.
The Visit
of Henry George to Australia
March-June 1890 |
Margery
Jackman
Melbourne University |
| [Reprinted from Good
Government, August, 1983] |
SYNOPSIS
Henry George visited Australia from March to early June 1890. In that
time he travelled as far north as Rockhampton, as far south as Melbourne
and as far west as Moonta, as well as making extensive trips inland. His
reactions to Australia were surprisingly small, and it is the theme of
this essay that his impressions were limited both by his own strong
convictions, and by the educational purpose of his visit, so that the
things that impressed or disturbed him most were the things that most
favoured or prejudiced his theories, and not necessarily the unusual or
outstanding features of the colonies. This does not necessarily
invalidate his impressions, but it does limit them to a smaller field
than would be expected of so well travelled a journalist.
GEORGE'S PURPOSE
Henry George came to Australia in 1890, not as a visitor to this
country, but as a dedicated and uncompromising exponent of 'Georgism' --
the theory of raising revenue by a single tax on land values which would
replace all other taxes, including tariff revenues. His reactions to
Australia were limited by the nature of his tour; it was a lecturing
tour, aimed at educating Australians, not observing them. George differs
from other nineteenth century visitors to Australia in that he did not
come that he might write about Australia, but rather that Australia
might write about him and his ideas. For this reason I have, in this
essay, considered both George's reactions to Australia, and the
Australian newspapers' reactions to him, since it is unrealistic to
divorce the man himself from the response he came to elicit.
The Australian newspapers reflect markedly the pre-determined scope of
his visit; their greatest response was to the questions of free trade
and land tenure-the two major points of George's educational tour.
Their reactions to his theory of free trade were disappointing. It was
a bitter issue in the colonies, especially between free-trade NSW and
protectionist Victoria, and most of the major newspapers had already
decided on the question. It is puzzling that the newspapers seemed, at
first, unsure of the stand that George would take on free trade. His
book
Protection or Free Trade had been published in 1886, and advance
sheets of it had appeared in The Argus, but it was obviously not
so well known in Australia as Progress and Poverty.
The Boomerang, a Protectionist paper, was obviously surprised
that George was for free trade, and The Age, The Bulletin,
and The Brisbane Courier also seemed uncertain as to his views.
One of the obvious achievements of his tour was at least to make it well
known that he was an absolute free-trader. By the time he finished his
tour there was no uncertainty on that point. The Age in
Melbourne complained that 'George seems to see his mission as chiefly
praising Free Trade and denouncing Protection', the Brisbane Courier
extolled him as an 'uncompromising Free-Trader' while The Bulletin
and The Boomerang published full page cartoons opposing George
on Free Trade.
Apart from the Sydney Daily Telegraph which was a convinced
free trade paper, there was general agreement that George's ideas on
free trade were a mistake, particularly in Australia. The Brisbane
Courier reported the welcome given to George in Brisbane, suggesting
that it would have been warmer if he had not been so uncompromising on
free trade, as unhappily some working men see Protection as raising
wages'. The Bulletin commented that 'the Single-Taxers here have
ruined the cause (of land reform) and rendered it hopeless by allying
themselves with the Free-Trade party'. The Boomerang echoed this
comment, objecting that George by 'tying land reform and free trade
together', was destroying the land nationalisation movement.
The criticisms of his free trade ideas are very disappointing; most of
the papers merely oppose his views, without answering his objections to
protection. The reason for this could be again the limited nature of
George's visit. He had such a full lecture programme that he was unable:
to adequately study the local situation in the colonies, and his
lectures on Protection were of a general nature -- arguing the principle
rather than applying it. The best example of this difficulty is the
Melbourne debate between George and Trenwith, MP, arranged without
George's consent. An opponent of free trade wrote about the debate, 'We
in Victoria did not go in for Protection on abstract principle of right,
but as an expedient to meet certain present circumstances.
Mr.
George says it won't answer, our reply is that it does.'
LECTURES AND DEBATES
The Age on the day following the debate devoted both an
extensive editorial, and a four column report to this debate. The
editorial commented on the lack of real debate, owing to the different
stances of the two speakers; Mr. Trenwith citing local issues and Mr.
George persistently refusing to deal with definite issues. His speeches
were for the most part rhetorical displays, rather than challenges or
replies to debate. The editorial, while criticizing George, admitted
reluctantly that the audience was obviously carried with him. The
article in the same issue was more sympathetic to George; the full
debate was recorded, and the audience reported to be 'well balanced on
the question'. From the inserted comments it would appear that George
carried the debate easily, although some of the credit for this must go
to both his rhetorical skill, and the blunders made by the opposition.
For example, Trenwith made an unfortunate mention of tea to which George
made scathing remarks on Victorian farmers growing their own tea.
Trenwith also quoted Savings Bank figures to show that the NSW worker
was less prosperous than the Victorian; when forced from the floor to
give the relative figures in full, it was found that credit in NSW was
exactly twice that of Victoria -- the paper commented 'The discomfiture
of the speaker was complete'.
