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The Pamphlet Collection of Sir Robert Stout: Volume 51

The Prophet of San Francisco

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The Prophet of San Francisco.

There are some advantages in being a citizen—even a very humble citizen—in the Republic of Letters. If any man has ever written anything on matters of serious concern, which others have read with interest, he will very soon find himself in contact with curious diversities of mind. Subtle sources of sympathy will open up before him in contrast with sources, not less subtle, of antipathy, and both of them are often interesting and instructive in the highest degree.

A good many years ago a friend of mine, whose opinion I greatly value, was kind enough to tell me of his approval of a little book which I had then lately published. As he was a man of pure taste, and naturally much more inclined to criticism than assent, his approval gave me pleasure. But being a man also very honest and outspoken, he took care to explain that his approval was not unqualified. He liked the whole book except one chapter, "in which," he added, "it seems to me there is a good deal of nonsense."

There was no need to ask him what that chapter was. I knew it very well. It could be none other than a chapter called "Law in Politics," which was devoted to the question how far, in human conduct and affairs, we can trice the Reign of Law in the same sense, or in a sense very closely analogous to that in which we can trace it in the physical sciences. There were several things in that chapter which my friend was not predisposed to like. In the first place he was an active politician, and such men are sure to feel the reasoning to be unnatural and unjust which tends to represent all the activities of their life as more or less the results of circumstances. In the second place, he was above all other things a Free Trader, and the governing idea of that school is that every attempt to interfere by law with anything connected with trade or manufacture is a folly, if not a crime. Now, one main object of my "nonsense "chapter was to show that this doctrine is page 29 not true as an absolute proposition. It drew a line between two provinces of legislation, in one of which such interference had indeed been proved to be mischievous, but in the other of which interference had been equally proved to be absolutely required. Protection, it was shown, had been found to be wrong in all attempts to regulate the value or the price of anything. But Protection, it was also shown, had been found to be right and necessary in defending the interests of life, health, and morals. As a matter of historical fact, it was pointed out that during the present century there had been two steady movements on the part of Parliament—one a movement of retreat, the other a movement of advance. Step by step legislation had been abandoned in all endeavours to regulate interests purely economic; whilst, step by step, not less steadily, legislation had been adopted more and more extensively for the regulation of matters in which those higher interests were concerned. Moreover, I had ventured to represent both these movements as equally important—the movement in favour of Protection in one direction being quite as valuable as the movement against Protection in another direction. It was not in the nature of things that my friend should admit this equality, or even any approach to a comparison between the two movements. In promoting one of them he had spent his life, and the truths it represented were to him the subject of passionate conviction. Of the other movement he had been at best only a passive spectator, or had followed its steps with cold and critical toleration. To place them on anything like the same level as steps of advance in the science of government could not but appear to him as a proposition involving "a good deal of nonsense." But critics may themselves be criticised; and sometimes authors are in the happy position of seeing behind both the praise and the blame they get. In this case I am unrepentant. I am firmly convinced that the social and political value of the principle which has led to the repeal of all laws for the regulation of price is not greater than the value of the principle which has led to the enactment of many laws for the regulation of labour. If the Factory Acts and many others of the like kind had not been passed we should for many years have been hearing a hundred "bitter cries" for every one which assails us now, and the social problems which still confront us would have been much more difficult and dangerous than they are.

Certain it is that if the train of thought which led up to this conclusion was distasteful to some minds, it turned out to be page 30 eminently attractive to many others. And of this, some years later, I had a curious proof. From the other side of the world, and from a perfect stranger, there came a courteous letter accompanied by the present of a book. The author had read mine, and lie sent his own. In spite of prepossessions he had confidence in a candid hearing. The letter was from Mr. Henry George, and the book was "Progress and Poverty." Both were then unknown to fame; nor was it possible for mo fully to appreciate the compliment conveyed until I found that the book was directed to prove that almost all the evils of humanity are to be traced to the very existence of landowners, and that by Divine right land could only belong to everybody in general and nobody in particular.

The credit of being open to conviction is a great credit, and even the heaviest drafts upon it cannot well be made the subject of complaint. And so I could not be otherwise than flattered when this appeal in the sphere of politics was followed by another in the sphere of science. Another author was good enough to present me with his book; and I found that it was directed to prove that all the errors of modern physical philosophy arise from the prevalent belief that our planet is a globe. In reality it is flat. Elaborate chapters, and equally elaborate diagrams are devoted to the proof. At first I thought that the argument was a joke, like Archbishop Whately's "Historic Doubts." But I soon saw that the author was quite as earnest as Mr. Henry George. Lately I have seen that both these authors have been addressing public meetings with great success; and considering that all obvious appearances and the language of common life are against the accepted doctrine of Copernicus, it is perhaps not surprising that the popular audiences which have listened to the two reformers have evidently been almost as incompetent to detect the blunders of the one as to see through the logical fallacies of the other. But the Californian philosopher has an immense advantage. Nobody has any personal interest in believing that the world is flat. But many persons may have an interest, very personal indeed, in believing that they have a right to appropriate a share in their neighbour's vineyard.

There are, at least, a few axioms in life on which we are entitled to decline discussion. Even the most sceptical minds have done so. The mind of Voltaire was certainly not disposed to accept without question any of the beliefs that underlay the rotten political system which he saw and hated. He was one of page 31 those who assailed it with every weapon, and who ultimately overthrew it. Amongst his fellows in that work there was a perfect revelry of rebellion and of unbelief. In the grotesque procession of new opinions which have begun to pass across the stage whilst he was still upon it, this particular opinion against property in land had been advocated by the famous "Jean Jacques." Voltaire turned his powerful glance upon it, and this is how he treated it*:—

B. Avez-vous oublié que Jean-Jacques, un des pères île l'Eglise Moderne a dit, que le premier qui osa clore et cultiver un terrain fut l'ennemi du genre humain, qu'il fallait l'exterminer, et que les fruits sont à tous, et que la terre n'est à personne? N'avons-nous pas déjà examiné ensemble cette belle proposition si utile à la Société?

