36 THE LAND AND ITS PROBLEMS 



encroaching upon his working capital. Under this 

 system the farmer sinks Httle or no capital in the purchase 

 of land, and long experience has shown that annual 

 payments do not work out at a higher figure than the 

 farm can stand economically ; so this argument against 

 purchase falls to the ground. Again, it is pointed out 

 that the small owners (and large owners also) often are 

 weighed down by mortgages and finally have to quit — 

 but that is not an argument against ownership, it is an 

 argument against mortgages ! The permanent mortgage 

 is the most unsound form in which an owner can borrow 

 money. That was clearly recognized one hundred years 

 ago by landowners on the Continent, and as a result 

 the system of loans with sinking fund was established. 



Under the mortgage system, if the value of the land 

 drops, the occupying owner finds himself in difficulties, 

 and often he cannot afford to keep his house and build- 

 ings in proper repair ; consequently the property soon 

 shows signs of neglect and the system of occupying 

 ownership gets a bad name. 



It is stated that : — 



" The farmers do not wish to buy their farms." 



Of course they do not, as long as they can find land- 

 owners sufficiently " accommodating " to let their 

 land at half its value and also do repairs that the farmers 

 ought to do themselves. This is uneconomic and there- 

 fore unsound business. And it is generally admitted 

 that low rents and low farming go together ; men are 

 tempted to take more land than they can manage, or 

 more than they have capital for. It is conducive to 

 extensive rather than intensive farming. It may be said 

 that the remedy would be to raise the rents rather than 

 to alter the system ; but this is easier said than done. 



