SINGLETAX AND ITS CLEVELAND CHAMPIONS Letters and Answers Published in the Catholic^Pefiletin, Cleveland, Ohio, May, 1915 to May, 1916. WHERE WE DISAGREE: "Does the Singletax Club of Cleveland, Ohio, hold the doctrine of Henry George, that private ownership in land is *a bold, bare, enormous wrong?' " ANSWER given by O. K. Dorn, Treasurer of the Single- tax Club: "Yes, we believe that private ownership in land is a bold, bare, enormous wrong." "Does the Singletax Club of Cleveland, Ohio, as regards the question of ownership in land, side with Henry George or with Pope Leo XIII?" ANSWER of Mr. Dorn — "We emphatically side with Hen- ry George in his controversy with Pope Leo XIII." (See pages 12-^) PREFACE On May 28, 1915, the Catholic Bulletin republished a summary of an ad- dress given by the Rev. F. S. Betten, S. J., of St. Ignatius College, Cleveland, at the Convention of the Catholic Union of Ohio (D. R. K. Staatsverband), at Celina, in 1913. The slngletaxers of Cleveland evidently felt alarmed, because the:' immediately began to bombard The Bulletin office with letters. For more than a year nearly every number of The Catholic Bulletin reprinted one of these singletax communications with a suitable reply. Thus a consider- able nft*Bber of the so-called arguments for singletax and of its various de- structive features were discussed. Masters of Political .and Social Economy consider this the broadest and most interesting debate on the subject. Following suggestidiis from many quarters, we have gathered this cor- respondence in the pre^'^nt pamphlet. Frequently, however, we do not re- produce the entire lettei*. but only those sections which call for an answer. We even omit one or another letter entirely, because the answer^ is too evi- dently contained in other sections of the pamphlet. (The originals are kept on file in our office.) For the convenience of our readers we generally place y the ans^'er immediately after the paragraph to which it belongs, f A detailed index will enhance the usefulness of this pamphlet for methodi- cal study. — Editor Catholic Bulletin. (Copyright 1916 by L. G. Wey) J <^ ^ S Oi doz, ^ :i. 3. 0 2 INDEX REFERENCE IS TO PAGES ABSORPTION of landvalues by individuals 15, 20, 21 CATHOLICS. Can they be singletaxers? 15 CLEVELAND SINGLETAX CLUB'S Creed 13 DISPARITIES IN WEALTH 15 DOG TAX compared with singletax 16 EQUALITY OF MEN very limited 7, 8, 30 EXTORTION result of singletax 12 GREGORY, ST., "a singletaxer," against LEO XIII 18, 21 HORSTMAN, BISHOP, "a singletaxer" 32 .lUBILEE YEAR in Mosaic code. 10 LAND SPECULATION possible under singletax 11, 14, 17, 25; importance of land speculation 26; land companies own whole counties . 14 LANDVALUES increased in Cleveland 19; owners of them 20; site-value. .25 LEO XIII Encyclical on the condition of the working classes 4; Henry George's Open Letter to him 7, 15, 16, 17, 18, 27 MOSES "a singletaxer" ...10 OCCUPANCY 8 OWNERSHIP, in what it does not consist 4; original title 5; not neces- sarily bas'ed on labor 8; never recognized by the things "owned 5: many things cannot be owned 8; land ownership in the Mosaic code. .10 PEW RENT and single tax 25 '»OLICE and fire protection, expenses for 20 POPE. The pope's authority in matters of taxation 17; never against sound reason 15, 17 PUBLIC AUTHORITY'S right to restrict property 14, 16 PUBLIC OPINION v/s the popes 22 PUBLIC SQUARE lots as example 8 SITE VALUE 25 SINGLETAX explained 4; On whom it will fall or will not fall most heavily 6; effect on workingmen 7; on farmers 6, 29; on residents 24; on industrials 24; is a remedy against all ills 14, 31; how to be introduced 7, 16 SKYSCRAPERS 6, 12 SOCIAL QUESTION in the first place religious 17, 18 TAXES. Title of public authority to demand them 3; "too many taxes" 17; first requisite in taxes is justice 17; inposed according to what is likely to happen 19; failure of taxpayers to receive their money's worth 20 TEN COMMANDMENTS not given by the pope 22 TITLES of landed property to be set aside by Henry George 7, 11 VALUE. Areas of same value to pay same tax amount 11, 12 SINGLETAX. (Summary of the adcJress by F. s. Betten S. J.) Henry George, an American economist, who died in New York, in 1897, is the chief advx>cate of singletax, so much so that he is often called its "in- ventor." He maintained that the soil can never become the property of any in- dividual. The community (state or municipality) alone can own land, and this privilege is so exclusive that the state cannot part with it in favor of any individual or private corporation. If any person, he says, ever claimed land as his own and demanded that this claim should be respected by others, he pcted as a usurper, and what he called his right was not better than the right of a pickpocket to a stolen watch. His very words are: "Private pro- perty in land is a bold, bare enormous wrong" — (Progres's and Poverty, VII, 3.) Consequently, if justice were to take its course, the state would have to dislodge all the "so-called owners," without indemnifying them, because their estates never belonged to them. The best way to do this, it occurs to him, is to force them to pay the, full amount of rent for what they are pleased to call their own into the public treasury in the shape of taxes. He proposes to abolish all other taxes. Thus we have one tax, the tax on land values cnly, a SINGLETAX, Now landed property of individuals is no robbery. The denial of private ownership in land is clearly against the doctrine taught by Pope Leo XIII in his encyclical "On the Condition of the Working Classes," of May 15, 1891. The Pope takes for an -instance a workingman who saves his money and finally succeeds in acquiring a house and a little garden. Then he continues*, "the land, in such case, is only his wages under another form; and, conse- quently, a workingman's little estate thus purchased should be as completely •at his full disposal as are the wages he receives for liis'^labor. But it is pre- cisely In such power of disposal that ownership obtains, w^hether the pro- perty consists of land or chattels." This leaves no doubt at all. As" little power as the state has over the hard- earned wages of the worker, so little power has it over the land now in his possession. According to Henry George that workingman's estate does not belong to the workingman at all; it remains the inalienable property of the civil com- munity; and while he leaves to the laborer the full disposal of his wages, the lot or garden which is bought with them always remain at the full disposal of the state, no matter what claim the laborer imagines to have to them. We prefer to follow Pope Leo as our guide. This sfettles the question for us, if there was a question at all. But let us see what kind of arguments Henry George offers for his revolutionary state- ment. Sound reasoning, of course, can never lead to such absurdities. Henry George's argument is, in short, this: The ^oil cannot be produced by human labor; but only such things as are produced by human labor can be the object of private ownership; there- fore, the soil cannot be the object of private ownership. (The question is only about the original title; he readily grants, that those titles are just, by which an. article rightfully owned is transferred to somebody else, as dona- tion or purchase or inheritance). The pen, he s'ays, with which I write is mine, because it was rightfully owned by the manufacturer or the laborer, who transferred their right suc- cessively to the wholesale and retail dealer, and finally to me. Everything, therefore, depends on the proof for his assertion, that nothing can become the property of man except by human labor. Henry George bases his proof on a fundamental wrong conception of the relation of the owner to the thing owned. He thinks that this relation is something physical, something like string or rope tying the proprietor to the property. Such a tie, he imagines, is effected by man's labor. There is no such tie produced by labor between the farmer and his farm, therefore the far- 4 mer cannot own the farm; but it is different with the carpenter and the table he made, or the gunsmith and the gun. Now, as a matter of fact, the relation of ownership does not consist in any- thing physical. There is not physical tie between me and my watch. The relation of ownership cannot be perceiyed by any of the five senses, but only by the intellect. If the absence of such a physical tie is the s^gn, that there is no owner- ship, Henry George will have to deny all ownership. There Is no more con- necton between the maker and the product than between the landowner and his estate. Much less than a physical connection is there a physical action and reac- tion between the owner and the thing he owns. After a watchmaker has finished the watch or the gunsmith his rifle, there is no more action or reac- tion between the two than between the thing and a thief who steals it. Labor indeed produces physical changes in the things offered by nature; but once these changes are executed, action and reaction ceases, and the producer is as much a stranger to the thing as if he had never touched it. It is not surprising that from such material notions of the right of property Henry Geqrge arrived at very strange consequences. He opens his attack by exclaiming: "What other right exists from which the right to the exclusive possession of anything can be derived save the right to the right of man to himself?" There is indeed no other right from which private ownership can be de- rived. But this very right works against Henry George. Just the right of man himself gives him the privilege to settle where he pleases, without being dislodged by another comer, supposing only that the place is not occupied by anybody else. Just the right to himself demands that he have the power to choose a place where he may lay down his head without fear, a place where he may return the following night, and if he so decides, as often as he pleases, without being obliged to seek a new shelter every night. But this is exactly the right of private ownership in land. "How can man," Henry George continues, "in any other way — save by la- bor act upon or affect material things' or other men?" Here we have the logical sequence of his wrong supposition. The * right of property does not consist in affecting or acting upon material tilings. Does Mr. George perhaps even think that the right of property consists in act- ing upon other men? Does he mean to say that the right of ownership con- sists in this that I am strong enough to keep thieves and robbers aw-ay from my property? A poor right of ownership! It would be the same as the right which the pickpocket has when he prevents me from getting back my stolen watch, that is, it would be no right at all, but simply the power of the stronger. "Nature," says Henry George, "acknowledges no ownership or control in men save as the result of exertion." Did it really escape Henry George that ownership is never recognized by any of the things owned, whether they be supplied or made by man? Nature, he^ays, does' not discriminate among men. "Birds will not come to be shot by the proprietor of the soil