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The Struggle for Justice:
All-at-Once but Step-by-Step |
| [Reprinted from The
Freeman, May, 1940] |
I have noted with much interest the article on Johannesburg by Sandy
Wise in The Freeman, and the comments thereon by Mather Smith,
editor of the Johannesburg "Free People."
As veterans go, in what I prefer to call the Natural Justice Cause, I
am just a newcomer. Not until 1928 had I even read Progress and
Poverty. I was astonished to learn that here in New Zealand there
were men in the movement who had been adherents for over half a century.
It was a long time before I could bring myself to believe that even such
men could still be mistaken in some respects.
However, it fell to my lot to edit the Commonweal -- journal of
the Cause here. And then I had to take notice of the disturbing fact
that there were two schools of thought in the ranks. One of these, the
Commonwealth Land Party (now disbanded here) held that the whole of the
social value (land rent) must be collected at once, all over the
Dominion. The other school, who may be styled the Taxation of Land
Values men, held that the right way was to collect a little In the pound
on the selling value of land, and gradually to increase the amount until
'the full rent was publicly collected. This very sharp divergence caused
no end of heart-burning, and made the position of an editor most
unenviable.
The Reconciliation
Never in my life did I give so much concentrated thought to a problem
as I did to this one of reconciling the differences between these two
schools of thought. On the one hand, for reasons which I will come to
presently, I knew that all attempts in New Zealand to collect only part
of the rent had ended in failure; on the other, as a student of history
I knew that no great reform had ever been accomplished except by the
gradual method. Bloody revolutions had always resulted in the masses of
the people being enslaved to new masters. As Max Hirsch, in his
Democracy Versus Socialism, the best work of its class ever
published, points out, "whole-hog" methods are bound to cause
a violent reaction and to put a reform back further than ever.
I think my mind worked out the solution in my sleep, for I awoke one
morning with the remedy as clear as daylight. Each school was partly
right and partly wrong. The remedy is to collect the full annual social
value over given local arena, carrying the reform area by area over the
whole of the political stale. The revolution would come about gradually,
on the local area basis, and yet the rent would be collected in each
area in full. Thus the two schools of thought were harmonized.
That is the line F. A. W. Lucas should hammer at in South Africa --
merely taking his old rating: on the unimproved values system to its
logical conclusion. Bearing in mind the colossal site values of
Johannesburg, how much poverty could there be if all the rent were
publicly collected, and all local charges abolished? And. once that
victory was achieved in Johannesburg, how long before the people would
find out that all the national funds necessary could be obtained by
apportioning part of the rent for national services?
Why Partial Measures Full
Now I will show just why partial measures, collecting only part of the
rent in any given area, must inevitably fail. I may interpolate here
that a pamphlet by F. T. Hodgkiss of Melbourne, editor of "Progress,"
showed that it was a mathematical impossibility to succeed by the
partial method. But my intention is to prove that, on the first law of
economics, that man seeks to satisfy his desires with the least
exertion, nothing but the full rent publicly collected can win finally.
The following is from a paper prepared for the Henry George Foundation
in London by Mr. G. M. Fowlds, son of the late Sir George Fowlds, one of
the master minds of the Cause in New Zealand:
"A few years after Mr. Seddon's death in 1906. a
Swedish economist, Mr. Johan Hanson, after a visit to New Zealand,
published a booklet in which he gave some impressive figures regarding
the incidence of land value rating. He found that the population of
the towns which adopted rating on land values had increased by 29
percent, while the population of the towns rating on the old system
had increased by only 15.5 percent. The value of the improvements in
the former towns had increased by 82.3 percent, as compared with 36
percent in the latter; and last, but not least, the land values in the
towns where land value was exclusively rated had increased by 105.2
percent, while land values in the towns on the old system of rating
had increased by only 51.9 percent."
Now for driving home the obvious. Partial collection of the rent had
the effect of causing large holders of land to give up possession to a
considerable extent. The subsequent closer settlement naturally resulted
in very much greater increase in the economic value of the social
environment, the so-called land value. The breaking up of the large
estates increased the number of land holders, each of whom, seeking to
satisfy his desires with the least exertion, became intensely desirous
of selling the enhanced social value, and thus becoming a landlord
parasite like those he had aforetime helped to dislodge. It was the
voting strength of these new small landlords that actually put a Liberal
government out of office, the Opposition having bribed them with the
promise of freehold titles, at just a trifle over the original valuation
(only 1 percent added!, thus enabling them to cash in on all the gains
of progress. Part collection is sowing dragon's teeth.
There is No "Land Question"
It is well to take note of this history of New Zealand, for we have
been among the first in the field with partial measures, starting with
our legislation a year before
Progress and Poverty was published, and having fought for such
measures many years before that. As soon as the so-called "Land Tax"
was imposed large holders fell over one another to unload. It was not
land they wanted, but the privilege of collecting the rent, or living by
the sweat of other men's faces. It is not a land question, but a rent
question, as I prefer to put it, a question of whether the social wage
shall be privately or publicly collected.
So the gradualists, the step-by-steppers, were right in respect of "the
inevitability of gradualness." Where they were wrong was in that
their steps were really backward instead of forward! The whole-hoggers
were right in demanding all the rent, but wrong in going for it over the
whole of the political state at once.
Come, let us reason together. The two schools arc now easily
reconcilable. Let us close up the ranks, join forces, and make a grand
assault upon the common enemy. United we stand, divided we fall.
Profoundly wise is the dictum of Carlyle:
"Men's hearts ought not to be set against one another, but set
with one another, and all against evil only."
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