THE AGRARIAN REFORM OF 1903. 107 



One m . the productive power 



of t a, one must estimate the value 



produi ite of the ma 



into consideration, and from this one m 



cost of p on. T: 



J, according to a formula which has yet 

 to be asc< profit of the tenant 



and the rent of the landloi 



In In land this method is frequently very 1 

 to apply. Of 486,865 holdings (1892) there were 

 only 127,098 over 4 valuation. 1 Most of these 

 ie holdings are not to be regarded as agricul- 

 tural. If the occupier pays no taxes and takes 



account of his labour the holding does not 

 produce enough to support him. There is there- 

 fore no surplus to divide the rent which is paid 

 comes from some subsidiary industry. But does 



mean that the land produces no surplus 

 over the cost of production ? Let us take the 

 case of a farm rented at 50. The farmer can 



comfortably on this and have another ^50 

 as profit. Now let this farm be divided into 

 ten, each of which pays 5 a year rent, the rents 

 amounting in all to 50 as before. The ten 

 tenants cannot live decently on these holdings, 

 not to speak of making a profit. There is no 

 plus. They pay the rent which their mutual 

 competition probably sets higher than that of 

 the single 50 holding out o? other industries. 

 It is the price which they are ready to pay for 



1 Fry Commission p. 19. 



