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we have the total growth in rental caused by building operations very accurately ascertained. Errors of valuation no doubt occur; but these may be assumed to balance each other; and no one can pretend that London is, on the whole, even now over-assessed. Any additional growth must have been due to intensified demand for existing buildings, caused by increasing population, by the advance of London as an industrial centre, and by the helpless condition of the London poor. All landlords do not benefit equally, and the increase is, moreover, divided between freeholders, copyholders, leaseholders, tenants in "beneficial occupation" and other varieties of the landlord class; but from the point of view of the community at large this annual net increase is a real "unearned increment. How much it amounts to, the table given below, compiled from official figures, will shew.

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Table showing the gross valuation of the Metropolis from 1870_to 1891, with the increase each year, distinguishing between that caused by new buildings and that due to rise in value. Compiled from Local Government Board for 1891, c-6460, and County Council Report.

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What it Amounts to.

The total unearned increment" during this period is thus seen to have been £7,154,844 in annual rental, representing a saleable value of over

ONE HUNDRED AND TEN MILLIONS STERLING.

It amounts to over one-sixth of the total saleable value of London. This is what we have deliberately allowed the London landlords to receive, over and above their former annual tribute, during the short space of 25 years. This is the princely gift of the London worker to the London landlord. And it still goes on. Although now less than before in the centre of London, it is larger than ever in the suburbs.

What We Might Have Done With It.

Let us see what we might have done with it if we had listened to the political economists, who warned us that it would happen. If the existing land tax of four shillings in the pound had, in 1870, been levied on the landlord at the current valuation (instead of upon that of 1692) it would hardly have deprived him of any of his then income; his total payments would have been only slightly in excess of the unearned increase brought to him by London's growth. During the last 25 years about £110,000,000 has been levied in London by rates. If the landlord had been compelled to pay every farthing of these rates (in addition to anything he may now indirectly bear) he would be as well off now as he was 25 years ago.

What We Might Now Do With It.

The average rise of London valuation (on unimproved buildings) is seen to have been about one per cent. on the average valuation. Even allowing for increased accuracy in assessment, this annual rise in rent represents an annual addition to the saleable value of the property of about £4,000,000. This is our annual "New Year's Gift (in addition to the £40,000,000 annual tribute of rent) to those who do us the favour to own London. The total rates levied annually amount now to over £7,500,000, and must inevitably increase with the growth of social compunction, and the extension of corporate activity. Would it be anything but bare justice to absorb, in order to meet this deficit, the whole of the £4,000,000 annually added to the value of London? If, to begin with, the rates were divided between owner and tenant, the resulting landlord's rate of half-a-crown in the pound on the "rateable value" would realise about this amount. It should be deductible from the rent in the manner in which the "property tax" (Income Tax, Schedule A) is now deducted, "any agreement to the contrary notwithstanding."

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London's Ground Rent.

One suggestion may be added. If the £17,693,000 total increase in London's rental value during 25 years of enormous building operations is divided so that £10,538,160 is due to them and £7,154,844 to unearned increment," we may hypothetically infer that a similar proportion holds good of the total rental value. In that case, out of the annual rental of £40,000,000, we may estimate that £24,000,000 is for buildings, and some

£16,000,000 FOR GROUND RENT ONLY.

This amount, which comes to about eight shillings per week per family, is what we pay for permission to use the low hills and marshes by the Thames on which London is built. How much were these worth before London grew there?

A "Municipal Death Duty" of only ten per cent. upon the value of the real estate in London, whenever transferred by death, would yield three millions a year; more than enough to pay all the expenses of the London School Board and County Council put together without the need of any rates at all for these authorities.

THE

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HE FABIAN SOCIETY consists of Socialists. A statement of its Rules, etc., can be obtained from the Secretary, at the Fabian Office, 276, Strand, London, W.C. Also the following publications:

"FABIAN ESSAYS IN SOCIALISM.”

