E. Haldeman-Julius A Confused Economist
Charles Hecht
[Charles Hecht, a former Councilman of Lakewood,
N.J., and a long-time
proponent of Henry George's economic reforms (going back to the
Henry George campaign for mayor of the City of New York in 1886)
sent the following question to the American Freeman, edited
by
E. Haldeman-Julius of Gerard, Kansas.
Reprinted from Land and Freedom, March-April, 1934]
QUESTION: Would you consider the Single Tax, as advocated by Henry
George, if generally adopted, a fundamental remedy for the existing
economic conditions?
ANSWER: "Henry George has never impressed me as an
important economist. He made a great splash, but only among immature
and superficial students of economic phenomena. His Progress and
Poverty, written in 1879, is a solemnly pretentious work,
motivated by a sincere desire to help mankind, but nevertheless an
incomplete description of the social evils facing us and a
thoroughly inadequate solution.
"Henry George was not an original, creative thinker. The basic
ideas described under the general theory of the Single Tax
originated with the French economists of the 18th Century, known as
Physiocrats. Quesnay, the chief theoretician of the Physiocrats,
based his economic philosophy on the then sound premise that the
major part of man's wealth came from the soil. George, writing a
century later, had already seen vast advancements in the industrial
and financial processes, which he blandly ignored and then proposed
an exclusive tax on rentals. There was to be no other levy.
"Such a theory might be made to fit into an exclusively
agricultural economy, but imagine the absurdity of such a programme
in a day of large-scale industry, machinery, billion-dollar banks,
capitalists and all the other manifestations of a capitalistic
society, in which the bulk of wealth no longer comes from the land
but from industry.
"Henry George, as late as 1891, defended capital and interest,
and merely insisted on taking 'for the community the value that
attaches to land by the growth of the community.' Not only was
private capitalism to be untouched by the state, but it was to be
completely free of assessment by the tax collector. This would mean
that J. P. Morgan and John D. Rockefeller, each being expressions of
financial and industrial capitalism, were not to be taxed, either on
their business, their incomes, or their estates at their death.
Single Tax is as dead as the dodo. It is now merely the peculiar
notions of a group of senile eccentrics."
If Henry George did not impress Mr. Haldeman-Julius as an "important
economist" it is because E. Haldeman-Julius is evidently a
superficial thinker. Thousands upon thousands of intellectual people
including the world's most imminent economists consider Progress
and Poverty as the greatest book on social and political economy
ever written.
Mr. Haldeman-Julius like a good many more of his ilk who pretend to
understand social and economic questions pose as teachers to the
unwise and misinformed and fail to grasp the fundamental remedy
themselves and unjustly criticise Mr. George because of their lack of
knowledge on the subject. Mr. Haldeman-Julius says that Henry George "made
a great splash among immature and superficial students." Among
the many men who agreed with Henry George on economics, who, according
to Mr. Haldeman-Julius are "superficial students of economic
phenomena, "are the late Prof. Felix Adler of the Ethical Culture
Society, who entered the campaign of 1886 in behalf of Mr. George,
Samuel Gompers, late President of the American Federation of Labor,
who escorted Mr. George to many factories during the campaign where
Mr. George addressed the employees; Lloyd George; Ramsay McDonald;
Theodore Roosevelt; President Woorow Wilson; Newton D. Baker; Franklin
Lane, and William B. Wilson, members of the Wilson cabinet; Professor
John Dewey, the late Lucius F. Garvin, Governor of Rhode Island; Tom
L. Johnson; U. S. Senator Woodbridge; H. Ferris; Edwin Markham; Mark
Twain; Professor Irving Fisher; Bishop Huntington; Judge Samuel
Seabury; and thousands of other intellectual men and women throughout
the world.
