.
New Light on Richard Cobden and the Land
Question |
[A paper presented at the Ninth
International Conference on Land-Value Taxation and Free Trade,
St. Andrews, Scotland, 15-20 August 1955]
|
Richard Cobden, in his last speech (Rochdale, November 23,
1964) left a great challenge to all Free Traders. Referring to the
domestic reforms that awaited attention he quoted with approval from
the Edinburgh Review of October, 1864: "At home we have
still to apply to land and to labour that freedom which has worked
such marvels in the case of capital and commerce." Then he made
the remarks that have caused perhaps more speculation than any of his
utterances: "If I were five-and-twenty or thirty, instead of,
unhappily, twice that number of years
I would take Adam Smith
in hand, and I would have a League for free trade in Land just as we
had a League for free trade in Corn; and if you can apply free trade
to land and to labour too - then, I say, the men who do that will have
done for England probably more than we have been able to do by making
free trade in corn." Here is a challenge indeed. Cobden, who had
given himself so unremittingly to the came of "making free trade
in Corn," considered, at the close of his life, that those who
would secure "free trade jn Land" would have done "probably
more" for their country than he and his helpers had achieved.
What precisely he meant by free trade1in land he did not specify.
John Morley, in The Life of Richard Cobden, points out that
the reference to Adam Smith is enough to show that Cobden contemplated
the abolition of entails and other artificial means of tying land up
in long settlements and that, like all men of good sense, he
constantly advocated improved facilities in the machinery of transfer.
Morley adds, "How much further he was prepared to go, we cannot
tell .. we have as a matter of fact no complete scheme of Cobden's
views on the English Land Question." Now whilst it is perfectly
true that there is no such complete scheme of Cobden's views there are
many thoughts expressed by Cobden that indicate in which direction his
mind was working on this subject.
A word of caution must be given in respect of a book, published in
1873 and comprehensively entitled Stein and His Reforms in Prussia,
with reference to the Land Question in England: and an appendix
containing the views' of Richard Cobden, and J. S. Mill's advice to
Land Reformers, by Colonel H. A. Ouvry (member of the Cobden Club).
The appendix "containing the views of Richard Cobden" does
not in fact do so. It is the reproduction of a letter of Cobden's
published in The Times of January 7,1873, under the heading "Mr.
Cobden on the Land Question," which first appeared anonymously
under the heading "Our Agricultural Labourer and The French Bogy"
in The Morning Star of January 25, 1864. This letter did not
deal with the land question as such but only with an aspect of it.
Cobden specifically wrote,
"Now nobody has, I believe, proposed that we should
adopt in England the French law of succession: but it pleases those
who are the advocates of the land laws of this country to bring
forward the peasant proprietor of France as a sort of 'Old Bogy' to
frighten us into the love of our own feudal system. This compels
those who desire any amelioration of the present system to meet them
on their own ground ..."
Cobden had spoken on this point in Manchester (January 10, 1849) when
he took to task those who wrote in certain aristocratic journals of
the dangers arising to a country from the subdivision of its property.
"I am very much disposed to whisper in their ears whether the
lessons of history have not taught us that the danger is wholly
different. Let them point out the nation that has been ruined because
its property was, in too many hands. Does not ruin rather proceed from
property being accumulated by a small number of persons, and the
consequent indulgence of luxury and corruption by the few, and the
degradation and misery of the mass? "Cobden did not argue for the
adoption of the French law of succession whereby on the death of the
owner his land was shared between his children. Rather 'he refuted the
argument that large holdings and great estates were necessary for the
country generally and for efficient and economical farming. We know
from the example of the Danish smallholder how well Cobden's argument
is still supported in practice.
Misrepresentation by "The Times"
Be that as it may there is an interesting lesson in misrepresentation
in the criticism of this letter in
The Times of January 7,1873. The leader writer asks: "Since
he (Cobden) commences by saying that 'no one has proposed that we
should adopt in England the French law of succession' it might well be
asked what is the practical bearing on our own position of a
discussion of the results of that law?" The answer is that either
The Times leader writer had not read the letter properly or he
was a rogue. The latter is the more probable for Cobden's very next
words explained exactly what was the practical bearing of the
discussion of the French law of succession. It was because "it
pleases those who are the advocates of the land laws of this country
to bring forward the peasant proprietor of France as a sort of 'Old
Bogy' to frighten us into the love of our own feudal system."
