.
The Heretic [Henry George] of San
Francisco |
| [Reprinted from The
Occasional Review, date not known (footnotes not provided)] |
The date was Sunday, October 31, 1897. The occasion was the greatest
tribute ever paid by the City of New York, possibly by any other city in
the United States, to a private citizen. It was said that up to 100,000
mourners paid their respects to the man whose body lay in state in Grand
Central Palace and that tens of thousands more, unable to enter, prayed
outside for the deceased. Services were read by clerics from the
Episcopalian, Catholic, and Jewish faiths, and a choir from Plymouth
Congregational Church sang hymnal music.
Late that evening, as the sun set below the city sky line, the
procession, with the bier in a hearse drawn by sixteen horses draped in
black, with the seemingly interminable lines of accompanying mourners,
and with a military band that played Chopin's "Funeral March"
and "The Marseillaise," moved slowly through streets cleared
of traffic, through the center of Manhattan Island, across the Brooklyn
Bridge. As was done by the ancient Romans, a bronze bust of the deceased
was carried by his son.
Perhaps with exaggeration, newspapers reported that the services were
as impressive as those accorded to Lincoln and Grant Tributes to the
deceased poured in from newspapers and individuals all over the world. "Never
for statesman or soldier," remarked one newspaper, "was there
so remarkable a demonstration of public feeling."
On November 1, at a private service, the body was interred in Greenwood
Cemetery. The stone bore these words, from the late writer's greatest
book:
The truth that I have tried to make clear win not find easy
acceptance. If that could be, it would have been accepted long ago. If
that could be, it would never have been obscured. But it will find
friends -- those who will toil for it; suffer for it; if need be, die
for it This is the power of Truth.[1]
"The Prophet of San Francisco," Henry George, died at 58,
felled by a stroke induced by his unrelenting campaign for the
acceptance of his ideas and more particularly by his violation of
doctors' advice that he not run for the office of mayor of New York. He
died four days before election day. We do not know who the winner would
have been had he lived. We do know that in the campaign of 1886, for the
same office, Abram S. Hewitt, the victor, went into office with 90,552
votes; Henry George secured 68,110; and Theodore Roosevelt, then 28,
trailed third with 60,435 votes.[2]
In those times Henry George was probably the most famous thinker,
writer, and speaker in the United States. His followers claim that in
its epoch more copies of Progress and Poverty (1880) were sold
than of the Bible. It was translated into Chinese, Danish, Dutch,
French, German, Hebrew, Hungarian, Italian, Norwegian, Portuguese,
Russian, Spanish, and Swedish and was more widely circulated than any
book ever published in what used to be called "political economy."
Progress and Poverty was turned out in numerous reprintings,
newspaper serializations, and cheap paperback editions. The author's
son, Henry George, Jr., estimated that in the quarter century before
1905 more than two million copies were sold and that the book had a
larger market than the most popular novels of the day.[3]
What was this "truth" that Henry George had "tried to
make clear"? And why does the public of today hear little or
nothing about his ideas? The remainder of this paper will discuss these
questions.
Progress and Poverty opened with the observation that "[T]he
present century has been marked by a prodigious increase in
wealth-producing power,"[4] and went on to point out, with many
examples, that with the multiplication of inventions and general
advancement in the sciences and the arts, the progress one might have
normally expected had not been achieved -- that, if anything, "squalor
and misery, and the vices and crimes that spring from them, everywhere
increase as the village grows to the city, and the march of development
brings the advantages of the improved methods of production and
exchange." George went on to remark, "This association of
poverty with progress is the great enigma of our times."
After a long, nineteenth-century style disquisition on the relationship
between wages and capital (that wages are not drawn from capital, but
both arise out of production) and on population and subsistence (that
human material distress is not caused by growth in population, but by
social factors), George entered into a classical discussion about land,
labor, and capital as the factors of production and about the income
from each -- rent, wages, and interest. In his chapter on "Rent and
the Law of Rent" the reader detects that he departed radically from
either the Marxist attack on capital or the Smithian view that finds no
fault with the private collection of any of these types of income.
According to the Georgist view, the rent of land is in conflict with and
reduces the income accruing to either the laborer or the capitalist.
George adopted a Ricardian view of the law of rent: "The rent of
land is determined by the excess of its produce over that which the same
application can secure from the least productive land in use." He
stressed that the law of rent applies "to land used for other
purposes than agriculture ... in truth, manufactures and exchange yield
the highest rents, as is evinced by the greater value of land in
manufacturing and commercial cities."
