.
| [A pamphlet published
by The Catholic World and reprinted by the Henry George School of
Social Science, New York, NY, 1941] |
SIXTY years ago on the West Coast an obscure newspaperman completed the
book that was to make him famous. Henry George sat down at his lamp-lit
desk in the dingier section of San Francisco and dedicated that book,
Progress and Poverty, "to those who, seeing the vice and
misery that spring from the unequal distribution of wealth and
privilege, feel the possibility of a higher social state and would
strive for its attainment."
There were other social thinkers, and social cranks too, in the days
when Henry George was making his bid for international prominence. Every
last one of them would willingly have accepted the dedication as
directed to himself. During the intervening decades to the present day
both the thinkers and the cranks have increased so tremendously that a
man now blushes to confess that he fosters no pet social theory. We have
all attained some degree of social consciousness. Virtually everyone
admits that vicious misery and poverty spring from the unequal
distribution of wealth. Some preach determined schemes for a
redistribution. Few can afford to remark complacently, as a typical
financier recently did: "Share the Wealth? How droll!"
Thus there are today a great many people who, with George, "feel
the possibility of a higher social state," and there is ever a
respectable number of unselfish men "who would strive for its
attainment." Only a fool would deny that there is no present need
for social reform. Everyone, no matter how biased he is in favor of the
social status quo, no matter how insensibly optimistic regarding
society's phenomenal achievements, must realize that this world of
associated men and women is still highly perfectible. We accept George's
dedication. Can we accept the simple and sovereign remedy of the Single
Tax, proposed by this man whose theories are now enjoying a sturdy
revival?
Henry George deserves consideration. He was a man who may have
over-simplified the drab science of economics. He is also a man who has
thousands of enthusiastic followers, and other thousands who heartily
disagree with him. You may belong to one group or the other, but if you
know him you cannot ignore him. Count Tolstoy, in his blunt way, went so
far as to remark that "people do not argue with the teaching of
Henry George. They simply do not know it." More recently Albert Jay
Nock said of him: "I should think that someone might soon be
rediscovering Henry George. If so, he will find that George was one of
the first half-dozen minds of the nineteenth century, in all the world."
That was in 1932, and the coincidence of the date was that someone had
been rediscovering Henry George. In the beginning of that year Oscar H.
Geiger, a New York business man, had just opened the Henry George School
of Social Science in Manhattan. As the founder and only professor, he
taught a course in political economy to eighty-four students, using
George's Progress and Poverty as the textbook. The school
prospered with the assistance of the Robert Schalkenbach Foundation,
incorporated seven years earlier for the purpose of "spreading
among the people of this and other countries a wider acquaintance with
the social and economic philosophy of Henry George." Geiger died at
the end of the first year, but the school continued and grew.
Geiger's notes for his classes were made into a neat Teacher's Manual
so that the fundamental course could be taught by anyone. It is used too
as the basis of the correspondence courses. The Philosophy of Henry
George, the fullest commentary on George's works, appeared in 1933,
and was incorporated into the free lessons which were now increasing
both at the school and by mail. Advanced courses were added to the
curriculum as fast as teachers could be trained to give them. The old
quarters were overcrowded. New York was reawakening to the doctrine of
the man who had almost been its mayor. The school had to expand.
In the summer of 1938 the Henry George School of Social Science bought
a fifty-thousand dollar building on East Twenty-ninth Street, installed
its office, classrooms, cafeteria, and other educational necessities,
and was ready for further business. The spark behind the move was Frank
Chodorov, one-time schoolteacher, traveling salesman, manufacturer, and
lifelong Georgist, whose energetic management made new opportunities
possible for students. In the following summer he put the accent on
youth by inviting a number of high school seniors to attend the free
courses.
The new director encouraged the formation of extension classes outside
the city of New York. More than two hundred American cities had these
classes, and the active student followers of the Georgist scheme quickly
passed the twenty-five thousand mark. Similar schools of varying size
and success were opened - or revived - in Australia, Canada, Denmark,
England, Holland, Scotland and South Africa. In the meanwhile he took
over the editorship of The Freeman, the school's monthly
critical journal of social and economic affairs.
