SINGLE TAX V. PROTECTION.

Waikato Times, Volume XXXIX, Issue 3160, 24 September 1892, Page 6 (Supplement)

SINGLE TAX V. PROTECTION.

[CONTKIBOTEII BY THOMAS 11, WHITE.] Party Animcs.—Many of your coitcpendents in giving -out to their thoughts Very often exercise Ihcir pen with a view to launching out political anathema 'gainst the particular government in power, most often the diatribes shewn gr' - ;it. want of thought and as regards toleration they arc generally conspicuous for want of it. Instead of using arguments of or with a sound basis, they are carried away by an excessive party feeling, condemning every thing which may emanate from the particular platform in polities with Which they may claim to be in opposition. I should be very sorry to imply that variance in thought is no* necessary, either upon political or religious topics hut that moderation and toleration to those who may differ from us individually is highly essential, and to arrive at the merits of any proposition the first attributes of those worthy to argue the pros, and cons, is that of honesty of purpose, and a sincere wish to benefit their country in the first instance and in the next the whole world. It is no use splitting straws over ideal differences which when thoughtfully analysed, little margin is found between the ultra radical and most conservative of colonists. An honest man, whatever his politics, maybe will do his best for his country, and a pure demociacy is more calculated to keep an honest man straight than the best autocratic government shown by histoiy. Unwritten Law.—A very able lawyer

, once told me that contracts in law were Only calculated to keep honest men straight ; the villain could always break the line by which he is held by the law. Although I may agree in part with this theory, other immutable laws, although not written, infallibly produce punishment either to individual, national, international, or universal infringement of laws—l mean those unwritten. Democracy. — Certainly, democracy may miss its mark for good, where the people are not educated and taught to think, but this state of matters is rapidly on the change, and a healthy tree is blooming whose fruit when gathered may be anticipated of better quality thau that born of the cankered tree. Land Tax r. Customs Duties.—We are living in momentous times when everything which at first sight may be and is the exact reverse to that arrived at after deliberate and intelligent thought. The farmer and landowner may think that a land tax would be ruinous to the agricultural and pastoral interest; the working man—l mean those depending upon a daily wage for existence—that a high protective duty is necessary to eusure steady and remunerative employment. The proof that both are wrong would go far to show that the interests of both are one, and that a land tax imposed and a consequent free tariff would be the real interest of both and would at once show the goal for which their exertions should be directed. Social Problems.—Another important feature of the times in which we live and which requires careful thought to realise in its full significance, is the tremendous advance in the power of production through improvementsiu machinery, which is increasing at a greater ratio year by year ; and it should not be difficult to any ordinary intellect to realise that if the power of distribution is not co-equal with productive power, trade depressions must be the result, and all business men know that this means the inevitable decrease in the value of all securities or investments, whether in land or any other description of accumulated wealth. This would again imply that legislation should not be on the side of ! wealth alone, but should bo with the view of placing in the power of the many to participate in the benefits of the increased power of production as machinery advances to a greater state of perfection. If this immutable law is neglected, the result canuot be otherwise than a restricted purchasing power in the masses— the consumers of the result of the productive power of machinery. The commercial equilibrium is destroyed, and all its attendant evils necessarily follow. Single-tax. —The colonists of New Zealand in performing their first duty— that of exercising their power, great or little, for the good of their country—is obviously in the direction of a Land Tax and a free tariff, rather than no Land Tax and high protective duties, for the

following reasons, to use a familiar adage : "It is better for the cobbler to stick to his last." Let the poorly-paid European workmen supply us with our necessities of his manufacture, which we cannot and should not wish to compete with, and we can repay him with chaap food, which we can produce in superabundance.

