex as “an automobile or an airplane or a mechanical dishwasher” (4). From there, Read concludes that no centralized authority could ever possess all of the knowledge and skills needed to efficiently coordinate these events, whereas market economies do it automatically.

Beginning with the logging of a cedar tree in the Pacific Northwest, Read catalogs “the saws and trucks and rope and the countless other gear used in harvesting and carting the cedar logs to the railroad siding,” and then “all the persons and the numberless skills” required to produce that gear: “the mining of ore, the making of steel and its refinement into saws, axes, motors; the growing of hemp and bringing it through all the stages to heavy and strong rope” (5). Read posits that the loggers could not do their job without “the logging camps with their beds and mess halls, the cookery and the raising of all the foods” (5).

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Read continues through the remaining links of the supply chain, detailing how the logs are shipped by rail to a mill, where specialized machines fashion them into pencils; how the “lead” core is made from graphite mined in Sri Lanka and mixed with Mississippi clay, Mexican candelilla wax, and various chemicals; how the lacquer, made from castor oil, is applied; how the label is imprinted using resins and carbon black; and how the ferrule is manufactured from brass and black nickel, and the eraser from Indonesian rapeseed oil, Italian pumice, and cadmium sulfide.

Read’s point is twofold: “[M]illions of human beings have had a hand” in making the pencil, and no single individual “contributes more than a tiny, infinitesimal bit of know-how” (7) to the complex process. Because each step in the supply chain is indispensable, so, too, are the knowledge and skills of each worker. Even the president of the pencil company represents only one link in the chain; he knows no more about mining iron ore than the miner knows about running a corporation, and without iron there would be no pencils.

Furthermore, none of these individuals “performs his singular task because he wants me” (8). In other words, what motivates the oil-field worker to show up at his job every day is not a specific desire to produce petroleum for making paraffin wax used in pencil leads. Nor is he compelled to do so by some “master mind […] dictating or forcibly directing these countless actions” (8). Instead, all of this labor is elicited and coordinated by “the Invisible Hand”—a metaphor for market economics famously coined by the Scottish philosopher Adam Smith in his groundbreaking 1776 book The Wealth of Nations . The oil worker is motivated solely by the desire to “exchange his tiny know-how for the goods and services he needs and wants” (8), which may or may not involve pencils. From the miners and loggers to the company executives, everyone works in order to earn money to spend as they see fit; then others work to supply them with those desired goods and services. This is the “extraordinary miracle” of markets: “[M]illions of tiny knowhows configurating naturally and spontaneously in response to human necessity and desire and in the absence of any human masterminding!” (8).

People who fail to understand the “miraculous” logic of supply and demand often conclude, erroneously in Read’s view, that such complex coordination can be achieved only by a central authority. When the government monopolizes the provision of a good or service—he gives the example of mail delivery—many citizens come to believe that the private sector would be incapable of providing it efficiently. However, humans successfully perform much more complex tasks than delivering mail, such as manufacturing an automobile or operating an airline, when they are “left free to try” (9) without government coercion. This pernicious lack of “faith in free people” has encouraged an expansion of government control that is presently making societies less free. Read argues that maintaining a free society requires widespread public understanding of “the Invisible Hand” (9).

The final piece of Read’s argument is implied rather than explicitly stated: that government “masterminding” is not only unnecessary but inherently less efficient than spontaneous market coordination. The best role for government, therefore, is to stay out of the way as much as possible and “leave all creative energies uninhibited,” intervening in economic affairs only for the purpose of removing “all obstacles” (10) to the free functioning of markets. For Read, the logic of “the Invisible Hand” is so unerring that it is akin to natural law: faith in free markets is as “practical,” or reasonable, as faith in “the sun, the rain, a cedar tree, the good earth” (10).

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