.
A Vindication of [Henry] George |
| [Reprinted from The
Freeman, February, 1943] |
From Auckland, New Zealand -- a
country that does not seem so far away from us now as it used to
-- comes JUSTICE P. J. O'REGAN'S "A Vindication of George."
His Honor was inspired to write it by Father Fichter's article in
our February, 1941, number on "The Revival of Georgism."
Justice O'Regan is a native of New Zealand of Irish stock, a
member of the New Zealand Bar and sole Judge of the Compensation
Court, a tribunal with exclusive jurisdiction in cases of accident
arising under the Workers' Compensation Act. Widely read and an
eloquent speaker, he is in much demand as a lecturer throughout
his native land, if The article, including the editorial foreword,
above, is reprinted by permission from the December issue of The
Catholic World.
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I was well-pleased with Father Fichter's article, "The Revival of
Georgism," which appeared in The Catholic World of
February, 1941. Henry George has been misrepresented badly, and I regret
to say that Catholic publicists must be reckoned among the
transgressors. Yet his teachings are so clear and convincing that, as
Father Fichter puts it, "even the man in the street can learn the
simple scheme so well that he can teach it to others." Herein lies
one of the reasons why "the Prophet of San Francisco" has so
many exponents among the generality of mankind, and herein probably also
is the explanation why the learned economists who fill chairs in the
seats of learning affect to ignore him. That political economy is the
simplest of the sciences is a proposition untenable among those who are
wont to invest it with that nebula of mystery which seems to enhance the
importance of its expositors!
One set of critics brackets George with the Socialists. Every follower
of his, however, will say with Mr. Chodorov, "Actually we are the
greatest individualists in the world." With the Stoics of old we
say that every man is committed primarily to his own care. We maintain
further, however, that every man has a natural right to equality of
opportunity to enable him to carry out his task. That we maintain the
doctrine of natural rights in itself suffices surely to say that we are
not Socialists.
The Socialist has no patience with what he calls "the capitalistic
system," and so he desires to sweep it away utterly. He gives us no
definite scheme whereby we are to attain that end, but there are
Socialists who do not shrink from revolution, and they tell the workers
that they have "a world to gain and nothing to lose but their
chains." The Marxes and the Gronlunds scout the idea of natural
rights. They are avowed materialists in whose view the State is
absolute, and so they have no real conception of liberty. I remember
that Gronlund, sometimes called the Marx of America, in the Co-operative
Commonwealth, quotes approvingly Hegel's dictum that it is only in
virtue of his being a member of a well-organized State that the
individual has any rights at all! Accordingly the Socialist would place
everything under the control of the State. He calls his ideal the "classless
State." It never occurs to him that such a social monstrosity would
govern through an inquisitorial bureaucracy, the members of which would
be the worst of tyrants.
In the denial of natural rights the Socialists are in agreement with
our scientists who proclaim pontifically "the struggle for
existence." Long ago that pretentious impostor, Malthus, explained
the paradox of poverty in the midst of plenty by the theory that
population is constantly pressing beyond the means of subsistence, and
then came Darwin to tell us that his doctrine of the struggle for
existence was that of Malthus applied to the whole animal and vegetable
kingdoms! Let us see how George, in his matchless refutation of Malthus
-- Dr. Halliday Sutherland calls it "a masterpiece of the language"
-- states the issue:
"Here is the difference between the animal and the
man. Both the jayhawk and the man eat chickens, but the more jayhawks
the fewer chickens, while the more men the more chickens. Both the
seal and the man eat salmon, but when a seal eats a salmon there is a
salmon the less, and were seals to increase past a certain point
salmon must diminish; while by placing the spawn of the salmon under
favorable conditions man can so increase the number of salmon as to
more than make up for all he may take, and thus, no matter how much
men may increase, their increase need never outrun the supply of
salmon.
"In short, while all through the vegetable and animal kingdoms
the limit of subsistence is independent of the things subsisted, with
man the limit of subsistence is, within the final limits of earth,
air, water and sunshine, dependent upon man himself. And, this being
the case, the analogy which it is sought to draw between the lower
forms of life and man manifestly fails."