What Cobden did was to meet on their own ground those who argued against
any reform by using the bogy of the peasant proprietor of France,
misrepresenting him as being less well off because he lacked the
benefits that the English peasant enjoyed on his lord's estate. Cobden
refers to the situation in England Where "feudalism still rules
the destinies of the land, and the owners of the soil are constantly
diminishing to number "and where" taking the whole United
Kingdom, while the Owners of the soil are reckoned by thousands its
cultivators must be counted by millions." Small wonder The
Times misrepresented this letter which eminently achieved its
limited objective. It is a pity, however, that Colonel Ouvry included
it as an appendix that purported to give the views of Richard
Cobden on the land question, when in fact it only gives his views
on a particular aspect of it and leaves the inquirer to seek elsewhere
for those vitally informative speeches and writings of Cobden that
cannot but give the student of the land question food for thought.
Building Leases and Farm Rents
Cobden's observations were not restricted to the agricultural aspect
of the land question only. In the House of Commons (December 13, 1852)
he said, "Look at the vast landed property in the metropolis
owned by noblemen, who let it out on building leases. Take Belgrave
Square, for instance. You would find houses built there on 'land held
on a 99 years' lease, and at a ground rent of about £50 a year
for each house. Well, the person who has put the bricks and mortar on
the ground, or who bought it, is subjected to this direct taxation
(the house-tax), but it does not reach the ground landlord. He carries
off his £20,000 or £30,000 a year, and is left untouched. Is
there any justice in that?" On May 15, 1843, he said,
"Since 1793, rents in this country (England) have
doubled. I have returns in my pocket sent in by the clergy of
Scotland, from which it appears that the rental of that country has
increased in the same time threefold."
He quoted from a letter he had received from an East Lothian fanner
which is illuminating: "The farmers of the Lothians of Scotland,
essentially a wheat district, never were, as a body, in a more
flourishing condition; and the demand for land, in consequence, is
beyond parallel for the last 30 years. Every farm that is to let
brings an advanced rent of from 10 to 30 per cent. I have four years
of my lease to run, but have made a new arrangement at an increased
rent of 15 per cent, which I begin to pay immediately ..." (House
of Commons, December 13, 1852).
When talking of " farmers " and " agriculturists "
Cobden was careful to point out that landlords as such could not be so
classified. "That is an abuse of terms which has been too long
tolerated. The agriculturists are they who cultivate the land, who
work at it either with their hands or their heads, and employ their
capital on it." He trenchantly remarked that for the owners of
land, living perhaps in London or Paris to call themselves
agriculturists was as absurd as if the ship owners were to call
.themselves sailors. (House of Commons, February 17, 1843). Cobden
pointed out that "The farmer is a manufacturer, he hires the land
for manufacturing purposes. But, as farmers and landlords, your
interests are antagonistic - for the interest of the one is to rent
the land as cheap as he can, and the interest of the other is to let
it as dear as he can" (House of Commons, March 8, 1849). With
particular reference to the condition of agricultural labour in
Southern England he, said:
"I have taken some pains to ascertain what has been
the relative progress of wages and rents in agricultural districts.
I know that this is a very, sore point indeed for hon. Members
opposite; but I must tell them that in those very districts of
Wilts, and Dorset the wages of labour, as measured in food, are
lower now than they were sixty years ago, while the rent of land has
increased from two-and-a-half to threefold . . . When lately
attending a meeting in Gloucester, I heard a gentleman say publicly
that he had recently sold an estate, which had belonged to his
great-grandfather, and which brought him ten times the price his
ancestor had given for it. But what, in the same time has been the
course of wages?" (House of Commons, March 12, 1844).
Attention was drawn to what was impeding the enterprise of the
farmers when Cobden said: " Are there no farmer's friends present
who will state his condition? You know that his capital is wasting
away - that he cannot employ his labourers - and why? Because that
money which should go to pay them is absorbed in your rents"
(House of Commons, May 15, 1843). The application of the free trade
principle to land had obviously been occupying Cobden's mind long
before he made his last speech in 1864. For in the Commons on March 8,
1849, he reminded the House; " What "I said at Manchester
was this, that as we carried the principle of Free Trade with regard
to com, we owed it to the farmer to carry put the same principles, by
removing as far as possible every impediment to the free employment of
capital and labour upon the soil."
