THE CAUSES OF, AND THE CURE FOR, THE EXODUS.

New Zealand Herald, Volume XXVIII, Issue 8661, 2 September 1891, Page 3

THE CAUSES OF, AND THE CURE FOR, THE EXODUS.

THE LAND TAX AND OTHER LABOUR DELUSIONS. Part 111. (Part I. having been published Sn tlie New 7.EA. I.AND lleraU) oh 31st August, IS9I, anil Part 1L on Ist September instant.) " False ideas may achieve a more or less extended, ft more or loss durable success—they can never extirpate their God-like assailants. Truth is patient—it does not easily surrender its hold on society never abandons its purposeit eveu exercises some sway over that region where error reigns most despotically."—Quizot, Representative Government, 1552 ed., p. 68. Let me now summarise my arguments against the Land Tax and especially in relation to largo holdings, . 1. As its main primary purpose is avowed to be not revenue, bub to burst up big estates, it should, of course, be first proved that big estates have some connection with industrial misery, or general prosperity ; which has not been proved. 2. Even supposing that had been proved, it must also, of course, bo shown that there is now a lack of good available land here, and therefore that the existence of big estates is retarding general settlement; which also has not been shown—but the contrary is fact, and well recognised fact. Thus, first of all, the premises are wanting ; and thus there is no honest ground for, or honest reason in, any bursting-up policy. Bat even if the premises were proved to exist, and if, therefore, a remedy should bo sought for, then— 3. What is proposed, ie., the land tax, is not a straightforward remedy, but merely a scheme, in its scope and principles dishonest—patently and covertly, and otherwise inherently vicious ; because it is in the form of a tax in its nature confiscatory, and levied—either primarily, or subsidiarily— for other than a revenue purpose, and levied also apparently with the covert intention of compelling owners to sell to the Government at forced sale prices. Moreover, it aims to effect its purpose in a sinister manner, and, forsooth, punishes a man for being more industrious, or thrifty, than his fellow colonists. 4. Further, if the tax were not dishonest, or otherwise inherently vicious, it is most impolitic for us, in cur present condition of urgent need of yeomen, to impose a land tax of any kind, i.e., to do anything which might deter such immigration, or which may dishearten small fanners ; and of the utmost importance to inspire capitalists with confidence to oppress, harass, or frighton them. 0. Moreover, oven assuming, for the sake of argument, that such a tax is not dishonest, or otherwise inherently vicious, or otherwise impolitic, it, as a lever to burst up big estates is not only 11 sinister, but an absurdly clumsy expedient; inasmuch as such bursting up could be effected simply, straightforwardly, and far more effectively by direct prohibitive enactment, under such special circumstances and conditions as .might not render such prohibition open to the charges of dishonesty, or other vice, or other impolicy. 6. But the whole Land Tax scheme is otherwise a huge mistake—a miserable clap-trap delusion. For we are dying of inanition, needing immediate tonics, not purges; which inanition cannot be remedied, and which immediate tonics can't be supplied by any such a tax, even if it were the grandest tax project devisable ; because it can't supply our immediately urgent needs Financial lnvigoration (involving restoration of confidence) and increased suitable population. Moreover, who (except the Government at forced sale prices) is to buy the big estates, and when bought, where is the population to settle upon them in addition to the iand now available for settlement, as it will take some little timo for the Premier's yeomen to breed a'Hi rear sufficient sons for the purpose, and its the colony's insane policy has been for a long time past, and is still, to discourage immigration; and as our legislative acts are not likely to encourage any such population to come? Further, even if such settlement could be made a considerable time must afterwards elapse before settlement could affect materially the general prosperity of the colony. Nor must it be overlooked that if the Government intend to buy the estates in order to retail them, the purchases can only be effected by loans, involving, of course, the annual payment of a huge sum for interest additional to that now paid. 7. Finally, supposing that the main, primary, or sole purpose of the land tax be revenue, then, as I have exhaustively shown (seo, for instance, the New Zealand Herald, 19th November, ISSS), there is no need for any such a tax, and even if any need existed for any tax in place of the property tax (which, of course, I deny), then a very different tax, in our present condition, should be imposed.—(See " The New Evangel," the New Zealand Herald, JulyS, 1859.) Thus, the whole land tax scheme, apart from the admitted tax-upon-improvements blot, and apart from injustices, inequalities, and anomalies in detail, has no sound basis for its inception, and is, in its scope and principles, bristling with absurdities, profoundly dishonest, otherwise inherently vicious, and otherwise flagrantly impolitic. Truly, the iden3 and pranks of the Premier respecting big estates, and the alienation of Grown lands, are past understanding, not only in view of the facts and arguments that I have adduced, but in view of the connection of the Stout-Vogel Ministry with the grant of the huge area of 2,500,000 acres to the Midland Railway Company, in which Ministry the Premier was Minister for Lands and Immigration—to say nothing of the immense quantities of Grown lands sold by the same Ministry for cash, and of their having maintained the property tax through the whole term of office, and of the Meiggs' negotiations. (See also Mr. Fisher's speech on the Land Bill. Hansard, July 24, ISO I, p. 490, et siq.) Before leaving this (Land Tax) subject, let me warn those unacquainted with standard writings on political economy against being misled at any time by the misapplication of principles, or by quotations without the context; such, for instance, as the misapplication of the misleading passage that i give below. For the superficial reader might suppose that the passage in question referred to a "graduated tax on land values," and would naturally presume that it is to be read without qualification ; whereas it is patent, even upon the/ace of the quotation, that the passage has no reference to a " graduated lax on land values," but only to the taxation of unearned increment"; and, moreover, is so subsequently qualified by .1. S. Mill, that lie, evidently, would not apply such a principle hero, except in respect of future accruing increment which, of course, involves entirely different considerations. A cause which requires such artifices to bolster it up, must indeed be indefensible. 1 now append the passage in question ; and then add Mill's qualification. Ist. The passage, as follows, appeared in a letter in the Auckland Star of 22nd August, J.SOI :— Now, as to justice of a graduated tax on land values, Mill thus expresses himself : ' Before leaving the subject of equality of taxation, I must remark that there are eases in which exceptions may be made to it, consistently with that equal justice which is the groundwork of the rule. Suppose that there is a kind of income which constantly tends to increase, without any exertion or sacrifice on the part of the owners ; those owners constituting a class in the community whom the natural course of things progressively enriches, consistently with complete passiveuess on their own .part; in such a case, it would be no violation of the principles on which private property is grounded if the State should appropriate _ this income of wealth, or part of it, as it arises. This would not properly be taking anything from anybody; it would merely be applying an accession of wealth created by circumstances to the benefit of society, instead of allowing it to become an unearned appendage to the riches of a particular class.'' ' '2nd. The context . (see Mill's " Principle of Political Economy, 1871 ed., p. 409, vol. 11 " Now this is actually the case 'with rents." . " . 10 It would, however, be most disingenous for any writer, quoting the sentence, to stop there. For Mill goes on to say i " But, though there could be no question as to the justice of taking the increase of rent, if society had avowedly reserved the right, ha* not octet waived the right, by not exercuing it. -I: In England, for example,, have not all who . bought land J or the lust century or more, given value,, not only for existing income, but for the prospects of incve«£fi, under ci 'im-

