LETTERS TO THE EDITOR.

New Zealand Herald, Volume XLVI, Issue 14214, 10 November 1909, Page 5

LETTERS TO THE EDITOR.

TAXATION" AND CAPITAL. Sir,—l notice in the v Herald : 'of. ; October" ' 28 'a quotation from John Stuart Mill as .; follow*: "The breach in the capital of the ~ country was made 1 when tho Government took A's money, whoreby<a value of £10,000 was withdrawn or withheld from productive . . employment, placed in ; the fund for unproductive consumption, and destroyed without equivalent" This, of course, is true, but does John Stuart Mill tell us what would happen; if ■ all tho money or value now taken by taxation in all civilised coun-.-■.■■;■ tries was taken from unproductive consumption and used for the production of labour / products? Would it 'not tend to lower the - ', prices" of labour-products until very few ' people could possibly made ■ a "profit" or: pay. current rental for land? The competi- •.■ tion of this capital; or value with other "spare" values may : destroy more " value" than it could possibly have created had it been put to productive employment. Excessive competition with capital, money— ■■■■■■.: , or, , properly speaking, the competition of spare value with, spare valueproduces the . -same results as competition of men with men. We can destroy the "fund" from which all are paid by producing too much. , Fortunately, our ; present system has, a .-" safety valve" in , the.; ; ! ever-increasing :''*' land j values." As people get purchasing power through buying the privilege of * drawing "rent" and "profits," they soon< cease productive employment, and go-; in. ; for more of tho unproductive consumption, which steadies the prices of labour products and ■ helps; to ■ maintain the normal level of V" rent" s and "profit." Possibly John Stuart Mill never saw the truth of " spare values or capital being created by the investment and use of money by " individuals" that is not created when a Government , uses the : money for the • same ; purpose. For example, our Government starts to "work a coal mine, and distributes . the coal direct jto the consumers. The State may make a "profit," but ■ that is all the money available for productive Em- • , ployment in other channels, :or in .further .' development of ' the same business. Now, let us suppose that individuals or a 'company started the coal-mining business, and made equal profits as in the other case; . We should find in the latter, case that -the"profits" would be bought and ' sold, and the "private wealth" or capital of the Dominion would bo (increased.'; by :! £100 for ? every five or six pounds' worth *of profits .. ( made. John Stuart Mill, may not have seen - "'" • all this, but I see: it; and 1 say that's the . time has come when : it is necessary ' fo.r. our welfare that our politicians should see ;■ ' -■,-.' it, and act according to their light on ..the .- question. A. OANFOBD.