Divorced from the Land
Colonel Quvry's treatment of the question of "free trade in land
" may be of interest - he writes: " Richard Cobden in one of
his annual addresses to his constituents at Rochdaje (November 24,
1863) remarked: 'The English peasantry has no parallel on the face of
the earth - you have no other country in which it is entirely divorced
from the land . . .' This is our starting point," Ouvry
emphasises, " the people are divorced from the land. If this be
true, it follows that they must have been at one time married to the
land; and we will now shortly narrate the history of the divorce."
An account of the enclosures, and how the poverty-stricken people were
driven to work in the towns, then follows. The author then quotes from
an essay by Mr. Grant Duff published by the Cobden Club on the
teaching of Richard Cobden: He quotes Mr. Duff as saying, " Free
Trade applied to land -- nothing more nor nothing less - this was all
Cobden proposed." But Colonel Ouvry cannot accept such a literal
interpretation of free trade in land and says:
"Now these were the last words of Richard Cobden
with regard to the land; he had before said that 'divorce from the
soil was a national calamity and a disgrace ... The English
peasantry has no parallel on the face of the earth; you have no
other country in which it is entirely divorced from the land. There
is no other country in the world where you will not find men taming
up the furrow in their own freehold.' Is it not clear from this that
Cobden thought that in England also the peasant should have his
own freehold, and I would, ask Mr. Grant Duff how this can
possibly be brought about by simple free trade in land?"
How indeed) Cobden certainly bequeathed a headache to his followers.
In striving to resolve the enigma of "free trade in land"
it is essential to remember Cobden's letter to John Bright in which he
wrote:
"I go heartily with you in-the determination to
attack the land monopoly root and branch both here and in Ireland
and Scotland ... Wherever the deductions of political economy lead I
am prepared to follow ... however unprepared the public may be for
our views on the land question, I am ready to incur any obloquy in
the cause of economical truth. And it is, I confess, on the class of
questions rather than on plans of organic reform, that I feel
disposed to act the part of a pioneer " (October 1, 1851).
We should also remember when evaluating Cobden's forthright
utterances that opinion in the country was largely influenced by the
landowners. Morley tells us that "notwithstanding the pretended
reform of parliament of 1832, four-fifths of the members of the House
of Commons belonged to the old landed interest." And Cobden
himself said that if a copy of the statutes .were sent to another
planet without one word of comment the inhabitants of that sphere
would at once say, "These laws were passed by landlords"
(House of Commons, May 15, 1843). He was one of the pioneers in a new
field against powerful interests. As Colonel Ouvry tells us "in
Cobden's time the land question was only just, as seamen say, heaving
into sight" and John Stuart Mill in his Advice to Land
Reformers endorsed this as late as 1873 when he wrote that on "so
new " a question " there are naturally many shades of
opinion."
The Corn Law a Rent Law
The "protection" of corn had already been exposed for what
it was in the famous
Catechism of the Corn Laws by T. Perronet Thompson who was
M.P. for Hull, 1836-37, and for Bradford, 1847-52. Cobden published a
selection of extracts from the works of this great pamphleteer. Under
the heading "The Corn Law a question of Rent" he quotes
Colonel Thompson: "The landlords, by the exercise of their powers
in the legislature, lay a tax to keep out foreign corn. Their
undisguised object in this is to raise their rents."
Cobden summed it up when he said in London on July 3, 1844, "The
Corn-law is a rent law and it is nothing else." The connection
between the protected price of corn and land rent was clearly seen - "
The Corn-laws protect farmers! Why, the fanners pay their rent
according to the price of the product of their land; and after that
well-known fact you need, not say another word upon the subject. If
Corn- laws keep up the price of food they maintain the amount of rents
also." And in Leeds, (December 18, 1849) he said, "I have
long seen symptoms of this unholy alliance between the protectionist
part of the House of Commons and the landlordism of Ireland, the very
name of which stinks in the nostrils, not only of the people of
England, but of the whole civilised world."