George noticed the cooler reception given to him in Melbourne and
attributed this, rightly, to his free trade policy. In Melbourne the
Land Nationalisation Association, which had invited George, included
both Protectionists and Free Traders. This had been the case earlier in
NSW, but the Association had changed its name to 'Single Tax League' to
take a strong free trade stand. George commented on this favourably,
thinking it an improvement that the League should be 'fewer in number,
but free from dividing and demoralising complications'. Although the
Melbourne audiences far exceeded his expectations, he was disappointed
at the stand taken by Single Tax men who were 'indisposed to take any
position in opposition to protection as hopeless at present ... (but)
content to accept the protective policy as a fixed fact'.
In summing up his reactions to Victorian protection, George wrote to
his paper in America 'Protection is there a shell, and .. .if our
friends will come out boldly and attack it, a free trade party can soon
be formed which will bring life into the stagnation of Victorian
politics'. This was too optimistic a judgement on his part, and could be
the result of confusing the overwhelming audience given to a skilful and
famous speaker, with real support for his ideas.
One of the big difficulties faced by George in the colonies was the
link between landowners and free traders on one hand, and workingmen and
protectionists on the other. Those who favoured free trade were mainly
large landowners who opposed George's land policy, while those who
favoured land nationalisation were workingmen who opposed free trade. As
The Argus said, 'he is unpopular with the landowners because he
says they have no conscience, and with the protectionist workers because
he says they have no brains'.
George was invited to Oueensland, Victoria and South Australia by Land
Nationalisation Associations, and his land theory, the main point of his
book Progress and Poverty provoked a wide and differing response
in the colonies. His reactions to the land situation in Australia were
conditioned by his theories; he saw the results of land speculation
everywhere, declaring it to be unsurpassed by the booms of Denver,
Kansas City and Los Angeles. He opposed the taxing of improvements in
NSW, particularly the valuations based on actual rent of land, which
means that a valuable city block, let as a cow paddock, would pay
practically no rent at all.
His lectures were devoted to expounding his theories of land tax, with
very little local reference to Australia, except to generally comment on
the anomaly of progress being constantly accompanied by poverty. This is
surprising, since the signs of the 1893 depression should have been
recognisable by 1890. Once again this lack of local comment could be the
result of a rushed tour, crammed with too many lecturing appointments,
making it alm~st impossible for George to study the Australian scene
itself.
The one colony which he did study was South Australia. He was
interested in it as 'an organised attempt on the part of individuals to
found a community in a new country'. He had obviously studied
Wakefield's theory, quoting from memory from 'Letters Between a
Statesman and a Colonist' which he had read in the Adelaide
Parliamentary Library. When lecturing in Adelaide he referred to the
Wakefield theory as one encouraging land speculation and disregarding
the rights of every man to work the land for himself. He saw South
Australia as the first real application of his land theory, and he was
optimistic that the ½d tax on unimproved land value would soon
increase to a far greater amount.
His lectures and the newspaper reports again reveal the difficulties of
assessing George as a commentator on Australia. His lectures were
general expositions of the ideas of Progress and Poverty; They
were not adapted to the local scene, since he had practically no time to
assess it, but the criticisms of the papers were of a local nature, so
that there was practically no real discussion on common ground.
With the exception of The Boomerang which declared that it had
'no quarrel with his proposal to confiscate landowners' property', the
major newspapers opposed George keenly on the question of compensation.
The Age saw the Australian situation as different from England,
since here 'the farmer usually owns the farm which he cultivates', and
the Single Tax would reduce him to the position of a tenant. The
South Australian Register suggested a tax on the unearned increment
as from now, but on the total value, to avoid both confiscation and
compensation. The Bulletin advocated compensation for the
landowner, who had in most cases bought his land from the State; it
recognised the situation as being unique, in that less than one quarter
of the land was alienated in NSW, and so compensation would be
practicable under these circumstances. George, apart from commenting
that the South Australian theory 'might be better than nothing' did not
answer the specific criticisms made, but expounded his general principle
that the land belonged to everybody, and therefore compensation was
unnecessary, even should the single tax 'be brought in tomorrow morning
after breakfast'. His view was attacked as immoral robbery by all papers
except The Boomerang for whom he was 'the land-for-the-people
apostle, no more, no less'.
IMPRESSIONS OF AUSTRALIA
Some indication of the extent to which George's reason for visiting
Australia influenced his reactions to this country can be seen by the
fact that he made practically no reference to the federation of the
colonies. He visited Australia in 1890, when the newspapers were full of
federation news, but George mentioned it only in reply to a question, as
one step towards free trade between the colonies. He spoke vaguely of
some future 'federation of all the nations of the English tongue'
leading to world peace, based on international free trade, but again his
response was only in so far as this affected his theories of free trade,
not in response to the immediate circumstances of the Australian
colonies, or the English speaking world.
