Concerning Land Ownership |
[Reprinted from Land and Freedom, January-February 1928]
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Although Henry George is a master of the art of lucid exposition of economic subjects, it would be
idle to deny that there has been some misunderstanding
of the meaning to be attached to certain phrases
which he uses in describing the evil which he finds to lie at
the root of social injustice and which paralyses all attempts
to ameliorate social conditions as long as the fundamental
error lies unremedied. This evil he finds to be "private
property in land," or "private ownership of land,"
because such property or ownership, if carried to its logical
conclusion, permits the exclusion of all persons not owning
land from their natural right to live by the application of
their labor to land. Many people jump to the conclusion
that the only alternatives to private ownership of land
are public ownership of land or common ownership of land,
and are disposed to believe that so far as land is concerned
Henry George was a communist. Others interpret his
language to imply that he approved a limited socialism,
making land the property of the State. That he meant
neither of these things has always been clear to Single
Taxers, who have combatted these economic errors for
half a century.
Perhaps the question will be asked, if ownership does
not vest in the individual, in the State or in Society (here
understood as the community in its non-political aspect)
to whom then does it belong? If one answers that
question in the strict sense, it can not belong at all, in the same
sense that personal property belongs to its producer, one
is suspected of being visionary or metaphysical.
Perhaps the best comprehension of Henry George's
meaning may be attained by a parable. A certain man,
having land which he wished to use for the benefit of his
children, decides during his life-time, to create a trust for
its management in their interest, they themselves having
the power to choose the trustees. Clearly the heirs do
not own the property, for the father still lives and may
revoke the trust. The heirs have a clear right to bargain
among themselves for possession of such parts of the estate
as each may think he can manage to the best advantage,
subject to the approval of the trustees, who in the common
interests exact from the possessor as much annual rent as
any other heir will give for the exclusive possession of the
same piece of property. The trustees have clearly the
duty of expending the annual rental for the common
expenses of the management of the estate, and if a surplus
remains after all expenses are paid, then such surplus
shall be distributed, not pro-rata among the heirs
according to their holdings or rentals paid, but equally, in
recognition of the equal right of all men to an equal share of their
father's bounty.
Having thus stated in parable Henry George's concept
of the manner in which ownership of land should be dealt
with, it seems worth while to deal with the negative side
and to set down what he clearly did not intend. He did
not intend that land should be owned by the state and doled
out to citizens according to the will of officials. He did
not intend that it should be held by all the people in
common ownership and that the produce should be distributed
according to the arbitrary decisions of autocratic or
democratic officials. He did not intend what is called land
nationalization, beginning with a policy of land purchase.
He did not intend that any now existing title of a person to
land should be disturbed or abolished as long as the
person holding such title paid annually as much rental for the
bare land exclusive of improvements as the generality of
persons holding similar allotments would and did pay.
The determination of rentals to be paid under such a
system is really a form of valuation of sites by common
consent.
Such a system now exists in parts of the State of New
York under the following circumstances. Certain towns
located on the South Shore of Long Island front on Great
South Bay, which bay is formed by sand bars extending
along its outer edge, which is about five miles out to sea.
In the course of time the beaches developed vegetation
and became habitable, and the State of New York
conferred the ownership of them on the towns of the
mainland of the island fronting them. Certain persons tried
to acquire ownership of strips of these beaches and some
were sold, until finally some one raised the point that the
towns could only lease and not sell. The result is that
these beaches are being built up by citizens who if they
have no titles, on the other hand had no purchase price to
pay for land. The only limitation upon their right to
indefinite use is that they must, within two years, build
bungalows or cottages, worth not less than a stated sum
and pay an annual rental. Even this requirement is not
rigidly enforced, but if any person has taken a plot and has
not built upon it and if a new-comer makes a bid and shows
a willingness and ability to build, the previous tenant will
be given notice that if he does not comply with his
agreement with the town at once, his plot will be turned over
to the new bidder. An arbitrary price applicable to all
similarly situated lots is charged, and the money applied
to the construction of board-walks, which are the only
highways on the islands and beaches.
It must be clear to all persons who really desire to
understand Henry George's proposal, that under his plan
every element of ownership which now inheres in home
or farm-owning would persist, except the ability to
appropriate such increases in value as might arise from public
need or public expenditure.
There is practically no such thing as absolute
ownership of land now. All governments assert the right to
levy some form of tax on land, which if not duly paid,
entitles the government to seize and sell the land of the
delinquent owner. Such a person would be in an improved
position under the Henry George plan because he would
not be liable to be sold out for an unpaid tax on his
improvements, which in most cases, would be more than the
tax on the lot.
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