any quicker than they will come to be shot by the poacher." No, but let him, in his own example, substitute the gun for the soil. Does the gun acknowledge any ownership? It surely does not. Whether it hits or misses the bird has nothing to do with the question of ownership at all: it depends only and exclusively on the ability of the person who handles it, and on its own perfection. These instances will sjifiice to show how hazy and utterly incorrect Henry George's ideas of ownership are and how lamentably deficient his argumenta- tion. If he proves anything, it is that there is no ownership at all. Such demonstrations are enough for him to declare all landowners robbers, and to call upon the people to embark on a policy equivalent to wholesale confisca- tion. Henry George signally failed to prove the injustice of private owner- ship in land. Consequently the measure he proposes, singletax, is unjust. It is a flagrant violation of rights that are as general and important as they are .5 sacred. What can mankind, what can a state expect of the adoption of such a measure but ruin and destruction. We may, with a high degree of certainty, try to forecast some of the harm it is liable to nork. Henry George is very enthusiastic about the grand effect of his smgie- tax. "if I have worked harder and built myself a good house, while you have been contented to live in a hovel, the tax-gatherer now comes annually to m-ake me pay a penatly for my energy and industry, by taxing me more than you." But taxes are no tines. If I have bnilt myself a house, I have a much greater Interest in the existence of public order and safety than he who calls no house his own, and it matters nothing whether this is on account of his carelessness or misfortune. It is therefore*right that I, having a greater in- terest in the maintenance of order and safety, should pay a greater amount into the treasury of that institution which alone is able to grant the protection I stand in need of. Taxes enable the state to grant to all members of the community all the protection, facilities, accommodations, etc., which we comprise in the words public order. It is therefore but natural that those should pay higher taxes who derive the greatest advantage from the existence of this public order, and who appeal more frequently to the assistance of the public authority. Taking this as a principle, It is easy to see the injtistice which is connected with Henry George's scheme of taxation. Accordng to him only the unimproved land value is taxed. An acre favorably situated in a city is as highly taxed as another acre equally valuabe, no matter whether there are buildings on it or not; the factory that stands on it or the skyscraper or the cottage is not assessed. It makes no difference either whether it contains a coal mine or not, whether It is sandy or the most desirable wheat land. It is the site only that according to him creates the value. See letter II on site value. Now suppose a skyscraper with its four or five thousand people or more. Alongside of it live a few families in modest houses which cover the same area as the skyscraper. The few families have to pay the same amount into the public treasury as the owner of , the sl^vsoraper; and yet the latter requires for the safety of his revenue ten and more times the amount of police and fire protection, and derives twenty times the profit from the existence of pub- lic order. Is this not a "bold, bare, enormous wrong?" It is well to remember what Henry George has to say about the effect on the present system of taxation. "The present taxes work like a penalty on enterprise and industry. If a man has built a ship we make him pay for his temerity, as though he had done an injury to the state; if a railroad be opened, down comes tbe tax col- lector upon it, as though it were a nuisance; If a manufactory be erected, we levy upon It an annual sum which would go far towards making a handsome profit." — (Progress and Poverty, Book IX, Chapter 1.) This, therefore, is the purpose for which singletax is advocated: . .The factory owners, the ship builders and navigation companies, the railroad magnates, oil kings and coal barons are to make still more handsome profits than they have been doing heretofore. The millions they have so far been paying to assist in defraying the expenses of government will be turned into their own coffers to widen further the breach between the very rich and the toilers. Among those injured there are especially two classes, the farmers and the workingmen. How is the FARMER to fare? Under the system of singletax gthose will have to pay the largest amount of taxes, who need the largest extent of ground. Now, a manufacturing company can make gigantic profit on an area of twenty acres; a farmer who owns only twenty acres is a poor man. Per- haps such a modest farm of twenty acres immediately joins the premises' of a factory that covers the same area; if put up for sale in an unimproved con- dition both pieces of immovable property would bring the same price, be- cause they are in the same locality; consequently Henry George will write 6 the same amount on both tax bills. But what a diiference in reality between the two tax bills. The company may not as much as notice the expense while it would be oppressive for its neighbor. And which of the two would require more tire and police protection? which will make more use of the law courts? for whom will even the state militia be called out to protect his property in the case of disturbance?; for whom will warships be detailed to escort his floating riches in foreign waters? And yet in the singletax country both ^parties pay an equal amount of taxes. Is not singletax "a bold, bare enormous v/rong?" As to the WORKINGMAN, it should suffice to remember that aingleUix provides no way at all for forcings the capitalist to part with a fraction of liis vastly increased gain in favor of his workers. It is he that is to have the whole benefit of singletax, and he can do with his money what he pleases. Of course, he MAY share it honestly with the laborer who works in his mills or lives in his skyscraper, but nobody can force him. What capitalism will do, it has shown in the course of history, and this history forebodes very evil days for the workingman whom singletax has placed at the mercy of the millionaire. And where is our workingman going to live? In a skyscraper, of course. He has to pay the same tax for his little lot, whether there is a one-story cottage upon it or a ten-story skyscraper. So what is more natural than ten workingmen should band together, and, instead of putting their dwellings side by side, place one on top of the other. Or worse still, some enterprising capi- talist will erect a ten-story tenement house and the offer of low rent will not only amply reward his own industry and thrift but will also prove too tempt- ing for the workingman to be rejected. The ideal of the laborer's home is the one-family house with at least some diminutive share of the earth's sur- face around it. This ideal, difficult enough in our days, will be an absolute impossibility under the sway of the singletaxers. The singletax country is the paradise of the skyscraper. It is idle talk of the advocates of Henry George who claim that the greatest amount of the new tax will fall on the big cities. We simply ask, "^Is it to fall on the capitalists, the representatives of industry and enterprise?" Certainly not, because Henry George glories in the contention that he will be the liber- ator of industry and enterprise. On whom, then, is: the burden of taxation to fall? On the farmers and workmen, and on all those who are unable to make the gigantic profits of the capitalists. It is they that will have to go into their pockets in order to relieve the moneyed class. (See Letter num- ber 10.) NOTE, We have considered singletax as it was* proposed by its origi- nator himself, in its plain, unmasked "singleness," because this is the only way to understand it and to become aware of its destructive character. The master's disciples commonly do not propose it in this simple shape but couple it with other measures, some of which are quite harmless, nay recommend- able. This is' done because people "are not ready to grasp the whole truth of the single tax." (See article, "Can a Catholic" page 15) But the aim is to gradually remove the taxes from personal property, imports, etc., and increase "the tax on land values until no other tax is left." HENRY GEORGE vs. LEO XIII. Henry George was fully convinced of the correctness of his teachings. In matters economic he thought himsetf to be a kind of pope. So when Leo XIII., in 1892, issued his great letter on the condition of labor, he considered it his duty to come out with a counter-proclamation. He speaks authoritatively, like one who sits upon a much higher throne than that of the fisherman. He wants "to lay before your Holiness the grounds of our belief, and to set forth some consideration that you have unfortunately overlooked." He does not ask for clearer instruction or solution of doubts: no, the great American knowg that he is right, and his intention is to convert the ignorant pope. The good man really imagined that his open letter made a deep impression on Leo XIII., and that it attained its purpose. He begins by giving an outline of his creed. "This world is the creation of God. The men brought into it for the brief period of t^eir earthly lives are the equal creatures of His bounty, the equal subjects of His provident care. . . . With the need for labor and the power to labor He has also given to man the material for labor. This material is land — man physically being a land animal, who can live only on and from land, and can use other elements, such as air, sunshine and water, only by the use of land. Being the equai creatures of the Creator, equally entitled under His providence to live their lives and satisfy their needs, men are equally entitled to the use of l^md. And any adjustment that denies this equal use of land is morally wrong." One of the most obvious errors in these quotations is the assertion that all men are equally entitled under Divine providence to live their lives and satisfy their needs. How could a man who reads the Bible make such a statement? A very peculiar providence governed the fate of David, whom God raised from a shepherd boy to a king. Is everybody entitled to the same degree of Divine care? The whole Jewish nation y^s the object of a most wonderful provi- dence for tv/enty centuries. No other nation has been favored to such a de- gree, and neither the Jews nor any other nation is entitled to it. It was a free gift of God, who may be more liberal toward some and less liberal to- ward others, without being unjust to any one. We all know men, good, ex- cellent Christians, whom God has blessed with temporal possessions, while others, equally good, live from hand to mouth during all their lives. Why is this so? Has Divine Providence neglected its duty? If all were equally en- titled to live their Uves and satisfy their needs, why this inequality? It may be said that in certain points indeed all men are equal, for in- stance, as