Land speculator

“ The characteristic feature of the period was the speculation in wild lands. While the price of everything else rose, the government price of public land remained the same, say $1.25 an acre. In the light of the gorgeous future, land thus appeared ridiculously cheap; there could be no more promising investment. The land bought by the speculator was paid for in bank-notes. These bank-notes went from the land office as public funds to the deposit banks. The public funds so deposited were largely lent out again to speculators, who used them in buying more lands. ”

“ Our pioneer settlers were offered homes of one hundred and sixty acres each on condition of occupancy and improvement, but the speculator could throw himself across their track by buying up large bodies of choice land to be held back from settlement and tillage for a rise in price, and thus force them further into the frontier, and on to less desirable lands. ”

“ Besides a few of these unprincipled traders in land, some of whom are found in most of the towns, there are a large number of land-speculators who own both wild and improved farms in all parts of the colony who do not descend to these discreditable arts, but wait quietly until their lands become valuable by the progress of improvement in their neighbourhood, when they readily find purchasers—or, rather, the purchasers find them out, and obtain their lands at reasonable prices. ”

“ While the public lands are exposed to indiscriminate sale, as they have been since the organization of the government, it opens the door to the wildest system of land monopoly. It requires no lengthy dissertation to portray its evils. In the Old World its history is written in sighs and tears. Under its influence, you behold in England, the proudest and most splendid aristocracy, side by side with the most abject and destitute people; vast manors hemmed in by hedges as a sporting-ground for her nobility, while men are dying beside the enclosure for the want of land to till. ”

“ Capital in the hands of shrewd people, is always on the alert, waiting for such opportunities for investment. These investors through capital wish to live without effort, upon the proceeds of the labor of others. They seem to understand clearly, that to own land, is to own the services of the people who must have access to the land in order to live. This is why a land monopoly is more to be feared than other kind. ”

“ If nearly all bits of valuable lands be capital, as we have just seen strong grounds for believing, then it follows of course, that the Rent of leased lands whether for buildings or harvests is the same in nature with the Interest on money loaned, and is the measure of the service rendered by the owners to the actual users of the Capital. This proposition, seen in its radical proofs and in its logical corollaries, takes the very life out of Henry George's land-theories, and out of the popular remedies thereto annexed. ”

“ Considering the risks that are always attendant upon agricultural pursuits, and especially upon coffee-planting, the price of rough land must be acknowledged as absurdly high under the present conditions of sales. There is a great medium to be observed, however, in the sales of crown land; too low a price is even a greater evil than too high a rate, as it is apt to encourage speculators in land, who do much injury to a colony by locking up large tracts in an uncultivated state, to take the chance of a future rise in the price. ”

“ Though the bulk of the speculators bought lands at haphazard, certain parties who found favour at the government offices managed to secure the best lands which were for sale or location, before they were exposed to fair competition at the periodical public sales in the different districts. Thus a large portion of the wild lands in the colony were and are still held: the absentee proprietors profiting from the increased value given to their property by the improvements of the actual settlers, while they contribute little or nothing to the cultivation of the country. ”

“ Is the residue of thirty-one millions all refuse land? Who that is acquainted in the west can assert or believe it? No, sir; there is no such thing. The unsold lands are unsold because of the reasons already assigned. Doubtless there is much inferior land remaining, but a vast quantity of the best of lands also. For its timber, soil, water-power, grazing, minerals, almost all land possesses a certain value. If the lands unsold are refuse and worthless in the hands of the general government, why are they sought after with so much avidity? ”

“ Second, mere land ownership is only a part, though a vital part, of the problem. Many other important things have to be considered.
If a man has land, but lacks capital or credit, he is unable to make economic use of his land. If he has both land and capital, or credit, or in other terms purchasing power, but lacks access to sources of supply in which to buy seeds, breeding stock, and implements, he still is unable to make use of his land. If he has at hand all the needed implements, seeds, and stock, but lacks knowledge and experience in farming, he might entirely fail in his enterprise. ”

“ Nothing could be more prejudicial to their interests than for wealthy individuals to acquire large tracts of the public land and hold them for speculative purposes. The low price to which this land scrip will probably be reduced will tempt speculators to buy it in large amounts and locate it on the best lands belonging to the Government. The eventual consequence must be that the men who desire to cultivate the soil will be compelled to purchase these very lands at rates much higher than the price at which they could be obtained from the Government. ”

“ If I sell my land the purchaser receives in return for his money all those advantages which it required so many years of toil and danger to win—he pays for the sacrifices made by others in preference to going into the wilderness and making them himself. The market value of my land is a "labor product," just as my watch is a labor product, hence all this prattle about relieving industry of governmental burdens by any economic thaumaturgy whatsoever is the merest moonshine. ”

“ If this quietus was refused, these scamps would attend the sale, and bid the land up to some exorbitant price, knowing that their victim must be the buyer. Land once advertised by Government must be put up to auction; and the jobber's victim was obliged either to purchase, or to run the risk of having a stranger sit down as the proprietor of a few hundred acres in the midst of his thousands. ”

