NEW ZEALAND FAMINE

Evening Post, Volume CXII, Issue 17, 20 July 1931, Page 11

NEW ZEALAND FAMINE

CAUSES OF DEPRESSION

LAND MONOPOLY AND TARIFF

There was a full attendance at the Trades Hull last evening when Mr. P. J. o'Began gave an address under the auspices of the Land Values League on "The New Zealand Famine, the Polltax, the Baid on AVages, and the Way Out." Mr. A. Piirlaue presided. The speaker pointed out that when barbarians experienced a famine there was a real shortage, but in civilised society there was dire poverty amid abundance. It was this .shameful condition which had suggested to Henry George the title of his book, "Progress and Poverty," and there was nothing in the present situation which he had not explained and predicted. The most depressing fact in the situation was that political leaders suggested no remedy, indeed, most of. them frankly owned that they knew of none. Charity was a great virtue, but if the present system of relief continued, a large proportion of the population would be ruined in' that they would become lifelong mendicants. Justice was infinitely better than charity, and under conditions of justice no able-bodied person would need charity* The speakeri vigorously attacked the unemployment levy, which' he characterised as a poll-tax, and such a j x was historically odious and morally indefensible. As for the reduction of wages, it would certainly worsen the situation inasmuch as it would reduce the purchasing power of the people and force many trades people into bankruptcy. Common-sense dictated that high wages was a convertible- term for prosperity, and the verdict'oil political economy was the same. The'great Adam Smith taught that the wages of labour were the encouragement of industry, which like every other human qualify improved in proportion to the-encour-agement it received. There was nothing mysterious about the prevailing depression. -It was duo in the iirst instance to the high price of land; secondly, to the monopoly of laud; and, thirdly, to our terrific tariff; and the remedy was plain,. simple, and effective. What was required .was an increase in. the land tax and a reduction of the tariff. The unimproved.valuo of land to-day in round figures was £340,----000,000, an increase of £9,000,000 in eight years, but despite the kurcase in value the revenue from the land tax was steadily declining, and the amount yielded last year was only 2S 1,145,617 — little more.than twice the rate, revenue of Wellington.City! A Blue Book just issued showed that there were 51,391 freeholders liable to' land tax, and that 9178—less than one.-flfth—^represented an unimproved value of £135,000,000, or 1531 acres-each, of whicK the un r improved value,is' £14,700. Yet While these land monopolists' contributed a fractional amount-by way of land tax, the masses, in addition to having to bear the most of the Customs' taxation, were called upon to pay unemployment levies and wage taxes! This was what the politicians called equality of sacrifice, or evoryone. doing his share. What was required was a ilat tax on the unimproved valuo.-without exemption or graduation. Such a tax levied at i. per cent., little more than 2d in the pound, would produce £3,400,000 annually, which would make possible a sweeping reduction of Customs taxation, f.ho amount of revenue, however, though important, was a minor consideration compared with the effect of'tho taxation. First, there would be an immediate, drop in the price vt commodities which would be -tantamount with increase of wages, and, secondly, laud would bo simultaneously-brought into the market. 0n..a1l sides- The result would be immediate, opportunity for profitable employment, produeticn would be increased enormously, and there need bo no more doles or levies. Vims by a simple reform in taxation would the people's right to the soil of their.country be asserted iind secured, while our. trade, no longer strangled by a. high tariff; .would' expand and vitalise the country. The cause was good and^worth a struggle, but there need be jio struggle once the people made up their mind as to the cause of the depression and remedy. . The. speaker answered a.number of questions, and was accorded a vote of thanks -by acclamation. It was announced that the next: address would be -entitled "Housing, ami House Rent." ... .