AUGUST 27, 1903.
THE NEBRASKA INDEPENDENT
The Philosophy of Freedom
An Open Fonts fcr Single Tsxt
PRIVATE OWNERSHIP JUST
CAPITAL THE PROPERTY OF THE PRODUCER
V .
AND INTEREST " LEGITIMATE ARISING FROM THE SPONTAN
EOUS INCREASE OF LIVING GROWTH IN NATURE-A PAGE FROM
THE TEACHINGS OF HENRY GEORGE.
Is it right that individuals should
own capital, or do the true rights of
ownership demand collective control
by the entire people?
Is the return to capital a legitimate
return or is it an unjustifiable appro
bation of the fruits of labor?
These are questions that are press
ing for an answer in the minds of
many intelligent persons today. The
plutocratic economists make no satis
factory replies. The truth, had they
but the courage to proclaim it, con
demns them as thoroughly as do the
misshapen phantasies of socialism.
Unwilling to meet the socialist, argu
ment for argument, from fear of the
greater condemnation of truth, they
endeavor to belittle and stigmatize his
inquiries by cries of "anarchy" and
"robbery." It remains for the econ
omy of Henry George to refute and
expose the fallacies of socialism.
In examining the justice of private
ownership of capital, let us first deter
mine the fundamental rights of own
ership in general, bearing in mind
that capital consists of labor products
lised to create more labor products,
which definition excludes land from
the category.
It is not difficult to locate the origin
cf the recognized possession that en
ables a man to say "this is mine;"
unquestionably, such claims arise from
the right of the producer to the prod
vet. That which a man produces by
his labor is his as against the whole
world and no man has a moral right
to deprive him of it Two men, three
men, a hundred men, a community,
have no more right to confiscate his
earnings than has the one man. The
right of ownership lies in the right of
a man to himself. This is the funda
mental source of all true property
rights. The owner of property must
either have himself produced it, se
cured It by purchase or gift from him
who did produce it or from one who
could trace a clear title from the
original producer.
joyment, by peoples 'widely separated,
of the natural advantages and skill in
various occupations peculiar to each.
To many operations of this class (but
not to all) there also attaches an in
crease similar to that due to the re
production forces of nature. "In one
place, for instance, a given amount of
labor will secure 200 in vegetable food
or 100 in animal food. In another
place these conditions are reversed,
and the same amount of labor will
produce 100 in vegetable food or 200
in animal. In the one place, the rel
ative value of vegetable to animal food
will be as two to one and in the other
as one to two; and supposing equal
amounts of each to be required, the
same amount of labor will in either
place secure 150 of both. But by de
voting labor in the one place to the
trocurement of vegetable food, and in
the other to the procurement of ani
mal food, and exchanging to the
quantity required, the people of each
place will be enabled by the given
amount of labor to procure 200 of
both, less the losses and expenses of
exchange; so that in each place the
produce which is taken from use and
devoted to exchange brings back an
increase." (This is made very plain
by use of charts, in Louis F. Post's
"The Single Tax, ' published by Frank
Vierth, Cedar Rapids. Ia.; 25 cents
postpaid. It is a fact that advocates
of the protective tariff never attempt
to "explain.")
But this natural increase attaches
only to capital engaged in the modes
of growing and exchanging; how then
can interest be justly demanded by
capital of a non-increasing nature,
such as money (which can be readily
exchanged for capital), machinery,
buildings, etc.? Simply this: Since
all forms of wealth are interchangea
ble may be substituted one for an
otherany natural increase attaching
to one class of capital must be aver
r.ged among them all, otherwise capi
tal would tend to engage only in the
Hence, any form of property to mode of affording an increase.
which the owner can show a clear j Thus we see that interest is not
title from the original producer, ad- elone a payment to the lender for the
mits of private ownership. use of a coveted article, but is the re-
Of all the various forms of property, turn . by the borrower of the average
there are but two to which a title of increase which would attach to wealth
such origin cannot be granted, and of that value in exchange, if used for
these are property in land (nature) a given period in those modes afford-
and property in men. ing a natural increase, and which jus-
The private ownership of capital, to tice demands be returned to the own-
which the owner can show a clear er, that he may suffer no loss.
