198 RURAL RECONSTRUCTION 



My second point, to which there can be no doubt whatever that 

 only insufficient consideration has been devoted in this country, except 

 by Lord Ernie in the Maulden experiment, appears at first blush to 

 concern only a very limited portion of the field on which we are now 

 operating — that is, our action in creating ownership holdings, which 

 is for the time still very narrowly restricted — owing to distrust in 

 its chances of success. But in truth it opens up a very wide question, 

 namely, that of the relative advantages severally of ownership and 

 of tenancy holdings. We began, in 1892, with an attempt to settle 

 our new yeomen on freehold holdings, to be obtained with the help 

 of Government credit. That experiment proved a miserable failure. 

 Since then we have been proceeding on altogether opposite lines, 

 looking to tenancy only, to which by long custom we have become 

 thoroughly accustomed, as the one practicable foundation on which 

 to build. Our settlers, so it is argued, as a matter of course will 

 begin in financial weakness, and accordingly will want to have every 

 opportunity given to them to husband what small possessions they 

 may command. For it is the working capital which most directly 

 influences production. The very cry for credit to be made available 

 for the use of these people proves that we are aware of their want of 

 every penny that they can lay hold on, and seems to justify our 

 common contention that no tax whatever ought to be laid upon 

 settlers in respect of property in the land that they are to cultivate. 

 Hence under this aspect the preference commonly given to tenancy, 

 which thus far has been regarded as the only solution of the problem 

 to place our man upon his land with all available capital at his 

 command, free for employment as working capital. The assump- 

 tion of general impecuniosity at the start may indeed appear a 

 little discredited by the discovery made by Small Holdings Commis- 

 sioners on their entry upon their functions thirteen years ago, just 

 after the passing of the Act under which they were appointed, that 

 to their blank astonishment a large quantity of money — all ready 

 in golden sovereigns carefully bagged — was produced by applicants, 

 to prove their qualification, whom no one would have suspected of 

 the possession of so much wealth. Such display of wealth is, 

 however, not likely to have been general or continued. And when 

 we come to the host of ex-soldiers who are now to be enlisted in 

 the service of Ceres, the stream of yellow metal is pretty sure to 

 run dry. We shall have to lay our account with having to do 

 with impecunious persons in plenty ; and, for such, tenant holdings 

 are, as observed, considered the only useful shape in which the gift 

 of access to the land to be cultivated by themselves can be tendered. 



