TRANSACTIONS OF SECTION F,. 469 
adequate supply of light and air. ‘his means larger building sites at the old 
prices. ‘here is a constant definite proportion between ground-rent and total 
rent. On small house property ground-rent equals one-sixth of whole. Cost 
of site is composed of (1) interest on capital; (2) price of land; (3) cost of 
development. 
(1) Znterest on Capital.—This is of prime importance. Every 1 per cent. 
on capital represents about 1s. per week on each small house : hence the necessity 
for cheap capital, which is unobtainable unless the town-planning scheme is 
commercially sound. 
. (2) Price of Land.—The supply of land available for building is severely 
limited by the fact that communication is not provided by public bodies except 
to developed areas, and builders are only willing to build near to such communi- 
cations. In the vicinity of all centres there is land of low value due to lack of 
communication. 
Town-planners must increase supply of building land by opening up cheap 
land and at the same time restricting building density, thereby preventing 
undue rises in Jand values. The value of land is governed by its use. Land- 
owners should be met by allowing economical estate development and encourag- 
ing quick development, and should be given economic incentive to develop by 
rating land on selling price, not merely on present income. Overcrowding 
should be avoided by restricting building density, and, in justice to landowners 
assessors must recognise that restriction of building density reduces land values. 
Main arteries should be cut, opening up new districts through back land, avoid- 
ing purchase of costly frontages. Sufficient width should be allowed hebween 
forecourts, but only a small width of macadam should be laid, completing with 
tree-planted grass margins and inexpensive pathways. Under common-sense 
town-planning building density is calculated per gross acre, and therefore it 
will not cost landowners anything to give the land for these roads; it will pay 
them to contribute handsomely towards the cost of construction. 
(3) Cost of Development.—Cheap land is no good without rational develop- 
ment. Necessities must be provided before luxuries are considered. Light and 
air are more important to health, and much cheaper than magnificent architecture 
and extravagant engineering in the way of unnecessary sewers, kerbs, and 
gutters. The main objective of those primarily responsible for the 1909 Act was 
to reduce cost of town and estate development. Most town-planning schemes 
since published increase this charge instead of diminishing it. Unless care is 
taken, town-planning will result in worse living conditions instead of better— 
vide Paris and Berlin. Extravagant development raises rents, and makes decent 
living conditions economically impossible except for the favoured few, Harmony 
can be achieved without reckless expenditure. The City Beautiful is of no 
practical use unless it be also. a City of Common-sense, providing healthy homes 
for all classes. 
TUESDAY, AUGUST 1s. 
The following Papers were read :— 
1. The Australian Democracy and its Economic Problems. 
By F. W. Eaaieston. 
The reputation of Australia as a scientific laboratory of social and economic 
experiments is to a large extent undeserved. The many departures made in 
Australia from the traditions of economic thought were not undertaken as part 
of a deliberate scientific enterprise. Nor have the results been subjected to 
that criticism which would satisfy an economist. In watching the development 
of the Australian democracy one has to realise that the process has been 
dominated by political considerations almost entirely. In order to better social 
conditions, legislators have disregarded the accepted rules of economics, and have 
invoked the power of the State. The basis of their policy has been the belief 
that the political power could provide some substitute for the forces which under 
ordinary circumstances go to make social conditions. 
