THE LAND TAX.

Te Aroha News, Volume VII, Issue 450, 1 March 1890, Page 4

THE LAND TAX.

A SUBSTITUTE FOR THE PROPERTY TAX. ADDRESS BY SIR GEORGE GREY

Auckland, February 26. Sill George-Grey, by invitation of the Anti-Poverty Society, addressed a public meeting at the Academy of Music, Lome, street, last evening, on “Land Tax, chiefly as opposed to the present property tax of New Zealand. There was a crowded audience, including many ladies. On the platform were members of the Anti-Poveity Society, and the chair was occupied by the Rov. E. H. Gulliver. . The Chairman, in his opening remarks, said he had the great pleasure of introducing Sir George Grey, a gentleman who really required no introduction, and whom, he had no doubt, all present were eager to hear. Consequently he would not detain them by any remarks of his own, but at once call upon Sir George Grey to address the meeting. . . , , Sir George Grey, on rising to speak, was received with loud and prolonged applause. He said they were about to discuss the very greatest subject in the world THE DESTINY OF THE HUMAN RACE on the earth—nothing more or less than that. (Cheers.) In order that they might deal properly with so truly great a subject, they ought to come to an understanding to the effect that they would fairly look the whole question in the face. They would not be misled by any appearances whatever, but would look at what was the plain, actual truth. However unpalatable to a large number of persons the statement of such truths might be, it was his duty fearlessly to speak out what he believed upon this subject, and he believed that when he had completed his remarks they would admit that it was their duty to support him in the objects which he had'in view. (Cheers.) Sir George proceeded in very fine language to describe tne position of man upon this earth and the provision made by a bountiful Creator, by which everyone of us was given an undoubted right to the same share upon that earth from which all had to get a living. The earth and the atmosphere, he said, were equally necessary to our subsistence; all had a right to the sweet and blessed air ot heaven in its proper form, and no fellow mortal could deprive us of our right to a portion of the earth or to a portion of the atmosphere which surrounds it. (Cheers.) Was it right, therefore, was it proper, he asked, that some few amongst the human race should monopolise the globe in a manner in which it had been done in New Zealand ? Of all countries in the world, he believed this country gave the saddest aspect of what the greed of man might bring us to—for man to rob his fellowman of that which was his undoubted right under all circumstances, bub more especially in New Zealand than in almost every other country. (Cheers.) What they were therefor that night was to consider what were the claims that we, the inhabitants of New Zealand, had upon these benefits which the Creator had given us certain rights to.

A RETROSPECT. When the Europeans first came to New Zealand the land was owned by, comparatively speaking, a sparce native population but that population had beneficent land’ laws. The land was the common property of the bribe, and the chief was the mere distributor of the rights of the members of the tribe over which he ruled. That gave to all land and a right to enjoy the benefits of the earth, the right of man to make a home for himself and his family, and to rear up bis little ones in plenty. The earth was nob closed against him. But unfortunately, even amongst some of the first who were sent here to win the heathen natives to the Christian faith, this longing for land entered; they first taught the natives to dispose of absolutely, land which previously to that had been the common property of all, and they then claimed vast tracts of land by reason of these alleged purchases from natives. Then began the system of ACQUIRING LAND FROM THE NATIVES,

nob for anv individual, bub for the public —for the' nabives and Europeans alike. The natives gave up the right to personal property over considerable districts, bub bhev gave it up on condition that all men in New Zealand were to have an equal right, whatever their race might be, of acquiring on the same terms the land with which they had parted. (Cheers.) This appeared to give hope to all, bub a change took place. ' Parliament at Home handed 'over to the inhabitants of New Zealand the whole of the lands which had been acquired for the British nation at large, and gave the newly-constituted legislatures in New Zealand " the right to make any laws or regulations they pleased in reference to such lands. That was a noble gift, and and it was believed that the legislators to whom that noble gift was entrusted would have dealt with it fairly and justly. The land, as he had previously shown, was at this time common property in New Zealand, bub there was discontent in the minds of many men. These men saw they had power to acquire almost fabulous wealth, and they soon made a new law. They took from the general legislature bhepowerof dealing with the land, and then gave to each provincial assembly the power of making laws and regulations for the disposal of land within the limits over which each provincial assembly had control. In this way, there was withdrawn from the inhabitants of New Zealand any power of ascertaining in what way in any particular province the lands were disposed of. LAND GRABBING.

