LAND V. PROPERTY TAX. Auckland, June 5. TAXATION.

Te Aroha News, Volume VI, Issue 375, 8 June 1889, Page 4

LAND Y. PROPERTY TAX. Auckland, June 5.

TAXATION.

A meeting was held in St. James's Hall last night for the purpose of giving expression to the public opinion on the question of repealing the property tax and substituting in place thereof a tax on land values exclusive of improvements. The meeting was under the auspices of the New Zealand Radical Reform League, the Anti Poverty Society, and the Progresssive League, but even that did not ensure a very large attendance. Mr Kelly was voted to the chair in the absence ot the Rev. Mr Gulliver, M.A. Mr Kelly alluded to the importance of repealing the propei ty tax, as people were getting poorer. Mr Batty read apologies from the following M.H.li.'s who were invited to be present, but could not attend :—: — H. Moab, J. B. Why to, R. Thompson, W. Kelly, T. Thompson, D. Goldie, E. HamLin, R. Hobbs, and I\ Lawry. All expressed disapproval of the property tax, Mr F. 3. Moss and Mr R. Monk were the only members of the House of Representatives present.

REPEAL THE PROPERTY TAX. Mr Gerald Peacocke moved the first resolution, "That in the opinion of this meeting tho pioperoy tax should be repealed at the earliest opportunity, and a tax on land values exclusive of improvements be at onco imposed." He said he was glad to see so many present, but could have wished to havo seen more. When such bad examples were set by their representatives in Parliament, what could be expected of their constituents ? The apologies recei\ ed reminded him of the guests of whom they lead in the Scriptures, who were invited to a wedding feast and sent their reasons for not coining. With regard to the land tax ho might say that ho did not consider it a panacea which would cure all evils ; still it would be a steu towaids reloim. What they wished was to avert some of the evils which pi eased upon the millions in the older countries ot the world. Another thing that would require to be attacked in the future would be those iniquitous trusts about which they had heard so much in America. The reformers must be patient, as the belief in freehold land was the growth of ages. Therefore they must be patient and try and convert those people to the opinions of the reformers. The land tax had the meiit of fairness, economy, and equalness of incidence. What was wanted was that everybody should be taxed in pioporcion as they could afford to pay.. The property tax was an impost upon industry and thrift. Major Atkinson had told them that the great democratic nations in America had accepted the property tax, and liked it. He found, however, that many people in America looked with disfavour upon the property tax. He quoted from the "New York Times," where it ttated that it was impossible to collect the property tax with anything like equity, that the laiger amount of accrued wealth escaped taxation. Such facility of evasion was not present in the land ta\. Besides that, thoie were rich absentees who, to a large extent, escaped the property tax and Customs dues because they ■\\ero not in the colony to consume goods subject to the tax. The returns showed that theie were only 500 persons in the colony who paid over £50 under the property tax. At the same time it was also stated that there were 1,100 absentee landlords whose accumulated wealth amounted to £10,000,000. That surely showed a great leakage somewhere. He was quite illing to admit that taxation must come from the product of labour, still the tax that took the least was the most suitable. They wanted a tax that did not require much expense to collect. The tax upon land was admittedly the cheapest method of taxation. There was nothing else by which money could be made excepting out ot the land. Under a properly-constituted land tax the mortgagees would not escape, as thwir interest could easily be estimated and taxed. Mr Peacocke then went on (o point out the immense cost of collecting Custom duties. He argued that what a man produced from the earth was his own, and no Government had a right to touch it. (Applause ) The only so-called right of property which they wished to attack was the right to monopolise portions of the earth's crust. Whilst they could not increase the area of the earth, population was increasing, and that meant that numbers must be landless. The leisured classes were &upported by the workers. Yet, when the labourer said that he had carried the heavy end of the stick long enough, he was told that he was committing robbery. It should be undei stood that the reformeis wished to act with perfect justness. It ap pcared to him that their representathes did not fully recognise their lesponsibility in this matter, and were too easily put down by the hob-nailed boots. (Applause.) Last session Major Atkinson said it could not be done until the country was in a state of financial soundness. Yet they argued that this wa? one of the causes of the want of financial soundness. It was like saying that a man who was bleeding to death from a severed artery should not have it tied up until he grew a little stronger. It was this land-holding that caused land booms, with the attendant miseries, when the crash came, Protection was said to have caused progress in Melbourne, but alter all protection simply meant greater value to the land and increased gain to tho landlords. It was tbeir duty as elector?) to work out their problem at elections by returning men who would attend to these matters. (Applause.) Mr W. H. Farnall seconded the resolution. He said that reverting to the subject of the wedding feast, although the bidden guests did not attend, still they had the room fairly filled. That showed to him that the electors and their representatives were not strictly in accord. Since a constitution had been given to New Zealand, they had had 10 Parliaments and 2.3 Ministers. Unfortunately, however, with one exception, the policy had been the same, namely, fostering the privileged classes. The one exception was when Sir George Grey stepped into the political arena. His first act was to impose a land tax, His next moves were the triennial Parliament, manhood suffrage, and representation according to population. When Sir Gcorgo Grey was thrown out the land tax was abolished, but the other three planks in the Liberal platform were adopted. The land tax had been frequently brought before tho House, but was never adopted. Mr Farnall then road the various division liats to show who had voted against the land tax. He pointed out that many of the name 3 that appeared as voting against the land tax were those who had written that night that they deeply sympathised with the object of the meeting. (Laughter. ) The exceptions were Messrs Goldie, Monk, and Moss. (Applause.) Mr Farnall then quoted statistics to show how unfairly the property tax pressed upon the people, while the land tax would reach the wealthy classes who at present had comparative immunity from taxation. He argued that the large leaseholders

