Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-09-11

ing capital, but land monopoly, which
| by the unthinking is mistaken for
lcapital. If a capitalist is landowner,
it is as a landowner, and not as cap
| italist, that he is enabled to take b.
force from labor that which labor has
produced. Assuming that | am cap
| italist, who own a tract of land where
on have built factory, which turns
out every year certain amount of
wealth. This wealth is divided into
three parts. The first goes to the
| laborer; the second goes to me as [
capitalist, and the third goes to me,
but this time not as to capitalist,
but as to landowner.
Three factors unite III production
labor, capital and land. Three par
| ties, the laborer, the capitalist and
the landowner, divide that which IS
produced. CTo quote Henry George,
p. 220, Progress and Poverty'O: 'IC,
with an increase of production the
laborer gets no more and the capital
| list gets no more, it is a necessary in
| ference that the landowner reaps the
whole gain. And the facts agree VITA
| the inference Though neither wages
nor interest anywhere increase as ma
| terial progress goes on, yet the IN
variable accompaniment and mark ct
material Nprogress is the increase Of
lrent-the rise of land values. The III
crease of rent explains why wages
and interest do not increase. The
cause which gives to the landowne".
is the cause, which denies TO the Ia
borer and capitalist. 1t is not the
total produce, but the net prOduc :,
after rent has been taken from it, that
determines what can be divided IS
wages and interest. Hence the rate
of wages is everywhere fixed, not 81
much by the productiveness of labor,
as by the value of land.
Now the rate of wages being fixed
primarily by the value of land, il foi-
lows naturally that it is the owner Oh
land, to whom we must look for al
explanation of the comparatively low
rate of wages, rather than to the cap
I italist For a capitalist who is not i
Hand owner, Gf you can find any
, such, can get as return to his CAPT
{ tai, only what the current interes!
rate will bring him. If the intere 81
, rate is low, he can get only Ge!l
lively low return; if the interest rati
; | is high, his return will be relativel.
| high Now since wages and interest,"
do not increase as material progress
} goes on, while land values do i'll
+ crease, it is d necessary inferenc'
| that the surplus created by improved
= methods of production. goes to TIL
} landowners. If a capitalist is also ;
landowner, it is by virtue of his land
ownership that he is enabled to tax;
, the surplus created by improve,
i methods of production, besides taking
: also the return to his invested capita!
I Not Really an Investment.
BY invested capital, | mean onl,
: that which is invested in things pro
], duced by labor. such as houses, ma
r chinery, and works of any kind, 70
l. that part of his capital. which is Gin
: vested" in land. is not really invested
t. since it goes in the form of purchase
), money or rent, to secure the right o
e possession, to the land needed to carr.
/, on his business, and brings no return
: The landowner is the dog-in-the-man
. ger who does not produce, but who, b,
. virtue of his ownership of land, ca
: take from labor, that which labor ha
V produced. But you will say tina
L money invested in land, does bring
y return. True, but it brings no retur
= to labor and none to capital, and w
II cannot ignore the distinction betwee
s that which is invested in the product
II of labor and that which is invested i
4 the things created by nature. Whe
:, a man invests in land, he secures b
n his investment, a lien on future pre-
t. duction, for his land will not increas
in value excepting with the growth c
l. the community. Now since the il
t. crease of land values are caused solel