The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-06-21

Editor Tribune; read with consider
a bic interest your editorial in Saturdays
issue on the unearncd increment In
II You express tho common difficulty OF
Distinguishing between the unearned in
cremcnt Of land and the fiuctuatins value
OF the products OF labor through the fuc
tuatlonS Of supply and demand, II Is
quite true, as you state, that the ad-
vent of "A community which increases the
value of land may also increase the value
of the products Of labor. But there ~
this difference OF land the supply is
fixed and cannot increase TO meet de-
mand. But the products Of labor cnn he
increased 10 meet a growing demand so
that supply and demand Will keep pace
with each other and values Will fluctu
ate only slightly.
In the case or your Illustration Of the
farmer who found his hay, potatoes, but
ter and eggs double In value because of
the growth or city near by he could
secure the advantage o. abnormally high
prices only SO long as be had a monopoly
Of production through ownership OF the
land and inadequate transportation IA
cities. Under ordinary conditions COM
petition among producers will keep COM
modities al rgure determined by the
labor cost OF production. Not what u
costs one producer. but producers as
whole.
Wealth. or commodities Is the creation
OF labor alone anG labor cost determines
Its value. But land Is not the creation
of labor and its valuc arises from an In
creasing demand for its use by grow
value Increases without any cXert!on on
the part Of the individual land owner. II
is created BY the entire community,
Should Salt Lake City increase 10
population OF 200. 900 within the next few
years. would any OF the products of labor
increase In value? Would wages advance.
not. though the population should Increase
20 million. In fact, We would he SAFE
in predicting that wages and profits and
commodities would be lower, and that
l,i,
But we would he equally safe in pre-
dieting that land values would greatly
advance. The land owner would he the
one 20 reap tie great benefit OF this IN
crease. An6 Il wouldn't make any diff
ference II the piece OF land he owned
was unicnccd and grown up 10 weeds
and be hadn't expended dollar on 1t In
twenty years.
While Increase OF population would en-
able merchants ana manufacturers IN
favored localities to do "a larger volume
OF business competition would keep prof
lis at normal figure. Those enjoying
the advantage of more favorable or pro-
ductiye locations would have 10 give up
In the form of increased rent portion
OF their increased receipts. the amount
depending upon how much some one else
was willing 10 pay for the location.
These Illustrations show clearly why
the land owner alone can appropriate
unearned increment, and fixes the Jus
ticc Of the proposition OF the single taNer
10 take for the uses OF the community
as taxes portion of the values created
by the community alone.
While IL is the most scientific taX
proposed. its effect I'm opening the natura!
resources OF wealth TO labor and capita!
would be revolutionary. Since under
this system all Improvements and per-
SonaI property would be exempt from
taxation, there would be an immense
stimulation to production Since al!
taxes would rest upon land values, the
owners of land would either use II or
sell il to those who would use 4, for
the annual tan would take the largest
portion OF the annual unesrned incre-
ment
This would mean throwing omen 10 use
city lots, farming lands. forests coal.
iron and oil lands. and all those natural