THE UNEARNED INCREMENT.

Te Aroha News, Volume VI, Issue 342, 13 February 1889, Page 4

THE UNEARNED INCREMENT.

Ik a newspaper notification of a sale of: land recently hold in Auckland, occurred a very significant paragraph. It i s significant inasmuch as the ovvnor allows that his object in selling is to get possession of the unoarned increment. Thoparagragh roads as follows :— " The owner we notice announces that lie is determined to sell, as ho owns adjoining land which he wishes to enhance in valuo by peopling this block, therefore the block will bo sold without resene." The peopling of the block now sold will, in the opinion of the ownor, and as a matter of fact, increase tho value of the adjoining land, and this increase the owner hopos to eventually put in his pocket. This i& the unearned increment pure and simple, and as the acknowledged intention of appiopiiating this increased value is so publicly announced, we may be pardoned tor making a few remarks upon it. This increased value is given to the land, as tho owner naively allows, by peopling the sold block. Then it is the pooplo who have sottled on this block tiiat really cause thi3 increased value. That being granted, why, in tho nanio of all that is just, honest i.nd equitable, should not tho people who have caused this extra \alue divido it amongst themselves ? The public may loam from this simple illustration a \eiy valuable lesson. It u perfectly clear that although wo ha\e adopted land laws in tins country modelled upo'i tho conservative ari&tociatic land laws of tho oid country, and therefore tho owner of the land here is legally entitled lo any plundci ho can make out- of it, yet on the hico of it ho can have no moial right to such extra \aluo which has accri'cd lo his property through no toil or outlay of hw own, but tlnough the anival of population and consequent mci eased demand for the land. Wo do not for a moment wish to assert tlnvt tho owner in question is not fairly and legitimately and lognlly entitled to the utmost penny ho can under tho ciieumstances exact, and .^o long as our laws remain as at present, a man would bo foolish not to take eveiy fait and legal advantage of his opportunities ; but wo do say that tho system adopted by us is altogethci wiong, and the eooncr the Legislatuio steps in and assumes tho right on iho pai t of tho people to take for the benefit of tho wholo community, tho increased \aluo accruing to land fiom any source other than that caused by the labour of tho owner or tho outlay of Ins capital, the better will it be for us, and the sooner we shall get out. of our difficulties. Does anyono suppose that this colony would be now o\orloaded with debt and cru&hed by taxation if tho&e who had tho flaming ot our lawa in the eaily history of the colony had decreed that all increase in land values, other than that created by tho owner himself, should become the property of tho State ? And yet, had «uch a course been then alopted, no injustice would have been done to an\ one, for zio one can fairly claim a light to the posstf&ion of .vealth that ho has not himself produced or inhoiifced or received as a gilt. If all the unearned incicment which has flowed into the [ockcts of land speculators and olhms since the foundation of tho colony had been transfcued to the cofTeisof tho S:atc, we should now have fewer wealthy men, but we should in all probability ha\ehadno grinding po\erfcy. Such a tax as tho property tax would have been uncalled for, and Customs duties would have been almost unnecessary. If it weio not for the excitement in reaching for tho unearned increment there would be no land speculation. Land would then only be sought after for its agiicultural, mineral, or building value, and only the bonajitte occupier or user would have an y intei est in ir. And who is there that would not allow that such a state of things would be imit^tely. prpjte'iable to the widespread demoralisation which affects all classes of a community when what is teunod a land boom takcb place .' We lu'ne seen the c\ii efiects of this frequently in this countiy, and again recently in Melbourne. We aie told that in Melbourne it i& only the oiiginal landholders who have made money by the b om, .Some of them p-uted with their propcities at fabulous pi ices ; others arc made lich by pocketing the deposits, the depositor being unable to conclude their puicha&cs. As it was with us, so in Melbourne: wo read ;that a few laigc tiaders, otherwise perfectly solvent, through ha\ing dabbled in land beyond their means, will have to retiie from business. The papers tell us that notwithstanding the collapse of the boom there wilt be_po ciisis, but individuals must suf'er. That means that many families aye inetiiV. ably mined, buc that the State is still solvent, and all for what? him ply endeavouring to acquire liohes which Ih. y ha\ o not earned and for which they have not toiled. No one can deny that a community must gieatly benciifc if its laws wero.fco oidcied that this madness tor leaping what they ha\e not sown, which periodically takes possession of the people, weie made an impctibi ity. In a iccent is«uc appealed a tclegiam to the e(F ct that Melbourne invei-ter^.were inquiring for large blocks of unimproved land in New Zealand. If these Melbourne investors are simply looking for the unearned increment we do not want them ; if they desire to settle and improve they will Lo gladly welcomed, but wo want all our unimproved land to go into the possession of bova fide occupiers and woikeis, and not into the hands of thoso who hold it simply to extoi t the uttermost fai tiling out of tho bona fide, settler when ho happens to como along. Tho high pi ices demanded for laud already held in laigo blocks are tho chief drawback to the progress and prosperity of Now Zealand.

The "Boston Post," noticing the first lecture of Mr Douglas B. W. Sladcn on "Australian Poets," says :—": — " Mr Sladen'i? praise of Cordon was both eloquent and ingenious. His selections were read in a most manly and earnest fashion, and, in general, (he personal equation of the afte 1 noon was unusually attractive. Mr Sladen's audience was mad o up in a great degieo cf people whoso names are known botli within and without the walls of our town, and among them wero Mrs Louise Chandler Moukon, Miss Edna Doan Proctor.Mr Boyle 0 Reilly and Mr Arlo Bafee." Mr Sladen gave a second lecture in Boston, the subject being "Henry Kendall, tho Br.sh Poet of New South Wales." Tho audience on this occasion numbered 200, and included nearly all tho literary " notable? " of Boston. The imports into New Zealand for tho quarter ended December 31st are valued at £1,493,957. For the corresponding quarter in 1887 the amount was £1,579,266. The exports last quarter were £2,055,328 ; for l-ho corresponding quarter of 1837, £1,686,736. Tho imports for 1887 were £6,245,515, and for 1888, £5,941,900 ; tho exports for 1887 were £6.866,169, and for 1888, £7,767,325. During last year 74 vessels comprising 24 sailing vessels, 47 steamers, 2 dredger-*, and 1 coal hulk, having an aggregate tonnage of 23,659 tons, wore docked in Auckland. Of that number three British men-of-war and one merchant ship wero docked in Calliopo Dock.