The result was that in some of the provinces laws were made which enabled a few individuals to acquire enormous property, to the permanent injury and ruin of the whole of the country. There were, he found, in this colony 346 private owners and sixteen banks and companies that owned between them 7,348,713 acres of land. That was not right. (Cheers.) No more flagrant wrong could be thought of. (Cheers.) What he wished them to get into their minds was this, that the meaning of the property tax was to prevent them getting at that land. What he was struggling for, and what he had striven for in the past, was that a certain portion of chat benefit which had arisen from these seven million and odd acres of land, that the people of New Zealand as a whole should derive some advantage from the enormous wealth that these people had got from that land. (Cheers.) _ . SIR GEORGE GREY’S LAND ; TAX. The law that he (the speaker) gob put upon that land was put on for the purpose of preventing people holding land simply in order that they might make money by its future sale, and. . in - order that the people of the colony should derive some portion of the enormous advantages which were their undoubted right. (Cheers.) He had stated that-the number of acres was 7 348*713, and,, according to the Government estimate, the unimproved value of

that land was £15,153,630. It was our railroads, our children, our labour and the population of this country by immigration, paid for out of our pockets, that had given to this land its present value. (Cheers.) The laws ol our Maker never intended that so few individuals should grasp such immense tracts of territory, and what he (Sir George) contended, was that the people, who wore the creators of that increased value, were the persons bo whom it truly belonged. (Cheers.) He said Let the owners of this land, as was clone under the land tax, enjoy their own improvements untaxed, but those improvements which our money, our laws, our police, our courts of justice, and all else that gives value to land has created, let the poor population of this country and the wealthy population share in the advantages which belong to themselves. (Cheers.) Further, a threat part of that land had come into the hands of these owners without their having paid anything for it by means ot the laws and regulations they made, the e fleets of which were known really to very few. He found, on. referiing to some very valuable calculations made by Mr Farnall—who had laboured assiduously for years, unremunerated, for the public good—he found that 48 of these holders had their properties still in a stato of nature ; they had spent upon them no money whatever. One absentee had, it appeared, spent £75 upon an estate of 7,000 acres, and another had spent £450 on an estate of 68,000 acres.

SMALL HOLDINGS. Contrast with this, the other side of the question. It was found that 9,172 families were living upon from one to ten acies each ; 7,507 families were existing upon plots of from ten to fifty acres ; or a total of 16,679 families were living on patches of from one to fifty acres to each family. At the lowest estimate there were upon these properties upwards of 80,000 of the poor having between them something under 300,000 acres. He (Sir George Grey) had said, let a tax be pub upon all that unearned portion of the value of lands in order that the people may derive some benefit from them, and now that the whole world was moving in this direction, one cry should go up from New Zealand,, and the people should say, as with one voice, “ V e will have that to which we are fairly and justly entitled.” (Cheers.) The victory would not be an easy one, he knew, as might be imagined from a recollection of the experiences of the last session of Parliament. A JUST LAW. Ten years ago a law was made —the first law of the kind in the. world—which gave liberty, and hope, and justice to every man and child in New Zealand, and that law was to this effect : that every property, in town and country alike (and those who stated that country property escaped the property tax were trying to confuse the people), every property was valued with all the improvements that the individual had made upon it, and then the improvements were valued, and the improvements were deducted from the sum total, and that was what was taxed. (Cheers.) That gave to the people of the country some share in that portion of their money which they wore entitled to, and it also compassed a great difficulty. Bub new legislation took place, and in some way or other, although he (Sir George) believed he had a large majority, that majority suddenly disappeared. The land law that had been enacted was repealed, and in lieu of that land tax THE PROPERTY TAX

