THE KAIKOURA STAR KAIKOURA, JAN. 26, 1894.

Kaikoura Star, Volume XIV, Issue 677, 26 January 1894, Page 4

THE KAIKOURA STAR KAIKOURA, JAN. 26, 1894.

A correspondent writes asking: ‘What you would do without capital, and is not capital unprofitably employed as bad as labour unprofitably employed ?' Our correspondent asks a knotty question with the object of bringing about a journalistic trip. The question is, what is capital ? In one case it is current coin of the realm, or it’s material equivalent, in another a man's physical ability to work. The two terms, capital and labour, are, therefore, in one sense, synonymous. In the event of money being unprofitably employed it means that tbe possessor may have, if he is able, to earn his living by the sweat of his brow, and, in lome cases, to tbe man's benefit. When labour

is idle tbe nun suffers privation, as also do the members of his household. Therefore, .in the first case, unemployed labour sustains greater injury than does capital unprofitably invested. The aim of political economists is to prevent either state of affairs obtaining. There is more labour inadequately rewarded, than there is money unprofitably invested. A further question is put to us : ‘ Why we urge excessive taxation of capital ?’ The direct answer is that we do not do so. It is one of the very things we object to, almost as strongly as we are opposed to grinding labour. Our interrogator should remember that capital can much more readily protect itself than can labour. On almost every side some capital obtains undue reward, but rarely, if eve-, does labour meet with like success. Whenever capital obtains excessive profits someone invari--ably feels the pinch. Abnormal riches and extreme poverty are too often seen side by side, but even when and where that is the case it would be unwise to unduly tax capital. Tne aim should be to lay large profits under greater relative contribution, tbe impost being in proportion to the tension bearable. In short, the principle of graduated taxation can well be applied to the profits made by capital. The value of money is an artificial creation, the value of physical capital (labour) is of a natural and Divine order, it, therefore, deserves primary consideration.