A. Quel est ce Jean-Jacques? Il faut que ce soit quelque Hun, bel esprit, qui ait écrit cette impertinence abominable, ou quelque mauvais plaisant, buffo magro, qui ait voulu rire de ce que le monde entier a de plus sérieux. . . .

For my own part, however, I confess that the mocking spirit of Voltaire is not the spirit in which I am ever tempted to look at the fallacies of Communism. Apart altogether from the appeal which was made to me by this author, I have always felt the high interest which belongs to those fallacies, because of the protean forms in which they tend to revive and reappear, and because of the call they make upon us from time to time to examine and identify the fundamental facts which do really govern the condition of mankind. Never, perhaps, have communistic theories assumed a form more curious, or lent themselves to more fruitful processes of analysis, than in the writings of Mr. Henry George. These writings now includea volume on "Social Problems," published recently. It represents the same ideas as those which inspire the work on "Progress and Poverty." They are often expressed in almost the same words, but they exhibit some development and applications which are of high interest and importance. In this paper I shall refer to both, but for the present I am do no more than group together some of the more prominent features of this new political philosophy.

In the first place, it is not a little remarkable to find one of the most extreme doctrines of Communism advocated by a man who is a citizen of the United States. We have been accustomed to associate that country with boundless resources, and an almost in-

* "Dictionnaire Philosophique," 1764, art. "Loi Naturelle."

page 32 exhaustible future. It has been for two centuries, and it still is, the land of refuge and the land of promise to millions of the human race. And among all the states which are there "united," those which occupy the Far West are credited with the largest share in this abundant present, and still more abundant future. Yet it is out of these United States, and out of the one State which, perhaps, above all others, has this fame of opulence, that we have a solitary voice, prophesying a future of intolerable woes. He declares that all the miseries of the Old World are already firmly established in the New. He declares that they are increasing in an ever-accelerating ratio, growing with the growth of the people, and strengthening with its apparent strength. He tells us of crowded cities, of pestilential rooms, of men and women struggling for employments however mean, of the breathlessness of competition, of the extremes of poverty and of wealth—in short, of all the inequalities of condition, of all the pressures and suffocations which accompany the struggle for existence in the oldest and most crowded societies in the world.

I do not pretend to accept this picture as an accurate representation of the truth. At the best it is a picture only of the darkest shadows with a complete omission of the lights. The author is above all things a Pessimist, and he is under obvious temptations to adopt this kind of colouring. He has a theory of his own as to the only remedy for all the evils of humanity; and this remedy he knows to be regarded with aversion both by the intellect and by the conscience of his countrymen. He can only hope for success by trying to convince Society that it is the grasp of some deadly malady. Large allowance must be made for this temptation. Still, after making every allowance, it remains a most remarkable fact that such a picture can be drawn by a citizen of the United States. There can be no doubt whatever that at least as regards many of the great cities of the Union, it is quite as true a picture of them as it would be of the great cities of Europe. And even as regards the population of the States as a whole, other observers have reported on the feverish atmosphere which accompanies its eager pursuit of wealth, and on the strain which is everywhere manifest for the attainment of standards of living and of enjoyment which are never reached except by a very few. So far, at least, we may accept Mr. George's representations as borne out by independent evidence.

But here we encounter another most remarkable circumstance page 33 in Mr. George's books. The man who gives this dark—this almost black—picture of the tendencies of American progress, is the same man who rejects with indignation the doctrine that population does everywhere tend to press in the same way upon the limits of subsistence. This, as is well known, is the general proposition which is historically connected with the name of Malthus, although other writers before him had unconsciously felt and assumed its truth. Since his time it has been almost universally admitted not as a theory but as a fact, and one of the most clearly ascertained of all the facts of economic science. But, like all Communists, Mr. George hates the very name of Malthus. He admits and even exaggerates the fact of pressure as applicable to the people of America. He admits it as applicable to the people of Europe, and of India, and of China. He admits it as a fact as applicable more or less obviously to every existing population of the globe. But he will not allow the fact to be generalised into a law. He will not allow this—because the generalisation suggests a cause which he denies, and shuts out another cause which he asserts. But this is not a legitimate reason for refusing to express phenomena in terms as wide and general as their actual occurrence. Never mind causes until we have clearly ascertained facts; but when these are clearly ascertained let us record them fearlessly in terms as wide as the truth demands. If there is not a single population on the globe which does not exhibit the fact of pressure more or less severe on the limits of their actual subsistence, let us at least recognise this fact in all its breadth and sweep. The diversities of laws and institutions, of habits and of manners, are almost infinite. Yet amidst all these diversities this one fact is universal. Mr. George himself is the latest witness. He sees it to be a fact—a terrible and alarming fact, in his opinion—as applicable to the young and hopeful society of the New World. In a country where there is no monarch, no aristocracy, no ancient families, no entails of land, no standing armies worthy of the name, no pensions, no courtiers, where all are absolutely equal before the law, there, even there—in this paradise of Democracy, Mr. George tells us that the pressure of the masses upon the means of living and enjoyment which are open to them is becoming more and more severe, and that the inequalities of men are becoming as wide and glaring as in the oldest societies of Asia and of Europe.

The contrast between this wonderful confirmation of Malthusian page 34 facts, and the vehement denunciation of Malthusian law," is surely one of the curiosities of literature. But the explanation is clear enough. Mr. George sees that facts common to so many nations must be due to some cause as common as the result. But, on the other hand, it would not suit his theory to admit that this cause can possibly be anything inherent in the constitution of Man, or in the natural System under which he lives. From this region, therefore, he steadily averts his face. There are a good many other facts in human nature and in human conditions that have this common and universal character. There are a number of such facts connected with the mind, another number connected with the body, and still another number connected with the opportunities of men. But all of these Mr. George passes over—in order that he may fix attention upon one solitary fact—namely, that in all nations individual men, and individual communities of men, have hitherto been allowed to acquire bits of land and to deal with them as their own.