was put on, and then there was triumph amongst the owners of those great estates. They thought they had succeeded, but he (Sir George) knew in his own mind that the law which he had made would be heard of elsewhere, and that other men vyould grasp at such a solution of a great difficulty. He therefore determined that he would work for the future, for the future, of the whole human race, and especially for the good of the children of New Zealand. He tried to impress upon Parliament the necessity of legislating for future generations, but they would not listen to him, and his anxiety for the welfare of the human race came to be a standing joke. The proof that his views were correct was before him, for no doubt many of those whom he was now addressing were of the children for whom he had then been working. (Cheers.) He saw at the late Jubilee that those for whom he had worked were already here, and he now called upon them to help him on this occasion to work for the future still —not only for the moment. The law that he proposed was a good law for the moment, but its benefits would last for all time and would change the face of the world. (Cheers.) A FICTITIOUS VALUE.

Let him give another instance to shew how their interests had been overlooked in times past. The people who had obtained possession of these enormously large properties did their best to increase the value of those properties by only putting up for sale very small pieces at a time. For instance, if there were one hundred applicants there were only fifty sections put up, and these hundred applicants bid one against another, and extortionate prices were won from the poor, which they were quite unable to pay. (Cheers.) To this, he (Sir George) objected, and did his best to stop it, but this thing went on, and sent misery upon the purchasers of the land. They became impoverished ; they could nob realise the means of paying interest upon the money they had been compelled to borrow co get the land, and they became ruined. THE FAIR RENT BILL.

He (Sir George) then brought in a Bill, which was afterwards called the Fair Rent Bill. Under this Bill all sections were to be re-valued, and a fair rent put upon them by a commission authorised to decide the question, and the result of its adoption would undoubtedly have been that rents would have been largely decreased. When this Bill was introduced there were cries that it was a dishonest act on his part to propose an agreement between the Government and the individual, by which the colonists of New Zealand would be encouraged to enter upon unjust and fraudulent acts. Well, these poor people dragged on in misery and wretchedness for about seven years, and he (Sir George) was surprised one day to get a letter from the Premier, whose Government had done everything that was possible to oppose him. The Premier had found it necessary to introduces his (Sir George Grey’s) Bill, and had sent for him to ask him whether he would take it in his charge and carry it through the House. (Cheers.) Just' fancy, in that lapse of time, how many hearts had been broken, how many people had been turned out of their farms, and what misery and wretchedness had been caused for the want of a law of this kind. SMALL PROPRIETORS MISLED. These were the difficulties which would be found with all these questionsattached to land. It would be found that the small proprietors, would be told, as the people of the Waikato had been told, that they would get no advantage whatever from the withdrawal of the property tax,

that they paid nothing under it, because their property was worth under £SOO. A statement of that kind was pure nonsense. . •Supposing a poor man bought a property, in five cases out of six he would be only able to pay so much down, and he would have to mortgage his property to.guarantee payment of the balance. Ho (Sir George) believed there was hardly a farmer about here who had no mortgage upon his land. Well, who lent, them the money ? Was it not the capitalist, and the capitalist had to pay the property tax. Was it likely that he would do so without making the landholder. pay for the property tax? Not a bit of it; and yet that had been absolutely an argument that procured the repeal of the land tax whmh he (Sir George Grey) introduced. He believed that the poor man would pay property tax through the person irom whom he borrowed money, even more than the property tax, and in that belief he was right. At the same time it appeared so hard on a small farmer that he should pay interest on his mortgage and property tax also, that, without reasoning the matter out, he in many instances gave the vote which enabled the land tax to be done away with, bringing great misfortune and suffering upon himself. He thought they would all follow him in the fact that the man who lent money and who had the property tax to pay, charged correspondingly an increased interest on the money lent. PAID MANY TIMES.

The same thing took place with regard to other persons without their knowing that it happened to them. When the property tax was levied upon the shopkeeper he had to pay upon all the goods in his store belonging to himself, and if he did not sell those goods for a year he paid property tax on them again. Was it to be believed that the storekeeper did not add the property tax to the prices charged for his goods? It was the poor people who paid the tax and not the merchant, who gave the money in the first instance. (Cheers.) THE ONLY REMEDY.