Thus George throws down the gauntlet to the Darwinians. He never
employs demagogic platitudes. Such phrases as "the capitalistic
system," "the capitalistic means of production," "the
master class," etc., never mar his regal composition. On the
contrary he realizes, as Adam Smith does, that there is a natural order
in human society, that natural laws are infinitely wise and beneficent,
and that the ills afflicting us are due solely to men's failure to
conform to them. In other words, though there is clearly something
amiss, there is more to admire in human society, even as it exists, and
so what is required to correct it is not revolution, but reform. The
marvelous fact about human society is that it exists without any man
taking thought, and its mysterious and unfailing efficacy arises from
the specialization of function incidental to the division of labor. To
illustrate: I am writing this article in the Supreme Court Buildings at
Auckland, New Zealand. I shall presently enclose it in a frail envelope
and write thereon the address, really my instructions to the many people
whose duty it will be in the course of its transit to obey. In due
course it will reach the Editor of The Catholic World. The liner
in which, with thousands of other letters, it will be conveyed across
the ocean is manned by people I can never know. Yet they will do their
work as thoroughly as though I had specially employed them! To enable me
to read the newspaper this morning, men have been at work throughout the
world while I slept, some gathering news and committing it to writing;
some transmitting messages, others at this end of a cable thousands of
miles long receiving them; some casting type throughout the night, and
everyone whose labor contributed to the production of that newspaper-the
correspondent at the war front, the telegraph operator at the other side
of the world, the men who mined the metal out of which the type was
made, the men who ran careful eyes over the proofs, the maid who pushed
the paper under my bedroom door -- have all been co-operating to enable
me to read the news! Words cannot describe the tenderness with which the
mother rocks the cradle to induce her babe to sleep, but the
engine-driver of a railway train or the man who steers an ocean liner is
not less careful about the passengers who eat, sleep and live their
lives on board, though he knows them not! As George puts it in the first
Chapter of Progress and Poverty:
"Keeping these principles in view we see that the
draughtsman, who, shut up in some dingy office on the banks of the
Thames, is drawing the plans for a great marine engine, is in reality
devoting his labor to the production of bread and meat as truly as
though he were garnering the grain in California or swinging a lariat
on a La Plata pampa: that he is as truly making his own clothing as
though he were shearing sheep in Australia or weaving cloth in
Paisley, and just as effectually producing the claret he drinks at
dinner as though he gathered the grapes on the banks of the Garonne.
The miner, who, two thousand feet underground in the heart of the
Comstock, is digging out silver ore, is in effect by virtue of a
thousand exchanges, harvesting crops in valleys five thousand feet
nearer the earth's center; chasing the whale through Arctic icefields;
plucking tobacco leaves in Virginia; picking coffee berries in
Honduras; cutting sugar cane on the Hawaiian Islands; gathering cotton
in Georgia or weaving it in Manchester or Lowell; making quaint wooden
toys for his children in the Hartz Mountains; or plucking amid the
green and gold of Los Angeles orchards the oranges which, when his
shift is relieved, he will take home to his sick wife. The wages which
he receives on Saturday night at the mouth of the shaft, what are they
but the certificate to all the world that he has done these things --
the primary exchange in the long series which transmutes his labor
into the things he has really been laboring for?"
This is the co-operation that makes civilization possible -- that which
Adam Smith calls "the natural course of things," but which
Bastiat calls a miracle. Thus there is much to admire in human society.
We must admire the perfect efficiency with which men work for each
other, yet without any man taking thought. The machine works without
visible direction because, as Adam Smith puts it, every man in working
for himself is "led by an invisible hand" to work for others. "Well
roars the storm," says Tennyson, "for those who hear a deeper
voice beyond the storm," and we have only to contemplate the
matchless mystery of civilized society to see the supernatural!
But if all this be true, what is wrong with the world? If there be no
struggle for existence as between man and man, how can we explain the
facts of everyday life? How are we to account for the fact, so vividly
depicted in the May, 1941, number of The Catholic World in the
article, "The Arabs of the Asphalt," that "tens of
thousands of families are wont to pilot tens of thousands of heartbroken
jallopies over California's super-highways in search of work?"
George supplied the answer more than sixty years ago in Progress and
Poverty. People are workless because they are disinherited. A few
grow richer while the masses grow poorer, because the community-value of
land -- "the common fund whence common want should be met" --
is misappropriated by a few. It is this great primary wrong which leaves
strong men starving and powerless in the midst of abundance; it is this
which crowds human beings into hideous slums; it is this which makes the
masses poorer as the community grows richer; it is this which
constitutes the social problems pressing everywhere for solution,
whether in California, in Mexico, in Chile, Australia, or elsewhere,
for, as George puts it, "at the bottom of every social problem we
shall find a social wrong." Assuredly there is no greater wrong
than to deny men their natural and inalienable right to the land of
their country. Place the unemployed in any community on some unoccupied
territory, Crusoe's Island, for example, and, although they would be
stripped of many of the conveniences of civilized life -- electric
light, paved streets, cheap tram service, etc.. they would make a
living. As a matter of fact I have in mind a case of shipwreck near at
hand. In 1907, the ship, Dundonold, was wrecked on the uninhabited
Auckland Islands south of New Zealand, in the Antarctic Ocean in fact.