plied assurance of being only taxed in the same proportion as other income V &c., &c. " For the expectations thus raised, it appears to me that an amply sufficient allowance is made, if the whole increase of income which lias a.ccrued during this long period from a mere natural law, without exertion or sacrifice, is held sacred from any peculiar taxation. From the present date, or any subsequent time at which the Legislature may think Jit to assert the principle, I tee no objection to deciding that the future increment of rent should be liable to special taxation; in doing which all injustice to the landlords would be obviated, if the present market value of their land were secured to them, since that includes the present value of all future expectations." ■ . Mill, moreover, further says (p. 469): — - "In laying on a general land tax . . . there would be assurance of not touching any increase of income which might be the result of capital expended, or industry exerted by the proprietor." The italics are mine. I give the quotations pretty fully, so that it may be known that Ho colour is given by Mill to the confiscation theories now openly advocated 5 and which he is quoted as countenancing. My comments on the land tax are now concluded. In view of the facts and arguments adduced, it seems almost needless to state that it is beyond my intelligence to realise how the land tax scheme will possibly benefit Labour, or any other class in the colony. Bub the sinister character of the scheme, and its patent and covert dishonesty, and its other inherent viciousness, and its otherwise grave folly, including its Heedlessness, are no mysteries to me; but patent, melancholy facts, which must result disastrously for the colouy, and especially for Labour. j Nor can I understand how strikes, or any compulsory statutory Acts can permanently j aid the working man. j For class legislation, whether in the'form of unjust land, income, or proporty tax impositions, or exemptions, unfair charitable aid provision's, protection of local industries, absurd bankruptcy laws, or statutes for the special advantage of Labour, must, as a natural consequence, discourage the j main springs of national prosperity, and therefore be not only ruinous to general prosperity, and therefore to individual prosperity, but react disastrously against the favoured class. As Disraeli said upon a momorable occasion : —

