INTEREST-BEARING FUNDS INJURIOUS 261 



are not directly remunerative, it may be replied that this 

 is usually because the benefit of such works is allowed to 

 be absorbed by individuals instead of accruing to the 

 community. This is because individuals possess the land 

 in our towns and cities, and every sanitary improvement 

 effected at the public expense increases the value of this 

 land. In fact, no public improvement of any kind can be 

 made in a city without increasing the value of the land, 

 so that there is a double motive in urging on costly, and, 

 perhaps, unnecessary improvements jobs are effected by 

 financiers and contractors, while the owners of land know 

 that, however much the ratepayers may suffer, they are 

 sure to be benefited. Here is surely another indication 

 that the land of every municipality, or other local com- 

 munity, which grows in value owing to the increase and 

 the expenditure of the whole population, should belong to 

 the community and not to private individuals. 



The subject, however, which we were more particularly 

 considering was the doing away with those funds and 

 investments by which money is made to produce a 

 perpetual income. Now, when, as in Guernsey, there 

 was no permanent debt created and no interest paid, there 

 was no " stock " to speculate in and no income derivable 

 from it. Here, then, we have a double advantage over the 

 usual mode of creating interest- bearing debts, which 

 indicates that we have discovered an important principle 

 which is applicable to almost every case of public 

 improvement. Let us take the case of railways, for 

 example. These are usually constructed under legislative 

 acts, empowering a company to take the necessary land to 

 build the line and to work it for the profit of the -share- 

 holders. This plan has led to the greatest possible 

 amount of mischief. Lines have been made where not 

 wanted ; speculation to an enormous extent has been 

 encouraged ; huge monopolies have been created ; share- 

 holders by thousands have been ruined ; while the thing 

 least considered has been the general interest. During 

 the last great American railway mania it has been 

 estimated by Mr. Atkinson that railway-construction went 

 on four times as fast as the increase of produce to be 



