gement of land speculation on a large scale
a further provision is made by the enactment of a further tax upon all
lands held by individuals or corporations of a value exceeding $25,000
clear of incumbrance. This is called the graduated land tax, and
provides for a farther taxation on all such lands, beginning at
one-eighth in addition to the original tax, and rising by advances of
an additional eighth for each sum of $25,000 at which the land is
valued, until a maximum rate of three times the original tax is
reached in the case of large estates. To provide for the risk of
vexatious opposition to valuations on the part of owners, there is a
farther provision that the government may at its option elect to
purchase, at an advance of ten per cent over the valuation objected
to, any unimproved land held in freehold. It is also a part of the
system that the government may compulsorily purchase at a valuation
any lands not in actual use in case any association of persons shall
apply to have this done, undertaking satisfactorily to take the land
upon its purchase under the conditions of perpetual lease, which of
course includes subdivision into small areas, with residence and
improvement.

By these means the people of New Zealand confidently expect to secure
the subdivision of the lands of the country into small areas; to
discourage to the utmost the holding of land by capitalists in
expectation of greatly increased values at the expense of the less
wealthy classes; to render practically impossible the establishment on
any extensive scale of private landlordism in respect of agricultural
lands; and gradually to substitute, as far as possible, the payment to
the state of a yearly interest on value, for the purchase of the
freehold in the land of the country.

So far as the experience of the last eight years, during which the
system has been in force, may be taken as a reliable guide, the
experiment shows many signs of success. It has certainly checked the
tendency to speculate in lands with a view to a rise in price, which
threatened to become a great, as it certainly was a growing, evil. It
has been found that it will not pay to do this in the face of
taxation, and particularly of the graduated tax; and owners of large
areas of land have developed a strong inclination to subdivide and
sell lands which they formerly were disposed to hoard and increase.
The power given to the government to purchase lands where the owners
have