Progress and Poverty has been translated into thirteen
languages, including Chinese, and over 6,000,000 copies have been
sold. Does this jibe with the statement that [the] Single [Tax] is as
"dead as the dodo?" Furthermore, the Single Tax has been
adopted in part in Pittsburgh, Pa., where at the last election a
Single Tax mayor was elected; in Fairhope, Ala., in Edmonton, Can.,
Australia and in various parts of the world.
This proves that people over the entire world are taking a practical
and lively interest in the philosophy of Henry George.
In the City of New York, recently, the Board of Education conducted
an essay contest in the thirty-seven high schools of the city and more
than 1,500 essays were written by students on the philosophy of Henry
George. At the commencement exercises followers of Henry George, who
awarded prizes to the successful students, addressed audiences of over
30,000 people on Henry George.
In each of the libraries of the high schools there is a set of books
by Henry George available to students, and they are constantly
consulted.
About two years ago the name of Henry George was presented by the
Committee of the Hall of Fame of the New York University for the
purpose of having a statue placed among the other immortals; only a
few votes were lacking for his election, but, it is almost certain
that at the next election enough votes will be cast favoring the
placing of his statue in the Hall of Fame. Does this seem as if the "Single
Tax is as dead as a dodo" and that it is "now merely the
peculiar notions of a group of ... eccentrics?
Haldeman-Julius said "That Henry George's works are an
imcomplete discription of the social evil facing us and is a
thoroughly inadequate solution of social evils. This statement is not
borne out by the facts. He pours out in Progress and Poverty,
the causes and cure for industrial depressions and answered in
advance, in the book, the criticisms that may be made of his theories,
and during his life, he exploded many of the so-called objection that
were made to his philosophy, and his followers have done the same
since his death. If Mr. Halderman-Julius will carefully read Progress
and Poverty he will find that Henry George was not only a great
economist but a prophet as well. The social and economic conditions of
today are, as he predicted they would be, if private ownership of land
was not abolished. He proved that in spite of an increase in the
production of wealth, wages tended to a minimum and that the
inequitable distribution of wealth made the comparative few enormously
wealthy and the great masses correspondingly poor. This he proved was
because of the private ownership of land.
Henry George did not claim, as Mr. Haldeman-Julius says, that he was
original in discovering that ground rent should be taxed into the
public treasury, to defray public expenses; he gave credit on many
occasions to the French Physiocrats, notable among them being Quesnay,
but, what he claims and justly so, was that he was original in
advocating the Single Tax on land values to pay the public expense and
that all other taxes should be abolished. By this method of taxation
there would be created a just distribution of wealth and all men who
worked would receive a just return for their labor.
Mr. Haldeman-Julius like many loose thinkers, on the social and
economic questions, gets confused when he says the bulk of wealth no
longer comes from the land." All wealth is produced by labor
applied to land. This agrees with such noted economists as Adam Smith,
Herbert Spencer, John Stuart Mill, et al. He showed that instead of
wages being drawn from capital as some economists contend, capital is
drawn from wages. Haldeman-Julius -- like all socialists -- confuses
the terms "capital" with "monopoly" and would
abolish the so-called capitalistic system, whereas if land monopoly
were abolished special privilege, which is based on land monopoly,
would cease and all the evils of our so-called capitalistic system
would disappear.
Mr. George states that wages are not drawn from capital but that true
capital is drawn from wages. He says, "If for instance I devote
my labor to gathering bird's eggs, picking wild berries, the eggs or
berries I thus get are my wages; surely no one will contend that in
such a case wages are drawn from capital. There is no capital in the
case, an absolutely naked man thrown on an island where no human being
before has trod may gather birds eggs or lick berries."
Mr. Morgan and Mr. Rockefellor and other millionaires are not "expressions
of private capitalism," as Mr. Haldeman-Julius states, but the
expressions of land monopoly.
Haldeman-Julius says the "Single Tax is now merely the peculiar
potion of a group of senile eccentrics." I would like to know
what the Single Taxers and other intelligent economists think of this
balderdash of Mr. Haldeman-Julius and his group of would-be
economists.
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