The justice of the Single Tax is beyond all question of refutation. What about its efficiency for the cure of social ills? Here, I think, is where we are widest apart. You say, "the unearned increment is already taken for public use under our present system of taxation." If by "unearned increment" you mean what I have defined as land value (and I think you do) your statement is the wildest and most astounding I ever heard or read from a sane man making an argument. Is it possible you have not learned that where all the land value is taken in taxation there can be no selling value? And where is the land to-day with a community settled upon it that has not selling value? If land value is already absorbed by taxation, what is it that goes to maintain landlordism? Perhaps you'll contend that landlordism doesn't exist. What value is it that a man pays for when he buys an unimproved lot in the heart of a city? What is it that the boomer booms and the land speculator gambles on when he adds acre to acre and lot to lot without any intention of productive use? What, if not the community value which he expects to attach to his land as a result of increase of population? And what advantage to him as a speculator would this community value be if, as you claim, it is now being absorbed in taxation and should continue to be so absorbed as fast as it arises? Do landlords in cities and towns retain for themselves only the rent of buildings and hand over to the government the full amount of their ground rents as tax? I know an old eye-sore of a building in this city not worth $150, whose occupant pays $100 a month rent. Do you seriously believe that all of this $1,200 a year which does not go to the city and state in taxes is rent on the old $150 rat-warren? Why, the thing is too childish for serious discussion; and to have discussed it with you without having been driven to it by yourself, I should have regarded as in the nature of a slight on your intelligence. If what you claim as a fact were true, we would have the Single Tax in full swing now and would be fretting ourselves to fiddle-strings, not to bring it about, but to get rid of it for its evil fruit.
As to whether the Single Tax, in full force, would provide enough revenue for municipal, county, state and federal governments, we, Single Taxers, are not greatly concerned. We have our own opinions on that question and can give better reasons for them than our opponents can give for theirs. But the question is not essential to our argument. What we hold to is that until land values fully taxed prove inadequate for the expenses of government economically administered, not one cent should be levied on labor products, no matter in whose possession found. This, however, belongs to the fiscal side of our reform. Of infinitely more importance is the social side. Here our end and aim is to secure to all the sons of Adam an equal right to life, liberty and pursuit of happiness by securing to them an equal right in the bounties of nature—and passing strange it certainly is that men who would not dream of denying this right in the abstract are ever ready to anathematize it in the concrete.
With the Single Tax in force, that is, with the plain behest of nature observed and respected, no man will hold land out of use when, whether he uses it or not, he must pay to the community its annual value for the privilege of monopolizing it. No man will hold land for a rise in community value when that value is taken from him for the use of the community as fast as it arises. No man will need to mortgage his home and the earnings of his most vigorous years to a boomer or speculator for the privilege of living on the earth for there will be no boomer or speculator to sell him the privilege, and the privilege itself will have ceased to be such and become an indefeasible right.
"He (Mr. George) is a well-intentioned man who confidently believes he can make the poverty-stricken millions prosperous by revoking the taxes of the rich and increasing the burthens of the poor." Fie, fie! What is to be gained by such transparent, palpable misrepresentation as this? Do you verily believe that land values, which Mr. George proposes to tax, are mainly in possession of the poor? Did you not see—of course you did—a diagrammatic exhibit made not long ago by the New York Herald of the holdings of twenty New York real estate owners? Let me quote a passage from an article in the New York Journal on this exhibit:
"The reason 170 families own half of Manhattan Island, as stated in the Herald, and that 1,800,000 out of the two million residents of Manhattan Island, until very recently, had no interest whatever, except as renters, in this superb property, is because, until the last few years, it required a fortune to own the smallest separate parcel of this great estate. Only the rich could participate in its ownership, its income, its profits."
Now is it your view that all this is but clumsy lying, and that in reality it is the poor people of New York as of other large cities that own the bulk of its land values? Again you say, "He would equalize the conditions of Dives and Lazarus by removing the tax from the palace of the one and laying it upon the potato patch of the other." This statement is much more artistic than the preceding one. It wears a jaunty semblance of truth. Indeed it is true in a sense as far as it goes. But it is vague and incomplete, and for that reason as deceptive and misleading as half truths always are. With your permission I will fill it out in parenthesis and convert it into an honest whole truth: "He would equalize the conditions of (both freedom and justice for) Dives and Lazarus by removing the tax from the palace of the one (and from the labor products of the other) and laying it upon (the community value of the land occupied by the palace and) the potato patch of the other." Now, if the potato patches of the poor occupy, as a rule, more valuable land than the palaces of the rich, there might be some apparent ground for your contention. It would be only apparent, however, for in such a case the potato patch would be as much out of place as a public school on a wharf front. To devote highly valuable land to ordinary potato culture would be about as sensible as to print the Sunday edition of the Galveston News on costly linen paper. One of the virtues of the Single Tax is its potency to prevent such stupid waste of opportunity. Your way of stating the case, however, has this virtue that it is a welcome variation of the old wearisome chestnut about the poor widow owning a valuable lot, etc.
