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| The "Order
Which is Best" and the Lesson of Languedoc |
| [Reprinted from Land
& Liberty, March-April 1975] |
WHILE Henry George was busily writing Progress and
Poverty, a Frenchman called Emile de Laveleye -- encouraged by John
Stuart Mill -- was writing a book called Primitive Property.
Their manuscripts were completed in the 1870's; they complement each
other perfectly. That they should have been published almost
simultaneously is one of those quirks of history. Henry George went on
to world fame, Laveleye remained in comparative obscurity. But between
them, they brought anthropology, history, economics and ethics to bear
to justify a return to a system of common ownership of land.
Henry George built his economic system on an ethical premise - that men
should enjoy equal rights to land. He was impelled into the pursuit of a
solution to the manifest injustices. of the emergent industrial system
of the USA, where abject poverty went hand-in-hand with the advances of
science and increased productive power.
Laveleye, working independently, also concluded that land should be
reinvested with social character -- instead of that arising from private
proprietorial rights. He arrived at this conclusion, however, by a
different route -- using historical materials, and employing comparative
analysis.
Everywhere, Laveleye found, land was held in common by men until a very
late stage in social evolution. His data were drawn from Russia, Italy,
China, India, etc., as far back as a study of source material would
allow him to penetrate. This material is missing from Progress and
Poverty, and that is why the two books complement each other.
But Laveleye, having reached a conclusion similar to that of Henry
George, failed to produce a solution which satisfied two criteria:
first, acknowledgement of the social nature of land, and secondly the
economic mechanism suitable for the new industrial society which was
just about to predominate throughout Europe. Henry George provided the
solution: the collection of the economic rent of land for public usage
(land-value taxation).
Both men saw that security of tenure was all that was needed to answer
those who sought to justify private property in land on the grounds that
this was a pre-condition to cultivation. But Laveleye, it seems, was
ignorant of a fiscal solution, although one presumes that he read Mill's
earlier works which did refer to the taxation of land value, the
unearned increment. The best that Laveleye could prescribe was modelled
on the Swiss canton system, where agricultural land was still held in
common, a proposal entirely unsatisfactory to those working in a
capital-based economic environment. Hence the disappointing conclusion
to the book. Laveleye ends by observing that "Obviously there can
be no attempt at securing to everyone a share in the soil". He
resorts to suggesting vaguely that industry should be based on the guild
system, which did contain a moral dimension and gave workers rights and
security which they lacked in the factories of the 19th century.
Laveleye's last paragraph reads: "There must be for human affairs.
an order which is the best. This Order is by no means always the
existing one; else why should we desire change in the latter? But it is
the order which ought to exist for the greatest happiness of the human
race. God knows it, and desires its adoption. It is for man to discover
and establish it." Laveleye was soon to learn of that solution -
when he laid hands on a copy of Progress and Poverty.
In a letter written in 1880, Henry George refers to a review of his
book:
"I got yesterday the first European notice
of our book. It is in the Parisian Review Scientifique, signed
by Emile de Laveleyc. I got Phil Roach to translate it for me. It is
first-class -- says the book has instructed him and led him to think;
endorses substantially the whole programme; says the chapter on Decline
of Civilisation is worthy of being added to 'De Tocqueville's immortal
work', etc." (Page 331 of Henry George Jr's The Life of
Henry George.)
Henry George makes one reference to Laveleye in his later work, The
Science of Political Economy, but he does not acknowledge the value
of Laveleye's historical account of the development of property in land.
For Henry George, it was sufficient to validate his system on the basis
of Christian ethics. But for those reluctant to accept Christianity (and
land-value taxation is not proposed just for the Christian world), a
more general validation is necessary -- of the sort which would be
acceptable to Hindus, Moharnmedans, atheists, totem pole worshippers,
and so on. History provides just such a generalised validation. Henry
George starts where Emile de Laveleye leaves off.
Tocqueville and his "immortal work" is also relevant. His
Ancien Regime en France, offers empirical evidence from history
to support the claim that the taxation of land values stimulates
economic activity and a free community, while other taxation is a
hindrance to progress.
Tocqueville's purpose in writing his book was to lay bare the cause of
the French Revolution. One of these was the injustice of exempting the
nobility from taxation, while the peasant proprietors were forced to pay
taxes on their annual incomes, which were abitrarily assessed by local
citizens who acted as tax collectors on a rota basis. The agricultural
arts had deteriorated, and Tocqueville quotes "a celebrated English
agriculturist" (probably Arthur Young) as stating. that "the
agriculture I see before me is that of the tenth century".
Tocqueville writes:
..... the oppression was shown less in the active evil
done to these unfortunate persons than in the good which they were
prevented from doing to themselves. They were free and owners of land,
and yet they remained almost as ignorant as, and often more miserable
than, the serfs, their ancestors. They remain unaffected by industry
in the midst of prodigious advances of the arts, uncivilized in a
world scintillating with enlightenment. While retaining the
intelligence and the perspicacity peculiar to their race, they had not
learnt how to use them; they could not even succeed in the cultivation
of the soil -- which was their only calling."
But one province of France, Languedoc, had managed to fight for its
ancient rights in the face of the absolutism of. monarchs. In a
supplement to his book, Tocqueville latches on to the tax system used in
Languedoc, which had over two million inhabitants in 2,000 communes.
Languedoc was distinguished by the fact that it was democratically
administered locally; and most of the public works executed in the area
were financed. from locally-raised revenue. While other provinces spent
almost nothing on themselves in public works, Languedoc stood out for
the sums it spent. "The central government was. sometimes disturbed
at the sight of this great outlay," Tocqueville tells us. The money
was spent on straightening beds of rivers, extending the canal, opening
up and maintaining the port of Cette to commerce, draining marshland for
agriculture and developing a good highway system. Forced labour was, in
contrast with the rest of France, unknown: free labour was paid wages
for the work they did. How was the money raised?
The tax fell on landed property, and did not vary according to
the income. "It had as its fixed base open to view a carefully-made
survey renewed every thirty years, in which the lands were divided into
three classes according to their fertility. Each taxpayer knew in
advance exactly the amount of tax that he had to pay... did he think
himself wronged in the assessment? He had always the right of demanding
that his position should be compared with that of another inhabitant of
the parish chosen by himself. It is what is called today the appeal to
proportional equality." (p 135 of M. W. Patterson's translation,
published by Blackwell's).
It could be that the tax also fell on the value of capital improvements
on the land. Whether it did or not, it is clear that this was infinitely
superior to the tax on incomes levied in the rest of the kingdom.
Tocqueville writes:
"What I have said about public works can, with even greater.
right, be applied to. that other equally important part of the public
administration, which was concerned with the levy of taxes. It was in
this sphere especially that, passing from the Kingdom to the Province,
anyone would find it difficult to believe that he was still in the same
Empire." (p. 230)
So well administered was Languedoc, so good its credit, that the king
borrowed money via Languedoc to obtain. better terms than he himself
could obtain! And when the king created new taxes, Languedoc found it
more efficient to buy from him, at a very high price, the right to levy
them in their own fashion.
The liberties of Languedoc were hated by kings and their evil
courtiers. The constitution of the provinces was mutilated, then
abolished, then restored and abolished again ... and France was the
poorer for not learning the lessons of Languedoc.
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