His attitude towards federation was typical of his attitude in general
to Australian politics. He was here to spread his ideas, and where his
ideas were not concerned, he made little comment. Any reaction to
Australian politics was of a general rather than a particular nature. He
believed that government should be as close as possible to the people,
and therefore he approved of the system of responsible government,
although he felt that is was less stable than the American system. It
was one of his principles that the State should only 'do for the whole
those things that cannot be done well by individuals', and for this
reason he approved of State owned railways, tramways and telegraphs,
since they were in their nature monopolies, and should therefore belong
to the whole people (the State) and not individuals. In an interview
published in the
Brisbane Courier George mentioned the evils of private monopoly
in America, and commented on the tendency there to follow the Australian
lead towards State ownership. He was very impressed with the railways,
apart from the different gauges which he saw as a protectionist measure
he wrote back to his American paper that 'the State management of
railways in Australia at least, is such a success that no-one seems to
dream of resorting to the system of composite management'.
He did not however approve of State control of schools, police,
waterworks, gas, roads and parks. His greatest criticism of the colonies
was that the government was too centralised, that local municipalities
should have far greater powers, as they did in England and America. This
criticism was in keeping with George's conviction that government should
be as close as possible to the people, but it was an unrealistic demand
to make of such sparsely populated areas as the Australian colonies in
1890. Once again it is possible to see here how George's own convictions
dictated his response, rather than the actual circumstances of the
colonies. In Maryborough, Queensland, he was asked to present prizes to
some school children, a task quite new to him, and he wrote later to
America that although education was too centralised, the system of free,
compulsory and secular education worked well, especially since so much
of the method and syllabus used was decided by the individual teacher.
He expressed his admiration for the colonies parks, museums and
libraries, but he felt that the 'centralised and paternalistic character
of the general government' meant that too often the same members of
Parliament were re-elected because they promised local 'road and bridge
work for their constituents'. He was in Adelaide during an election, and
this experience reinforced his admiration for the Australian secret
ballot. Even before George visited Australia, his newspaper, 'The
Standard', carried on its front page, as one of its aims, the
introduction of the secret ballot, 'no humbug envelope system; but the
real Australian system'. He was impressed by a lack of corruption in
Australian politics, and after witnessing the South Australian election
he was convinced that this system would abolish 'the political
corruption which unfortunately has for so long made our (the American)
democracy, our republicanism a mockery and a shame'. He contrasted
America with Australia where 'the popular sentiment seems to place
perfect faith in the purity of the administration'.
His interest in the Australian ballot and the lack of corruption here
would have been stimulated by his own experience of electioneering and
polling in 1886, when he stood unsuccessfully for Mayor of New York, The
election was reported to have been rigged against George, who
nevertheless received more votes than any previous Labor candidate. He
admired the simple methods used in Australia to register for voting, to
stand for election, and to transfer land titles. In his farewell speech
in Adelaide he commented on the ease with which methods in Australia
could be changed, and new ideas carried into effect. These things all
made him optimistic about the possibility of introducing his theories
here.
Although he made trips out of the capital cities, George's impressions
of the country areas were limited by the fact that he travelled to
lecture, and therefore saw more of the inside of the country halls than
of the country itself. Little of the 'bush myth' seems to have touched
him, possibly because he was an American and conditioned to pioneers in
a new country. The only mention of anything resembling the 'bush myth'
was a comment on South Australia, written back to his American paper, in
which he said that 'There is something heroic in a community of 325,000
people running a fully fledged national government, pushing a telegraph
line across the whole width of the Australian continent and building and
running some 1,500 miles of railway'.
Like most visitors to Australia he was impressed by the friendliness of
the people, and observed their love for sport and holidays, He was in
Australia during the Queen's Birthday holiday, and was most amused to
find that since it fell on a Saturday, the Monday was kept, not out of
any superabundance of deep loyalty, but rather to keep a whole day for
races and football.
He commented on the pro-British feeling in the colony, attributing the
centralised government to the survival of Crown control. He compared
Australia with America, and noticed that although America had learnt
much from her non-British migrants, Australia 'yet stuck to the
monotonous and heavy food and cooking of the British islands', and that
some mixing of population would improve the country. This is a
refreshing approach after studying British visitors, like the Webbs, who
saw Australia only in terms of England.
EFFECT OF VISIT
George came to Australia following insistent requests by the Single Tax
Leagues, in order to deliver a series of addresses throughout these
colonies on the principles set forth in
Progress and Poverty, not for Australia's sake alone but in the
conviction that your advance will be the advance of the whole civilised
world'. When he left Australia he was sorry that he had so little time
to actually see the colonies, but he declared that he was 'exceedingly
pleased with (his) visit to Australia'. This is somewhat puzzling since
the reactions of the press to his main theories of land tax and free
trade were so unfavourable.
It is perhaps explained by the impression made by the man himself,
rather than the impression made by his ideas. He was already a famous
man when he arrived in 1890; The Sydney Daily Telegraph, The
South Australian Register, The Brisbane Courier, and The
Boomerang published large photographs and short life histories of
George when he arrived. The newspapers devoted large space to reports of
his lectures and comments, and every paper spoke of the skill of his
oratory, The Sydney Echo report was typical of all reports of
his powerful style of address:
For two hours the man (was) walking to and fro in his
narrow strip of platform ... and speaking entirely without manuscript,
note or any other accessory -- peaking too, in a slow almost solemn
voice and dealing with phases of what Carlyle named 'the dismal
science'. For a man under these circumstances to keep the eager
strained attention of a packed hall, including men of every shade of
politics, is an intellectual feat ... this man did it without effort.