He then moved into his central theme when he claimed that "[T]he
increase of rent which goes on in progressive countries is at once seen
to be the key which explains why wages and interest fail to increase
with increase of productive power." He explained that "the
wealth produced in every community is divided into two parts by what may
be called the rent line," with wages and interest receiving
whatever is left over after rent has been paid to the owners of the
land. The lower the value of land, the larger proportion of wealth is
available to labor and capital; conversely, and even though there may be
a high production of wealth, the increase in land-rents prevents the
returns of labor and capital from rising correspondingly. He concluded:
Rent swallows up the whole gain and pauperism accompanies
progress .... To see human beings in the most abject, the most
helpless and hopeless condition, you must go, not to the un- fenced
prairies and the log cabins of new clearings in the back woods, where
man single-handed is commencing the struggle with nature, and land is
yet worth nothing, but to the great cities, where the ownership of a
little patch of ground is a fortune.
The next section of Progress and Poverty, "Effect of
Material Progress Upon the Distribution of Wealth," developed the
surprising thesis that progress in production, the arts, and the
sciences only results in an increase in rent paid to the owners of the
earth and can have no beneficial effect upon either producing laborers
or capitalists.
The reason why, in spite of the increase of productive power, wages
constantly tend to a minimum which will give but a bare living, is that
with increase in productive power, rent tends to even greater increase,
thus producing a constant tendency to the forcing down of wages .
The mere laborer has thus no more interest in the general advance of
productive power than the Cuban slave has in advance of the price of
sugar. ...
The simple theory which I have outlined
explains this
conjunction of poverty with wealth, of low wages with high productive
power . ...It explains what is commonly called the conflict between
labor and capital, while proving the real harmony of interest between
them . ...
Because in the end Henry George did not advocate the elimination of
private title to land, but only the public collection of land rent in
lieu of all other taxes, it is unfortunate that he devoted a large
section of Progress and Poverty to what appeared to be an
assault on the private ownership of land, and even wrote in italics, "We
must make land common property." Of course he concluded by
advocating, not the elimination of private control over land or the
nationalization or collectivization of the land itself, but the
socialization of economic rent from land. Owners would retain all the
income arising from their labor and capital as applied to their lands;
they would determine the use to which their lands would be put; but
government would collect the equivalent of unearned land rent arising
out of factors unrelated ito owners' efforts and would terminate all
other fiscal impositions on labor and capital. George proposed (his
italics), "To abolish all taxation save that upon land values,"
and he went on to contend that to remove taxation from production would
be "like removing an immense weight from a powerful spring."
He argued that present taxation acts like a fine or penalty which
punishes the builder and producer for their temerity and that "to
abolish these taxes would be to lift the whole enormous weight of
taxation from productive industry."
He contended, further, that to shift taxation to land values would "open
new opportunities," because "no one would care to hold land
unless to use it" and "the selling price of land would fall;
land speculation would receive its death blow; land monopolization would
no longer pay."
George emphasized that he saw his "remedy" as applying
primarily to urban and industrial land and resources, which are of high
unearned value, and not to agricultural land, which is of low
comparative value per acre. He argued that working farmers would have "the
most to gain by placing all taxes upon the value of land" because
the total imposition on comparatively valueless land would be quite low,
and they would be relieved of all the present taxes levied upon their
houses, barns, fences, crops, and stock -- and further, "the
personal property which they have cannot be as readily concealed or
undervalued as can the more valuable kinds which are concentrated in the
cities." The book concluded with a ringing endorsement of liberty
and justice, of the need for equal opportunity if either of these is to
be achieved, and claimed:
What has destroyed every previous civilization has been the
tendency to the unequal distribution of wealth and power. This same
tendency, operating with increasing force, is observable in our
civilization today.
When shall come the new barbarians? Go through the squalid quarters
of great cities, and you may see, even now, their gathering hordes!
How shall learning perish? Men will cease to read, and books will
kindle fires and be turned into cartridges!
These were, in essence, the principal strains of Georgist thought --
support for private property and capitalism, a radical attack on the
private collection of land rents, advocacy of a single tax that would be
levied only on unearned land values accompanied by a removal of all
fiscal burdens from labor and capital, and a vigorous defense of
individual freedoms and enterprise.
Perhaps the Georgist philosophy could only have been formulated by a
person such as Henry George, an American who had tasted frontier life of
the nineteenth century and had compared it with life in more settled
parts of the globe.
Born in Philadelphia in 1839, George sailed in 1855 as a cabin boy,
bound for India by way of Australia. In India he observed at first hand
the appalling extremes of wealth and poverty. Back in Philadelphia in
1856, he served for a time as a printer's apprentice, but the next year
sailed for California as a ship's steward. From 1858 to 1869 he worked
as printer and then as editor of newspapers ranging from the California
Home Journal to the San Francisco Times and Chronicle.