The whole of .that could be got rid of under the ‘system of which he had spoken—the total valuation of land with improvements, the valuation of improvements alone, the deduction of tho improvements from the total and taxation upon the residue only. When that Bill gob to London a meeting took place, at which there were present delegates from different parts of the Empire, to discuss this very subject, and they passed a resolution that they were satisfied with the solution of the question contained in that Bill. Now he saw that the great. Radical party in London had endorsed hi 3 views, and tho same thing was running through the greater portion of the world at the present time. (Cheers.) They would have a gentleman here shortly from the United States (cheers) who would tell them the same thing. It now rested upon the people themselves tosay whether they would not free themselves altogether for the future from this property tax. The beauty of this tax in the eyesof the great owners was that all property was classed on the same footing. A house that a man built for himself, and a garden which he improved for himself, were all valued in the same way as lands of .the enormous extent, and to which a fictitious value had been given. Would anybody contend that if a man in his spare time greatly improved his garden, with his own labour, he should pay the same proportionately as the man who spends £440 on 68,000 acres of land ? Was there any fairness or justice in that ? But, if they said that land ; and all other property was to be classed in the same way, it could nob be otherwise. The land owners knew that while this tax remained they were perfectly safe, and that they could nob be compelled to pay that which it was their bounden duty to pay. GRIDIRONING.

He would tell them about gridironing. The way that was done was as follows : They laid out 20-acre sections, and between each a 19-acre section. That being done, they then made a rulo that not less than 20 acres should be purchased. But how many knew that there were the 19 acres between? Then the leaseholder purchased the 20-acre section, and any person choosing a section was told that those could not be sold,as they were only 19 acres. Thus the man was defrauded from getting land. Then the law was changed so that less than 20 acres could be purchased, and, of course, the first applicant got it. They would see that for years and years no rentwas paid for the 19acre sections. Apoorman that heknewabout once selected a 50-acre section, but he was told that another gentleman had a preemptive claim for 19 or 20 years before. Pre-emptive rights were that they had in their run the right to purchase any quantity of land. These people took up preemptive rights, and thus shut out farmers. If a particular lot was selected, then the holder purchased that. Another case he heard of was that of a man who wanted 1,000 acres. The leaseholder bought 20 acres and then the applicant was told that ho would have to apply for the residue afresh. When he made another application a second 20 acres was purchased, and thus he was put off again and again. At last a wealthy man took the matter to Court, and the judges decided that he was entitled to the residue. After that pre - emptive rights of fencing were granted. That meant that if a man put up a wire fence lie got a pre-emptive right over 320 acres for every mile of fencing. The fence cost £6O, and by that means they got the use of 320 acres free of rent for about 10 years. If a farmer wanted to purchase right out he had to pay £640 down in cash. Now that was the way in which those enormous properties were obtained. If they could not get the property tax repealed, then a court of inquiry should sit, and a searching investigation bemade as to how these large properties were acquired. He believed that rather than face that, many of these large holders would come round to their side. The experiment was at any rate worth trying. (Applause.) For the sake of the children, and their children’s children, something should be done in the matter.

REDUCTION OF MEMBERS. They had already reduced the number of members in Parliament by 25. He thought it should have been reduced to 50. (Applause.) Now; he contended that the first thing that ought to have been done by the Parliament was to dissolve and have a new election, as 25 members were really not entitled to sit. The fact was that members would not vote against the Government for fear of a dissolution, when 25 of them must lose their seats. They knew that for years the Government would nob let him 'bring forward a Bill. They always took away his day. Once they were nearly caught, but the Government remembered that the Governor was to have a ball that night, and so the House was adjourned. (Laughter.) He, however, made a discovery last session'; that was that he could alter the Bills brought in by the Government, and by that mean 3 he got in the clause a single vote for a single man. (Applause.) BOYCOTTING. The other day he read a report of three judges in England that boycotting was