The distinction between Natural Law and Positive Institution is indeed a distinction not to be neglected. But it is one of the very deepest subjects in all philosophy, and there are many indications that Mr. George has dipped into its abysmal waters with the very shortest of sounding lines. Human laws are evolved out of human instincts, and these are among the gifts of Nature. Reason may pervert them, and Reason is all the more apt to do so when it begins to spin logical webs out of its own bowels. But it may be safely said that in direct proportion as human laws, and the accepted ideas on which they rest, are really universal, in that same proportion they have a claim to be regarded as really natural, and as the legitimate expression of fundamental truths. Sometimes the very men who set up as reformers against such laws, and denounce as "stupid"* even the greatest nations which have abided by them, are themselves unconsciously subject to the same ideas, and are only working out of them some perverted application.

For here, again, we come upon another wonderful circumstance affecting Mr. George's writings. I have spoken of Mr. George as a citizen of the United States, and also as a citizen of the particular State of California. In this latter capacity, as the citizen

* This is the epithet applied by Mr. George to the English people, because they will persist in allowing what all other nations have equally allowed.

page 35 of a democratic government, he is a member of that government, which is the government of the whole people. Now, what is the most striking feature about the power claimed by that government, and actually exercised by it every day? It is the power of excluding the whole human race absolutely, except on its own conditions, from a large portion of the earth's surface—a portion so large that it embraces no less than ninety-nine millions of acres, or 150,000 square miles of plain and valley, of mountain and of hill, of lake and river, and of estuaries of the sea. Yet the community which claims and exercises this exclusive ownership over this enormous territory is, as compared with its extent, a mere handful of men. The whole population of the State of California represents only the fractional number of 5.5 to the square mile. It is less than one quarter the population of London. If the whole of it could be collected into one place they would hardly make a black spot in the enormous landscape if it were swept by a telescope. Such is the little company of men which claims to own absolutely and exclusively this enormous territory. Yet it is a member of this community who goes about the world preaching the doctrine, as a doctrine of Divine right, that land is to be as free as the atmosphere, which is the common property of all, and in which no exclusive ownership can be claimed by any. It is true that Mr. George does denounce the conduct of his own Government in the matter of its disposal of land. But strange to say, he does not denounce it because it claims this exclusive ownership. On the contrary, he denounces it because it ever consents to part with it. Not the land only, but the very atmosphere of California—to use his own phraseology—is to be held so absolutely and so exclusively as the property of this community, that it is never to be parted with except on lease and for such annual rent as the government may determine. Who gave this exclusive ownership over this immense territory to this particular community? Was it conquest? And if so, may it not be as rightfully acquired by any who are strong enough to seize it? And if exclusive ownership is conferred by conquest, then has it not been open to every conquering army, and to every occupying host in all ages and in all countries of the world, to establish a similar ownership, and to deal with it as they please?

It is at this point that we catch sight of one aspect of Mr. George's theory in which it is capable of at least a rational explan- page 36 ation. The question how a comparatively small community of men like the first gold-diggers of California and their descendants can with best advantage use or employ its exclusive claims of ownership over so vast an area is clearly quite an open question. It is one thing for any given political society to refuse to divide its vacant territory among individual owners. It is quite another thing for a political society, which for ages has recognised such ownership and encouraged it, to break faith with those who have acquired such ownership, and have lived and laboured, and bought and sold, and willed upon the faith of it. If Mr. George can persaude the State of which he is a citizen, and the Government of which he is in this sense a member, that it would be best never any more to sell any bit of its unoccupied territory to any individual, by all means let him try to do so, and some plausible arguments might be used in favour of such a course. But there is a strong presumption against it and him. The question of the best method of disposing of such territory has been before every one of our great colonies, and before the United States for several generations; and the universal instinct of them all has been that the individual ownership of land is the one great attraction which they can hold out to the settlers whom it is their highest interest to invite and to establish. They know that the land of a country is never so well "nationalised" as when it is committed to the ownership of men whose interest it is to make the most of it. They know that under no other inducement could men be found to clear the soil from stifling forests, or to water it from arid wastes, or to drain it from pestilential swamps, or to enclose it from the access of wild animals, or to defend it from the assaults of savage tribes. Accordingly their verdict has been unanimous; and it has been given under conditions in which they were free from all traditions except those which they carried with them as parts of their own nature, in harmony and correspondence with the nature of things around them. I do not stop to argue this question here; but I do stop to point out that both solutions of it—the one quite as much as the other—involve the exclusive occupation of land by individuals, and the doctrine of absolute ownership vested in particular communities, as against all the rest of mankind. Both are equally incompatible with the fustian which compares the exclusive occupation of land to exclusive occupation of the atmosphere. Supposing that settlers could be found willing to devote the years of labour and of skill which are page 37 necessary to make wild soils productive, under no other tenure than that of a long "improvement lease," paying, of course, for some long period either no rent at all, or else a rent which must be purely nominal; supposing this to be true, still equally the whole area of any given region would soon be in the exclusive possession for long periods of time of a certain number of individual fanners, and would not be open to the occupation by the poor of all the world. Thus the absolute ownership which Mr. George declares to be blasphemous against God and Nature, is still asserted on behalf of some mere fraction of the human race, and this absolute ownership is again doled out to the members of this small community, and to them alone, in such shares as it considers to be most remunerative to itself.