far as they have a right to such an amount of Divine care as is re- quired for them to save their souls ; without promising them at least so much of assistance God neither would nor could create any human beings. Every man also needs the right of acquiring private property and not to be hindered in any unlawful way: a right which may be said to be equal in all the inhabi- tants of the globe. But to demand that God must grant to every man equally good chances to practice this right is little short of blasphemy. It is therefore not true that all men are entitled to an equ^l share in the bounties of God. There is to be a diversity in temporal possessions, which will be productive of countles's acts of the most beautiful virtues and will contribute very essentially to the final state of mankind, that of eternal bliss in heaven. This present world of ours is no end in itself. It is the labor day of toil and trouble, a period of transition. God could never have destined mankind for an eternal sojourn In a world like this valley of tears. God created the world and threw it open to the members of the human race, to be occupied by them, provided they would respect things already in the possession of others; provided also, and this we have to consider a little more closely, that the things in question are oceupiable at all. This is a point entirely overlooked by Henry George. Air, or water in the ocean, or sunshine, cannot become property, because none of these things can be occupied, as it is impossible to mark them off as occupied or keep them under control. They are therefore no objects of ownership. Air and sunshine may, indeed, be owned in some way; namely, as far as they affect land; the wine-growers along the Rhine distinguish well between the sunny and the shady sides of their hills; and it is the air and the water of the ocean which make property in the sea- side resorts so desirable. But in themselves, neither air nor sunshine can be owned, because neither can be marked off as occupied. If water, however, is drawn in a bucket or pumped into the city reser- voir, and if the parties concerned care to make use of their right, it may be rightfully called property, because it is sufficiently marked as occupied. Now listen to Henry George: "If a man," he tells the Pope, "takes a fish from the ocean, he acquires a right of property in that fish. . . . But he cannot obtain a similar right of property in the ocean, so that he may sell it or give it or forbid others to use it." Why does the fish become the prop- erty of the man? "Because it is the product of his labor." No, indeed not. The man did not make the fish; if he did, he would frequently make better ones than those he catches. The fish becomes the man's because th^ man oc- cupied the fish. Before it was caught, the fish was nobody's property, so the man made use of his natural right to occupy things that so far belonged to nobody. If the ocean does not become his property, it is simply because the ocean is not subject to occupancy. Be it rem'arked in passing, that the state as the guardian of public welfare has the right to limit the occupiabilty of unowned objects. Hence we have our fishery laws for the protection of the fish in our lakes and rivers, our game laws, to secure the propagation of useful or otherwise desirable game. Such laws, provided they are not oppressive, are just and must be observed. "If he sets up a windmill he acquires a right of property in the things such use of wind enables him to produce. But he cannot claim a right of property in the wind itself, so that he may sell it or forbid others to use it." We need not formulate the answer, which is evident from the foregoing ex- planations. But these two instances, the fish and the windmill, the ocean and the wind, are only the stepping stones to arrive at the main conclusion. As with ocean and air, so it is with the soil. "If he cultivate grain, he acquires a right of property in the grain his labor brings forth. But he cannot obtain a similar right of property in the sun which ripened it or the soil on which, it grew." Of course, the sun which ripened the grain cannot become the prop- erty of any one, but why not the soil? If I can make a fish my excluisve property simply by seizing it, why not the soil on which I raise the grain for my bread? The fish remains my property not only as long as I hold it in my hand, or am broiling or eating it, but as long as it can be recognized as mine, or at least as somebody's property. Why cannot a piece of soil remain mine after once taking possession of it, provided only I can mark it as my property? And why should I be obliged to raise my grain every year in another place? Here follows what Henry George thinks to be proof for his assertion: "For these things — namely sunshine, air, the ocean and the ^oil — are the con- tinuing gifts of God to all generations of men, which all may use but none may claim as his alone." It is difficult to see how these lines can prove anything. Either he means to say: These things are continuing in existence, but things continuing in existence cannot be owned by individuals; therefore these things cannot be owned by individuals. If he means this, we ask, why can things continuing in existence not be owned by individuals? There are houses in Europe, which have continued in existence for centuries and have been owned all the time by individuals. There are swords, clocks, rings and pieces of furniture, a hundred, two hundred an five hundred years old, and constantly m the possession of individuals. Therefore the fact that these things continue in existence is no reas'on v/hy thoy should not be owned by individuals. Moreover, sunshine and air do not even remain the same; the sunshine consists of a constant motion produced and ever renewed by the sun in the ether; and the air is always' being changed by chemical influences, especally that of the plants. Consequently the material continuity has nothing to do with the question whether a thing can or cannot be subject to ownership. Or he wishes to lay stress on the fact that these things' are constantly kept in existence by God as His gifts, and means to say that things kept in ex- istence by God as Hi^ gifts cannot be owned by private persons. But is that not the case with the iron which has been mined and is preserved for sale or has been worked into a pen or plough. Does that iron need less of divine influence in order not to 4rop out of existence than a house lot or any section of the sea? Or i^ perhaps this his idea: Air, sunshine and the soil are for the use of all generations; but things that are for the use of all generations cannot be owned by individuals; therefore thesp things cannot be owned by indivi- duals. The statement implied by him, that things destined for the use of all generations cannot be owned by individuals is ^mply absurd. The houses, swords and furniture mentioned above were destined for the use of genera- 9 tions by their first builders or makers; but this fact has not interfered with the quiet possession of any of the successive individual owners, nor did proprietorship of the latter disturb in any way the use made of them by successive or former possessors. So it is with the landed property; Ood has always taken care that one generation died when the next made its appearance. ^ Henry George may finally think that the last words are a real argu- ment: "Things which all may use, but none may claim as his own." But they would prove that hardly anything can be owned. Certainly not the fish of the ocean, because they evidently belong to the things which all may use. Every fisherman knows very well that anybody may catch any fish. All may catch the fish but only one will catch it; just as in unoccupied ter- ritory, everyone MAY occupy and settle in any place, but every place WILL be occupied by one only. Thus an accurate inspection of this passage only discloses that Henry George had very confused ideas about the origin of property. If sunshine, air and ocean cannot be owned, it is for quite different reasons, which do not exist in the case of land. Henry George did not understand these reasons. Had he studied those who before him treated this question, Protestants or Catholics, he could not have written down huch hazy and superficial state- ments. There is no trace in them of a real demonstration. His fundamental doctrine, that land cannot be held in exclusive ownership, however con- fidently asserted remains unproven. He proves it neither in his main work, "Progress and Poverty," nor in the "Open Letter" to the Pope, and if he could have proved it at all ho would have done so in these publications, where he makes an attenlpt at it. With this tumbles down that doctrine which has made him especially famous, the theory of singletax, i. e., one tax to be levied on land only and to replace all the taxes now in vogue. LETTER OF MR. CARSON The Catholic Bulletin: Cleveland, May 18, 1915. To the Editor: Rev. Father Betten says Henry George maintains "that the soil can never become the property of anyone." Well so does the Mosaic code. I invite the reverend gentleman to refresh his memory by reading up in the Bible on the land laws established by Moses. Mr. Carson evidently has heard s'omebody talking about the legislation by which Moses enjoined the Jubilee Year. Every fiftieth year was called by this name. After the land of Palestine was conquered, it was distributed among the Israelites, and each man and each family received a certain por- tion» which was probably not small, if in need, he might sell it, but in the next Jubilee Year the sold portion was' to revert to him; and if he himself had acquired land by purchase from another man, he also had to return i\ to the original owner. How long this legislation (which changed every sale into a lease for the rest of the fifty years) has been in force, it is impossible to say. But it is easy to see that this legislation far from making private own- ership in land impossible, on the contrary made the land inalienable, un- salable, ^rave it over in the strongest way possible to its private owner. Not even the state — there was little of what we now call "state" — had the right to take it away. According to Moses, it was' to remain the private property of the family of its first owner until dooms'day; and it made no difference whether he used it or not. This strange system, adapted to very peculiar conditions, of course crushed land speculation, but it crushed als'o enterprise and industry. But was it not the correct system and ought it to be reintroduced? If it were. Our Lord would have reintroduced it; He was not afraid of making a hold stand against anything that was wrong and against anybody who acted wrongly; He restored matrimony to its original purity and exposed • the 10 avarice of the Scribes and Pharisees; if private ownership in land were what Henry George claims it to be, a bold, bare, enormous wrong, Jesus of Naza- reth would have denounced it as such. Our Lord everywhere supposes the justice of private ownership of land; probably He Himself was, after the death of St. Joseph, before the law of the land the owner of some little