During several months of 1869 and 1870 he was in Philadelphia and New
York in the employ of the San Francisco Herald, and while in
those cities he saw much evidence in support of his developing ideas
about the strange relationship between material progress and
intensifying human poverty. In 1870 he served for a time as editor of
the Sacramento State Capital Reporter and during 1871-1875 was
part owner and publisher of the San Francisco Daily Evening Post.
Meanwhile, his philosophy was taking definite form. In 1871 he
published Our Land and Land Policy, drawn in part from an
article he had published in the Overland Monthly. Six years
later he began writing Progress and Poverty.
During the years after the appearance of Progress and Poverty
in 1880, the reputation of Henry George grew quickly. During 1881-1882
he traveled and lectured in Ireland and England. In 1886, as we have
seen, he ran for mayor of New York City; in 1887, for secretary of state
of New York. In 1889, he lectured again in England and paid a visit to
Paris, and hi 1890 his lectures in Australia and New Zealand laid the
groundwork for Georgist reforms in those countries. During his life he
published a great many articles and pamphlets. His larger works, in
addition to Progress and Poverty, were The Land Question
(1881), Social Problems (1883), Protection or Free Trade
(1892), The Condition of Labor (1891), A Perplexed
Philosopher,/i> (1892), and The Science of Political Economy
(unfinished; published posthumously in 1898).[5]
During the life and after the death of Henry George, so-called "single-tax"
and "Georgist" clubs and associations sprang up all over the
country, and there was hardly a state untouched by demands for reforms
in accordance with the views of Henry George. His social reforms were
adopted partially in Australia, New Zealand, Denmark, South Africa,
Western Canada, Pennsylvania, and the irrigation districts of
California.
In part, the Russian Revolution took the wind out of the sails of the
Georgist movement. Marxism not only offered a dogmatic orthodoxy, a
sweeping Weltanschauung which would provide answers to all the
problems of the world;6 what is more, after 1917 Marxism operated from a
bastion of organized political power. That Marxism rather than Georgism
became a dominant world philosophy which now controls the political
processes and thinking of about half the world, and threatens to engulf
the rest of it, is as much due to the political success of Marxism in
seizing power as it I is to any special virtue enjoyed by Marxist
philosophy; but mote than this is responsible for the collapse of
Georgism as a viable movement.
Progress and Poverty attacked the over-organization of human
beings and concluded with a ringing ode to liberty. On the subject of "methods
in which it is proposed to extirpate poverty by governmental regulation
of industry and accumulation," Henry George argued:
... the same defects attach to them all. These are the
substitution of governmental direction for the play of individual
action, and the attempt to secure by restriction what can better be
secured by freedom ... it is evident that whatever savors of
regulation and restriction is in itself bad, and should not be
resorted to if any other mode of accomplishing the same end presents
itself. ...We have passed out of the socialism of the tribal state,
and cannot enter ft again except by a retrogression that would involve
anarchy and perhaps barbarism. Our governments, as is already plainly
evident, would break down in the attempt. Instead of an intelligent
award of duties and earnings, we should have a Roman distribution of
Sicilian corn, and the demagogue would soon become the Imperator.
After a moving section on the virtues of individual liberty, George
concluded, "Only in broken gleams and partial light has the sun of
Liberty yet beamed among men, but all progress hath she called forth."
From the standpoint of potentiality for successful political
organization, the heterodoxy of Henry George and his followers has been
as disadvantageous as their individualism. They have been heretics who
do not fill any conventional mold.
Catholic prelates deemed Henry George to be so contrary to established
doctrine that in 1887 they excommunicated one priest, Father Edward
McGlynn, because of his active support for the ideas of Henry George.
The Holy Office of the Church was so upset by Progress and Poverty
that in 1889 it ruled the book to be "worthy of condemnation,"
which was the next thing to putting it on the Index and meant that
bishops might rule it to be forbidden reading to Catholics within their
jurisdictions. Whether rightly or not, Henry George saw Pope Leo XIII's
encyclical letter Rerum Novarum,/i>, "On the Condition of
Labor," as being directed especially against land reformers such as
himself and not against Marxist collectivists. In response, George wrote
a long monograph, "The Condition of Labor -- An Open Letter to Pope
Leo XIII."[7] But, like many other faiths, Catholicism could never
make up its mind about Henry George. In a rare turnabout, the Church
reversed itself about Father McGlynn and restored him to his priestly
functions in 1892.
George was very strongly supported in his views by other Churchmen,
including especially Thomas Nulty, Bishop of Neath in Ireland; and in
1946 the Bishop of Rio de Janeiro, Dom Carlos Duarte Costa, far from
forbidding the reading of Progress and Poverty within the area
of his ecclesiastical authority, wrote the following about the book:
After the Gospel, this is the book that I love and admire
the most It does not surprise me to learn that, after die Bible, it is
the most widely published book in all the world. I think I do not
offend God when I say that Progress and Poverty plays in the
material realm the same role that the Gospel unfolds in the spiritual
world.