cruel—with which he agreed—and that it was unlawful, of which he was not sure. He read from a report in which it was stated that if young men came out to Canterbury they were well received until they tried to buy land. It was the public opinion that it was mean to buy land which was already held by runholders. Now, ho considered that was really boycotting. It was cruel and altogether disreputable. Not only that, bub men on the run who saved money were looked upon with suspicion lest they should want to buy land. He felt certain that members in Parliament who tried to do their duty were practically boycotted. INCREASING POWER OF WEALTH. A great change was now baking place in the world. Men were becoming educated, yet what struck him was the immense honour given to money. If a poor , uneducated man got money he was put into the school boards and called to the Upper House. (Laughter.) He thus became great, although still uneducated. POWER GIVEN TO SYNDICATES. Another growing evil was the enormous powers that were now being given to syndicates. (Applause.) He saw that a former Premier of the colony who was now in England, and who they were told was soon to come out again—Sir Julius Vogel—was the head of asyndicatethatwas to receive 16,566,640 acres of land in Western Australia. Why, that was more than the whole of the Holy Land from Dan to Beersheba. (Laughter.) He also saw that a large tract of land, on which there were located over 5,000 Australian natives, had been given to one man as representing their syndicate, and of course the moment it was handed over to him those 5,000 natives lost all their rights in it. Was that just? These natives became penniless beggars, and he considered such legislation for it was in a Crown colony—was disgraceful to England. It was another sign of the power not of wealth, but of stock jobbing syndicates that were ruining thousands. (Applause.) He thought that system of giving great advantages to money was a disgrace to the present time. (Applause.) He should have said that the land was handed over to a syndicate with power to purchase at 23 6d per acre. The object was to get a railway. It vva3 now thought right to give land to syndicates in order to make railways. Then they kept both the land and the railway (applause.)

PEERS FOR GOVERNORS. Ho saw that it had been stated that in future the colonies were to have none bub peers for Governors. Now, while admitting that there were many , estimable gentlemen amongst the British peers, he held that a nation to rise must have nothing at the top weighing it down (applause), and if they must give .up all hope of choosing their Governors if they pleased, they then abandoned the greatest spur of merit —the knowledge that all might rise to that distinguished position (applause). Abraham Lincoln was only a shingle splitter, but he was as great as any peer (applause). When he heard that principle laid down it was a breach of trust—unjust. The colonies—including India - gave £200,000 per annum to the Home Government to get the best and able men, and it was unjust to lay down the principle that that sum of money must go amongst one body of men. It was another instance of the power of wealth. He hoped that the people of New Zealand would nob recognise either wealth or rank alone, but that every mother, while nursing, might please herself by thinking that her child was a possible Governor. (Applause.)

FEDERATION. One of the great changes of the present time was federation. That was a subject that required careful thought. The legislators in England gave them in New Zealand a Constitution, and with it an Upper House, not chosen by the people, but virtually made by the Crovvn. If once they got into that Federation Council they could not get rid of that Upper House. They should ask to have a time fixed when the Constitution could be closed, and the people should be allowed to choose whether or not they would hand over themselves and their descendants to a Federated Council. They were already federated with England as close as they could be. It was" complete, and much to the disadvantage of the colonies he thought, but he would not speak of that at present. England would never federate with the colonies, for they had never considered the matter. The Federated Chambers of Commerce in England offered a prize for the best essay on Federation. The three best essays proved that Federation was the right thing. It looked pretty upon paper, but a calculation showed that in 50 years England would be in the minority, and the representatives of the colonies would be ruling the destinies of the Empire. England would not want Federation when it waked up to that fact. He hoped England would always bo the head of the Empire (applause), and he should be sorry to see the prestige of the Empire dragged about by black legislatures log-rolling for various colonies. England would not consent to be in the minority and neither would the colonies in course of time. (Applause.) He thought the present system was federation complete and perfect, and he should be sorry to see anything further done. (Applause. ) It was quite clear that Australia must federate her colonies, for Western Australia at present owned about one-third of that continent, and it would not do to leave that all in the hands of a population of 40,000 or 50,000, as at present. Then another point was that Australia must have coloured labour. That they did not want in New Zealand. (Applause.) This colony should be the one pure European population without any adulteration of the blood (applause), a population able to assist the Europeans in Australia if they got into trouble.

