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LAND

NATIONALISATION

ITS NECESSITY AND ITS AIMS.

BEING A COMPARISON OF THE

SYSTEM OF LANDLORD AND TENANT

WITH THAT OF

OCCUPYING OWNERSHIP

In Their Influence on the Well-Being of the People.

BY

ALFRED RUSSEL WALLACE,

AUTHOR OF "THE MALAY ARCHIPELAGO," "ISLAND LIFE," ETC., ETC.

THIRD EDITION.

WITH APPENDIX ON THE NATIONALISATION OF HOUSE PROPERTY.

LONDON:

W. REEVES, 185, FLEET STREET

(Depôt for Literature on Land Nationalisation.)

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TABLE OF CONTENTS.

		PAGE
CHAPTER I.	—On the Causes of Poverty in the Midst of Wealth:—Increase of the Value of Land during the Present Century—Great Increase of our Wealth—Pauperism does not diminish in Proportion to our Increasing Wealth—Failure of our Social Organisation—Increase of Labour-saving Machinery and the Utilisation of Natural Forces—The Anticipated Effect of Man's increased power over Nature—The Actual Effect—How to discover the Cause of our Social Failure—Why Great Wealth is often injurious—Accumulated Wealth may be Beneficial or the Reverse—How Great Accumulations of Capital Affect the Labourer—The Nature of the Remedy Suggested—Scope of the Present Inquiry	1—20
CHAPTER II.	—The Origin and Present State of British Land-Tenure:—Antiquity of our Present System causes it to appear a Natural One—Antiquity of a System no proof of its Value—Origin of British Land-Tenure—Characteristics of the Feudal System—Growth of Modern Landlordism—The Legal Powers Exercised by Landlords—Our Land-system is a Modified Feudalism, in which the Landlords have thrown their Burdens on the People, whose Rights in the Land they have absorbed.	20—30
CHAPTER III.	—A Few illustrations of Irish Landlordism:—Ireland affords Examples of all the Evils that arise from Private Property in Land—Origin of Irish Landlordism—Tenant-right Confiscation by Landlords—Condition of the Irish Cottier—Facts in Possession of the Legislature for Thirty Years—The Devon Commission, 1847—The Government neglects its First Duty—Evictions after the Famine—Suggested Remedies for Irish Distress—Continued Blindness and Incompetence of the Legislature—Tremendous Power of Agents over the Tenants—The Condition of the People under Irish Landlordism.	30—51

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CHAPTER IV.	—Landlordism and its Results in Scotland:—Chiefs and Clansmen in the Highlands—Highland Chiefs changed into Landlords—Character of the Highland Tenantry Eighty Years ago—The Change effected by Landlords and Agents—The Story of the Sutherland Evictions—Other Examples of Highland Clearances—Wide Extent and Long Continuance of these Clearances—They were exposed and protested against in vain—Continuance of Highland Clearances and Confiscation down to this Day—These Evils inherent in Landlordism—An Illustrative Case—The General Results of Landlordism in the Highlands—Further Clearances and Devastation for the Sake of Sport—The Gross Abuse of Power by Highland Landlords requires an Immediate Remedy—Landlordism in the Lowlands of Scotland: Condition of the Labourers—The Cause of this State of Things is the Landlord System—General Results of Scotch Landlordism.	51—96
CHAPTER V.	—The Economical and Social Effects of English Landlordism:—Landlordism in England is seen at its best—Despotic Power of Landlords—Landlords' Interference with Religious Freedom—Landlords' Interference with Political Freedom—Landlords' Interference with a Tenant's Amusements—Eviction of the Inhabitants of an Entire Village—Injurious Power of Landlords over Farmers and over Agriculture—Limitation of the Beneficial Influence of Landlords—Whatever Beneficial Influence Landlords exert would be Increased under Occupying Ownership—Supposed Importance of the Large Farms which Landlordism favours—The Effects of Landlordism on the Well-Being of the Labouring Classes—Deterioration of the Condition of the Agricultural Labourer during the Present Century—The Social Degradation of the Agricultural Labourer at the Present Day—This State of Things is due to the System of Landlordism, not to the Bad Conduct of Landlords—The Enclosure Act and its Results—Uniform Evidence as to the Beneficial Effects of Allotments and Cottage Gardens—Beneficial Effects of Small Cottage Farms—The Logical Bearing of this Evidence—Various Powers exercised by Landlords to the Detriment of the Public—Free Choice of a Home essential to Social Well-Being—Characteristics of a good System of Land-Tenure—Enclosure of Commons and Mountain Wastes as affecting the