“ The alteration in the price of land, the large quantities lately offered for sale, with the shortness of money, will, I think, prove {270} extremely hurtful to some of the large speculators; but, in my opinion, will in the end be beneficial to the country at large, as it will oblige those who enter land to bring it into cultivation, instead of taking up large quantities, as it will now require a greater capital to speculate than it has hitherto done. ”

“ With a percentage of the profits from the use of the land, which is never burdensome to the tenant, it has been enabled, and has found it to its interest, to carry out agricultural and municipal improvements and enterprises which individual ownership would never undertake. It has drained our marshes, and reclaimed our desert lands in the most efficient manner, without the necessity of creating, as with you, an exacting monopoly, which would claim of industry its lion’s share of profits from the work. ”

“ The monstrous demand of twenty shillings an acre for crown-lands, has not only had the effect of deterring capitalists from embarking in so hopeless a speculation, but has grievously wronged the existing land-owners, by raising the price of labour. When land was sold at five shillings an acre, a fund was accumulated in the hand of the local Government that served to pay for the introduction of labouring emigrants. ”

“ Is it the duty of a possessor, even a possessor in bad faith, to change the state of the land from wild land to cultivated, farming land, for example, or to open and work mines of iron or copper or gold, so as to make as much out of the land as can be made out of it, and hand it over to the true owner? Does any such principle as this prevail in the law? We think not. The estimation of such undeveloped revenues is altogether too speculative a matter. ”

“ The greater ease of transferring landed-property in America and the greater mobility of our population have always made it more natural here than in Europe to look upon land as a capital investment. This view is now becoming more general as a result of the commercializing of farming enterprise. ”

“ Our ambassadors abroad are the mere pageants of mimic sovereignty. Is a violent and unnatural decrease in the value of land a symptom of National distress? The price of improved land in most parts of the country is much lower than can be accounted for by the quantity of waste land at market, and can only be fully explained by that want of private and public confidence, which are so alarmingly prevalent among all ranks, and which have a direct tendency to depreciate property of every kind. Is private credit the friend and patron of industry? ”

“ The other half must be shown, and will display the cultivation of the soil, in its immense exports, as giving birth to commerce and navigation, and supplying employment to all the trades and professions connected with these two grand branches of national industry; while the business of selling the land is a meagre and barren operation, auxiliary to no useful occupation, injurious to the young States, by exhausting them of their currency, and extending the patronage of the federal government in the complicated machinery of the land office department. ”

“ Besides, all that is alleged is that speculation keeps a certain amount of land in America out of the market. In other countries it suffers from a contrary reproach. The evil of the bandes noires of France and the Landmetzger of Germany is their excessive activity in bringing land into the market, by which they have aggravated the pernicious subdivision of estates that exist. ”

“ The adoption of this scale of augmented upset prices has been a complete annihilation of the land fund; neither the profits of sheep farming nor agriculture can ever justify the investment of capital in land at these prices; nor do your committee believe that any capitalists will ever be induced to emigrate from the mother country whilst such a system regulating land sales is in force. ”

“ Still, the aristocratic pyramid is incomplete until the soil and profits from cultivation [165] are owned and controlled by the “systematic and satisfactory management of a ‘land trust.’”
It is manifest now that wealth is seeking unusual investments in farming lands by the money kings of Europe and America, when a single lord of England can own three million acres in the heart of the most fertile section of the United States, and have his rack-rents sent to Viscount Scully, in Europe. Sir Edward Reid owns two million acres ”

“ If it had been added that far the greater part of the land was bought on speculation, in order to sell again at an enormous advance to expected immigrants—that a small number of men, having a large command of capital, attempted a monopoly with this object, and that this speculation failed—that while the land yielded no return, the interest on the borrowed. ”

“ Such purchases, however, are almost everywhere extremely desirable, there being hardly any country in which landed property is not either too much or too little subdivided, requiring either that great estates should be broken down, or that small ones should be bought up and consolidated. To make land as easily transferable as stock, would be one of the greatest economical improvements which could be bestowed on a country ”

“ Formerly land was sold to foreigners, but for a great many years it has been the policy of the government to sell no land whatever to either Europeans or Asiatics, but to lease it for seventy-five years or less. I was surprised to find that the natives own considerably more than twice as much as foreigners hold under lease or deed, and that land, the product of which must be sold to the government at a fixed price, has been reduced to 300,000 acres. ”

“ These measures will keep land ownership in subjection.
The aristocracy of the Goys, which as a matter of heredity is unable to be satisfied with small things, will soon be ruined.
At the same time it is necessary to patronize trade and industry vigorously, and more important, to encourage speculation, whose function is to act as a counterbalance to industry. Without speculation, industry will increase private capital and tend to the amelioration of land ownership by freeing it from indebtedness created by the loans granted by agricultural banks. ”

“ They all knew that out-of-doors there was from time to time a great outcry raised about what was called the "monopoly of land", and, in support of that cry, the wildest and most reckless exaggerations and mis-statements of fact were uttered as to the number of persons who were the actual owners of the soil. ”

“ They profit by the settlers' failures, for each settler adds something to the improvement of the land before the conditions of the land-purchase contract which he is unable to meet compel him to leave the land. The land shark sells the land to a new settler for a still higher price, capitalizing the improvements made by the former settler. ”