THE INDUSTRIAL FARM 



47 



Such a staff would be ample for an estate of 5,000 to 

 8,000 acres. Assuming, then, that the gross earnings 

 per man amounted to £100 per annum, as in the 

 examples quoted, and that interest on the price of the 

 land is treated as rent and included in the outgoings 

 before the gross earnings are calculated, the divisible 

 receipts will amount to £15,000, out of which interest 

 has to be provided on a floating capital of £40,000 at 

 £8 per acre. The profit and loss account therefore 

 becomes : 



Earnings of 150 men 



at £100 per annum £15,000 



£15,000 



Interest on capital 



at 5 per cent. . . £2,000 

 Interest on cottages 



at 6 per cent. . . £600 

 Wages . . . . £7,800 

 Management . . £3,000 



Balance .. . . £1,600 



£15.000 



The balance plus the interest makes up a total return 

 of 9 per cent, on the floating capital invested in the 

 business, which may be considered as a satisfactory 

 return considering that the labourers are being paid not 

 on the basis of existing rates of wage but what a reason- 

 ably prosperous and permanent industry ought to pay. 

 Were the enterprise treated as a profit-sharing scheme 

 the balance would be sufficient to pay a dividend of 

 12 per cent, on salaries, wages, and interest, making the 

 labourers' cash wages average 22s. 6d. per week and the 

 interest on the floating capital over 5^ per cent. On 

 the other hand, as the farm gets under way, it must be 



