136 TWELFTH REPORT. 



of living are the "iueremeiit tax" levied on increasing rents rather than 

 an increasing land values, increasing the tax rate on land rents, taxa- 

 tion of franchises and of rights of way, the regulation of rates, fares 

 and prices, and governmental ownership of jmblic utilities and indus- 

 tries. The taxation of land rents and of monoi)oly returns will enable 

 the tax rate upon improvements and upon other forms of capital invest- 

 ment to be reduced or eliminated; and the expenses of production Avill in 

 turn be reduced. Lands and resources which are now Avithheld from use 

 would be utilized if these forms of taxation were introduced. Forms of 

 rent due to monopoly privileges, forced gains and the like may be re- 

 duced, eliminated or absorbed thru proper governmental action. 



Obviously, differential rents cannot be legislated out of existence; 

 but differential rents may be utilized to pay the ordinary expenses of 

 government and to extend the activities of government. In short, dif- 

 ferential rents may be utilized to increase real wages. "Real wages" 

 in the accepted technical sense means the sum total of the necessities, 

 comforts and luxuries purchased with the money received as wages by 

 the wage earner. But this definition is too narrow. Real wages con- 

 sists not only in the goods and services purchased with the money wage; 

 but also in the services rendered to the individual by the community. 

 The real wages of individuals may be increased or the cost of living 

 lowered by furnishing at small or no expense to the consumer, the ser- 

 vices of the public schools, libraries, parks and of the health depart- 

 ment, and such, commodities and services as water, gas, electric light, 

 telephone service, transportation, milk and baked goods. 



Albion College, Mich., April, 1910. 