And here again, for the third time, we come upon a most remarkable testimony to facts in Mr. George's book, the import and bearing of which he does not apparently perceive. Of course the question whether it is most advantageous to any given society of men to own and cultivate its own lands in severalty or in common is a question largely depending on the conduct and the motives and the character of governments, as compared with the conduct and the character and the motives of individual men. In the disposal and application of wealth, as well as in the acquisition of it, are men more pure and honest when they act in public capacities as members of a Government or a Legislature, than when they act in private capacities towards their fellow-men? Is it not notoriously the reverse? Is it not obvious that men will do, and are constantly seen doing, as politicians, what they would be ashamed to do in private life? And has not this been proved under all the forms which government has taken in the history of political societies? Lastly, I will ask one other question—Is it not true that, to say the very least, this inherent tendency to corruption has received no check from the democratic constitutions of those many "new worlds" in which kings were left behind, and aristocracies have not had time to be established?

These are the very questions which Mr. George answers with no faltering voice; and it is impossible to disregard his evidence. He declared over and over again, in language of virtuous indignation, that government in the United States is everywhere becoming more and more corrupt. Not only are the Legislatures corrupt, but that last refuge of virtue even in the worst societies—the Judiciary page 38 —is corrupt also. In nono of the old countries of the world has the very name of politician fallen so low as in the democratic communities of America. Nor would it be true to say that it is the wealthy classes who have corrupted the constituencies. These—at least to a very large extent—are themselves corrupt. Probably there is no sample of the Demos more infected with corruption than the Demos of New York. Its management of the municipal rates is alleged to be a system of scandalous jobbery. Now, the wonderful thing is that of all this Mr. George is thoroughly aware. He sees it, he repeats it in every variety of form. Let us hear a single passage*:—

It behaves us to look facts in the face. The experiment of popular government in the United States is clearly a failure. Not that it is a failure everywhere and in everything. An experiment of this kind does not have to be fully worked out to be proved a failure. But, speaking generally of the whole country, from the Atlantic to the Pacific, and from the Lakes to the Gulf, our government by the people has in large degree become, is in larger degree becoming, government by the strong and unscrupulous.

Again, I say that it is fair to remember that Mr. George is a Pessimist. But whilst remembering this, and making every possible allowance for it, we must not less remember that his evidence does not stand alone. In the United States, from citizens still proud of their country, and out of the United States from representative Americans, I have been told of transactions from personal knowledge which conclusively indicated a condition of things closely corresponding to the indictment of Mr. George. At all events, we cannot be wrong in our conclusion that it is not among the public bodies and Governments of the States of America that we are to look in that country for the best exhibitions of purity or of virtue.

Yet it is to these bodies—legislative, administrative, and judicial, of which he gives us such an account—that Mr. George would confine the rights of absolute ownership in the soil. It is these bodies that he would constitute the sole and universal landlord, and it is to them he would confide the duty of assessing and of spending the rents of everybody all over the area of every State. He tells us that a great revenue, fit for the support of some such great rulers as have been common in the Old World, could be afforded out of one-half the "waste and stealages" of such Municipalities as his own at San Francisco. What would be the "waste and

* "Social Problems'," p. 22.

page 39 stealages" of a governing body having at its disposal the whole agricultural and mining wealth of such States as California and Texas, of Illinois and Colorado?

But this is not all. The testimony which is borne by Mr. George as to what the governing bodies of America now are is as nothing to the testimony of his own writings as to what they would be—if they were ever to adopt his system, and if they were ever to listen to his teaching. Like all Communists, he regards Society not as consisting of individuals whose separate welfare is to be the basis of the welfare of the whole, but as a great abstract Personality, in which all power is to be centred, and to which all separate rights and interests are to be subordinate. If this is to be the doctrine, we might at least have hoped that with such powers committed to Governments, as against the individual, corresponding duties and responsibilities, towards the individual, would have been recognised as an indispensable accompaniment. If, for example, every political society as a whole is an abiding Personality, with a continuity of rights over all its members, we might at least have expected that the continuous obligation of honour and good faith would have been recognised as equally binding on this Personality in all its relations with those who are subject to its rule. But this is not at all Mr. George's view. On the contrary, he preaches systematically not only the high privilege, but the positive duty of repudiation. He is not content with urging that no more bits of unoccupied land should be ever sold, but he insists upon it that the ownership of every bit already sold shall be resumed without compensation to the settler who has bought it, who has spent upon it years of labour, and who from first to last has relied on the security of the State and on the honour of its Government. There is no mere practice of corruption which has ever been alleged against the worst administrative body in any country that can be compared in corruption with the desolating dishonour of this teaching. In olden times, under violent and rapacious rulers, the Prophets of Israel and of Judah used to raise their voices against all forms of wrong and robbery, and they pronounced a special benediction upon him who sweareth to his own hurt and changeth not. But the new Prophet of San Francisco is of a different opinion. Ahab would have been saved all his trouble, and Jezebel would have been saved all her tortuous intrigues if only they could have had beside them the voice of Mr. Henry George. Elijah was a fool. What right could Naboth have to talk about the "inheritance of page 40 his fathers"?* His fathers could have no more right to acquire the ownership of those acres on the Hill of Jezreel than he could have to continue in the usurpation of it. No matter what might be his pretended title, no man and no body of men could give it—not J oshua nor the Judges; not Saul nor David; not Solomon in all his glory—could "make sure" to Naboth's fathers that portion of God's earth against the undying claims of the head of the State, and of the representative of the whole people of Israel.

But now another vista of consequence opens up before us. If the doctrine be established that no faith is to be kept with the owners of land, will the same principle not apply to tenancy as well as ownership? If one generation cannot bind the next to recognise a purchase, can one generation bind another to recognise a lease? If the one promise can be broken and ought to be broken, why should the other be admitted to be binding? If the accumulated value arising out of many years, or even generations, of labour, can be and ought to be appropriated, is there any just impediment against seizing that value every year as it comes to be? If this new gospel be indeed gospel, why should not this Californian form of "faith unfaithful" keep us perennially, and forever "falsely true"?

