112 ITALIAN SOMAWLAND - AGRICULTURAL ECONOMY IN GENERAL 



The government advanced about 25,000 liras for the first costs of set- 

 tlement, which sum had become 27,040 liras at the end of the first j^ear by 

 the accumulation of interest. The annual balance sheet of crops gave at 

 the end of the second year, as has been seen, a balance of 5,030 liras, and if 

 3,000 liras be deducted from this as the costs of subsistence and maintenance 

 a net profit of 2,030 liras remains. Admitting that the initial capital of 

 27,040 liras at the end of the second year should be amortized in 25 3^ears, 

 the corresponding annual instalment due would be 1,730.56 liras — a sum 

 within the balance quoted. 



On this system, and on the basis of the revenue of the holding calcula- 

 ted according to the criteria we have explained, the economic position of 

 the holding would be such as to give the colonist the purchasing power ne- 

 cessary to allow him to become a proprietor. An annual sum of about 300 

 liras would remain to his credit, and this added to the existing 3,000 liras 

 would bring the family budget up to 3,300 liras. 



In order however better to ensure the success of the experiment, and 

 to make it still more attractive, the governent might cede to the colonists 

 a third or more of the sum represented by the capital of initial settlement. 

 Thus the sum which the colonist would have to repay in order to become 

 owner of the property could be reduced, for instance, to 18,000 liras or even 

 less, according to the calculations we have shown. With a view to such a 

 measure an offer could be made to the colonist at the end of the experiment, 

 that is to say after three years if the experiment had given good results — 

 of the ownership of the property burdened with an annual due from 

 which he could free it by paying 4 per cent, on 18,000 liras — that is 720 

 liras. The case which we have reported would still be the basis of this plan. 



If it were executed the following cases might present themselves, and 

 they should be considered before an idea of the charges which the govern- 

 ment may have to support can be obtained. 



a) is^ hypothesis. — The enterprise entirely fails to reach its end in 

 the first year. The administration is therefore in the position of having ad- 

 vanced about 25,000 liras as costs of installation, and 7,166 liras as travelling 

 expenses, one year's maintenance expenses and the costs of working the 

 property ; and yet it does not consider seizing the colonist's initial deposit 

 in order to compensate for such losses. This h3q:)othesis of a catastrophe, 

 which is most improbable, since it is allowable to suppose that the installa- 

 tion would not constitute a complete loss, would entail an expense of 

 32,166 liras. 



b) 2nd hypothesis — The enterprise fails only after the second or 

 third year. In view of the government's constant superintendence and 

 the annulment clauses in the contract li would be difficult to reach a worse 

 result than that indicated under a). 



c) yd hypothesis. — The experiment succeeds so that the holding be- 

 comes the proi:)erty of the colonist or whoever takes his place. This case 

 should be considered in two aspects : 



I. The favourable result is due to the special conditions created in the 

 colonist's favour, in that the government ma}' be said to have given him 