Cold and hungry the survivors struggled ashore on the bleakest island of
the group, well-named Disappointment Island. A year later they were
rescued and brought to New Zealand all well. They had to construct mud
huts, to catch sea-birds, seals and fish. They had a hard struggle, but
they survived because they had free access to nature. They had no
unemployment relief, no social insurance, but they paid no rent, and by
applying their labor to the wild forbidding earth they produced food. In
a modern city they would have starved unless they had been relieved by
charity.
The remedy prescribed by George is clear, practicable, and efficacious:
By the lawful use of taxing power we would divert the rent of land into
the public Treasury, at the same time cancelling other taxes falling on
the produce of labor. Incidentally some of the rent of land is taken in
taxation already, but we propose to take it all. This is what George
called a policy of true conservatism, the effect of which would be to
save the masses, "the repository of ultimate political power,"
from becoming the prey of demagogues. Since George wrote the demagogues
have been in evidence everywhere, and well have they succeeded in "making
confusion worse confounded." Father Fichter encourages the hope
that George is at last coming into his own. Since his teaching is a
magnificent vindication of the natural law, I have no doubt that men
will soon arise in the Church who will proclaim that we have only to
conform to that law and involuntary poverty and unemployment with all
their attendant evils will disappear for all time.
From the outset George has had strong Catholic defenders. We learn from
The Life of Henry George, by his son, that soon after the
publication of Progress and Poverty, but before it had caught
the attention of the world, a Passionist, Father Dawson, wrote him
stating that, though he did not know the author's religion, George had
written a Catholic work. Father Dawson, who died in Dublin a few years
ago, was a life-long defender of the theory of land value taxation. More
remarkable still is the Letter to the Clergy and Laity of the Diocese of
Meath, written by Dr. Nulty in 1881, after the publication of George's
famous book certainly, but before the Bishop had heard of it or of the
author. "The land of every country," writes the Bishop, "is
the common property of the people of that country, because its real
owner, the Creator, has transferred it as a voluntary gift to them. . .
. Now, as every man in that country is a creature and a child of God,
and as all his creatures are equal in his sight, any settlement of the
land of a country that would exclude the humblest man from his share in
the common inheritance not only would be an injustice and a wrong to
that man, but would be an impious resistance to the benevolent
intentions of his Creator." It is surely significant that Dr.
Nulty's Letter is an epitome of Progress and Poverty. The fact
that the community-value of land increases as population increases, Dr.
Nulty regards as a beautiful illustration of the goodness of Divine
Providence. Revenue is necessary for civilized society. As population
increases more revenue is required, but the ever-increasing value of
land will provide an unfailing and ample fund to meet the public needs.
Then there was the great and good Father McGlynn, punished by his
superiors, but finally vindicated and restored to his priestly status.
The way of the Prophet has ever been hard. Joan of Arc and Savonarola
were judicially murdered; Las Casas, when he proclaimed that the right
of the colored man to be free was equally valid with that of the white,
found theologians who opposed him; and Cardinal Newman, the author of
that masterpiece, The Development of Christian Doctrine,
repeatedly found his orthodoxy suspect after he had submitted to Rome.
There is already a bronze monument to McGlynn, but he has in fact
wrought out for himself a monument more lasting than bronze.
Not the least benefit arising from the application of George's theory
would be the simplification of government. Here in New Zealand, for
example, we have in operation a statute providing for the separate
valuation of land and improvements, and we have also a national tax on
the value of land minus improvements, as well as a statute enabling the
citizens of any county or municipality to place all the local taxation
(we call it rating) on the unimproved value of land. The majority of
local bodies have in fact adopted the system already. The periodical
valuation of land necessarily involves a certain expense, but that
expense would remain constant if all other taxes were abolished and
George's theory of the single tax actually realized! "Land lies out
of doors," as George once wrote, and so no tax could be collected
with such ease and cheapness as the land-tax. Thus no one would think of
tax evasion because it would be impossible. More important, however,
than the simplicity and cheapness of government would be the immense
social improvement that would follow the complete and constant
utilization of land, the disappearance of slums, and the unshackling of
commerce. Under the new order of social justice men would do for
themselves efficiently what so-called humanitarian legislation does very
inefficiently. Accordingly I am tempted to wonder what danger of State
aggression Father Fichter can see in the teachings of Henry George. One
form of State aggression, the searching of your trunks by a Customs
official under the shadow of the Statue of Liberty when you have
returned to New York from a voyage abroad, will disappear for all time,
for George's theory means not merely freedom to produce wealth, but
freedom to exchange it where you will.
