LORD HARROWBY'S EVIDENCE 313 



farms the type most difficult to create because of 

 the outlay necessary on buildings he contends 

 that the higher rent received from the smaller men 

 profitably recoups the expense of creation when 

 these holdings are 10 acres or over. He takes the 

 following facts as a basis for this calculation : That 

 the cost of house and buildings for ten to twenty 

 acres is 400, including fences ; that the money is 

 borrowed from the Lands Improvement Company 

 at 5J per cent. (4 per cent, interest and Ij per 

 cent, for redemption in forty years) ; that the small 

 man can afford to pay l an acre more than that 

 paid by the larger farmer. He handed in the 

 following : 



* SCHEME BY WHICH LANDOWNERS CAN CREATE SMALL HOLDINGS 

 OVER. A CERTAIN ACREAGE AT NO LOSS TO THEMSELVES 

 BY BORROWING MONEY FROM THE LANDS IMPROVEMENT 

 COMPANY AT 5^ PER CENT. FOR FORTY YEARS. 



The Government lending money to the landowners at 

 4 per cent., including interest and redemption, in forty years 

 would enable them 



1. To reduce the rent to the small holder. 



2. To minimize the loss on the smaller acreages. 



Below are given a few actual cases on the Earl of Har- 

 rowby's estates : 



Case 1. Arable Holding, Five Acres. 



s. d. s. d. 



Rent from farmer at 30s 7 10 



Rent from small holder at 50s. ... 12 10 



Rent from small holder's cottage ... 600 18 10 



Difference in rent (gain) ... 11 



