The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-01
Endorses a Prediction.

To the Editor of The Journal
h e gu n a observes: ut may be con-
fdently expected that within the first quar-
ter Of the century the system of taxation By
state and local governments will be so modi-
fed as to constitute system that will have
no developmental connection with the pres
ent system. 1t will be in the end not a
changed but an essentially new system"
1t looks as II one Of the next steps in the
evolution of taxation will be the granting
to counties and municipalities home rule O.:
local option in taxation. This plan which Is
giving such complete satisfaction in New
Zealand will in all probability be universally
adopted by the English speaking peoples be-
fore the expiration Of the time mentioned
by b e j ournal l. When the people come
to understand the incidence of taxation and
realize the tremendous effect of the taxing
power for veal woe, the results predicted
by h e ] ourna will soon prevail.
| In the year 1891 the colony of New Zealand
exempted all personal property from taxation.
Prior to this change the country was in d
bad way. Thousands OF laborers We're seek
ing employment. Other thousands o.
tramps who had lost ambition and self-re-
spect were lodging work Emigration was
4 reducing the colony's population. Wages
were low, being $1.25 per day OF ten hours
and poverty was widespread. The deficiency
in revenue was met by land tax. The effect
was to break up large holdings, there being
instances OF 100, OO0-acre tracts being reduced
| to LOCO. Thousands of people went on the
| land. The glut in the labor market was re-
| !ieyed. The disemployed found work Wages
! jumped to 81 and 1925 per day. Even the
| tramps found it easier to earn a living than
| to beg for it. Men refused to labor ten hours.
The eight-hour work day and Saturday half
| holiday became universal. Immigrants
poured into the country.
! In 1896 parliament granted to taxing dis
tricts power to exempt improvements from
| taxation whenever majority of the voters
might direct. Up to August 1901, sixty
three districts, including the colonial cap
| ital, Wellington, had abolished the tax Oh
Improvements and concentrated taxes LAM
values. When all the districts adopt this
policy it Is probable that the next step will
be to repeal the tariff and collect all revenues
! for all purposes from land values In that
| case it is confidently expected that wages will
again double. The colony boasts that it has
neither a millionaire nor a tramp tits
corrollary). The wealthiest citizen is rated
| at less than a half million dollars.
In 1896 the colony of New South Wales
adopted progressive free trade Tariff duties
were to be gradually reduced over term Of
five years when, in 1901, only those on
liquors and tobacco should remain. The de-
ficiency was made up by a land tax, crude
and partial application Of Henry Georges
system, supplemented by income tax. The
effect of this change in the incidence OF taxa
ton startling. The decennial census
of 1901 showed that New South Wales had
made great gains in population, while her
sister colony, Victoria. separated only by a
river, which yet chung to the old taxing meth
DDS, had actually lost. Sydney the capita.
of New South Wales, gained 102, 600, or sc
per cent, while Victoria's capital Melbourne,
had gained but 1900, or less than 1 per cent.
In this age of universal education and
rapidity of communication these experiences
will not be lost upon the world. T b ] r
II, with perhaps more than ordinary
prescience, forsees the inevitable.
| "A. Freeland.