THE REFORM OF THE LAND TAX II3 



cessit^^ of making new and improving old roads cannot be questioned, for 

 all the agricultural congresses untiringly insist on this point. For want 

 of fixed resources for this end the public authorities have not hitherto 

 been able to give the needed continuity to their roadmaking enterprise. 

 The topographical conditions of Uruguay are very unfavourable to it, owing 

 to the considerable number of watercourses which roads must cross and 

 which must increase the costs of construction and maintenance. When a 

 system of roads and paths has been established in all districts the transport 

 of products will be facilitated and rendered infiniteh' less costly, and the 

 value of the lands therefore increased. Under the system of districts 

 the eighteen departments within the scope of the new law, which have an 

 area of 17,064,865 hectares of rural land, disposed of only § 370,594 for 

 bridges and roads, the employment of tliis sum being regulated by admin- 

 istrative economic commissions. Under the new system the sum accru- 

 ing to these commissions will be about -S 700,000, partly destined for the 

 improvement of local roads. In addition about $ 350,000 a year will, as 

 has been said, form the nucleus of a special permanent fvmd for bridges 

 and roads, and this sum will increase proportionately with the increasing 

 value of the lands. 



§ 2. Breedin'g and the tax on reae estate. 



Before becoming law the scheme for reforming the land tax gave rise 

 to the most lively discussion and was the object of many criticisms, 

 especially on the part of stock breeders. These considered that the rate 

 at which it was proposed that they should pay aggravated their burden, 

 although breeding, the " mother industry " of the country, was already 

 heavily taxed. 



The government did not not fail to examine the objections submitted by 

 the stock breeders, who contribute very largely to the wealth of the country, 

 and replied to them by giving precise data which allowed their partici- 

 pation in public burdens to be exacth' estimated. 



On referring to the table giving the rise in the value of lands, it is seen 

 that in ten years the capital represented by land has increased by 600,000,000 

 pesos. The 6 % per thousand contribution of real estate did not follow the 

 growth in the value of real estate, and was still calculated on $423,000,000 

 instead of on .$ 1,069,270,500 in 1913, and on a little less than $900,000,000 

 in 1915. Thus the land tax represented a total annual burden of about 

 is 2,730,000. 



The contribution of breeding to public and municipal revenue is re- 

 presented by the export duty (i), as well as the land tax : namely bj' the port 



nient . 



i) The pri) luct^ ot the frceziny iiuhislry are (.xempted in onkr In tncnuragc its develop- 