Nay, more, is there any reason why the doctrine of repudiation should be confined to pledges respecting either the tenancy or the ownership of land? This question naturally arose in the minds of all who read with any intelligence "Progress and Poverty" when it first appeared. But the extent to which its immoral doctrines might be applied was then a matter of inference only, however clear that inference might be. If all owners of land, great and small, might be robbed, and ought to be robbed of that which Society had from time immemorial allowed them and encouraged them to acquire and call their own; if the thousands of men, women, and children who directly and indirectly live on rent, whether in the form of returns to the improver, or of mortgage to the capitalist, or jointure to the widow, or portion to the children, are all equally to be ruined by the confiscation of the fund on which they depend—are there not other funds which would be all swept into the same net of envy and of violence? In particular, what is to become of that great fund on which also thousands and thousands depend—men, women, and children, the

* 1 Kings xxi. 3.

page 41 aged, the widow, and the orphan—the fund which the State has borrowed and which constitutes the Debt of Nations? Even in "Progress and Poverty" there were dark hints and individual passages which indicated the goal of all its reasoning in this direction. But men's intellects just now are so flabby on these subjects, and they are so fond of shaking their heads when property in land is compared with property in other things, that such suspicions and forebodings as to the issue of Mr. George's arguments would to many have seemed overstrained. Fortunately, in his latter book he has had the courage of his opinions, and the logic of false premises has steeled his moral sense against the iniquity of even the most dishonourable conclusions. All National Debts are as unjust as property in land; all such Debts are to be treated with the sponge. As no faith is due to landowners, or to any who depend on their sources of income, so neither is any faith to be kept with bondholders, or with any who depend on the revenues which have been pledged to them. The Jew who may have lent a million, and the small tradesman who may have lent his little savings to the State—the trust-funds of children and of widows which have been similarly lent—are all equally to be the victims of repudiation. When we remember the enormous amount of the national debts of Europe and of the American States, and the vast number of persons of all kinds and degrees of wealth whose property is invested in these "promises to pay," we can perhaps faintly imagine the ruin which would be caused by the gigantic fraud recommended by Mr. George. Take England alone. About seven hundred and fifty millions is the amount of her Public Debt. This great sum is held by about 181,721 persons, of whom the immense majority—about 111,000—receive dividends amounting to £400 a-year and under. Of these, again, by far the greater part enjoy incomes of less than £100 a-year. And then the same principle is of course applicable to the debt of all public bodies; those of the Municipalities alone which are rapidly increasing, would now amount to something like 150 millions more.

Everything in America is on a gigantic scale, even its forms of villainy, and the villainy advocated by Mr. George is an illustration of this as striking as the Mammoth Caves of Kentucky, or the frauds of the celebrated "Tammany Ring" in New York. The world has never seen such a Preacher of Unrighteousness as Mr. Henry George. For he goes to the roots of things, and shows us how unfounded are the rules of probity, and what mere page 42 senseless superstitions are the obligations which have been only too long acknowledged. Let us hear him on National Debts, for it is an excellent specimen of his childish logic, and of his profligate conclusions:—

The institution of public debts, like the institution of private property in land, rests upon the preposterous assumption that one generation may bind another generation. If a man were to come to me and say, "Here is a promissory note which your great-grandfather gave to my great-grand-father, and which you will oblige me by paying," I would laugh at him and tell him that if he wanted to collect his note he had better hunt up the man who made it: that I had nothing to do with my great-grandfather's promises.

And if he were to insist upon payment, and to call my attention to the terms of the bond in which my great-grandfather expressly stipulated with his great-grandfather that I should pay him, I would only laugh the more, and be more certain that he was a lunatic. To such a demand any one of us would reply in effect, "My great-grandfather was evidently a knave or a joker, and your great-grandfather was certainly a fool, which quality you surely have inherited if you expect me to pay you money because my great-grandfather promised that I should do so. He might as well have given your great-grandfather a draft upon Adam, or a cheque upon the First National Bank of the Moon."

Yet upon this assumption that ascendants may bind descendants, that one generation may legislate for another generation, rests the assumed validity of our land titles and public debts.*

Yet even in this wonderful passage we have not touched the bottom of Mr. George's lessons in the philosophy of spoliation. If we may take the property of those who have trusted to our honour, surely it must be still more legitimate to take the property of those who have placed in us no such confidence. If we may fleece the public creditor, it must be at least equally open to us to fleece all those who have invested otherwise their private fortunes. All the other accumulations of industry must be as rightfully liable to confiscation. Whenever "the people" see any large handful in the hands of anyone, they have a right to have it—in order to save themselves from any necessity of submitting to taxation.

Accordingly we find, as usual, that Mr. George has a wonderful honesty in avowing what hitherto the uninstrueted world has been agreed upon considering as dishonesty. But this time the avowal comes out under circumstances which are deserving of special notice. We all know that not many years ago the United

* "Social Problems," pp. 213-14.

