RENTS FIXED BY VALUATION II 7 



rent in the last two years have occurred, but the changes 

 of tenancy are extremely few, the old tenants remain- 

 ing on. 



The principle that a real valuation should be the basis 

 of rent occurs again and again in the evidence. 



Thus Sir Michael Hicks Beach had his estates re- 

 valued in 1855, on the basis of the prices of the chief com- 

 modities produced on his farms at that time. His farms, 

 with one or two exceptions of changes of tenancy, re- 

 mained at that valuation all through the times of inflated 

 prices, and were then very heavily reduced, immedi- 

 ately after the losses of 1879. And now Sir Michael 

 says : " My rents are infinitely below the point at which 

 they were fixed by the valuation of 1855, and have been 

 reduced in much greater proportion than the percentage 

 of fall of prices. In making reductions, landlords have 

 to consider a great many other questions besides the 

 question of prices." ^ 



Mr Gilbert Murray, in his interesting evidence, pro- 

 poses as a solution which, in his opinion, would settle 

 the land question for fifty years, a general revaluation of 

 all holdings based on products and prices.^ The gross 

 returns of a farm are obtained by taking the average of 

 each kind of produce, having regard to the rotation of 

 crops observed, cereals with their straw, beef and mutton, 

 wool and milk, the quantities being then put into their 

 money equivalents, in the current market prices. From 

 the gross returns so determined you are to deduct 

 the whole cost of production, including labour, horse 

 labour, seeds, insurance, depreciation on implements and 

 machinery, and 5 per cent, interest on an average of ;^8 

 per acre capital as tenant's remuneration. The balance 

 left is to go to pay rent, tithe, rates, and taxes."^ It will 

 be at once noted that Mr Murray's estimate for tenant's 

 outgoings is obviously lower than in most of the farm 

 accounts given in the evidence and reports. Mr Murray's 

 proposal is that this valuation being settled, rents are to 

 fall or rise by a sliding scale based on prices. 



The principle of valuation suggested is clearly sound, 

 • 6127-33. ^ 5141, etc. 3 Vol. I., App. A., XVIII. 



