The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1891-09-01
Land, Labor and Capital
fcoMMuNICATED,l

on between your paper and tho Every
Evening" relative to the apparent diff
ference In which q protective tariff
acts In Germany as compared with the
United States, allow me to call your
attention to some defects In reasoning
tention to a fact which In most Of the
economic discussions OF the day Is
lost sight OF.
The observation of the REPUBLICAN
that the failure of q protective tariff
in Germany to raise wages, is owing
to diBsimilar conditions OF govern
ment as compared with the United
States, is fallacious. The statement
itself is contradictory, inasmuch as 1t
makes the form of Government the
determination OF wages, and not the
tariff. The fact is that tariff, like any
other tax, lessons production and ham
pers exchange, thereby not only lessen
ing the amount which goes to labor as
wages, but also that which goes to
capital as interest, for all taxes that
are levied on anything which is the
Joint production OF land, labor and
capital Tin process OF exchange) Is
nearly all Paid by those who have no
wealth.
Thus, II man rents house he must
pay all the taxes against 1t, fire insur-
ance and water rent included, also an
amount necessary to keep up repairs,
together with the current rate OF inter-
est on the capital invested in the house.
IL he goes to the store to make
purchase he helps to pay license taxes
innumernble, and as railroads shift all
their taxes on freight and passengers,
he helps to pay their taxes, and very
| likely he will pay Government tax, in
order that the Government may pay
| pensions and support the army and
navy, and an army of useless officials.
| II he Is mechanic, working III one Of
| our shops here, with family OF six or
seven, he will pay more taxes TO the
Government than the richest unmar
rled man in town, for to raise large
revenue taxes must be largely laid on
articles Of prime necessity that is I'M
der the present system.
| Last year Republican Congress ap-
propriated one thousand millions Of
dollars, of which enormous sum nine
ty per cent. will have to be paid by
those who have only their labor to
sell.
How long, wonder, are the Amer
lean people going to let special privi-
lege ride on their backs. There is
scarcely tax levied in this broad land
to day that is not an outrage on the
individual, and menace to the spirit
of our institutions. No republic can
exist long that taxes its millionaires
three per cent. and its laboring classes
ninety-seven PER cent.
Such policy in Europe has differ
entiated society in two classes, the
very rich and the very poor. The rea-
son that 1t has not already done so
here is due to something entirely diff
ferent from protective tariff, and
which l will explain later OH. Revert
ing to Germany l wish to point out
that the mere form OF government can
not lessen wages, only as IL would
take from the people In taxes to sup
port that government.
II the Republican means that Ger
many has more taxes to collect Ia
support its large standing army and
its monarchical form OF government,
then IL does not mean the tariff and
its presence is foreign to tho discus
sion.
The controversy between The Re-
publican and Every Evening, as TO
, the benefits Of a tariff would DO more
interesting il England and Germany
were compared. Here are similar
conditions but different results Nc
student OF political economy car
deny that wages have largely increas
ed in England since the repeal of the
Corn Laws while times in Germany
have been getting harder with every
additional turn of the tarllf wheel
Every intelligent man knows that la
Dor Is better paid in England than II
Germany; this the Republican, can.
not explain and make protective
| tariff the determinator of wages.
Every intelligent man knows thai
wages are higher in the United State:
, | at, L.. l.,
I ing cannot explain on the theory OF .
reduction in tariff. The English colo
ny OF Australia IS divided in two pro
yinces. In one they have protective
! tariff, in the other the same as TIL
mother country, a tariff for reyenu
/ only. Wages in both provinces are TIL
same. New Zealand pays the highes
wages In tho world and is what the he
= publican would call free trade cour
Try; that Is. it has the same policy q
t England, Il tariff for revenue only.
will now outline why wages are mig
OF low in a country regardless Of il
:. tariff for all countries have some. III
l two papers so often quoted here as we
l. Us most persons only regard two laetol
in the production and distribution {
wealth VIZ; labor and capital, wheref
there are three, land, labor and capiti
), Everyone will admit this.
: Now, what effect upon wages dot
> land have In the distribution OF wealtl
Let us see. We say that labor take
wages, capital takes interest and Ian
y takes rent. Rent, therefore, is IL
a price which is paid for the use Of lam
- The more thicllg populated culntr
N Is, the greater the competition Tor Il
use OF its land, and rent is consequent
ly higher.
~, As all wealth produced is divided b
- tween rent, wages and interest, in
If new country, Where laud is cheap, lel
will be low, and wages and interc
will be higher than in older and mo
I, thiclily settled countries. Our IA
III roads and other corporations a
,p largely owned by foreign capital.
% wages and interest are relatively hig
or In the United States than in Eur
pean countries, 1t Is because rent
III relatively lower.
The Republican will admit at on
that land is one Of the primary factO
III in production. Does it imagl
- that its corulIary, rent, is
G, small factor as to have no bearing
capital or labor, OF their corollaries
terest and wages Recoilect What
N. meant by the teim rent, 1t is the phi
- paid Tor tue use Of the land Where il
w provements are on land what is pa
* Tor them III the common term rel
". Is interest, the balance is econom
Of rent. The amount paid for rent eve
GU year in any country, will equal
at least the total cost of governmeI
In the United States it would pay
I'D Federal, State, county aud city
/ DenspS, n sum 81 money running In