page 43 States was engaged in a civil war of long duration, at one time apparently of doubtful issue, and on which the national existence hung. I was one of those—not too many in this country—who held from the beginning of that terrible contest that "the North" were right in fighting it. Lord Russell, on a celebrated occasion, said that they were fighting for "dominion." Yes; and for what else have nations ever fought, and by what else than dominion, in one sense or another, have great nations ever come to be The Demos has no greater right to fight for dominion than Kings; but it has the same. But behind and above the existence of the Union as a nation there was the further question involved whether, in this nineteenth century of the Christian era, there was to be established a great dominion of civilised men which was to have negro slavery as its fundamental doctrine and as the cherished basis of its constitution. On both of these great questions the people of the Northern States—in whatever proportions the one or the other issue might affect individual minds—had before them as noble a cause as any which has ever called men to arms. It is a cause which will be forever associated in the memory of mankind with one great figure—the figure of Abraham Lincoln, the best and highest representative of the American people in that tremendous crisis. In nothing has the bearing of that people been more admirable than in the patient and willing submission of the masses, as of one man, not only to the desolating sacrifice of life which it entailed, but to the heavy and lasting burden of taxation which was inseparable from it. It is indeed deplorable—nothing I have ever read in all literature Las struck me as so deplorable—than that at this time of day, when by patient continuance in well doing the burden has become comparatively light, and there is a near prospect of its final disappearance, one single American citizen should be found who appreciates so litóle the glory of his country as to express his regret that they did not begin this great contest by an act of stealing. Yet this is the case with Mr. Henry George. In strict pursuance of his dishonest doctrines of repudiation respecting public debts, and knowing that the war could not have been prosecuted without funds, he speaks with absolute bitterness of the folly which led the Government to "shrink" from at once seizing the whole, or all but a mere fraction, of the property of the few individual citizens who had the reputation of being exceptionally rich. If, for example, it were known that any man had made a fortune of page 44 £200,000, the Washington Government ought not to have "shrunk" from taking the whole—except some £200, which remainder might, perhaps, by a great favour, be left for such support as it might afford to the former owner. And so by a number of seizures of this kind, all over the States, the war might possibly have been conducted for the benefit of all at the cost of a very few.*
It may be worthwhile to illustrate how this would have worked in a single instance. When I was in New York, a few years ago, one of the sights which was pointed out to me was a house of great size and of great beauty both in respect to material and to workmanship. In these respects at least, if not in its architecture, it was equal to any of the palaces which are owned by private citizens in any of the richest capitals of the Old World. It was built wholly of pure white marble, and the owner, not having been satisfied with any of the marbles of America, had gone to the expense of importing Italian marble for the building. This beautiful and costly house was, I was further told, the property of a Scotchman who had emigrated to America with no other fortune and no other capital than his own good brains. He had begun by selling ribbons. By selling cheap, and for ready money, but always also goods of the best quality, he had soon acquired a reputation for dealings which were eminently advantageous to those who bought. But those who bought were the public, and so a larger and larger portion of the public became eager to secure the advantages of this exceptionally moderate and honest dealer. With the industry of his race he had also its thrift, and the constant turning of his capital on an ever-increasing scale, coupled with his own limited expenditure, had soon led to larger and larger savings. These, again, had been judiciously invested in promoting every public undertaking which promised advantage to his adopted country, and which, by fulfilling that promise, could alone become remunerative. And so by a process which, in every step of it, was an eminent service to the community of which he was a member, he became what is called a millionaire. Nor in the spending of his wealth had he done otherwise

* Mr. George's words are these: "If when we called on men to die for their country, we had not shrunk from taking, if necessary, nine hundred and ninety-nine thousand dollars from every millionaire, we need not have created any debt."—"Social Problems,"p. 216.

page 45 than contribute to the taste and splendour of his country, as well as to the lucrative employment of its people. All Nature is full of the love of ornament, and the habitations of creatures, even the lowest in the scale of being, are rich in colouring and in carving of the most exquisite and elaborate decoration. It is only an ignorant and uncultured spirit which denounces the same love of ornament in Man, and it is a stupid doctrine which sees in it nothing but a waste of means. The great merchant of New York had indeed built his house at great cost; but this is only another form of saying that he had spent among the artificers of that city a great sum of money, and had in the same proportion contributed to the only employment by which they five. In every way, therefore, both as regards the getting and the spending of his wealth, this millionaire was an honour and benefactor to his country. This is the man on whom that same country would have been incited by Mr. Henry George to turn the big eyes of brutal envy, and to rob of all his earnings. It is not so much the dishonesty or the violence of such teachings that strikes us most, but its unutterable meanness. That a great nation, having a great cause at stake, and representing in the history of the world a life-and-death struggle against barbarous institutions, ought to have begun its memorable war by plundering a few of its own citizens—this is surely the very lowest depth which has ever been reached by any political philosophy.

And not less instructive than the results of this philosophy are the methods of its reasoning, its methods of illustration, and its way of representing facts. Of these we cannot have a better example than the passage before quoted, in which Mr. Henry George explains the right of nations and the right of individuals to repudiate an hereditary debt. It is well to see that the man who defends the most dishonourable conduct on the part of Governments defends it equally on the part of private persons. The passage is a typical specimen of the kind of stuff of which Mr. George's works are full. The element of plausibility in it is the idea that a man should not be held responsible for promises to which he was not himself a consenting party. This idea is presented by itself, with a careful suppression of the conditions which make it inapplicable to the case in hand. Hereditary debts do not attach to persons except in respect to hereditary possessions. Are these possessions to be kept whilst the corresponding obligations are to be denied? Mr. George is loud on the absurdity of calling page 46 upon him to honour any promise which his great-grandfather may have made, but he is silent about giving up any resources which his great-grandfather may have left. Possibly he might get out of this difficulty by avowing that he would allow no property to pass from one generation to another—not even from father to son—that upon every death all the savings of every individual should be confiscated by the State. Such a proposal would not be one whit more violent, or more destructive to society, than other proposals which he does avow. But so far as I have observed, this particular consequence of his reasoning is either not seen, or is kept in the dark. With all his apparent and occasional honesty in confronting results, however anarchical, there is a good deal of evidence that he knows how to conceal his hand. The prominence given in his agitation to an attack on the particular class of capitalists who are owners of land, and the total or comparative silence which he maintains on his desire to rob fundholders of all kinds, and especially the public creditor, is a clear indication of a strategy which is more dexterous than honest. And so it may really be true that he repudiates all hereditary debt because he will also destroy all hereditary succession in savings of any kind. But it must be observed that even thus he cannot escape from the inconsistency I have pointed out, as it affects all public debts. These have all been contracted for the purpose of effecting great national objects, such as the preservation of national independence, or the acquisition of national territory, or the preparations needed for national defence. The State cannot be disinherited of the benefits and possessions thus secured, as individuals may be disinherited of their fathers' gains. In the case of national debts, therefore, it is quite clear that the immorality of Mr. George's argument is as conspicuous as the childishness of its reasoning.