THE ROTORUA BATHS. Sir,— visiting Rotorua I took tho opportunity -of " taking. ; . the waters." Not being, aware that the tulphatic atmosphereJis injuriouf.tp; the heart, ; I wended 'my Way one etching ; ; to the Priest's Bath, and i partook "of its waters. . But the result was rather . serious to my- - self. ,It 6 has considerably weakened my , , / heart, • and 'so"! 1 , writo; •with-.stho ► view o£ ■ warning those poor, souls with weak, ' - to act in"a more • cautious -'manner,; than I did. I would, moreover, suggest: iateps'i' > should ■bo taken to have signs ' placed in ; .tljo . various baths warning the bathers. ■••.- , . , •-;:"' .•: .'.;•■•'.''••; ._.-■ .■ •' ->' .-. i: J.H. • '■*■ ..> . ... :> : ■;- •■ • • ,i ■ . THE PROGRESS OF ' AUCKLAND. ■'. , .■'. ."; Sir »—Being one .who has' watched" the, growth of the city from its. infancy, and ■having the welfareof its people at.h»an,':»--crave a.little of yourjValuablo-spaoef-tO; offer- ; a few comments On an'article appearing t "in, v* ryours of the 29th ult.,- under, the , headings ,-f • "Progress of Auckland/%fdo^;*tot: intend , • to criticise civic' or Harbour Boardmatters, ;.: r but will confine' nvself\to-\tho* v ,.d.|sferydwr f ' .; business side> of « the question, -particularly so in reference to, ' thaC portion'; jr. four , columns ,headed : .-" Private... Enf sir . which ■.''■ deals with the "present ■ city and - suburban land and buildin*- boom, \ After • giving due consideration to your- figures, tho - •■.. ['question has arisen in my mind, "Are* we" not going ahead too fast? 1 ! In view/of our l past experiences ■■■ of ;. booms of all _ kinds and , subsequent depressions, is not this so-called '.' progress^finanpiallyr-rW l * <: ;;mythical,...ithan real, and *w^ wWpot-.have'a day ■offreckon- .- 'ing:a&onivpastfocca&ions?.-!l am no pessimist, - ■■•'.. • but peli,ithese.-few Uncaps? a^w&wsmg <m the everyday portion '*• of the; community//'who ■,:-,-•:■ •are. in' my'.opinion; v bcH#"-l«3"'intb'.'.'.wild ' cat" speculations,' 1 and generally., exploited by the • capitalistic, .class.',' Some .'time • ago you called attention to. the vast amount of ' , mortgages in "Wellington province, viz., *; i £19,000,000, *as against those in Auckland province; 0f'£6,000,000. At the rate'we are now going* we bid fair to soon outdo the : Empire city in that respect. To iife/a hackneyed ;; commercialism, ~ ' Who . is- going to nurse the baby?" Have wo not been-oon- ; timially warned by tho < heads*" of .leading financial institutions to ! al^k: 6 'flowly, and nbs boded away by those'- whose; per-;-: sonal gains'; are ', achieved■-,by recklessly : .trad- V ' ing on the. credulity of others.' ; The present so-called cheap money-will;in, the, end'pro. j to the investor, very,, dear ai. ,the l :daV■ of ■, reckoning, Which" I'much fear is at no.distant date. To point an instance of the misuse of capital' outside of its'* legitimate , ; bounds, I will detail a. small conversation -'-' I had some few years, ago-with the- general manager of one of' the'leading - baking insti- . tutions, in, the f Dominion. Asking him at that time-why-they ,' could'not; assist their '» ordinary business ; customers,, he. . replied: " Oh, the small people' wi}l-*;hav« to'take a backseat; companies will ho able to absorb < their trade, and our capital' can bo placed to '■ better advantage with them.". Later,''many <V. . of these;companies; collapsed, and putting • the r question -to ; the same ; gentleman, .""*'... " What about financing companies now?!!* lie. replied, "We overestimated our strength." " * lam afraid that there will'bo a recurrence ''''," of, this position at the rate ■ we aire going, ■and it is! time we called ,a'halt; and thus . : avoid disaster before it is too late./, Are- •. , • son able sound and •steady ■ progresses 'the desire of every - citizen who has; th* well*v 1 ' being of his city at heart. In. conclusion, I would cite the case soma years- ago of . " Marvellous. Melbourne ". and.-the .experl- * ences of her people in their land and building boom, and its collapse. Thousands'were ' rendered penniless, and bankruptcy was>rife V / throughout the city. "Forewarned is forearmed." Thanking you in "anticipation, v -. ;' . ~ BU, ?' IBEI Wt '■:'-'"- -. -~"::;;-■ '■:■''-%.,''::;■ ".""'""'.!";' V "',' :',"-; r ™,';',",*;'" •.— ■':>.:■* :«; l yiV:-'; v .;-: 'i'Hi't:",' MINIMUM FAREI TRAMS, V Sir,—Per medium of your valuable paper I beg to draw attention to a matter that is of direct concern to all who use the trams. The Tramways > Company have adopted -' a • ' method of despatching cars about. five p.m. bearing the; legend "special minimum fare 2d." Now, large numbers of people living in ';■ and about Symonds-street , and ' the - adjacent districts % board' these cars ' without noticing the "special," etc., and are systematically bounced into paying 2d for the •" Id ride. I say bounced, because from inquiries at the City Council office I find that the company has no legal right to charge 2d for the rld |. section, and "though ■ the City Council is aware of the 'fact nonaction is taken. Accordingly, ■since- the City. • Fathers, from reasons best known; to '••' them- S v'iselves, are unwilling to look after the public interests, the public will : have to battle.«for .themselves, and to give; them' some little ground for fighting 1-!,havetencroachea on your space to give the above fact*. gained from personal experience. Thos. Walsh,