138 AGRICULTURAL DEPRESSION 



But, on his own showing, if the estate with the build- 

 ings and improvements would now sell for only ;^5o,cxX), 

 the present gross rental would represent about 8 per 

 cent, on the present capital value of the whole land and 

 improvements. Even deducting ;^ 1200, or 33 per cent, 

 for repairs, etc., he is still netting 5^ per cent, on the 

 current value of his land and improvements. 



In this analysis, it has been wished to give the fullest 

 attention to the important evidence of very large outlays 

 having been made by many owners, without any charge 

 of interest during the period of depression. It will be 

 universally recognised that a broad and generous and 

 considerate policy, and a wise foresight, has been shown 

 by many wealthy landowners, in the free application to 

 the useful and necessary work of restoring or maintaining 

 agricultural land, of large sums from other investments 

 and accumulations. It is certain that, even now, 

 this immense outlay, made without imposing onerous 

 conditions on the tenants of these estates, is bringing 

 some small return to the owners in preventing the 

 further diminution of rents, which, without this outlay, 

 would speedily ensue. Most people also will agree with 

 Mr Rew, that it cannot be expected that landowners 

 should go on permanently expending income from other 

 sources on their agricultural estates without the induce- 

 ment of something like a commercial return, as many 

 have now practically been doing for several years. 



But it has seemed only right to expose the fallacies 

 lurking under some of the reasoning as to landlord's 

 improvements, and as to capital values of land and 

 buildings, the economic depreciation of which ought to 

 be frankly recognised, because it is obvious that 

 these fallacies have operated, and are likely to operate, 

 as incentives to unjust over-renting of tenants. And 

 it is certain in practice to be as injurious to the 

 chances of agriculture that the owners of land 

 should treat what they consider a fair interest on their 

 outlay as a sort of perpetual first charge like tithe, as it 

 would be ruinous to railway interests if dividends should 

 be taken first to suit the ideas of shareholders, and 



