Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-01-08

much is evidently of this character. And
AGAIN he saws: "What is relative over.
production " hen viewed from one side is
relative underproduction when viewed
from the other. And what we call over.
production as to any particular commodity
or commodities may proceed from increased
production of things of one kind or from
decreased production of things of other
kinds.
Now, it ia of almost daily occurrence
that merchants find some article IN their
stocks that becomes dead stock, because
the market is overstocked with the partic.
ular kind of goods, and their value depre-
ciates in proportion to tie amount of sur
plus. This does not arise from short
stock of some other species of merchan-
disc. because these phenomena occur where
there is plenty of other kinds of goods and
wares.
Mr.. George again asserts: 1t is not
true, as the New York Herald says, IN
cutting down the margin of the news-deal-
ers, that the country is producing too
much. What ia true is that the
country is producing too little.
Taxes upon the exchange of commodities
are as much taxes upon production of COM
modities as taxes levied upon production.
We maintain an immense tariff upon i'm
ports for the express purpose of hampering
and restricting the exchange of commodi-
ties"
If the reasons given in the extract were
true in whole, as they are in part,
there would be more force to the posi-
ton taken, but such is not the case.
The Government imposes tax upon an
exchange of commodities in preference to
imposing direct tax upon property for its
own support. Mr.. George would have this
tax imposed upon the land, in order to en-
courage production, if the drift of his argu-
ment is understood. Now, if the land be
the bases of all production, l cannot see
how it would encourage the owners of land
to greater production by imposing tax
of $50, 100000 per year upon it, than if
the Sl50, 1000 be distributed upon the
various species Of property owned and pro-
duced by all the industrial pursuits.
The chief evil of the tariff lies in placing
a restriction upon the interchange of COM
produced abroad, by cheap labor,
but allows our own producer to import his
cheap labor duty free. If the same tariff
were imposed upon the cheap labor of
other countries, as is imposed upon the
cheap labor products of other countries,
then there would be no injustice done to
any productive industry at home.
l do not gather from the argument
of Mr.. George that he considers the taxing
power a monopoly, although he says its
system of taxation " creates monopolies.
The only absolute monopolies in this coun-
try are the Government itself, and the in
diyidual right of control over ones own
The Government claims the ex-
elusive right of protecting each person in
the monopoly of what belongs to him,
and it exercises a monopoly exclusively its
own in taxing the property sufficient to
pay for it's protection, as well as that of
it's owners. Mr.. George further asserts
d" Nor have we even internal free trade
although, thanks to the Constitution, the
political power is prohibited from inter-
fering with it. But we have suffered the
to whom we have left the con-
troll of the great highways over which our
internal commerce must pass, to assume
the taxing power. They are not only suf-
fered to practically charge their own prices
for transportation, but they are permitted
to impose what are virtually differential
duties"
The Constitution established free trade
among the States, yet Mr.. George says in
effect, because corporate property has been
left for its owners to manage the same as
property, that free trade be-
tween the States is nullified Z; that because
the adj calorem system has been adopted
in adjusting freight rates by transportation
agencies, the Constitution has been set at
naught VIII Mr.. George in another pa.
per explain to the producer of cheap COM
modities how he would market them if the
average rate on all commodities were
charged for their carriage? Will he also
explain what class of people would be ben
fitted if wheat, wood, coal and iron were
with silks, dry goods and other
luxuries, and paid the same rate regard
less of bulk, weight or value?
a judicious classification of freight and
a system of diferentisl rates are the
greatest stimulants to free interchange of
production in it's various forms. | do not
indorse his statement that the taxation of
property must tend to reduce the produc-
ton Of property. Taxes are mostly dis.
tributed within the State where collected.
When the routine of collecting and dis.
tributing are gone through with there is
the same amount of property there was be-
fore the proceedings were had. If not,
why does property increase from year to
year The plan Mr.. George suggests is
species Of communistic dicjde once a gear,
which bids fair to become monthly under
party leadership.
But as 8 panscea for all the evils of over
production of all kinds, of iRcapacity in
governmental affairs, of the overcrowding
of tenement houses in great cities, Mr..
George recommends making the land free
by taxing it so that no one can afford to
own it. presume this means Government
ownership of all the land. Suppo7e the
absolute corporation called " Government 3"
owned all the land, thus making it free,
who would pay the taxes on it Certainly,
if the land were free to the use of the Ia
bOrer he would pay no tax upon what he
did not own. And 40 Government has yet
devised method of taxing its own land.
1t is like lifting ones self out OF a well by
the straps of ones own boots. When such
feat can be performed, the time will have
arrived for the Government to assume the
junction OF WORKING the IeleSrapns anu tne
railroads, not before. The very freedom
which now prevails among the States in
trade and commerce, and which Mr., George
says should prevail with foreign nations,
would become as perfect a monopoly in the
hands of Government as the function
OF making the laws and administering
them now are. II the Government
in making and administering the laws is
obnoxious to the criticism of Mr.. George,
why does he desire to place any greater
and more difficult task upon it? Trans
porting the products OF industry is as
much an industry as is the production of
grain OF coal, and the price of the articles
transported is SIS easily established by
statute as the price of transporting them.
Both are contingent upon the law of supply
and demand.
Lastly, Mr.. George says Taxation on
production, exchanges or accumulation of
wealth checks production but taxation
which falls upon land values reduces the
barrier. Therefore, to give production
forces freedom all we have to do is to con-
centrate our taxation upon land values,
and in thus making land free to the
1 Z