CONCLUSION. He would have them recollect that they were really in eternity now—that they were here undergoing training for eternity. That it was the noblest thing could do to work in concert with their Creator for the good of mankind, to see that their fellowmen get their just rights (applause) by determining that these moneys, realised by pressure of population giving increased values to lands, that at least a part should be used for the benefit of the poor and the destitute. That in this new land their cities should not be like those in the old country, to a great extent composed of slums, such as there were in London, with children dying improperly for want of care, Let them think from day to day that here on earth the Creator’s will was being worked out by them ; that their influence was great, not only in this world, but in the future, through those whom they had influenced upon earth, and not let longer exist what was manifestly wrong for the best interests of this country. (Applause.) Why not restore to all the right that had been trampled under foot, and having done that work by means lawful and energetic, to show that they were de*

termined to have justice done ? (Applause.) Let them do that by abolishing the property tax and by putting on no other than a land tax. (Applause.) He had tried to put the matter fairly before them, and if he had failed he should always regret it. He did hope that they would agree with him that the time had come when having obtained an equal vote with the richest in the land, that having got that power, they would use it to get for themselves, for the rising population, and for all those they hoped yet to come to this colony —that boon which the greater part of New Zealand was now longing for from end to end, and determine if possible to obtain it. (Applause.) The Chairman said he could not refrain from thanking Sir George Grey most warmly for the eloquent address he had just delivered. Whilst he was speaking the words of the poet came to his mind :

“1 gazed into the future far as human eye could see, And saw a vision of the world and all the wonders that may be."

MrG.L. Peacockomoved, “That, whereas there is now throughout the world a widespread consciousness that the claims of labour are not adequately represented by society, it is desirable to bring about that state of tilings that shall secure to all men their just rights. That, as the first step towards that end, it is desirable to more fairly adjust the incidence of taxation by putting a tax upon the unimproved value of land.” (Applause.) Mr Peacocke spoke warmly in support of the resolution. He pointed out that already they could see by the evidence given before the Sweating Commission at Dunedin, that there were springing up in these young countries some of the curses of older countries. To prevent this they should put a tax upon the unimproved value of land, and abolish the property tax, as the first step towards that object. (Applause.) Mr W. J. Napier seconded the motion, and said that after the intellectual treat just given them by the Nestor of New Zealand, it would be presumptuous for him to speak at any length. He wished to point out that by the law of England there was no absolute freehold in land. The Crown only created tenants. Professor Sheldon Amos, a distinguished profe - sor of jurisprudence of London University, had laid it down that there was no absolute freehold tenure, and consequently that the State could rightfully take by aland tax the unearned increment upon the land. Mr Napier also pointed out that the land tax had practically been in existence in India since the days of Warren Hastings, until Lord Cornwallis granted the greater part in freehold. The part still held by the Crown at present returned 16 millions per annum, and had the whole been still held it was calculated that the total income would now be 126 millions, more than sufficient to carry on the government of the country. He hoped they would earnestly and continuously strive until the tax had been imposed by a statute in the statute book of the colony. The motion was adopted unanimously. Dr. Laishley said that on behalf of the Anti-Poverty Society he had been asked to move a vote of thanks to Sir Geo. Grey for his address. Without in any way expressing on that occasion any opinion as to the wisdom of imposing a land tax in New Zealand, he ventured to say that if eloquence could convince and earnestness persuade, the land tax would receive many converts that night. Eor a great orator had spoken —an orator who, he ventured to think, had no living superior. And he said this after having heard the thrilling words of the first of English living speakers— Father Ignatius ; after having listened to the moving power of Gladstone, the weighty sense of Cardinal Manning, and that prince of mass meeting orators, Mr Bradlaugh. Dr. Laishley then moved, “ That the cordial vote of thanks of this assembly be tended to Sir Geo. Grey for his eloquent and able address.” The Rev. Mr Bates seconded the motion. He said they all admired Sir George Grey’s splendid efforts to enlighten public opinion. He believed that the return that would please him best would be to see the people take an interest in these affairs and struggle to have justice dono between man and man.

The motion was carried by acclamation. Sir George Grey, upon rising to reply, was received with prolonged applause. He briefly thanked the audience and moved a vote of thanks to the Chairman. This was seconded by Mr H. W. Farnall and adopted with great applause, after which the meeting terminated.