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Social Problems. THE UNEARNED INCREMENT. (By Joseph Hyder, General Secretary of the Land Nationalisation Society.) ARTICLE XII. ¡. If one man can command the land upon which others must labour, he can appropriate the pro- duce of their labour as the price of his permission to labour. The fundamental law of nature that her enjoyment bv man slwll be consequent upon his exertion is thus violated. The one receives without producing, the others produce without -e- ceiving. The one is unjustly enriched, the other* are robbed. Henry George ("Progress and -roverty.. ) Mr J. T. Mason, a solicitor, at Christchurch, liew Zealand, states that he invested for a slieut in England L400 in Christchurch properties thirty one years ago. Since then he has remitted in principal and interest £ 69.823, and he has over £ 10,000 worth yet to realise. "Land and Labour." I could show that land for two miles round St. Paul's has increased during the last hundred and fifty years a thousand-fold in value. Thorold Rogers ("Work and Wages. ') < Of late years a great, deal has been said and Written about agricultural depression, and the con quent fall in agricultural rents. That there hav Iwen a great fall in rural land values of recent Vears is Nearly attested by unquestionable sta+is- tics. But often what one landlord has lost ano- ther landlord has gained; so that landlords in the Aggregate have not suffered. On the contrary, it is certain that they have profited. For the un- earned increment of the towns exceeds the unearned decrement of the villages. As a class the land- lords might console themselves with the reflectio j to which the late Duke of Bedford gave utterance, He said. speaking of the reduced rentrclls of his rural confreres, "And I. too. should no doubt he nl a tight place, only that I luckily own a few lodging-houses in Bloomsbury." Similarly, if we look upon the land as a whole. we should find thai the increment on the one part more than balances the decrement on the other. The Duke of Devon shire's Irish estates must be set against the rents °f Eastbourne and Barrow-in-Furness. The Duke of Norfolk's farms in Sussex bring him in less thin formerly; but nevertheless his income becomes rger each year; for does he not own the greate rt of that hive of industry. Sheffield. The T-ords Derby can stand a lot of agricultural depres- !:> s:on while thev own Bury and Bootle. And even Lord Salisbury can afford to add farm to farm ani field to field, as he is doing now in Hertfordshire, "while he still draws a princely revenue from Lon- don rents. These are but a few of the instances where the landed classes own town "lands as we1*, fls country lands. But, it may be urged. they afford small comfort to the men who only possess lands. Of course, they do not. and I am net t specially anxious to give him comfort. For it is certain that of the th-ee partners in the agricultural industry thev have suffered the least. And this I take from the mouth of Mr Chaplin himself, the very High Priest of Landlordism. At the great Agricultural Conference at St. James's Hall he said that the landlords had suffered a loss of 50 per cent of their capital, and the farmers had suffered a loss of 60 per cent of their capital. An I as for the labourers, have they not been driven off t'!{ land bv t1.c hundred laousnid, I'ii losi" thtr employment, their whole capital? Unearned Values. "But. after-all, to understand the problem aright. it must be remembered that the real question is ons not of unearned increment or unearned decremen bUt of urtarned value. We have to consider not -1 the r; or fall in the value of land, but in reality ht :<= the true nature of that value itself. It 's in the nature of all prices or values to rise or fall according to circumstances. But all values o t}>,f\! be divided into two grÜ Masse* valufs and labour values. The former are unearned by 4TIV individual or any class. They are the creation of the whole community. And whether they in- crease or decrease, they are rightfully common pro- Perty. But the latter are quite different. They depend upon individual intelligence and industry and property in them must be vested in their creat- ors. Like Jand rent. ther may increase or ae- crease. But an increase in an earned value does not thereby become an unearned increment And if there be any right of private property in the TI!'<;t value, there is equally a right of property in its increase. It is necessary to make this clear, ber-ause casuis- tical champions of the existing order are interested in confusing the issue by declaring tiwt Sard valut a are not exceptional Their method is like this (1) Land values and labour values are essentially the same. (2) Private property in labour values is per- fectlv equitable. (3) Therefore private property '■r- land values is quallv just. The validity of this reasoning is of course destroyed by the inac- defence of slavery; and for a long time it pre- Tailed. It is only thirty-four years since a Liver- Pool audience refused to hear Henry Ward Beecher for his attack upon the Southern Slave Sbites. But, as President Lincoln once said, "You ern fool all the people all the time." Slave values fool some of the peopleall the time, but you can't foe1 all the people all the time" Slave vaues were then accounted as egitimate private property. What." said the sugar planter "after I have pi-it hard cash for the slaves, and taken all risks, n 1 paid overseers and whippers-in, and paid doctor./ bill*. and erected huts for them. would you deprive me of my lawful property?" "You might as well 8"k for my house, and my horses, and for mv "bank balance. It wou!d be just as. fair." And yet. ;n case after case, Governments have emanc'p. ated slaves without the disastrous consequences at we. e foretold. They have found it possible, as well as equitable, to separate save values from other values. Is there a man in England who "wlould go back to the old system? And so it wiH be with land values. The mills of God grind slowly. But they grind exceeding small. Nations learn their lessons slowly, but gradua.ly the old bad systems are discarded, and better ones are adopted And no lesson is being more surely learnt than this, that the whole of the value of ¡' the land of a country is created by. and should be owned by, the whole community By the term "unearned increment," then, we simply mean an increase in the value of land which is now appro- priated by landlords, with the sanction of laws made by landlords, with the sanction of laws made by landlord Parliaments in the past. The Growth of Rent. I The rate of interest tends .to fall. But the rent of land, taking it in the block, tends to rise. This I is an important difference tha,t must be borne in I mind. Hallam tells us, in his "Europe during the Middle Ages," that arable land in England let in I the thirteenth century for sixpence an acre, and I meadow land for twice or thrice that sum. in the fourteenth century it was constantly obtained for ten years' purchase. But in the fifteenth cen- tury, said Thorold Rogers, it was valued at 20 years purchase. And by the middle of the seven. I teenth century the rent of land had increased I, twenty ifold fcincei the Middle ;Age)e). Arthur Young estimated the rental value of agricultural I England at £16,000,000, or nearly 10s an acre. And. bv-and-bv. the wars, at the end of last cen- tury and up to the battle of Waterloo, sent up the value of land enormously. It is an ill wind that blows nobody- any good. And so the in- comes of the landlords were doubled and trebled by the very same cause that drenched a continent in blood and brought sorrow to millions of homes. The Income Tax Returns. Coming to our own generation, we find the same steady rise in land rents. Owing to the ab- sence of a separated valuation of land, apart from buildings, we can only judge by the income-tax returns. But from them it will be seen that I im correct in saying that the increase in urban rents outbalances the decrease in rural rents, aiter fully allowing for new buildings. Town Rents. Town and Country Rents 1865. Y.69,000,000 9132,000,000 1869. 80,000,000 145,000,000 1074. 93,000,000 160,000,000 1879. 110,000.000 180,000,000 1884. 127,000,000 190,000,000 1787. 133,000,000 197,000,000 Thus there was an aggregate rental increase of 65 million pounds in twenty-two years, which j, certainly not all due to the erection of new build- ings. Supply and Demand. And this is only what might have been fore- seen. If price depends upon supply and demand, and if you have a limited supply for land, and i growing demand for it (by a population which is increasing in both numbers and wealth), it is in- evitable that the rent of land muat go up. So that the question to be solved is, should that incre- ment enrich the idle classes, or should it benefit the whole people? There can be but one answer to such a question. For the present system which enriches the few with unearned wealth leaves many thousands of deserving workers in a state of un- earned poverty. :sI- ->

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