part of the earth which was the work of His hands. (If He was, Henry 'George would have declared Him a robber.) The Bible is a big book and it might be very difficult for Mr. Carson, to discover the places where the legislation of Moses i^ given. He will find all these places quoted in an article of the Catholic Encyclopedia, headed "Jubi- lee, Year of." It will do him a word of good to read this whole article. Or let him go to the French Dictionaire de la Bible, (by Vigouroux), article "Jubilaire Annee," or the German "Kirchenlexicon," article "JobeTjahr," or to some similar article in the "Jewish Encyclopedia" which he can consult in the public library. Any of these sources will furnish reliable informaton. But thi^ information will be far different from Henry George's and Mr. Car- son's dreams. Henr>- George does insist upon private possession of land by those who want to use it. lie would not set aside existing- titles. Is that so? Let'^ see. Henry George says in Progress and Poverty (London, Kegan Paul, 1883 page 242) : "Consider for a moment the utter absurdity of the titles by which we permit to be gravely passed from John Doe to Richard Doe the right to exclusively possess the earth, giving absolute dominion agains't all others." This sentence — to say nothing of the gross exaggeration contained in it — shows clearly what he thinks of "existing titles." Let him reafd Questions 30 ^.nd 31 in the Singletax Catechism, the con- tents of which we reproduce in the last paragraph of Fr. Betten's article. Henry George proposes to introduce singletax gradually, "because the peo- ple are not ready to grasp the whole truth of the singletax," but the aim is* to absorb all land values, that is, "to set aside all existing titles." It would make it easier to gret a home, or a site for business purposes. It would make every man a landowner in the only senae in which an individual should be a landowner. If we admit the, morality of absolute private ownership of the land of Ohio say by 100,000 men^ then these owners would have the moral right to dispose of their titles to one man. We would then have all of the people of the state liv- ing" here at the mercy of one individual. Mr, Carson's contention that "it would make it easier to get a home, or a site for business purposes" is sufficiently refuted in the second part of the article. (See Pages 6 and 7) In his last paragraph he introduces the supposition that all the land owners of the state of Ohio might get it into their head to dispose of their titles in favor of one man. But is that not just as much possible under single^ tax? All the square miles now held by land companies will then be on the market, and who will be the most able to buy but the factory owners, railroad magnates, etc.? It is not only possible but probable, that some huge combination will in the course of time absorb all the usable land, because they can best pay the taxes. The "people" will then have to be satisfied with the rocks or swamps. — At any rate, if we believe the pope, if we believe the faith of the ages, the abolition of private property in land is "a bold bare enormous wrong," which can never lead to sound conditions. LETTER OF MR. O. K. DORN, TREASURER OF THE CLEVELAND SINGLETAX CLUB PART I. Editor Catholic Bulletin: Dear Sir: "In his address on the singletax. Rev. F. S. Betten makes so many mistakes, according' to the singletaxer's view, that it is impossible to reply t«» 11 Jill of them in a short communication. But let me call attention to one, and then ask Fatlier Betten a few questions. "He states: 'Under the system of singletax those will have to pay the largest amount of taxes who need the largest extent of ground." •'Yet in another part of his address Father Betten shows he understands clearly that we propose to tax according to value rather than according to area. "One corner lot on the public square in Cleveland can be sold at any time at tlie rate of $10,000,000 an acre. "Where is there any farm land at such a price?" This is the first part of Mr. Dora's letter. He makes so many mistakes, according to the common sense man's view, that it is impossible to reply to all of them in one issue. The rest of his letter, if he wishes, will be taken up later. In stating that "under the system of singletax those will have to pay the largest amount of taxes, who need the largest extent of ground," P. Bet- ten has in view two or several acres of the same value, or, which is the same situated in the same neighborhood. This is' clear to every one who reads the article with a minimum amount of attention. It is made still clearer by the fact that, as Mr. Dorn rightly observes, "F. Betten understands very well, that we propose to tax according to value rather than according to area." Nowhere in the article is there a comparison made between one area lying in a congested city district and another one in the open country. The article always expresses unmistakably that one city area is compared with another one next to it, and one area in the country with another one bordering on it. An instance is given in the article of a little farm of twenty acres and a factory of one or two stories immediately adjoining the farm. Mr. Dom may read it up and convince himself. Here is another instance. Let us suppose a man owns the whole front on the Public Square In Cleveland between Superior and Euclid avenues and two hundred feet deep. He divides this i»to two equal part^ and sells both at the same price. It makes no difference, how many millions he gets for each,, as long as the price is equal. The new oivner of the Superior section, whom we shall call Mr. Superior erects a substantial but moderate building of some three or four stories: Mr. Euclid prefers a skyscraper of twenty stories. While the skyscraper is building several ac- cidents happen, and the victims have to be taken care of by public charity an extra police force is called to prevent the disturbance^ of an impending strike. After it is finished the police is kept busy protecting its numerous stores and offices; the courts nearly constantly have some law affair to ^t- tle between the owner and his hundreds of tenants; the fire deparments must ever be on the alert to prevent damage by fire. Meanwhile Mr. Superior does not cause one-fourth the expense to the city and county and state. And yet the singletaxer will write the same amount on both tax bills. Will Mr. Dorn deny that this is utterly unjust? Sound reason demands, and we hope Mr. O. K. Dorn will O. 'K. this, that everyone contribute to the support of public order in proportion to the ad- vantage which he derives from its existence. True, no taxing system will ever be devised which will fully come up to this ideal; but it i^ the goal to- wards which those who plan the tax laws ought to direct their endeavors, singletax certainly does not have this ideal in view; the scheme proposed by its advocates violates justice and equity by its very nature. "But let your Mr. Superior sell his property to ssuch as are willing to pay the tax," indeed that is one of the purposes of singletaxers ; they want to force people out of their property. But it is quite possible that our Mr. Superior in spite of being forced to pay for the expenses caused by his neighbor is making a moderate profit and consequently is not inclined to sell. Does that make the tax on his property justifiable? Not at all. He Ooes not receive his money's worth; he is forced to pay an immense sum to the civil authority and is given relative^'' very little in return. Acts of ex- tortion can be committed not only against the poor but ^ also against the well- to-do; in the case of the factory and the farmer mentioned in the article it is an extortion committed against a poor farmer; but it is extortion in ou/ ca^e as well. This glaring injustice is one of the most prominent features of the system of singletax. 12 QUESTIONS PUT TO MR. DORN BY THE CATHOLIC BULLETIN In the second part ot his letter, Mr, Dcrn supposes that the singletax is a universal remedy against all the evils in our present taxing methods and all the social and political ills of our days. We do not imagine there is such a panacea; at any rate, F. Betten has shown us that least of all the single- tax can lay claim to have such wonderful qualities. We shall however give an answer to Mr. Dorn's questions on condition that he answers the follow- ing counter-que^ions : 1. Does the Singletax Club of Cleveland, Ohio, unreservedly hold the doctrine of Henry George that private ownership in land "is a bold, bare, enormous wrong?" Does it consequently consider the singletax only as a means to dispossess all the landowners', great and small, poor and rich, of what they now call their rightful property? 2. If the Single Tax Club advocates taxes other than the tax on land pure and simple, does it do so with a view of by and by eliminating all other taxes? The answer we expect to both these questions is Yes or No, and nothing else. Only a plain unqualified answer will serve to clear the atmosphere. Note — If Mr. Dorn wishes, he may replace the first question by this: Does the Singletax Club of Cleveland, as regards the question of ownership in land, side with Henry George or with Pope Leo XIII? TliE CREED OF THE CLEVELAND SINGLETAX CLUB Mr. Dorn's Answer: Answer to Question No. 1 — "Yes, we believe that private ownership in land is a bold, bare, enormous wrong." Answer to Question IVo. 2. — "We emphatically side with Henrj- George in his controversy with Pope Leo XIII." Answers from a letter addressed to The Catholic Bulletin, August 3, 1915. While Mr. Dorn says he has no personal authority to commit the club he is! confident that he makes no mistake in stating its position. Since that date we have no word neither from the club nor from any of its members con- tradicting Mr. Dorn's position. This tlierefore is the Creed of the Singletax Club of Cleveland, Ohio. During the debate we shortly called attention to the evident fact, that Catholics cannot be singletaxers. The fundamental doctrine of Henry Georgianism is diametrically opposed to the Christian dogma of the right- fulness of private ownership in land, and its chief apostle by an open letter to Pope Leo XIII removed all doubt. It remained, possible, however, that the singletaxers of Cleveland did not subscribe to all the tenets propounded by Henry George, and especially would decline all opposition to the head of the Catholic Church. We must thank Mr. Dorn for having cleared away our doubts. His answers are clear and unmistakable. If we conclude that the .Singletax Club of Cleveland i§ an anti-Catholic, nay an anti- Christian insti- tution, what can Mr. Dorn say to the contrary? We do not believe that every member would be prepared personally to swear to Mr. Dorn's statements. Many, perhaps' the greater number never thought so far. They may believe that the Singletax Club simply stands for a general endeavor to improve the methods of taxation. They are now undeceived. The Cleveland Singletax Club stands for the unqualified de- nial of an article of the faith. We have still to mention one part of this letter: As to your second question: We do not advocate