The Brisbane Courier described the almost hypnotising power of
his presentation in semi-religious tones:
He proclaims his gospel with the entrancing power of a
Savanarola and the fiery earnestness of a St. Francis. ...When warmed
up to his subject there is a fine play of feature and a fire in the
eye which kindles an electric sympathy in his audience. His gestures
are graceful and unstudied, as he moves about the platform bringing
forth his polished sentences ... pouring out period after period of
impassioned and poetic English.
There is little doubt that George himself carried his audiences with
ease, but it is much more doubtful how far his ideas carried them. It is
possible that he judged his tour more by the audience response to
himself than by the press or government response to his ideas, and could
therefore speak of a satisfactory tour, despite strong opposition on the
main points of his theory. This would not invalidate his impressions of
Australia, it would only limit them, since what he thought of Australia
was so closely bound up with what Australia thought of his theories.
As I have indicated, his tour was an educational one, designed to
spread his ideas, and not to observe Australia, and for this reason he
said much less about Australia than one would have expected of such a
well travelled and alert journalist. What he said in lectures cannot be
taken as wholly reliable, since he would be unlikely to voice criticisms
that would unnecessarily prejudice the the reception of his theories.
Compare the nature of a public lecture with a private remark, e.g. in a
lecture in Melbourne he spoke of the great improvements since he had
visited the city briefly in 1850 as a 15 year old sailor. In a report
written home, he mentioned that he could remember almost nothing of his
previous visit to that city.
On the other hand the reports of George in Australia all testify to the
honesty and earnestness of the man, and I feel certain that he would not
have deliberately falsified his impressions to sell his ideas. His
impressions were conditioned by his reasons for coming, and by his own
strong convictions, but this does not invalidate those impressions, it
only limits them to a small area, and explains why he reacted to certain
facets of Australian life, while completely ignoring others.
Mr. Henry George at Forbes
From the
Forbes times -- Saturday, 19th April, 1890
THE LECTURE
On Monday evening the Osborne Hall was densely packed to hear Mr.
George deliver his lecture on 'The Single Tax'. A large number of ladies
were amongst the audience, while the local Single Taxers occupied the
platform. The Mayor presided and the meeting all through was a most
orderly one, Mr. George being repeatedly cheered during his delivery.
The Mayor said he felt great pleasure in presiding at such a meeting,
and although many of them differed from Mr. George's theory, including
himself, that should not stand in the way of their hearing him expound
his views, and he was pleased to see such a large audience present. Mr.
George had come some thousands of miles to explain to the people of
these colonies the principles as advocated by him in his work
Progress and Poverty, and he was sure he was a man who would
command at least their respect, and merit their esteem and goodwill. He
did not altogether agree with the Single Taxers, but he thought some
reform was needed to alleviate the distress which existed all over the
world, for in the old world countries the poverty and distress was
painfully apparent. There might be some present who would question Mr.
George after the lecture was delivered, and he had no doubt that Mr.
George would be glad to answer them and further enlighten them on the
subject. As people in the various countries became enlightened, and
their minds illumined by education, men would begin to strike for their
rights in a bold but calm and peaceful manner. He thought that any man
who worked to better the condition of humanity generally was worthy of
respect for ever and ever. He had much pleasure in introducing the
lecturer, Mr. Henry George.
THE NATURAL REVENUE
Mr. George, who was greeted with applause, said he was pleased to see
before him such a crowded meeting. He had been particularly desirous of
coming to Forbes because it was in Forbes that the first Land
Nationalisation meeting ever held in New South Wales took place; here
where the great Single Tax banner was first reared. At that little
meeting, held some three years ago, the Sydney papers had said in a
derisive way that 'a social reform had been commenced in Forbes', and he
thought it a very good place to commence. Some of the works which had
most deeply affected the future had been begun, not in great cities hut
in little towns, and it must be exceedingly gratifying to Mssrs. Bell,
Dickinson, Cotton, Price, and the rest of that heroic little band to see
what rapid strides the Single Tax question had made. All over New South
Wales, and not only in New south Wales, but in the other colonies, this
question was coming to the fore. And not only in the colonies, but from
one end of Great Britain and Ireland to the other, people were beginning
to demand their rights and were discussing the same question that was
brought forward at that meeting held here three years ago. Neither was
there a city, town, or even hamlet in the whole of the United States
that did not possess its band of Single Taxers. Already the handwriting
was on the wall, and they were assured of triumph. The question only
needed discussion, for after discussion men would begin to believe. With
regard to the poverty spoken of by the Mayor, that poverty would always
exist under the present conditions. He was sure they would all agree as
to the advance which had marked this century, but with this advancement
had come increased poverty, and in the hard and bitter struggle for
existence men were unable to find that which was necessary as a means of
livelihood. All kinds of remedies had been tried and had failed, but
the Single Taxers assigned an adequate reason and proposed an adequate
remedy.
