CLOSER SETTLEMENT IN BRITAIN.

Nelson Evening Mail, Volume XLVII, Issue XLVII, 11 April 1912, Page 6

CLOSER SETTLEMENT IN BRITAIN.

breaking up of estates RECOMMENDED.

One of the great terrors of the tenant farmer in the Old Country is the anxiety regarding his position on the death ot tne landlord or any change' in the ownership of the land. JLess ttian a year ago the Department of Agriculture set up a committee to report on the subject, and it has now made some interesting recommendations. The main interest is in the suggestion that Sir Edward Holden's scheme of State-aided purchase ; should be adopted, with a supplementary scheme of actual State purchase. j The committee satisfied itself (says the j report) that an abnormal number of es- j tates are being broken up and sold at | the present time, sales of agricultural land in 1910 having amounted to one and a half million sterling, and last year to over two millions sterling, and that the tendency to break up agricultural estates is likely to continue. Most of the witnesses expressed the opinion that the tendency was partly due to a feeling of apprehension among landowners as to the probable course of legislation and taxation in regard to land. The committee are disposed, however, to think that there may be other factors in bringing estates into the market. The evidence goes to prove that, in certain parts of the country, land is at present let at rents below its present economic value. With a certain amount of increased agricultural prosperity and the consequent demand for agricultural land for occupation purposes, landlords might be disposed to increase rents, but many find it preferable to sell. Then, again, many agricultural estates are mortgaged more or less heavily, and at present prices a sale will often enable the vendor to pay off the mortgages and to retain an income in excess of what he has been receiving as owner of the land. Landowners have, in many cases, been content with a comparatively small return on their capital, partly in consideration of the social position and amenities conferred by ownership. Many owners, too, finding they are now in a position to sell to advantage, are relieving themselves of these responsibilities. "The percentage of cases in which a sale results in the dispossessipn of the tenant is small at present. . . . and it would be impossible to maintain. . . • • that the grievances, however acute in individual cases, are widespread .... only a very small percentage of the tenant farmers in England Wales have so far been affected." Though the Committee believes that, generally speaking, a reasonably long notice to quit should be given- to the tenant, yet it holds that great care should be taken not to impart the landlord's right.of resumption of land at short notice for industrial and building purposes. Dealing with the question of a scheme of State-aided purchase, the Committee state:—"Of all the remedies which were advanced by the witnesses which came before the committee to alleviate the grievances under which the tenant farmer was alleged to be suffering, none was advocated so strongly as a scheme by which the tenant should be enabled to purchase his farm by the advance of money by the State. The Committee have endeavoured to keep in view four main requirements which should be satisfied before it is possible to recommend its adoption. The primary requirement is to ensure as far as possible that no loss should be incurred by the State. Although the tenant farmer is eager to take advantage of State credit of which he would have the benefit, it is, the Committee think, clearly understood that any scheme must be conducted on commercial lines, and that the State should oe safeguarded in every possible way. The second consideration is that care should be exercised in selecting the tenants to whom advances should be made. Care must be taken also that the purchase price to be paid for the farm in 110 case exceeds the proper market value of the property, and, fourthly, the scheme should be framed in such a way as to ensure that the annual payments in respect of interest on the loan and the sinking fund for its repayment shoul|d ijot exeqed; fan 'fmount which the larmer can afford to pay. The Committee have come to the conclusion that the proposal put before them by Sir Edward Holden, Bart., a J member of the Committee, complies with the requirements mentioned. The scheme provides for the establishment of a i.and Bank or Institution to lend money to the farmer to enable him to purchase his holding. It is proposed that the directorate of the institution should consist of representatives of three Departments of the State, the Treasury, the Board of Agriculture and Fisheries, and the Board of Trade —a member of the Government, an agricultural land agent, two practical bankers, and a practical farmer. An advisory comI mittee should be set up in each of tha different districts where land is likely to come into the market. It is recommended that the State should advance the sum of £500,000 to constitute the capital of the bank or institution, which will pay the State 3 per cent, interest on the loan,, this interest to be cumulative. The institution will then • lend to the farmer four-fifths of the purchase money, to be repaid by annual instalments spread over a period of 75 years, or such period a3 may be arranged between the purchaser and the institution. Additional money will be obtained when necessary by the issue of bonds to carry interest at 3 per cent., or such a rate of interest as would cause them to be token up whenever issued.