The Rural Problem. 



INTRODUCTION. 



Theee are two aspects to what is broadly described as the rural 

 problem ; one a problem of the organisation of the production 

 and distribution of agricviltural produce ; the other a problem of 

 the just distribution of the profits arising from production, and a 

 wise use of the wealth enjoyed as a result of occupation and of the 

 leisure from economic obligations. In other words, there are 

 both industrial and social problems in village life awaiting solutions, 

 some of which are overdue. The failure to distinguish these two 

 aspects has led to much misunderstanding and to greater rancour 

 than was necessary in the discussion of methods of improving 

 village life. Agriculturists, or national economists of a certain 

 type, often lay much stress on the need for increasing production, 

 either for the purpose of obtaining greater profit, or for the pro- 

 vision of greater national security by securing heavier supplies of 

 home-gro\\ai food. The social economist, or reformer, is often 

 preoccupied by such questions as rates of wages, housing con- 

 ditions, and the dejDopulation of the countryside, without any 

 clear understanding of the economic foundations from which these 

 conditions spring. 



Previous to the outbreak of war, interest in rural problems 

 had centred in those questions which were predominantly social, 

 but during the last two years these have taken second place, and 

 questions concerning the organisation of production, to which 

 little attention had previousl}^ been paid, have become prominent. 

 In the future it should be possible to obtain a more balanced and 

 comprehensive consideration of the whole of the conditions of the 

 villages, industrial and social, and to arrive at some common 

 agreement as to the general Unes of policy that should be followed 

 in an attempt to improve them. The solution of the problem of 

 industrial organisation may have to be left mainly to agriculturists 

 and their economic advisers ; but in the event of their failure to 

 recognise the necessity for changes, the State must take steps to 

 secure the best use of the economic resources now under control of 

 farmers and landowaiers. Without changes in the industrial basis 

 of \dllage life, there cannot be much hope of permanent and pro- 

 gressive improvement in social and intellectual conditions. 



B 