should be charged 5 per cent, upon their holdings, the same as village settlers were expected to do. He hoped" that the resolution would be passed, as it would strengthen the hands ot the members who wero with them in the matter. The Chairman then invited free discussion. As no one came forward, Mr Moss was asked fco address the meeting. Mr F. J. Moss was received ■with applause. Ho vouched for the accuracy of M r Farnall's statistics. He could tell them that whatever members said, there was only ono distinct pledge that could be depended upon — " Will you undertake to support no Government that will notgo in to remove the property tax V All the sympathy in tho world waa no good unless they had that pledge. He had said that for ten years past. He could tell them that it was putting on a land tax that caused Sir George Gioy's defeat in 1879. But as they had now boon paying tho tax for ten years the fault was theirs. (Applause.) That A'as caused by want of unanimity. If the throe societies present at that meeting were united they would have greater power. He was sick of the farce that Sir Harry Atkinson was playing on them. It was just the same thing over again. Ho was saving the country from ruin, and at the same timo putting on additional taxation. And then when he showed a small surplus they were a&ked to admire the magnificent management. There was a deficit before, and now we have a surplus. It was the same in 1880. They kept in office for threo years and then went out, leaving a deficit of £184,000 tor the Stout- Vogel Mini&ory to face. Kow it was being repeated. They were told that there was a surplus of £20,000, and already £15,000 had been given to the Duuedin Exhibition which Parliament would have to pass. Last year tho retrenchment scaio was on, and they wore told that a Ministiy of seven able mon could do nothing beyond cutting down expenditure. They were simply bamboozling the people, for as a matter of fact the retrenchment wad carried out by a committeo of Under-Secretaries, who sat and simply reported to the Ministry, who weie then bound to accept their suggestions in a lump, co that all this talk was perfect humbug. He considered that last session the Government had been simply bamboozling tho countiy \\hen they said they could eflect no other reform excepting retrenchment. He could tell them that when Sir G. Grey's Land Bill came in only four Northern members voted for it. Sir Harry said that if it was carried he would havo to go out of office, and ot course such a calamity could not be contemplated. With regaul to land nationalisation, he must tell them that lie was noc in favour of it, but would support a taxontheunimproved value of land, as it would stop land speculation, which would be a great gain to the country. He believed that it would be a most effective means of checking land speculation. He would certainly take every opportunity of voting for tho repeal of the property tax, as also for the substitution of a land tax, but they must understand that one man could do little in the matter. Mr Richard Monk, M.H.R., was next called upon. Ho came forward, and said that he felt sympathy with the movement to aboli-h the property tax, but he had no sympathy with land nationalisation. Ho was in favour of the substitution of a land and income tax, because it was fair and simple. He favoured an area tax, by which means land could be valued according to its productive power. He believed that a land tax alone would not be sufficient to raise the revenue requisite to meet their engagements. He favoured a land tax, bocause the people would then know what they weie paying, and would compel the Go\ eminent to retrench. He must differ with Mr Moss with regard to retrenchment. It was as much necessary now as last year. Thanks to a bountiful harvest and the misfortunes of Australia, things had improved, but still the retrenchment was wanted all the same. Providence had, as it were, assisted them, but still there was none the less necessity to letrenchand re-organise. He fully agreed with Mr Moss that they wanted decentralisation, for, as that gentleman had pointed out, the Civil servants were really their rulers, and they, as members, had oo accept what was given them. He had favoured tho property tax once, but now his views had changed somewhat. He paid that if a man came here with £10,000 capital to invest they under the property tax would fine him £50 for coming. Well, he naturally left his money behind him in Australia. Many of them paid property tax year after year while their property was giadually diminishing. He considered tho income tax was a fair one and should like to see it in the place of the piopeity tax. (Applause.) Mr Veacocke briefly replied. He said that if the land tax; was good for the country they ought to have it, and then they would know what it would bring in. Ho fully agreed with an income tax if a supplemental y tax wa=> needed. He thoroughly agreed with Mr Moss that the constituents were responsible for the type of representatives they had. The question \\as then put fco tho meeting, when the motion was unanimously adopted, Mr Kelly said that the most important objection to the land tax was that raised by Sir 11. Atkinson, that it would preclude the foimer from making it pay. He held, however, (hatanythingthat would takeaway the speculative value ot land would assist settlement. New Zealand was adapted for free settlement. He considered that tho land laws had been the curse of the country, for no encouragement was offered to hona fide settlement. Mr Withy, junior, suggested that a committee should be formed to draw up a petition to get the property tax repealed. This was seconded by Mr Fowley, who spoke at some length. Mr French thought it useless to send a petiiion down to tho present ITouso. They wanted fresh men. Mr S. Vailo was of the opinion that the property tax ou^ht fc 0 fog repealed and nothing whatever be put in its place. They should make the Government reduce the total taxation. If the Government could not do so then put in men who could. The present taxation was simply monstrous. The question was then put to tho meoting and adopted. A vote of thanks to the chair closed the proceedings.

The following advertisement lately appeared in a Parisian newspaper- "A lady having a pet dog whose hair is of a rich mahogany colour, desires to engage a footman with whiskers to match." There has been a very marked decrease in the supplies of kauri gum this year as compared with the last two years. For the month of May 450 tons have been received against 620 for the same month last year, while only 2,750 tons have been received this year so far, against 3,630 tons for the same period of 1888. It is only this shortage in supplies that has kept prices at their present figure and pre'scuved the market from almost certain ccllapso or a very big break. With the immense stocks held in the States and London to-day, the only salvation for the gum market is for the supplies to remain at about what they are, not more than 500 tons a month.