But there are other examples, quite as striking, of the incredible absurdity of his reasoning, which are immediately connected with his dominant idea about property in land. Thus the notion that because all the natural and elementary substances which constitute the raw material of human wealth are substances derived from the ground, therefore all forms of that wealth must ultimately tend to concentration in the hands of those who own the land; this notion must strike a landowner as one worthy only of Bedlam. He may not be able at a moment's notice to unravel all the fallacies on which it rests, and he may even be able to see in it the mad mimicry of logic which deceives the ignorant. But it does not need to be a landowner to see immediately that the con- page 47 clusion is an absurdity. "We have only to apply this notion in detail in order to see more and more clearly its discrepancy with fact. Thus, for example, we may put one application of it thus : All houses are built of materials derived from the soil, of stone, of lime, of brick, or of wood, or of all three combined. But of these materials three are not only products of the soil, but parts of its very substance and material. Clearly it must follow that the whole value of house property must end in passing into the hands of those who own these materials quarries of building-stone, beds of brick earth, beds of lime, and forests. Unfortunately for landowners, this wonderful demonstration does not, somehow, take effect.

But Mr. Henry George's processes in matters of reasoning are not more absurd than his assumptions in matters of fact. The whole tone is based on the assumption that owners of land are not producers, and that rent does not represent, or represents only in a very minor degree, the interest of capital. Even an American ought to know better than this; because, although there are in some parts of the United States immense areas of prairie land which are ready for the plough with almost no preliminary labour, yet even in the New World the areas are still more immense in which the soil can only be made capable of producing human food by the hardest labour, and the most prolonged. But in the old countries of Europe, and especially in our own, every landowner knows well, and others ought to know a little, that the present condition of the soil is the result of generations of costly improvements, and of renewed and reiterated outlays to keep these improvements in effective order. Yet on this subject I fear that many persons are almost as ignorant as Mr. Henry George. My own experience now extends over a period of the best part of forty years. During that time I have built more than fifty homesteads, complete for man and beast; I have drained and reclaimed many hundreds, and enclosed some thousands, of acres. In this sense I have "added house to house, and field to field," not—as pulpit orators have assumed in similar cases—that I might "dwell alone in the land," but that the cultivating class might live more comfortably, and with better appliances for increasing the produce of the soil. I know no more animating scene than that presented to us in the essays and journals which give an account of the agricultural improvements effected in Scotland since the close of the Civil Wars in 1745. Thousands and thousands of acres have been reclaimed from bog and waste. page 48 Ignorance has given place to science, and barbarous customs of immemorial strength have been replaced by habits of intelligence and of business. In every county the great landowners, and very often the smaller, were the great pioneers in a process which has transformed the whole face of the country. And this process is still in full career. If I mention again my own case, it is because I know it to be only a specimen, and that others have been working on a still larger scale. During the four years since Mr. George did me the honour of sending to me a book assuming that landowners are not producers, I find that I have spent on one property alone the sum of £40,000, entirely on the improvement of the soil. Moreover, I know that this outlay on my own part, and similar outlay on the part of my neighbours, so far from having power to absorb and concentrate in our hands all other forms of wealth, is unable to secure anything like the return which the same capital would have won—and won easily—in many other kinds of enterprise. I am in possession of authentic information that on one great estate in England the outlay on improvements purely agricultural has, for twenty-one years past, been at the rate of £35,000 a-year, whilst including outlay on churches and schools, it has amounted in the last forty years to nearly 2,000,000l sterling. To such outlays landowners are incited very often, and to a great extent, by the mere love of seeing a happier landscape and a more prosperous people. From much of the capital so invested they often seek no return at all, and from very little of it indeed do they ever get a high rate of interest. And yet the whole—every farthing of it—goes directly to the public advantage. Production is increased in full proportion, although the profit on that production is small to the owner. There has been grown more corn, more potatoes, more turnips; there has been produced more milk, more butter, more cheese, more beef, more mutton, more pork, more fowls, and eggs, and all these articles in direct proportion to their abundance have been sold at lower prices to the people. When a man tells me, and argues on steps of logic which he boasts as irrefutable, that in all this, I and others have been serving no interests but our own—nay, more, that we have been but making "the poor poorer" than they were—I know very well that, whether I can unravel his fallacies or not, he is talking the most arrant nonsense, and must have in his composition, however ingenious and however eloquent, a rich combination, and a very large percentage of the fanatic and of the goose.

page 49

And here, again, we have a new indication of these elements in one great assumption of fact, and that is the assumption that wealth has been becoming less and less diffused—"the rich richer, the poor poorer." It did not require the recent elaborate and able statistical examination of Mr. Giffen to convince me that this assumption is altogether false. It is impossible for any man to have been a considerable employer of labour during a period embracing one full generation, without his seeing and feeling abundant evidence that all classes have partaken in the progress of the country, and no class more extensively than that which lives by labour. He must know that wages have more than doubled—sometimes a great deal more—whilst the continuous remission of taxes has tended to make, and has actually made, almost every article of subsistence a great deal cheaper than it was thirty years ago. And outside the province of mere muscular labour, amongst all the classes who are concerned in the work of distribution or of manufacture, I have seen around me, and on my own property, the enormous increase of those whose incomes must be comfortable without being large. The houses that are built for their weeks of rest and leisure, the furniture with which these houses are provided, the gardens and shrubberies which are planted for the ornament of them; all of these indications, and a thousand more, tell of increasing comfort far more widely if not universally diffused.

