FINANCIAL ASPECTS 213 



per cent, on the capital sunk, as against 17 per cent, for 

 arable land. That is, of course, under past prices, but 

 obviously if prices for meat, milk, corn, and labour all go 

 up proportionately, it does not alter the relative position 

 of the two systems of farming. It is not so much the absolute 

 price of wheat that is so important, as the ratio of the price 

 of wheat to the price of meat that will determine the relative 

 proportions of arable to grass land, and that is why the rise 

 in price has produced so little effect. Once the State begins 

 to interfere in the question of prices, it is almost driven into 

 considering what kind of partial ownership of the land will 

 have to be adopted by the State. By means of the Excess 

 Profits Tax it is obvious that the State can assume a large 

 share in any industry. At present the State is taxing excess 

 profits at the rate of 80 per cent., that is to say, the State 

 occupies the same position towards the industries of the 

 country as the holders of founders' shares in an ordinary 

 industrial concern do. There are many concerns where there 

 are a small number of such founders, who in bad times 

 receive no dividends but in good times obtain a quite 

 disproportionate share of the profits. Under a type of 

 taxation such as we have at present, the State is undoubtedly 

 part owner of all the industries that are under excess profits 

 taxation. If the Government were to put all concerns which 

 deal in human food on the same basis, the State would 

 become a partner in the whole of these businesses, including 

 land, and this is a point which has to be carefully considered. 

 The present position of affairs in the British Isles is not 

 altogether dissimilar to the state of affairs in India, when the 

 chaos and disorganization, resulting from the complete break- 

 up of central authority, induced the British East India 

 Company, and later the Crown, to adopt the attitude that 

 the land belonged to the State, and that the State must 

 assess what rent should be paid. When prices rise, and the 

 supply of labour fails, and both are partly controlled by 

 the State, then the difference between State ownership and 

 such a condition of affairs is not, after all, a big one, 

 and it would be wise to consider the attitude of the State 



