.
Justice and Social Reform |
| [Reprinted from Land
& Liberty, April, 1957] |
The Hon. Frank A. W. Lucas, B.A. (Cape
and Oxon.), Q.C., was born in Pietermaritzburg, Natal, 1881, and
educated at South Africa College (now the University), Cape
Town, and at Worcester College, Oxford. Appointed King's Counsel
in 1924, he was for ten years (1925-1935) Chairman of the South
African Wages Board; from 1940-1948, Chairman of the
Johannesburg Bar Council. In 1946 he helped to found the General
Council of the Bar of South Africa, was appointed its first
Chairman, re-elected for two successive years, and then became
its first honorary vice-President. From 1946-1951, he served as
Judge of the Supreme Court of South Africa, and since 1953 he
has been Justice of Appeal for High Commission Territories.
The work he has done as member of various Government
Commissions - such as on Native Land Tenure, Transvaal
Smallholdings and Transvaal Leasehold Townships - has shown his
far-seeing statesmanship. Among other measures credited to his
initiative are those relating to free education, equal rights
for women, and an improvement in the status of hospital nurses.
In 1935 when he resumed his law practice, he turned again his
energies to the betterment of social and economic conditions,
gainin| a wide audience for his views. One vehicle was the South
African journal The Free People which (with the late
Mather Smith) he maintained for a number of years. He is author
of the book South Africa as She Might Be, published in
1946, and of numerous letters and articles to the press at home
and abroad.
Mr. Lucas was elected honorary President (in succession to Mr.
J. Rupert Mason) of the International Union for Land-Value
Taxation and Free Trade at the Union's ninth international
conference held at St Andrews in 1955.
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When I was a student at Cape Town the professor of English, when he
handed back to the class the essays which he had been marking,
commented that, though they were not bad, they showed no signs of
original thought. He added that we should stimulate our thinking by
reading a book like Progress and Poverty by Henry George. He
did not tell us anything about the theme of the book.
As we were all busy cramming for the final examination none of us
paid any attention to his suggestion. There was no time for any
reading outside our syllabus. As far as I know none of us ever gave
any thought to the subject.
Some nine years later, when I was in Durban, having an hour or two to
wait for a train, I strolled into a bookshop. Browsing round the
shelves, I saw a copy of Progress and Poverty. Perhaps because
of its arresting title, I remembered the professor's remark. I bought
the book for 1s. 6d. I did not read it then but two or three months
later I took it with me when going for a holiday. I soon became
fascinated with it and studied it carefully for a fortnight. The
reasoning was so convincing to me that in the nearly 50 years since
then I have never wavered in my conviction that that book provides a
touchstone for solving all our great political, social, and economic
problems. I am satisfied that none of them can be really solved
without applying to them principles of justice, true, equal,
indivisible justice for all.
I have always regarded that experience of mine in finding Progress
and Poverty as showing how we can never tell when, where, or how a
chance remark may send forth an idea which may find lodgment and take
root.
At school and college in South Africa and England, I had often been
worried and puzzled by the fact that, while some people had unlimited
riches, often without working for them, the majority, who worked long
and hard, had a difficult struggle to make ends meet. Progress and
Poverty threw a new light on this question for me. In my home
town, Johannesburg, I saw fine buildings alongside shacks and valuable
sites standing vacant. Though the town was known as the "City of
Gold" it had horrible slums. There was grave discontent among the
workers, which was shown by the number of serious strikes that
occurred at the time.
In those days the programme of the South African Labour Party
included the taxation of land values so I joined that Party. I was
then acting as secretary of a Government Commission which had been
appointed to suggest some practical measure for enforcing the
enfranchisement of leasehold plots or " stands" in the town.