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	Public—The Destruction of Ancient Monuments—Public Improvements checked by Landlordism—Permanent Deterioration of the Country by the export of Minerals—Concluding Remarks on English Landlordism.	97—134
CHAPTER VI.	—The Results of Occupying Ownership as Opposed to those of Landlordism:—Summary of the Evils of the Landlord System—Occupying Ownership defined—The Advantages of Occupying Ownership—Results of Occupying Ownership in Switzerland—Co-operation of Occupying Owners in Norway—Occupying Ownership in Germany—Admirable Cultivation under Occupying Ownership—Improvement of the Soil under Occupying Ownership in Belgium—Effects of Occupying Ownership in France—The Labourers of France under Occupying Ownership—Results of Occupying Ownership in the Channel Islands—General Results of Occupying Ownership and those of Landlordism Compared—Results of Landlordism in Italy—Results of Landlordism in Spain and Sardinia—The Occupying Owner under Extremely unfavourable Conditions—Large Farms versus small not the Question at Issue—Various Objections to Peasant Proprietorship answered by Facts—The Final Argument in Favour of Landlordism shown to be unsound—Beneficial Influence of Ownership on Agriculture—The Conclusion from the Evidence	135—164
CHAPTER VII.	—Low Wages and Pauperism the Direct Consequence of Private Property in Land:—Progress and Poverty—Labour, not Capital, the First Mover in Production—Industry not Limited by Capital but by restricted Access to the Land—Interest determined by Land Monopoly and Rent—Capital and Labour not antagonistic—Progress of Society causes a Rise of Rents—Private Property in Land produces an Inequitable Division of Wealth—Speculative Increase in Land-values—Mr. George's Work supplements and enforces the Results arrived at in the Present Volume	165—174
CHAPTER VIII.	—Nationalisation of the Land Affords the Only Mode of Effecting a Complete Solution of the Land Question—Summary of the preceding Chapters:—The Contrast of our Wealth and our Poverty amazes all Foreigners—Our Poverty and Pauperism persists notwithstanding the most favourable Conditions—The Irish Landlords follow the Teachings of Political

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	Economy—Effects of Landlordism in the Highlands and in the Lowlands of Scotland—The Despotic Powers of English Landlords—The complete and overwhelming Mass of Evidence in Favour of Occupying Ownership—The Remedies proposed—Free Trade in Land shown to be comparatively Useless—Mr. Kay's Arguments in support of Free Trade in Land — Small Landed Estates are constantly absorbed by Great Ones—Free Trade in Land would not help either the Tenant or the Labourer—Nationalisation of the Land the only Effective Remedy—Occupancy and virtual Ownership must go together—To Secure this the State must be the real Owner or Ground-Landlord—The State must become Owner of the Land apart from the Improvements added to it—Mode of Determining the Value of the Quit-rent and of the Tenant-Right—How Existing Landowners may be compensated—Alleged unfairness of Compensation by means of Terminable Annuities—How Tenants may become Occupying Owners—Subletting must be absolutely prohibited—Evils of Subletting in Towns—Mortgaging should be strictly limited—Whether any Limits should be placed to the Quantity of Land personally occupied—Supposed Objections to Land Nationalisation—Mr. Fowler's Objections—Mr. Arthur Arnold's Objections—Mr. G. Shaw Lefevre's Objections—The Hon. George C. Brodrick's Objections—Mr. J. Boyd Kinnear's Objections—How Nationalisation will affect Towns—Free-Selection of Residential Plots by Labourers and Others—Objections to the Right of Free-Selection—Why Free-Selection should be restricted to Once in a Man's Life—Free-Selection would check the growth of Towns, and add to the Beauty and Enjoyability of Rural Districts—How Commons may be preserved and Utilised—How Minerals should be worked under State Ownership—Progressive Reduction of Taxation—Abolition of Customs and Excise—Summary of the Advantages of Nationalisation—Summary of the Evil Results of Landlordism—Conclusion.	175—233
APPENDIX		234

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APPENDIX.

ON THE NATIONALISATION OF HOUSE PROPERTY.

IT has been already intimated (see p. 215) that house property may be advantageously dealt with on the same general principles as the agricultural land of the kingdom, but details were avoided, because it was felt that this part of the scheme was beset with exceptional difficulties and was open to many objections. A fuller consideration of this subject, after reading the criticisms to which my proposals have given rise, and after discussion with friends who consider the crucial test of the practicability of land-nationalisation to be its applicability to towns, enables me now to treat it more fully; and I therefore propose to indicate a method by which it may be effected. I wish however clearly to state that the proposals which follow are put forth as suggestions—not as the only method by which the problem may be solved. They will, at all events, serve to show how nationalisation can be applied in towns, and will thus afford an answer to the cry of "impracticable" which is always raised if no workable plan is sketched out.