In a letter dated November 22, 1857, to Mr. White, M.P. for Brighton,
Cobden wrote: " When I was travelling on the Continent, I found
among the thinking part of the population of France, Italy and
Germany, a great feeling of surprise that the men who had abolished
the Corn Laws had not also abolished 'the monopoly of land." We
need feel no such surprise - for the land monopoly was, and indeed
still is, in very capable hands.
Agricultural Derating Exposed
Disraeli on March 8, 1849, moved for a Committee of the whole House
of Commons to consider measures that we would nowadays classify as "de-rating."
Cobden stripped off "the transparent veil of mystification that
is thrown over it by those new champions of the agricultural
interests, who talk to us in strange parables." He showed who
benefited from rating relief and challenged Disraeli:
"Is there a human being whose opinion is deserving
a moment's consideration who will deny this proposition, that if you
relieve the burdens upon real property, the relief will go into the
pockets of the owners of that property? Take this case: Two farms
are to let of exactly equal intrinsic value, as to quality, soil,
and situation. One shall be rated at 2s. in the pound to the
poor-rate; the other at 8s. Would you let the two farms for the same
rent? I ask even a nod of assent from the honourable Gentleman
opposite. There is not a farmer or land-agent who would say that the
two farms would let for the same money. Deducting in each case the
amount of the rate, the remainder is the amount of rent in each."
Ten days later at Leeds he said: " We do not intend that they
(the landlords) shall have one shilling more of protection. And
something else we do not intend they shall have. There is another
thing they are going to do - if we will let them - and which I
always suspected they would do. They will try to extort it from us
in some other shape; and so the new dodge is, that they shall put
their taxes off their shoulders on to yours . . . all their
mystification amounts to is this, that the £12,000,000 of local
taxes for poor-rates, highway-rates, church-rates, and the rest,
shall be, half of them, if they cannot get the whole - they had
rather put the whole upon your shoulders - shall be taken off the
land, and put upon the Consolidated Fund; that is, taken out of the
taxes raised upon the necessaries and comforts of the masses of the
people . . . and mind you, I am afraid we shall have some people
joining in this from whom I expected better things."
To the question "By what right or justice should the whole of
these local taxes be laid upon the real property of the country?"
Cobden, speaking at Leeds, December 18, 1849, replied:
"Poor-rates have been nearly three centuries borne
by the real property of the country, and the others are nearly as
old as our Saxon institutions . . . the charges have been endorsed
upon the title-deeds and the property has been bought or inherited
at so much less in consequence of those charges, and, therefore, the
present owner of real property has no right to exemption from those
burdens, having bought the property knowing it to be subject to
those burdens, and having paid less in consequence . . . there is no
other security so good as the land itself. Other kinds of property
may take wings and fly away; capital employed in trade may be lost
in an unsuccessful venture ... wages sometimes disappear altogether
and, therefore, die real and true security to which the people of
this country should look, is in the soil itself. But I have another
reason why this property should bear those local burdens, and it is
this - it is the only property which not only does not, diminish in
value, but in a country growing in population and advancing in
prosperity, it always increases in value, and without any help from
'the owners."
Thus Cobden answered those who sought compensation for the repeal of
the Corn Law, which itself had been imposed as a compensation for (he
alleged "burdens on the land," and which Sir E. Knatchbull,
the Paymaster of the Forces had asserted (Mouse of Commons, February,
1842) was required to enable the landed interest to maintain its rank
in society.
THE LAND TAX FRAUD
(Speech in the House of Commons, March 14. 1842)
To this special pleading Cobden answered that not only did the
landowners sustain no special burdens which entitled them to tax the
rest of the community, but that on the contrary it was notorious "that
they had been employing themselves as legislators in placing the
burden on others for the purpose of exempting themselves . . .
"Hon. gentlemen claimed the privilege of taxing our bread on
account of their peculiar burden in paying the highway rates and the
tithes. Why. the land had borne these burdens before corn laws were
thought of. The only peculiar state burden borne by the land was the
land tax, and the mode of levying that tax was fraudulent and evasive,
an example, in fact, of legislative partiality and injustice second
only to the corn law itself . . . For a period of 150 years after the
Conquest, the whole of the revenue of this country was derived from
the land. During the next 150 years it yielded nineteen-twentieths of
the revenue. For the next century, down to the reign of Richard III it
was nine-tenths. During the next 70 years to the time of Mary it fell
to about three-fourths. From this time to the end of the Commonwealth,
land appeared to have yielded one-half the revenue. Down to the reign
of Anne it was one-fourth. In the reign of George I it was one-fifth.