What they proposed was truth, and truth would always stand the test.
The very fact that this question was being discussed in all English
speaking countries was a sufficient guarantee that it would be attended
with success. All they required was that it should be talked about. That
which was false could not facd investigation. They only wanted people to
think about it, and talk about it, and. the practical part would be a
secondary consideration. People did not need to turn politicians to
think about it, but when it affected the minds of men generally, and men
began to think aright, then the politicians would be tumbling over one
another. It was wise to be on the side of the people. No one knew how
great an advance this Single Tax question had made in Britain. In fact
he thought he was able to measure the feeling of the English people on
the subject better than anyone else, for as he travelled from end to end
of the United Kingdom he could plainly see the ideas which were
permeating the whole of society. Today the Land Tax party was a wing of
that great Liberal Party of which Mr. Gladstone was the leader, and
today that great Irish patriot, Michael Davitt, was at the head of the
Land League party, declaring that Single Tax was the only mode of doing
justice to Irish tenants and to the Irish people generally. This was the
remedy for the question which had so long troubled Ireland and estranged
her from Great Britain, from which she was separated by such a narrow
sea. And what was good for Ireland must be good for England, for the
English labourer had a right to the products of his labour, and under
Single Tax there would be a greater diffusion of wealth than there is at
present. In England, that greatest and richest of all countries, it
would do away with the scandal, the crime and the shame that everywhere
exist at present, and would be a remedy for the suffering which men now
undergo for want of those things which work produces. Single Tax must
advance, and Single Taxers held that it not a mode of taxation, but
the intended mode, the natural mode. There was a right and a
wrong way of doing everything, as by the laws of nature it was intended
that we should walk on our feet and not on our hands. In all cases
nature had provided a right way for doing everything; that very day he
had been to see a machine at the Britannia mine for pulverising rock and
extracting gold from it, and the right way had evidently been found out
for extracting the most gold with the least power, and so it was in all
cases, they only needed to find out the right way. To any civilised
community there were two things certain -- taxes and debt. The original
inhabitants of this country, the blacks, were not taxed, but as the
country became populated and civilised, and roads and bridges were found
to be necessary, when schools were wanted, and all other things
necessary to a civilised society, then the need of taxation was felt,
and the community was taxed in order to raise a public revenue. In
sparsely settled districts taxation was not so necessary, but as
population increased taxation was as inevitable as debt. In this world
we find that for every essential want there is a supply; then there is
the necessity for doing all things right, for instance walking; if we
tried to walk on our hands instead of our feet we should find it slow
and painful.. It is exactly the same with: taxation, for there is only
one just mode of taxation.
In the great creative scheme civilised man was provided for as well as
uncivilised man and the tax on land was the tax which was right.
All our advances in society of late were not individual advances , but
communities as a whole had advanced. Man individually was not endowed
with any more brains than were our fathers of 200 years ago, and yet,
what did men then think about ever being able to talk round the world?
PRIVATE PROPERTY
If we look at some of the ancient Greek and Roman statuary we would see
that men in the olden days were physically just the same as we are
today. And what was the reason of such great advance? It was because men
had to live together, and suit their living to one another, and as they
experienced wants they began to search for remedies. If man were
isolated he would become a savage, and it was only as men began to use
the power given them, which power was given them by a proper division of
labour, that they would find out the right way of doing things. The
right way was the natural way, and the civilised state was the natural
and intended state,. for it was intended that men should be drawn
together to supply each other's wants.
With regard to private ownership in property, that which a man produced
or purchased was his own, either to sell, bequeath, or do as he pleased
with; but what man ever produced any portion of the earth? If a man drew
a fish out of the ocean, the very rudest savage would not dispute the
right of ownership, or would declare that it was common property. But
who would ever claim ownership to the ocean because he took the fish
from it?
Here are we, a lot of men who find ourselves on the surface of a great
planet; we are simply guests as it were at a table which has been
prepared for us all; we all owe our existence to the same origin and
were meant to begin life under the same conditions, so what right has
any man to claim a portion of the globe over any other man? He never
produced it.
What a man produces, such as a hat, a table, a coat, etc., they are his
own to do what he pleases with, and we must all recognise the absolute
ownership over such articles. Today the law says 'if a man owns a good
house he must pay a good tax', which is essentially unjust. If a man has
the absolute right of ownership to property, it is only fair and just to
recognise such right, provided such property is the product of his own
exertions. All taxes which charge a man for industry and thrift, and put
a fine on men for growing rich by their own exertions, are essentially
wrong.
Ownership in property should either mean that the owner produced the
property, or bought it, or had it given him by someone who did produce
it.
TAXING PRIVATE PROPERTY
There was one thing in this world that might be taken as a pole star --
in the individual affairs of life things which appear to be, and are
wrong, might bring success; but never in the affairs of a nation. They
are simply on a larger scale, but when we look at them we find that that
which is unjust is inexpedient, and that which is right is not only
expedient but also wise. And when we look into the Single Tax question
we see that to tax Labour and the products of labour is both unjust and
unwise.