Henry George was himself an able organizer and something of a
politician, so that on a Single Tax platform he almost gained the
mayoralty of the country's largest and most important city in 1886. Ten
years later he supported Bryan and his attack on the gold standard. In
the following year he again campaigned for mayor, but died on the eve of
election. Frank Chodorov, the man who holds his place at the helm of
revived Georgism, is likewise a capable organizer and thoroughgoing
Georgist; but the two things he will not engage in, nor permit his
students to engage in, are organizational and political activities.
The charter under which the school is conducted prohibits the formation
of a political party such as George headed. The students as a group
representing the movement may not take part in political activities of
any kind. The Director is insistent that he and his associates are
exclusively in the business of educating, of giving information. They
are idea men interested only in spreading ideas, not caring what group,
Republican, Democrat, or any other, will eventually put those ideas into
action.
Like the many disciples he has made in the last few years, the Director
is a man of superb confidence. He is not merely hopeful; he knows
that his theories will achieve results. Like all Georgists, he is fond
of quoting the great master on this matter of bustling organizations and
politics. "Social reform is not to be secured by noise and
shouting; by complaints and denunciations; by the formation of parties,
or the making of revolutions; but by the awakening of thought and the
progress of ideas. Until there be correct thought, there cannot be right
action; and when there is correct thought, right action will
follow."
It is as simple as that. Our prime immediate purpose, Mr. Chodorov
informed me, is to sweep away the cobwebs that academic "experts"
have been draping over the social science. Then we can get down to the
limpid simplicity of Georgism. To bring this about we are offering a
free economic education to any one who wishes it. There is no charge to
the student except one dollar for the textbook. Our teachers, all former
students, contribute their knowledge and time without pay, but our
hardest job is to convince people that we are actually giving something
for nothing. Once they take the course virtually all of them are rabid
Georgists ever after. Even the man on the street can learn the simple
scheme so well that he can teach it to others.
Recent personal experience has convinced me that the present student
followers of Georgism, if not precisely rabid, are certainly alert to
the trends in social thinking. A book, in which I had mentioned Henry
George and his movement, was hardly dry off the press when several
protesting letters informed me that I knew nothing at all about the
great master. My mention of George was only in passing references, and I
was astounded that such heated protests could arise over remarks that
were the cold truth unadorned by enthusiasm. I knew then that the
rumored resuscitation of Georgism was a vital thing and not the mere
warming-over of discarded ideas. It gave stimulus to a further
investigation of the trend of this modern resurrection.
Ardent New York Georgists celebrated the centennial of Henry George's
birth just as Hitler began the invasion of Poland. Disciples in Sydney,
Australia, hampered by activities of the European War, commemorated the
date several months later, in January, 1940. Conferences and
celebrations were held in numerous cities between these widely separated
points, most of them international in plan but confusedly local in
effect.
The object of all this veneration deserves more than a thumbnail
sketch. He was in general an admirable character. The personality he
breathed into his writings accounts, I think, for the highly ethical and
religious tone of his followers. Catholics are numerous among them, but
all shades of faith are represented. His father had been a dry-goods
merchant and custom-house clerk, but when Henry, the second of ten
children, was born at Philadelphia in 1839, he was currently engaged as
a publisher of religious books. From his parents, particularly his
mother, the son "inherited" a kind of religious Evangelical
Protestantism which he practiced in a desultory fashion during the rest
of his life.
The boy went to school at six and quit at thirteen, completely
unsuccessful at four different schools and confessedly an idler and
time-waster. But he followed the best American traditions by educating
himself through wide reading and frequent attendance at popular
lectures. His first job was that of errand boy, and then clerk, in an
insurance office. Before becoming a world figure as both economic
thinker and English prose stylist, George enjoyed a variety of
experiences, surpassing even that of the amazing Jack London. "He
had been a sailor, a type-setter, a tramp, a peddler, printer,
shopclerk, newspaperman, weigher in a rice mill, ship steward, inspector
of gas meters, gold-seeker, farm laborer."
In all these experiences, and wherever he went - Australia, India,
England, Ireland, New York, San Francisco - Henry George critically
observed two puzzling social phenomena: recurrent depressions and want
in the midst of plenty. He himself knew the personal punishment of dire
poverty. On the West Coast in the depression of 1864 he and his wife and
family almost starved to death. Object lessons of contrast were all
about him - in the incredible luxury of a few people and in the
worrisome want of the great masses. "This association of poverty
with progress," he said, "is the enigma of our times."
