PROFESSOR MILLS' ECONOMICS.

Maoriland Worker, Volume 3, Issue 43, 5 January 1912, Page 17

PROFESSOR MILLS' ECONOMICS.

Dear "Worker," —Mr. Mills is reported to have said in his address at Invereargill that in 'JO .wars the national debt of New 'Zealand had in oroasod £43,000.000 and uniiuprovw' land values had risen by £100,000,000 and went on to say that if the community had retained the increased value of land it would have had cnongl to pay off the money it had borrowed during the 20 years, and would ha.■ had £00,000,000 to spare. This is pure fiction, and cannot !><■ put into practice, which I can easilshow to the average man who approaches thi> question with an open mind.

li' Mr. Mills can see his way to give the. State power to use the iiniiiijjrovoel value of land to pay off the public debt he must see very deep into tluiifii; and 1 must be blind. Tho State coulc; "take" all the rout paid by tenants, and also the profits of the tenants, by taxing land values in Queen street, Auckland, but the land, would then have no saleable value it' the tax equalled the rent that could be paid. Tho community can collectively take the rent, and the conimunitv could collectively spend the rent in paying its d*»bts, ' but it is impossible to get hold of the •unimproved value of land, as it is blotted out of existence when tin; people collectively take the rent. The .State now owns and uses the railway between Auckland and Onehunga*, and tho people take the profits, which the State could use to pay its debts, but there is no "share value" that the State, can use to pay its debts. Now let us suppose that I own the railway above named arid T make a net yearly'profit of £1000 with a prospect of being able to maintain the profit and possibly increase the future profit, it is easily seen that I should have "share value" worth £'20,00(1 if. the people I could make. I should own ''share' value" worth £02,000 if the people who have "surplus income" to invest were unable to get more than ~> per cent, interest on their money. If "surplus income" became plentiful and rent and profit scarce until the investor could pet only 2J- per cent, for his mo lie v as we call it, I should havr"share value" worth £40.000, which i could use to pay my debts after 1 had eeld *fae right te draw the profits. The State conra tsx mc trntil si! mj profits were taken, and then my shave value would be blotted out of existence, unless I raised the freights, which certainly I should do. The people cannot own and use "share value," neither can we oollectively own the unimproved value of land.

Both "values" are brought into pststonre bpr-aiise n of the community own the tilings that all the community must use. Again, lot us suppose that th<? State takes the profits of any private business by taxation until' the tax ami profits nro equal, wo should then, find that tho "share value" was blotted out and tho purchasing power taken i'roni the pnvat' , owner of "the business. If the Slate curried on the business it <<nil'l take aiid use ail tiic profits in w-yiii:.' off its debt., but "-!i;ire value" r.-uiid novnr exist auiaiw prui'.l' c.il-Itvlii-els' tnok the |iro!it;, and' ;-.i!lr<tivelv ran tho Imshies.. Tf any business J railway, f;u<n or la ml ■ used far BJiy purwse is'nrivetflv owne-1 O-.ts

is always ,: -;hare value" and "uiiiuiproved value" that ra-n 'be used by individuals to pay 'ifbts. but the people cannot coHerijvoiv n»n or use share value or uMitniir )v.-d value to pnv ivs debts, li I o-iviH'd the ov.s'.or beds in iho i!a;i;;iki lv.;ii ai:d made t i 200 profit, will', a noo'l -;nispoet of iii:ikin.<r ihat pr.i'll e\ cry y.-yr, 1 .■.Jir-iild lur.o share valvi' , , or uiruiproved value, to ilie extent i;f tlOiM) for "v.-iy .L',o prolit 1 eouid i..;:k.- ii pi".i!>!e could get only ■"■ per pint, for liir-ir ''surplus iiiconi",-" '.v!> ;i :!:■■!■■,!.■ d in bv. .yiny; reijt from lai;d or ;.;-oii; o' : li'.isinoss-es of all cTo'/'ripii.ui Mr. V.iW-- li'ust uiinifii learn all these thiri'u* n/id very n,ueh hofove h<>' is fit t" e.onif liTe aad teaoh us how to do things. A-.u-H>ml A.- SAM)PORD.