title from the producer, is, measured I But payments from borrowers to
by this standard, perfectly and unde- lender form but a small part of the
niably just returns to capital and, while the pay-
But capital, as one of the factors or ment of normal interest by lessee to
production, receives a return called lessor is in itself perfectly, legitimate,
'interest;" what is the origin of this such payments will largely disappear
re turn, and is it defensible as due rth the necessity for borrowing upon
for value received? Ithe abolition of special privileges, the
In making this inquiry, it is unpen- great bulk of interest i3 even now
live that the payments to capital en-j composed of returns to the merchant,
gaged in production and payments to artisan, manufacturer and farmer em
monopoly and special privilege such ploying his own capital in active pro
as appropriations by owners of rail- duction, and upon the destruction of
road, oil and timber lands, irancnises, monopoly these will form a still great
patent rights, coinage privileges, etc., cr part of interest.
and usury, which is the exaction of This latter portion of interest Is by
the professional money lender from some termed "profits." It must be
the needy producer be kept separate, understood, however, that any excess
Only the former is interest; the lat- cf profits due to monopoly is not in
ter (except in case or tanrr, patent terest When these exorbitant re-
and coinage privileges) is usually rent, turns are not due to artifically created
exactions) by monopolizers or some m onopolies such as those originating:
form of land values. - i in the tariff, patent and coinage laws
There are three modes or wealth they are traceable to some form of
production growing, adapting and ex- land monopoly and then they must be
changing. The first includes suchi
operations as raising cattle, bees,
credited to "rent"
Normal interest (profits),
uninflu
crops, etc., and in all operations of this enced by special privileges, is just
class, nature perrorms a part asiae as legitimate as wages.
from the efforts of labor. For in- For Instance, a certain man has by
. - i . n . .in 111.. m m
stance, ir l turn out a nocx or catue cint or nara work and self-denial, ac
in a grazing country, I win nave on an cumulated two thousand dollars. He
average an Increase at the end of the I determines to enr xge in the dry goods
season. Similarly, there are hundreds business and exchanges his money for
or otner operations in tnis moae, me necessary capital. The ability and
which is necessarily a most extensive labor necessary to conduct so small a
one. Suppose that a loan is made of business may be no greater than that
capital of this class. Let the loan be required from the average clerk yet
a lamb for example, uieany, tne Dor- we lnsuctiveiy feel that this man
rower should return at the end of should receive more than his clerk,
the season, not a lam'j, but a sheep; He must keep on his shelves, from
that is, the original loan plus its nat- day to day, stored up labor (capital)
ural increase. In this case, the return with which he serves his customers as
in excess of the original loan is un- well as with his head and hands, yet,
questionably just according to the socialist, he should
The second mode Includes all those receive no extra compensation for his
operations necessary to the alteration capital, but only the wages of a dry
of the inert matter of the universe In- goods clerk performing the same
to shapes fitted to satisfy the desires mental and manual labor,
of man. The manufacture of chairs, But nature's view coincides with the
tables, machinery, etc, is of this mode, intuitive perceptions of man and by
Obviously no natural increase attaches affording a natural increase in the
to capital of this class. modes of growing and exchanging, She
The third mode embraces all those says, that either this mart must be paid
operations of trade and commerce, a certain amount for keeping capital
which make possible the mutual cn- awaiting the consumer's convenience,
or else men will refuse to sell dry
goods and use their capital in those
mode affording an increase.
That this man, who thus offers his
labor in concrete form, should be re
munerated for that service as well as
for his labor as a dry goods clerk, is
patent to any right-thinking man.
Now all of the natural Increase that
attaches to exchange, cannot be
claimed by the capitalist; neither can
he claim (with nature open to all on
equal terms) all tin wealth produced
by the laborer above that which will
barely suffice to keep him and his
family, as is claimed by the socialist.
While nature has ordained that a man
shall be paid for the use of his stored-
up labor, she has been careiui to see
that the payment shall be no more
than is just
There is. evidently nothing in the in
crease arisine in exchange to deter
mine the amount accruing to capital.
We can only say that it is regulated
bv comDetition. but this is like say
ing that a locomotive moves forward
because its wheels revolve.
The secret, then, lies in the repro
ductive modes.
All wealth obtained from any given
land, in excess of that to be secured
upon the most desirable land open to
free use goes to the land owner in pur-
fhase nrice or Periodical payments.
This is an axiom acknowledged by
t th authorities of economics.
Thus the amount going to capital of
a given value in any branch of indus
try can be no greater than the return
to capital of the same value used in
the reproductive modes on the most
desirable land open to rree occupa
lion
When a considerable amount of cap
ital rwvmi3 rhean land, as In tne
case of a large factory in the coun
try, the return to land is not to be
measured by the amount paid for the
lot, as short sighted socialists - con
tend. This is but a very small rart of
rent Land of every description, the
products "of which enter into the man
ufacturer's business, levies rent upon
Mm through the cost of raw materials.