the levying- of any other taxes than the tax upon the un- improved value of land. We realize that, as a matter of practical propaganda, the removal of taxes upon labor products must be gradual and we support any step in that direction. This is an equally clear answer. The "Singletax Club is true to the doctines of. the Singletax cathechism. See pp. three and four, 13 4 Mr. Dorn concludes his letter by saying, "We invite you to print Henry George's reply to the Pope in your columns." Indeed not. Sir. Our columns are too precious for that. To show what kind of literature that Open Letter represents, we have printed the short re- view of its first pages. It is surprising how. much confusion there is in the author's first and leading ideas. For us Catholics, the matter is finished, if Rome has spoken. After a de- cision of such an official character as the encyclical of Leo Xlil the denial of the right of private ownership in land is no longer a debatable point. It is abs^olutely wrong, as wrong as the statement that twice two make five. There is no other side to thisf question any more, which it might be worth while for us to study. The following passage is necessary to understand our answer to the second part of his letter. In reply to the first part of my letter of July 29 you ask whether in my opinion singrletax would remedy all of the ills listed, in reply to which I will say that singrletax in itself will not, but without sing:lctax all efforts to correct these ills will be futile or to say the least, the efforts will be only partly suc- cessful. MR. DORN'S LETTER: PART II. As Mri Dorn ha^ answered our counter-questions, we continue in our re- ply to his letter: 1. "As Father Betten condemns the single tax policj-, will he kindly state what remedy he proposes for unemployment, congestion of population, and the tend- ency of wages to the minimum? As to the first paragraph we shall let our readers judge whether it does not really imply that singletax will remedy all the evils enumerated with so much emphasis. A question like this has no sense unless Mr. Dorn wants to say: F. Betten is unable to mention such a remedy; but we have it, we have the only one, and it is singletax. In his second letter he informs us, all he meant to say was, that singletax in itself is no such remedy, but that without it all other efforts will be fruitless. This is indeed surprisingly modest in comparison with the triumphant outcry of the above paragraph. Singletax, therefore (according to Mr. Dorn) is only one of the many things which are required to do away with the ills of our social and economic life. Let us re- member this, when Singletaxers again use such sweeping exclamations. But after toning down his question in this way, after stating expressly that the social question cannot be solved by one single, all-powerful remedy with what right does he expect F. Betten to propose such a wonderful anti- dote, which all by itself will prove effective against unemployment, congestion of population and the tendency of wages to a minimum? 2. "Does he really think that it is good public policy to let one corporation like Miller and Lux of California own two whole counties? No, we do not think it is good policy to let one corporation own two whole counties. But we are just as strongly convinced, that the introduction of singletax would be a thousand times worse.^ — Moreover, neither Mr. Dorn nor any other singletaxer has erer proyed, that under singletax such a condition of things would be impossible. The fact that whole counties are owned by one concern does not increase the value of the land ; consequently the tax on it, even according to singletax methods, may be trifling; its aggregate certainly cannot be higher, but is probably lower than if the counties were owned by ten thousand farmers. Even under singletax, land can still be bought and sold and held. Why, therefore is it not possible that one company hold the land of the two counties and pay the taxes according to the singletax method, until it finds an opportunity to dispose of the land with profit? We wishxall the singletaxers to consider this possibility well, because it destroys many of their dreams. 3. "If not, where would he draw the line in restricting private property in land? Unqnestionably the public authority has the right of keeping every kind of property within such limits as the public welfare really requires. Public authority can by various means prevent the accumulation of wealth in a few hands ; it may for instance tax fortunes not only according to the enor- 14 mous profits accruing to them from the existence of Public Order, but also in proportion to an evident harm caused to the interests of the community. It may even proceed to the simple confiscation of all that is above a certain amount, should this drastic means be needed to keep colossal fortunes from becoming a curse. However, if the singletaxers do not deliberately close their eyes, they must see that the largest landowners are not as s^jch the richest i>€oi)le ; it is not by owning muCh land that the wealth of the nation threatens to become more and more the property of the few. Land companies make much money but their heyday is naturally shorty and if it were not, that would not change the following fact, which every child knows, except, perhaps the singletax'^rs : It is the owners of factories, railroads, mines, steamshi]) lines — all of whom draw their revenues from relatively small areas — that swell the ^ranks of the multi-millionaires. It is just those very same men whom Henry George iij his fatherly kindness proposes to untax. 4. "How does Father Betten account for the disparities in wealth?" For the disparity in wealth we account chiefly by the fact that God did not create all men equal but gave to one better health, to another greater ♦ strength of body, to a third a keener mind, to a fourth a stronger will and that He permits everybody to use for his own benefit the advantage he thus enjoys over others. 5. "And will he tell how he can justify, on moral grounds, private absorption of land values?" In exactly the same way in which we justify the private absorption of any values. If a railroad station is built in a village the value of land goes up; but so does the value of all other property, the value of cattle and milk and hay. The new value of these things is absorbed privately without the slightest scruple by the individual farmers. It is for the same reason that the increas- ed value of the land which is brought about by the same causes — if we may speak of causes in this case — is absorbed by the individual owners. CAN A CATHOLIC BE A SINGLE TAXER? Singletaxeris occasionally maintain that "there are not a few good Catholics who are singletaxers and who know, that there is nothing in singletax philo- sophy contrary to Catholic Doctrine." A short discussion and answer on this point is, therefore, evidently timely and useful. The fundamental doctrine of singletax is: Private property in land is a bold, bare, enormous wrong; nobobdy has ever been the rightful owner of a single square foot of land; only the civil authority, state or municipality, can really own land; all the so-called land owners are robbers. This is the way Henry George states his theory. It is the chief principle of singletax philosophy. That such a sweeping indictment of all land owners runs counter to the teaching of the Catholic Church certainly needs no proof for anybody who has read his bible history and knows the Ten Command- ments. To make assurance doubly sure Henry George after the appearance of Leo XIII's great encyclical 'On the Conditions of the Working Classes,' in which the right of private ownership in land is .expressly vindicated, thought it his duty to publish a manifesto, an open answer to the pope, to let the whole world know, that the views expressed in the papal- document were in absolute disagreement with his own. A Henry George man, therefore, oannot be called a good Catholic; on the contrary, he, like Henry George puts himself in opposition to the infallible head of the Church and denies a clearly pronounced Catholic doctrine. On such monstrous foundation, then, Henry George bases his proposal to levy all taxes exclusively on land, in order to change in this way all the land owners into tenants of the civil community. Consequently all those who de- fend this tax, the "Singletax," on the s'ame grounds as he, namely, by main- taining that private ownership in land is unlawful and that all the lan-d ownr ers are robbers, commit a serious fault against our faith. But there are some Catholics who never have heard of the real doctrine of Henry George. They think they haVe to do only with another taxing sys- 1.*; tea\ which at lirst sight seems to appeal to them. The reasons by which its advocates try to support it (the true reason being very often omitted) appar- ently touch on no question of religion. The leading spirits of the Singletax mo^ment intentionally create confusion in the minds of those T^hora they fpropose to ^conyert.'' (See p. 7) They make them believe that singletax stands for a general endeavor to improve the methods of ta^xation. Whenever some new and practical tax is introduced in any country, they proclaim it as a singletax measure and triumphantly announce to the' world V new progres's of their ideas. The inheritance tax, a very natural mode of forcing people to contribute to the support of public order, is put under the head of singletax. State revenue levied on franchises and monopolies i^ an- other hobby of theirs. Completely their own, they ima^ne, is the so-called unearned increment tax, which is laid, In various ways, on the amount by which a piece of property increases in value on account of the increase of the local .population or the building of a factory or railroad Nation; this tax, which recommends itself to many well-informed persons, has nothing at all to do with Henry George's absurd and un-Christian theory. This confusion, brought on by professional singletaxers because they know well that the public is not ripe for ^ngletax pure and simple, accounts for the vagueness with which many well-meaning people view a measure which if properly understood would only call forth their reprobation. Such -ll-informed persons. Catholic or not. are to be sincerely pitied on account of their lack of instruction, and because they involuntarily contribute to the spread of an erroneous and very pernicious doctrine. LETTER OF W. B. LUTTON, ATTORNEY Editor Catholic Bulletin: Sir — 1 — The courts have repeatedly upheld the legal and moral right of the ^orvennment to destroy or restrict the us© of private property in whole or in part by means of taxation. We gladly grant this. The public authority has such a right even in a higher degree than Mr. Lutton seems to think of. The public authority can exDropriate individuals, i. e., condemn their property, on condition only, that a reasonable indemnification be paid. 2 — Thus a tax is imposed to limit the number of dogs. If made heavy enough and enforced, such a tax would, unquestionably, lead to a general .slaughter of the canine family. This gives us a chance to discuss shortly