People's Pilot, Volume 5, Number 2, Rensselaer, Jasper County, 4 July 1895 — STATE LIBERALISM. [ARTICLE]

STATE LIBERALISM.

The eyes of practical-minded social reformers have for the last two years oeen fixed upon New Zealand, that modern little Australian colony where advanced theories of sociology and political economy have been put to experimental test. In a recent number of the OutlooK Mr. A. C. Fradenburg outlines the course of these experiments and sums up the results achieved in the most important. His article is quite comprehensive and his conclusions are of a nature to attract the earnest attention of every thinking man and to awaken enthusiasm in the mind of the student who has attempted the solution of many existing problems along the lines of state socialism, or “new liberalism,’” as they term it in New Zealand. In New Zealand state activity has resulted in the government assuming many other functions besides that of mere governing. The state controls railroads, telegraphs, telephones, mails, roads, irrigation, and othe** public works which involves the management of natural motopolies, and by reason of its superior credit and resources has been able to precede and lead in civil ization with these instead of following ar a conservative distance, as in the case wherever these in dustries are in private hands. Up to March of 1898 the government of New Zealand had expended over £26,000,090 or $130,000.000 on railroads and other public works under this policy of clearing the way for civilization and immigration. Some of the railroads it built, others

built by private parties it purchased. In 1863, when the policy cy went into effect, there were only sixty-five miles of railroad in the colony. Last year there were 1,886 miles under government control and only 150 miles still owned and operated by private corporations. In 1892 the earnings of these state railroads were $5,900,000 and the net earnings, over all expenses. $2,249,150. Telegraphs, mails and waterworks have likewise yielded encouraging profits, the gross income from the first two named, which are operated together, being $1,498,325. Telephones, over which the government but recently assumed control, paid into the treasury during the same year $95,775, a good pro portion of which was in excess of fixed and operating charges. And this, too, in a new country, a colony far removed from older civilization, a small country containing altogether less than 700,000 people ! Had the people of New Zealand stopped at this point they would still have led the world in the railroad solution of vexing social problems. But they did not stop. The government has assumed control of native lands, opened them up, and will either lease, rent, or sell outright to a settler on easy terms whatever ground he may require, or if he has no money will advance him a sufficient sum to make his first payment and to begin his first improvements. The system of land tenure and taxation is a modified application of the principles expounded by Henry George. Most of the ground is leased in perpetuity or rented out by the state at an annual rate varying from 4 to 5 percent of its cash value. Land owned by individuals is taxed at a low figure, providing it does not exceed in value $25,003. On all property over that amount in value a special graded tax is assessed, which increases with the increase in size and value of the estate, becoming almost prohib- | itive when that value gets beyond $150,000. It is the settled policy of New Zealand government to prevent the acquisition of a large tract of land by .any individual or corporation. If. however, any victim of this policy thinks his taxes are too high the state always stands ready to purchase his property. Small holders have scarcely any tax to pay on their land and none whatever on improvements. The state also acts as trustee, administers estate at the actual cost of administration, and run's 7 a free public employment bureau, with branches in every town, where the mutual requirements of employers and employes all over the colony may be ascertained. These are not all the social experiments which have been tried in New Zealand. They are but a few of many, and all have thus far been attended with most gratifying success. When the recent financial panic devastated the whole of Australia and the Australian colonies extending in its effects even to the Sandwich islands and California, New Zealand alone of them all escaped the scourge. Her commerce was not impaired, her banks remained solid, her values were undisturbed. Call it, then, ad vanced liberalism, state social ism. what you like, the fact remains that state activity and state performance of many functions hitherto left to individuals u as proven an unqualified success in New Zealand. And if in New Zealand why not elsewhere?