When do we say a country is prosperous? When it is wealthy! And today,
while the wealth is in some of our countries, the masses of the people
are striving and struggling for those things which are produced by
labour. It is unwise to tax wealth, because we will necessarily have
less of it; and it is also unwise to tax labour or anything produced by
labour, because we will have less of it. If you tax houses you will have
less houses and poorer ones; if you tax capital you will have less of
it; if you tax ships you will have fewer ships; but you can tax land
values all you please and there will not be an inch less land.
Now consider, all that you call wealth in a country are the products of
labour, and if you tax any of those products they will diminish. But it
is not so with land values; when they are taxed they do not diminish,
and there is more labour Expended on the land than heretofore. If we
travel all over the world there is one great fact that we must notice as
population increases, and those improvements which we style advance,
increase, the value of land increases very considerably.
Land is worth more in Forbes today than when the first settlers took it
up; and if we knew that in 10 years' time Forbes would have a population
of 100,000 people we would naturally conclude that land in Forbes would
be a good investment, because it must go up in value. All property such
as houses would not be so valuable, because they decay, besides which
man's inventions tend to lessen the value of articles produced. There is
only one thing which could possibly increase in value, and that is the
ground; this allotment would be worth a great deal more, but the house
would decay and would be worth less. No matter what improvements were
made in the town, such as establishing gas works, electric light, or
railway communication, the value of land would increase. Even the very
anticipation of a railway would increase the value of land.
TAXING LAND
Land increases in value with social improvement, and not by the
exertions of the individual who owns the land. As social improvement
goes on there will be need of a larger revenue, and this revenue can be
taken from the land without doing an injustice to anyone; labour would
not be lessened, but it would increase as the community grew larger.
Single tax would prevent monopoly, and it was monopoly which was today
grinding the labour market down and causing so much depression. In the
great creation scheme provision was made for all who were brought into
the world, or as Bishop ~u1ty said, the social problem with regard to
the provision made for man, was just as clear and just as natural as
was, with the birth of a child, the milk in the mother1s breast upon
which it. was to subsist.
No one could look about without seeing the injustice and unwisdom of
our present system of taxation. He saw by a paragraph in last week's
Forbes Times that houses, even at high rentals, were
unobtainable in Forbes, and that it would pay capitalists to build some
good houses on their vacant lots. Well, and as soon as they built, you
would send down the valuator and the houses would be taxed. That was
just the way to prevent people from building. It was putting the man who
built a house on the same level with a man who got drunk; you fined a
man for building, and you fined a man for getting drunk, only here the
fine for building a house was greater, so that it was cheaper to get
drunk than to build a house. Could not the people see how stupid such
taxation was? And instead of taxing houses would it not be better to tax
vacant lots, and thus induce people to build? Improvement should not be
discouraged, but the holding of idle land should be discouraged. If such
were the case the people as a whole would be more wealthy, instead of
being in the depressed state they are at present. The producer would
then get the article, or the price of the article, he produced, and
monstrous fortunes would disappear.
People as a whole would be more wealthy, and who was not money good
for? He thought that no one would mind living in a better house than
they did at present, and all would appreciate a trip round the world
once or twice in their lifetime, if only to see how things were managed
in other countries. At present the bulk of the tax rested on the
producer. The present system of taxation was bad, but it was worst of
all in protected countries.
New South Wales was bad enough, because she was not a free trade
country; a free trade country should not put a duty on galvanized iron,
on wire, and most of the necessities of life. Take cigars for instance,
on which there was a duty of 6s per lb. This duty was perhaps light to
the man who smoked high priced and good cigars, but it fell heavily on
the poor man, who was forced to smoke inferior cigars, and it perhaps
made men smoke pipes, when, under free trade, they would be able to
afford cigars.
The duty was also imposed on tea and sugar, and many of the other
necessaries of life. He was sure the selector who lived outback drank
more tea than the Mayor of Sydney, so that the poor man was the most
heavily taxed. Why, this New South Wales free trade was a tax on getting
married and having children. The present system of taxation said alike
to the squatter and selector, 'You must pay £1 per acre before you
get a home'. Any law which forced men to pay for a home was unjust. In
Forbes, he was told, that during March the revenue collected from land
in this district was £12,000, and that since 1861 £400,000 had
been collected at the Forbes Land Office. And where did this money go
to? It was all carted off to Sydney, and they only got a small amount
back by way of public buildings, etc. That money should have belonged to
the people who had helped to increase the value of the land.
