So, in spite of the favorable auspices, it seems that the climax of the "State Socialism," the transformation of the small farmer into a tenant of the State is not yet to be undertaken, either in the shape of land nationalization or in the taxing away of unearned increment.

And while the Australian Labour Party as an organization favors nationalization, a large part of those who vote for this party do not, and its leaders have felt that to have advocated nationalization hitherto would have meant that they would have failed to gain control of the government.

And in proportion as the new land tax creates new farmers, the prospects will be worse than they are to-day.
The existing land laws of New Zealand are extremely moderate steps in the direction of nationalization.

In 1907, after the best land had been taken up, a system of 66-year leases was introduced, but only as a voluntary alternative to purchase.

After 1908 the annual purchases of large estates were divided into small lots and leased for terms of 33 years, but this applies only to a relatively small amount of land.