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Gisborne Times, Volume XXV, Issue 1981, 17 January 1907, Page 4

THE LAND QUESTION AND THE SINGLE TAX. (By George.) INTRODUCTION, Tiio Land Question, in tho colonies as well as in tho Homo Land, is tho chief question of polities, and is so regardod by all intelligent political reformers. Our Government has takon up this groat question with tho intention according to the language of its head, of “settling it for all time.” But Ido not think, nor do most farmers think, that tho .Bill now before tho country, is a final moasuro. It is good as far as it goes, but it loaves much to ho desired. One of its best parts is tho provision for ear-marking Crown lands for educational and charitable purposes, and another oxcollont part is that which limits tho valuo of any poison’s holding in land. Both those portions of the Bill are much opposed by the Massoyitos and “ tho Country Party,” who liavo raised the question of the freehold versus tho loasohold, and hopo for triumph by thoir persistent advocacy of the freoliold. A simple way out of the difficulty hhs boon suggested, and it is to concedo the freehold to all who want it, and at the same time increase tho land tax and mako it progressive—(progressing rapidly to 20s in the pound. This would be a tax simply on tho unimproved value of land, commonly callod “tho unearned increment” —an untrue and therefore foolish name to give to it, becanso there is really no such thing as an “unearned” increment. Tho increment in tho valuo of land is, of courso, earned, but by tho occupiers and workors on tho land rather than by tho people who pocket that value. "When tho State has takon tho unimproved vnluo and applied it to public purposes, the freoliold will not bo more attractive than tho leasehold to any man on tho land. Although most of the mental and manual workers for wages are not ns yet aware of it, the Land Question is the Labor Question, and the Labor Question, properly understood, is the Land Question. Tho whole community, with tho exception of large ownors of unimproved valuo and large employers of labor, would greatly benefit by a just settlement of this question, and my ondeavors will bo to show that tho Single Tax is a just and final settlement, and one which will benofit tho farmors quito as much as all tho people in the towns who have to work for their living. It is important that wo should begin by defining words that need defining, so as to fix their meanings, and thus avoid boing misunderstood. “Land” moans all natural objects; “rent” signifies simply the price paid for tho use of land, excluding land improvements; “labour” moans all human oxortion for-tho production of wealth. By “capital” I mean that portion of tho produce of labor which is reserved for tho production of more wealth. “Interest” includes tho whole of the return to capital. “Wages” includes all remuneration for labor of any kind.

PROPOSITIONS ON WEALTH, LABOR, CAPITAL, WAGES AND RENT. Wealth. 1. Wealth is matter converted into forms that will minister to the life and comfort of man. 2. All wealth is perishable. Most of the world’s wealth was produced by labor within the last twelve months. “Everything which is produced is consumed; both what is saved, anti what is said to bo spent; and the former quite as rapidly as the latter. . . . The greater part, in value, of the wealth now existing in England has been produced by human hands within the last twelve months.” J. S. Mill, “Principles of Political Economy,” (Boole 1., chap 5.) ■ 3. Money is not wealth; it is simply a means by which wo exchange one form of wealth for another form of it. A man might have all the money in the world and yet starve. Of what use would bags of gold bo to a man cut off from his fellow-man and left alone on some island ? But bread and meat and salt would keep him alive. Such things are wealth.

4. Wealth is divided between three parties—landlords, capitalists, and laborers. The landlord calls his part “rent.” All that he does for it is to allow other people to work. lie permits them to use the land. Nothing more than that. Ho does not advance them a penny of capital, but makes them pay him toll for allowing the use of the bare land; in other words, for allowing them to live. The capitalist calls Ins part “interest.” *.is claim to so large a portion of the wealth labor produces is based on the virtue —if virtue it be—of saving wealth instead of consuming it. Land. 1. All wealth comes from land. 2. All wealth is the result of labor applied to land. 3. All the wealth of any country comes from the land of that country. 4. Land is not property, for nothing can be said to bo property that has not labour for a basis. “What no man made no man has a right to own.” If the land belongs to anybody it is to the Lord Clod Almighty. Revelation assures us that “the earth is the Lord’s” —not the landlords.’ Revelation and Reason always agree. Thus the earth is property, but not in the sense in which the term is usually used, as relating to man. It is the property of God, because Ho made it. In British law there is no such thing as private property in land, all laud being held by the Crown as representing the people. Therefore the people are still, according to law, the rightful owners. Those who regard tliemsolves as owners have neither moral nor legal claim to anything except the value of the improvements they have made. That is exactly their position according to the highest authority on British law. Labor. 1. Labor cannot bo exerted without land. 2. Cut off from land the laborer is entirely dependent for his existence on those who possess land, and must pay to them a tax for permission to live in this world.

3. If labor coasetl the landlords and money-lords would very soon bo starving. Their money-bags would not induce Nature to give them a day’s food without labor* Capital* 1 1. Capital is a product of labor — wealth reserved for the production of more wealth; it is 'the tools of industry. Z. Capital is not absolutely necessary in order to the production of wealth. Two tilings only are essential —land and labor. Capital is merely an assistant. God made man, and gave him the land to got his living from. He did not make capitalists.

3. Capital, being wealth, is a perishable tiling. None of it lias dome clown to us from antiquity, as people jmagino. Nearly all the capital employed in productive industry was made by labor during the last year or two. “A very small proportion indeed of that large aggregate (of wealth and capital) was in existence ten years ago. Of the present productive capital of the country scarcely any part, except farm houses and manufactories, and a few ships and machines, and even these would nqt ill most cases have survived so long if fresh labor had not beep employed within that period ill putting them into repair. The land subsists and the land is almost the only thing that subsists. Everything which is produced perishes, and most things very quickly. . , . Capital is kept in existence from age to age, not by preservation, as some suppose, but by perpetual reproduction; every part of it is used and destroyed, generally very soon after it is produced, but those who consume it are employed meanwhile in producing more.” —John Stuart Mill, “Principles of Political Economy,” Book 1., chap. 6). So labor not only pays a huge rent tax to landowners for permission to work, but, in addition, makes the world’s capital all the time and pays a heavy tax in the shape of interest on the things produced by its own hands. Having done all this. Labor is saddled with the hulk of taxation ! The system is one of wholesale robbery of the poor laborer. 3. Capital is the result of saving; and, given the'use of land for his own benefit, e\< i x ablebodied man might easily acquire as much capital as he needs to help him- in the task of getting a living. 5, Capital does not employ labor. Labor employs capital. “Labor is the active and initial force. Labor makes capital, and uses it in further production.”

6. “Capital is advanced by laborers to employers during the time they are earning their wages; but employers do not at any time advance capital to laborers unless they pay for work before it is done.” Wages. 1. Wages are not paid out of capital. If wages were paid out of capital, all the capital in the world would soon be gone. Wages arc paid out of the products of labor. Every worker makes his wages before he gets it, and he has to make more than his wages or ho would soon be placed among the unemployed. 2. Wages are high where land rents are low, and low where land rents are high. 3. A nation’s wage fund is what is left after rent and interest are taken out pf the produce of labor.