Let the capitalist manufacturing cot
ton cloth, say, make' more than the
normal rate of interest, and others
will (if there is no monopoly of cot
ton or transportation land) enter the
business; there will toiiow, an in
creased demand for cotton and, since
more wealth can then be obtained from
cotton land, the price of the land
(regulated by the wealth obtained
from it in excess of that to De od
lained ud free land) will go up, with
a corresponding increase in the price
of raw cotton.
To state the law of interest con
cisely: Interest, the return to capital,
is regulated by the natural increase
arisine: from the reproductive forces
of nature, and its average amount will
be that which can be secured in tne
reproductive (growing) modes, on the
best land open to free use.
Thus, the amount which tne owner
of a labor-saving machine may de
mand, is not all the product in excess
of an amount sufficient to afford but a
bare living for his employe, but only a
portion equivalent to what could, on
the average, be obtained by the em
ployment of capital of equal value in
the reproductive modes on the best
free land.
Wages are regulated similarly, and
if only a sum sufficient to afford a
tare subsistence remains for the la-,
borer, it is plain that in the quality of j
the free land and misappropriation of
land values, and not In the unright
eousness of interest, lies the cause of
the trouble. The wages of those la
borers engaged directly on the land
are determined by the wages they can
make "working for themselves" on the
best free land. The wages of all oth
er classes are based on these.
"But" says the socialist." if the
state assumes control of production,
thi3 return will go to the consumer
in reduced prices; society will be the
capitalist and asks no Interest"
But this is a return that the con
sumer owes capital, just as truly as
he owes a return to labor. In fact, it
will be seen that capital being but
stored up labor, interest is but a form
of wages anyhow. To evade its pay
ment we must deny the natural righ-
o? the individual to engage in produc-
t'en, and substitute for nature's just
and infallible laws, corruptible and
fallible officials with power to direct
pre duction and regulate wages.
Referendum or no referendum, such
a breachbf natural rights would re
sult In a reign of despotism and cor
ruption to which no American com
munity would submit It may be ob
jected, that interest goes today large
y to persons who can show no clear
title to the capital. That Is true. But
the way to correct the evil is not to
commit a greater one, but to destroy
the monopolies that give to him who
does not produce.
When it becomes Impossible for a
man to obtain wealth without render-
ng its equivalent In his labor, wheth
er stored up or not, then will Interest
go, as it should go, to producers. When
the laborer and capitalist (not monop
clist) obtain their full reward, it will
Le im possible for any man to accumu-v
late the stupendous fortunes of today,
and the laborer and capitalist will be, 1
as they should be, embodied In the
same man. v
Concentrated capital will be owned
jointly by the producers, and then we'
will have the true co-operation not
an enforced, governmentally con
trolled organization, but a voluntary )
association of the workers. "'
Applying our conclusions to fcocial-;
ism, it is seen to be an unjust scheme ,
of confiscation and restriction, arising
from a failure to properly differentiate '
land and capital; ignoring the rights)
of man and shaped in defiance of im
mutable natural laws, it can have but'
cne destination industrial despotism.',
KUEDEUIC MONTGOMERY. I
Clinton, Mass.
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HARRY E. MOORES,
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Because You are Pops
Last year the state tax for Loup
county amounted to $657.97. This year
it amounts to $1,430.54. This, as can
be readily seen, is more than doubled
and why it should be thus is a ques
tion asked by many. The levy is ar
ranged by the state board of equaliza
tion, and it might not be out of place
to here remind our readers that there
is nothing In a name. In Garfield
county the state levy this year is 5
mills and in Louj county it is 7 mills.
This, in our judgment, is the result of
the election of "Our Man Mickey" by
the railroads. Garfield county has a
railroad and it would have to pay Its
share of the taxes in that county, but
here In Loup county there are no rail
roads and the whole burden falls on
the dear people and that Is why we'
got 1V mills to pay more than Garfield
county. Just now the taxpayers are
beginning to feel the effects of Bart-'
leyism and the assessment has been
raised throughout the state, but our
enthusiasm and "vote 'er straight"
propensities were no greater than In
other counties and It Is certainly a
great injustice that we should be held
up for more than our share. R. S.
Scofield, in News, Taylor, Neb.