In George II's reign it was one-sixth. For the first thirty years of
George III's reign, the land yielded one-seventh of the revenue. From
1793 to 1R16 land contributed one-ninth. From that time to the present
one- twenty-fifth only of the revenue has been derived directly from
land.
"Thus the land, which anciently paid the whole of taxation, paid
now only a fraction or one-twenty-fifth, notwithstanding the immense
increase that had taken place in the value of the rentals. The people
had fared better under the despotic monarchs than when the powers of
the state had fallen into the hands of a landed oligarchy, who had
first exempted themselves from taxation and next claimed compensation
for themselves by a corn law for their heavy and peculiar burdens! The
land tax was in reality a substitution for the ancient feudal tenures,
The land was formerly held by right of feudal services . . . How could
anyone suppose that land would always remain at the valuation of 1692?
And yet it was upon that valuation that the land tax was charged. Was
there anything analogous to this in any other part of our system of
taxation?
How Taxes on Land Decreased as a Proportion of the Total Revenue
Note: -- The land-tax and the feudal dues were defective
in that "improvements" were included in the term "land";
but nevertheless they resulted from a recognition that land
ownership carried with it responsibility and that all land, being
held of the Crown, should pay, according to its value, to the
expenses of the State.
"Take the case of the assessed taxes; there the collector went
round every year, and diligently noted any increase in the number of
windows, in the number of carriages, and other articles subject to
assessment.
" . . . Now it is quite evident, that when the land tax was
fixed at 4s. in the pound, it was contemplated that there would be an
increasing rental. The feudal services to the Crown, which were given
up, were of themselves of growing value with the increase of wealth
and population. The case of the Lords of Manors was exactly in point.
. . Take, for instance, the case of Sir Oswald Mosley, the Lord of the
Manor of Manchester. His feudal rights in that borough were probably
worth nearly £200,000, or twentyfold their value 150 years ago.
This great increase had arisen out of the growth of population and
wealth, and the feudal rights of the crown over Sir Oswald Mosley's
property and that of other lords of the soil, as commuted by a land
tax of 4s. in the pound, ought to have increased in a corresponding
degree."
This speech was printed by J. Gadsby of Manchester as a pamphlet in
1842, under the title The Land-Tax Fraud. Morley does not
mention it. It is not included by John Bright and Thorold Rogers in
the Speeches on Questions of Public Policy by Richard Cobden, MP.,
edited by them (1880), but they do include a speech made in London on
December 17, 1845, in which Cobden pointed out how the people had been
"cheated, robbed and bamboozled upon the subject of taxation . .
. how the landowners here, 150 years ago, deprived the sovereign of
his feudal fights over them; how the aristocracy retained their feudal
rights over the minor copy-holders; how they made a bargain with the
king to give him 4s. in the pound upon their landed rentals, as a quit
charge for having dispensed with these rights of feudal service from
them
how afterwards this landed aristocracy passed a law to
make the valuation of their rental final, the bargain originally being
that they should pay 4s. in the pound of the yearly rateable value of
their rental
The land has gone on increasing tenfold in many
parts of Scotland and fivefold in many parts of England while the
land-tax has remained as it was 150 years ago."
All that one learns from Morley regarding Cobden's thoughts on this
question is that "He spoke at a great conference, held at Derby,
of the merchants of Derbyshire, Nottinghamshire and Leicestershire,
where he made a vigorous onslaught upon what he called the Land-tax
fraud" (p. 210). The reader of the 956 pages of The Life of
Richard Cobden might excusably enough conclude that the subject
was of small moment to receive such scant attention from Lord Morley.