And if personal experience enables me to contradict absolutely one of Mr. George's assumptions, official experience enables me not less certainly to contradict another. Personally I know what private ownership has done for one country. Officially I have had only too good cause to know what State ownership has not done for another country. India is a country in which, theoretically at least, the State is the only and the universal landowner, and over a large part of it the State does actually take to itself a share of the gross produce which fully represents ordinary rent. Yet this is the very country in which the poverty of the masses is so abject that millions live only from hand to mouth, and when there is any—even a partial—failure of the crops, thousands and hundreds of thousands are in danger of actual starvation. The Indian Government is not corrupt—whatever other failings it may have—and the rents of a vast territory can be far more safe if left to its disposal than they could be left at the disposal of such popular governments as those which Mr. George has denounced on the American Continent. Yet page 50 somehow the functions and duties which in more civilised countries are discharged by the institution of private ownership in land are not as adequately discharged by the Indian Administration. Moreover, I could not fail to observe, when I was connected with the Government of India, that the portion of that country which has most grown in wealth is precisely that part of it in which the Government has parted with its power of absorbing rent by having agreed to a Permanent Settlement. Many Anglo-Indian statesmen have looked with envious eyes at the wealth which has been developed in Lower Bengal, and have mourned over the policy by which the State has been withheld from taking it into the hands of Government. There are two questions, however, which have always occurred to me when this mourning has been expressed—the first is whether we are quite sure that the wealth of Lower Bengal would ever have arisen if its sources had not been thus protected; and the second is whether even now it is quite certain that any Governments, even the best, spend wealth better for the public interests than those to whom it belongs by the natural processes of acquisition. These questions have never, I think, been adequately considered. But whatever may be the true answer to either of them, there is at least one question on which all English statesmen have been unanimous—and that is, that promises once given by the Government, however long ago, must be absolutely kept. When landed property has been bought and sold and inherited in Bengal for some three generations—since 1793—under the guarantee of the Government that the Rent Tax upon it is to remain at a fixed amount, no public man, so far as I know, has ever suggested that the public faith should be violated. And not only so, but there has been a disposition even to put upon the engagement of the Government an overstrained interpretation, and to claim for the landowners who are protected under it an immunity from all other taxes affecting the same sources of income. As Secretary of State for India I had to deal with this question along with my colleagues in the Indian Council, and the result we arrived at was embodied in a despatch which laid down the principles applicable to the case so clearly that in India it appeals to have been accepted as conclusive. The Land Tax was a special impost upon rent. The promise was that this special impost should never be increased; or, in its own words, that there should be no "augmentation of the public assessment in consequence of the improvement of their estates." It was not a promise that no page 51 other taxes should ever be raised affecting the same sources of income, provided such taxes were not special, but affected all other sources of income equally. On this interpretation the growing wealth of Bengal accruing under the Permanent Settlement would remain accessible to taxation along with the growing wealth derived from all other kinds of property, but not otherwise. There was to be no confiscation by the State of the increased value of land, any more than of the increased value of other kinds of property, on the pretext that this increase was unearned. On the other hand, the State did not exempt that increased value from any taxation which might be levied also and equally from all the rest of the community. In this way we reconciled and established two great principles which to shortsighted theorists may seem antagonistic. One of these principles is that it is the interest of every community to give equal and absolute security to every one of its members in his pursuit of wealth; the other is, that when the public interests demand a public revenue all forms of wealth should be equally accessible to taxation.

It would have saved us all, both in London and Calcutta, much anxious and careful reasoning if we could only have persuaded ourselves that the Government of 1793 could not possibly bind the Government of 1870. It would have given us a still wider margin if we had been able to believe that no faith can be pledged to landowners, and that we had a Divine right to seize not only all the wealth of the Zemindars of Bengal, but also all the property derived from the same source which had grown up since 1793, and has now become distributed and absorbed among a great number of intermediate shares, standing between the actual cultivator and the representatives of those to whom the promise was originally given. But one doctrine has been tenaciously held by the "stupid English people" in the government of their Eastern Empire, and that is, that our honour is the greatest of our possessions, and that absolute trust in that honour is one of the strongest foundations of our power.

In this paper it has not been my aim to argue. A simple record and exposure of a few of the results arrived at by Mr. Henry George has been, all that I intended to accomplish. To see what are the practical consequences of any train of reasoning is so much gained. And there are cases in which this gain is everything. In mathematical reasoning the "reduction to absurdity" is one of the most familiar methods of disproof. In political reasoning the "reduction to iniquity" ought to be of equal value. And if it is page 52 not found to be so with all minds, this is because of a peculiarity in human character which is the secret of all its corruption, and of the most dreadful forms in which that corruption has been exhibited. In pursuing another investigation I have lately had occasion to observe upon the contrast which, in this respect, exists between our moral and our purely intellectual faculties.* Our Reason is so constituted in respect to certain fundamental truths that those truths are intuitively perceived, and any rejection of them is at once seen to be absurd. But in the far higher sphere of Morals and Religion, it would seem that we have no equally secure moorings to duty and to truth. There is no consequence, however hideous or cruel its application may be, that men have been prevented from accepting because of such hideousness or of such cruelty. Nothing, however shocking, is quite sure to shock them. If it follows from some false belief, or from some fallacious verbal proposition, they will entertain it, and sometimes will even rejoice in it with a savage fanaticism. It is a fact that none of us should ever forget that the moral faculties of Man do not as certainly revolt against iniquity as his reasoning faculties do revolt against absurdity. All history is crowded with illustrations of this distinction, and it is the only explanation of a thousand horrors. There has seldom been such a curious example as the immoral teachings of Mr. Henry George. Here we have a man who probably sincerely thinks he is a Christian, and who sets up as a philosopher, but who is not the least shocked by consequences which abolish the Decalogue and deny the primary obligations both of public and of private honour. This is a very curious phenomenon, and well deserving of some closer investigation. What are the erroneous data—what are the abstract propositions—which so overpower the Moral Sense, and coming from the sphere of Speculation dictate such flagitious recommendations in the sphere of Conduct? To this question I may perhaps return, not with exclusive reference to the writings of one man, but with reference to the writings of many others who have tried to reduce to scientific form the laws which govern the social developments of our race, and who in doing so have forgotten—strangely for-gotten—some of the most fundamental facts of Nature.


* "Unity of Nature," chap, x., pp. 440-5.