The State should resume possession of Agricultural Land first—of land occupied by house property, &c., at a later period.—Much consideration of the effects likely to follow nationalisation have convinced me of the importance of this proposition. When all the agricultural and waste lands of the kingdom are resumed by the State

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and rendered available for personal occupation in the manner indicated in the latter part of Chap. viii. (pp. 192-224), there will inevitably result an outflow of the congested population of the large towns into the country. All villages and small towns which have long remained in an almost stationary condition, owing to the impossibility of obtaining land from the great landlords, will at once start into healthy life and growth. Numbers of persons who have been hitherto unable to obtain a country residence with a few acres of land in the district of their choice, except perhaps at an exorbitant price, will, so soon as land is obtainable everywhere, build houses for themselves, and thus there will arise a large demand for labour and a considerable extension of trade all over the country. Many labourers, mechanics, and small tradesmen, who have left their native town or village and are struggling vainly to earn a living in some great town, will then be able to return to their former homes, attracted both by the fresh demand for labour and by the enormous boon of being able to obtain plots of land at low rents and on a permanent tenure. The effect of this outflow of population will undoubtedly be, that rents and house property generally must fall in value considerably below the monopoly prices they have hitherto commanded. On the worse class of houses the fall will be considerable, on the better class probably little if any. Numbers of houses will become temporarily vacant, while the worst of all will have to be destroyed as uninhabitable.

Some of the evils of land-monopoly in towns will thus be removed merely by the free access which nationalisation will afford to rural land; but other evils will remain, and in order to remove these it will be necessary for the State or the Municipality to become the sole ground-landlord, while every householder should be able, if he desires it, to obtain possession of his house or premises on the easiest terms. The most convenient arrange-

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ments, and those best adapted to secure the full benefits of nationalisation to the entire community will probably be somewhat as follows:—

How House property may be dealt with.—When the free-selection of rural land for dwellings, the opening up to cultivation of the more extensive wastes, and the subdivision of large farms, have brought down ground-rents in towns to their true value (which may perhaps be effected in about ten years after the complete nationalisation of agricultural land), the entire house-property of the country will be in a condition to be advantageously dealt with on the principles already laid down in this volume.

Application being made by any person desirous of purchasing his house and premises, the local Land Court (established to carry out nationalisation) will cause a valuation to be made of the property, separating the value of the ground-rent from that of the buildings or other improvements on the land, and the occupier will then be entitled to purchase the latter, either by payment of the amount of the valuation or by means of a terminable rental extending over a period not exceeding, say, fifty-five years; and on paying this amount or this rental, as well as the annual ground-rent, he would become the virtual owner of the dwelling-house or premises. Persons who do not wish to purchase their houses might remain as tenants, but in this case the Municipality or the local Land Court would become the landlord, receiving the rents from the tenant and applying them to the payment of the terminable annuity awarded to the former landlord in lieu of ground-rent and also in liquidation of the amount at which the buildings, &c. upon the land have been valued. The terminable rental by which this last is to be paid would be always so adjusted to the valuation as to secure the public from loss. In this way the Municipalities or other local authorities would gradually become possessors of large quantities of

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house-property which they would be always ready to sell at very low prices to any occupier desirous of purchasing them.

Additional powers of Municipalities.—In order to provide for the wants of an increasing population, every municipality should have power to take any land required for the use of its inhabitants, either for health and recreation, for the sites of public buildings, or for the erection of dwelling-houses, paying only the official valuation price. Thus the needs of every locality would be provided for without trouble, delay, or unnecessary expense.

Replies to some objections.—Some of my critics have objected that the complete stoppage of speculative building would be highly injurious to the community and ruinous to many builders. I reply to this, that people would still build houses, and that, owing to the land on which they must be built being so much cheaper, larger and better houses would be built than now, so that the building trade would not suffer, except in so far as it had already built beyond the needs, or in a style unsuited to the wants of the community. It will hardly be urged that people should continue to live in bad or unsuitable houses in order that builders may thrive.

Fear has also been expressed that many who require houses, but who have neither the means nor the inclination to build them, would suffer. But such a fear is quite groundless, for Society will, as it always does; adapt itself to new conditions; while failing other means of supply the local authorities will always be able to meet a public want. It must be remembered, too, that the large number of houses which, under the present system are always "to let," will have to be absorbed before there is really a pressing want of new houses. When most people own the houses they live in, and it becomes the general custom for houses to be built only when people require them, instead of by speculators on the chance of

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finding tenants (who often leave some other houses vacant), unoccupied houses will be comparatively unknown. It will then be perceived that the many thousands of houses now always standing empty represent a vast loss of capital entirely due to the system of speculative building arising out of landlordism.

Concluding remarks.—Without going into further details it has, I think, been now made clear that the principles of Land Nationalisation as developed in this work, can be applied to house-property as well as to agricultural land; and that by so applying them the ever-increasing value of ground-rents in populous centres which now go to enrich individuals and give them injurious power over their fellow-men, will, as the annuities to landlords expire, form an ever-increasing fund for the expenses of government, and will ultimately render other taxes as well as local rates, altogether unnecessary.