Out of these observations came the title of the famous Georgist bible,
which appeared after many delays when he was forty years old.
To do complete justice to the theories of Henry George, it is of course
necessary to make a thorough study of Progress and Poverty.
Simply to pick the following statement from its context would indicate
that the man was a thoroughgoing Socialist: "We must therefore
substitute for the individual ownership of land a common ownership. ...
This, then, is the remedy for the unjust and unequal distribution of
wealth apparent in modern civilization, and for all the evils which flow
from it: We must make land common property." But the
Georgists do not like the charge of Socialism. You must not put that
label on the movement, even though Doctor Wagner in his competent Social
Reformers, links Henry George with Adolph Wagner and Sidney Webb
under the heading: State Socialism, Limited and Unlimited. "Actually,"
protests Director Chodorov, "we are the greatest individualists in
the world."
What a man's theory is popularly called is of little importance. What
really counts is the shape of the thing itself. The question is whether
or not (a) George properly diagnosed the problem of maldistribution when
he said that "poverty deepens as wealth increases, and wages are
forced down while productive power grows, because land which is the
source of all wealth and the field of all labor, is monopolized";
(b) whether or not the remedy lies in making land common property; (c)
whether or not that remedy, achieved through the confiscation of rent by
taxation, can and will "raise wages, increase the earnings of
capital, extirpate pauperism, abolish poverty, give remunerative
employment to whoever wishes it, afford free scope to human powers,
lessen crime, elevate morals, and taste, and intelligence, purify
government and carry civilization to yet nobler heights."
Any movement giving this explanation, offering this remedy, and
promising these results, is at least open to discussion. Henry George
has been called an unorthodox economist mainly because he parted company
-- with the traditionalists in his analysis, partly also because his
lucid language was not the "shop talk" of other economists.
Most of them, especially those of truly liberal tendencies, would agree
with him that the fundamental problem is the maldistribution of wealth.
But few admit his remedy of making all land common property. Still fewer
agree that the remedy's effect would be the amazingly abundant life he
foretold. The cure would be worse than the sickness.
The application of the cure in the provinces of Western Canada can
hardly be called a success. Land value taxation began in 1891 in British
Columbia, in 1894 in Saskatchewan and Alberta (when these provinces were
still part of the Northwest Territory) and later, but to less extent, in
Manitoba. The use of a tax on land values and the exemption of a tax on
improvements made steady progress until the World War forced a return to
more orthodox procedure. The system failed in the crisis when extra tax
revenues were needed; and much has been made of this failure by
opponents who point out that a system is futile if it cannot rise to an
emergency.
Critics further assert that, even if the War had not occurred, the
scheme did not achieve its vaunted effects. The tax did not prevent land
speculation. It did not lower the rent. Owners still held their land out
of use. Higher wages were due to the natural prosperity of a young
country and not to the tax scheme.
But the interpretation of this failure depends largely on one's
personal prejudices. As Doctor Geiger remarks in The Philosophy of
Henry George: "Where successful, land value taxation is hailed
many times by the single taxer as an example of the ultimate efficiency
of his program; where unsuccessful, it is pointed to as but an
incomplete and parochial system that was destined to fail. And the same
confusion seems present so often with the critics of any Henry George
plan; land value taxation when effective is a peculiar and isolated
local phenomenon, applicable perhaps in the particular situation but
arguing nothing for the feasibility of any further extension of the
principle. When it seems to suggest a failure it is a warning that any
further advance in this direction must be avoided."
The basic economic case for Georgism stands or falls on its unique
expedient of the Single Tax. It is first and last a taxation scheme so
simple that it outshines any of the more bizarre proposals recently
discussed and voted upon in various parts of the country. But where
others depend upon a sales tax on finished commodities, the Georgist
plan goes directly to what is considered the source of all production,
property itself in the form of land.
"We propose," said George, "to abolish all taxes save
one single tax levied on the value of land, irrespective of the value of
the improvements in or on it." Strictly speaking, the proposal does
not call for a tax on real estate or on land as such. The tax is placed
only on land which derives its value from the pressure of population and
it is represented by "the whole of economic rent, or what is
sometimes styled the 'unearned increment of land values.'"
An acre in Montana is valueless when compared with an acre on Broadway.