the fallacy of the famous dog" , tax amendment. It seems to be a favorite weapon of the singletaxers. Three years ago it figured conspicuously in a campaign pamphlet of theirs in the state of Missouri. Now a tax on dogs does not decrease the number of dogs. If it did, a tax on rats would decrease the number of rat^ ^d a tax on rabbits would diminish the number of these rodents. If a dog tax had any influence on the increase or decrease of these animals, the Turks would have resorted to it long ago, to do away with the pest of their hordes of dogs in the streets of Constantinople. Did any dog ever bother his head about a tax which the city authority gravely put on him? Indeed not. But the owners do. If a dog tax be intro- duced, there will certainly be fewer owners after it has been working for some time than there were before. The dog tax will surely decrease the number of people who care to own dogs. It does not necessarily, however, » as Mr. Lutton supposes, lead to a slaughter of thcs>e animals. The dog owners may prefer simply to chase them into the street. Of course the city may establish the honorable position of a dog catcher, but that is an extra measure, not in itself contained in the impost on dogs. For the exchequer of city or state it makes no difference whether there are ten thousand or two hundred thov.s^and dogs on its domain. All the collectors of this tax care for is the proprietors of dogs. - The singletaxers imagine, that it is s^fe to tax the land because it can- not be diminished. But if the dog tax diminishes the proprietors of dogs, what will be the effect of the land tax? It will diminish the number of pro- 16 prietors of land; there will be fewer people under singletax than there are now who care to own land and pay the taxes for it. They forget still another point The dog tax is never expected to bring the entire revenue which the public authority needs; but the singletax on land owners ^will. Suppose all tne expenses of the city administration were levied on t^iose who own dogs, according to the value of the latter, who woul^ care to keep one? Under singletax the land owners will have to de- fray, all by themselves, this large sum; who then will care to be a land- owner? This is what the dog tax argument amounts to. 3 — We have so many taxes, it is difficult to keep track of them. In the con- stitution and laws of Ohio, there must be#at least fifteen taxes provided for, differing in theory, and some of them extremely injurious. The machinery of assessment and collection is so complicated; the evasions, delinquencies and law suits are so numerous, that the cost of the system is a burden so great as to condemn our method of raising public revenue. Now, supposing our law makers become disgusted with this absurdly illo- gical and expensive tax system, and should decide to have an inexpensive and simple system. What better could be done than to adopt the single tax? Certainly the machinery of assessment and collection of taxes is com- plicated. If our nation were still in a more or less barbarous condition we should despair of it. But anyhow, a simplification would be desirable. We propose a very simple tax, Mr. Lutton. Let us lay all the expens'es of our sixth city upon the owners of brick houses. Nothing simpler for the asses- sors, nothing simpler for the collectors. You hestitate, Mr. Lutton? Why? Certainly because you see that s'uch a method would be too evidently unjust. That is exactly what we want to bring out. The very first question concerning any mode of raising money for public expences is not whether it is easy and simple, but whether it is just. In the long series of articles which have been running in the "Catholic Bulletin" we trust we hav. His Holiness may say "Thou shalt not steal," and we acceiit it because it is in accoixl with our average moral perceptions. But as to what constitutes private property (ethically) our views are undergoing a slow change. It is not His Holiness who says, "thou shalt not steal" but one that is a little higher. If Mr. Holmes is a Christian he has learned by heart the Ten Commandments; of God and knows very well that they did not originate from the Pope of the Roman Catholic Church. It is not our fault, if his words make the impression that he clid not learn them any too well. And how does he know that our views are undergoing a change as* to what con- stitutes private property? Such changes exist only in the imagination of those whose minds reside in misty or stonn-tossed brains. (But for good- ness sake, Mr. Holmes, if you want to make a vain attempt at giving us a proof for your assertion, please do not come a third time with St. Gregory.) 4. And church leaders of all denominations usually lag behind public opinion in this respect. And do you mean to say that the pope is to look to the phantom god- dess of Public Opinion to find out what is right? And do you mean to say that we Catholics have to sit in judgment over the pope and see whether he still agrees with what you are pleased to call Public Opinion? Do you mean to insult us in our sacred conviction of the character of the Papacy? Do you mean to insinuate that it v/ould be better for u^ to run after your home-made public opinion than to follow the Head of our Church? If you do not mean it. why do you use such language? Are you unable to say what you wish to say? In that case don't be too proud but take a good night school course in English. 5. It was so In the anti-slavery struggle, most of the religious leaders at i.iie time looking upon the slaves as rightful private property. Yours truly, HOWARD M. HOLMES. To reproach the Church of the first ages with not having condemned slavery in principle, and with having tolerated it in fact, is to blame it for not having let loose a frightful revolution, in which, perhaps, all civiliza- tion would have perished with Rora?n society. Religious equality was the negation of slaverv as it was practiced by pagan society. The Church made the enfranchisement of the slave an act of disinterested charity. Tfee very 22 chair of St. Peter was occupied by men who had been slaves? — Pius in the second century, Callistus in the third. Catholic Encyclopedia, Vol. XIV, pp. 36-39 for statements and references to prove that, if not the only, at least the principal cause of the disappearance of slavery at all times, is Chiisti- anity and Catholicity acting through the authority of its' teaching and the in- fluence of its charity. li. 'Sot lor iiul>Iication -unless j-ou need it for a filler.H. M. H. We need it for a filler. We never have articles that attract any attention from anybody. Especially the single taxers completely disregard our modest publication. This "filler" again shows to our readers what kind of thinkers and talkers the singletaxers are. We also congratulate the Cleveland Single- tax Club for having such an able secretary. If he cannot catch the mean- ing of two little plainly printed paragraphs which he may read and re- read as often as he likes, what a mess will he make of it when he has to report the oral proceedings of a meeting which he hears only once. Very likely Mr. Holmes feared that his argumentation contained in the "filler" will bring him into hot w^ater and therefore he added the postscript hoping thereby to get in his little wisdom and escape publication. We have no time for personal correspondence and Mr. Holmes must be prepared to have his contentions either published or ignored altogether. A THIRD LETTER OF MR. HOLMES, SECRETARY OF THE CLEVELAND SINGLETAX CLUB Editor Catholic Bulletin: ^ "You cannot agree with us tliat absorption of site values (oi,- what political economists call rent) is wrong. Very well; let us see if we cannot agree on ine fiscal side of the single tax. • No, indeed, we cannot agree with you on this point. But above all we cannot agree with you if you say that private ownership in land is a bold, bare, enormous wrong or that all men are entitled to an equal share in the bounties of God. Even leaving aside the religious question altogether, we have already shown that we cannot agree with you in taxing a skyscraper of twenty stories not more than a one-story house in the same place. This is the fiscal side of tlie question. But we shall do you another favor. In his letter Mr. Holmes enumerates s'ome ten points concerning taxing methods and invites us to discuss them with him. One or another of them has already been mentioned on other occasions. Others treat of imperfec- tions of our present tax system, \Vhich we readily grant to exist. But this does no mean that we wish to adopt singletax. (see pagelo). Let us make a bee line for the happy days' whai singletax will be introduced, and observe how things must then present themselves. Let us' suppose for a moment that the State of Ohio has introduced single- tax. This means that the land owners alone defray all the expenses of the governor and all officials, etc. To forestall useless questions of the single- taxers, we state expressly, that the tax will he adjusted according to tlio iiite value of the soil. An acre in the vicinity of a population center will have to pay proportionately more than one in the open country. But let the reader mark well that only the site value counts. That is to say. a swampy or rocky spot will pay as much in taxes as another equally large area which is in the same neighborhood or at the same distance from the center of the population. According to the principles of the singletaxers it is the population only and exclusively that "makes the value." A water- fall which offers thousands of horse power, the fact that coal or oil is hidden under the surface, may not be considered at all. A gravel field and the best wheat land, provided they are in the same locality, pay th^ same tax. This is only to show to the singletaxers that we understand their theory. 23 Three Classes of Land Owners As soon as singletax is introduced those who own land will be the only taxpayers. Now there are evidently three class'es of land owners. There are first those who use the land they own merely for private purposes. T^ey possess a residence with perhaps a moderate lawn in front or a back yani or kitchen garden in the rear. But they do not think ofMnaking money bv this real estate. Such land owners we s'hall call residents. A second class are the farmers. They work their soil to obtain a revenue. Buildings and similar improvements are means to this end. They need a proportionately large area to have a moderate income. The third class are the indnstrials. They use the soil simply as the necessary ground for their enterprises. They erect factories, establish mines and steamship lines, build railroads, etc. Here belong also the owners' of hotels, apartment houses and office buildings and the whole clasfe of any kind of landlords. In many cases a person may be in several of these classes. Consequently the singletax may affect him variously. But that cannot alter our deductions. The three clasfees, residents, farmers and industrials are clearly distin- guishable. Under the present system these three classes pay a certain amount of taxes. Nor would it be difficult to find the aggregate of what each class is now^ contributing to the expenses of the state. But whatever this amount may be, one thing i^ sure: The introduction of singletax will bring a very considerable reduction to the class of the industrials. The sum they now pay into the public treasury will be enormously diminished. This is the chief purpose Henry George had in view when devising his tax. The present taxes he s^ys work like penalty on enterprise and industr?