When you sold a piece of land who paid for it? Not the land, but the
individual who worked the land, so that a charge was actually made for
men going to work on land. All articles, no matter what, go back to the
original producer, land; then there should be complete ownership to the
article, but the tax should fall on the land All men are born with equal
rights to life, and all men should have an equal right to the earth we
live on. If two men wanted one piece of land, then the man who could
work the land to the most advantage would be able to pay the better
price for it, and that better price would be the premium paid to the
State. The increased value should be owned by the community who made the
land valuable. All the increased value of the land should not belong to
one community however, but should go towards other communities where the
land was not so valuable. Take Sydney for instance land in Sydney was
very valuable, but the increased value of the land should not be owned
solely by the Sydney people, for the back country people also
contributed towards making Sydney land so valuable, for, if no one from
the country went to Sydney, then Sydney land would decrease in value
very considerably. The increased value should be first owned by the
community, then by the State, and lastly by the United Federation if
they had Federation. Single Tax would not deter industry or fine thrift
as the present system did. Today there were more people in the great
cities of the world than there should be and the cities were growing
more rapidly than population was increasing, so that if the present
state of things continued much longer there would be no one left to work
the land at all. And the reason of this was that men's industry was so
taxed that they could not afford to work the land. The monopolists buy
up the land and allow it to lie idle until it is increased in value to a
considerable amount, then they pocket the increased value, which should
properly belong to the community who had made it valuable.
He was told that if a man wanted land here he had to go some miles out
before he could select, and that too with so much vacant and idle land
nearer home. It seemed to him like swimming the Mississippi in order to
get a drink. There was enough land between Forbes and Sydney to support
the whole population of the colony, but so much land was lying idle
which had been bought for purely speculative purposes, such as railway
extension.
When a railway was projected this vacant land increased in value, and
the people would have to pay compensation for the land if the railway
were constructed, besides having no share in the increased value of the
adjoining property. He knew of one case in Sydney where a syndicate bad
bought 60 acres of land for £50 an acre. Shortly afterwards a
railway was constructed through the property and they resold 3 acres for
£1260, the three acres being needed for the construction of the
railway. Then the syndicate also pocketed the increased value of the
remainder, which was considerable, owing to the construction of the
railway. There had been £30,000,000 expended in railway
construction in New South Wales, but a great many miles more could have
been constructed had not the increased land values gone into private
pockets. And whom did the money come from to pay these private
individuals? Why, from the men who travel on the railways. If this
country had been a Single Tax country there would have been more
railways, and we should most likely have been able to travel for
nothing.
Then with regard to weiring their rivers -- he had seen the weir in the
Lachlan that day, and he was assured by both Mr. Cotton and Mr. Brooke
that for a sum of £10,000 the Lachlan could be weired from one end
to the other. If they had Single Tax it would pay government to
construct these weirs, because the land on either side of the river
would be so much increased in value, people being able to go in for a
system of irrigation. It was not only his opinion, but the opinion of
some of the greatest railway men in the world, that under Single Tax it
would pay government to build railways and run them for nothing, as the
value of the land would be so much increased by people constantly
travelling.
In all cities you would see great buildings in which were lifts to take
people from one story of the building to another. It paid the owners of
the lifts to have them running free because it made the top story more
valuable. Well, these lifts were simply vertical railways, and if it
paid the proprietors of the buildings to run them free, so it would pay
the State to run railways free through the country. They would find that
Single Tax was the best mode of taxation in all cases. In the first
place it was just and right, and the masses of people would be benefited
by such a system of raising public revenue; in the second place it would
be a more economic mode than our present system, because the tax would
come direct from the land, and would not have to pass through so many
hands and come in such an indirect way as it does at present.
When duty was paid on articles imported into a country it was not only
the customs officials who had to receive their salaries, but the goods
passed through so many hands, all of whom had to make a profit before
the article was sold to the people.
Single Tax would also be a tax which would prevent most crime, because
under taxation of our present kind people would always smuggle and try
to evade the law, and smuggling was undesirable. Land values were easier
to determine than any other values, because while the value of some
things was hard to get at, the land could not be hidden, and, as it
were, was always out of doors, so that anyone could see its value.
In all countries today, more particularly in the old countries, Labour
does not get its fair return. And Why? Because all over the civilised
world we hear the cry that men cannot get labour, consequently they work
too cheaply. What is necessary to labour is land, for in the beginning
land was given to man, from which he was to produce what he required.
Capital and labour are essentially the same for labour provides capital.
If we debar labour, which means capital, the land will not be used as it
should be. Beneath all society lies one great wrong; labour is
practically disinherited, and men have not any legal right to live or
work the land on which they exist. Under Single Tax we should have that
fiscal adjustment which would right the deepest of all wrongs, the whole
of humanity would have an equal right to the use of the land. It would
be utterly impossible to divide land equally, but the man who worked the
most valuable land would have to pay a premium, that premium to be the
increased unimproved value.
As the value which attaches to all public improvements belongs to the
whole of the community, so would all men have a share in the land which
had increased in value through their exertions, and under such a system
men would have an equal right to live.
QUESTIONS
The lecturer then took his seat, and stated his willingness to answer
any questions which might be put to him, but as no questions were asked
he resumed his lecture.
On resuming, he said he was glad to see the advance Single Tax had made
in New South Wales, and that the Single Taxers were not standing still.