You believe Progress and Poverty inspired by the plutocracy, "250,000 of whom own 80 per cent. of the taxable wealth of the country, while the land is largely in possession of the great middle class." Passing over the source of the inspiration, you have come pretty close to the truth here! Unfortunately for you, however, the statement has no value in the argument. Single Taxers do not need to deny that the great middle class largely own the land, but they do claim, and you won't have the hardihood to deny it, that the plutocracy own the vast bulk of the land values. You will perceive the distinction when you reflect that the land is nearly all out in the country, while the land values are nearly all in the cities and towns. To tax land according to area is the bug-a-boo you are putting up your guards to; to tax it according to community value is what we invite you to smash if you can. You "cannot understand how a man possessed of common sense could fail to see that removing taxation from the class of property chiefly in the hands of the rich and placing it altogether on property chiefly in the hands of the comparatively poor, could fail to benefit the millionaire at the expense of the working man." Neither can I, if you tax it according to quantity, but that is not the Single Tax and it is time you knew it. Let me tell you now something that I can't understand—why a man who has the means and the ability to strike giant blows for the cause of the blind, stupid, plundered humanity prefers to waste his time, his talents, his opportunities making himself a straw man and, with that silly-looking thing for antagonist, belaboring all about him like a bull in a china shop. You sincerest well-wishers, of whom I claim to be one, earnestly hope you will soon change your tactics.
You ask some practical questions which it may be well to answer: "How will you prevent the Standard Oil Company forcing weaker concerns to the wall by the simple expedient of selling below cost of production?" The Standard Oil trust is maintained (1) by monopoly of oil lands; (2) by monopoly of pipe lines; (3) by collusion with railroads. The Single Tax and its corollaries would absolutely destroy each of these advantages; (1) by throwing unused oil lands open to all on equal terms; (2) by government ownership or complete control of pipe lines to all distributing points, such lines being open for use to all oil producers on equal terms; (3) by exactly analogous treatment of railroads. With the three-fold monopoly of oil lands, pipe line, and railroad abolished, the Standard Oil trust would find no wall against which to crush weaker concerns. As to the trust, we hope that the abolishment of the thieves' compact, i.e. the protective tariff, will make the trusts sick unto death. Absolute free trade, a necessary concomitant of the Single Tax, will leave 99 per cent. of the trusts stranded. If any survive it will not be the fault of the Single Tax. Be it remembered that the evils which the Single Tax is guaranteed to cure are, primarily, land monopoly, and, secondarily, all the other monopolies based upon it; as those of the coal, iron and lumber trust, the Standard Oil trust, etc.
"With coal fields leased to the operators by Uncle Sam, how would you prevent Hanna organizing a pool, limiting production, raising prices and reducing wages?" Coal fields are included in the economic term, land. When unused land is free for occupancy, unused coal fields will also be free. If Mark sought to limit production by shutting down his mines, one of two things would happen. Either somebody else would start in to mine coal, or Mark's tax would be raised till the wisdom of either letting go or resuming would dawn on his fat wits. Unless he owned or controlled the coal fields he could not limit production, raise prices, or cut down wages. "How will you prevent the Standard Oil company forcing weaker concerns to the wall by the simple expedient of selling below cost of production?" We wouldn't prevent them. But if they afterwards tried to recoup their losses by raising prices as they do now, we might get after them with a tax commensurate with their asinine generosity, and keep after them till other concerns got well on their feet. If they became too refractory, what's to prevent the government from taking hold itself and working the oil wells for the benefit of the whole people? Remember the government is theoretically the people's servant, and it could be actually so if the people only had a little intelligence and moral courage.
You very needlessly tell your Ft. Hamilton friend that land is the primal source of all wealth; that it does not produce wealth, but simply affords man an opportunity to produce it; you forgot to add—provided the landlord doesn't prevent him. You say in another place, "Figure it as you will, adjust it as you may, a tax is a fine on industry and will so remain until you get blood from turnips," etc. This very objection in protean form is continually being raised by a class of shallow-thinking men with whom the editor of the ICONOCLAST should not be proud to herd. "What difference docs it make," they say, "whether I pay rent to the government or to a landlord when I've got to pay it anyhow? And what difference does it make whether taxes are levied on my land or my improvements, or both, so long as I've got to pay them with the products of my labor?"