The herald., 1894-04-29
TAX REFORM IN NEW ZEALAND.
Interesting Facts in the Expe-
rience of That Colony.
An Example for the People Of the
United States.
Wonderful Changes Wrought by Taxing
Land Values and ExampJing Per-
sonal Property Eject on
Immig ration.
[nY RALPH L. HoYr |


mer, came in contact with several rep
resentatvea from foreign countries, as
well rs delegates and visitors from vari
Gus portions Of the United States.
Among those from abroad was one very
intelligent man from Australia and an-
other from New ZsAland Each had
much to say concerning conditions in
the country hs represented. l was for
ciDlr impressed with the great contrast
reported between those two Brltiah col
onics. The Australian gave most die-
nal and discouraging account OF BUSH
ness affairs and pros poets throughout
that colony. And may here state that
conditions in that colony have been rap-
idly growing worae ever since the report
was made to me. The New Zealand man
reported quite different condition OF
affairs in the colony whence he came.
In personal interview with him l OBJ
tanned the following information, which
certainly should interest all classea other
than those who believe that the chief
end of man is to pay taxes from the
earnings of industry for the benefit OF
speculators and mOnopolists. The New
Zealand representative said:
Sin 1890 what is called the graduated
land and income tax, went into effect III
our colony. Incomes to the AMOUNT Of
G6 week, and land holdings to the
value OF $500, were exempt from taxa
tlon under the law. From the point Of
exemption the tax fell with increasing
weighS on the larger holdings, until the
maximum Of the tax, ID per cent, was
levied on all values OF GOO, 600 and over.
Twenty per cent is added to the land
value tax after three years absence from
the colony on the part OF the landlord.
when this law went into effect a
New Zealand branch OF London bank
ing institution whose business it was to
lend money on the farms anu get farms
ON the mortgage, and to invest its sur
plus earnings in the heritage of the
people, owned no leas than one-thrd
OF the lands of the colony.
''Just prior to the making of this law
hard timee were upon the people. The
unem ployed paraded the streets of
Dunedin and other cities, bearing ban
ners demanding work, exactly as thou
sands of unemployed are doing In our
cities today. The New Zealand treasury
was in depleted condition. No sooner
did the law go into effect taxing these
large holdings at the rate OF l ID per
cent than the large land holders opened
their land for use. The tide of emigra.
ton began pouring into New Zealand
from the sister colonies. LABOR not
coming fast enough to suit the landlords,
the banking institution before referred
to chartered six ships to 20 to Ulster,
Ireland, for eligible emgrAnts to work
| New Zealand lands to earn the tax and
MAKE the holdings profitable. The
/ l. oe =
dotted with prosperous and happy
homes. No man today is begging for a
I chance to earn his bread in New Zea-
land.
Gin 1891, the fest year after the law
was passed, there wes in the public
treasury surplus of G30O,0 in 1892,
sur plus of 9400, 900; aud IN 1898 there
ia a surplus of $500 900. Having arted
ourselves in the right direction, nature
is with us, filling to overhowing the
public treasury, ,necessitating the further
reduction or abolition Of unjust taxes.
"But If very slight application of
the single tax will produce these glo-
rious results, what will not the full ap-
pliCation OF the single tax ACTON plish
for national welfare. for the peace and
prosperity Of all mankind ?"
In addition to the statements of the
party above quoted, now have a copy
OF the report prepared by United States
| Consul Connolly, for use by the bureau
of statistics OF the state department at
| Washington. Mr. Connolly was sent
out to New Zealand curing Cleveland 8
first term in the presidency.
and has resided at Auckland
ever since. He has therefor.
had exceptional opportunities for obser-
vation and the acquisition of reliable
knowledge on the su oject of taxation in
| New Zealand. He informs US that in
1891 taxes on personal property were
abolished; in 1892 the act was amended
SO as to exempt all improvements on
land under $4,000 in value; and in
1898 Improvements OF every kind we're
exempted These changes in the meth
| cd OF levying and collecting tRxes wore
not effected without fierce opposition !;
but Mr. Connolly says, "the taxation
laws have been fully and successfully
established and given practical effect,
even while other countries wsra theoriz
ing on the same principles" He turthe
says:
"rhere were many who, through the
puolic pres. in the halls OF legislation.
and on the highways and byways of the
country, proclaimed their be lief that tho
changes in the incidence of taxation
would surely involve tue country in
financial ruin; bat subsequent events
concluslvely demonstrated how ill
founded were their appreneasions.
1t was found, however, "a
soon as the new system bscAme law and
was thoroughly established and fully
understood, that instead OF Involving the
colony in ruin, IL had exactly the con
trAry effect. New Zealand credit today
10 better in the London money market
than is that of any other colony OF Aus
tralasia."
Oae OF the results of the new system
oil taxation is thus statedi
MANY OF the immense ea'atss are be-
ing freely offered to the government at
their taxable value, while some are be-
ing cut up in suitable farms and offered
ct public uction."
Most people imagins that changes in
modes OF taxation must De slowly and
cautiously made. But Mr.. Connolly
sayss
I'm three years the system OF taxation
has been almost completely changed,
and, it is gratifying to Hay, with the
mest beneficial effect"
What the people OF the colony think
OF the change is thus shown
At the last general election, held
November 20 1893. they have in tho
most pronounced manner demonstrated
their appreciation of what has been
/ done for them nv olaokfno l. khoaa tn " h a m