The Unearned Increment.

I have pointed out to you what might happen if yon allow private property in land to go to its full length. You may have men to control the lives of the citizens, or perhaps destroy the State, for after all what makes a State but the people. (Hear, hear.) Another thing in reference to land, which I suppose you are not altogether unacquainted with. We find land is not only a monopoly—in that respect different from other kinds of property, but that it increases in value without, perhaps, the landlord doing anything to make it increase. That is not unknown even in Auckland. (Hear, hear.) A man may have a block of land. He may do nothing with it, but his neighbours may improve their land all around him, and their improvements may double and treble the value of his land, and that goes on as the place increases in population and as your industries increase. Why, I may say every industrious man is doing what he can to add to the value of the land of his neighbour. It is not so in other things. It is not so with money. I remember when 17½ per cent, was the ordinary rate of interest. It then went down to 15, then to 12½, then to 10, and is now, I suppose, from 8 to 6½. The man, therefore, who had his thousand pounds in money would derive less revenue now, although the colony has increased in wealth and enterprise. But what has happened to the man who has land near a seulement? Instead of his land being worth less, it may have increased in value a hundredfold.

State Leasing of Land.Now, what would have happened if we had had a large portion of our lands leased I What will prevent your city from being overburdened with rates? You have city endowments leased. Had this colony begun a policy of State leasing we would have had just as prosperous colonists, less taxation, and far better chances of bearing additional burdens cast upon us if the progress of this colony is not to be stayed. What fin advantage it would have been if we had been able to go to the money lender or capitalist in London and say, "You need not depend upon our Customs revenue or taxation, here we hare millions of acres bringing in a certain rental per year. That page 5 is the best security in the world, and I hope as we have this leasing system in force to a very limited extent—only so far as goldfields and education reserves are concerned—we will have it extended. (Cheers).