What Single Tax meant was real free trade between one country and
another, and the carrying out to the fullest extent that great reform
begun by Richard Cobden and John Bright. He was specially glad that New
South Wales had not gone so far into the wrong as the United States, by
becoming a protected country; but in the States they had taken the first
step, and were working hard to do away with that miscalled thing
'Protection'. The Victorians had for some time been worshipping
Protection as a god, and what had it done? Enabled them to get further
into debt. The same in the United States, what had Protection done
there? (A voice -- It has paid a big debt). No, it had not paid that
debt. It had made the people pay for the payment of that debt made men
pay twenty dollars where they should have only paid one; it had built up
monstrous fortunes for few, such as Andrew Carnegie. It had built up
monopolies, for which the people suffered. Protection in the United
States had stunted our industries, had degraded labour and impeded its
growth and prosperity. Why is it that most of the American commerce is
today being carried under foreign flags? Because it does not pay
Americans to run their ships under their own flag.
He had come out in one of the few American ships on the ocean highway,
but that ship was well subsidised to run to the colonies. How was it
that the best American ship for the China trade was built on the Clyde?
Because it could be built cheaper there than it could have built in
America. Why, thirty years ago, when America was not protected, she was
only 100,000 tonnage short of Great Britain, and was not only carrying
her own commerce, but that of other countries; wages were then higher
and the people better off. The largest commercial ship ever launched
from Port Baltimore was built by American capital, and how was it that
Americans did not build their own ships now? It was because protection
had made ship building in America too expensive, and she had to send to
other countries to build her ships and then run them under foreign
flags. And what was true with regard to ship building was also true with
respect to other industries.
Why was it that the United States had stood protection so long? Because
from the Northern lakes to the Gulf they had absolute free trade. In
that portion of America they had not such absurd things as he saw at
each end of the bridge across the Murray. At each end of that bridge was
a custom house, with the initials of the same sovereign over both.
Protection in Victoria was only on a smaller scale of what they had in
America, and as protection in America had killed the ship building
trade, so it was killing every other industry.
The ship he travelled in was running between a sugar growing and a
fruit growing country, and yet they loaded all their jams and preserves
in London. And why was this? Because England was a free trade country,
and both fruit and sugar were taxed in the other countries. Tariffs were
not needed in New South Wales to develop her industries, but the
industries will develop as population increases.
In America, when protection was first introduced, competition was
immediately shut off, and since then the people have had to pay through
the nose for all they require. During the time when the great national
struggle was going on in Amen ca, protection was sneaked in by a few who
robbed the public for the benefit of their own pockets. And why was it
hard to repea1 the tax? Because it was putting money into the pockets of
the monopolists who had great influence. If protection was a good thing
why had not the East States protection against the West States. They had
not, and although all the industries had been commenced on the East
coast they had gone their natural way and were steadily getting towards
the West.
The people in Forbes want protection! Why, they have too much
protection already in having to cart their goods here by bullock wagons
instead of having railway communications. If you put a good stiff tariff
round Forbes it might benefit a few; the people would get what they
wanted, but they would have to pay for it. For instance, if flour were
taxed, the gentleman whose flour mill he had gone through that day might
make money, but he could make the people pay a good stiff price for
their flour. What people wanted was not protection, but more railways
and easier and better facilities for trading."
Mr. George resumed his seat amidst a good deal of cheering from his
audience, and again awaited questions from any of his listeners.
VOTE OF THANKS
Mr Chas. Wait said that he had the most pleasant duty to perform that
had ever devolved upon him during his life -- that of proposing a vote
of thanks to the lecturer, Mr. George.
The Mayor put the resolution, which was carried with great acclamation.
Mr. George said, in returning thanks, he would take the opportunity of
explaining the difference between Land Nationalisation and the Single
Tax. Land Nationalisation was a name he had never used in
Progress and Poverty, or made use of in any way whatever. Land
Nationalisation meant the taking of all land by Government and leasing
it out, but Single Tax did not mean that. Single Tax meant that all the
land would be held in fee simple, and taxed by the State according to
its annual value. Some people thought that under Single Tax all the land
would be confiscated; but that was a great mistake. They simply wanted
to tax the land in such a manner that it would not pay holders to keep
it idle. In Victoria they had put on a land tax and there was not one
single word about confiscation. They simply wanted to do the same thing,
in order that a proper amount of labour might be expended on the land.
They asked no charity for labour, but only asked for fair play. A land
tax would prevent monopoly and would break up large estates that were
lying unused. The right to ownership of land was not disputed, but they
wanted men to make use of the land they held.
With regard to the name Land Nationalisation it had never been used in
the United States. Their first league was called the Anti-Poverty and
Land and Labour Party. He was glad of the change of name from Land
Nationisation to Single Tax, because the name explained itself, and he
had not so many people asking him those absurd questions about dividing
land equally amongst all men. The Single Tax was simply the carrying out
of the idea of turgot, Quesnay and those other great French philosophers
of a century ago, who were the first real Freetraders.
He was pleased in accepting their vote of thanks, and also in seeing
the number of Single Taxers there were in New South Wales. While some
went so far as to think Single Tax the remedy for all the evil in the
world, he did not believe that, but he thought it would be the basis of
all their social reforms. It would do away with monopolies and give men
a better chance to live. And instead of the misery and starvation that
exist at present, men would be able to work and earn their living.
After three cheers had been given for Mr. George, and one for Mrs.
George, the meeting broke up.
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