Johannesburg had been laid out in such stands which were subject to
the payment of a small monthly sum known as a licence. The title,
which was very insecure, provided that any rates levied on the
freehold owner's interest in the licence should be paid by the
standholder. Owing to the rise in land values that interest had become
a gilt-edged security. After long and careful consideration of all the
suggestions put forward to the Commission the members could not find
any direct way of doing what was wanted. I then proposed that the
indirect method of a rate on the site value of land be recommended
with a provision that, despite anything to the contrary in the titles,
the freehold owner should not be allowed to recover the rates levied
on him from the leaseholder. This proposal the Commission recommended.
No action was taken by the Government on this recommendation. A
similar proposal about freehold owners' rates in England had been made
shortly before this by Lord Justice Fletcher Moulton. It was similarly
ignored by the Government there.
About this time an election for the Johannesburg Town Council took
place. Several Labour candidates, including myself, were returned. We
were pledged to press for the rating of site values and the exemption
of all improvements. Although we were in a minority we got a
resolution adopted asking the Provincial Council to alter the rating
law to allow us to introduce such a rate. As that Council was
dominated by large landowners it ignored our request. We, however, got
a great deal of publicity for our cause. We also circularised a large
number of ratepayers showing how they would benefit by the proposed
change.
Arguments had no effect on the ruling powers so it became clear that
we should not succeed unless something unexpected came to our aid. It
did. At the beginning of 1914 a general strike broke out. General
Smuts proclaimed martial law. He then seized nine trade union leaders
and without trial deported them to England. This high-handed action
aroused intense indignation on the Reef and in Pretoria. When, two
months later, a general election for the Transvaal Provincial Council
took place, the Labour Party won all the seats but two in those areas
and so had control of that Council with a majority of one! The
accident had happened. The deportations had given us our chance. As
leader of that majority I immediately introduced and got passed an
ordinance giving local authorities power to rate site values only and
to exempt all improvements on land. After some vicissitudes this
became law in 1916 and has remained in force ever since. It is now so
well established with public approval that it would take a dictator to
change it.
Despite much continuous propaganda on the subject over the years we
have achieved no further success in South Africa. We believe, however,
that our educational work has not been wasted.
Too much was not to be expected from the new rating system in
Johannesburg. The rate has fluctuated between 5d. and 7d. in the £
of the capital value of the site. I reckon that this has represented
not more than about one-fifth of the total value of the land. It thus
leaves four-fifths as a subject for speculation and there has been and
still is much speculation in land values. The rate has, however,
exercised a steady pressure on landowners to make better use of their
land than they did when improvements were rated. Johannesburg is now a
more compact city than it was in 1916. There are few poor buildings in
the business area. In the residential areas the houses are generally
of a good type. The people appreciate the fact that they can improve
or enlarge their homes without being penalised for doing so. But in
towns that rate improvements as highly as they do land, as Cape Town
does, a big penalty is imposed every year on anyone who has the
temerity to add to or otherwise improve his property.
The justice of taking the value of land apart from any improvements
on it is so crystal clear that it is difficult to understand why that
is not done everywhere. The subject is ignored altogether by most
economists. Parliaments and other public bodies seem afraid to tackle
the big vested interests in land. As the value of land is made and
maintained entirely by the presence and activities of the people in a
community, quite independently of whether the owner is there or not,
that value is really a continuing gift to him from the people. They
have to be taxed on their industry to pay to produce that gift. It
would obviously be right and just that those whose contributions pay
for what is thus given should be entitled to keep it for themselves.
Every useful public service creates at least sufficient new land
value to pay for itself. Our present system makes the taxpayer pay for
each such service and then leaves the value it adds to land to fall
into the hands of the owner of the land. It is the injustice that is
implicit in such a system that has brought about the strains and
stresses which make our time so fraught with danger and turmoil.
Our civilisation can survive only if we accept justice as its
foundation. Have we the courage and the wisdom to do that? At the
present moment there seems little sign that we have. Meanwhile
dictatorship grows apace and everywhere liberty is being crushed. In
the chapter, "How Modern Civilisation May Decline" in Progress
and Poverty, Henry George foretold the kind of troubles we are now
facing. We can but hope the peoples of the world will not leave it too
late before they seek justice and liberty for everyone.
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