TUE FALLACIES OF ECONOMTC SflEXCE 207 



Under Present System 



£ s. a. 



Cost of three adult jiaupers at £12 l.S.s. Od.* per annum . 37 19 



Annual loss to State 37 19 



N.B. — This is a mere statement of cost for food, clothing, light, 

 etc., and does not include capital outlay and interest tliereon of im- 

 mensely costly pauper establishments, hut it will serve the present 

 purpose. 



Advance of State Funds 



£. .1. (I. 



Capital value of four acres of land at £2o per acre . . 100 U 

 Advance for tillage, implements, seeds, etc., £25 per acre 100 



Total advance . . . ^£200 



Expenditure — Cost to the State 



£ s. d. 



Interest at 2| per cent, on capital value of land, £100 . 2 15 



„ „ „ advance for tillage, etc., £100 2 15 



Total cost to the State . ^5 10 



lievemte 



£ .?. <i. 



Interest at 3 per cent, on capital value of land, £100 ..300 



„ ,, ,, advance for tillage, etc., £100 .300 



£6 



Annual profit to the State 10 



The loan might gradually be paid off by a sinking fund of 

 two per cent, on the total amount advanced, -which would 

 necessitate an annual payment of £4 by the occupying owner. 



Here we have a condition of things whereby the State 

 becomes a gainer of 10s. per annum instead of a loser of 

 £37 19.s\ in its transactions with this single indigent family ; 

 but assuming that Government has to pay three per cent, 

 for its loans instead of two and three-quarters per cent., such a 

 transaction could still be carried out without the necessity of the 

 country losing a penny over it. 



Paupers become Prosperous Citizens 



Viewed from another standpoint this case assumes an alto- 

 gether different and more important aspect. The indigent 

 family of three has been saved from pauperism, and instead of 

 being a permanent burden on the State exchequer it has 

 become a prosperous unit of the community, producing some- 

 thing as well as consumhig much. 



* Poor Law Report, February 17, 1909. Figures for 1903-1904. 