"It may be in vain now in the midnight of their intoxication, to tell them that there will be an awakening of bitterness ; it may he idle now, in the springtide of their economic frenzy, to warn them that there may be an ebb of trouble. But the dark and inevitable hour will arrive. Then, when their spirit is softened by misfortune, they will recur to those principles that made .England great, and which, in our belief, can alone keep England great." Meantime, no impartial person can read the very able article by one of the leaders of Labour, Mr. H. H. Champion, in the Nineteenth Century Review for February last, and the reply in the March number by tho Australian labour delegate, Mr. J. D. Fitzgerald, without feeling sad that Labour permits herself to be so misled by leaders who are either cruelly ignorant of her needs, or wilful traitors to her cause. Such are some of the indications that Time, that brings all things, will bring conviction to Labour—that the idols she has worshipped, and the oracles that have deluded her, are not the true ones. She will also find out, in respect of those leaders, that she must "not contrast too strongly the hours of courtship with the years of possession." It will be interesting to watch the result of the recent laws enacted in the Great Republic for the protection of wage-earners ; especially the Weekly Taymenb Act in New York, and the other enactments there, and in Maryland, Ohio, Virginia, lowa, Massachusetts Kentucky, Louisiana, Mississippi, and North Dakota. (See the Review of Reviews, April, 1891, p. 335.) The cure , for the exodus is not, nob the quack remedies intended to be applied by the Premier, viz., the putting in hand of public relief, i.e., of public plundering works (see Hansard, 1891, second session, p. 68), or the sinister, dishonest, and otherwise vicious, and otherwise unwise Land Tax bursting-up policy ; but ib is a cure clear and simple. .It consists in that wo must, as I res peatedly, and alas! in vain urged last year prior to the election, all make common cause, and take an active part— even at this eleventh hour—in first educating aright public opinion, and then in returning such a reform phalanx of representatives to Parliament as will insure fruit, riot —general prosperity, nob class legislation. All must be wise men, who ill insure the constitutional reforms needed — financial economy (including sweeping retrenchment), fair legislation (involving of course justice for all classes and persons alike), and wealth production. It is only thus that confidence amongst capitalists can be restored, and immigration promoted, and thus the exodus stopped. For capital is now so frightened that it can only be reassured by placing in power men whom it can trust. Indeed, the Sydney Morning Herald says (see the New Zealand Herald of August 24 th, 1891) " It may be profitless to speculate on what the end of all this will be. That it will frighten capital from ' investment in the colouy will probably be scarcely questioned by those who arc forwarding this legislation. It is obvious that no person having all the rest of the world before him from which to choose would deliberately invest in real property, whether by purchase or mortgage, or other interest, where, it is plainly declared, such investment will be burthened with exceptional and even prohibitive burthens and it must be that the party promoting such taxation believe that thi3 capital can be done without, and that their individual interests can be better served by the compulsory expropriation of landowners, and the partition of their lands among the smaller holders. This is the objective point at which such legislation aims, and the results have 110 doubt been weighed by those who are determined to carry' it through. It is a daring venture, such as no other colony has hitherto attempted. It has been generally accepted that imported capital has been the very life-blood of colonial enterprise, and that when it was withdrawn, or when doubt or distrust made capital shrink within itself, industries and development and enterprise of every kind languished. The party now in power in New Zealand propose to teach a different lesson to the colonies ; and the colonies will be content to wait and learn."

My facts, arguments, and conclusions are all now before my readers. It is clear that the cause of tho exodus is ignorant apathy, aud that its cure is intelligent vigour. But I have written of all this in full detail, over and over again in "The Political Situation" (New Zealand Herald, 16th September, 1887), "The New Evangel." (The New Zealand Herald of July, 3, July 6, August 30, September 4, September 13 and November 19,1888; June 20, July 3, and July 8, 1889 ; and Juno 4, June 13, July 10, and August 22, 1890), and in "Tho Specific for Our Difficulties," and in " The Specific platform" (The Auckland Evening Star of July 17, August 5, September 26, September 29, October 2, October 6, October 14, and November 15, 1890) till 1 am weary and disheartened, and till I am sadly convinced that it is idle to writo more till we have suffered more. In concluding, I can pen nothing more pertinent to the present situation than what I wroto in the Auckland Star of November 15 last, just before the election :— "No, the crisis involving increased suffering, the consciousness of the insidious advance of despair—must first come.; The pudding must yet be found to. have fewer plums, and more suet. As time glides on it will make us wiser and sadder. Then, but not till then, we shall realise the folly of ignoring truth. Then, but not. till then, we shall recognise that the loss of moral sanity must sooner or later entail disintegration and decay. ~ , "Then, but not till then, we shall, like Rassanio in the play, turn from the specious casket, which contains only the deaths head and the fool's head, and fix 011 the plain leaden chest which contains the treasure. " Then, but not till then, after the invitable pain and patience, the present angels and demons of the multitude will change places. Meantime, I stand alone, but not ashamed, confident that although sound principles ; may be borne down for a time by senseless clamour, yet that they are strong with the strength and immortal with the immortality of truth; and that, however this may be flouted for the present, they will assuredly find appreciation at 110 distant date." Meantime, we " prefer apathy, dishonesty, and humbug, to effort, honesty, and truth"—a . fool's paradise—a paradise of castle 3 in the air—nob a paradise of facts, and therefore, meantime, it may indeed be , truly said also, as Warneford Moffatt re-

cently wrote in Blackwood's Magazine, " lb is felt that Democracy, in its truest principle, is not fulfilling the expectation of its early years. For i fear we have sown in folly too long for our days of sorrow to be yet over, that a much greater term of suffering must yet transpire before our sin of selfish apathy can be expected to be wiped away. But, of course, by the exercise of wisdom our time of delivery will come, when we shall only be too eager to FLING OUT THE FLAG OF TRUTH. R. Laishley.