It is a profound book, of intense philosophical, moral and political
radiance. It has simplicity and grandeur.
No religion has been able to condemn it, because it is supported by
the most profound and noble sentiment that God has placed in the heart
of man: The sentiment of justice.
And since this book, in the last analysis, preaches nothing but the
application of justice to the economic activity of man, I think I can
present it with this single phrase:
Here we have the Gospel of Abundance![8]
Those who attempt to classify Henry George in the conventional
left-versus-right spectrum gain no comfort from a listing of his
supporters. His views found favor among individuals of the most varied
possible points of view -- Albert Einstein, Leo Tolstoi, John Dewey,
Helen Keller, George Bernard Shaw (before he became a socialist), Albert
Jay Nock, Winston Churchill (at least during his early political
career), H. L. Mencken, Tom L. Johnson (Georgist member of Congress and
later mayor of Cleveland), William Lloyd Garrison, Jr., William Jennings
Bryan, Joseph Fels (the soap manufacturer who established the Fels Fund
for the propagation of Georgist views), Frank Chodorov, and a host of
others so varied that they defy easy classification.
One can no more define George in terms of his critics than of his
friends. In 1881 Karl Marx wrote that the whole Georgist philosophy was
"simply an attempt, decked out with socialism, to save capitalist
domination and indeed to establish it afresh on an even wider basis than
its present one." Henry George, on the other hand, saw Karl Marx as
the "prince of muddleheads" and regarded the founder of "scientific
socialism" as a "most superficial thinker, entangled in an
inexact and vicious terminology."[9] George also attracted critics
from investment circles on the right. Immediately after his death. The
Financial Times, while lauding George's sincerity, remarked that, "From
a Stock Exchange point of view, his death removes a disturbing element
in American political and industrial life."[10]
Henry George and Herbert Spencer were in agreement regarding both
Spencer's individualistic position and his early expressions on the
equal rights of all to the earth, as published in Social Statics,
(1850); but, when Spencer reversed his views on the land question in
The Man Versus The State and made critical reference to George
himself, George became so exercised that he devoted a whole book to
refutation of the revised views of Spencer.[11] George expressed his
non-conformity with either Spencer's new position or that of the
socialists by roundly condemning the failure of either one to offer
workable solutions to the problems of social distress.[12]
Furthermore. Georgism has always been plagued by a peculiar political
ineptitude never suffered by Marxism. Though he ran twice for mayor of
New York City and once for the office of secretary of state, George
tended to reject political involvement. He preferred to lecture and to
write; in establishing so-called Henry George schools, his followers
opted for classroom activity separated from specific political results.
After George's death, Henry Hyndeman, friend and socialist opponent,
said, "He has died in a chivalrous attempt to accomplish the
impossible without even organizing his forces for the struggle."[13]
In terms of contemporary categories, there is no home for the Georgist
point of view. George combined an appeal to individualism, to freedom
from political restraints, with advocacy of the public collection of
unearned increment from ground rent in lieu of all other/ taxation.
Thus, there is both a "libertarian" and a "socialist"
side to Georgism -- a combination which is inexplicable to people who
are accustomed to conventional patterns of socio-economic thought.
George would "socialize" economic rent; but there is this
profound difference between Georgism and Marxism and kindred ideologies:
Whereas the socialist ideologues seek total political monopolization and
control over all facets of collective and individual life, Georgists
conceive of the initial step of public collection of land values as
providing the basis for distributed private ownership; as liberating
producers from the fetters of taxation over labor and capital, as
offering a social solution that will reduce the necessity for further
governmental impositions or interventions.[14] They hold to the view
that the governmental collection of unearned economic increment will
create the basis for uncontrolled, individualistic improvement of the
general social condition.
The oddity of such ideas helps to explain why the attitudes of Henry
George and his social-libertarian followers have been as indigestible to
the Marxist left as to the libertarian right, and to most persuasions in
between.
The problem faced by Georgists and by other heterodox thinkers is
somewhat akin to that of forming an anarchist political party. People
who by their natures are proponents of individualist solutions to human
problems are for that reason antagonistic to effective political
organization. More especially, heretic-individualists like Henry George
do not lend themselves easily, or at all, to the sorts of cohesive
political mass movements that are most successful in capturing political
power. So, in the end, the proponents of the manipulation and control of
the human race by self-chosen elites can organize for the achievement of
a world after their own images, and unorthodox heretics like "The
Prophet of San Francisco" render themselves powerless to change the
course of history.[15]
|