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Ralph Borsodi's Vision of Land Reform
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| [Reprinted from The
Green Revolution, September 1975] |
About that time Bob Swann had begun to lose faith in the
ability of direct action alone (i.e., protest) to engender solutions
to war, poverty and injustice. Swann was corresponding with Griscom
Morgan of Community Services, Inc. on the question of thorough-going
alternatives to the land tenure and money-moving patterns dominant in
the Western world.
Luitweiler got involved in this dialogue and drafted a paper on 'land
reform in America.' In embryo, his paper set forth the now popular
thesis that the American peace and freedom movements were in
essentially the same position as liberation movements in the Third
World, and that protest could never be sufficient without alternative
institutions developed from the grassroots up in total independence of
the status quo. Further, Luitweiler had some ideas of ways
grassroots institutions in the U. could creatively interact with those
in the Third World to the furthering of land reform in both.
Then in late '65 Ralph Borsodi returned from several years in India
with a remarkable plan. Theory seemed about to blossom into practice
on a grand scale. Borsodi had gotten together with Jayaprakash Narayan
and together they'd cooked up the best idea any of us had heard for a
long time.
Back then in 1965 over ten thousand Indian vjllages had already
reconstituted themselves as gramdan cooperatives. These
villages often lacked adequate financing to make gramdan more
than tokenism. They needed credit for planting loans which would not
depend on the local landlord-moneylenders. There were Sarva Seva Sangh
development workers in every village who could supervise the necessary
small crop loans if only a source of funds were available.
Borsodi at that time had already matured his theory of a
non-inflationary currency to be called the Constant. He proposed to
Narayan that Constants be issued as debentures in the U.S. and Europe
to attract investments from socially-motivated people who in addition
sought a hedge against inflation. Likewise, at the Indian end, the
loans to farmers and villages were to be non-inflationary, calculated
not in rupees but in Constants. The project was to be vast enough to
support itself by arbitraging commodities, thus avoiding any
significant portion of its assets remaining in national currencies
long enough to suffer from inflation.
Around this Narayan-Borsodi brainstorm, Bob Swann incorporated the
International Independence Institute in 1966. Unfortunately, the plan
never materialized. The Government of India had gotten wind of it and
viewed the proposed Constant currency as a threat to the rupee.
Narayan received word from the Indian government that if he introduced
the Constant into India his funding for Sarva Seva Sangh would be
discontinued. (India too had its War on Poverty in those days.)
Swann lowered his sights and persevered. The American South had many
of the same problems as an 'underdeveloped' country.
BREAKTHROUGH
He organized a half dozen key black Southern ruralists to accompany
him to Israel for first hand research. A 5800 acre farm near Albany,
Georgia was for sale for $1,080,000 and Swann offered to raise the
money if the black leaders wished to make it a model land trust for
expropriated sharecroppers. While in Israel with Swann, the black
leaders decided to proceed, following the
moshav rather than kibbutz model of land settlement.
Unlike a kibbutz, a moshav is only partially a
cooperative. Families live in individual homes with 5 acres more or
less for their private use, the rest of the land being farmed jointly.
Thus from the ashes of the Albany Movement was born New Communities,
Inc. of Georgia.
From that time to this, the I.I.I. files show over 50 community land
trusts formed, and the actual number is estimated as at least twice as
many. Most of these rejected the rigidity of the land trust legal
requirements in their states and instead incorporated as non-profit
corporations.
With Trust in the Hills, Inc., chartered as a West Virginia
profit corporation in January 1975, a trace of direct action sentiment
has reemerged after years of mooting. One of the trust's clauses, as
you'll see below in the By-laws, calls for us to get together and
consider civil disobedience in the event any tract of trust land is
threatened by damage from strip-mining, timber cutting, or other
non-ecologic exploitation. The threat needn't be aimed at trust land
specifically. If, say, strip mining is contemplated up-creek from a
trust tract, we would meet to consider direct action to nip the idea
in the bud. We'd consider sitting in front of bulldozers or haul
trucks, picketing offices of the stripping company, and hopefully new
approaches with more novelty, as yet uninvented. We wouldn't engage in
sabotage, however, as some have lately in Kentucky.
At Trust in the Hills' first annual meeting in April, '75, six tracts
of land were donated to the trust and then leased back by it to their
residents. Donated land would be accepted also, as by the gramdan
movement in India, in cases where the doners did not intend to reside
on the land. The trust would try to locate persons interested in
leasing such land, so long as their intent was to live on the place,
not just visit it occasionally.
We put a lot of thought into the By-laws of Trust in the Hills,
trying to design them from the viewpoint of lease-holders, not of
trustees. (Albeit the trustees are simply one representative from each
lease-hold.)
Finally, although Trust in the Hills is a profit corporation, you'll
see that our By-laws make us non-profit. This was we have fewer annual
forms to file than if we were chartered as non-profit. We can't file
with the Internal Revenue System for tax-exempt status now, but maybe
we'll outlive the federal government. Who knows?
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