Library Edition, 6s.; or direct from the Secretary for Cash, 4/6 (postage, 4hd. Cheap Edition, published by Walter Scott, Paper Cover, 18. Cloth, 28. At all booksellers, or post free from the Secretary for 1s. and 2s. respectively.

FABIAN TRACTS.

No. 1, Why are the many Poor ? No. 12, Practicable Land Nationalisation. No. 13, What Socialism Is. No. 16, A Plea for an Eight Hours Bill. No. 19, What the Farm Labourer Wants. No. 20, Questions for Poor Law Guardians. No. 22, The Truth about Leasehold Enfranchisement. No. 24, Questions for Parliamentary Candidates. No. 25, Questions for School Board Candidates, No. 26, Questions for London County Councillors. No. 27, Questions for Town Councillors. Each 4 pp., 6 for Id., or 1/- per 100.

Tracts No. 5, Facts for Socialists. No. 7, Capital and Land. No. 9, An Eight Hours Bill. No. 11, The Workers' Political Programme. No. 14, The New Reform Bill. No. 15, English Progress towards Social Democracy. No. 17, Reform of the Poor Law. No. 23, The Case for an Eight Hours Bill. Each 16 pp. or 20 pp., 1d. each, or gd. per dozen.

No, 29, What to Read, a list of Books for Social Reformers. 3d. each, or 2/3 per dozen. THE FABIAN MUNICIPAL PROGRAM

No. 1 (Tract No. 30) The Unearned Increment. No. 2 (Tract No. 31) London's Heritage In the City Guilds. No. 3 (Tract No. 32) Municipalisation of the Gas Supply. No. 4 (Tract No. 33) Municipal Tramways. No. 5 (Tract No. 34) London's Water Tribute. No. 6 (Tract No. 35) Municipalisation of the Docks. No. 7 (Tract No. 36) The Scandal of London's Markets. No. 8 (Tract No. 37) A Labor Policy for Public Authorities. Each 4 pp., the eight for id., or Is. per 100. Also (Tract No. 8) Facts for Londoners, 6d. each; or, 3s. per dozen. (Tract No. 10) Figures for Londoners, 6 for id.; or, Is. per 100.

The whole Set Post Free for Two Shillings.

GEORGE STANDRING, Printer, 7 & 9, Finsbury Street London, E.

The Fabian Municipal Program

No. 2.

LONDON'S HERITAGE

IN THE CITY
CITY GUILDS.

One of the greatest obstacles to Social Reform in London is the crushing burden of the rates. Many a good work is stopped because there are no funds. Yet a property worth at least £20,000,000, clearly belonging to the people of London, is now secretly administered by the 1,500 members of the self-appointed "courts of assistants" of the seventy-four "livery companies," the ancient trade guilds of the City of London. The total income of these companies (besides their valuable halls, plate, etc.) is at least

£750,000 A YEAR,

derived mainly from land and house property in London and elsewhere. They are, indeed, among the very largest of London's ground landlords. About a quarter of this income is devoted to special charitable trusts; some good-such as schools, almshouses, pensions to the aged, etc.-but needing democratic control; and some bad, such as pauper doles, City lectureships, etc. The balance of the companies' income, about £600,000 a year, is their corporate property, and is regarded by the members as being at their own disposal. Accordingly, whilst generously contributing about half of it to various public purposes (schools, technical education, charities, etc.), they divide the rest practically among themselves, about £175,000 a year being devoted to "management and maintenance," a large portion of it paid to the 1,500 members of the respective "courts of assistants" in fees for their attendance, about £100,000 consumed in banquets, and about £60,000 in salaries of officers, etc. This is how some of the largest and worthiest of these Companies admitted to a Royal Commission in 1879 that they spent their money :

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TABLE SHOWING THE CORPORATE AND TRUST INCOME OF THE LONDON LIVERY COMPANIES, 1879-80.

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Summarized from Royal Commission Report, c-4073, Vol. iv. (last lines added.)

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