Land Tax.—Direct taxation upon the land for revenue purposes would necessarily be amply recouped by the facility with which our exports would be quitted in order to pay for imports necessarily following a low tariff, which again means full ships to and fro and consequent low freights, and what is of far greater importance, the energies of the laud occupier and its capabilities would be taxed to an immeasurably greater extent than at present to keep pace with the demand and with the increased prosperity of the workpr upon the land. Mechanics and labourer!) of every description would have a corresponding demand for their labour, while taxation would be reduced to a minimum in consequence of the disbandment of the present army of Crril servants, who would then be unnecessary, but whose energies would be directed in other form to develop the great natural resources of this colony, which I contend—if wisely governed upon the principles hinted at—would never be subject to what is called de pression and those evils which always attend commercial rupture, viz., decline in value of land and all securities of whatever description. We have had in [ the past sad experience of this *tate of matters, for is it not well-known that a few years ago, during the last trade depression, land had not any defined value. We are not even now, notwithstanding the great increase in the value of our pastoral and agricultural production, completely recovered from the shock. The same experience will assuredly be repeated unless a return to what may be considered first principles is adopted. Free Tariff and Superannuation Fun*—An almost free tariff and taxation upon the unimproved value of the land is undoubtedly the only fiscal policy suitable to most, if not all, countries, and if any import duties are imposed, the whole should be appropriated to form a superannuation fund, and as all must necessarily subscribe to this fund, those who wished to retire from the battle of life through incapacity, old age, or any reason whatever after a certain age should be at liberty to secure its advantages, and form village communities, wlrich should be removed as far as possible from tho principle of charitable aid. An organisation of this kind, which should be more after the principle of a reward far energy and activity, directed for the good of the State during the prime of life, would go < far to create a solution of this social i problem.

Population. - One of the great drawbacks of a colony like New Zealand, with bo many natural resources, is the want of population of the right description, and those born in the colony, there is not a shadow of doubt, are the most valuable in kind ; but high tariffs tax those who have large families the greatest, and those parents who struggle to keep their families respectably clothed, fed and educated, are these who suffer most from high import duties. The land occupant with a large family is therefcro handicapped, for while being taxed most heavily in proportion, he is almost iuYariably in that position hy which he can reap the least amount of benefit for his children by the present system of education. A land tax as against high tariffs would have the effect to place people more generally upon the land, disperse

centres of population for a time, but eventually reconstruct larger centres upon a more solid basit than at present ; but if the whole matter was systematically and progressively carried to its ultimate issue, very little perceptible displacement would re.-ult.

Ci.ass Lk<ust,ation*.—lt is becoming a recognised fact that legislation upon the >ide of wealth has only proved a lametilnble mistake, and is calculated to bring frequent periods of depression. It is. therefore, far away from a true fact, when legislation it exercised for tiie g-ooil of the greatest, number, to call it. e,la>-s legislation. The general principle could be reasoned out from well-known and accepted principles of political economy, coupled with a study of llie times in which wo live. I am singular enough to helieve that one hundred fairly prosperous individuals are far better for any St ito than ninty-ninc indigents and one very pro-pcrous individual. The very safety of the individual accumulator rests with the prosperity of the greatest number. I do not wish to infer that undue riche-* in the individual should in any way lead to confiscation by democratic legislation. The true democrat recognises the fact that due protection should be given to the accumulator of wealth as in most forms, this accumulation of wealth has been the means of some great •rganisation of labour and in giving eaa* ploymcnt to many, liavo directed those energies collectively to tho best advantage, although it may bo to his own personal advantage, at tho same time has caused some great progress which could not have been attained by individual exertion, but there are certain immutable

laws in existenco which if neglected bring reverses upon the possessor of accumulation, however amassed, as well as to those who depend upon their daily labour for existence, and this is the extraordinary advance in the power of production by tho aid of machinery without an equivalent means of distribution among what is called tho " masses." Distribution. —With increased means ! of production we want more cußtomern, more consumers, or the consumers which we have, placed in a position to absorb a greater amount of those productions, whether eatables, drinkables or wearables to preserve a just equilibrium of commerce. The fact that so many exist without the means of procuring in anything like a reasonable quantity tho ne:eesary comforts of life goes far to prove what are the real causes of commercial depression and its attendant evils fall in the value of securities, land, etc. Some attribute this to over production, but I think it is from the absence of some means by which the many could be made to participate in the advantages of these greater facilities of production, which improved machinery is year by year placing within our reach, which should be so great a blessing, but is somewhat mixed with a curse caused by that existent vein of "diablerie" in our present system of civilisation which condemns a submerged tenth to be insufficiently clothed, fed and housed while others are revelling in superfluities which they cannot possibly use, a veritable dog in the manager system which must and will bring dire punishment sooner or later if persisted in to both capitalist and labourer, Itut may be re* moved by an intelligent and thoughtful democracy, but never by the means of anarchy or revolution. The social problem to be solved,like all things which are good and substantial must gradually and surely be replaced, like a rotten foundation to an insecure building by propping up the existing structure, inch by inch, and foot by foot replacing: with a foundation carried from a good firm basis. The ' structure of our civilisation is not wholly bad, it is good enough for ages, we caunot pull it down, if we were to do so several generations would have to pass before we could arrive at a position a* good, and many dangers, rocks and shoals would lay in our course, but what is being done and will be done in the immediate future to banish abuses in our present system is clearly shown by that attained by the leading municipal bodies in the Old Country, but which would take too much space to describe, shows that democratic intelligence is at least aware, were the faults exist and although the