-. "If I have saved while you wasted. I am mulct while you are exempt. If a man build a ship we make him pay for his temerity, as though he had done an injury to the state; if a railroad be opened, down comes the tax col- lector upon it, as though it were a nuisance; if a manufactory be erected, we levy upon it an annual sum which would go far towards making a hand- some profit." (Progress and Poverty, Book IX, Chapter from which this is taken is in the same strain.) To the railroad and steamship companies, therefore, the oil kings, the owners of skyscrai)ers and coal mines will be donated a s^im, which will go far towards making a handsome profit. And who will pay this difference? Who is going to make up for the "handsome profit'* which the industrials will not have to contribute any longer to the public expenses? Only two more classed of people are taxable under singletax, namely, the residents and the farmers. The taxes of residents and farmers, therefore will increase enormously. They may fight it out between themselves who is to pay the larger share. Let not the singletaxers come and say the farmer^ have their land in the country, where the site value is low. The indnstrials as a class whether their establishments are in the heart of cities or in the backyroods will pay mnch less than now; the difference must come from others which neces^tates that the taxes of those "others" be raised no matter where they live. There is no other way. If, however, the singletaxers maintain that as a matter of fact the farmers will pay less than they pay now, ^o much the worse for the residents; the burden will fall on them alone. But factory and mine owners, railroads and skyscrapers will not pay the taxes they are now paying, if Henry George's theory is carried out. It is really surprising that considerations as plain and obvious as these evidently never came to the minds of the singletaxers. To us they makp It sure that the singletax even viewed from the merely fiscal or financial standpoint even without any reference to religion, is utterlv unjust and can have only disastrous effects. LETTER OF MR. MATT HAUS Dear Sir: — 1. My attention has been called to an article on single tax in your issue of Oct. 1st, in which you say that land speculators would not be put out of busi- ness by the single tax, for "If he could pay the tax, why could he not hold a lot in the heart of a growing city until its price has become tenfold?" My answer to that is, no one could afford to hold land out of use if the Gevern- ment were annually collecting from him all the land was worth for use. If he kept it until its value had been increased tenfold then the tax would be tenfold also. Thus all incentive to hold land for speculation would be taken away. No one would care to hold land unless he wanted it to live upon or to do business upon. The selling price of land is its untaxed value. As fast as the tax is in- creased, the selling value falls. If the annual tax were made equal to tlfe rental value, the selling value would disappear. Here is a lot, say worth $1,000. At 5 per cent the rental value would be $50 a year. Suppose the Government taxes the lot 5 per cent or $50.00 a year. No one would be fool enough to pay anything for the lot as a purchase price. Let US/ suppose the influx of population and improvements which caused a doubling of land values without any increase in taxation. Then the owner of this lot could sell for ^1,000. But if the Government imposed a tax of $100.00, there could be no such purchase price obtained. The use of the lot would be still worth 5 per cent of the value--$2,00(J — but no one except a crazy man would pay anything for it to the owner when he knew that the Government would collect the rental each year as the value went up due to increased population, location, ^tc. Mr. Haus* argument is this. The value of a lot is equal to a sum of money which if put on interest would bring the amount now paid for the rent of the lot (not the rent of lot and house but the lot alone). As soon as the value rises, on account of the increase in population or for similar exterior reasons, the singletax government will increase the tax accordingly. There- fore, unless one has an actual use for a lot he will not buy or hold it but will rather leave his money in the bank. Sounds very well, doesn't it? But it is based on a supposition which is* not always true. It supposes that the actual value of a piece of property can never be greater than the sum which would bring- the amount of the rent or tax as interest. This may be correct in most cases, at least under the singletax regime. But take a growing residence district. Somepne owns a complex of four nice lots, just enough for an apartment house. He knows that sooner or later one will be built in this neighborhood. He has sure Information that there is an energetic and enterprising company which already looks for suitable places. Now remember two things: First, that the tax on such a plot, single- tax i mean, is not higher than if it were improved, that it is and remains as high and low as the tax on the surrounding improved lots, and that the prospect of a much higher sale at some future time cannot induce the ap- praisers to increase the tax. Remember second, that the apartment house will bring an enormously larger rent than four residences would. Because the four residences would not only have fewer stories, but could never cover the ground so completely as this one establishment. The money therefore, which is paid for these four lots will bear an incomparably higher interest than the money paid for any four of the house lots in the same neighbor- hood. In other words, the owner of them will be acting like a good business man if he for several years pays the taxes in the expectation of a much higher price in the future— and all this under the singletax system. Land speculation, though of course greatly hampered, is not an absolute impos- sibility where Henry George rules. We have taken here a residence district. If in our article of October 1, we accidentally referred to "the heart of a growing city," we did TiOt lay stress on this circumstance. We meant to emphasize only that even under singletax some kind of land speculation will remain pos'sible. But after all why should not similar circumstances even in the heart of a city, especially a growing city, prevail on a shrewd business man to engage in similar speculations. To repeat. Mr. Haus' argument if^ based on the wrong supposition that under no condition can the value of property for some particular purpose be larger than the sum \\ hich brings as interest the amount of rent which •25 other properties in the same neighborhood will fetch. There can be a vast difference which the tax assessors will never be able to reach. AVe have taken as example an apartment house, an instance of the housing industry. Our case will become still better if we pass over to the other industries, as factories, etc. All these branches of human enter- prise can make great profits on proportionately small areas. Is it not quite possible that a man should keep a number of house lots idle because he has good reason to expect that some factory will settle there? The fac- tory owner does not pay more tax for an acre than the modest house in the «ame locality. He will gladly give a higher price. (If the place were im- proved, the factory would have to pay for the improvements also). Did Mr. Haus ever stop to consider what the word site-value means? In our latest singletax article we said: But let the reader mark well that only the site value counts. That is to say, a swam,py or rocky st)ot will pay as much in taxes as another equally large area which is in the same neighborhood or at the same distance from the center of the population. According to the principles of the singletaxers it is the population only and exclusively that "makes the value.!' A water- fall which offers thousands of hors'e power, the coal or oil hidden under ihs. surface, may not be considered at all. A gravel field and the best wheat land, provided they are in the same locality, pay the same tax. To enlighten Mr. Haus still more we quote from the singletax platform (The World Almanach) : 'The only value taken into consideration would be the value attaching to the bare land by reason of neighborhood, etc' . taking for public use' (i. e. taxing) 'that value which attaches to land by reason of the growth and improvement of the community.' (Let anyone take the World Almanach and convince himself that we are correct in quot- ing. The other bold statements of this platform, for instance about unbur- dening the farmer, giving to everyone his own house, etc. are in flagrant con- tradiction with the principles of Henry George, aa our articles have shown.) Under such circumstances it is not only pos'sible but very probable that in- dividuals or corporations will hold land favorable to industrial enterprises until it will yield them a large profit. Speculators would still hold natural oi)portunities unused or only half used. 2. If you can think of a better and easier way to prevent land speculation, I'd be glad to consider it. The withholding of valuable land from use .practi- cally lessens the size of the globe for industrial purposes, it lowers wages by lessening opportunities for labor, and in agricultural districts and city suburbs i! sra iters people who should be nearer together. Mr. Haus ha^ the genuine singletax horror of land speculation. It is the only evil in the world. Do away with land speculatoin, and the wages will jump sky high. Involuntary poverty will disappear (Platform). Yet it was land speculation that led to the establishments of the colonies from which sprang these glorious United States. Land speculation laid the foun- dations of our state of Ohio and settled all the states of the West. We dare say that a very large percentage of the houses of Cleveland owes its arigin to land s'peculation. We do not deny the many evils connected with it, nor do we defend all tiie methods used by the speculators. Everything thought out by men and practiced by mortals is open to abuse. Sound policy will think of how to prevent the abuse while keeping the good thing itself. — As far as single- taxers can see there is' only one device ever conceived by a human mind which is without the slightest evil consequence and that is singletax. In the very last sentence of his letter Mr. Haus unwittingly gives credit to land speculation for its good influences? against congested districts, tene- ments and slums and in the same breath admits the reverse as an effect of site tax. And it is true as we have maintained that site tax will need to have people housed in high buildings u^ing little