In reality George, in proclaiming the equal right of every man to the
land of his country, has stated nothing new. As he has so well shown in
the chapter in Progress and Poverty headed "Private
Property in Land Historically Considered," the first perceptions of
justice have everywhere inspired men to recognize the common right to
land. While the Israelites were yet in the desert Moses wrote the Law,
and the Law included provision for the redistribution of land at the
Year of Jubilee. There could be no redistribution in a walled city, but
even there the man who had sold his land had one year within which he
could repudiate his bargain. Elsewhere no man could sell more than his
right of occupancy between the date of sale and the next ensuing Year of
Jubilee. No wonder Cardinal Manning declared that Moses had made him a
Radical! I remember St. Thomas Aquinas, in the volume of the Summa in
which he treats of law, tells us that the Laws of Moses were framed to
ensure something like equality as between man and man, and again he
states that, though the ceremonial precepts of the Old Law are obsolete,
the judicial precepts are still valid. Assuredly this can only mean that
the land law of the Old Law is still valid. This is not to say that the
periodical redistribution of land is practicable or desirable in modern
times, for nowadays there are permanent and costly improvements which
were not in contemplation in ancient times, and, as George has shown
with matchless lucidity, the equal right to land can be asserted and
secured easily, permanently, and equitably by collecting the rent
thereof in the form of taxation and utilizing it for the common good.
The form would be different from that ordained by Moses, but the spirit
would be identical.
When George wrote Our Land Policy, his first considered
statement of his views, in 1871, he was unaware that a pre-Revolutionary
school of thinkers in France, the Physiocrats, had held the same views.
Their founder was Quesnay, a physician at the Court of Louis XVI., and
they included Turgot, the last Finance Minister under the monarchy. They
proposed the abolition of all taxation, save the impot unique or
single-tax on the unimproved value of land, and no less a man than
Mirabeau described their proposal as equivalent in utility to the
invention of printing or the substitution of money for barter. Turgot
attempted to apply the principle, but the ignorant beneficiaries of
untaxed privilege secured his dismissal from office. Then came the
Revolution with its era of destruction and bloodshed until, in sheer
desperation, the nation sought safety in the despotism of Napoleon.
It is the fashion in these days of alleged enlightenment to refer to
the pre-Reformation centuries as comparatively barbarous. There is,
however, the testimony of Thorold Rogers among others, in Six
Centuries of Work and Wages, that the fifteenth century was in
England the golden age of the working man. First there were immense
areas of common land to which the people had access under rules deeply
rooted in Christian tradition. Much land -- it was one-third of England
in the reign of Henry VIII -- was owned by religious congregations. The
monastic lands, however, were really trust property in that the
congregations maintained all the aged and indigent, and attached to the
monastery, not infrequently, was a hospital. The common right to land
was further secured in that the lay lords, and sometimes religious
houses, bore the entire cost of war. Thus it was that the Hundred Years'
War and the Wars of the Roses were paid for without loans and without
indirect taxes. Thorold Rogers assures us further that the religious
houses were considerate landlords, and there can be no doubt that their
studied regard for the rights of praedial serfs had a steadying
influence on the lay lords. No wonder H. M. Hyndman, Socialist and
Rationalist, declared that "the Church of our ancestors was not the
organized fraud which prejudiced historians would have us believe."
The first step in the disinheriting of the people of England was the
Reformation. Monasteries were ruthlessly destroyed and their lands
handed over to the pimps and pandars who became the forbears of "our
old nobility," many hospitals were closed, and the noble art of
nursing was forgotten until Florence Nightingale rediscovered it. As
theft and robbery were capital crimes in those far-off days, we are not
surprised to learn that 72,000 persons suffered the death penalty in the
reign of Henry VIII. The destruction of the monasteries left the poor
unprovided for, and so many of them were driven by hunger to the
gallows. Poor laws began in the forty-third year of Elizabeth's reign.
In Catholic England they were unknown.
The work of expropriation, however, was not accomplished all at once.
It proceeded by stages until the Parliament of Cromwell, the alleged
vindicator of English liberty, in 1645 carried a series of resolutions
for the abolition of feudal dues on land. These were later embodied in a
statute, and by the small majority of two votes, feudal obligations were
abolished and indirect taxation substituted. Later, in the reign of the
Georges mainly, came innumerable Enclosure Acts by which the common
lands were stolen from the people.
Thus it will be seen that, in proposing to abolish land monopoly,
George really seeks to restore the state of affairs prevailing in
England in pre-Reformation times -- to bring us back to our Catholic
heritage, in fact. Accordingly I am glad to have Father Fichter's
assurance that there is a surprising number of Catholics taking courses
through the Henry George School of Social Science. From the outset there
have been many Catholic Georgists, and there will be more of us. While
the Catholic who embraces Socialism will necessarily lose his faith, the
Catholic who embraces Georgism may become more Catholic still. The work
of spreading the light of economic truth, however, must not be left to
the laity. I refuse to believe that there will not arise bishops and
clergy who will proclaim the truth as it was proclaimed by men like
Bishop Nulty and Father McGlynn.
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