changes introduced are too slow compatible with the necessities of the times vet it is a great step in advanse to know were the evil exists and that remedies are being applied.

One Man One Vote. —An intelligent study of the history of the past should enable a colony like New Zealand to gnard against the existing anomolies of older countriea. We have for good or evil a constitution in which every man has a vote those who think it t'or evil may rest quite content that it will never be otherwise. lam a firm believer of the (rood tendency of the one man one vote prinj ciple and as it cannot be otherwise it is of the utmost importance that the voting l power is directed in an intelligent and consistent manner. The day is past when legislation on the side of wealth will

preponderate, and if the possessors of accumulation, the wealthy, would study without predjudice the signs of the times, the increase of a greater power in the hands of the many to reap some of the advantages of improvements in machinery would conduce more than anything to produce a normal and steady increase in the value of the securities m which the accumulation may be invested. Nothing

is calculated more to do this than a free [ tariff and direct taxation upon the unim- • proved value of the land, but if the land is mortar aged there should bo a proviso that a deduction should be made from the amount of interest payable to the mortgagee. At tho same time too much importance may be awarded to such a proviso as money will always command a certain value while our present .system of exchange exists, and if the proviso were abs#nt money may be calcu>lated to be worth so ranch less interest, and vice versa, A. prosperous and progressive country can and will always command plenty of eager investors on mortgage at low rates of interest. Mining.—l suppose that coal miners are tho most easier of any for the imposition of protective duties upon coal, but even in their oase it would be suicidal to do so. Thousands of people in tho colony would use coal could they afford to do so, ' and many who do would use more if it were not for the same reason. A com 1 munity generally prosperous would bo more calculated to keep our mines busy. The farmer?, for instance, their labour being so utiremunerative, largely, if not wholly, use wood. I know personally nnmberless instances where it would be far more economical to use coal if their energies were directed profitably upon the land. In every instance, I could venture to say, without exception, the imposition of Custom* duties full most heavily upon tho wago-earners and the farmers, and therefore upon production ; and if this is so, the direct antithesis would have the opposite effect. CO-OPKRATION.—I sup Dose in no colony or State in the whole world is the applicability of the principle of co-operation more practicable than New Zealand. We have still a very large amount of good land held by tho State, although many failures of the application are recorded, there are plenty of instances wh*re it has met with cheering success, the solution of the great social problem rests with the suitable establishment of this principle in states of either old or new formation the intellectual energies of all should be directed to this goal ; bi'tas this question requires intense thought and careful handling, I would with your permission, treat of this matter in some future contribution. Every individual, whether rich or poor, is pecuniarily and socially interested in the successful or otherwise adaptation of this great principle. Nothing is more calculated to preserve the commercial equilibrium, and New Zealand being favoured with so many rich resources, its adaptation should be more easy than where tireafc vested interests exist as in states of older formation. Oan Present Administration'.—lt is patent that in all political parties black sheep will be present, aud although I do

not claim for our present flovernmcnt purity white as driven snow, I can perceive the ger-ns of a policy largely in accordance with this article. Political exigencies may make it necessary to clothe some, of the tendencies of the policy in disguise, for some apparent anomalies certainly exi.st, but 1 would that they were meted a. fair trial and the policy may, and I sincerely hope will open out like a kaleidoscope and show its hidden beauties to our admiring gaze.