ground space — Mr. Haus would house us close together. LETTER OF MR. M. J. McGUIRE. Editor of CathoJic Bulletin: 1. I have been reading- -with interest, rind not a little aniupemcm, series of controversal letters with Cleveland Single Taxers. You assume lo speak the Catholic church vieAV on the question at issue. Now when a chur>',h is built it becomes the property of those who contribute financially to defray the expenses of construction, to be correct — Holy 'Name church is the property of the members of Holy IJame parish. A very common source of revenue for oper- ating and maintenance in vogue in many CathoJic churches is pew rent. This rental is wisely determined by the advantage which the occupation of a pew gives to the pew-holder, proximity to the altar, pulpit, etc., the pews in front renting for more than those in the rear, in fact we generally find the pews in the extreme rear of the church minus a name plate. Quite a single-tax arrange- ment Mr. Editor, only the Church is consistent in its insi.stence on r an ying single tax to its logical conclusion. We read Mr. ^IcGuire's letter "with not a little annisement." Pop<^ Leo Xin, unbekpown to Mr. IMcGiiire, condemns the principle on which singletax rests. Henry George writes an open letter to the pope to em- phasize the great difference between the pope's doctrine and his own. And lo and behold, there corned .Mr. ]McGuire and shows that the Church of I^o XIII is singletaxing the people all the time. Do j^ou really think, Mr. Mc- Guire, that all the pastors wiio partly support their churches by pew rent, believe with Henry George against Leo XITI, that "private ]iroperty in land is a bold bare enormous wrong?" The readers of the Catholic Bulletin know very well, that the single taxers mean to tax every piece of landed property according to its value — site-value to be sure Well there are many cases, in which the price, the rental, even the tax can be fully and justly determined by the site value of 3 commodity. This is so whenever no other difference comes in but the site, the locality. But it is simply stupid to talk of singletax in all these cases'. Not only the church pew, but also the jplace in a theater, the stall in a mar- ket house, the room pr rooms in an arcade building are differentiated ex'^Jv.-' lively by their site, their «tirroundingsf,^f^cc'^.«sibili.ty and- '^o rorth. !sor does it make the slightest difference, whether the building which differs these commodities has been erected with public funds or by a compay^y or an in- dividual person. The reason for the difference in price, tax, rei ;tal, pew-rent or whatever name may be chosen, is always the same. ' What we have against singletax is not that it assesses according to value, site-value included. There is nothing reproachable ia this. But tlie sinarletax system of Henry George is built on the un-CIiristi?in and uiiiiatiir;»l assumption that private OT\iiership in land is a ])old, baref enormous Avrouir. Singletax will fall most heavily on those ^^h6 use proporti onately the largest area, the farmers, who at the same time make the prop*yrtionately smallest profit. Singletax, according to Henry George is to lessen the tax of the own- ers of railroads, faetoiles, mines, steamship lines and to i it the bulk of taxes which they are now paying oji others, Singletax, by levyi ig the same amomit OP the houselots, whether the houses are high or low, iness must be prepared to pay them. It would be a fraud to burden them on 5thers. We have to mention one more point. It is the crime of crimes. Suppose Mr. S^j^ith has the unholy thought of subletting his pew to Mr. Erown, at an enhanced rental, instead of occupying it himself. "Multiply these subrentals, eaqh with a profit, by a thousand, increase the demand for pews enormously, Mk Editor, and we are just beginning to perceive to what an impious, unjust, irlrational condition this system or rather, lack of system, lor which you so stouvtly hold a brief, has led us." Mr. McGuire's hair stands on end atf the sight of such an abomination. "Increase the demand for pews enormously." Not an Vasy matter, ISlv. McGuire. Mr. Smith has not built the church and will find it hard to increase the demand for pews beyond the size of the parish. \ But let us be seri\: if this were true of land, it would also be true of all other . things, nay tr^.ier even, because bread and clothing is more necessary to man than that^be should call a patch of land his own. From their unproven assertion that Vs Henry George puts it) a^l men are equally entitled to the use of land, tht\ singletaxers infer that land cannot be owned by any indi- vidual, but mustVbe public property. Now, if all men were equally entitled to the use of la:id, they would also be equally entitled to the use of all other creatures up'pn the face of the earth, and consequently nothing could ever become the private property of any individual. Thus the principles of the singletaxers Necessarily lead to an ultra-Socialism. What is true inf this much vaunted equality of rights is that all indeed have the right not to be prevented by immoral means from acquiring any of the world's good^. This applies to movable property as well as to the surface of the earth and the treasures hidden under it, as' far as they are really subject to and capable of private ownership. Let not Mr. Radcliffe say that many of the land speculators in fact use Immoral means. By saying this, he would transfer the debate to another realm. There would no longer be the question whether everyone who call^ a spot of ground hi% own — as much his own as his pocket knife or his auto — thereby is a robbei/ and thief; but only whether he acquired it in the right way. This question is the same for all kinds of property, for the auto and the pocket knife and the printing 'press as much as for the acres of land he may happen to hold. We do not find fault with the singletaxers if they maintain that property in land may not have been acquired by blameless methods, but because they deny that any man can hold and ever has held as/ his property any part of the soil. The singletax club of Cleveland main- tains that "private property in land is a bold, bare, enormous wrong." This at least has been stated by Mr, O. K. Dorn, treasurer of the club in a letter of August 3, 1^15, and has! not been contradicted since. Let Mr. Rad- cliffe read our articles in the issues of August 6 and 20, 1915. 30 FROM TWO OTHER LETTERS ''What specitir-d statement of Henry Cleorg-e do you object to?" If you had read even superficially our long correspondence with the prominent singletaxers of Cleveland, you would know that we object to his whole system. "How can rig'hteousness come on earth while we encourage those who hold land out of use and discourag-e those who use land? etc." Righteousliess will come on earth if all will combine in following out the teachings of Leo XITI 'in his Encyclical on the condition of labor. Henry George saw fit to write an extra pamphlet to oppose this doctrine. See on this point what was said in reply to Mr. Dom, p. 13. "Under singrletax there would be no encourag-ement to hold land idle nor tax for using: land and righteousness would be here." This is in the same strain as the foregoing. It is the usual' superficiality of the singletaxers. They completely overlook the evils of s^ngletax, a few of which are enumerated on p. 27. And granted even that there would be no idle land any more, there will remain (a thousand weapons in the hands of those who are desirous of plundering tneir neighbor, especially the vastly increased financial power of manufacturiiig; mining and similar concerns. Even under the present system it is not Jthe land compani( the enormous fortunes. "Righteousness ■'ould be here Yes, introduce singletax, and there will W no cheatini no adulterating of food and other artic^s, no for? liocketing, no highway robbery, no safelbl owing, as soon as the system described in our qutii ruary 18 will have been introduced. (See) Mr. Holmes, the secretarv of the Clei He is delighted, too. He writes: "Dear Sir: — Single Taxers are delighted bi and especially by his statement that the sinj cannot be merely done away with by attacks"^ distribution of wealth and by a .iust system ol idea," Certainly, it contains a very wise idea. Al of C. V. has this idea? It is an idea as old as hu^ ing to over-reach a fellow-man. But we believe admitting that it is Leo XIII who in an encyclic masterful way in the document just mentioned, refutation of socialism and semi-socialism largest number of its pages are devoted to an e^ reform. Although it does not treat directly of Holmes' to make a careful study of it with perfecj mend to him the practical edition of the encyc Program of Social Reform, B. Herder. St. Louij shown in our columns how hazy, confused, inc^ Henry George's notions of property and reform been rendered entirely unable to appreciate luc^ find and enjoy them in Pope Leo's* work. It brought this out in a visible form by printing t\ of the divisions and paragraphs in the text. "BISHOP HORSTMAN A SINGLETAXER" (From a Catholic Bulletin Editorial, Dec. 1915) After our controversy with members of the Cleveland Singletax Club had been going on for six months, the Cleveland singletax organ, "The Ground Hog," finally ventured into the lime light. It maintained that we were lining up "intellectual argument and sophistry" against the good singletaxers' "heart attitude." To quote a sentence: "Economic truth and justice is not a question of the intellect; it is a question of l^eart attitude, one man to another." It then offered a surprising bit of Information. "The late Bishop^ Horst- mann . . . was a slngletaxer." . . . "he believed in the essential justice of single tax." . . . "Bishop Horstmann was a boyhood and lifelong friend of Henry George, and also a very intimate friend of the late Tom Johnson." No doubt Bishop Horstmann believed that land could justly be taxed. But if he had been a singletaxer he would have left a few words in print to help out the Ground Hog reporter. That the good bishop was a s'chool mate of Henry George must not be charged up to him too harshly, he could not help it. The same is applicable to Tom Johnson. Here the singletaxers may use the "heart attitude." They Aill readily admit that it is good Christian, doctrine to "respect those that differ from you in opinion, and love your enemies." Thous'ands of Catholics remember the story often told by the late Bishop Horstmann about his boyhood friend Henry George. Speaking of the dan ger in reading everything at hand, he would refer to '^Progress and PoiJflMlHHyLejiry George' an/1. Jiow upon meeting him in a train he was George in '''B joy asked him if he h^d read his book kOf it? "i)e^" said Bishop Horstmann, slowly, "it has qualitJV ^ice print — but, Henry! there is nothing ^t' an equal amount of "convincing evidence* a singletax controversy. 5 for the Study of the Social Question, to Catholic Social Literature, of the Roman Catholic Central Verein, ilding, St. Louis, Mo. c Bulletin, a live paper for live people. 50c per year. Cleveland Weekly Edi- shed 1911. Linus G. Wey, editor. Address Lorain Ave., Cleveland, O.