ff ^^^^<:^n^;^^J^^:^:i^^^^:^d^^ Z.N.S. Traa.—No XXIII. JVew Edition, July, igoi. ? -ft A COLONIST'S Plea FOR Land Nationalisation: BY (of Tastnania). Vice-President of the Land Nationalisation Society, Originally Published by the Tasmanian Land Nationalisation Society. With an Introduction by ALFRED R. WALLACE, D.C.L. (Oxon), F.R.S., Fresideyit of the Land Nationalisatior THE LAND NATIONALISATION SOCIETY, 432, WEST STRAND, LONDON. ' ^ PRICE THREEPENCE. (^1 iationalisation. The writer is himself a con- siderable landholder in Tasmania, and it says much for his independence of thought and freedom from prejudice that he has arrived at con- clusions which are practically identical with ours as to the evil results of private property in land, Tasmania is by nature one of the most favoured countries in the world. It possesses a delightful climate free from the extreme heats and long droughts of Australia ; its soil is fertile, its forests are mag- nificent, its streams numerous and overflowing ; all the products of the temperate zone flourish there, while for fruits of every kind it is unsur- passed ; it has excellent roads, with railroads and navigable rivers ; its population is small, and a large proportion of the land still remains uncultivated ; yet instead of universal happiness and well-being we find the inevitable complaint, (as with us,) of trade depressed, capital unemployed, farming unprofitable, and labourerers out of work ! The Author shows us clearly the cause of this state of things, and what is still more important, he explodes one of the commonest fallacies of our opponents — that large farms lead to better cultivation and higher pi eduction than small farms or peasant-holdings. This part of his work is especially valuable, because he shows, as the results of observation and owing to the inevitable working of the law of self-interest, that the large owner or large tenant will often cultivate his land badly, or even leave much of it uncultivated, because he obtains the largest net returns by doing so. The peasant farmer, on the other hand, working a small area by the help of his own family finds his profit in high culture and the maximum of production from the land. By the former system one man gets a large profit but small proportionate produce by employing say ten men on a large area of land ; by the latter system twice that number of men work for themselves on the same area, produce double the amount of crops and stock, and live, all of them, in independence, and in that healthy enjoyment of life which a man obtains when he works freely upon the soil and knows that the whole produce of his labour is his own. These points, and many others of equal interest are so well discussed and illustrated by the Author, that I strongly recommend the study of his paper to all who are interested in the greatest problem of the day — how to abolish pauperism by enabling every working man to obtain some portion of his food directly from his native soil. UNIVERSITY OF A COLONIST'S PLEA FOR LAND NATIONALISATION. The Unearned Increment: Its Nature. 1 ET na begin by taking the unearned increment ' in its . I ^ simplest and clearest form. Suppose I buy Government land at £1 per acre, and quietly holding on while roads are being pushed forward, settlement extending and land values rising, refuse offer after offer till the price reaches £2, when I sell out. Of these £2, one I have acquired by direct purchase; £1 worth of money for £1 worth of land ; but the other I have done nothing to acquire. It is not interest on the purchase-money, for interest is pay- ment for the use of capital, and comes out of the use. Who would expect interest on money tied up in an old rag ? There has been no use here. It is not compensation for risk, for the land could not disappear or deteriorate, and was sure to be wanted. It may be quite right for all that, that I should have it. That is not the point at present. The point at present is simply to explain the term, and to show not only what it directly means, but what it indirectly implies, for it implies a great deal — much more than most people have any idea of. I have neither done anything to create this increase of value nor rendered any service in return for it. If a sovereign were suddenly to drop into my pocket from the sky, it would not be more completely unearned. But it has not only been unearned. If that were all, it would be no great matter. If, like the sovereign, it had dropped from the sky, then, though I might be undeservedly the richer* pobody else would be the poorer. My gain would be a clear 169963 additiou to the sum total of human wealth, out of which others besides myself would in one way or another derive benefit; and, whether or no whatever benefits one without injuring another is fair subject for congratulation. But it has not only been unearned; it has been drawn from the earnings of others. My gain is others' loss. If I sell goods or perform work for another, then no matter how high I may charge for the goods or the work, I am rendering goods for goods, service for service, earnings for earnings. What I ofFer is my labour, or the fruits of it, and as the public are free to get the same goods or services elsewhere if my terms don't suit, or to go without them, the fact of their accepting my terms shows that the thing I offer is, under the circumstances, worth the money. But in the case of this unearned increment on land there is no pretence of any exchange. I offer for it neither labour nor the produce of labour. All I do is to place my hand on a certain portion of the earth's surface, and say, "No one shall use this without paying me for the mere permission to use it." I am rendering no more service in return for this extra pound, either to the purchaser or to society, than if I had acquired exclusive title to the air, and charged people for permission to breathe. And if, instead of selling my land for an additional pound, I let it at a proportionately additional rent the principle would be the same. The increase of value in my land has arisen from the execu- tion of public works and increase of population, causing an increased demand for the land ; in other words, it has arisen from the national progress; and I, so far from aiding in this progress have actually hindered it, by keeping my property locked up and so forcing on intending producers to inferior or less accessible lands ; and by holding so much land back have helped to make land so much scarcer, and, therefore, so much dearer, and so have helped to increase the tribute which industry has to pay to monopoly for the mere privilege of exerting itself. I have employed my land not as an iostrument of production, but as a means of extortion. I have bought it, not to use but to prevent other people from using it without my purchased leave j not to earn anything by it but to obtain the power of demanding the earnings of others. Suppose certain parties, knowing that a road would shortly be made into a particular region, bought from Government the privilege of placing bars across the road (when made) and forbidding anybody to pass until he had paid toll ; toll not (as under the old State tolls) to pay for the maintenance of the road, but toll for the mere permission to pass along the road. Every one would recognise that this toll was pure blackmail and not earnings, and the obstructors mere para-