OPENING UP THE LAND 129 



on these large, isolated tracts still further increased 

 their value. The war with the Maoris, causing a 

 debt of several million pounds, was fought merely 

 to secure more lands for the monopolists — at least, 

 that was the result. Absentee landlordism flourished 

 and an exodus began to take the place of immigra- 

 tion into the colony. Although New Zealand could 

 have supported 10,000,000 people easily, it found 

 itself with a scarcity of land for 750,000. Companies, 

 banks, and speculators had secured control of the 

 resources of the countiy. The landowners, more- 

 over, had devised a system of taxation that bore 

 heavily on improvements and very lightly on land 

 values. 



The small farmers were incensed at having to 

 pay more taxes for eveiy improvement made while 

 the great landowners who made no improvements 

 went free. It is true that in 1878 Sir George Grey 

 had introduced the land tax into New Zealand, but 

 it was soon repealed and replaced by the sort of 

 property tax the landowners wanted. Neverthe- 

 less, the efforts made by Grey bore fruit, and thirteen 

 years later he declared New Zealand to be the first 

 country to have a fair land tax.^ 



The first step toward a land tax was taken in 



1892 and was very cautious. The legislation of this 



and the following years aimed to prevent future 



monopoly in land and to break up by purchase, 



» N^est England, Henry D. Lloyd, pp. 121, 134, 138. 