Thus the location of land makes all the difference in value, and the
sheer presence of people makes land on Broadway more desirable than land
in Montana. Economic rent is the differential between one and the other,
and the Georgists consider this rent an immoral exaction by the landlord
on a value which he himself could not create. "The productive
powers which density of population has attached to this land are
equivalent to the multiplication of its original fertility by the
hundredfold and the thousandfold." The landlord automatically
becomes a millionaire. "Like another Rip Van Winkle, he may have
lain down and slept; still he is rich - not from anything he has done,
but from the increase of the population."
The pressure of population in a given area accounts for many odd
happenings in land manipulation. There are examples enough to give
strength to the Single Taxers' complaints of land monopoly and
speculation. The George Washington Bridge over the Hudson skyrocketed
land values in northern New Jersey. A housing project in St. Louis
(meant for slum clearance) raised surrounding land values so much that
the slum dwellers had to move to cheaper slums. The land adjoining a new
highway out of New Orleans multiplied in value until the rent for its
use became prohibitive. The litany of examples extends all over the
United States. Back to the times when frontiers were being expanded by
railroaders and timber cutters the great American sin has been the
exploitation and waste of land.
Not all economists will agree, however, with the dark picture George
drew of the evil effects of land speculation. Especially today their
agreement would be qualified by the fact that land values in general are
diminishing. Furthermore, there are many sources and systems of monopoly
other than land. Finally, these oft-condemned speculators have really
contributed a large amount of revenue in the form of taxes on their
land. Now speculators have died off and their descendants become the
genuine owners of the land. It would be a manifest injustice to them,
and to others who have recently bought land, to wipe out the value of
their holdings by taking the whole rent.
But why talk of this when millions of families are facing pauperism in
the world's richest country? The temptation is always present to plunge
heedlessly into some remedy, any remedy, that will alleviate distress.
Mistakes are unfortunately costly, and a movement can never prosper in
the face of unreason.
Thus there are numerous angles needing consideration before the Single
Tax Theory can be fully accepted. The solution is by no means as
all-embracing as the Georgist claims would indicate. Nor are the
disciples of the revival as precipitous in their enthusiasm as were the
immediate followers of Henry George and Father McGlynn. They now advance
their proposals in a less boisterous way, confidently but not
combatively. They are beginning to give the problem the exact and
extended attention which the whole movement lacked fifty years ago.
In his recent book, Economics and Society, John F. Cronin
remarked that "sweeping statements and controversial
generalizations have tended to obscure the fact that many of the basic
elements of George's analysis are considered sound by all economists.
Now that the fires of controversy have cooled, the time may be ripe for
such a scientific study of the problem." Other Catholic thinkers
'are beginning to lend the same sympathetic ear to the arguments of the
Single Taxers; and they are in a peculiarly apt position to work out an
alignment with Georgism.
There is cause for the Catholic suspicion of Georgism. The unfortunate
occurrence of what is known as the "McGlynn Case" still leaves
a bad impression on the minds of Catholics. Still, there is a surprising
number of Cathblics, both here and abroad, who are taking courses
through the Henry George School of Social Science, and who are bringing
back the Georgist philosophy of a generation or two ago. On the other
hand, the exoneration of Father McGlynn in 1892, on the score that his
considered summary of his land philosophy is not in conflict with
Catholic doctrine, does not mean that the scheme itself is sound in all
respects.
An example of Catholic opposition to the scheme is founded on the
independent, democratic traditions of a people who fear state
aggression. The hazard they rightly perceive is one to Church property
well as to their own security of possession. If property in land is not
a natural right, it must be a state concession. If the state can grant
rights it can also take them away; and who is there to predict where
that Leviathan will stop? The state is foot, knee and thigh in the
doorway way now. Shall we welcome its complete entrance? In South
Australia, under the land valuation tax, "certain exemptions were
made of park, church, university lands and the like." These
exemptions should be made under any system; but there is greater safety
against governmental encroachment where ownership of such lands is
outright and not merely fictitious.
Be that as it may, the perennial problem presented by the land question
and the issue of monopoly must sooner or later be met head-on by
Catholic social thinkers. It is at least thinkable that Christian social
reconstruction may solve the problem if it makes the approach along the
path laid down by Henry George. It is likewise thinkable that the whole
movement may be fitted into that social and economic framework which is
distinctly Catholic. At any rate, the object of both - a more reasonable
distribution wealth - would make such alignment worth striving for.
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