As this Derby speech does not appear in the Speeches edited by
Bright and Rogers we must go to the Manchester Guardian of
December 11, 1841, and the Derby and Chesterfield Reporter of
December 16, 1841, for the text of what Cobden said on this memorable
occasion to the 400 guests at the dinner held in the Athanaeum Hall,
Royal Hotel, Derby, on Thursday, December 9, 1841:
Speech at Derby, 1841
"Gentlemen, I predict that we of the Anti-Corn Law
League, who now claim the total and immediate repeal of the
Corn-Laws as an act of justice, will, in less than a twelvemonth be
looked upon as a moderate, as a milk-and-water party. Sir Robert
Peel has directed attention to this distinct point of landlord's
legislation; and when I look into the question of the land-tax from
its origin to the present time, I am bound to exclaim that it
exhibits an instance of selfish, legislation secondary only in
audacity to the Corn Law and provision monopolies. Would you
gentlemen, who have not looked into the subject, believe that the
Land Tax, in its origin, was nothing but a commutation rent-charge
to be paid to the State by the landowners, in consideration of the
Crown giving up all the feudal tenures and services by which they
held the land? Yes, exactly 149 years ago, when the landed
aristocracy got possession of the throne in the person of King
William, at our glorious revolution, they got rid of all the
old feudal tenures and services ... which yielded nearly the whole
revenue of the State; and besides which the land had to find
soldiers and maintain them. These incumbrances were given up for a
bona fide rent-charge upon the land of four shillings in the pound;
and the land was valued and assessed, 149 years ago, at nine million
a year; and upon that valuation the Land Tax is still paid . . . The
collector takes out his old valuation dated 1692, and gives the
landlord a receipt in full, dated 1841, upon the valuation made a
century and a half ago. I say we are indebted to Sir Robert Peel for
calling our attention to this subject . . .
"It is a war on the pockets that is being carried on; and I
hope to see societies formed calling upon the legislature to revalue
the land, and put a taxation upon it in proportion to that of other
countries and in proportion to the wants of the State. 1 hope I
shall see petitions calling upon them to revalue the land, and that
the agitation will go on collaterally with the agitation for the
total and immediate repeal of the Corn Laws, and I shall be very
happy to contribute my mite towards paying the expenses. Not only
ought we to have an abolition of all the taxes upon food, but we
ought to raise at least £20,000,000 a year upon land and
building land; . and even then the owners of land in England would
be richer than those of any other country in Europe."
The above quotations must be left to speak for themselves. There can
be no slavish acceptance of Cobden's words because he said
them. What is important is that we too should be prepared to follow
the deductions of political economy wherever they may lead. Richard
Cobden saw the vital importance of a question that, politically
speaking, only just heaving into sight. Although clear-minded to
realise the vital importance of the land question, and the manifest
wrongs arising out of it, Cobden lacked a synthesis -- a putting
together into a harmonious unit of the different aspects that he saw.
The only conclusion to which one can come is that he did not know how
to free the land, else he could not have left to those who followed
him the exhortation, to "free the land" without also giving
them a lead as to how they should do it. Cobden realised that Free
Trade in itself was not enough and that production also must
be free. Now, in so far as every activity of man is inseparably bound
up" with his relationship with the earth, its monopoly, whereby
the communally-created land value is diverted from its rightful use -
public revenue -inevitably leads to the placing of the burden of
public expenses upon those who exert themselves in production.
The deductions of political economy lead us uncompromisingly to the
conclusion that we must break the land monopoly if we are to free the
economy of the country. Given the freedom to produce, the benefits of
free trade would be readily recognised.
If we are faithful to the Free Trade principle and apply it to land
and labour, then we can fully share the faith that moved Cobden when
he spoke in Manchester on January 15, 1846. and said: "I see in
the Free Trade principle that which slum act on the moral world as the
.principle of gravitation in the universe - drawing men together,
thrusting aside the antagonism of race, and creed, and language, and
uniting us in the bonds of eternal peace ... I believe that the effect
will be to change the face of the world, so as to introduce a system
of government entirely distinct from that which now prevails. I
believe that the desire and the motive for large and mighty empires;
for gigantic armies and great navies - for these materials which are
used for the destruction of life and the desolation of the rewards of
labour - will die away; I believe, that such things will cease to be
necessary, or to be used, when man becomes one family and freely
exchanges the fruits of his labour with his brother man."
Either this is possible or all man's aspirations are a mockery. But
man continues to aspire.
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