Rangitikei Advocate. TWO EDITIONS DAILY MONDAY, JULY 15, 1912. EDITORIAL NOTES.

Rangitikei Advocate and Manawatu Argus, Volume XXXVI, Issue 10401, 15 July 1912, Page 4

Rangitikei Advocate. TWO EDITIONS DAILY MONDAY, JULY 15, 1912. EDITORIAL NOTES.

WE have always held the opinion that what is termed the ‘unearned increment” of the value of land Is a myth, except where speculation in land has given it artificial value. The*landowners are the chief payers of rates and tuxes, and contribute to both general and special taxation, and at is their mocey which has created any additional value of their land by being used for public works, railways, roads, bridges, etc. Even when money is borrowed fur publie works it is the land which becomes security, and, in fact the land eventually pays for all, it is curious that those who allege the existence of unearned increment of the value of land do not complain cf the unearned increment of shares in companies, or the increased profits of business concerns which combine to force up prices or which have an understanding with eaob other that

prices shall not bo below a certain standard. There is, indeed more "unearned increment” of the value of an old-established business than of the value of land—if indeed there is such a thing as unearned increment, seeing that in the case of a business which has been successfully built up, its value and profits are merely the just reward of the enterprise industry, and skill of its owner.

I WE observe tbat Mr David 'Jones a I well known Canterbury farmer, has I been writing on this subject in a * contemporary, and his remarks are - commended to .the notice of those who talk of "unearned increment.” He says:" We Lear to-day on every hand that the unimproved value of . land has increased enormously. The men who are preaching these things from the public platform, and tbrongb the press, are to a great extent, ignorant of'tbe way the unimproved value is arrived at, or, what we do not cate to suggest, are stating what they know to be untrue, I will give here an illustration of the value of a farm of about ■2500 acres, tbat was purchased less than 12 years ago, within seven miles of a railway; no public money has been spans to add value to it. An Instance of the individual energy and ability of one farmer in comparison with the previous owner; same land, but different men in occupation. When purchased, the ) property was carrying 1700 sheep, and 9200 pounds of wool was shorn —less than 5% pounds per sheep. The lambing was 80 per cent., and all lambs were sold as stores. The unimproved value of the place was £4 per acre. It employed one man and one boy. The new owner, by skilful cultivation, strenuous toil, . and heavy outlay has made it a fine agricultural and grazing property, carrying now 4000 sheep, instead of 1700, clipping eight pounds instead of less shatt five and a half pounds of wool Weil over 3000 of these sheep are ewes, and the average percentage of lambs is 100, The number fattened and shipped Is 97 per cent. In addition to this, an average of over 10,000 bushels of wheat are grown, the sheep and wheat and other goods materially assisting the railway revenue. The wages paid to-day are six times as great as previously, besides the large amount of labour expanded in buildings, implements, machinery, etc. Over £6OOO has been spent improvements on the porperfcy previously, brought the improvements to over £9OOO, and the Government valuation for improvements is a little more than one-third of the total cost. The State thus robs the farmer of over £SOOO, and it goes to swell the unimproved value. The capital value of the farm has rapidly increased, and to-day the taxation is very heavy, the difference between the unimproved value to-day and twelve years ago is enormous, but Who created it? The State has given no more facilities, has not fpent any public money to benefiit it, the people who maintain our market are overseas. The State has in fact materially benefited through the increased production, and now while professing to tax oa the unimproved value, in this Instance confiscates for taxation purposes over, £SOOO of permanent improvements as well as the whole of the improved quality of the stock and the increased yield of wool and mutton, confiscates the whole cf the unexhausted artificial manures In , the soil; confiscates the result of the brain and energy of the farmer in bringing a ‘tussock’ farm to a highly improved agricultural farm, and calls the difference between the capital value and the few ‘bob’ they allow for improvements the unimproved valne, and irresponsible, Ignorant people add up the total, and say the community have msde the difference—its unearned increment. ”